Case 32 Integrated Case Recall Back Case 12 Nick Thomas Ceo Auto Prefer Radio Genres Magaz Q34696547

CASE 3.2 INTEGRATED CASE Recall back in Case 1.2 that Nick Thomas, CEO of Auto prefer? Radio genres? Magazine types? Sections of local Concepts, a new division of a large automobile manu- newspapers? Also, the marketing department has moved to facturer, has been slowly losing market share to other spending large sums of the budget on online promotions. competitors. Auto Concepts was created to reclaim the Nick wants to know which market segments he can re manufacturer’s highly competitive level in the auto indus through blogs, content communities such as YouTube, try by developing new models that are more competitive in social network sites such as Facebook, and online games today’s new car market. Auto Concepts now has five different models that are Knowing that consumers like a particular medium is feasible in terms of engineering and production. Nick has not enough. For example. Nick may learn that the target 1. “Super Cycle,” one-seat all electric, mpg-e rating 125: within that type. Knowledge of the demographic prohles 2. “Runabout Sport,” two-seat all electric, mpg-e 99: esti-a selected market. Because all media provide information market for a particular model prefers one magazine type over another, but there are many choices of magazines assigned tentative model names to them. estimated MSRP (manufacturer’s suggested retail price) $30,000; range 200 miles. of the target market segments can be helpful in selecting one newspaper, one magazine, or one social medium for mated MSRP $35,000, range 150 miles. Runabout Hatchback,” two-seat gasoline hybrid, mpg e 50; runs on battery for 50 miles and then switches to gas engine; estimated MSRP $35,000 range 250 miles. potential advertisers on the demographics they reach Auto Concepts should have a demographic profile of each market segment it attempts to target. To make the most of that information, the carmaker needs information on the demographics of those who most desire each model gender, age, size of hometown or city, marital status, number of people in family, education, income, and 4. “Economy Hybrid,” four-seat diesel hybrid, mpg e 75: runs on battery for 75 miles and then switches to effi- cient diesel engine; estimated MSRP $38,000; range n In terms of positioning the cars, Nick knows fuel 5. “Economy Standard.” five-seat economy standard gaso- economy will be the key motivator. In addition, he wants line, mpg 36; runs on gasoline with computer controlto know if appealing to consumers’ concerns for global warming will have an impact on sales. Auto Concepts is making a major effort to reduce carbon emissions by mov- ing to more efficient propulsion systems; should that effort be a prominent part of its positioning statement in promo- tions and, if so, for which models? Nick gets a lot of mixed general information environment about global warming. He wants to know what consumers think about two issues: (1) Are consumers worried about global warming? (2) Do they believe gasoline emissions contrib- MSRP $37,000: ran es. Note: mpg-e is a measure of the average distance trav- eled per unit of energy used. It is the U.S. Environmental b alternative e.g. electricity) are used. It allows for a comparison information in the new energy propulsion with the fuel efficiency otection Agency’s measure of efficiency when Nick knows no single model will have universal appeal to a huge market. Rather, different models will appeal to t segments, and Auto Concepts will be sharing those ute to global warming? segments with other able competitors that are working just Finally, there is the in those segments. In other to reach target markets for the models it produces without ing, types of infotainment Internet of Things factor: What in- expect and desire on their autos of the future? Do they wish for self- and/or assisted driv- dashboard diagnostic features, novations do consumers ex hard to develop car models that satisfy consumer needs words, Auto Concepts wants or other smartphone driving aids ng promotional dollars on those who aren’t interested the model. For example, if the company decides to pro- duce a particular model, a decision must be made in terms choosing among media types (TV, radio, magazine, Assume that Nick Thomas decides to conduct market- ing research and that the marketing researcher agrees with the problems stated in this case newspaper, social media) in which to promote the product. 1. State the problems. Nick would like to know each market segment’s media hab- 2. Write the research objective for one of the problems Which TV show types do most people in each market in your answer to the first Show transcribed image text