Book Title
Marketing 5th Edition

978-0077729028 Chapter 9 Slides

April 8, 2019
Powerpoint Slides With Teaching Notes
Power Point Slide Teaching Notes
9-1: Segmentation, Targeting, And
9-2: Learning Objectives These are the learning objectives for this
9-3: Nerflix Through careful analysis of its millions of
viewers and how they watched shows, Netflix,
the movie rental company that has quickly and
readily become one of the most popular and
successful streaming content providers.
Netflix makes sure to target advertisements for
each of its shows to each specific segment.
9-4: Segmentation, Targeting, Positioning
Previous chapters addressed how to plan
marketing strategy; this chapter focuses on how
firms use that strategy to identify the target
markets they will serve.
9-5: Step 1: Establish Overall Strategy or
Remind students that any strategy must be
consistent with the firm’s mission statement and
be based on the current assessments from
SWOT analyses
9-6: Step 2: Describe Segments Group activity: Divide the class into groups.
Have them choose either a manufacturer or
national retailer.
Have them describe their segmentation strategy
and then evaluate whether or not it is the best
segmentation strategy for that firm.
9-7: Geographic Segmentation Geographic information software (GIS) aids in
such segmentation.
Many firms use regional brands of popular
When Dunkin’ Donuts introduced soup to its
menu, it included New England Clam Chowder
which appealed to northeastern consumers, but
franchisees in Texas objected to this choice.
Understanding regional preferences can define a
company’s success — or failure.
Ask students: How can firms successfully
change a regional brand into a national brand?
This will tie to the previous chapter on global
marketing – should they adapt to local tastes?
9-8: Demographic Segmentation This web link is to the U.S. Census Bureau.
They provide one of the most important
marketing research tools: Census data, which
offer a rich, free source of information about
various consumers that, suggests segmentation
On the Census Bureau Website, walk students
through the information available about the zip
code in which your university is located.
9-9: Google’s Project Glass Ask students What segments are Google
targeting with this ad?
Ask students Should Google make their
Glasses compatible with the iPhone as well as
Android phones? Why or why not?
YouTube link: http://www.youtube.com/watch?
9-10: Psychographic Segmentation Not just businesses segment their customers;
segmentation also helps organizations that
counsel drug addicts or other at-risk groups.
Recall the discussion during the last presidential
election about hockey moms”—middle-class,
educated, married women concerned about
various threats to their children.
Group Activity: Divide students into groups.
Have each choose a product/service they like.
Have them describe users of that product/service
in terms of psychographics.
9-11: VALS Framework Click on the VALS hyperlink and take the
survey as a class.
Group activity: Students complete the VALS
survey individually, and then bring their
completed survey to class.
Ask students: Why might you fall into similar
categories? Who fell into different categories?
For example, few business students likely
belong to the Believers category, but art majors
very well may.
9-12: Geodemographic Segmentation Click on the Claritas link and conduct the You
Are Where You Live” exercise with the zip
codes of the students’ hometowns.
Ask students: Describe your neighborhood.
How accurately does the site depict your
9-13: State Farm Not Insuring Mississippi Ask students when geographic segmentation is
not legal or ethical.
You can play this video about State Farm
refusing to insure Mississippi.
Note: Please make sure that the video file is
located in the same folder as the PowerPoint
9-14: Benefit Segmentation Group activity: Have students identify products
that provide each type of benefit.
How else might these products be segmented?
This activity provides a good opportunity to
remind students that products exist in multiple
segments, just as consumers do.
Different motives lead different consumers to
purchase the same product.
9-15: Behavioral Segmentation Firms encourage loyalty in various ways, such
as airline mileage or hotel point reward
Ask students: Are you a loyal buyer of any
single product, to the extent that you refuse to
purchase a substitute?
Students may refer to soft drinks, but true brand
loyalty is extremely rare.
9-16: Check Yourself 1. Geographic, Demographic, Psychographic,
Geodemographic, benefit, and Behavioral.
