With the rising competition level in the business industry, companies are working tirelessly to cope up with market demands. Organizations are embracing different strategies to fit in the highly competitive business industry. Technological development is regarded as one of the critical factors contributing to a competitive market. Other factors include the nature of the product, customer demand, market flooding and economies of scale ( Dehghani et al., 2020). The competition level has prompted businesses to develop strategies that could help them overtake the market. Marketing strategy is one of the common approaches that is used by many companies to lure customers and take control. The main target of marketing is to attract more customers, increases sales and make more profits. This paper will discuss customer decision-making process, market segmentation, target market strategy and target market positioning in regards to Chevrolet Traverse.
Customer Decision-making process
One of the main reasons for marking a product is to influence customer decision on whether to buy the product or not. In the bid to market Chevrolet Traverse, it is essential to control the steps that customer would take to make a decision or his or her most preferred product. Ways through which marketing of Chevrolet Traverse can influence the six stages of customer decision-making process Zhang et al., 2018).
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Problem recognition: Before the customer decides on whether to buy a product or not, there must be an issue or problem that the customer seeks to fulfil. The problem might have been identified by the consumer or created by another party. Through marketing Chevrolet Traverse, the consumer can start to think about having a family sports car that can accommodate all the family members. In this case, the market has created a problem that might have never crossed the consumers' mind before.
Information research: Many consumers usually conduct thorough research before purchasing. The information extracted from the study significantly influence the decision that the customer would make. Marketing Chevrolet Traverse in various platforms will not only make the information about the product readily available but will also avail more convincing and attractive information to the consumers.
Evaluation of alternatives: Having a variety of products in the market is what trigger competition. Making customers ensure that they make a proper comparison of products and whatever they have selected is the best. Marketing Chevrolet Traverse by majoring on factors such as the number of seats can convince many customers to choose Chevrolet Traverse over other alternative brands that can only accommodate a few people.
Purchase decision: This is a critical stage in the customer-decision making process. Some of the essential factors include price and payment option. Marketing Chevrolet Traverse as a relatively affordable vehicle with space at the same time can push the customer to make the final decision of buying the car.
Purchase: At this stage, the customer has decided on the products. However, the customer can still change his or her mind, mainly if unfavorable information about the work arises. Marketing Chevrolet Traverse through testing and describing its interior features will give the customer more surety about the product, thus limiting the possibility of rejection at this level.
Post-purchase evaluation: Even after the customer has purchased the product, his perception towards the work is a critical factor in building customer trust and loyalty. Guiding the Consumers on how Chevrolet Traverse is operated, will not only enhance customer trust with the product but also encourage other customers to buy the same product.
Segmentation
One of the main aims of marketing a product is to reach as many people as possible. One must come up with a proper strategy of ensuring that the marketing channel used maximized on its audience ( Kingsnorth, 2019). The market has to be divided based on factors such as age, geographical location and gender in to make sure that the information reaches the right person. The process of dividing targeted customers of a given market into segments or group based on their characteristics is referred to as market segmentation. The process is vital when it comes to product marketing as it ensures that the information only reaches the relevant recipients. There are four different types of market segmentation, including behavioural segmentation, psychographic segmentation, geographic segmentation and demographic segmentation.
Behavioural segmentation refers to the market segmentation where target market consumers are divided based on how they act or behave towards the product ( Dolnicar et al., 2018). This market segmentation requires one to know how the customer is like to interact with the product brand. Behavioural segmentation is vital to market segmentation for Chevrolet Traverse. It classifies the consumers based on their spending habits, user status, brand interactions and purchasing powers. In the motor vehicle industry, the four characteristics mentioned above, play a critical role in determining customer behaviours. The purchasing habits of customers will help determine the kind of things that the customer likes to buy. The user status determines the type of car that consumer is likely to buy. The consumer test for the brand is also an important factor, whether the consumer prefers sports cars SUV.
Demographic segmentation refers to a market segmentation where consumers are categorized based on personal characteristics such as ethnicity, family sizes, incomes, ages, location, gender and income ( Makgosa and Sangodoyin, 2018). Demographic segmentation can be used group target customers for Chevrolet Traverse . Family sizes, income and ages play an essential role in determining the customer interest in the product. For an instant, people with more prominent families are more likely to purchase the c Chevrolet Traverse as compared to small family individuals. Therefore, grouping consumers based on the family will give a better signal on the potential customers for the product.
Part 2
Target market & strategy
It is essential to decide on the type of segmentation that best suit the product, considering all the types of market segmentation. A decision to settle on the most appropriate market segment depends on factors such as the room for market growth, the competitors in the market, the resources required, the purchasing power and accessibility.
In the case of Chevrolet Traverse , demographic market segmentation is best suitable for grouping the potential consumers for the product. Chevrolet is targeting families with an active lifestyle for its new product. As far as lifestyle factor has not been captured in demographic segmentation, key determinant factors such as family sizes, age and income have been highlighted. Marketers should find out the dominant age group, family sizes and customer income for the product. Considering the nature, the status and size of the Chevrolet Traverse, Echo Boomers should be the target market for the product. Some of the key reasons why Echo Boomers are best suited for the product include the fact that they are trendy, most of them have families, and they are employed hence can afford the car.
Positioning
The perceptual map refers to a plan used by businesses and market researchers to show how the customers perceive a product. It gives the company a better understanding of its product’s competitive positioning (Schreiner et al., 2017). The figure below shows a perceptual map for Chevrolet Traverse.
Buick
High price
Ford
Chevrolet Traverse
Low variety service High variety services
Low price
Chevrolet should keep its position in the market since it has lower prices and a wider variety of services as compared to its competitors.
References
Dehghani, M., Abubakar, A. M., & Pashna, M. (2020). Market-driven management of start-ups: The case of wearable technology. Applied Computing and Informatics .
Dolnicar, S., Grün, B., & Leisch, F. (2018). Market segmentation analysis: Understanding it, doing it, and making it useful (p. 324). Springer Nature.
Kingsnorth, S. (2019). Digital marketing strategy: an integrated approach to online marketing . Kogan Page Publishers.
Makgosa, R., & Sangodoyin, O. (2018). Retail market segmentation: the use of consumer decision-making styles, overall satisfaction and demographics. The International Review of Retail, Distribution and Consumer Research , 28 (1), 64-91.
Schreiner, T. F., Fandrich, T., Heitmann, M., & Talke, K. (2017). A Novel Approach for Predicting and Understanding Consumers' Sense of Design Similarity. Journal of Product Innovation Management , 34 (6), 790-820.
Zhang, H., Zhao, L., & Gupta, S. (2018). The role of online product recommendations on customer decision making and loyalty in social shopping communities. International Journal of Information Management , 38 (1), 150-166.
