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Chapter 9 - Segmentation, Targeting, and Positioning M: Marketing 6th
Copyright © 2019 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
1
Instructor’s Manual: Implementation
Guide
This improved Instructor’s Manual (IM) contains more than just summaries of key concepts and features
from the sixth edition of M: Marketing that can be used as springboards for class discussion; it also
provides best practices for how to utilize the full product suite (from the textbook to SmartBook® to
Connect®). In addition, this manual includes a variety of supplemental teaching resources to enhance
your ability to create an engaging learning experience for your students. Regardless of whether you teach
in face-to-face traditional classrooms, blended (flipped) classrooms, online environments, or hybrid
formats, you’ll find everything you need in this improved resource.
The IM follows the order of the textbook outline for each chapter and is divided into sections for each
learning objective. To ease your class preparation time, we’ve included references to relevant PowerPoint
slides that can be shown during class. Note that you can adjust slides as needed to ensure your students
stay actively engaged throughout each session.
AVAILABLE INSTRUCTOR RESOURCES
Within the Instructor Resources Tab, located in the Connect® Library, you will find the following
Instructor Resources:
▪ Instructor’s Manual
▪ PowerPoint Presentations (Accessible)
▪ Test Bank
▪ Author Newsletter Blog
▪ Video Library
▪ Connect Content Matrix
Instructor’s Manual
This Instructor’s Manual is posted by chapter. Within each section of the IM you will find an assortment
of feature summaries, examples, exercises, and Connect® Integration assignments intended to enhance
your students’ learning and engagement.
Chapter 9 - Segmentation, Targeting, and Positioning M: Marketing 6th
Copyright © 2019 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
2
PowerPoint Presentations
A set of ADA-accessible PowerPoints is available with each chapter and covers:
▪ Chapter Learning Objectives
▪ Key examples
▪ Key exhibits
▪ Key concepts and frameworks
▪ Progress checks
▪ Glossary terms
Some slides include teaching notes to guide your discussion of the content that appears on each slide.
Test Bank
Test Bank questions are posted by chapter. You will find a variety of question types within the test bank
such as Matching, Ranking, Multiple Choice, Select-All-That-Apply, True/False, Short Answer, and Essay
to test student mastery across Bloom’s Taxonomy (i.e., Understand, Apply, and Analyze). Due to the
evolving needs around generating high-quality print test experiences, McGraw-Hill Education provides a
free copy of the industry-leading test generation software TestGen® to users (more details can be found
within the Instructor Resources tab under “Test Bank”). Furthermore, due to its limitations to function with
the latest browsers and operating systems, McGraw-Hill Education has discontinued EZ-Test Online.
Some of the robust new features present in TestGen®, include:
▪ Cross-platform software compatibility with Windows and Mac
▪ Multiple LMS export formats, including Blackboard, Moodle, Desire2Learn, and Sakai
▪ Highly customizable formatting and editing option
Video Library
The Video Library provides links to all the assignable videos in Connect®, as well as legacy videos that
are no longer available as assignments, but that remain available as an additional resource. These videos
can be directly streamed from within the library that is located in the Instructor’s Resource tab.
Accompanying each video is a brief video guide that summarizes the key concepts of the video.
Chapter 9 - Segmentation, Targeting, and Positioning M: Marketing 6th
Copyright © 2019 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
3
Connect Content Matrix
The Connect Content Matrix provides a brief overview of all the application exercises available in the
course. It lists the Learning Objectives, topic tags, Bloom’s levels, and difficulty levels associated with
each exercise.
Connect®, McGraw-Hill’s online assignment and assessment system, offers a wealth of content for both
students and instructors. Assignable activities include the following:
USING SMARTBOOK® TO ENHANCE STUDENTS’
PERFORMANCE
The LearnSmart®-powered SmartBook® is assignable through Connect. One of the first fully adaptive
and individualized study tools designed for students, it creates for them a personalized learning
experience, giving them the opportunity to practice and challenge their understanding of core marketing
concepts. The reporting tools within SmartBook® show where students are struggling to understand
specific concepts.
