Discuss the target market characteristics of hybrid car purchasers. For the past decade, Toyota has been focused on the concentrated marketing strategy and has successfully dominated a large share in the small segment of hybrid cars sales. As in general, the current popular paradigm has been increasingly focus on the environmental issues, such as global warming, petrol fuels consumption and conservation, which has also driven increasing numbers of environmentally alternative vehicle “greener-cars”.
It has been recognized that encouraging the adoption of environmentally friendly products is the key challenge for he behavioral scientists (Kaplan 2000). Toyota markets the hybrid car as an environmentally better alternative to conventional petrol cars. Therefore, this marketing position appears to appeal to target market of hybrid car purchasers can be identified with below consumer characteristics:- Demographic This is the first element of market segment which marketers would approach on how to position and segment the consumer markets in the marketing strategy.
Demographic refers to consumer characteristics in age, gender, education, income, family size, occupation and etc. Hybrid car purchaser’s characteristics n general could be classified their age from arrears to arrears old and with no specific ethnicity, religious background, or gender segment. They are well- informed and educated adults group in the socio-economic segment. According to Gigs David (2009), going “green” is high up on the list for many people. Saving on fuel and running costs is given careful consideration by many people.
Therefore, to drive a hybrid car not only due to environment conscious but also cost saving. This target group is generally in higher managerial, administrative or professional occupations and of upper middle class plus most likely to be aired with family’s responsibilities. According to Ferryman Severity and John Tees (2008), those who purchase hybrid vehicles tend to have much higher levels of education and report much higher household incomes. And this group of purchasers may travel frequently both on business and for leisure.
Cryptographic As upon identifying demographic segmentation, we can classify hybrid car purchaser into two different cryptographic groups. There are technology adopters and environmentalists which we would be able to identify based on their lifestyle, activities and values of interest. Technology adopters generally alee the quality of life, successful in career and portrait high self-confident which can be reflected in their living lifestyle where they have great scene of taste, value the latest trend, quality, niche and upscale products or services.
As for the environmentalists, they are more in the stage of maturity, social and family responsibilities mindset, motivated by the idealistic and well knowledge of healthy living and also very much concern on the products or services for the impact of the nature environments. According to Coho (2003), lifestyles determine the types of vehicles that individuals purchase.
Someone that makes substantial amount of money, an individual with a higher status or a more elite ranking is society is typically interested in a lavish vehicle that is representative of the accomplishments made or the position upheld, “Status seekers are more likely to drive an expensive car (luxury and sports categories) because such cars are common status symbols in modern society. ” Geographic The market can be segmented into region, nation boundaries, city size or density of area.
Most of the target market for hybrid cars is located in the urban areas rather than rural, where urban populations have the desire to buy hybrid car tit environmentally friendly and fuel saving features. Reasons being are due to urban cities are usually populated with vehicles, the traffic jams, or even driving distance and time issues. These issues have urged them to choose hybrid car rather than conventional petrol car. For example, in Malaysia, mostly likely Koala Lump, Penman, Clangor and Juror Barr, will have better potential markets for hybrid cars. . Review and analyses how Toyota Malaysia’s approaches its target segments through their advertisement which you have downloaded. Discuss the effectiveness of the advertisement strategy. Advertiser or marketer’s primary objective is to reach potential customers and influence their interests, attitudes and buying behavior. As an advertising strategy, it provides a major tool in creating product awareness and positioning in consumer’s mind to take the final purchase decision (Meanwhile 2005).
Toyota advertisement’s strategy mainly focuses on the evolution aspects of hybrid technology and freedom from dependence on petrol through their product catalog. From the downloaded catalog, it consists of complete and intensive information from different aspects such as: performance and safety features, car specifications, technologies and parts enhancement information. In general, Toyota concentrates more on their brand image of reliability.
Therefore, as we analyzing throughout the downloaded product catalog on how Toyota Malaysia approaches its target segment listed as below: 1) Product headline: “Leading the hybrid revolution, shaping the future cars. ” Toyota definitely leads in the pioneering of hybrid technology over past decade and setting a benchmark for the competitors. Additionally, Toyota rewarded ‘Pries-World’s No. 1 Hybrid’ from 2010 Toyota Motor Sales. USA. Inc. Where giving the purchaser an extra bonus point in their buying decision to obtain certain social status.
These two points are relatively being effective to those who look forward to be associated with ranking-oriented brands. 2) The stylish outlook photographs of the hybrid car. The appealing look of Pries setting the urge and emotion for those visual-oriented buyers; as Pries’ is uniquely designed with perfecting aerodynamic performance and refining body-kits and accessories. 3) The Key Message: The four key benefits of hybrid synergy drive have been highlighted to fulfill those that are information oriented.
