Chapter 06 – Targeting Attractive Market Segments
End of Chapter Discussion Questions and Answers
1. Extensive market segmentation is a relatively recent phenomenon. Until about the
middle of the 20th century many firms offered a single basic product aimed at the
entire mass market (such as Coca-Cola or Levi jeans). But in recent years many firms
—including industrial goods manufacturers and services producers as well as
consumer products companies—have begun segmenting their markets and developing
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manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
Chapter 06 – Targeting Attractive Market Segments
different products and marketing programs targeted at different segments. Which
environmental changes have helped spark this increased interest in market
segmentation? What advantages or benefits can a firm gain from properly segmenting
its market?
Answer:
Student answers may vary. Answers should include elements such as:
2. Exactly what is the relationship between market segmentation, target marketing, and
positioning? What damage will be done to a company’s target marketing and
positioning efforts if markets are incorrectly or not effectively or insightfully
segmented?
Answer:
Student answers may vary. Answers should include elements such as:
Market segmentation is the process by which a market is divided into distinct subsets of
Target marketing requires evaluating the relative attractiveness of various segments in terms
Brand positioning entails designing product offerings and marketing programs that can
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© 2014 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.
Chapter 06 – Targeting Attractive Market Segments
3. Can market segmentation be taken too far? What are the potential disadvantages of
oversegmenting a market? What strategy might a firm pursue when it believes that the
market has been broken into too many small segments?
Answer:
Student answers may vary. Answers should include elements such as:
4. What is the difference between a growth-market targeting strategy and a niche
targeting strategy? What capabilities or strengths should a business possess to
implement a growth-market targeting strategy effectively?
Answer:
Student answers may vary. Answers should include elements such as:
Growth market strategy: Businesses pursuing a growth-market strategy often target one or
Niche market Strategy: This strategy involves serving one or more segments that, while not
A growth-market strategy usually requires strong R&D and marketing capabilities to
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© 2014 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.