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TEACHING NOTE FOR APPENDIX D CASE D-9
Lawn Mowers: Segmentation Challenges
Synopsis
Segmentation is one of the key concepts in marketing and the lawn mower industry
provides an interesting illustration of how many different ways a market might be segmented.
Teaching Suggestions
It’s useful to review for students why segmentation is so useful to marketers and the steps
used to reach a target market decision. Marketing research is an important part of providing a
profile or picture of a given market segment in order to evaluate one segment against another on
a quantitative basis.
Since everyone has had some experience with lawn mowing, it might be worthwhile to
poll students and tally the number that live in houses, apartments or dorms and about the type of
lawn mower used to care for their lawn (or that of their parents). Students (or their parents) may
not be responsible for lawn care in their current residence (e.g., renters whose landlord may
employ a lawn care service). However, this can lead to a discussion on segmentation based on
consumer vs. industrial/commercial markets. While this case focuses on the consumer market,
there is no reason why segmentation bases for industrial/commercial markets couldn’t also be
discussed.
Answers to Questions
1. Identify at least three bases for segmenting the lawn mower market. Prepare a
market-product grid illustrating at least one of these bases.
Answers:
Chapter 09 - Market Segmentation, Targeting, and Positioning
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2. What criteria should a lawn equipment company use in assessing the attractiveness of
market segments? What sort of information is needed to fill in the market-product
grid and allow the firm to make that target market decision?
Answers:
Chapter 09 - Market Segmentation, Targeting, and Positioning
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3. How might a lawn mower company use segmentation for positioning purposes? At
present, the manual reel mower market is rather small but growing. What marketing
mix recommendations could be used to significantly expand this market?
Answers:
Chapter 09 - Market Segmentation, Targeting, and Positioning
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ICA 9-1: 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 different people categorize the same objects in different ways; (2) explore some of the
reasons for these differences; and (3) understand the importance of categorization in identifying
both market segments and competitors.
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
– A package of Frito-Lay sunflower seeds
– A package of Planter’s mixed nuts
– A Quaker Oats Chewy granola bar
– A package of Fruit Roll-ups® fruit snacks
– An apple, banana, and/or orange
Steps to Teach this ICA.
1. Lay the assortment of “snack items” (the Honey Nut Cheerios® Milk ‘n Cereal Bar as
well as those items purchased from the grocery store) out on a table in the front of the
classroom.
2. Ask for two student volunteers. Have one student go out of the room. Then give the
other student the following instruction:
“Your task is to take these objects and group them together in any way that you wish.
The only requirement is that there must be at least two objects in each group. You
have 2 minutes to complete this task.”
1 The authors wish to thank Muffie Taggett of General Mills who assisted in the development of this ICA. Honey Nut Cheerios® and Fruit Roll-
ups® are registered trademarks of General Mills and used by permission.
Chapter 09 - Market Segmentation, Targeting, and Positioning
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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
items that contain nuts…or perhaps the student has a “healthy snack group.” Either
the instructor or another student should write down on the board or a transparency the
rationale the student used to categorize and group these items.
4. Have that student sit down, bring in the other student, and repeat the grouping
process. The student’s manner and explanation of the grouping should also be
recorded. The groupings by the two students will more than likely be very different.
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).
• Appearance or packaging (some students may group all brown colored
packages together).
• Personal preferences or attitudes towards different items (groups based on
items the person likes or dislikes).
• Advertising or position the product has in the consumer’s mind. With no
personal experience with an item, a student may think that granola bars are
healthier based on advertisements for the items.
• Brand name (even if a student has never seen or tasted the Honey Nut
Cheerios Milk ‘n Cereal Bar, the student may assign a positive value to the
product based on the Cheerios® brand name).
• Others as identified.
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 09 - Market Segmentation, Targeting, and Positioning
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• Question 5: Why is product categorization important in marketing?
• Question 6: What products does the Honey Nut Cheerios Milk ‘n Cereal
Bar most directly compete with?
Answers:
• Question 7: What special promotional strategies suggested by this
competitive set?
Marketing Lessons. Marketers need to understand how consumers categorize objects
because it helps define both the market segments, acceptable substitutes in the product grouping,
and the competitors to these segments. Marketers, through advertising, packaging, and branding,
can influence the way consumers categorize products. This influence is especially critical for
new products that consumers may be unfamiliar with.
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ICA 9-2: 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:
a. “3M Post-it® Flag + Highlighter Product and Branding Strategies” handout.
b. “3M Post-it® Flag + Highlighter Product and Branding Strategies Answers”
handout.
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?
2 The authors wish to thank David Windorski, New Product Development Senior Specialist, Cathy Jeske, Office Supplies Division, and Erica
Schiebel, Marketing Communications, all of the 3M Company, who assisted in the development of this ICA.
Chapter 09 - Market Segmentation, Targeting, and Positioning
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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 important material in a textbook. However, some students also used Post-it®
Notes and Flags to mark pages in the textbook that they want to study further.
Windorski’s breakthrough idea was to marry the two products by putting Post-it®
Flags inside a highlighter!”
4. Click on the Internet icon to go to play a TV ad for the 3M Post-it Flag +
Highlighter. [TRT = 0:23]
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?
7. Form students into 4-person teams.
8. Pass out copies of the “3M Post-it® Flag + Highlighter Product and Branding
Strategies” Handout to the 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:
10. Ask the class to share their ideas on the first three rows of the handout: (1) brand
name and logo; (2) product concept; and (3) design features. Then have students
from 2 or 3 teams go and write their positioning statements on the board and have
them explain their reasoning. Have the class comment and make suggestions.
