M Marketing 3rd Edition Grewal Solutions Manual

M Marketing 3rd Edition Grewal
Solutions Manual
Visit to download the full and correct content document:
https://testbankdeal.com/download/m-marketing-3rd-edition-grewal-solutions-manual/
Chapter 08 - Segmentation, Targeting, and Positioning
Chapter 8
Segmentation, Targeting, and Positioning
TOOLS FOR INSTRUCTORS
• Brief Chapter Outline

• Learning Objectives
• Chapter Overview (“Summing Up”)
• Extended Chapter Outline with Teaching Tips
o Topics, key terms, and boxed inserts referenced to PPT slide
• PowerPoint Slides with Teaching Notes
• Answers to End of Chapter Learning Aids
• Chapter Case Study
• Additional Teaching Tips
BRIEF CHAPTER OUTLINE
The Segmentation, Targeting, and Positioning Process

Positioning Steps
Repositioning
Summing Up
End of Chapter Learning Aids
Chapter Case Study: Coca-Cola
LEARNING OBJECTIVES
LO1 Identify the five steps in the segmentation, targeting and positioning process.
LO2 Outline the different methods of segmenting a market.
LO3 Describe how firms determine whether a segment is attractive and therefore worth
pursuing.
LO4 Articulate the difference among targeting strategies: undifferentiated, differentiated,
concentrated, or micromarketing.
LO5 Define positioning, and describe how firms do it.
8-1
CHAPTER OVERVIEW (“SUMMING UP”)
How does a firm decide what type of segmentation strategy to use—undifferentiated,

differentiated, concentrated, or micromarketing?
Most firms use some form of segmentation strategy. An undifferentiated strategy is really no
segmentation at all and only works for products or services that most consumers consider to be
commodities. The difference between a differentiated and a concentrated strategy is that the
differentiated approach targets multiple segments, whereas the concentrated targets only one.
Larger firms with multiple product/service offerings generally use a differentiated strategy;
smaller firms or those with a limited product/service offering often use a concentrated strategy.
Firms that employ a micromarketing or one-to-one marketing strategy tailor their product/service
offering to each customer— that is, it is custom made. In the past, micromarketing was reserved
primarily for artisans, tailors, or other craftspeople who would make items exactly as the
customer wanted. Recently, however, larger manufacturers and retailers have begun
experimenting with custom-made merchandise as well. Service providers, in contrast, are largely
accustomed to customizing their offering. Hair salons could not flourish if every customer got
the same cut.
What is the best method of segmenting a market?
There is really no one “best” method to segment a market. Firms choose from various methods
on the basis of the type of product/service they offer and their goals for the segmentation
strategy. For instance, if the firm wants to identify its customers easily, geographic or
demographic segmentation likely will work best. But if it is trying to dig deeper into why
customers might buy its offering, then lifestyle, benefits, or loyalty segmentation, work best.
Geodemographic segmentation provides a nice blend of geographic, demographic, and
psychographic approaches. Typically, a combination of several segmentation methods is most
effective.
How do 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 appropriately. Second, the market must be substantial enough to be worth pursuing.
If relatively few people appear in a segment, it is probably not cost-effective to direct special
marketing mix efforts toward them. Third, the market must be reachable —the firm must be able
to reach the segment through effective communications and distribution. Fourth, the firm must
be responsive to the needs of customers in a segment. It must be able to deliver a product or
service that the segment will embrace. Finally, the segment must be profitable, both in the near
term and over the lifetime of the customer.
8-2
What is positioning, and how do 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 —customers get a lot for what the product or service costs. Others
determine the most important attributes for customers and position their offering on the basis of
those attributes. The product’s use can offer another positioning method. Cars, for example, can
be positioned all the way from basic transportation (Toyota Corolla) to pure luxury (Bentley
Continental). Symbols can also be used for positioning, though few products or services are
associated with symbols that are compelling enough to drive people to buy. Finally, one of the
most common positioning methods relies on the favorable comparison of the firm’s offering with
the products or services marketed by competitors. When developing a positioning strategy and a
perceptual map, firms go through five steps. First they determine consumers’ perceptions and
evaluations of the product or service in relation to competitors. Second, they identify
competitors’ positions. Third, they determine consumer preferences. Fourth, they select the
position. Finally, they monitor the positioning strategy.
EXTENDED CHAPTER OUTLINE WITH TEACHING TIPS
I. THE SEGMENTATION, TARGETING, POSITIONING PROCESS (PPT slide 8-4)
A. Step 1: Establish Overall Strategy or Objectives (PPT slide 8-5)
B. Step 2: Describe Segments (PPT slide 8-6)
1. Geographic Segmentation (PPT slide 8-7)

2. Demographic Segmentation (PPT slide 8-8)
3. Psychographic Segmentation (PPT slide 8-10)
4. Geodemographic Segmentation (PPT slide 8-12)
5. Benefit Segmentation (PPT slide 8-14)
6. Behavioral Segmentation (PPT slide 8-15)
7. Using Multiple Segmentation Methods
Check Yourself: Several questions are offered for students to check their understanding of core
concepts. (PPT slide 8-16)
 What are the various segmentation methods?

