In$-$Class Activity $41$: Applying segmentation concepts

Learning Objective

This activity helps achieve the following learning objective from Essentials of Marketing:

LO $4\mathrm{.}1$: Define and describe generic markets and product$-$markets.

Assignment

Assume you have been asked to segment the following broad product market: Car for transportation in the USA. Think about the many product offerings in this market and the people who buy them. Then, answer the following questions.

$1.$ List potential customer needs. List all the needs you can think of that potential customers may have in this product market area. Be sure to focus on needs rather than product features. $($Note: don't limit the list just to needs that might apply to most people also include needs that may only apply to certain types of people. For example, some people may want a "prestige" image, and for others that may be totally irrelevant or even a big negative.$)$

$1$ safety

$2-$ convenience

$3-$ cost

$4$ performance

$5-$ style

$6-$ technology

$7-$ environmental impact

$8-$ prestige

$9-$ comforts

$10-$ durability

$2.$ Form "homogeneous submarkets$-$i$.$e$.,$ narrow product markets. Recognizing that some people have different needs than others, rough out at least two different submarkets based on the needs you have identified in step #$1$ above. Start by forming one submarket around some typical type of customer perhaps even yourself. $($You want to be able to aggregate similar people into this segment as long as they can be satisfied by the same marketing mix.$)$ For this submarket, write down the customer related characteristics $($including demographic dimensions$).$ Continue this process by identifying another distinct submarket $($that is$,$ one that would be composed of people who are not similar to the first submarket in terms of needs, characteristics, and the type of marketing mix they would want$).$

Submarket $1$

Needs $$ safety, cost, environmental impact, comfort, durability, size, convenience

Customer Characteristics$-$ young$/$middle age couples, family oriented, want something safe and long lasting, need it to be affordable,

Submarket $2$

Needs $$ Style, prestige, higher performance, higher end technology, speed

Customer Characteristics $$ older $/$ retirees or from a more financially well off stability. They want something on the higher end, something that will show off a little bit. They want something to keep up with their wants whether its technology or the speed or style.

$3.$ Once you are satisfied that you have identified two distinct submarkets, name $($nickname$)$ the product markets involved. You will probably want to select names by thinking about which of the determining dimensions you have identified as most important for each submarket perhaps aided by your descriptions of customer characteristics. Now, for the sub$-$markets that you identified in Question above, identify the type of products that would appeal to each sub$-$market

Note: The needs, and customer characteristics do not change from steps above.

Sub$-$market $1$

Name $\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_$

Needs $\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_$

Customer Characteristics $\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_$

Products $\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_$

Sub$-$market $2$

Name $\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_$

Needs $\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_$

Customer Characteristics $\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_$

Products $\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_$