978-1259709074 Chapter 9 Lecture Notes

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Chapter 9 - Segmentation, Targeting, and Positioning Marketing 6th
Chapter 9
Segmentation, Targeting, and Positioning
Tools for Instructors
Brief Chapter Outline
Learning Objectives
Extended Chapter Outline with Teaching Tips
Answers to End of Chapter Learning Aids
Chapter Case Study
Additional Teaching Tips
Connect Activities
Brief Chapter Outline
The Segmentation, Targeting, and Positioning Process
End of Chapter Learning Aids
Chapter Case Study: Mercedes-Benz
Learning Objectives
LO9-1 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
LO9-2 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
Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
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Chapter 9 - Segmentation, Targeting, and Positioning Marketing 6th
LO9-3 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
LO9-4 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
LO9-5 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
Extended Chapter Outline with Teaching Tips
I. The Segmentation, Targeting, Positioning Process
A. Step 1: Establish the Overall Strategy or Objectives
B. Step 2: Use Segmentation Methods
1. Geographic Segmentation
2. Demographic Segmentation
3. Psychographic Segmentation
4. Benefit Segmentation
5. Behavioral Segmentation
a. Occasion
Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
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Chapter 9 - Segmentation, Targeting, and Positioning Marketing 6th
b. Loyalty
6. Using Multiple Segmentation Methods
Progress Check: Several questions are offered for students to check their understanding of core
concepts.
1. What are the various segmentation methods?
C. Step 3: Evaluate Segment Attractiveness
1. Identifiable
2. Substantial
3. Reachable
4. Responsive
5. Profitable
D. Step 4: Select a Target Market
1. Undifferentiated Targeting Strategy, or Mass Marketing
2. Differentiated Targeting Strategy
3. Concentrated Targeting Strategy
4. Micromarketing
E. Step 5: Identify and Develop Positioning Strategy
F. Positioning Methods
1. Value Proposition
2. Salient Attributes
3. Symbols
4. Competition
G. Positioning Using Perceptual Mapping
Progress Check: Several questions are offered for students to check their understanding of core
concepts.
1. What is a perceptual map?
2. Identify the six positioning steps.
Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education. 3

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