(Institutional Affiliation) Essay Example

  • Category:
    Marketing
  • Document type:
    Assignment
  • Level:
    Undergraduate
  • Page:
    2
  • Words:
    907

Target market

Target market

Market Objectives

There are several objectives that are important to any company. The main objective however to most companies is maintaining the profitability. This means that the manager should ensure that the revenues that the company makes are more than the costs of running the company. The other company objectives include increasing the productivity. The company can achieve this through conducting employee training and also by investing in new technologies that will increase productivity. Customer service is also an important issue to the company. The main objective of Holden is profit maximization. Despite the relative low prices of its competitors Holden still maintain its prices. Its prices are $27,990 and $33,990 for Captiva 5 and Captiva 7 respectively despite Ford selling its SUV at $27,000 and Toyota Prado selling at $24,330. Holden sales improved significantly in 2010 it sold 132,923 units and in 244,136 which is an 11.2 percent increase.

Target market and Market segmenting

Target marketing can be defined as the act of selecting a specific group to sell to. Market segmentation is defined as the activity of dividing consumers into categories of potential buyers. Holden targets the Australian domestic market with its different SUV designs. The different designs target the different age groups and people with different lifestyles. In 1963 the company produced one of the best loved Holdens in the market, the Holden EH. It sold over 250,000 cars in 18 months. The Holden targeted the huge customer base that was interested in new styling designs. Its style incorporated a new roofline and made changes in its rear end. The car also had external a new external oil pump and a new piston that delivered 53 percent more power and improved the fuel economy. This was more attractive as there were high fuel prices at the time. Holden EH was the first station wagon and offered unbeatable prices that was considerable cheaper than the mid-50’s Holdens.

In 1978 Holden released the first Commodore VB that targeted the new customers that were keen on style. The car offered high levels of comfort, generous standardized equipment and excellent performance and handling capabilities. The commodore targeted the emerging middle class with its new level of sophistication in the market. This enabled it to earn its top status as the 1978 wheels car of the year award. Holden was able to build 95,906 commodores before its exit from the market. After the Commodore VB there were other several productions such as the commodore VC of 1980, the commodore VK of 1984, the commodore VL of 1986, up to the Commodore VZ of 2004. All these new commodores had significant changes in technology and performance but all of them emphasized on style which was the key factor considered by their customers.

Currently Holden produces the Captiva 5 and Captiva 7 range of SUV’s that are characterized by their great interior design, comfort and performance. The Holden SUV’s are aimed at targeting the vast majority of customers who are suburban families, recreational users and baby boomer retirees. Captiva 5 and 7 both have enough space that targets recreational users. The satin silver roof tops allow for the customers to place additional luggage at the top of the car in a well organized manner.

The suburban families also emphasize on safety. Holden has thus developed many safety measures so as to attract the suburban families. The captiva 5 and 7 both have the electronic stability control system that reduces engine power and applies break pressure whenever the vehicle skids. This allows the driver to take control of the car before it overturns. The Holdens also contain the hill assist feature that stops the car from rolling backwards from a slope by automatically applying breaks.

(Institutional Affiliation)(Institutional Affiliation) 1

Figure1.1: Holden spacious interior.

There are different ways through which a market can be segmented this are referred to as market bases. The market segmentation bases fall under four different buyer characteristics that include behavioral, geographical, psychographic and demographical characteristics.

Behavioral segmentation is used by companies to characterize people according to their behaviors and their need and perception of the product. Demographic segmentation is defined as grouping of consumers with respect to demographic characteristics such as age, gender, income, family relations, nationality, occupation, social class and even religion. (Peter 2005).

Geographical segmentation is the process of segmenting consumers according to their geographical location. Psychographic segmentation is the grouping of people in relation to their character traits and buying behaviors. Psychographic segmentations use factors such as the consumer’s activities, interests and preferences, attitudes and values, opinions and lifestyles. (Oskamp 2005).

Holden’s target market is demographically segmented into two distinctive categories that are based on age. The first age group is between 30 and 39. This group emphasizes more on the effect of the features of the car in changing improving their quality of life for example safety or space. They have high disposable incomes and thus they can be targeted for high price luxury cars. The other group is aged between 18 and 29 years old. This group is more interested in appearance and performance such as speed.

References

Loudon, D.L. and Bitta A.J. Della, (2002) Consumer Behavior, Fourth Edition, Tata

McGraw-Hill, New Delhi.

Peter, P.J. and Olson, J.C. (2005), Consumer Behavior and Marketing Strategy, Seventh

edition, McGraw-Hill Higher Education.

Schiffman, L.G. and Kanuk, L.L. (2004), Consumer Behavior, Eight Edition, Prentice

Hall, India.

Oskamp, S. & Schultz, W, (2005). Attitudes and opinions, Lawrence Erlbaum Associates