Auto Concepts Recall from Case 1.2 that Auto Concepts is a new division 2. "Runabout Sport," Two-Seat All Electric, 250 miles per of a large automobile manufacturer that has been slowly charge, estimated MSRP $28,000$34,000; Fuel 2CO2 losing market share to its competitors. Auto Concepts was rating: 10; Smog rating: 10. created to reclaim the manufacturer's highly competitive 3. "Runabout with Stowage," Two-Seat Plug-in Hybrid position in the auto industry by developing new models that (electric and gasoline), 150 miles per charge, are more competitive in today's new car market. 100 miles per fill-up, estimated MSRP $30,000 Auto Concepts now has five different models that are $36,000, Fuel/CO, rating: 9; Smog rating: 7. feasible in terms of engineering and production. The CEO, 4. "Economy Hybrid," Four- or Six-Seat (stowage Nick Thomas, has assigned tentative model names to them. converts to 2 seats) Hybrid (electric \& gasoline), Here are their various features including number of seats, 100 miles per charge, 200 miles per fill-up; estimated mileage, MSRP (manufacturer's suggested retail price), MSRP $36,000$45,000, Fuel/CO, rating: 6; Smog fuel /CO2 and smog rating (1= worst, 10= best ). rating: 5 . 1. "Super Cycle," One-Seat All Electric, 350 miles per 5. "Economy Gasoline," Five-Seat Economy Gasoline, charge, estimated MSRP: \$18,000-\$22,000; range mpg50; estimated MSRP $38,000$42,000, Fuel/CO 2 200 miles; Fuel/CO rating: 10; Smog rating: 10. rating: 5; Smog rating: 3 . ENDNOTES 59 Nick knows that no single model will have universal demographics they reach, Auto Concepts should have a appeal to a huge market. Rather, different models will appeal demographic profile of each market segment it attempts to market segments, and Auto Concepts will be sharing those to target. To make the most of that information, the carsegments with other able competitors that are working just maker needs information on the demographics of those who as hard to develop car models that satisfy consumer needs most desire each model: gender, age, size of hometown or in those segments. In other words, Auto Concepts wants to city, marital status, number of people in family, education, reach target markets for the models it produces without wast- income, and dwelling type. ing promotional dollars on those who aren't interested in a Auto Concepts is making a major effort to reduce cargiven model. For example, if the company decides to pro- bon emissions by moving to electric propulsion systems duce a model, a decision must be made in terms of choosing of various types; should that effort be a prominent part of among media types (TV, radio, magazines, newspaper, social its positioning statement in promotions? Nick gets a lot of media) in which to promote the product. Nick would like to mixed information in the general information environment know each market segment's media habits. Which TV show about global warming. He wants to know what consumers types do most people in each market prefer? Radio genres? think about two issues: (1) Are they taking personal responMagazine types? Sections of local newspapers? Also, the sibility for fuel economy? (2) Are they worried about global marketing department has begun spending large sums of the warming? budget on online promotions. Nick wants to know which Finally, there is the Internet of Things factor: what conmarket segments he can reach through blogs, content com- nections do consumers expect and desire on the autos of the munities such as YouTube, social network sites such as future? Do they wish for self- or assisted-driving features, Facebook, and online games and virtual worlds. info-tainment (and if so, of what types?), dashboard diagKnowing that consumers like a medium is not enough. nostic features, or smartphone driving aids? For example, Nick may learn that the target market for a Assume that Nick Thomas decides to conduct marketmodel prefers one type of magazine over another, but there ing research and that the marketing researcher agrees with are many choices of magazines within that type. Knowledge the problems stated in this case. of the demographic profiles of the target market segments can be helpful in selecting one newspaper, one magazine, or one social medium for a selected market. Because all 1. State the problems. media provide information to potential advertisers on the 2. Write the research objective for one of your problems defined in your answer to the first