Car dealers automile7/5/2023 ![]() ![]() Auto Market Segmentation Method #2: Geographic Segmentation Or you could engage the lower-income and higher-income households in the zip code with different messaging. census tract data to figure out exactly where income levels change, and only target home addresses that meet your criteria. If your big advantage is with lower-income car shoppers, you might want to check out U.S. You could also decide to split the zip code by focusing on the lower or higher income side. A car dealer marketer could look at this data and decide to emphasize vehicle affordability in its marketing or offer service center discounts to get more prospects on the lot. Income levels are lowest in the Lower Ninth Ward and increase as you move west through Bywater toward Marigny and the French Quarter. In the 70117 zip code, you find a lot of low- and middle-income families. Here we’re looking at demographic variables like age, gender, income, ethnicity, and so on. Auto Market Segmentation Method #1: Demographic Segmentation Now that you’ve got the basic contours, let’s walk through some automotive market segmentation examples. Interstate 10 runs through the zip code to the immediate north the Mississippi River forms the border to the south. Going from east to west, this zip code runs from Chalmette and the Lower Ninth Ward (which gained national notoriety during Hurricane Katrina), through Bywater and the Seventh Ward, to the chic Marigny District just east of the French Quarter. Second, New Orleans is a complex local market that you can segment in a few different ways. Why this particular zip code in New Orleans? First, the music is good (does anyone else still have Juvenile on their playlist, or is it just us?). We’ll confine our sources to a handful of free tools and reports, all of which are readily available to you online. To bring the subject to life we’ll pretend our dealership is targeting a zip code in the heart of New Orleans – 70117 – and see what each segmentation technique can tell us about our customers there. Let’s take a look at five common ways your dealership can segment a market: Research shows that 81% of marketing executives said that segmentation was “crucial for growing profits.” With market segmentation, you break up the data on your car dealer’s target audience into different buckets (or segments) – each bucket shares similar characteristics so you can assume that they’ll have similar reactions to your marketing and advertising efforts. You know you want your dealership to step up its audience targeting, but how can you do that, and what’s the best way to reach them? One way you can clearly define and divide your target audience is through automotive market segmentation. ![]()
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