Typically, SmartBook® is assigned by module (chapter), and you can set which learning objectives to
cover as well as the number of probes the student will see for each assignment. You can also set the
number of points a SmartBook® module is worth in the course. Usually, applying a minimal number of
points for completion of each module is enough to encourage students to read the chapter. Many
instructors assign these modules to be completed before the class or online session.
SmartBook® provides several diagnostic tools for you to gauge which concepts your students struggle to
understand. Below is the set of adaptive assignment reports available in SmartBook®:
▪ Progress Overview: View student progress broken down by module
▪ Student Details: View student progress details plus completion level breakdown for each module
▪ Module Details: View information on how your class performed on each section of their assigned
modules
▪ Practice Quiz: This gives you a quick overview of the quizzes results for your students
▪ Missed Questions
▪ Metacognitive Skills
The Module Details report shows you the results for the students in the class overall. These details reveal
where in the chapters students might be struggling. The module gives the chapter section, average time
spent, average questions per student correct/total, and the percentage of correctness (based in number
of assigned items). Information about the most challenging sections for students can help you refine the
focus of the next face-to-face, hybrid, or online session.
Chapter 9 - Segmentation, Targeting, and Positioning M: Marketing 6th
Copyright © 2019 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
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The Metacognitive Skills report captures students’ confidence in their competency of the materials. Below
you will find a recreation of the Metacognitive Skills report. In it, you can see that the second student is
confident and mostly correct (see the 91% in the Correct and Aware column) while the first student
“doesn’t know what she doesn’t know” (see the 39% in the Incorrect and Unaware column).
STUDENT
CORRECT
and
AWARE
CORRECT and
UNAWARE
INCORRECT
and AWARE
INCORRECT
and UNAWARE
Student 1
61%
0%
0%
39%
Student 2
91%
0%
3%
5%
Student 3
81%
0%
0%
19%
Student 4
83%
0%
0%
17%
Student 5
76%
0%
3%
21%
Student 6
66%
0%
9%
25%
Student 7
77%
0%
3%
12%
Student 8
91%
0%
2%
7%
Student 9
93%
0%
2%
5%
Student 10
70%
0%
6%%
25%
APPLICATION EXERCISES, QUIZZES, AND TEST BANK
Book-level Resources
Application Exercises require students to apply key concepts to close the knowing and doing gap; they
provide instant feedback for the student and progress tracking for the instructor. Before getting into
chapter-level assignments, let’s first look at the book-level assignments available.
Three exercise types are available for instructors to assign beyond the chapter materials. These are 1)
Marketing Plan Prep Exercises, 2) Marketing Analytics Exercises, and 3) Marketing Mini Simulation.
1) Marketing Plan Prep exercises use guided activities and examples to help students understand
and differentiate the various elements of a marketing plan.
2) Marketing Analytics exercises are data analytics activities that challenge students to make
3) Marketing Mini Simulation helps students apply and understand the interconnections of
elements in the marketing mix by having them take on the role of Marketing Manager for a
backpack manufacturing company. The simulation can be assigned by topic or in its entirety.
Chapter-level Resources
Chapter-level Application Exercises are built around chapter learning objectives, so you can choose
which ones to assign based on your focus for each specific chapter. Several types of Application
Exercises are available in each chapter. These are 1) iSeeit! Animated Video Cases, 2) Case Analyses,
Chapter 9 - Segmentation, Targeting, and Positioning M: Marketing 6th
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McGraw-Hill Education.
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Chapter 9
Segmentation, Targeting, and Positioning
Tools for Instructors
• Chapter Overview
• Brief Chapter Outline
• Learning Objectives
• Extended Chapter Outline
• PowerPoint Slides
• Additional Resources
• Connect Application Exercises
Chapter Overview
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.
Brief Chapter Outline
The Segmentation, Targeting, and Positioning Process
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
LO9-3 Articulate the differences among targeting strategies: undifferentiated, differentiated,
concentrated, or micromarketing.
Chapter 9 - Segmentation, Targeting, and Positioning M: Marketing 6th
Copyright © 2019 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
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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
LO9-4 Determine the value proposition.
