Recall back in Case 1.2 that Nick Thomas has been made Motors waees without wast
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Recall back in Case 1.2 that Nick Thomas has been made Motors waees without wasting promotional dollars CEO of Global Motors, a new division of a large automo els i to reach target markets e manufacturer, ZEN Motors. ZEN is a multinational those who aren't interested in the model. For example, if manufacturer headquartered in the United States and has the company decides to produce a particular model, a de- s representing several auto and truck cision must be made in terms of choosing among media s divisions have been slowly losing market types (TV, radio, magazines, newspaper, social media) in competitors. Global Motors was created to which to promote the product. Nick would like to know bring ZEN Motors back to a highly competitive level in each market segment's media habits. Which TV show types the auto industry by developing new models that are more do most people in each market prefer? Radio genres? Mag- azine types? Sections of local newspapers? Also, Global's marketing department has moved to spending large sums of the budget on online promotions. Nick wants to know which market segments he can reach through blogs, con- tent communities such as YouTube, social network sites Global Motors now has five different models that are feasible in terms of engineering and production: 1. One-Seat All Electric, mpg-e rating 135 ISRP (manufacturer's suggested retail price) $28,000; such as Facebook, and online games and virtual worlds Knowing that consumers like a particular medium is not enough. For example, Nick may learm that the target market for a particular model prefers one magazine type over another but there are many choices of magazines within that type. for 30 miles and then switches to gas engine; estimatedKnowledge of the demographic profiles of the target mar- t All Electris, mpg-e 99; estimated MSRP 3. Four-Seat Gasoline Hybrid, mpg- e 50; runs on battery ket segments can be helpful in selecting one newspaper, one magazine, or one d alership for a selected market. Because all e-Seat Diesel Hybrid, mpg-e 75; runs on battery for 50 miles and then switches to efficient diesel engine;edia provide information to hographics thky reach, Global should have a demographic profile of each market segment it attempts to target. To make the most of that information, the carmaker needs information mpg 26, model is similar to MSRP $22,000. average distance trav elled per unit of energy used. It is the U.S. Environ- mental Protection Agency's measure of efficiency when altermative fuels (eg, electricity and gasoline) are used. of people in family, education, income, and dwelling type. on the demographics of those who most desire each model: gender, age, size of hometown or city, marital status, number In terms of positioning the cars, Nick Thomas knows fuel with the fuel efficiency in traditional internal combus- economy will be the key motivator. In addition, he wants to know if appealing to consumers' concerns for global warming will have an impact on sales. Global Motors is making a major How will potential auto purchasers in the United States effort to reduce carbon emissions by moving to more efficient react to these models? Nick needs to know if the level of propulsion systems; should that effort be a prominent part desirability for these models differs dramatically. Should of its positioning statement in promotions? If so, for which Global Motors produce one, two, or more of the models? Nick knows no single model will have universal ap peal to a huge market. Rather, different models will appeal models? Nick gets a lot of mixed information in the general information environment about global warming. He wants to know wh at consumers think about two issues: (1) Are the to market segments, and Global Motors will be sharing consumers worried about global warming? (2) Do they be- those segments with other able competitors that are work- lieve gasoline emissions contribute to global warming? ing just as hard to develop car models that satisfy consumer Assume that Nick Thomas decides to conduct market ing research and that the marketing researcher agrees with s means Global wil I not have a model that sells a huge volume, and smaller volume means the carmaker must be efficient in marketing its model(s) to keep operating expenses low and thus turn a profit. One of the problems stated in this case 1. State the problems. efective ways of keeping marketing costs down is 2 Write the research objective for one of your problems de- to reach target markets efficiently. In other words, Global in your answer to the first questionExplanation / Answer
1. Problems -
(a) Are the consumers aware that the vehicular fuel emission is one of the contributors to the global warming.
(b) Does a factor that the vehicle contributes less to the global warming and other issues of environmental deterioration affect the buying decisions of the consumers.
(c) Which lifestyle attributes, like preferred magazines, TV shows, newspapers etc.relate the most with the target maket for a model.
2. Research objective -
Statement - Contribution of eco friendliness and low emission levels of a vehicle in buying decision of the consumers in region X.
General objective - To study the influence of emission levels of a vehicle in buying decisions of consumers.
Specific objectives -
To assess the different factors affecting the vehicle buying decisions of a consumer in given market.
To assess the relative importance of eco friendliness among the factors.
To assess the relevance of eco friendliness among other factors.
To associate the virtue of eco friendliness with situational factors in the target market.
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