978-1259709074 Chapter 9 Solutions Manual

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

Answers to End of Chapter Learning Aids

Marketing Digitally

1 Go to http://www.esri.com/library/fliers/pdfs/tapestry_segmentation.pdf, and identify five

segments that you would expect to find in your zip code. Then go to

http://www.esri.com/data/tapestry/zip-lookup, and type in your zip code. Compare the

segments that are found in your zip code with your initial prediction. Are they similar or

different? Discuss the extent to which you believe these are accurate descriptions of the main

segments of people who reside in your zip code.

By looking at their own zip codes, students can get a feel for how accurate Esri is and discover any areas

2 Go to the VALS website (http://www.strategicbusinessinsights.com/vals/

presurvey.shtml), and click on the link to complete the VALS survey. After you submit your

responses, a screen will display your primary and secondary VALS types. Click on the colored

names of each segment to get additional information about them, and print out your results.

Assess the extent to which these results reflect your lifestyle, and identify which

characteristics accurately reflect your interests and activities and which do not.

Marketing Applications

1 What segmentation methods would you suggest for a small entrepreneur starting her own

business selling gourmet chocolates? Justify why you would recommend those methods.

Students must think about the different benefits and trade-offs of the segmentation methods. Descriptions

3 You have been asked to identify various segments in the market and then a potential targeting

strategy. Describe the segments for a pet supply store, and then justify the best targeting

strategy to use.

Students should be able to explain each segmentation strategy and its application.

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

A differentiated segmentation strategy uses several market segments to obtain a bigger share of the

market. The pet supply store might consider this option if it sells supplies for cats and dogs, as well as

4 What types of products would you use demographic segmentation for? How about

psychographic segmentation? Explain how these products differ.

Products where gender plays a very important role in how the firm markets are great for demographic

segmentation.

5 You have been asked to evaluate the attractiveness of a group of identified potential market

segments. What criteria will you use to evaluate those segments? Why are these appropriate

criteria?

The third step in the segmentation process involves evaluating the attractiveness of market segments. To

undertake this evaluation, marketers first must determine whether the segment is worth pursuing, using

several descriptive criteria: is the segment identifiable, substantial, reachable, responsive, and profitable.

6 A small-business owner is trying to evaluate the profitability of different segments. What are

the key factors you would recommend she consider? Over what period of time would you

recommend she evaluate?

At a different level than that in the previous question, students must suggest ways to determine

profitability.

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7 Think about the various soft drinks that you know (e.g., Coca-Cola, Pepsi, 7-Up, Gatorade,

Powerade). How do those various brands position themselves in the market?

Students will choose different beverages and should discuss which of the positioning tools the different

8 Put yourself in the position of an entrepreneur who is developing a new product to introduce

into the market. Briefly describe the product. Then, develop the segmentation, targeting, and

positioning strategy for marketing the new product. Be sure to discuss (a) the overall strategy,

(b) characteristics of the target market, (c) why that target market is attractive, and (d) the

positioning strategy. Provide justifications for your decisions.

This exercise challenges students to proceed through the entire segmentation, targeting, and positioning

process described in the chapter.

For example, the new product is a self-propelled, robotic lawn mower, similar to the robotic vacuum

cleaner that is on the market today.

Overall strategy: Segment the market into those consumers who own homes with lawns and

9 Think of a specific company or organization that uses various types of promotional material to

market its offerings. The web, magazine ads, newspaper ads, catalogs, newspaper inserts,

direct-mail pieces, and flyers might all be sources for a variety of promotional materials.

Locate two or three promotional pieces for the company and use them as a basis to analyze

the segments being targeted. Describe the methods used for segmenting the market reflected

in these materials, and describe characteristics of the target market according to the

materials. Be sure to include a copy of all the materials used in the analysis.

This exercise takes the examination of segmentation, targeting, and positioning one step further to the

actual implementation of the entire process of marketing materials.

A company like Pillsbury uses a variety of promotional materials to sell its products. Three common types

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10 You have been hired recently by a large bank in its credit card marketing division. The bank

has relationships with a large number of colleges and prints a wide variety of credit cards

featuring college logos, images, and the like. You have been asked to oversee the

implementation of a new program targeting first-year college students at the schools with

which the bank has a relationship. The bank has already purchased the names and home

addresses of the incoming class. You have been told that no credit checks will be required for

these cards as long as the student is over 18 years of age. The bank plans a

first-day-of-school marketing blitz that includes free hats, T-shirts, and book promotions, as

well as free pizza, if the students simply fill out an application. Do you think it is a good idea to

target this program to these new students?

What ethical issues might arise from the situation outlined, and to what degree do these issues violate

students’ own ethical standards? Using the ethical decision-making framework discussed in Chapter 4,

students should evaluate their opinion of the practice of marketing credit cards to college freshmen and

thus determine an appropriate course of action.

In applying the ethical decision-making framework:

“Have you thought broadly of any ethical issues associated with the decision to be made?” I have

“Have you involved as many possible people who might have a right to offer input into or have

“Does this decision respect the rights and dignity of the stakeholders?” First-year college students

“Does this decision produce the most good and the least harm to the relevant stakeholders?” The

“Does this decision uphold relevant conventional moral rules?” It likely violates the community’s

“Can you live with this decision alternative?” If the decision is to forgo such marketing to first-year

college students, then yes, I could live with that.

Quiz Yourself

1 For the ______ criteria to be met when evaluating segment attractiveness, the consumer must know

the product or service exists, understand what it can do for him or her, and recognize how to buy it.

a. substantial

b. identifiable

c. reachable

d. responsive

e. profitable

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11 Which step in the STP process develops descriptions of the different segments, which in turn helps

firms better understand the customer profiles in each segment?

a. Establish overall strategy or objectives.

b. Select segmentation method.

c. Develop positioning strategy.

d. Evaluate segment attractiveness.

e. Select target market.

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:

12 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

(b) Younger than 30

Mercedes-Benz is offering a product for the consumer throughout their lives with progressively

(d) Very wealthy

Mercedes-Benz is starting its new Mercedes-Maybach S600 at just under $190,000 to compete in the

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

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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.

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: 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

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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

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

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

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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.

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

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

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

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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

Mercedes-Benz

Activity Type: Case Analysis

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

Difficulty: Medium

Activity Summary: Students read a case describing tactics used by Mercedes Benz to target

different customer segments; then, students answer questions applying chapter concepts to the case.

Activity

Introduction: Mercedes-Benz,a well-known luxury brand, has developed initiatives targeting several

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.

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Activity

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

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

Follow-Up Activity

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

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

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

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