Target Market
Porsche performs target marketing concentrating on the con sumers the organization has the strongest potential to satisfy. Porsche performs effec tive target marketing by:
1.
Identifying and profiling different consumer groups with differing wants an d needs ( market segmentation
).
2.
Choosing one or multiple segments to target ( market targeting
).
3.
Communicate and establish the unique product/service offerings of the organization in the mind of the consumer ( positioning ).
Porsche markets to an elite and upscale target audience effe ctively using market segmentation, market targeting, and positioning continuing to build on its st rong brand focused on products exclusively in the premium (luxury) automotive segment.
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Segments must be Measurable, Substantial, Accessible, Differentiable, and A ctionable. ”
–
Philip Kotler
Automotive Industry Segmentation
The automotive industry has approximately 23 different segmen ts according to J.D. Power and
Associates. J.D. Power and Associates do not include segmen ts for vehicles from brands, such as
Maserati, Ferrari, Lamborghini, Bentley, Rolls-Royce, Fisker, McLaren, and others.
Most of these brands compete with Porsche in varying degr ees along with more traditional luxury brands, such as BMW, Mercedes, Lexus, Audi, Infiniti
, Land Rover plus others.
J.D. Power and Associates classifies Porsche, BMW, Mercede s, Lexus, Audi, Infiniti, Land
Rover plus others as part of the premium segment.
The automotive industry segments consumers based on demogra phic data, geographic information, and a psychographic profile of consumer behavi ors with marketing messages targeted to these groups.
Porsche
’ s Market Segment Strategy
The product lineup for Porsche includes:
1.
911 in the midsize premium sporty car segment
2.
718 Boxster in the compact premium sporty car
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Porsche
’
s introduction of the Cayenne created a new market segment in an attempt to expand the brand. The introduction of the Cayenne has resulted in a vehicle that accounts for half of Porsche
’
s profits.
In 2009, Porsche launched the 2010 Panamera a four-door sport co upe based on the market research department identifying a need for a sporty four-door that drives like a sport car. The
Panamera is the first of its kind creating a new segmen t of the four-door luxury sport car.
Porsche
’ s effort to move outside of the sport car niche with the
Cayenne and Panamera product launches have stimulated demand resulting in increased sal es for the brand. The Panamera and
Cayenne have proved to be effective brand extensions appeali ng to a wider audience by offering unique product offerings.
Market Targeting
Market targeting involves Porsche evaluating the viability o f each market segment and deciding which segment or segments to pursue (target). Porsche uses a hybrid market targeting strategy focused on a large share of the premium sport car and spor t CUV segment using a finely