ntinue to satisfy the demands of the US military, then they are pretty much guaranteed a continuously existing market. The market may shrink and expand from time to time, however the US government will continue to demand military vehicles as long as world peace ceases to exist. With the falloff in demand from the government segment, AM General should target the consumer market more heavily. With e-commerce booming and many entrepreneurs creating new innovative dot.com companies, there are men out there with money to spend! Because Hummers are more of a luxury item to own rather than a conventional form of transportation, the market would be similar to that of the Aston Martin or Jaguar type vehicles. This in turn will lead to the marketing mix. The marketing mix includes a combination of product, packaging, price, channels of distribution, advertising, promotion, and personal selling to get the product in the hands of the customer. AM General’s marketing mix will differ between that for the consumer and that for the b2b segment. For b2b transactions, product will meet the specifications requested by the business (their needs). Place isn’t too important. Price is pretty much lacking competition for the most part, and will only be important as to what the government can afford (contracts?). Promotion will not be a huge concern here, either. Am General will need to provide information that will make the government realize that their products (vehicles) are strong, reliable automobiles by which the government will benefit from (they will aid in military defense and development). For consumers, AM General will have to work a little harder in the promotional area. The name and image of the vehicle alone will attract customers who wish to identify with this image. However, the consumers need to believe that any consumer can actually drive around a Hummer easily and safely, not by just the military. Price will be of significance...