It has effectively summarized all necessary information for those technology lovers who wants to know more details on performances and features. 4) The graphic presentation is simple and clear with complete information of hybrid technology, illustration drawings featuring the advantages of the hybrid system and enhancement features. It is organized for easy reading from the outlook, interior comfort space design, hybrid technology performance, safety system, dimension and specification. ) The specifications table has presented detailed information for the purchaser to understand the general knowledge of the hybrid car. With all the points mentioned above, I believe Toyota implemented their advertising strategy effectively as they furnish useful information to its target group of purchasers which may stimulate them to own a hybrid car. 3) Discuss the environmental factors and individual factors that will influence a potential customer in his/ her hybrid car purchase decision. Environmental factors that will influence a potential customer in his/her hybrid car purchase decision are as below:- 1 .
Culture and Social Class Culture can be referred as purchasers set of values, ideas and concepts which assist him or her to be part of the society. Social class refers as groups of individuals who share the similar values and behaviors in the same society. The culture and social class aid in developing or shaping an individual personality and ability to function well in life, it has great effect on an individual’s buying behavior. For instance, if the society that a person lives in has always been in a good standard of living or healthy life style, this influence may set an effect on his/her culture.
According to Heifer Reid, Kenneth Guarani and Thomas Turpentine (2009), the owners of hybrids feel as though it is “the right thing to do and characterize their vehicles as something they can feel good about”. Hence, this person may have higher possibility to purchase a hybrid car. . Family or Household Influence Family or household consist of group of persons related or unrelated who occupy under a housing unit. Family or household has been one of the major influences which will affect the purchase decision of an individual.
Such example, family background and idealistic from the parents have a certain influence on the purchasing behavior, for example, if from young, family educates the children on “Saving is a good virtue”, when the children grow up and come by purchasing a car, Hybrid car may be the preference choices as it is more economical. 3. Group or Personal Influence This reference groups might be an individual or groups of cycle of friends, who likely to have certain degree of influence on values, norms, behaviors or emotions towards purchasing behavior directly or indirectly.
This influence affects purchaser in various ways such as creating colonization status, providing benchmark of comparison and obtaining conformity of society norms. For instance, “word-of-mouth” on “opinion leader” advertising strategy come across significantly important to peer buddy or in the cycle of friends, whereby if cycle of friends is scale towards environmentalist group, then friends in this circle will eve strongly set the preference choice of purchasing a hybrid car. 4. Situation Change Behavior The factor often changes based on particular situation.
For instance, the travel distance or for working purpose, if someone who is a frequent traveler to outstation or the office is far from home, whereby the consumption of fuel is highly demanded, then this purchaser need a hybrid for a change. As for the Individual factors that will influence a potential customer in his/her hybrid car purchase decision are as below:- 1. Demographics, chirography’s, values and personality These factors have always been used by the advertiser to segment the target market into demographic as in genders, age, religion, income and education level based on the objective description of the consumer .
Where cryptographic provide the demographic the insight of the consumer lifestyle as in value of life, activities, interests and opinions. As for the values and personality, it describes the consumer characteristic and behavior. For example, if the buyer falls into particular categories, as he is upper middle class young managerial professional, easy-going and love greens outdoor activities; he is most likely to go for a hybrid AR. 2. Consumer Resources This factor is based on each different individual combination of time, income and information processing abilities. . Motivation It refers to the drive of satisfy both physiological and psychological needs. The factor often being used by the advertiser to deliver or to create an emotion or motivation needs to satisfy the consumer needs. 4. Consumer Knowledge It is defined as information gathered or stored in consumer’s mind about the product or service, which strongly influence the purchasing decision behavior. It is likely to say that the influence of the consumer knowledge extends beyond reception on product or brand preference.
If the consumer knows more about the product or brand quality, the more willingness the consumer would purchase it. Brand or product awareness and information on quality and perception do a major or important part in the consumer knowledge; it is the fundamental practice by the advertiser to create interest to the brand or product. 5. Attitudes and Intentions These factors define as the feeling and beliefs towards particular product or brand, which engage the consumer to have positive or negative response.
For instance, the consumer believes in a healthy lifestyle and at the same time e part of latest technology trend, which he can deserve a feel good moment; he could like choose hybrid car for a driving pleasure and also safety for the environment. 4) a) If you are shopping for a new car, will you buy this car? Why and why not? If I am shopping for a new car, will not buy this car due to the following reasons:- 1) Pricing Issue The price for the car is on high side, which is selling at ARM 139,915. 00.
