Market Segmentation of Electric Vehicles

Electric vehicles are slowly transforming the world, and positively, a day will come when everybody will switch to an electric car. There is healthy competition between well-known companies like Tesla, Rivian, Nissan, Volkswagen, Lucid Motors, NIO, Volvo, etc. Electric vehicles get energy from their battery that their electric motor transforms into power. The wheels utilize that power to drive. An electric motor developed more torque and removed the traditional transmission demand. Hence for instant acceleration, the energy travels directly to the wheels. This blog will look at the overall market segmentation of electric vehicles, breaking down multiple marketing aspects. 

Segmentation strategy of electric vehicles. 

Let us watch a short commercial to help us do so.

We will discuss this Nissan commercial to narrow it down into something specific. Right off the bat, it is already engaging and impressive that the company is collaborating with a well-known and loved actress, Margot Robbie. 

Because most people love her, they will also be amazed at whatever she says, and in this video, she is speaking about the awesomeness of electricity. She explains how most objects around us these days are generated by electricity because of the forever-evolving technology. 

There is always something fresher, something more extraordinary, and something that looks better than the older creations, turning them into perfect innovations that people like to benefit from. 

Electricity is not solely for fun and a more leisurely lifestyle; it also provides opportunities for fighting poverty and improving the healthcare system. 

While there are so many people globally with no electricity access, it is crucial to get the means of utilizing it correctly. 

Well, Margot is an actress, so we could guess that at some point, she would set off to her job on that day; it is a table read. And we finally see her car alongside her, explaining that the latter can store sustainable energy from the Sun when she minds her daily business. 

A recycled electric car battery can even store energy in your home, which is amazing if you ask Margot and us. 

So, what can we gather from this ad?

The first hint is the grid of information. This ad is more than something cool we watch and then forget about. Instead, it is something that viewers will learn something from.

The second hint is goal-orientedness, specifically regarding a career. Margot is benefiting from remarkable new technology and is always at the peak of her career, always maintaining it. 

And, of course, she speaks up about the correct electricity utilization that humanity should get into so that everyone benefits from it. It is a significant idea and thought, and she is voicing it.

With all of those hints in mind, the segment that electric vehicles typically target is Balancers. 

What do we know about this segment? 

Lifestyle and values:

Open-minded, upbeat, and yearning people are Balancers because they work tirelessly to reap benefits from everything. Balancers make a determined effort to alter their lives by striking various types of facts.

They feel shame over this for a long time. Balancers feel terrible about not spending time with their families while working.

They feel terrible for not providing enough time to work when their family is present.

Balancers feel bad when they are around loved ones. That is because they believe they are not spending quality time with their life partners, even though this is untrue.

They continuously feel that they are carrying a heavy burden due to this.

For Balancers, family is critical.

Balancers are constantly worried about the welfare of their family.

Balancers must be at the pinnacle of their professions to give their family a prosperous existence.

If they know the benefits of the challenges, Balancers are always open to taking on new ones.

Balancers nevertheless want to stay in their comfort zone despite their tendency to continuously seeking for something new.

The unique assets this segment needs should be in their control. They feel more secure as a result.

Most Balancers hold graduate degrees. This indicates that this group has a solid education and a sharp mind.

Balancers are constantly looking for new data. Balancers view work as a long-term commitment rather than a way to make money and support their families.

Balancers are always looking to advance their careers. This method undermines love and concern. Family is what balancers have.

Balancers try to ensure that their passions mesh well with those around them. Balancers focus on both themselves and other people. They may operate well both individually and in groups.

This section consistently expresses nearly all of their considerations when making decisions. Their coworkers greatly respect them as a result of this.

Balancers choose to work for ethical businesses and give back to their communities. Most of the time, Balancers are tolerant and deeply concerned with society.

Naturally, Balancers will speak up if there is a chance that their decisions could improve the situation.

For Balancers, relationships are a crucial aspect of life. Young Balancers make sure they are socially active with pals.

In any case, Balancers’ desires shift to focus more on their families after becoming parents. Balancers understand that relationships must be long-lasting.

So, after marriage, they continue to be committed to their life partners. Also, this segment constantly addresses the conflicts between them and their loved ones.

Attitude to shopping:

Advertisements are expected to be exciting and motivating by Balancers. To capture this segment’s interest, promotions needed to be innovative.

Balancers are willing to try new ideas. They had to store some information about them in advance, regardless. If this group determines a worthwhile product, they will buy it.

When it comes to purchasing, Balancers make an effort to be as intelligent as possible. People tend to value high-quality products while making purchases.

In any event, the strategy does not preclude looking for discounts or rebates. When this group discovers a brand they like, they stick with it.

Balancers allot one day from their week to go shopping for home necessities. Also, this encourages people to spend more time with their families.

Balancers look for wholesome, robust cuisine that is of the highest quality. But in this instance, Balancers do look for unusual bargains.

Interesting facts about Balancers:

Balancers

• Choose hobbies they can get to with family members
• Are pretty fond of pursuing a healthy lifestyle and, correspondingly, attempt to remain active
• Adore outdoor activities they can enjoy with loved ones
• during different or under different circumstances, must spend great family time
• enjoy unwinding while watching TV or reading, mostly consuming conventional TV channels
• Enjoy sports
• Are average internet users and use it for multiple purposes
• Require to stay up-to-date regarding things that are taking place in the outside world

Positioning plan for electric vehicles. 

Electric vehicles (EVs) typically have a positioning strategy that includes several essential components to define their distinct value proposition and set them apart from conventional internal combustion engine (ICE) vehicles.

