Marketing Consumer Behavior Essay, Research Paper

1. ( a ) The types of market sections presently bing for the Hummer in the consumer market are by and large work forces with family incomes changing between 200 and 300 thousand dollars per twelvemonth. Most of these work forces already own two or three autos. More physicians will buy Hummers than attorneies. This market section consists largely of enterprisers as opposed to corporate conformists.

( B ) The types of market sections in the business-to-business market are largely associated with the authorities / military / US Army fleets. AM General, manufacturer of the Hummer, has besides signed a figure of licencing understandings for the usage of the Hummer name-with Converse to market rugged footwear and with Timex to bring forth a & # 8220 ; Hummer & # 8221 ; ticker.

2. There are many pros and cons associated with the above market sections. For the consumer market, the demand is created by a really narrowly defined group of consumers. A specific mark market is positive thing for manufacturers of a good such as a Hummer, nevertheless it is really restricting to the overall demand of the merchandise. In other words, the huge bulk of the US population has an one-year family income of much less than 200 thousand dollars and is non lead by highly successful enterprisers or physicians. AM General knows which type of consumer to aim, but the figure of consumers in the market is comparatively little. Good intelligence for the business-to-business market! If AM General can go on to fulfill the demands of the US military, so they are reasonably much guaranteed a continuously bing market. The market may shrivel and spread out from clip to clip, nevertheless the US authorities will go on to demand military vehicles every bit long as universe peace ceases to be.

With the slump in demand from the authorities section, AM General should aim the consumer market more to a great extent. With e-commerce booming and many enterprisers making new advanced dot com companies, there are work forces ou

T there with money to pass! Because Hummers are more of a luxury point to have instead than a conventional signifier of transit, the market would be similar to that of the Ferrari or Lotus Esprit – type vehicles.

3. AM General & # 8217 ; s selling mix will differ between that for the consumer and that for the business-to-business section. For business-to & # 8211 ; concern minutess, merchandise will run into the specifications requested by the concern ( their demands ) . Place isn & # 8217 ; t excessively of import. Price is reasonably much missing competition for the most portion, and will merely be of import as to what the authorities can afford ( contracts? ) . Promotion will non be a immense concern here, either. Am General will necessitate to supply information that will do the authorities recognize that their merchandises ( vehicles ) are strong, dependable cars by which the authorities will profit from ( they will help in military defence and development ) . For consumers, AM General will hold to work a small harder in the promotional country. The name and image of the vehicle entirely will pull clients who wish to place with this image. However, the consumers need to believe that a Hummer can really be driven around easy and safely by any consumer, non by merely the military. Price will be of significance. Not many people will be able to buy such an expensive, impractical vehicle. Topographic point may be of importance every bit good. The Hummer may be more attractive to those populating in certain types of terrain where they feel they can bask the luxury of the outstanding public presentation of a Hummer off route, in H2O, sand, etc. Does at that place necessitate to be Hummer franchise on every corner in every metropolis? No. Hummers should be available upon particular petition because their mark market is so specific. If a consumer wants one, they will seek for one. They won & # 8217 ; t make up one’s mind to drop by the franchise on their manner place from work and work a trade! Buying a Hummer is a major determination ( for most of us, anyhow ) .

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