case study chapter 7

Topics: Target market, Social responsibility, Target audience Pages: 3 (857 words) Published: April 21, 2015
Chapter – 7
Saturn: An makeover image ( case study question answer)

Q.1 Using the full spectrum of segmentation variables, describe how GM has segmented the automobile market. We know that there are four variables of marketing segmentation. They are – 1. Geographic variables 2. Demographic variables 3. Psychographic variables 4. Behavioral variables. By using these full spectrum of segmentation variables, GM has segmented the automobile market That are described below-

Demographic:
Age—younger than the average GM buyer. Most typically college age on through early 40s. Gender—fairly evenly split.
Family life cycle—young marrieds with and without children are certainly among Saturn’s early target market. However, young to middle-age singles are also prevalent. Some customers may exist in other categories (the image of an SL1 being towed behind a motor home with a retired couple at the wheel comes to mind), but are not part of Saturn’s core. Income—lower-middle income.

Psychographic:
Personality—environmentally and socially responsible.

Behavioral:
Benefits—quality, economy, innovation, personal service, and the image of an Asian import Loyalty status—strong.

Q.2 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?

After suffering a financial crisis now the segment(s) that Saturn is now following now are- Demographic:
Age—A classic strategy is to grow old with your target audience while still trying to keep the young ones coming in. The Japanese Big Three have clearly done the former. They added more models to the lineups and even new luxury divisions to appeal to those who were raised on Japanese imports. So Saturn’s move in this direction makes complete sense. Gender—likely not much change here.

Family life cycle—While there will still be models that will appeal to the same core customer, Saturn has recognized that its loyal...
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