Identify and describe 3 or more distinct market segments within a specific industry, such as aerospace or automobile manufacturing. What differences are apparent? Why would this matter to a marketer?
Market segmentation is carried out by marketers and salesmen to be able to allow for strategic planning on how to approach the target market (Keillor, 2007). In the automobile industry there are many market segments. Three examples of market segments include luxury cars; specialty-sports cars; and executive cars. With these examples the marketer is targeting a different niche in the market. Luxury cars will be targeted at the very rich in society while specialty-sports cars are targeted at the sportsman engaging in activities like motor racing. The executive cars are aimed at the working class person who is striving to succeed in business or scaling up the corporate ladder. The marketer will therefore have to consider these differences when marketing to these segments (TNS, 2011). The marketing strategy or approach will have to be suited to appeal to rich when marketing the luxury brand; the sports car must be marketed to present value to the sportsman; and the executive car must be marketed to appeal to the career person.
Identify and describe key identifying characteristics of the Baby Boom Generation, Generation X, and Generation Y. How do these help marketers? Provide examples and your assessment.
Baby boomers were born after World War II, between 1946 and 1964. Baby boomers are considered hardworking and are defined by their professional achievements. They are very competitive at work as they equate career success to self- worth (McCrindle, 2011). Generation Xers are born between 1965 and 1980 and are better educated than baby boomers. They are very individualistic and independent and technologically adept. They are also more flexible and exhibit more willingness to adapt to changes. Generation Y is composed of people born after the 1980s. They are very technologically-savvy and are high achievers. They also believe in flexibility and are much more family-oriented.
These differences are important to marketers because it influences how the marketer will present a product to the customer (Schmitt, 1999). The marketer will have to craft his marketing strategy in such a way as to present it favorably to each generation considering their characteristics. For example, when marketing an iPad, showing off the gadget’s magnificent applications will appeal to Generation Y and Y but not impact Baby Boomers much. To impress baby boomers, it may be necessary for the marketer to demonstrate how this gadget would help them achieve their career targets. It is certainly important to consider characteristics of these generations so as to come up with strategies which will actually appeal to them (McCrindle, 2011).
Keillor B. (2007). Marketing in the 21st century: An Integrated marketing Communication. Cincinnati: Prager Publishers.
McCrindle M. (2011) Seriously Cool-Marketing and Communicating with Diverse Generations. Available at www.mccrindle.com.au
Schmitt B. (1999). Experiential Marketing. New York: The Free Press.
TNS, (2011). Automotive Industry. Available at http://www.tnsglobal.com/market-research/automotive-market-research/