Fifth target segment is young working adults or middle income buyer like me, it is unlikely that I can afford a Pries. For example: if I pay 10% deposit for the car and tenting the car loan with an interest of 2. 5% annually, the monthly car installment will be ARM 1,428. 00, which has occupied approximately 30% of the total income. Hence, it is hardly to afford a Pries at my current stage. 2) High Maintenance Costs Hybrid car cost more to repair because of the complexity of the petrol and power battery compulsion system used in most hybrid cars.
Not all mechanics are trained or equipped to work on hybrid car and the repair bills will be larger than standard cars. 3) Infra-structure incomplete The infrastructure in Malaysia has not been fully built for the hybrid car usage et. For example, hybrid car service centers are not widely operated or developed in most of the town, whereby it is hard to get support or repair for a hybrid car if the car broke down, plus it is difficult to buy the spare parts or accessories from conventional car workshop or spare part shop. ) Discuss the way the advertisements influenced your purchase decision. Discuss the other main factors that may influence your decision. Consumer’s choices are influenced by product and brand image and how they perceive them. Through advertising, they can change the consumers’ perception by associating the product with a certain attribute that appeals to consumers’ need. The consumers then associate in their minds that attribute with the brand more than they will relate the same attribute to other competitive brand (Sutherland 2009).
Hence, it will influence the purchasing behavior. As so far, I do not notice that there are many advertisements from Toyota Malaysia that focus on hybrid cars. Some factors that influence consumer purchasing are advertisement, cost, quality, and availability. Feel that advertisement is the most important, followed by quality, cost then availability. If the product is properly advertised, then with he approval by other consumers and cost efficient then buyer would buy the product.
Advertisement with promotion on pricing shall influence me rather than strictly informational. I am a price-oriental person, if the advertisement highlight on price and offer first than would spend the time reading the information next. Secondly, Television is one of the strongest medium of advertising and due to its mass reach; it can influence not only individual’s attitude, behavior, lifestyle, exposure and in the long run, even the culture (Latin and Abide,2011).
Therefore, TV commercial has certain appeal to me as the rand awareness or even the product information and promotional message. Others factors will be as the following:- a) Another factor would be based on promotion oriental advertising as in gift or prize redeems advertisement. For example if the advertiser offers promotion offers such as mileage service offers or spare-part service offers, then I might consider to purchase the car. B) Quality of the product. This is one of the important factors for the buying decision.
If the product does not appeal the qualities, then no matter how strong is the advertisement appears through the communication medium. ) Other factors are influenced by the purchasing decisions of other consumers through interactive marketing such as social media. As because the current age of digital media had given consumer choices to control what they want and when they want, because advertising has moving toward the interactive marketing (Newell & Merrier, 2007; Condo & Niagara, 2007). ) Elaborate your car purchase decision using the Consumer Decision Process Model (CDC). 1. Need Recognition The process starts with need recognition. Need is the major factor that leads to buying of certain products or services and it is the catalyst which triggers the eying decision. At this stage, I will recognize my “current state” with my “desired state”. For example: I am driving a 8 years car – Kelpies (current state), the car has been giving problems and cause high maintenance fee to me recently. Therefore, I intend to trade in for a new car (desired state). 2.
Information Search Once have decided to purchase a new car, I will start searching information for different car brands and the models that fall under my purchase budget. This may involve the following :- a) Internal search – will try to recall if I have any previous experience with the specific brand. ) External search – I will also gather the information through websites, advertisements, magazines, friends, etc. 3. Pre-purchase evaluation of alternatives After I have gathered all necessary information, I shall start evaluating the choices that have been selected.
It will be determined from the car’s brand, performance, features, size and price, etc. 4. Purchase After evaluating the alternatives, I will decide the model that I would like to purchase. There will be other concerns that involve in this stage such as which branch to order from, down payment amount, the bank’s interest rate, discount r free gift from salesman, etc. 5. Consumption In this stage, I will be able to drive the car, checking on the performance and feel the enjoyment of driving a brand new car of my choice. 6.
Post-consumption evaluation This stage refers to the analysis whether the car is fulfilling my need and meeting my satisfaction. If the answer is yes, that means I have made the right decision. Reversely, it is a wrong decision I have made. 7. Divestment In the stage of process, after I had driven a hybrid car and get the knowledge of the hybrid technology and performance of the car; then another decision process s value worth of investment for the hybrid car, whether is I buy the car is it worth for resale or revalue the car for further return of investment.