Strategic Online Marketing Research and Analysis: Holden Commodore

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This report analyzes the online marketing strategies for the Holden Commodore, focusing on market research and customer targeting. It examines the importance of adapting to the changing automotive market and leveraging online platforms for customer service and sales. The report explores alternative target markets, including the upper and middle-income Australians, government agencies, and potential overseas markets. It also addresses the need to consider the lower-income segment and offers suggestions for making Commodore accessible to a broader audience. The report delves into defining the 'population' for research, considering factors like economic status, age, and demographics, and the importance of defining sampling frames based on age, economic status, and social status. It also discusses various sampling approaches, such as simple random, systematic, and stratified sampling, recommending stratified sampling for its representativeness. The report concludes by emphasizing the importance of understanding the target market and using appropriate sampling methods to gather relevant data for effective marketing strategies.
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HOLDEN COMMODORE ONLINE MARKETING RESEARCH 1
HOLDEN COMMODORE ONLINE MARKETING RESEARCH
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Introduction
Today, the automotive market has undergone revolutionary changes which require the
players to be adaptive accordingly. Businesses are using different strategies to keep up with the
pace of these market dynamics. For many business organizations, this has not been easy, but an
uphill task but must be determined to remain in the market and be competitive. They are required
to keep up to date with the market trends while satisfying the needs of the clients (Nilsson,
2013). The contemporary marketing is holistic, customer oriented by using adaptive
methodologies in creating connections between the brand and the customer and creating business
success by mixing analysis, technology, blending technology and creativity and innovation
(Malhotra, Nunan and Birks, 2017).
On the other side, customers have raised their expectations higher. They expect nothing
short of quality products and services based on their market and brand experiences. This has
prompted organizations to be not only creative with the products and services they offer but also
be able to apply suitable marketing strategies to attract and keep their target customers.
Customers also expect convenience from the product or service offering. Therefore, companies
must look for creative ways to keep their customers satisfied. Therefore, modern business
organizations have gone online in terms of marketing and customer services.
For the case of Holden Commodore, the online market is the best strategy to ensure that
customer service is adaptive to the market needs. The company’s choice of creating online stores
is to build the client base, convenience, and response to adaptive selling methods. After the
launch of Holden Commodore online store, customers will be able to make their choices and by
the click on their phones complete the sales process and wait for delivery. The following are the
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HOLDEN COMMODORE ONLINE MARKETING RESEARCH 3
alternatives to the target market, target population, sampling frame and sampling approaches
which Holden Commodore can apply to make the market penetration a success.
Target Market Alternatives
This is the second return of Commodore in the market. In deciding re-inventing
Commodore, Holden had to first learn from the previous faults made in the Commodore market.
Holden target markets are the upper and middle-income people in Australia (West, 2015).
However, the company needs not to depend on a particular market of the product solely, but they
need to diversify to lower the risks of unforeseen market failures. Alternative markets are
precautionary measures to market failures of the products.
Besides upper and lower-class customers, the company also needs to focus on the lower
end market which constitutes the majority of the Australian population. The lower class cannot
afford any of the current models of Commodore. This is Mainly because the company targets the
upper-class and middle-class by making car models which are only affordable to them and the
terms which can only fit their status. This marginalizes the lower class. The company needs to be
innovative to be capable of also serving the lower class.
Holden needs to also to target government corporations and agencies to offering transport
services. Australian government engages in public-private partnership in some of the service
deliveries. The company should also target on creating models which the government of
Australia can use for its civil servants and provision of public services. By targeting this market
niche, Holden will have an alternative market for Commodore.
Furthermore, Holden has the option to broaden its target market to include overseas
markets. Currently, the company mainly target Australian market using the online store sales
platform. The company should look for ways in which to go global through online stores, sales,
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HOLDEN COMMODORE ONLINE MARKETING RESEARCH 4
and delivery of Commodore brands. Conducting global marketing research will measure the
product’s global market potential and ways the company can explore it.
Also, the company can produce premium Commodores for the high-end customers who
are more disposal income. Premium car market is gaining popularity in the modern world where
people want attention and prestige in the society. Holden can choose to target this market as an
alternative to its current target market.
Although there are various target market alternatives, I will recommend that Holden
Commodore to also target low class citizens of Australia who are the majority population. The
company should come up with methods of enabling these groups to afford their car.
The Alternative Ways of Defining the ‘Population’ for a Research Study
Holden needs to know the target population in the market so as to come up with
appropriate marketing strategies. The term ‘population’ refers to the group of people that the
company identifies as the prospective recipient of their product/service, advertisement, and
campaign.
