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Case Study Saturn: How GM has segmented the automobile market?

Using full spectrum of segmentation variables, we will see how GM has segmented the automobile market
GM is a company that produces a lot of car models which are directed towards various segments of the market. A complete structural breakdown is discussed below that provides detailed information about GM’s market segmentation.

Demographic Segmentation:
If one arranges market segments on a demographic basis, they find that the company basically targets young to middle age customers. It does not distinguish between the gender of its audience and targets both male and female users. The Saturn models are designed to provide a life cycle of vehicles that can follow the history of young people who may be married or not. This means that Saturn models start from compacts and gradually increase in size to offer SUVs for large families. The company targets people with low income as most models are cheaper than the competition and designed to provide people with good experience. Saturn models are available for everyone whether be a salaried person or a person with professional job position.

Geographic Segmentation:
The case study does not mention people of different ethnicity or cultural entities. This means that the company targets the general people that are available in the target market of United States. The company is also targets its models for urban situations such as those found in New York City.

Behavioral Segmentation:
The Saturn brand offers safety, economy and personal experience in their car models. They believe in providing different models for different stages in a man’s life. This business model strongly relies on creating loyalty status with its customers. The company targets this kind of segmentation by providing personal services and offering gradual improvements in its models.

Psycho-graphic Segmentation:
The Saturn brand targets people of a lower social class who are looking to move ahead in the society and occupy a position that offers prestige due to the use of good quality cars.

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