Type
Solution Manual
Book Title
Marketing 5th Edition
ISBN 13
978-0077729028

978-0077729028 Chapter 9 Lecture Note

April 8, 2019
Chapter 9
Segmentation, Targeting, and Positioning
Tools For Instructors
Brief Chapter Outline
Learning Objectives
Chapter Overview (“Summing Up”)
Extended Chapter Outline with Teaching Tips
PowerPoint Slides with Teaching Notes
Answers to End of Chapter Learning Aids
Chapter Case Study
Additional Teaching Tips
Brief Chapter Outline
The Segmentation, Targeting, and Positioning Process
Summing Up
End of Chapter Learning Aids
Chapter Case Study: Coca-Cola
Learning Objectives
LO1 Outline the different methods of segmenting a market.
LO2 Describe how firms determine whether a segment is attractive and therefore worth
pursuing.
LO3 Articulate the differences among targeting strategies: undifferentiated, differentiated,
concentrated, or micromarketing.
LO4 Determine the value proposition.
LO5 Define positioning and describe how firms do it.
Chapter Overview (“Summing Up”)
LO1 Outline the different methods of segmenting a market.
There is really no one best” method to segment a market. Firms choose from various methods
on the basis of the type of product/service they offer and their goals for the segmentation
strategy. For instance, if the firm wants to identify its customers easily, demographic or
geographic segmentation likely will work best. But if it is trying to dig deeper into why
customers might buy its offering, then psychographic, geodemographic, benefits, or behavioral
segmentation (occasion and loyalty) work best. Typically, a combination of several segmentation
methods is most effective.
LO2 Describe how firms determine whether a segment is attractive and therefore worth
pursuing.
Marketers use several criteria to assess a segment’s attractiveness. First, the customer should be
identifiable—companies must know what types of people are in the market so they can direct
their efforts appropriately. Second, the market must be substantial enough to be worth pursuing.
If relatively few people appear in a segment, it is probably not cost-effective to direct special
marketing mix efforts toward them. Third, the market must be reachable—the firm must be able
to reach the segment through effective communications and distribution. Fourth, the firm must be
responsive to the needs of customers in a segment. It must be able to deliver a product or service
that the segment will embrace. Finally, the segment must be profitable, both in the near term and
over the lifetime of the customer.
LO3 Articulate the differences among targeting strategies: undifferentiated,
differentiated, concentrated, or micromarketing.
Firms use a targeting strategy after they have identified its segments. An undifferentiated strategy
uses no targeting at all and works only for products or services that most consumers consider to
be commodities. The difference between a differentiated and a concentrated strategy is that the
differentiated approach targets multiple segments, whereas the concentrated targets only one.
Larger firms with multiple product/service offerings generally use a differentiated strategy;
smaller firms or those with a limited product/service offering often use a concentrated strategy.
Firms that employ a micromarketing or one-to-one marketing strategy tailor their product/service
offering to each customer—that is, it is custom made. In the past, micromarketing was reserved
primarily for artisans, tailors, or other craftspeople who would make items exactly as the
customer wanted. Recently, however, larger manufacturers and retailers have begun
experimenting with custom-made merchandise as well. Service providers, in contrast, are largely
accustomed to customizing their offering.
LO4 Determine the value proposition.
A firm’s value proposition communicates the customer benefits to be received from a product or
service and thereby provides reasons for wanting to purchase it. It consists of the attributes of a
product or service that are desired by the target market, but not available from competitors. Firms
could attempt to offer attributes that are important to its customers, whether or not they are
offered by competitors. For attributes that are not important to its customers, it should either
educate its customers about the importance of those attributes, deemphasize them, or not offer
those product or service attributes.
LO5 Define positioning, and describe how firms do it.
Positioning is the “P” in the STP (segmentation, targeting, and positioning) process. It refers to
how customers think about a product, service, or brand in the market relative to competitors’
offerings. Firms position their products and services according to several criteria. Some focus on
their offering’s value—customers get a lot for what the product or service costs. Others
determine the most important attributes for customers and position their offering on the basis of
those attributes. Symbols can also be used for positioning, though few products or services are
associated with symbols that are compelling enough to drive people to buy. Finally, one of the
most common positioning methods relies on the favorable comparison of the firm’s offering with
the products or services marketed by competitors. When developing a positioning strategy and a
perceptual map, firms go through six steps. First, they determine consumers’ perceptions and
evaluations of the product or service in relation to competitors. Second, they identify the
market’s ideal points and market sizes for those ¬products or services. Third, they identify
competitors’ positions. Fourth, they determine ¬consumer preferences. Fifth, they select the
¬position. Finally, they monitor the positioning strategy.
Extended Chapter Outline With Teaching Tips
The Segmentation, Targeting, Positioning Process (PPT slide 9-4)
Step 1: Establish Overall Strategy or Objectives (PPT slide 9-5)
Step 2: Describe Segments (PPT slide 9-6)
Geographic Segmentation (PPT slide 9-7)
Demographic Segmentation (PPT slide 9-8)
Psychographic Segmentation (PPT slide 9-10)
Geodemographic Segmentation (PPT slide 9-12)
Benefit Segmentation (PPT slide 9-14)
Behavioral Segmentation (PPT slide 9-15)
Using Multiple Segmentation Methods
Check Yourself: Several questions are offered for students to check their understanding of core
concepts. (PPT slide 9-16)
1What are the various segmentation methods?
Answer: Geographic, Demographic, Psychographic, Geodemographic, Benefits, and
Behavioral.
Step 3: Evaluate Segment Attractiveness (PPT slide 9-17)
Identifiable (PPT slide 9-18)
Substantial (PPT slide 9-19)
Reachable (PPT slide 9-20)
Responsive (PPT slide 9-21)
Profitable (PPT slide 9-22, 23)
Step 4: Select Target Market (PPT slide 9-24)
Undifferentiated Segmentation Strategy, or Mass Marketing (PPT slide 9-25)
Differentiated Segmentation Strategy (PPT slide 9-25)
Concentrated Segmentation Strategy (PPT slide 9-25)
Micromarketing (PPT slide 9-25)
Step 5: Develop Positioning Strategy (PPT slide 9-26-28)
Value
Salient Attributes
Symbol
Competition
Positioning (PPT slide 9-29)
Positioning Steps (PPT slide 9-30)
Determine consumers’ perceptions and evaluations in relation to competitors’.
Identify competitors’ positions
Determine consumer preferences.
Select the position.
Monitor the positioning strategy.
Perceptual Maps (PPT slide 9-35)
Check Yourself: Several questions are offered for students to check their understanding of core
concepts. (PPT slide 9-36)
1. What is a perceptual map?
Answer: A perceptual map displays, in two or more dimensions, the position of products
or brands in the consumers mind.
2. Idenfy the six posioning steps?
Answer: The six positioning steps are: Determine consumers’ perceptions and evaluations

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