Segmentation and Target Market Essay

1566 Words Feb 10th, 2015 7 Pages
Segmentation and Target Market: Elio Motors
Tina M Miller
MKT 571
August 18, 2014
Jason Leonard
Segmentation and Target Market: Elio Motors
Introduction
Paul Elio is the engineer and company CEO of an American startup automaker founded in 2008: Elio Motors. Production is slated to begin in early 2015 in Shreveport, Louisiana. The design of the vehicle has three wheels with all the standard convinces of a four wheeled vehicle. The selling points of this vehicle is that 90% of the parts used to produce the vehicle are American made, 84 mpg, and a projected manufacture suggested retail price of only $6,800. This paper will discuss the target market, market segmentation, and company strategy and branding.
Market Segmentation The
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Mr. Elio understood the attitude of the market and addressed it aligning the concerns with the prevailing attitudes. Demographic segmentation accurately defines who the consumer is based on age, gender, income, education, occupation, cultural mix, and marital status and household formation. Organizations should be aware of trends in each area and be able to target the area that offers the best potential for financial return. Mr. Elio noticed a trend that involved higher gas prices and consumers looking for alternative modes of cheaper transportation. His answer was the Elio. Psychographic segmentation is the examination of individuals by lifestyles according to activities, interests, and opinion. Demographically identified people are different and brands are associated with desirable lifestyles. Geographic segmentation refers to the division of a geographically expansive market into smaller units. Think of this in terms of a global market but target locally. Identification and market segment selection is a process. Conduct research that identifies group dos people who offer the strongest financial return. Then propose the product to the target market and finally implement market strategies to encourage initial and repeat purchases. Market segmentation is important because knowing consumers intimately is the key to developing successful strategies

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