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Chapter 08 - Market Segmentation, Targeting, and Positioning
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b. Suggested countries for aggressive marketing.
• Countries meeting these selection criteria best are Great Britain, France, and
Germany—probably followed by Spain, Italy, and Australia.
• Today Prince sells its products in most Western European countries, some
South American countries (Brazil, Argentina, Chile), and other Pacific countries
(New Zealand, Japan).
• Potential markets to target in the near future are:
c. Marketing actions to reach these markets. Prince’s strategy in entering these
countries is really an extension of its U.S. strategy identified above that involves first
stimulating primary demand and then selective demand, as outlined below:
• Stimulating primary demand. Increasing tennis playing generally, which
involves:
– Stressing the health benefits and sociability of tennis.
• Stimulating selective demand. Getting people to buy Prince brand tennis products,
which involves:
Epilogue
Prince Sports was recently acquired by Authentic Brands Group (ABG), a brand
development and licensing company based in New York, Toronto, and Los Angeles. ABG’s
objective is to maintain Prince Sports’ historical reign in the tennis world by offering
performance racquet sports equipment to its target markets. For example, Prince recently
announced the release of new racquets featuring their latest technological innovation, Extreme
String Pattern (ESP) Technology. In addition, Prince Mexico has expanded to distribute Prince
products in more than 2,000 locations in Mexico.
Chapter 08 - Market Segmentation, Targeting, and Positioning
ICA 8-1: IN-CLASS ACTIVITY
Honey Nut Cheerios® Milk ‘N Cereal Bar: Identifying Product Groups1
Learning Objectives. To have students: (1) discover the process of categorization and how
Nature of the Activity. To have two students independently group some snack and candy items
into different categories. Students in the class are able to observe the differences in the ways
different people group items and discuss some of the reasons for these differences.
Estimated Class Time and Teaching Suggestions. About 15 minutes.
Materials Needed.
• A variety of several candies and other food items purchased from a grocery store,
mass merchandiser (Target, Walmart), or warehouse club store (Sam’s Club, Costco),
such as:
– A Honey Nut Cheerios® Milk ‘n Cereal Bar
– A packet of M&M’s (Plain, Almond, Peanut, Peanut Butter, & Crispy)
– A Snickers bar
Steps to Teach this ICA.
1. Lay the assortment of “snack items” (the Honey Nut Cheerios® Milk ‘n Cereal Bar as
2. Ask for two student volunteers. Have one student go out of the room. Then give the
other student the following instruction:
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3. When finished, ask the student why he or she grouped items in the manner described.
For example, there may be one group with items that contain chocolate or one with
4. Have that student sit down, bring in the other student, and repeat the grouping
5. Use the following as discussion points:
a. The way items are categorized by one person can be very different than the way
another person may group the items. Ask students what some of the factors are
that may account for the differences. Common answers include:
• Prior experience with the items (those with nuts vs. those that have caramel).
• Knowledge (those items which are more nutritional).
b. Ask students the following questions:
• Question 1: What are the product items?
• Question 2: What are the product forms?
• Question 3: What are the product lines?
• Question 4: What is/are the product class(es)?
Chapter 08 - Market Segmentation, Targeting, and Positioning
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• Question 5: Why is product categorization important in marketing?
Answer: An individual may group items together that are considered
• Question 6: What products does the Honey Nut Cheerios Milk ‘n Cereal
Bar most directly compete with?
Answers:
a. A Quaker Oats Chewy granola bar.
• Question 7: What special promotional strategies suggested by this
competitive set?
Marketing Lessons. Marketers need to understand how consumers categorize objects because it
Chapter 08 - Market Segmentation, Targeting, and Positioning
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ICA 8-2: IN-CLASS ACTIVITY
3M Post-it® Flag + Highlighter: Product Positioning for Consumers and Retailers2
Learning Objectives. To have students study a product to identify the benefits to both
consumers and retailers and (2) suggest a positioning statement for the product.
Nature of the Activity. To have students study a 2-pack “blister card” that contains Post-it® Flag
+ Highlighters from 3M. Students will (1) suggest consumer benefits and retailer benefits and (2)
compose a product positioning statement (described in Chapter 9 of the textbook) that links it to
3M’s branding strategies for the product.
Estimated Class Time and Teaching Suggestions. About 20 minutes, conducted in
4-person teams.
