e, utilities and various government agencies. The Hummer was first classified as an organizational product and then became a consumer product. Based on what product classification the Hummer entails, the market segmentation should be tailored to the consumer and/or market segments it is marketing too. The types of market segments currently existing for the Hummer in the consumer market are generally men with household incomes varying between 200,000 and 300,000 thousand dollars per year. Most of these men already own two or three cars. More doctors will purchase Hummers than lawyers. This market segment consists mostly of entrepreneurs as opposed to corporate conformists. The types of market segments in the b2b market are mostly associated with the government / military / US Army fleets. AM General, producer of the Hummer, has also signed a number of licensing agreements for the use of the Hummer name-with Converse to market rugged footwear and with Timex to produce a “Hummer” watch. Which in turn leads to the market segmentation, which is the process of dividing a total market into market groups consisting of people who have relatively similar product needs, there are clusters of needs. Market segments can have numerous, positive and negative outcomes. There are many pros and cons associated with the above market segments. For the consumer market, the demand is created by a very narrowly defined group of consumers. A specific target market is positive thing for producers of a good such as a Hummer, however it is very limiting to the overall demand of the product. In other words, the vast majority of the US population has an annual household income of much less than 200,000 thousand dollars and is not lead by extremely successful entrepreneurs or doctors. AM General knows which type of consumer to target, but the number of consumers in the market is relatively small. Good news for the b2b market! If AM General can co...
