Marketing 1301-05
Target Marketing Assignment
Product: Lexus Hybrid LS 600h L
By: Damjan Poznanovic
Due Date: October 23, 2007 2pm
“sharp”
Product: Lexus Hybrid LS 600h L
Geographics
Region
Density
Worldwide
Australian automotive magazine (Wheels) & National TV
(TV add)
Urban
City or metropolis is portrayed in ads
Demographics
Age
Gender
Family Size
& Stage
Income
Occupation
Education
Race
Home
30-50
Ads showing middle age single males.
Males (primary)
Advertisements primarily in man’s magazines and on TV.
Single
Ads on television programs showing a guy in his late 40’s
driving a Lexus by himself.
$150,000 – $250,000
Upper class portrayal of households in ads. One income
families. Ad placement in magazines with upper income
target market.
White-collar only
Clear distinction beyond middle class.
High level of education, Bachelor’s or Master’s Degree,
possibly PHD.
“want” typically for families with higher education and
income. TV ad displays upper class lifestyle comfort. Males
in the ad, who drive this car, look educated and satisfied
with their lives.
Caucasian-White
Ads depict white male drivers.
Own home
Based on their high disposable income.
Psychographics
Personality
Lifestyle
extroverted (Strivers, Achievers,
Believers) People with need for sophistication, luxury
elegance.
Luxurious
Lexus is a car that is seen strictly as a “want” not a “need”,
simply because these kinds of people strive for something
that will enrich their lives in a luxurious way.
Behaviorals
Benefits
Usage rate
Loyalty
quality, brand name, superior approach to car buying.
Upper class buyers
Buy once use until it breaks down.
High loyalty
Lexus owners tend to stick with Lexus cars, because they
are treated with an extreme high level of appreciation and
respect by Lexus Headquarters and Dealers.
I have chosen to do my target marketing project on the Lexus Hybrid LS600h L,
because it is relatively accessible product, considering the narrow target market and
stereotypical demographics and psychographics. The purpose of this project is to make
consumers aware of how target marketing works. By understanding what marketing is all
about, we develop critical and judgmental skills when making purchase decisions. My
goal for this assignment was to find a product that will have small target market based on
its price, whether it is a “need” or a “want”, and other characteristics of the product.
Lexus cars stand out as one of the best luxury cars on today’s market, due to their high
level of durability, performance and luxury experience they provide. Many companies
have different approach when it comes to marketing segmentation and the marketing mix.
Promotion, distribution, product attributes and pricing, are examples from the
actual marketing mix. All these factors need to be mixed into the product’s dimensions of
segmentation in order to successfully identify the target market across demographic and
psychographic characteristics. The Lexus Hybrid LS600h L has appeared to be a good
choice because of it’s small target market. Demographic characteristics that I have used
in my chart, such as age group, gender, family size, income, education, occupation and
others have shown that the owners of this vehicle are between age 30-50 years old, have a
lot of disposable income, are usually single, and are highly educated. I have come up with
these choices because that’s how they are portrayed in TV ads and newspapers. Using
marketing mix and relating it to target marketing segmentation, represents the perfect
balance and the right move for companies to make when they search for their target
market. Psychographics are as important as demographics because marketers need to
know how certain groups of people think and behave, in order to find the right product
for them. Companies use different kinds of researches, radical and detailed surveys,
interviews, and many other sources to find out what their customer want, when they want
it, and how they want it. By satisfying all of those needs, marketers are able to get a clear
vision of their target market’s needs, and develop a quick way of how to fulfill those
needs at the lowest cost and the shortest time period. Optimizing the marketing mix is the
primary responsibility of companies. By offering the product with the right combination
of the four Ps, marketers can improve their results and marketing effectiveness. Some
minor changes in marketing mix, that are considered tactical, may or may not affect the
product as drastically as strategic changes in the position of the product. The main
purpose of advertising is to create a place for a certain product in our minds, rather than
in stores.
We consumers, as a small group of one of many target markets, are extremely
hard to satisfy. Our needs are so precise and picky and we always demand that they be
met at the most perfect level. Advertisers and marketers constantly work on improving
their skills to keep up with consumer’s needs and wants, and to better understand how we
think and behave, in order to find the right product to sell us. Marketing is an infinite
process of identifying what a consumer wants, and developing a strategy to meet those
needs at the right time and place. Culture also plays an extremely important role in target
marketing and marketing in general. Different people have different values and therefore
demand different marketing approach with specific product characteristics.
This exercise has helped to realize that we consumers must learn about today’s market
system and how it works, if we want to be aware of what we buy and why we buy it in
the first place. We must make mature purchase decisions based on our demographics and
of course, psychographics if we want to enjoy the product that we spend money on.