Materials Needed.
• Purchase a 3M Post-it® Flag + Highlighter 3-pack at the college bookstore or office
supply store for about $8.95. The product is shown in Chapter 1 of the textbook.
• Copies for each student, either in hard copy or electronically, of the:
Steps to Teach this ICA.
1. OPTIONAL: Bookmark the following websites on your classroom computer:
a. The 3M Post-it® Flag + Highlighter website
2. Ask students the following questions about their study habits:
• Question 1: Do any of you use a highlighter when reading a textbook? Why?
• Question 2: If yes, which highlighter brand do you use? Where did you buy
it?
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3. Give the following mini-lecture:
“David Windorski, a researcher at 3M, had observed and interviewed students
concerning their study habits. Many students like to use a felt-tip highlighter to indicate
4. Click on the Internet icon to go to play a TV ad for the 3M Post-it Flag +
5. Demonstrate a sample 3M Post-it Flag + Highlighter and pass it around the class.
6. Ask students the following question:
• Question 3: Have any of you ever used the 3M Post-it® Flag + Highlighter?
Why or Why not?
Answer: Students may have used the 3M Post-it® Flag + Highlighter for a variety
7. Form students into 4-person teams.
9. Briefly explain the nature of this ICA to the teams and have them spend 8 or 10
minutes to complete the “3M Post-it® Flag + Highlighter Product and Branding
Strategies” Handout by:
a. Identifying the perceived benefits and their importance to both consumers and
10. Ask the class to share their ideas on the first three rows of the handout: (1) brand
11. Share ideas from the “3M Post-it® Flag + Highlighter Product and Branding
Chapter 08 - Market Segmentation, Targeting, and Positioning
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“Two short product positioning statements might be:
• For consumers: “A combination Post-it® Flag and highlighter package that
Marketing Lesson. Firms selling convenience products that are traditionally seen as
Chapter 08 - Market Segmentation, Targeting, and Positioning
3M POST-IT FLAG + HIGHLIGHTER
PRODUCT & BRANDING STRATEGIES HANDOUT
(A) Identify the benefits and importance to consumers and retailers
(B) Compose a positioning strategy
Product and
Branding Strategy
(A) Benefits/Importance
to Consumers
(A) Benefits/Importance
to Retailers
1. Post-it brand name
and logo.
2. Post-it Flag +
Highlighter concept:
A product that
combines Post-it
Flags with a
highlighter.
3. Design: Highlighter
style and size of pen
barrel, Post-it Flags
dispenser in pen,
colors of highlighter
ink, flags, and barrel,
clip on cap.
B. A 15- to 20-word
product positioning
statement suggested
by above the
strategies.
Chapter 08 - Market Segmentation, Targeting, and Positioning
3M POST-IT FLAG + HIGHLIGHTER
PRODUCT AND BRANDING STRATEGIES ANSWERS HANDOUT
Product and
Branding Strategy
(A) Benefits/Importance
to Consumers
(A) Benefits/Importance
to Retailers
1. Post-it brand name
and logo.
• Provided immediate
credibility for potential
buyers because of
recognition of 3M name and
Post-it® brand.
• Aids future consumer
recognition and recall of
company and brand.
• 3M and Post-it® brand
names provide immediate
credibility for potential
retailers considering
stocking the items because
of their recognition by
consumers.
• Post-it® logo conveys the
theme of the product line.
2. Post-it Flag +
Highlighter concept: A
product that combines
Post-it Flags with a
highlighter.
• Provides 2-in-1 benefits of
both: (a) Post-it® Flags and
(b) highlighting.
• Provides information about
Post-it® Flag refills on the
back of the blister card.
• Provides a complete
product line: Post-it® Flag +
Highlighters, Post-it® Flag +
Pens, Post-it® Flag + Gel
Marker, and Post-it® Flag
refills.
3. Design: Highlighter style
and size of pen barrel,
Post-it Flags dispenser
in pen, colors of
highlighter ink, flags,
and barrel, clip on cap.
• Similar to highlighters that
consumers may be familiar
with.
• Convenient, easy-to-use
dispenser of small flags.
• 5 colors available to meet
consumer preferences;
typical colors used in other
highlighters.
• Adequate supply of flags:
50 in highlighter; good value
for the price paid (MSRP:
$7.99 for a 3-pack).
• Helps convince retail buyer
of product’s marketability.