9-17: Step 3: Evaluate Segment
Marketers first must determine whether the
segment is worth pursuing, using several
descriptive criteria:
Is the segment identifiable, substantial,
reachable, responsive, and profitable?
9-18: Identifiable Ask students: When would these women all be
in the same segment?
When would they be in different segments?
These women would appear in the same
segment if the segmentation variable were
gender but in individual segments based on race
or lifestyle.
They also may be in different geographic or
income segments, for example.
9-19: Substantial Just because a firm can find a market does not
necessarily mean it represents a good market.
But size in terms of number of people is not the
only consideration; despite its small size, the
market for the original Hummer was incredibly
profitable, and therefore was substantial
9-20: Reachable The Internet has enabled more people to be
reached more easily, but various areas around
the world simply cannot be served because they
aren’t accessible to marketing messages or
because there isn’t adequate distribution.
Ask students: What types of media influence
the way they shop?
The answer may lead to an interesting
discussion about how difficult it is to reach
Generation Y customers either because they
don’t participate in traditional media such as
newspapers or because they are skeptical about
being influenced by commercial messages.
9-21: Responsive Group activity: Nike is very successful at
selling sports related goods. Would consumers
accept personal care products from Nike? Why
or why not? Develop a list of potential products
for Nike.
Ask students: Are any of the following
acceptable: cologne, deodorant, toothpaste, or
hair gel. Why or why not? What about Nike
towels, sheets, or pajamas?
What differences can you identify between these
two types of product categories? Students are
likely to say they will not understand the value
proposition and the company’s expertise. Yet
other students might say that they will believe in
personal care product because Nike offers
superior products.
9-22: Profitable A hot segment today may not last long enough
to make it worth investment.
Many firms are investigating when and how
much to invest in the Millennial/GenY
generational cohort.
Firms in financial services and housing
understand that it provides a new potential
market, but the debt levels this segment carries
makes it difficult to target effectively.
9-23: Profitable Segments Children under 15 represent a very profitable
market segment as this example illustrates.
9-24: Step 4: Selecting a Target Market Hallmark looks at geographic segmentation
when building new stores.
They also use benefit segmentation for their
online cards.
In general, a company matches their
competencies with the attractiveness of target
9-25: Segmentation Strategy Ask students: What is an example of a mass
market product? Answer: There are very few
mass market products.
Even commodity goods such as flour are now
Ask students: What are examples of products
that use differentiated, concentrated, and
micromarketing segmentation strategies?
Differentiated = Coca Cola
Concentrated = Helena Rubenstein or Clinique
Microtargeting = Financial Services Providers
9-26: Step 5: Identify and Develop
Positioning Strategy
Positioning strategies generally focus on either
how the product or service affects the consumer
or how it is better than competitors’ products
and services.
When positioning against competitors, the
objective is to play up how the brand being
marketed provides the desired benefits better
than do those of competitors.
Firms thus position their products and services
according to value, salient attributes, and
symbols, and against competition.
9-27: Circles for a Successful Value
Ask students how is this positioning? They
should say salient attributes and competition.
9-28: Circles for a Successful Value
Ask students how is this positioning? They
should say salient attributes and competition.
9-29: Positioning Ask students how is this positioning? They
should say salient attributes and competition.
Interesting here that the competition is its own
product – that is the joke of the ads.
9-30: Positioning Steps This slide provides the steps necessary to
develop the positioning map on the next slide.
9-31: Perceptual Maps
9-32: Perceptual Maps
9-33: Perceptual Maps
9-34: Perceptual Maps
9-35: Perceptual Maps
9-36: Perceptual Maps This perceptual map was created by the process
on the previous pages.
It was for Gatorade which was seeking a
positioning of healthy and sweet taste.
9-37: Check Yourself 1. A perceptual map displays, in two or more
dimensions, the position of products or
brands in the consumers mind.
2. Determine consumers perceptions and
evaluations of the product or service in
relation to competitors’, identify
competitors positions, determine
consumer preferences, select the position,
monitor the positioning strategy.