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9-1: Check Yourself 1. Geographic, Demographic, Psychographic,
Geodemographic, Bene ts, and Behavioral.
9-2: Step 3: Evaluate Segment
A(rac)veness
Marketers first must determine whether the
segment is worth pursuing, using several
descriptive criteria:
Is the segment identifiable, substantial, reachable,
responsive, and profitable?
9-3: Iden) able 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.
9-4: 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.
9-5: 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.
9-6: 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.
9-7: Pro table 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.
9-8: Pro table Segments Children under 15 represent a very profitable
market segment as this example illustrates.
9-9: 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
markets.
9-10: 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
differentiated.
Ask students: What are examples of products
that use differentiated, concentrated, and
micromarketing segmentation strategies?
Differentiated = Coca Cola
Concentrated = Helena Rubenstein or Clinique
Micromarketing = Financial Services Providers
9-11: Step 5: Develop Posi)oning
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, symbols,
and against competition.
9-12: Circles for a Successful Value
Proposition
Ask students: How is this positioning?
The best situation is if a firm’s product or service
offering overlaps with customer needs and wants
but suffers no overlap with competitors’
offerings.
It likely would not be sustainable because
competitors would attempt to copy the important
product or service attributes and therefore begin
to encroach on the firm’s value proposition.
9-13: Circles for a Successful Value
Proposition
The intersection of customer needs, the benefits
provided by our focal firm, and the benefits
provided by a competing firm reveal seven
specific spaces where a product or service might
be located.
9-14: Posi)oning Ask students: How is this positioning?
9-15: Posi)oning Steps This slide provides the steps necessary to develop
the perceptual map on the next slide.
9-16: Perceptual Maps Basic perceptual map showing dimensions.
9-17: Perceptual Maps Dimensions have been identified with brand
position marked.
9-18: Perceptual Maps Target market segments are shown with relative
size.
9-19: Perceptual Maps Both brand position and target market segments
are shown.
9-20: Perceptual Maps The desired brand repositioning for Kia Motors is
shown.
9-21: 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.
9-22: Check Yourself 1. A perceptual map displays, in two or more
dimensions, the position of products or
brands in the consumer’s mind.
2. Determine consumers’ perception and
evaluation of the product or service in
relation to compe)tors’, iden)fy compe)tors’
positions, determine consumer preferences,
select the position, and monitor the
positioning strategy.
Additional Teaching Tips
This chapter addresses segmentation strategy—undifferentiated, differentiated, concentrated, and
micromarketing. The student will learn critical thinking skills to 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.
Online Tip: This exercise can be transferred to the online platform where groups are given the
same tasks then asked to post the groups’ results. An ensuing discussion board can then
compare/contrast the various perceptual maps.
The four strategies of undifferentiated, differentiated, concentrated, and micromarketing
should be further explored with critical thinking exercises. Emphasize that it is the approach to
the marketing message in relation to its target market(s) NOT 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.
