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Chapter 9 - Segmentation, Targeting, and Positioning Marketing 6th
Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
8
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
(c) China
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
Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
9
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-
01
02
03
04
05
Segmentation: The College Food Industry
Case Analysis
X
X
X
X
Segmentation, Targeting, and Positioning Process
Click & Drag
X
McDonald’s: Segmentation, Targeting, and Positioning
Video Case
X
X
X
X
X
Thermos: Effective Market Segmentation
Video Case
X
X
X
X
Mercedes-Benz
Case Analysis
X
X
X
X
Zipcar: Segmentation
Video Case
X
X
X
ISeeIt Video Case: Segmentation Process
Video Case
X
X
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
Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
10
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
Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
11
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
Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
12
▪ 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
Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
13
▪ 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.