Holden may define its target market population in terms of their economic status which is
their buying ability. The target population may also take the form of the ages. Holden target the
customers between the ages of 24 to 45 years and are at upper and middle-class economic status.
These age brackets are tech savvies and are looking for comfort and convenience, therefore
offering online buying platform fulfill their expectations.
Still, the population can be defined in terms of demographic characteristics. Demography
takes the forms of ages, social class, cultures, geographical location, fashion changes, sex and
number of prospective customers. Population demography is a complex mix of customer’s
expectations and needs. Therefore, the company needs to define the target population
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HOLDEN COMMODORE ONLINE MARKETING RESEARCH 5
characteristics to be able to respond appropriately to their needs. Holden should define its target
market in term of demographic features and choose which segment of the whole population to
serve. Targeting in a population aid in ensuring the needs of the customers are adequately
addressed.
The Alternative Ways of Defining the ‘Sampling Frame’
The sampling frame of Holden Commodore will be the sources from which sampling
units are chosen in the marketing research. It is the basis on which sampling is easily done by
choosing the characteristics of the population a company is interested. A good sample frame will
include all the individuals in the samples population, exclude all the individuals, not in the target
population, and include all the relevant and accurate information that can be used to contact the
selected individuals. The sample frame must be representative of the population. The following
are the sampling frames that Holden can use to do the market study of Commodore.
i. Age – this frame is used to sample customers within a certain age group to measure their
response to the product. Holden can use this frame to know which age bracket love their
brand cars and are how they prefer to buy it. To achieve this population, need to be
divided into a group of ages, for instance, 24-30 years, 31-45 years and those above 45
years.
ii. The population can also be framed into economic status of the population. Holden
prospective customers have different financial capacities. Therefore, to get this segment
reactions and expectations from Commodore, they must be grouped for equal samples to
be taken.
iii. The population can also be grouped to social status. The attributes of customers’ status
are defined in terms of the education levels, social status, responsibilities held, and
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HOLDEN COMMODORE ONLINE MARKETING RESEARCH 6
leadership positions. Customers’ behaviors through these economic statuses are distinct
and required different approaches in fulfilling their expectations.
iv. The company can also use survey sampling frame (Mäkelä & Huhtanen, 2010).
The most appropriate sampling frame for Commodore is the economic status of the
prospective customers. Using this sample frame, the company will be able to respond to the
customers buying power by providing appropriate and flexible terms and products.
The Alternative Ways of Defining the Sampling Approach
According to Emmel (2013), Sampling is taking a representative of the whole population.
To do sampling certain sampling approaches are used depending on the characteristics of the
population and the type of data required from the respondents. A good sampling is influenced by
three factors: sample procedure, sample size, and participation.
The commonly used methods of sampling include:
i. Simple random sampling – this method gives the whole population equal chances
of selection. It is a completely random selection from the population.
ii. Systematic sampling – the population is ordered in a logical sequence and
selection is made at regular intervals.
iii. Stratified sampling – this method involves dividing the population into groups
and randomly selecting from within each group.
iv. Matched random sampling - in this method the whole population is divided into
pairs using a certain criterion and then randomly assigned to groups.
To sample Commodore market stratified sampling is the most appropriate because the samples
are highly representatives of the population and therefore can generalize from the results
obtained.
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HOLDEN COMMODORE ONLINE MARKETING RESEARCH 7
References
Emmel, N. (2013) Sampling and choosing cases in qualitative research. Los Angeles [etc.]:
Sage.
Mäkelä, P., & Huhtanen, P. (2010) The effect of survey sampling frame on coverage: the level of
and changes in alcohol-related mortality in Finland as a test case. Addiction, 105(11), 1935-1941.
doi: 10.1111/j.1360-0443.2010.03069.x
Malhotra, N., Nunan, D. and Birks, D. (2017) Marketing research. 5th ed. Wiley publishers
McLeod, S. A. (2014). Sampling methods. Retrieved from
www.simplypsychology.org/sampling.html
Nilsson, J. (2013) Studying consumers?: Recent social science interest in market research.
Linköpings universitet. [online] Linköping: Linköping University Electronic Press, pp.1-30.
Available at: http://liu.diva-portal.org/smash/get/diva2:697376/FULLTEXT01.pdf [Accessed
19th May 2018].
West, M. (2015) Sue Bryce on Targeting Your Marketing to a Specific Audience. [online]
Animoto Blog. Available at: https://animoto.com/blog/photography/sue-bryce-targeting-video-
marketing/ [Accessed 19th May 2018].
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