Jason Atkinson, Nicole Barker, Garrett Buckley, Domeas Demarest, Kathleen Farris
March 13, 2014
Marketing Plan Phase 2
There are a large number of segmentation criteria that can be used to determine the target market for the new lower priced Tesla car. The geographic, demographic, psychographic, and behavioral categories each offer several criteria options to consider (Armstrong, Kotler, 2008 p.176). Of the criteria in the geographic category the most applicable criteria are population density and city population size. Since Tesla opens their own dealerships to sell vehicles to customers it is necessary that a location has a population large enough to produce a volume of sales that will allow a profit to be made. The area should also have a population density that is conducive to the use of an electric vehicle. Ideally, the average daily driving distance of customers near a new location is significantly lower than the maximum range of the vehicle, so that they do not have to be concerned with charging the vehicle away from their home. The demographic category provides some of the most important segmentation criteria for the target market. The income, age, and family size are the most critical of these criteria. The income criteria is probably the most important of all, as customers below a certain threshold will be unable to afford the price of the new vehicle, and customers that are too high might not be interested in a lower priced vehicle. Age is also important, especially as it is related to income, but also because advertising for the vehicle needs to be targeted at the age group that has the highest likelihood to purchase a new vehicle. The family size criteria will be for up to five, as the family will have to fit in the vehicle, and there isn't going to be much investment return on advertising to larger families. Psychographic criteria such as social class and personality can definitely be used in target market selection. Personality could be used when advertising the vehicle to try and associate it with certain personality traits, such as being adventurous or outgoing. Likewise, social class can be used in a similar fashion by advertising the vehicle as being luxurious even though it is a lower price. The behavioral category offers two criteria for the target market; attitude toward product, and benefits. The attitude toward product criteria is very important towards the sale of an electric vehicle, as customers have not had long term exposure to this type of vehicle. As customers gain exposure to the concept of the electric vehicle and see them in operation they will have a positive change in their attitude toward the Tesla product and will be easier to lead into a vehicle purchase. The customers who have set ideas about what they require in a new vehicle will be interested in a Tesla automobile when they are shown the many benefits that the vehicle and company offer to owners. Using a selection of these segmentation criteria will enable Tesla Motors to develop their ideal target market for both location selection and advertising purchases.
The types of consumers who are looking to purchase Tesla cars are those who are specific for what they like. They want a product that they know will be of high-end quality, with state of the art technology. Tesla is a luxury car, not everyone will be able or willing to purchase one, although it is not just reserved for celebrities and wealthy business people. Tesla is looking to reach a client who knows what they like and will go after it. The types of customers who are interested in our cars are people who research their products and know what they are getting. They are also willing to wait to receiver his/her product; currently there is a waiting list to just buy our cars. Even though there is a bit of a wait it still has not scared them away, customers are still astonished with this amazing technology,