Market Segments

Understanding the characteristics of the target market is a crucial step in developing the branding and marketing plan. This basically involves segmenting consumers. Consumers can be segmented based on their demographic, geographic, behavioral, and psychographic characteristics (Lamb, Hair & McDaniel, 2009). For the automobile industry, consumers can be segmented as follows.

Demographic characteristics
Individuals, male and female, families, middle- to high income, businesses, and professionals

Geographic characteristics

Behavioral characteristics

First-time buyers, repeat buyers, seeking functional benefits, with family needs, seeking social status benefits, seeking quality cars, seeking off-road capabilities.

Psychographic characteristics

Enthusiastic about cars

As per the table above, the target market is broad. It encompasses middle- to high-income individuals and families as well as professionals and business in the US seeking to buy a car for mobility, status, and/or off-road usage. With an understanding of the market segments, the marketing mix and other elements of the marketing plan can be developed more effectively.
 

Product, Place/Distribution, Promotion, and Price Strategies

Product, place, promotion, and price strategies comprise the marketing mix (Mullins & Walker, 2013). The product element of the marketing mix defines the characteristics of the product or service to be offered. As the target market reflects broad consumer preferences, the products must also have a similar... The products range from sedans and station wagons to sports utility vehicles (SUVs), vans, trucks, as well as luxury vehicles. The vehicles offer a wide range of characteristics, functionalities and capabilities, including a variety of colors and designs, superior engine performance, fuel efficiency, off-road capabilities, speed, safety and reliability, an unmatched driving experience, and attractive warranty conditions. The other element of the marketing mix is price. As the target market is broad, it is prudent to use various pricing strategies. For instance, luxury consumers comprise one of the target segments. For this segment, premium pricing would be appropriate. For non-luxury consumers, for example consumers who just need a car for mobility, strategies such as market-oriented and value-based pricing can be used.
After determining what product is to be offered to the target market and at what price, the next step is to define where customers can get the product (Mullins & Walker, 2013). In the automobile industry, dealerships are the most common way of distributing products to consumers. Working with established automotive dealers can be useful in this case. Showrooms can also be used. In addition to dealerships and showrooms, online distribution can be used. With the increased popularity of online commerce, the automotive industry has not been left behind. Today, cars can be purchased online and delivered to the customer's location. This channel will be exploited to increase distribution. The final element of the marketing mix is promotion, which involves reaching out to the target market.…