Full Spectrum of Segmentation Variables
l 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 –
- Geographic variables
- Demographic variables
- Cryptographic variables
- Behavioral variables.
By using these full spectrum of segmentation variables, GM has segmented the automobile market That are described below-
Age: younger than the average GM buyer. Most typically college age on through early ass.
Gender: fairly evenly split.
Family life cycle: young married with and without children are certainly among Saturn early target market.
However, young to middle-age singles are also prevalent. Some customers may exist in other categories, but are not part of Saturn core.
Income: lower-middle income.
Cryptographic: Personality environmentally and socially responsible.
Behavioral: Benefits quality, economy, Innovation, personal service, and the Image of an Salsa import
Loyalty status: strong.
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 crawls now the segment(s) that Saturn Is now following now are-
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 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 customers of many years have graduated into other phases of life, married with more and older kids, middle-aged married and unmarried.
Income: lower- to upper-middle incomes.
Oceanography: Personality: environmentally and socially responsible. This is part of the Saturn mage that Saturn should make every effort to maintain.
Benefits: quality, innovation, personal service; again, these factors are part of the core Saturn image that has made them successful.
And while the benefit of economy will still be there with some models, that is clearly not the focus of the entire new line.
Q.3 Describe the role that social responsibility plays in Saturn targeting strategy. Social responsibility has always played a big role, as mentioned in the previous answer. From the beginning, Saturn has proclaimed that its sole focus is people: customers, employees, and communities.
While the focus on customers may not exactly be social marketing, the policies and initiatives that focus on employees and communities are. Many examples are given in Saturn history on its own Web site at Social responsibility has been central in both attracting customers that GM would never have otherwise attracted as well as contributing to the strong loyalty of Saturn customer base.
Q.4 Do you think that GM will accomplish its goals with the “new Saturn”? Why or why not? Saturn goals are clearly identified . The main goal is increasing sales to 500,000 nits. It is to be seen in this case that Saturn is more than doubling the number of models in its lineup, then doubling its sales should not be that difficult.
But they must consider that many buyers of the new models will be customers who would have bought one of the previous Saturn models anyway. The question with respect to this sales goal should be, can Saturn attract enough new customers to account for the incremental increase in projected unit sales, while at the same time retaining traditional Saturn customers? Saturn shift in image may affect the answer to both parts of this question. We have also identified that many of the new models are not high-volume models. Industry wide, cross-over Subs, roadsters, and hybrid Subs have not demonstrated the type of sales numbers that four-door sedans typically do. Thus, Saturn is going to have to continue to post very strong numbers with its compact line and its new mid-sized sedan.
5 What segmentation, targeting, and positioning recommendations would you make to GM for future Saturn models? A major consideration for future models will depend on the success of the models that Saturn will have already released by the mime, the models mentioned in the case. Another concept vehicle that Saturn is currently considering is a compact SUB called the Pursue, a cross between an SUB and a sport compact. Caution should be taken by Saturn not to get too broad too quickly. And there are likely only so many bases that a single car division will be able to cover. But Saturn should maintain a strong focus on the characteristics that have established its success.
Specifically, they should target customers who have value qua TTY, Innovation, social responsibility, Ana a low-pressure personal sales environment.