| |2013 |
| |Charles Sturt University |
| | |
| |Conor Davison 99968713 |
| |MKT336 |
| | |
| |Subject Coordinator:- Christopher |
| |Shirley |

|[CSU] |
|A report based on derived demand, market segmentation, market channels |

Executive Summary
Aim/Purpose

The aim of this paper is to analyse derive demand and discuss implications associated with the case study (General Motors). Using the hypothetical segment identified in this paper, designing a channel strategy for the potential segment will be constructed to demonstrate the intricacies associated with marketing channels as a whole. Another aim is to identify and discuss market segmentation strategies that GM uses to segment its business markets. • Procedure - Data will be collected by reviewing and analysing academic secondary sources
• Findings - GM manufactures some of the components, but the finished product reflects the efforts of a broad variety of materials, parts and components from 20,000 supplier plants and over 160 GM plants that collaborate to make the final product

• Recommendations - It is recommended that GM targets a sporting vehicle market segment; this would introduce an entirely new market that GM has yet to explore which increase profitability, marketability and consumer range. Table of Contents

Table of Contents
Introduction/ Part 1a 2 Derived Demand/ 1b 3 2a 4-5
2b 6 2c 7 3a 8
3b……………………………………………………………………………………………………………………………………………………9

Conclusion………………………………………………………………………………………………………………………………10-11

Reference List……………………………………………………………………………………………………………………12-13

Introduction Automotive industries rely heavily on external vendors during the manufacturing process. Industry Demand impacts on all parties associated with the manufacturing of the final product. This paper analyses derived demand and discussing its implications associated with General Motors (GM). The second section of this paper will evaluate GM’s current market segments and provide a hypothetical market segment that GM could roll out to particular consumers. Within this section, this paper will identify GM’s market segmentation strategy used to segment its business markets. The third section of this paper will describe the marketing channels GM uses to distribute its products and whether they are effective. Finally, using the hypothetical segment identified in the second section, designing a channel strategy for the potential segment will be constructed to demonstrate the intricacies associated with marketing channels.

1a. Analyse the derived demand that determines the company's production.

Derived demand refers to the direct link between the demands for an industrial product and the demand for consumer products (Hutt & Speh, 2010). GM uses raw materials and components from an extensive network of suppliers to make its final product. GM manufactures some of the components, but the finished product reflects the efforts of a broad variety of materials, parts and components from 20,000 supplier plants and over 160 GM plants that collaborate to make the final product (Platt, 2011). According to the GM official website, on average, raw materials pass through 6 to 10 suppliers before reaching GM (2013). Major upstream suppliers that provide the components and raw ingredients include Acumuladores, Moura, ADAC Plastics, Johnson