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Segmentation, targeting and positioning

GM: Downsizing the Hummer

Read the case of "GM: Downsizing the Hummer" and answer the four questions below.

Question 1

Identify two of Maslow's needs that may motivate a purchase of a Hummer H2. Explain your answer using facts from the case.

Divide your answer into two sections, one for each need.

Question 2

Think of the Hummer as an innovation. Evaluate it using the product characteristics that affect the rate of adoption. According to your evaluation, what do you think about GM's sales predictions for the Hummer H2?

Divide your answer into sections, one for each characteristic and one for your thoughts on GM's sales predictions.

Question 3

Identify five demographic and psychographic variables that GM uses to segment the SUV market for its Hummer H2. Support your answers with examples from the case.

Divide your answer into five sections, one for each variable.

Question 4

Compare the original positioning of the Hummer H1 by AM General to the positioning of the Hummer H2 by GM in 2002. What competitive advantage does GM use in positioning the Hummer H2? What went wrong with the Hummer H2 positioning?

Describe the positioning of the Hummers H1 and H2 separately, and then answer the last two questions in two separate sections.

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Type equation here.GM: Downsizing the Hummer

Read the case of "GM: Downsizing the Hummer" and answer the four questions below.

Question 1 (15 marks)

Identify two of Maslow's needs that may motivate a purchase of a Hummer H2. Explain your answer using facts from the case.
Divide your answer into two sections, one for each need.

The two of Maslow's need that may motivate a purchase of a Hummer H2 would be the need for security. The owner of the vehicle would feel safe in his strong and powerful vehicle. There are several aspects of the Hummer H2 that could make the owner feel strong. The weight of the body, the sturdiness of the vehicle, the feeling of security when an accident took place, and the power of the engine, each contributed to the feeling of safety for the SUV owner.
The second of Maslow's need that may motivate a purchase of a Hummer H2 is the need for esteem. Others would know that the owner of the vehicle was well-off. He could buy a costly car and even pay for its gas bills. The objective of the company was to target successful achievers and wealthy consumers. The person who would own the Hummer H2 would be perceived as an achiever and a wealthy person.

Question 2

Think of the Hummer as an innovation. Evaluate it using the product characteristics that affect the rate of adoption. According to your evaluation, what do ...

Solution Summary

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