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How GM has segmented the automobile market?
The first variable is geography. The first factor is the country. This is the reason they have entered the United States. Climate is another factor under geography variable. The western and southern regions are known to be dry and cold unlike the northern and eastern parts, which are known to be windy and rainy. Another factor under geography variable is market size. They distribute passenger cars in areas that are densely populated. Close to this factor is the market density. They are developing cars which are suitable for both, urban and rural areas.
The second variable is demography. Under this one, there are many factors which include: gender, family size, the income of the household, and the occupation of the buyers. Professionals are also a target of GM because they earn a salary. The baby boomers generation is a target group that GM ranks under age and generation.
Another variable is psychographic. Social class is also another issue where the middle class is the main target group. Another issue under psychographic variable is personality; this is where buyers are either spendthrift or compulsive in their spending.
There is also another variable that is important called behavioral. In this category, buyers are classified as either regular or rare buyers. Some buyers are loyal to GM.
Initially, Saturn had differentiated their products in various segments of the market. Users of non-truck cars wanted to have vehicles that were economical in fuel consumption.
What segment(s) is Saturn now targeting? How is GM now positioning Saturn? How do these strategies differ from those employed with the original Saturn S-series?
The strategy that Saturn implements nowadays is selective segmentation. This way, they are targeting customers who are import buyers. They are also targeting high-end and rich customers.
One positioning strategy that GM uses is creating a strong brand image. They are doing this by ensuring that their services are perfect. They are also positioning themselves by coming up with new models like sky two-seater roadster, Sedan, outlook crossover, and GM lambda platform. They are also changing the prices and they are now producing high-end vehicles. They are also producing two lines of vehicles, red line, and green line. The m-series cars lack good models and are way below the industry average
Q3.Describe the role that social responsibility plays in Saturn’s targeting strategy?
One corporate social responsibility move that GM has undertaken is the employment of women. They have employed women in many positions. GM has also employed the less fortunate and the disabled. GM has also made an effort to conserve the environment by developing green-line vehicles. GM has also participated in many philanthropic activities.
Do you think that GM will accomplish its goals with the “new Saturn”? Why or why not?
I believe that GM will accomplish its goals because GM has transformed their operations, especially when coming up with new models like AURA and OUTLOOK. GM has assets like customer networks and high ratings of satisfaction.
What SEGMENTATION, TARGETING, & POSITIONING recommendations would you make to GM for future Saturn models?
In terms of segmentation, it should segment the market more broadly. In terms of targeting, they should target all classes of people by changing the luxury-taste of the vehicles. In terms of positioning, they should go for stylish and trendy cars. This is apart from the humdrum car. They should add features without necessarily increasing prices.
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