Chapter–by–chapter aids: Chapter 4
Video Case 4: Potbelly Sandwich
This video summarizes the marketing strategy of Potbelly Sandwich Works, Inc. along the 4Ps and
features interview footage with Bryant Keil, Chairman and CEO of the company. Chicago–based Potbelly
Sandwich Works, Inc. is a chain of sandwich shops that competes in the Quick Serve segment of the
restaurant industry. Billed as a unique and “quirky” sandwich joint, Potbelly has strong appeal to young
urban professionals. This video case allows for a discussion of positioning and segmentation. For more
details, see the Video Instructor’s Manual on the Instructor’s Resource CD or the Instructor Side of the
Online Learning Center (www.mhhe.com/fourps).
Video Case 7: Invacare
The Invacare Corporation produces home medical equipment for the domestic market as well as select
global markets. Some of the manufacturing is in USA facilities, including a factory at the main
headquarters in Elyria, Ohio and the HomeFill oxygen concentrator production plant in Florida. The case
provides an interesting context on which to discuss segmentation within the disabled consumer market.
For more details, see the Video Instructor’s Manual on the Instructor’s Resource CD or the Instructor Side
of the Online Learning Center (www.mhhe.com/fourps).
Video Case 8: Segway
This video tells the Segway story and discusses the marketing strategies pursued by Segway Inc. since
the introduction of the Segway® Personal Transporter (PT) on ABC’s “Good Morning America” in 2001.
The Segway story begins in 1999 when inventor Dean Kamen saw a young man in a wheelchair struggle
to get over a curb and recognized a need for a better product. The video case includes many interesting
segmentation and targeting issues that could be discussed. For more details, see the Video Instructor’s
Manual on the Instructor’s Resource CD or the Instructor Side of the Online Learning Center
(www.mhhe.com/fourps).
CHAPTER 4 – COMMENTS ON USE OF ETHICS QUESTION WITH THIS CHAPTER
You just started your dream job as marketing manager for Appy Day Games (ADG). You are their sixth
and latest employee, and the first dedicated to marketing. ADG’s games are fun, easy–to–learn, and sell
stored in the phones, would be sent back to DataMatic, which would package and sell it to its customers
who are looking for leads. DataMatic’s offer would instantly make ADG profitable. DataMatic says its
software already resides on half the games on the “App Store Top 50” anyway. Rachel likes the idea and
figures that if it’s legal and everyone else does it, why shouldn’t ADG? What do you think of DataMatic’s
proposal? Would you advise Rachel to accept the offer? Why or why not?
A Wall Street Journal article, “How Kid Apps Are Data Magnets” (June 27, 2013), inspired this ethics
exercise. This ethics exercise is designed to force students to grapple with issues around privacy. Many
firms are finding that collecting customer data can be more valuable than collecting payment from
customers. So they give away games or apps that track customer behavior – which they sell to other
firms. Much of the activity – at the time of this writing – is legal. It does raise important ethical questions
that an instructor can examine with this exercise.
Part IV
The Marketing Plan Coach software on the text website includes a sample marketing plan for Hillside
Veterinary Clinic. Look through the “Customers” section.
a. How does the marketing plan segment the market?
b. Can you think of other segmentation dimensions that could be used?
c. What do you think of the approach Hillside used to determine the target markets? Are they using
a single–target market, multiple target market, or combined target market approach?
Chapter–by–chapter aids: Chapter 4
Chapter–by–chapter aids: Chapter 4
Chapter–by–chapter aids: Chapter 5
(relevant to a purchase) and logically compare choices in terms of cost and value to get the
greatest satisfaction from spending their time and money. Thus, its focus is often on economic
needs such as economy of purchase or use, convenience, efficiency in operation or use,
dependability in use, or improvement in earnings.
Students are likely to give a wide variety of examples of purchases – both those that seem to
be consistent with the economic buyer model and those that are not. The amount of
purchases are made more or less habitually – especially once a satisfactory alternative has
been found. For such purchases, most consumers see the cost of searching for more
information as too high relative to its potential value.
Some students may realize that “economic buyer” comparisons are usually easier to make
when the alternative ways of meeting a need are comparable. For example, it may be easier to
HDTV model, or perhaps a thin LCD model, was worth the difference in price. Evaluating the
difference in price and features might be made even more difficult by uncertainty about how
prices will change in the future and/or how quickly more HD broadcasts become available.
Student examples will often highlight purchases where economic buyer type comparisons don‘t
seem sensible – or perhaps even feasible. For example, a purchase of a particular CD may be
This question can also provide the basis for some forward integration – setting the stage for
the consumer product classes developed and explained in detail in Chapter 8.
5- 2. See section “Psychological Influences within an Individual” for a discussion of the PSSP
needs. Getting the students to illustrate these needs in their own particular cases will deepen
their understanding of this important concept. Then, going on to show that economic needs
5- 3. The instructor might have several students discuss their ads in class – and then attempt to
develop some generalizations as to whether magazine or newspaper advertisers appeal more
to basic or economic needs. Chances are the magazine advertising will appeal more to basic
needs. Newspaper advertising, which is usually more concerned with immediate results, will
Part IV
respect to the use of needs for different classes of products. This discussion can anticipate our
later discussion of the material on Product and Promotion. At this stage, it is only important that
5- 4. See section “Psychological Influences within an Individual” with respect to the relation of
drives, cues, responses, and reinforcement. Clearly, understanding learning processes would
affect promotion planning – developing and then placing cues in appropriate places to
5- 5. Students can be expected to respond to this question in different ways – and that is part of the
purpose of the question. The point is to prompt each student to think more deeply about the
concepts involved: beliefs, attitudes, and intentions. For example, most students believe that
compact fluorescent light (CFL) bulbs save them money or are good for the environment, but
perhaps just mirrors the general population: studies show that in 2008 only about 20 percent of
light bulbs sold are CFLs. One way to provide some variation to this question in a class
discussion is to ask how intentions might change if a student knew how much money could be
benefits.
5- 6. Student answers to this question will vary. The purpose of the question, however, is to prompt
students to think more deeply about how satisfaction/dissatisfaction may be related to
expectations – and how such expectations are formed in the first place.
This question opens the door for an interesting discussion of how changing expectations can
make the marketing job a challenge. For example, a few years ago consumers expected cars
to be unreliable and to need tune–ups and frequent service. Now, many cars can go 100,000
miles without a tune–up – and their promotion brags about it. On the other hand, promotion that
It also allows for a deeper discussion of trust and how trust is formed and linked to
expectations. Trust is a key term in this chapter, and we define it as “the confidence a person
5- 7. See section “Psychological Influences within an Individual” regarding definitions of
psychographics and lifestyle analysis. In order to understand college students and plan a
marketing strategy to reach them, it might be possible to segment the college market based on
the activities, interests, opinions, and demographics of submarkets. Some might be easily
market segment. Further, the AIO approach may help one learn more about potential
customers by asking many questions.
5- 8. Students will have varied responses to this question, perhaps in part because of differences in
awareness of Hispanic people. There is no right answer to this question, but rather it is
intended to prompt students to think about how culture is pervasive in everyday activities such