- March 13, 2013
- Posted by: essay
- Category: Term paper writing
Today, the competition in the automotive market grows stronger because the economic recession and the deterioration of the marketing environment increase the competition between companies operating in this industry. In such a context, the accurate definition of the target market and target customer group is very important for the overall marketing success of the company. At this point, it is possible to refer to the example of two different companies and vehicles, Ford Escort and Lexus, which hold different positions in the market and focus on different target segments of the market. At the same time, both companies develop their business to meet needs and wants of their target customer group. However, today, companies face the problem of the growing competition and tightening of the target markets. In such a situation, companies should develop new products and strategies to maintain their competitive position and to enhance their position in the market but still companies and both vehicles cannot derive from their target markets because this will need substantial investments, whereas, in case of Lexus, the company cannot grow further because it has already got the premium segment of the market.
First of all, it is important to place emphasis on the fact that Ford Escort and Lexus hold different positions in the market and target at different customer groups. At the same time, both companies, Ford and Lexus, develop their business to meet needs and wants of customers. They develop products that meet demands of customers and satisfy their needs respectively to the status of customers and their expectations in relation to their cars. To put it more precisely Ford Escort and Lexus have different target markets but they develop products that meet the needs of their specific target customer group. At this point, it is worth mentioning the fact that Ford Escort and Lexus are vehicles that belong to different classes and segments of the market. Nevertheless, the development of the marketing strategy should take into consideration prospects of the further development of the market and customers’ behavior, especially in case of possible changes being introduced by the companies.
At this point, it is important to dwell upon the companies’ target markets. In fact, Ford Escort aims at the middle class target customer group, whereas Lexus focuses on the upper-class customer group for Lexus creates luxury cars, which are not always affordable to representatives of the middle class. In such a way, the two companies have different customer groups but they still attempt to meet needs and expectations of their target customer group. In fact, Ford Escort targets at customers interested in compact cars, whereas Lexus targets at customers accustomed to luxury cars. In spite of such difference between the two cars, they are still focus on the specific customer group, which is an essential condition of the overall business success. In fact, both companies developed their cars to meet needs of customers. Lexus manufactures vehicles that are luxurious and provide customers with ample opportunities to enjoy all the benefits of these cars, feeling comfortable and at ease. Instead, Ford Escort’s developers were more concerned with the practical side of using the car. What is meant here is the fact that they attempted to create a cheap but convenient vehicle for regular use. Customers can use Ford Escort for everyday drives as the vehicle to move to the target destination with little attention to luxurious elements, in contrast to Lexus. At the same time, Ford Escort is affordable, especially for the young target customer group, whereas its ZX2 model may be attractive for young customers, who can pay more than average customers for Ford Escort and who enjoy speed and sporty characteristics of the car.