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Mass Marketing Vs. Segmentation

Mass Marketing Vs. Segmentation. Saturn’s target market is college educated, men and women ages 25-49. The benefits that they are looking for are: safety, utility, and value This does not make Saturn’s target market very homogeneous More than one price, however, Single promotion

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Mass Marketing Vs. Segmentation

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  1. Mass Marketing Vs. Segmentation • Saturn’s target market is college educated, men and women ages 25-49. • The benefits that they are looking for are: • safety, utility, and value • This does not make Saturn’s target market very homogeneous • More than one price, however, • Single promotion • One distribution system

  2. Market Segmentation • State of Being (demographics) • Age: 25-49 • Gender: male & female • Education: College • State of Mind • American can do attitude • American made • Common people

  3. Market Segment • Benefits sought • transportation • social reasons - gas conservation • This is where a product buyer matrix comes into play.

  4. Segment Approaches • Saturn • Not niche marketer • subcompact was very competitive • customized marketing • product varies slightly • Multi segment option • coupe, sedan, electric car, station wagon

  5. Product Decisions • Saturn is a combination of not just the product, but the service, ideas, and people • Saturn offered only 4 models when it started • Lost focus on meeting the needs of the customer

  6. Introduction of Product • How did Saturn enter the market? • Improvements or changes in the existing products

  7. Pricing • Saturn • tries to reduce customer time, effort, risk and opportunity cost with no-haggle pricing, quality product, great value • efficiency in operations such as eliminating defects also contributes to price

  8. Promotion Decisions • Saturn's benefits: value, utility, quality must be conveyed to the target market • Because of the complexity of selling cars and their margin more direct sales approach must be used • Awareness: TV ad • Interest: direct mailer • Desire and action: personal sell.

  9. Saturn’s Promotions • Consistent message: “A different kind of company. A different kind of car.” • Straight-talk

  10. Saturn’s Distribution • Distribution represented 30-35% of a car’s costs • Saturn offered an exclusive distribution agreement. • Why did they offer exclusive distribution and not the other 2 methods?

  11. Differentiation • Product descriptors = quality • Customer support = strong customer support • Image = A different car.

  12. Saturn’s Positioning Strategy • What is Saturn’s Current Positioning Strategy?

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