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.

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

demographic segmentation.

© 2015 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution

in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. 1

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

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

time would you recommend she evaluate?

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

© 2015 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution

in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. 2

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

for your decisions.

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

© 2015 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution

in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. 3

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.

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

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

course of action.

© 2015 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution

in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. 4

Chapter 9 - Segmentation, Targeting, and Positioning Marketing 5

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.

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.

© 2015 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution

in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. 5

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?

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

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

Additional Teaching Tips

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

© 2015 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution

in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. 6

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.

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

micromarketing should be further explored with critical thinking exercises. Emphasize

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

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

© 2015 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution

in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. 7