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Chapter 8: Segmenting and Targeting Markets
1
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
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Chapter 8: Segmenting and Targeting Markets
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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
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Chapter 8: Segmenting and Targeting Markets
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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
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Chapter 8: Segmenting and Targeting Markets
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“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
© 2018 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Chapter 8: Segmenting and Targeting Markets
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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.
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Chapter 8: Segmenting and Targeting Markets
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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
© 2018 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Chapter 8: Segmenting and Targeting Markets
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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
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Chapter 8: Segmenting and Targeting Markets
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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.
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Chapter 8: Segmenting and Targeting Markets
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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
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Chapter 8: Segmenting and Targeting Markets
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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?
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Chapter 8: Segmenting and Targeting Markets
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Reminder: Marketing strategy starts with “STP”!
© 2018 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