A firm’s value proposition communicates the customer benefits to be received from a product or service
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—
Extended Chapter Outline
I. The Segmentation, Targeting, Positioning Process (PPT 9-04)
A. Step 1: Establish the Overall Strategy or Objectives (PPT 9-05)
B. Step 2: Use Segmentation Methods (PPT 9-06)
1. Geographic Segmentation (PPT 9-07)
2. Demographic Segmentation (PPT 9-08)
3. Psychographic Segmentation (PPT 9-10, 9-11)
Chapter 9 - Segmentation, Targeting, and Positioning M: Marketing 6th
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Ethical & Societal Dilemma 9.1 Using Antibiotics Proudly: Sanderson Farms Distinguishes Its
Brand by Going against the Grain discusses how Sanderson Farms targets consumers whose self-
values prioritize saving money rather than worrying about antibiotic use. Do students think this is a
successful strategy? What are the characteristics of the consumer that Sanderson Farms is targeting?
5. Behavioral Segmentation (PPT 9-13)
a. Occasion
b. Loyalty
Marketing Analytics 9.1: A Complete Ecosystem for Coffee Drinkers: The Starbucks Mobile Plan
discusses the My Starbucks Reward program, which has more than 9 million members. Ask if any
students are a member of this program. Why or why not? Has this program increased their Starbucks
consumption?
6. Using Multiple Segmentation Methods (PPT 9-14)
1. What are the various segmentation methods?
1. Identifiable (PPT 9-17)
Adding Value 9.1: Symbiosis in Your Stay: How Hotels Leverage Their Proximity to Universities
details how hotels target different visitors to universities. Ask students if they are aware of any similar
efforts by hotels near their school. How would they target parents visiting for parents’ weekend versus
football fans in town for a big game?
2. Substantial (PPT 9-18)
4. Responsive (PPT 9-20)
1. Undifferentiated Targeting Strategy, or Mass Marketing
3. Concentrated Targeting Strategy
Adding Value 9.2: Are We Still Having Fun? Under Armour’s Grueling Advertising Campaign for
4. Micromarketing
Chapter 9 - Segmentation, Targeting, and Positioning M: Marketing 6th
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Connect Application Exercises
This section summarizes each Application Exercise available with this chapter. Each summary comprises
an introduction to the exercise, concept review, and follow-up activity. Associated details related to the
learning objectives, activity type, AASCB category, and difficulty levels are also included. These
summaries are intended to guide your course planning; perhaps you want to assign these exercises as
homework or practice, before or after class. For best practices on how and when to assign these
exercises, see the IM Implementation Guide at the beginning of this chapter.
Activity
Type
Learning Objectives 09-
01
02
03
04
05
Segmentation: The College Food Industry
Case Analysis
X
X
X
X
Methods for Segmenting Markets
Click & Drag
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.
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?
Chapter 9 - Segmentation, Targeting, and Positioning M: Marketing 6th
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Methods for Segmenting Markets
▪ Activity Type: Click & Drag
▪ Learning Objectives: 09-01
▪ Difficulty: Medium
▪ Activity Summary: The student classifies different products and services according to the
segmentation method that would make the most sense when segmenting the market for the product
or service.
Activity
▪ Introduction: There is no single best way to segment a market. Firms choose methods based on the
type of goods/services they offer and on their goals. For instance, if the firm wants to identify its
customers easily, geographic or demographic segmentation likely will work best. But if it wishes to dig
deeper into why customers might buy its offering, then lifestyle, benefits, or loyalty segmentation are
more appropriate. Geodemographic segmentation provides a blend of geographic, demographic, and
psychographic approaches. Typically, a combination of several segmentation methods is most
effective.
▪ 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.
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.
Chapter 9 - Segmentation, Targeting, and Positioning M: Marketing 6th
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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.
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
Chapter 9 - Segmentation, Targeting, and Positioning M: Marketing 6th
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▪ 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.
▪ 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
▪ 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
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.
Chapter 9 - Segmentation, Targeting, and Positioning M: Marketing 6th
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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.
▪ 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
Chapter 9 - Segmentation, Targeting, and Positioning M: Marketing 6th
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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.
