Marketing
Target customer segments: “Researchers identify consumer segmentation as a critical predictor of new product or service success” (Gofman 604). Even though both Smart Car and Honda Civic are popular vehicles in the global market, they choose different segmentation strategies for targeting their potential customer base on the characteristics of segmentation, such as age, income level, life style, and other relevant factors. According to kabadayi, Alan, and Ozhan, “We can see that while relatively young respondents picked small cars and sport cars, middle- aged respondents tended to pick full size cars or SVU and Minivans” (6). As a vehicle which has small size and unique image, Smart Car focuses on the young generation which prefers to be cool and different. The youth are considered as the group of people which have high interest on the new product and willing to adopt the advance technology. The unique design and certified quality of Smart Car totally satisfies the need and want of the youth. The young believes he is different when he is driving a Smart Car on the road. On the other hand, Honda Civic chooses to pay attention to the middle-aged which is looking for a multipurpose car. As a result, Honda Civic emphasizes its advances which include spacious and energy-efficient. Honda Civic focuses on the need and want of the middle age while Smart Car thinks about the youth. Smart Car and Honda Civic also concern about the income level of different social group. Smart Car targets its market on the consumers who are earning a low salary since it is considered small size and low fuel consumption. Research in Euro discovers “respondents with a monthly salary of $700 or less preferred small cars to the other choices”; in addition, “Respondents with earnings between $700 and $1200 generally favored small and mini cars to others” (kabadayi, Alan, and Ozhan 6). Unlike Smart Car, Honda Civic targets its market on the consumers who have a higher income