• Helps retailer see
opportunity for follow-on
sales of more Post-it® Flag
Highlighters and refills.
B. A 15- to 20-word
product positioning
statement suggested by
above the strategies.
“A combination Post-it®
Flags and highlighter
package that enables users
to have the convenience of
both for many applications.”
“A combination Post-it®
Flags and highlighter
product line with a
recognized brand name and
logo, attention-getting
packaging, and high
potential volume.”
Chapter 08 - Market Segmentation, Targeting, and Positioning
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Connect Exercises
Exercise 1: Market-Product Grid
Activity Summary: In this case analysis, students evaluate three potential target markets for a
small local gift shop to determine which market segment should be targeted. Students are
Tagging (Topic, Learning Objectives, AACSB, Bloom’s, Difficulty)
Topic: Steps in Market Segmentation
Learning Objectives: LO 08-01 Explain what market segmentation is and when to use it.
LO 08-02 Identify the five steps involved in segmenting and targeting
markets.
AACSB: Knowledge Application
Blooms: Remember
Difficulty Level: 1 Easy
Follow-Up Activity: Instructors could ask students to imagine that they were asked to segment
the market for an athletic shoe company such as Nike (or Under Armour). Provide the students
Exercise 2: Positioning Strategy
Activity Summary: In this click and drag activity, students analyze the positioning strategy for a
Tagging (Topic, Learning Objectives, AACSB, Bloom’s, Difficulty)
Topic: Positioning
Learning Objective: LO 08-05 Explain how marketing managers position products in the
marketplace.
AACSB: Knowledge Application
Blooms: Apply
Difficulty Level: 2 Medium
Follow-Up Activity: Instructors could create any number of perceptual maps on the board or
Exercise 3: The Market Segmentation Process
Chapter 08 - Market Segmentation, Targeting, and Positioning
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Activity Summary: In this click and drag activity, students are given an overview of the market
segmentation process including the five steps (group buyers, group products, develop &
Tagging (Topic, Learning Objectives, AACSB, Bloom’s, Difficulty)
Topic: Steps in Market Segmentation
Learning Objectives: LO 08-02 Identify the five steps involved in segmenting and targeting
markets.
LO 08-04 Develop a market-product grid to identify a target market and
recommend resulting marketing actions.
AACSB: Analytical Thinking
Blooms: Apply
Difficulty Level: 3 Hard
Follow-Up Activity: Instructors could follow up the activity with a deeper look into the ways to
segment consumer markets. Ask students to imagine that they are employed by a national rental
Exercise 4: Prince Sports
Activity Summary: In this 8-minute video case, students are introduced to Prince Sports’ global
Tagging (Topic, Learning Objectives, AACSB, Bloom’s, Difficulty)
Topics: Methods of Market Segmentation, Positioning
Learning Objectives: LO 08-01Explain what market segmentation is and when to use it.
LO 08-03 Recognize the bases used to segment consumer and
AACSB: Knowledge Application
Blooms: Understand
Difficulty Level: 2 Medium
Chapter 08 - Market Segmentation, Targeting, and Positioning
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Exercise 5: iSeeit! Video Case: Segmentation Process
Activity Summary: In this straightforward whiteboard animation video, the segmentation
Tagging (Topic, Learning Objectives, AACSB, Bloom’s, Difficulty)
Topics: Methods of Market Segmentation, Positioning
Learning Objectives: LO 08-01Explain what market segmentation is and when to use it.
LO 08-03 Recognize the bases used to segment consumer and
organizational (business) markets.
LO 08-05 Explain how marketing managers position products in the
marketplace.
AACSB: Knowledge Application, Analytical Thinking
Blooms: Remember, Understand
Difficulty Level: 1 Easy, 2 Medium
Follow-Up Activity: Instructors could use have students visit Mercedes-Benz’
Exercise 6: Applying Segmentation to Consumer Markets
Activity Summary: In this click and drag segmentation activity, students learn about the four
Tagging (Topic, Learning Objectives, AACSB, Bloom’s, Difficulty)
Topic: Method of Market Segmentation
Learning Objectives: LO 08-03 Recognize the bases used to segment consumer and
organizational (business) markets.
AACSB: Analytical Thinking
Blooms: Analyze
Difficulty Level: 2 Medium
Chapter 08 - Market Segmentation, Targeting, and Positioning
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