Marketing Theory and Practice
In Assignment One trends in the macro-environment were identified that would impact on the development of a road safety product called “Sat-Safe”, a Global Positioning System (GPS) which automatically adjusts vehicle speed to posted speed limits. Consequently, this paper utilises these trends to segment and target the market, to set marketing objectives and using the marketing mix to position the product. These trends included demographic changes in the family unit, continuing immigration and metropolitan population shifts. In the economic sphere income distribution shapes consumer spending patterns, this is affected by employment, interest rates and ordinary earnings. The natural environment reveals a predilection to environmental protection by reducing reliance on non-renewable resources. The dependence on information systems dominates the technological environment; whilst continuing road fatalities from speeding undertaken by younger generations is in the political sphere and represents an important trend in this environment. Finally, trends in the cultural environment suggest a desire to lead longer and healthier lives.
A good introduction has been provided.
2. Target Market
Kotler, Brown, Burton, Deans and Armstrong (2010) define a target market as “a set of buyers’ sharing common needs or characteristics that the company decides to serve” (p. 278). To ascertain the primary target for the product all the following segmentation variables need consideration.
Geographic segmentation is “dividing a market into different geographical units such as nations, regions, states, municipalities, cities or neighbourhoods” (Kotler et al., 2010, p. 265). Accordingly, variables of city size and density are utilised as.