With no tailpipe emissions and the potential to lower greenhouse gas emissions, air pollution, and dependence on fossil fuels, EVs are frequently promoted as ecologically friendly vehicles. Consumers concerned about climate change and environmental deterioration will find this positioning appealing.

With lower operating and maintenance expenses than ICE vehicles, EVs can be considered long-term, cost-effective solutions. This includes cheaper fuel costs, fewer maintenance requirements (e.g., fewer moving parts, no oil changes), and potential incentives like tax credits, rebates, and discounted charging rates. Customers interested in long-term cost savings and financial efficiency may be drawn to this positioning.

EVs are frequently presented as cutting-edge, technologically cutting-edge automobiles that symbolize future mobility. This covers regenerative braking, intelligent charging, linked car features, and autonomous driving innovations. This positioning speaks to tech-savvy consumers, early adopters, and looking for the newest car advances.

Electric vehicles (EVs) can be marketed as high-performance automobiles with instantaneous torque, smooth acceleration, and quiet operation. This stance contests the idea that EVs are underpowered or slow compared to conventional ICE vehicles. It may appeal to drivers who value performance and an exciting driving experience.

With features like home charging, public charging infrastructure, and possible benefits like access to HOV lanes or preferred parking, EVs can be considered practical and approachable vehicles. Consumers who value accessibility, use, and convenience in their vehicles are the focus of this positioning.

By connecting with consumers’ ideals regarding sustainability, social impact, and corporate responsibility, EVs can be positioned as a choice that upholds social responsibility. This might entail collaborating with social or environmental organizations, emphasizing ethically sourced resources, and advancing fair labor standards. This approach may be appealing to ethically concerned shoppers who place a high priority on social responsibility.

It’s essential to remember that EV positioning strategies can change according to the target market, consumer preferences, and competitive environment. These components are frequently used in effective EV positioning plans to produce a compelling value proposition that appeals to consumers and establishes a distinctive positioning in the market.

Marketing Mix of electric vehicles.

First, let us uncover what the Marketing Mix stands for. The latter is a marketing concept that refers to a given product’s or service’s product, price, place, and promotion. 

As you can see, there is an inevitable pattern of those concepts beginning with the letter “P,” hence marketers also call it the 4Ps strategy. Let us speak about them one by one. 

Product:

Electric cars can enter adjacent markets where customers use complementary goods from other brands to get the most out of their purchases because their position in their industry is well-established.

The intricacy of the current products and services required, the available niche area in the market, and the decision about product line must be balanced. An Electric Car should continue to sell its current mix of items rather than introducing new ones to broaden its product offering.

These choices pertain to how many stock Keeping Units (SKU) of a specific product should be available. For instance, although Apple’s iPhone has the same technology and software, it comes in various hues.

Price:

Electric Vehicle can calculate the cost of production and apply a markup based on the profit it hopes to make. The method won’t work in a highly competitive environment with changeable pricing. For instance, Uber, which is losing billions of dollars, may provide lower costs and continue to operate compared to individual taxi service providers who need more private equity and long-term planning.

Value Basis Pricing is a pricing approach founded on customers’ perceived value. With a strong knowledge of demand elasticity and competitive constraints, it instills the practice of quantifying both concrete and intangible benefits.

Electric vehicles can use this pricing strategy to establish themselves in the market, launching a new product at a loss or with a meager profit margin.

Electric Vehicle prices may rise for well-known brands as consumers are willing to pay more.

They supply the ideal blend of features, quality, and services at a reasonable cost. For instance, offering a product with few frills allows buyers to try it out for the first time at an affordable price. GoPro frequently uses this tactic.

The pricing strategy depends on the level of market competition. This strategy calls for Electric vehicles to match competitors’ prices while concentrating on lowering operating expenses to boost profitability.

Place:

Electric cars must decide whether to use a direct, indirect, or combined distribution system. Understanding the customer value proposition, presenting consumer convenience points, the breadth and depth of the Electric Vehicle product line, and rivals’ distribution methods are all factors in the channel design selection.

Electric Car’s direct distribution channel allows it to reach clients directly through the natural distribution system. It might do this by creating its stores or selling everything online.

Including channel partners, including wholesalers, retailers, logistics providers, and distribution agents, is the indirect distribution system for electric cars.

Electric Car should use a hybrid model wherein Electric Car manages both the primary and ancillary functions of the distribution system, such as logistics and warehousing.

Channel management involves controlling different power centers within the delivery system and doing so per the negotiating position of each participant in the value chain. Three crucial factors can be considered while managing channels from a marketing standpoint.

Market development is one of the channel’s most important roles. Include channel partners with the know-how and abilities to expand into other markets if Electric Vehicle needs to make further market development efforts.

Electric cars require channel partners who can combine resources if the cost is high. Otherwise, an electric vehicle can perform the tasks on its own.

Electric vehicles can create channel policies that are advantageous to channel partners.

Promotion:

The 6M Model of Marketing Communication has developed into a crucial marketing tool as the significance of internet advertising and social media’s involvement in product promotion has increased.

Another direct marketing strategy that Electric Vehicle might use to contact potential customers directly is email marketing. Based on information gathered by the company from its kiosks, trade marketing, and customer survey, email marketing can assist the Electric Car in connecting with high-probability prospects.

Search engine marketing, where advertisements are given to clients based on their search and browsing histories, is another well-liked advertising medium to develop in the previous 15 years. Similar to email advertising, this may produce relevant advertising for high-potential future clients.

Ultimately, electric vehicles are taking over the market. Hence it is essential to have enough knowledge to make better and proper choices. This blog unraveled the specific targeted segment of electric vehicles, their positioning plan, and their marketing mix. Check out our main website, which constantly renews our feed for more informative and entertaining content.