Provide a psychographic profile of all the different consume

Provide a psychographic profile of all the different consumers that the smart fortwo is targeting.

Solution

What is a concentration strategy? The manufacturer of Rolex watches has chosen to concentrate on the luxury segment of the watch market. This allows them to focus all of their efforts on a single segment. If Rolex chose to use a multi-segment strategy they would be marketing to every watch user and thus their brand value would diminish. Their use of the concentration strategy has helped define themselves as a luxury brand

DENTIFYING YOUR MARKET [top]

Here are three steps to follow when identifying your market:

Step One — Identify Why A Customer Would Want To Buy Your Product/Service

The first step in identifying your target market is understanding what your products/services have to offer to a group of people or businesses. To do this, identify your product or service’s features and benefits. A feature is a characteristic of a product/service that automatically comes with it.

For example, if a toothpaste has a stain-removing formula, that’s a feature. The benefit to the customer, however, is whiter teeth.

While features are valuable and can certainly enhance your product, benefits motivate people to buy.

An example is anti-lock brakes; they are features on a car, but the benefit to the consumer is safety.

By knowing what your product/service has to offer and what will make customers buy, you can begin to identify common characteristics of your potential market.

For example, there are many different consumers who desire safety as a benefit when purchasing a car. Rather than targeting everyone in their promotional strategy, a car manufacturer may opt to target a specific group of consumers with similar characteristics, such as families with young children. This is an example of market segmentation.

In one column, list the features of your product/service. In the other, list the benefits each feature yields to the buyer.

Step Two: Segment Your Overall Market

It is a natural instinct to want to target as many people and groups as possible. However, by doing this your promotional strategy will never talk specifically to any one group, and you will most likely turn many potential customers off. Your promotional budget will be much more cost effective if you promote to one type of customer and speak directly to them. This allows you to create a highly focused campaign that will directly meet the needs and desires of a specific group. Again, this is called market segmentation.