Target Marketing-Tesla- Model S
Jovanim J. Martinez
University of San Diego
May 29, 2014
Target Marketing- Tesla- Model S
The marketing concept calls for understanding customers and satisfying their need better than the competition. Mass marketing refers to treatment of the market as a homogenous group and offering the same marketing mix to all customers. The drawback of mass marketing is that customer needs and preferences differ and the same offering is unlikely to be viewed as optimal by all customers. If firms ignored the differing customer needs, another firm likely would enter the market with a product that serves a specific group, and the incumbent firms would lose those customers. Target marketing on the other hand “recognizes the diversity of customers” and does not try to please all of them with the same offering. The first step in target marketing is to identify different market segments and their needs (Net MBA, 2010). According to Net MBA (2010), market segmentation is “the identification of portions of the market that are different from one another”. The Business Dictionary (2014), defines marketing segmentation as “[t]he process of defining and subdividing a large homogenous market into clearly identifiable segments having similar needs, wants, or demand characteristics. Its objective is to design a marketing mix that precisely matches the expectations of customers in the targeted segment”. Segmentation allows firms to better satisfy the needs of its potential customers. A common challenge marketers face is that different customers have different needs, and it rarely is possible to satisfy all customers by treating them alike. Successful marketers understands the four basic factors that affect market segmentation – clear identification of the segment, measurability of its effective size, accessibility through promotional efforts, and its appropriateness to the policies and resources of the company, as well as the four basic market...