Marketing in the Automobile Industry

High School ・Business ・APA ・3 Sources

The Motor Industry is an industry that has emerged as one of major industries to involve in utilizing marketing to accomplish its goals. Below are some examples of car advertisements:

Advertisement Target market
Audi R8 The Upper Class consumer segment
Volvo Reality Young tech-savvy buyers
Lange Rover Discovery TV commercial Upper class market
Toyota’s GoPriceGo Medium to upper level consumer segment
Honda Accord commercial Medium to upper level; consumer segment

There are elements of the advertisements that led to target market assumption for each advertisement. They include the price, class, safety, durability, and low fuel conservation. Depiction of luxury, prestige, acceleration, comfort elegance, and powerful engines is from the upper-class advertisement (Academy of Marketing Science, 2014).

The car adverts aimed at medium to upper-class market mainly depict the fuel efficiency of the cars, affordability, use, durability, safety, and comfort. The segmentation variables used by the car marketers include demographic variables such as age and income level. An example is different vehicles are targeted at either young technology savvy middle-income earners or higher income older and conservative consumers. Psychographic variables are also used by markets in the car industry to determine target segment, for example, sports cars target consumers with similar interests of fast racing cars at the premium quality the case of Porsche. Shared attitudes and values for comfort, style, and prestige are also a focus of marketers as is the case in Jaguar and Range Rover. Geography is also another segmentation variable with cars aimed at the UK market different from cars aimed at the African market.” New car models for each region” allows for reduced global emissions depicting the focus on geographical segments by car marketers (Robbins, 2014). Behaviorist segmentation is the other variable used by car marketers focusing on the loyalty, customer status, usage, and familiarity with the product and is the strategy utilized by car companies including Mercedes, which focus on providing sleek cars for a loyal customer base. Preference is the other main segmentation variable utilized in the auto industry to achieve a specific loyal market segment (McDonald & Wilson, 2009).

Car marketers cannot benefit from changing the target markets because the companies will lose benefits of focusing on a given market segment. Changing target markets causes a company to lose returns from its focus on the current market segment, reduced competitiveness, and the chance of losing customers from the current market segment. Changing market segment will also require companies to invest increasing costs to develop marketing and product specification for the new market segment. Revenue reduction from changing market segment is also a possibility because of an entry into another company’s specialization and neglect of current market segment. The other reason why changing a market segment is not advisable is the risk that arises because the company has no experience in the new market segment.


Academy of Marketing Science. Annual Conference. (2014). Ideas in Marketing: Finding the New and Polishing the Old: Proceedings of the 2013 Academy of Marketing Science (AMS) Annual Conference.

McDonald, M., & Wilson, H. (2009).Marketing plans: How to prepare them, how to use them. John Wiley & Sons.

Robbins, S. P., Bergman, R., Stagg, I., & Coulter, M. (2024). Management. Australia: Pearson Education Australia.

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