Essay on Case 3 Copy

Submitted By negley27

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1. Using the full spectrum of segmentation variables, describe how GM has segmented the automobile market. (3 points)

GM segmented the automobile market into geographic, psychographic, demographic, and behavioral segments.

Geographic: United States

Demographic:

Age: The younger buyers, this includes all ages below 40
Gender: Both men and women fairly even
Family Life Cycle: Younger couples with or without kids since they are looking at the younger crowd.
Income: Lower to middle income

Psychographic:

Personality: Caring for the environment and financially aware
Social Class: Middle to low class

Behavioral:

Benefits: A technologically advanced vehicle, a personal service, and not pricy
Usage: Frequently used
Loyalty Status: Very loyal

2. What segment(s) is Saturn targeting? How is GM positioning the Saturn? (2 points)

Saturn is focusing more on geographic and demographic segments because they want to attract import buying customers, luxury loving customers, and higher class customers.

GM want customers other than the already domestic buying ones of Saturn. To do this they are releasing new models that are sporty with European style. They are also releasing higher priced vehicles. The advertisements are designed to change their image to draw attention from the younger crowd.

3. What role does social responsibility play in Saturn’s targeting strategy? (2 points)

Social responsibility plays a big role in Saturn’s targeting strategy. Saturn built its brand on its caring for the customers, employees, and communities. A lot of their energy has been focused on taking care of their employees. They make sure that the employees are salary rather that commission that way they see profit and are taken care of, this in turn takes care of communities.

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