978-1259709074 Chapter 9 Part 2

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Chapter 9 – Segmentation, Targeting, and Positioning Marketing 6th

McGraw-Hill Education.

Chapter Case Study: Mercedes-Benz

1 What are the main ways Mercedes-Benz segments its customers? Are there any other

methods in this chapter that it might use?

Mercedes-Benz uses various segmentation strategies:

2 How can Mercedes-Benz position itself effectively to appeal to consumers who are (a) men, (b)

younger than 30, (c) from China, or (d) very wealthy?

(a) Men

Mercedes-Benz is offering a car for men who have a desire for individuality and refined taste. The brand

is positioned as being more sophisticated than other luxury car manufacturers. Mercedes–Benz is

positioned for those upper-income men who see themselves as the “discerning few” who value style,

class, and distinction.

(b) Younger than 30

in China by the Beijing-Benz joint venture.

(d) Very wealthy

legroom for the passengers wealthy enough to ride in the back.

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 as 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 (fast-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.

Chapter 9 – Segmentation, Targeting, and Positioning Marketing 6th

McGraw-Hill Education.

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. Providing additional exercises, such as having students research advertisement

campaigns on the web, then determining if they are differentiated, undifferentiated, concentrated, or

micromarketing segmentation strategies, will help them to better understand that the strategy is based on

the target market characteristics not the product.

Connect Activities

Activity

Type

Learning Objectives 09–

Segmentation: The College Food Industry

Case Analysis

Segmentation, Targeting, and Positioning Process

Click & Drag

McDonald’s: Segmentation, Targeting, and Positioning

Video Case

Thermos: Effective Market Segmentation

Video Case

Mercedes-Benz

Case Analysis

Zipcar: Segmentation

Video Case

ISeeIt Video Case: Segmentation Process

Video Case

Segmentation: The College Food Industry

▪ Activity Type: Case Analysis

▪ Learning Objectives: 09-01, 09-02, 09-03, 09-05

▪ Difficulty: Medium

▪ Activity Summary: A short case discusses a segmentation effort undertaken by Sodexho for its

campus food service business. Students answer questions applying chapter concepts to the case.

Activity

▪ Introduction: Sodexho USA’s Campus Services Division offers a broad range of service styles, price

points, and menu selections with customizable options to suit the needs of different groups. These

innovative food programs are the result of extensive research into student dining trends and

preferences and are designed to better serve the company’s food service markets.

▪ Concept Review: Firms choose from various segmentation methods based on the type of

goods/services offered and on their segmentation goals. Many firms use basic demographic or

geographic variables as a segmentation tool to identify a target market, but if a firm wishes to dig

deeper into why customers might purchase a product, the firm might also wish to investigate lifestyle,

loyalty, or benefit segmentation. There are many segmentation tools that firms can use to best

identify a market that will be responsive to their product offerings.

Chapter 9 – Segmentation, Targeting, and Positioning Marketing 6th

McGraw-Hill Education.

Follow-Up Activity

Class discussion: What segmentation methods might you use to segment the market for food service on

this campus? What segments would you expect to find to be the largest?

Segmentation, Targeting, and Positioning Process

▪ Activity Type: Click & Drag

▪ Learning Objectives: 09–01

▪ Difficulty: Medium

▪ Activity Summary: The student classifies different activities conducted in a shampoo segmentation

study according to the step of the STP process they represent.

Activity

▪ Introduction: France-based L’Oreal has seized the opportunity to pursue the customer segment

interested in natural/organic products with its Garnier Fructis line of shampoos and conditioners that

are made from fruit and vitamin extracts. Read about L’Oreal’s strategy and assemble the STP

Process stages as instructed.

▪ Concept Review: Firms choose from various methods of segmenting the market on the basis of the

types of goods/services they offer and their goals for the segmentation strategy. Firms assess

whether a segment is worth pursuing by determining whether the customer is identifiable and whether

the segment is substantial, reachable, and profitable. Firms then position their products according to

value, attributes, use, or competitive edge.

Follow-Up Activity

Class discussion or writing prompt: Visit the Garnier Fructis website

(http://www.garnierusa.com/_en/_us/fructis/#home). Does the website look like it does a good job of

communicating the “natural, healthy products” message? Why or why not?

McDonald’s: Segmentation, Targeting, and Positioning

▪ Activity Type: Video Case

▪ Learning Objectives: 09-01, 09-02, 09-03, 09-04, 09–05

▪ Difficulty: Medium

▪ Activity Summary: This video case discusses how McDonald’s approaches segmentation. After the

video ends, students are asked questions about the video and related course concepts.

Chapter 9 – Segmentation, Targeting, and Positioning Marketing 6th

McGraw-Hill Education.

Activity

▪ Introduction: McDonald’s identifies the various groups of fast food customers that would respond

similarly to its marketing efforts. These are known as market segments. After evaluating each

segment’s attractiveness, McDonald’s must choose one or more segments to target with its marketing

mix.

