978-1337407588 Chapter 8 Solution Manual Part 2

Unlock access to all the studying documents.

View Full Document

Chapter 8: Segmenting and Targeting Markets

Video Assignment: Numi Organic Tea

1. Jen Mullin, the vice president of marketing for Numi Organic Tea, describes their typical

customer as a female, college-educated tea lover, possibly an “eco-mom.” What type of

market segmentation has she used to identify this customer group?

a. Geographic segmentation

b. Demographic segmentation

c. Ethnic segmentation

d. Psychographic segmentation

2. Another way Numi Organic Tea identifies potential customers is through what they want

from the product; they are looking for organic, fair-trade, premium quality tea, according to

the video. What type of market segmentation is used to identify customers in this way?

a. Geographic segmentation

b. Demographic segmentation

c. Benefit segmentation

d. Usage-rate segmentation

3. True or False? Numi’s marketing plan includes providing opportunities for potential

customers to sample their teas rather than the more traditional print and television

advertising. Using this method, Numi wants to get samples of their tea to a wide variety of

different types of consumers, to attract new customers from many different groups.

4. Because Numi Organic Tea has identified more than one target market, for example,

“eco-moms,” college students, and family travelers, they should be particularly aware of

the _____, which helps explain how consumption patterns differ at different stages

Chapter 8: Segmenting and Targeting Markets

determined by a combination of age, marital status, and the presence or absence of

children.

a. family life cycle

b. 80/20 principle

c. undifferentiated targeting strategy

d. concentrated targeting strategy

5. True or False? When Jen Mullin explains that her company’s tea is sought after as a product

to include in gift bags and other promotional giveaways by companies and other

organizations, she is recognizing the companies who ask Numi to provide tea samples as

optimizers.

6. Mullin talks about _____ the Numi brand, developing a specific marketing mix that will

influence potential customers’ overall perception of the brand, by targeting natural health

food stores, university coffee shops, and fine dining establishments.

a. segmenting

b. satisficing

c. optimizing

d. positioning

7. True or False? To graphically map the “channel conflict” between marketing Numi Tea to

premium spas, hotels, and restaurants and selling the same brand at mass market stores

such as Target, the company could employ perceptual mapping.

8. The demographic variable that Numi Tea marketers were examining when they recognized

Chapter 8: Segmenting and Targeting Markets

that people who had discovered their product at a high-end spa or fine restaurant often

shopped for groceries at Costco was _____.

a. age

b. income

c. ethnicity

d. gender

9. Numi Tea uses premium ingredients to create a premium tea at an affordable price, according

to Jen Mullin. This is a form of _____ that the company uses to distinguish their products

from those of competitors.

a. perceptual mapping

b. one-to-one marketing

c. product differentiation

d. market segmentation

10. Which of the following is the least likely targeting strategy that Numi Tea would select to

market their products?

a. Undifferentiated targeting

b. Concentrated targeting

c. Multisegment targeting

d. Customized targeting

Case Assignment: CEC Entertainment, Inc (Chuck E. Cheese’s)

For more than 35 years, Chuck E. Cheese’s has been one of the nation’s go-to venues for

children’s birthday parties and rainy afternoon outings. Operating under the slogan “Where a kid

Chapter 8: Segmenting and Targeting Markets

“Your average kid who comes to Chuck E. wants to come 11 times a year; they come

To that end, Chuck E. Cheese’s expanded their menu to include items geared to more

advanced culinary tastes. Two new signature pizzas have been added to the lineup. The Cali

Alfredo pizza is made with Alfredo sauce, fresh spinach, freshly grated mozzarella, chicken,

The expanded menu also features Caesar and Club whole-wheat wraps, BBQ Chicken

Ciabatta sandwiches, BBQ and Sweet Chili boneless and bone-in chicken wings, soft parmesan

“Kids are at the heart of everything we do at Chuck E. Cheese s, but kids don’t come ʼ

“The new menu boasts a wide variety of options and flavor combinations, and I’m most

The new adult menu has been promising for Chuck E. Cheese’s, but they aren’t stopping

Chapter 8: Segmenting and Targeting Markets

In March 2016, Chuck E. Cheese’s debuted a lunchtime all-you-can-eat buffet to address

For the parents who haven’t been to a location recently, Chuck E. Cheese’s aired a new

Sources: “Adult Friendly Menu – Chuck E. Cheese’s TV Commercial,” YouTube, July 8, 2016,

TRUE/FALSE

1. Parents with children under 10 are a market segment.

PTS: 1 OBJ: LO: 8-1 TOP: AACSB: Reflective Thinking

KEY: CB&E Model: Strategy MSC: BLOOMS: Level I Knowledge

2. The purpose of market segmentation is to enable the marketer to tailor marketing mixes to

meet the needs of one or more specific segments.

PTS: 1 OBJ: LO: 8-1 TOP: AACSB: Reflective Thinking

KEY: CB&E Model: Strategy MSC: BLOOMS: Level I Knowledge

3. Chuck E. Cheese’s new commercials are focused to a target market based on geographic

segmentation.

Chapter 8: Segmenting and Targeting Markets

PTS: 1 OBJ: LO: 8-4 TOP: AACSB: Reflective Thinking

KEY: CB&E Model: Strategy MSC: BLOOMS: Level I Knowledge

4. Chuck E. Cheese’s does not make an attempt to target people in certain parts of the FLC.

PTS: 1 OBJ: LO: 8-4 TOP: AACSB: Reflective Thinking

KEY: CB&E Model: Strategy MSC: BLOOMS: Level I Knowledge

5. Chuck E. Cheese’s new BBQ Chicken Pizza will cannibalize Domino’s BBQ Chicken Pizza.

PTS: 1 OBJ: LO: 8-7 TOP: AACSB: Reflective Thinking

KEY: CB&E Model: Strategy MSC: BLOOMS: Level I Knowledge

MULTIPLE CHOICE

1. Which of the following is NOT a demographic often used for segmentation?

a. age

b. income

c. ethnicity

d. gender

e. All of these are demographics often used.