11. Share ideas from the “3M Post-it® Flag + Highlighter Product and Branding
Strategies Answers” with the class. Point out that the positioning statement helps 3M
distinguish its 3M Post-it Flag + Highlighter in the minds of consumers from
competitive products, as discussed in Chapter 9.
Chapter 09 - Market Segmentation, Targeting, and Positioning
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“Two short product positioning statements might be:
Marketing Lesson. Firms selling convenience products that are traditionally seen as
“commodities” can break through the clutter by using creative product, branding, and packaging
strategies to achieve a strong position in the minds of consumers and retailers.
Chapter 09 - Market Segmentation, Targeting, and Positioning
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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 09 - Market Segmentation, Targeting, and Positioning
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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
• 3M and Post-it® brand
names provide immediate
credibility for potential
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.
• Helps convince retail buyer
of product’s marketability.
• Helps retailer see
opportunity for follow-on
sales of more Post-it® Flag
B. A 15- to 20-word
product positioning
statement suggested by
“A combination Post-it®
Flags and highlighter
package that enables users
“A combination Post-it®
Flags and highlighter
product line with a
Chapter 09 - Market Segmentation, Targeting, and Positioning
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Connect Application Exercises
Application Exercise1: 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
provided with a brief overview of the firm, its products, and potential markets. After reading the
case, students answer five questions about segmentation, targeting, and product assortment for
the small local gift shop.
Tagging (Topic, Learning Objectives, AACSB, Bloom’s, Difficulty)
Topic: Steps in Market Segmentation
Learning Objectives: LO 09-01 Explain what market segmentation is and when to use it.
LO 09-02 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
with a brief overview of the firm and allow students to familiarize themselves with its offerings
Application Exercise 2: Positioning Strategy
Activity Summary: In this click and drag activity, students analyze the positioning strategy for a
start-up golf equipment company who is deciding how it should enter the golf club market.
Students complete a perceptual map with golfer skill and expertise axes by dropping the product
lines (good value, only the best, inexpensive, overinflated self-image) into the correct quadrant.
Tagging (Topic, Learning Objectives, AACSB, Bloom’s, Difficulty)
Topic: Positioning
Learning Objective: LO 09-05 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
projector for product categories that are relevant to students (mobile phones, laptops, cars, or
Chapter 09 - Market Segmentation, Targeting, and Positioning
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Application Exercise 3: The Market Segmentation Process
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 &
estimate, select targets, take action). Students are given ten dragable items (graphic artists,
students, laptops, MP3, iPhone estimates, college bound, ease of use, iPod revolution, education
discounts, PC vs Mac) which are dropped onto the correct stage of the market segmentation
process.
Tagging (Topic, Learning Objectives, AACSB, Bloom’s, Difficulty)
Topic: Steps in Market Segmentation
Learning Objectives: LO 09-02 Identify the five steps involved in segmenting and targeting
markets.
LO 09-03 Recognize the bases used to segment consumer and
organizational (business) markets.
LO 09-04 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
Application Exercise 4: Prince Sports
Activity Summary: In this 8-minute video case, students are introduced to Prince Sports’ global
strategy, market growth, and marketing tactics. After watching the video, students are asked six
questions related to Prince Sports’ segmentation process and strategies, market-product grid, and
positioning.
Tagging (Topic, Learning Objectives, AACSB, Bloom’s, Difficulty)
Topics: Methods of Market Segmentation, Positioning
Learning Objectives: LO 09-01Explain what market segmentation is and when to use it.
LO 09-03 Recognize the bases used to segment consumer and
organizational (business) markets.
LO 09-04 Develop a market-product grid to identify a target market and
recommend resulting marketing actions.
LO 09-05 Explain how marketing managers position products in the
marketplace.
AACSB: Knowledge Application
Blooms: Understand
Difficulty Level: 2 Medium
Chapter 09 - Market Segmentation, Targeting, and Positioning
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Follow-Up Activity: Instructors could ask students to research and analyze the way Netflix
Application Exercise 5: iSeeit! Video Case: Segmentation Process
Activity Summary: In this straightforward whiteboard animation video, the segmentation
process is explored in the context of the purchase of a vehicle. After watching the 3-minute
video, students are asked four follow-up questions related to segmentation and positioning.
Tagging (Topic, Learning Objectives, AACSB, Bloom’s, Difficulty)
Topics: Methods of Market Segmentation, Positioning
Learning Objectives: LO 09-01 Explain what market segmentation is and when to use it.
LO 09-03 Recognize the bases used to segment consumer and
organizational (business) markets.
LO 09-05 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’s
Application Exercise 6: Applying Segmentation to Consumer Markets
Activity Summary: In this click and drag segmentation activity, students learn about the four
general segmentation bases for consumer markets in the United States (geographic,
demographic, psychographic, and behavioral). The eight dragable items (Old Bay, bundle up,
table for one, clean castle, serve and volley, great outdoors, safety first, and Uber up) describe
segmentation scenarios for various firms which are then classified by the basis of segmentation.
Tagging (Topic, Learning Objectives, AACSB, Bloom’s, Difficulty)
Topic: Method of Market Segmentation
Learning Objectives: LO 09-03 Recognize the bases used to segment consumer and
organizational (business) markets.
AACSB: Analytical Thinking
Blooms: Analyze
Difficulty Level: 2 Medium
Follow-Up Activity: Instructors could ask students to develop a segmentation strategy for the
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