▪ Concept Review: A company could make one type of product and hope that every consumer would

buy it, but that would be a mistake. A better approach is to analyze the market to determine the

different types of products people want and then to offer products that cater to the wants of specific

groups. But it is not enough just to make the product. Companies must position their products in the

minds of their target market so that those consumers understand why a particular product beats the

competition when it comes to meeting their needs.

▪ Video: The video is presented to the student below the introductory information. The video plays

embedded on the page, after which questions are presented.

Follow-Up Activities

Class discussion or writing prompt: McDonald’s primarily uses demographic segmentation methods to

form its consumer segments. Suppose they segmented their market using psychographic methods

instead. Describe some psychographic segments McDonald’s might choose to target, and identify some

products they might offer to these segments.

Segmentation: Thermos

▪ Activity Type: Video Case

▪ Learning Objectives: 09-01, 09-02, 09-03, 09-04

▪ Difficulty: Medium

▪ Activity Summary: This video case explains Thermos’ differentiated segmentation strategy. After the

video ends, students are asked questions about the video and related course concepts.

Activity

▪ Introduction: Thermos is the global market leader in insulated food and beverage containers. Since

its founding in 1904, the company has developed thousands of products. With such an extensive

product line, it’s important for Thermos to be able to target its products to specific consumer

segments.

▪ Concept Review: Effective segmentation, targeting, and positioning (STP) are critical to a firm’s

success. First, firms use a variety of methods to segment their markets. Then the segments have to

be evaluated on their attractiveness—should the firm pursue them with a market offering? In choosing

which segments to serve, there are several targeting strategies that can be used. Firms must then

determine and communicate their value proposition to provide buyers with reasons to purchase the

product. The overall positioning strategy must carefully consider the brand in relation to competitor’s

offerings. As discussed in Chapter 2, the STP process is the third step in the overall strategic

marketing plan.

Chapter 9 – Segmentation, Targeting, and Positioning Marketing 6th

McGraw-Hill Education.

▪ Video: The video is presented to the student below the introductory information. The video plays

embedded on the page, after which questions are presented.

Follow-Up Activities

Visit the Thermos website (http://thermos.com) and notice the features that show how they have

implemented their segmentation strategy. The “Thermos Stories” section is particularly helpful. Also,

review their Facebook page.

Mercedes-Benz

▪ Activity Type: Case Analysis

▪ Learning Objectives: 09-01, 09-02, 09-03, 09-05

customer segments. This activity is important because it is essential for marketers to understand the

strategic importance of market segmentation. The goal of this exercise is to apply frameworks from

the segmentation, targeting, and positioning (STP) process to some of the activities undertaken by

Mercedes-Benz.

Zipcar: Segmentation

▪ Activity Type: Video Case

▪ Learning Objectives: 09-01, 09-02, 09-03

▪ Difficulty: Medium

▪ Activity Summary: Zipcar, the car sharing service, serves three distinct customer segments with its

offerings. The video case describes the three segments and explains some marketing activities

targeting each segment. After the video ends, students are asked questions about the video and

related course concepts.

Activity

▪ Introduction: The Zipcar car sharing service relies on careful segmentation of its market in order to

ensure that the company’s marketing tactics serve the markets well. Car sharing appeals to several

different market segments; the video describes these segments and explains how Zipcar strives to

serve each one. This activity is important because effective segmentation is the cornerstone of a

successful marketing strategy. The goal of this exercise is to test your understanding of

segmentation, targeting, and positioning by applying these concepts to the Zipcar example.

Chapter 9 – Segmentation, Targeting, and Positioning Marketing 6th

McGraw-Hill Education.

▪ Video: The video is presented to the student below the introductory information. The video plays

embedded on the page, after which questions are presented.

Follow-Up Activity

As a class or in small groups, differentiate between the Urbanites and the Urban Boomers. What

differences between these segments have caused Zipcar to treat these as two different segments,

instead of combining them as a single segment of urban users?

ISeeIt Video Case: Segmentation Process

▪ Activity Type: Video Case

▪ Learning Objectives: 09-01, 09-05

▪ Difficulty: Easy

▪ Activity Summary: This video case looks at segmentation issues among car buyers.

Activity

▪ Introduction: Organizations segment markets so they can respond more effectively to the wants of

potential buyers and increase overall sales and profits. By identifying similarities between customers,

businesses can identify their specific needs, take steps to segment and target markets, and then

execute a marketing program based upon the dynamics of product, price, promotion and place. You

can find segmentation in action as Justin begins his process of deciding which new vehicle is right for

him. Marketers must know and understand what customers like Justin are looking for when they

develop and market their vehicles. Using a perceptual map, they map the characteristics customers

like Justin place emphasis on, such as practicality (good mileage and economical) and style (good

looks and cool extras). Then they create products that are attractive and develop marketing

messages that customers like Justin will respond to. While Justin makes the final decision based

upon what is important to him, marketers make sure they have developed their brands and products

to make their vehicles attractive to specific market segments.

▪ Video: The video is presented to the student below the introductory information. The video plays

embedded on the page, after which questions are presented.