PTS: 1 OBJ: LO: 8-4 TOP: AACSB: Reflective Thinking

KEY: CB&E Model: Strategy MSC: BLOOMS: Level I Knowledge

2. Chuck E. Cheese’s new commercial uses a(n) __________ targeting strategy.

a. concentrated

b. multisegment

c. undifferentiated

d. None of these

PTS: 1 OBJ: LO: 8-7 TOP: AACSB: Reflective Thinking

Chapter 8: Segmenting and Targeting Markets

KEY: CB&E Model: Strategy MSC: BLOOMS: Level I Knowledge

3. Which of the following is NOT a trend that will lead to continuing growth of CRM?

a. loyalty

b. standardization

c. time saving

d. technology

PTS: 1 OBJ: LO: 8-8 TOP: AACSB: Reflective Thinking

KEY: CB&E Model: Strategy MSC: BLOOMS: Level I Knowledge

4. Chuck E. Cheese’s is __________ itself to compete with pizza chains popular among adults.

a. positioning

b. targeting

c. differentiating

d. concentrating

PTS: 1 OBJ: LO: 8-9 TOP: AACSB: Reflective Thinking

KEY: CB&E Model: Strategy MSC: BLOOMS: Level I Knowledge

5. Which of the following was NOT one of the changes made by Chuck E. Cheese’s in an

attempt to target the segment with a low usage-rate?

a. updating their menu to include more adult-friendly options

b. introducing a lunchtime all-you-can-eat buffet

c. adding an “adult’s night” for 18+ customers who do not have children

d. testing half-priced games on Tuesday evenings

PTS: 1 OBJ: LO: 8-4 TOP: AACSB: Reflective Thinking

KEY: CB&E Model: Strategy MSC: BLOOMS: Level I Knowledge

Great Ideas for Teaching Chapter 8

James S. Cleveland, Sage College of Albany

Discussion Board Topics to Encourage Participation

Discussion board questions provided to students to encourage them to engage in thinking and

Discussion topics such as this one are abstract and often require that the instructor provide an

initial reply to show students what is expected of them in their own replies. For students with

Chapter 8: Segmenting and Targeting Markets

I have developed, therefore, a series of discussion board questions to use with experienced, adult

Each question has three parts.

1. First, there is a sentence or two from the students’ textbooks introducing the topic. By

using the text author’s own words, students are enabled to locate relevant material in the

text more easily, the text content is reinforced, and confusion resulting from use of variant

terms or expressions is minimized.

2. Second, there is a reference to text pages the students should review before proceeding.

Since the goal of the exercise is for students to apply the course content to their own

experiences, reviewing the content first is important.

3. Third, there is a request for the students to think about or remember some specific situation

in their experience to which they can apply the text material, and a question or questions

for them to address in their replies.

Here are additional similar discussion board questions developed for Chapter 8 of MKTG11.

Each is written to fit the same text cited above but could easily be rewritten and revised to fit

another text.

Series A

1. Marketers use segmentation bases, or variables, which are characteristics of individuals,

groups, or organizations, to divide a total market into segments.

2. Review the five general segmentation bases in section 8-4 of your text.

3. Then describe what base or bases your employer uses to segment its market. Be as specific

as you can. For example, a company selling women’s clothes is obviously segmented by

gender, but it probably also segments by age or profession as well.

Series B

1. The development of any marketing mix depends on positioning, a process that influences

potential customers’ overall perception of a brand, a product line, or an organization in

general. Position is the place a product, brand, or group of products occupies in consumers’

minds relative to competing offering.

Chapter 8: Segmenting and Targeting Markets

2. Review positioning in section 8-9 of your text.

3. Then describe the position of the products marketed by your employer. Do you think this is

a good position? Why, or why not?

Barbara Coleman, Augusta College

Unity in Diversity

Whenever I teach a unit on multiculturalism, I begin with the following exercise. Sometimes it

uncovers interesting differences based on gender or ethnicity, but just as often it identifies

common values and lifestyle characteristics.

Note your race, ethnic group, or country of origin:

_____Male

_____Female

What is your favorite

television program:

radio station:

leisure activity:

food:

drink:

restaurant:

What do you see yourself doing five years from now?

What is your attitude toward marriage and children?

After this form is completed, students discuss it in class. You may also use small group

discussions first and then general class presentations or discussions.

Marcel L. Berard, Community College of Rhode Island

Marketing Starts with Segmenting, Targeting, and Positioning (STP)

This project should be started at the beginning of the semester so as to provide students

immediately with a target date for oral and written completion. It is highly recommended that

Chapter 8: Segmenting and Targeting Markets

Students’ Product Instructions and Outline

(Students must choose only one topic below!)

Marketing Strategy Project STP choice topics:

#1—New Musical Group

#2—New Feature Movie

#3—New Television Show

Note to Students: Conduct a “Brainstorming” session in which your group chooses a topic from

those listed above. In your session, you should answer all statements and questions in all three

sections of the Marketing Strategy Project outline below. Good luck!

Marketing Strategy Project Outline

Section #1. Segmenting Your Product Market

a. Current product identification and information (name, location, size logo, symbols,

insignias, models, etc.)

b. Product’s philosophy, climate, and culture (mission statement)

Section #2. Targeting Your Product Market

a. Primary target market (main consuming group)

b. Secondary target market (additional sales potential)

Section #3. Positioning Your Product Market

a. What is special about this product?

Chapter 8: Segmenting and Targeting Markets

Reminder: Marketing strategy starts with “STP”!