978-0077729028 Chapter 9 Answers To End Of Chapter

Type

Solution Manual

Book Title

Marketing 5th Edition

ISBN 13

978-0077729028

April 8, 2019

Chapter 9 - Segmentation, Targeting, and Positioning Marketing 5

Answers To End Of Chapter Learning Aids

Marketing Applications

1 What segmentation methods would you suggest for a small entrepreneur starting her

own business selling gourmet chocolates? Justify why you would recommend those

methods.

1 You have been asked to identify various segments in the market and then a potential

targeting strategy. Describe the segments for a children’s clothing store, and then

justify the best targeting strategy to use.

Students should be able to explain each segmentation strategy and its application.

2 What types of products would you use demographic segmentation for? How about

psychographic segmentation? Explain how these products differ.

Products where gender plays a very important role in how the firm markets are great for

demographic segmentation.

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Chapter 9 - Segmentation, Targeting, and Positioning Marketing 5

3 You have been asked to evaluate the attractiveness of a group of identified potential

market segments. What criteria will you use to evaluate those segments? Why are

these appropriate criteria?

The third step in the segmentation process involves evaluating the attractiveness of

market segments. To undertake this evaluation, marketers first must determine whether

the segment is worth pursuing, using several descriptive criteria: is the segment

identifiable, substantial, reachable, responsive, and profitable.

4 A small-business owner is trying to evaluate the profitability of different segments.

What are the key factors you would recommend she consider? Over what period of

time would you recommend she evaluate?

At a different level than that in the previous question, students must suggest ways to

determine profitability.

5 Think about the various energy drinks that you and your friends drink (e.g., Red Bull,

Full Throttle, and Monster).How do those various brands position themselves in the

market?

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Chapter 9 - Segmentation, Targeting, and Positioning Marketing 5

6 Put yourself in the position of an entrepreneur who is developing a new product to

introduce into the market. Briefly describe the product. Then, develop the

segmentation, targeting, and positioning strategy for marketing the new product. Be

sure to discuss (a) the overall strategy, (b) characteristics of the target market, (c) why

that target market is attractive, and (d) the positioning strategy. Provide justifications

for your decisions.

7 Think of a specific company or organization that uses various types of promotional

material to market its offerings. The Web, magazine ads, newspaper ads, catalogs,

newspaper inserts, direct mail pieces, and flyers might all be sources for a variety of

promotional materials. Locate two or three promotional pieces for the company and

use them as a basis to analyze the segments being targeted. Describe the methods

used for segmenting the market reflected in these materials, and describe

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Chapter 9 - Segmentation, Targeting, and Positioning Marketing 5

characteristics of the target market according to the materials. Be sure to include a

copy of all the materials used in the analysis.

This exercise takes the examination of segmentation, targeting, and positioning one step

further to the actual implementation of the entire process of marketing materials.

8 You have been hired recently by a large bank in its credit card marketing division.

The bank has relationships with a large number of colleges and prints a wide variety

of credit cards featuring college logos, images, and the like. You have been asked to

oversee the implementation of a new program targeting the freshman class at the

schools with which the bank has a relationship. The bank has already purchased the

names and home addresses of the incoming freshman class. You have been told that

no credit checks will be required for these cards as long as the student is over 18

years of age. The bank plans a first day of school marketing blitz that includes free

hats, t-shirts, and book promotions, as well as free pizza, if the students simply fill out

an application. Do you think it is a good idea to target this program to these new

students?

What ethical issues might arise from the situation outlined, and to what degree do these

issues violate students’ own ethical standards? Using the ethical decision-making

framework discussed in Chapter four, students should evaluate their opinion of the

practice of marketing credit cards to college freshmen and thus determine an appropriate

course of action.

In applying the ethical decision-making framework:

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Chapter 9 - Segmentation, Targeting, and Positioning Marketing 5

Net Savvy

1 Go to the Nielsen Claritas’ website (www.mybestsegments.com). Click on the tab that

says “ZIP Code Look-Up,” then enter your zip code to learn which segments are the

top five in your zip code. Follow the links for each of the five most common PRIZM

segments to obtain a segment description. Write up a summary of your results.

Discuss the extent to which you believe these are accurate descriptions of the main

segments of people who reside in your zip code.

By looking at their own zip codes, students can get a feel for how accurate Claritas is

and discover any areas in which Claritas has missed the mark.

Answers will vary. A sample answer may be: Generally, people who live in my zip code

tend to be highly educated, affluent, ethnically mixed, liberal, and technologically savvy.

This description is accurate for the area I live in on the whole, but a segment of the

population that PRIZM seems to have missed are the elderly, who are numerous in my

area.

9 Go to the VALS website (http://www.strategicbusinessinsights.com/vals/

presurvey.shtml), and click on the link to complete the VALS survey. After you

submit your responses, a screen will display your primary and secondary VALS types.

Click on the colored names of each segment to get additional information about them,

and print out your results. Assess the extent to which these results reflect your

lifestyle, and identify which characteristics accurately reflect your interests and

activities and which do not.

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Chapter 9 - Segmentation, Targeting, and Positioning Marketing 5

Responses will vary according to the results of each students’ VALS survey results. The

main dimensions of the VALS segmentation framework are consumer motivation and

consumer resources. Consumers are inspired by three motivations: (1) ideal, (2)

achievement, and (2) self-expression. Students should touch upon the basic framework of

the VALS survey in their response and address the validity of the survey.

Chapter Case Study: Coca-Cola

1 Which types of segmentation strategies does Coca-Cola use to categorize the cola

beverage market?

Coca-Cola uses a differentiated marketing strategy. It delivers a unique plan (and

subsequent marketing message) to its segments. This strategy is effective in the market

since each segment has its unique needs that are significantly different. Each is a

completely different market.

10 Are these types effective in this market? Provide support for your answer.

Additional Teaching Tips

This chapter addresses segmentation strategy– undifferentiated, differentiated,

concentrated, and micromarketing. The student will learn critical thinking skills to

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Chapter 9 - Segmentation, Targeting, and Positioning Marketing 5

determine the best method of segmenting a market. Segment attractiveness is explored

and well as positioning

One of the most difficult concepts for students to understand is that of product

positioning. Instructors should emphasize that product position is based primarily on

competing brands in the marketplace and the consumer’s perception of the brand. The

perceptual map from the text should be thoroughly reviewed with students.

Students can learn this in a classroom setting where the instructor delegates one person in

the class to be the facilitator and then assigns the classroom with creating a class

perceptual map (food franchises can be used as an example). This can also take place in

groups with each group presenting their perceptual map to the class.

Online Tip: This exercise can be transferred to the online platform where groups are

given the same tasks then asked to post the groups’ results. An ensuing discussion board

can then compare/contrast the various perceptual maps.

The four strategies of undifferentiated, differentiated, concentrated, and

micromarketing should be further explored with critical thinking exercises. Emphasize

that it is the approach to the marketing message in relation to its target market(s) NOT

the type of product it is.

Students confuse this. Consequently providing additional exercises such as having

students research advertisement campaigns on the Web, then determining if it’s a

differentiated, undifferentiated, concentrated, or micromarketing segmentation strategy

will help them to better understand that the strategy is based on the target market

characteristics not the product.

Remember to review the Newsletter for Instructors and its accompanied PowerPoint

presentation, which integrates examples and discussion from the newsletter. Each

newsletter contains over ten article abstracts on hot topics, plus a selection of current

commercials and videos for you to use with your class. The newsletter also includes a

guide that explains where the articles, commercials, and videos best fit in your Marketing

course.

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