Answer: Geographic, Demographic, Psychographic, Geodemographic, Benefits, and
Behavioral.
C. Step 3: Evaluate Segment Attractiveness (PPT slide 8-17)
1. Identifiable (PPT slide 8-18)
8-3
2. Substantial (PPT slide 8-19)

3. Reachable (PPT slide 8-20)
4. Responsive (PPT slide 8-21)
5. Profitable (PPT slide 8-22)
D. Step 4: Select Target Market (PPT slide 8-24)
1. Undifferentiated Segmentation Strategy, or Mass Marketing (PPT slide 8-25)

2. Differentiated Segmentation Strategy (PPT slide 8-25)
3. Concentrated Segmentation Strategy (PPT slide 8-25)
4. Micromarketing (PPT slide 8-25)
E. Step 5: Develop Positioning Strategy (PPT slide 8-26)
1. Value Positioning (PPT slide 8-26)

2. Value (PPT slide 8-27)
3. Salient Attributes (PPT slide 8-27)
4. Symbol (PPT slide 8-27)
5. Competition (PPT slide 8-27)
6. Positioning (PPT slide 8-28)
7. Perceptual Maps (PPT slide 8-29)
8. Positioning Steps (PPT slide 8-30)
Check Yourself: Several questions are offered for students to check their understanding of core
concepts. (PPT slide 8-31)
 What is a perceptual map?

Answer: A perceptual map displays, in two or more dimensions, the position of products
or brands in the consumer’s mind.
 Identify the five positioning steps.

Answer: The five positioning steps are: 1-determine consumers’ perceptions and
evaluations of the product or service in relation to competitors’; 2-identify competitors’
positions; 3-determine consumer preferences; 4-select the position; and 5-monitor the
positioning strategy.
8-4
POWERPOINT SLIDES WITH TEACHING NOTES
Power Point Slide Teaching Notes
8-1: Segmentation, Targeting, And

Positioning
8-2: Learning Objectives These are the learning objectives for this
chapter.
8-3: Victoria’s Firms constantly look to increase the markets

Secret for their products by getting current consumers
to consume more, obtaining new consumers for
current products, offering new products to
current consumers, or entering an entirely new
market.
When the economy flagged and consumers cut

spending, Victoria’s Secret’s parent company,
Limited Brands Inc., turned its attention to
specific market segments to offset falling sales.
8-5
8-4: Segmentation, Targeting, Positioning Previous chapters addressed how to plan

Process marketing strategy; this chapter focuses on how
firms use that strategy to identify the target
markets they will serve.
8-5: Step 1: Establish Overall Strategy or Remind students that any strategy must be
Objectives consistent with the firm’s mission statement and
be based on the current assessments from
SWOT analyses
8-6: Step 2: Describe Segments Group activity: Divide the class into groups.
Have them choose either a manufacturer or

national retailer.
Have them describe their segmentation strategy

and then evaluate whether or not it is the best
segmentation strategy for that firm.
8-6
8-7: Geographic Segmentation Geographic information software (GIS) aids in

such segmentation.
Many firms use regional brands of popular

products.
When Dunkin’ Donuts introduced soup to its

menu, it included New England Clam Chowder
which appealed to northeastern consumers, but
franchisees in Texas objected to this choice.
Understanding regional preferences can define a

company’s success — or failure.
Ask students: How can firms successfully

change a regional brand into a national brand?
This will tie to the previous chapter on global

marketing – should they adapt to local tastes?
8-8: Demographic Segmentation This web link is to the U.S. Census Bureau.
They provide one of the most important

marketing research tools: Census data, which
offer a rich, free source of information about
various consumers that, suggests segmentation
possibilities.
On the Census Bureau Website, walk students

through the information available about the zip
code in which your university is located.
8-9: Balancing Act Career Moms Ask students what types of products can be
targeted to this growing segment which has
demographic, psychographic and geographic
variables.
8-7
8-10: Psychographic Segmentation Not just businesses segment their customers;

segmentation also helps organizations that
counsel drug addicts or other at-risk groups.
Recall the discussion during the last presidential

election about “hockey moms”—middle-class,
educated, married women concerned about
various threats to their children.
Group Activity: Divide students into groups.
Have each choose a product/service they like.
Have them describe users of that product/service

in terms of psychographics.
8-11: VALS Framework Click on the VALS hyperlink and take the
survey as a class.
Group activity: Students complete the VALS

survey individually, and then bring their
completed survey to class.
Ask students: Why might you fall into similar

categories? Who fell into different categories?
For example, few business students likely

belong to the Believers category, but art majors
very well may.
8-12 Geodemographic Segmentation Click on the Claritas link and conduct the “You
Are Where You Live” exercise with the zip
codes of the students’ hometowns.
Ask students: Describe your neighborhood.
How accurately does the site depict your

hometown?
8-8
8-13: State Farm Not Insuring Mississippi Ask students when geographic segmentation is
not legal or ethical.
You can play this video about State Farm

refusing to insure Mississippi.
8-14: Benefit Segmentation Group activity: Have students identify products

that provide each type of benefit.
How else might these products be segmented?
This activity provides a good opportunity to

remind students that products exist in multiple
segments, just as consumers do.
Different motives lead different consumers to

purchase the same product.
8-15: Behavioral Segmentation Firms encourage loyalty in various ways, such

as airline mileage or hotel point reward
programs.
Ask students: Are you a loyal buyer of any

single product, to the extent that you refuse to
purchase a substitute?
Students may refer to soft drinks, but true brand

loyalty is extremely rare.
8-9
8-16: Check Yourself 1. Geographic, Demographic, Psychographic,

Geodemographic, Benefits, and Behavioral.
8-17: Step 3: Evaluate Segment Marketers first must determine whether the
Attractiveness segment is worth pursuing, using several
descriptive criteria:
Is the segment identifiable, substantial,

reachable, responsive, and profitable?
8-18: Identifiable Ask students: When would these women all be

in the same segment?
When would they be in different segments?
These women would appear in the same

segment if the segmentation variable were
gender but in individual segments based on race
or lifestyle.
They also may be in different geographic or

income segments, for example.
8-10
8-19: Substantial Just because a firm can find a market does not
necessarily mean it represents a good market.
But size in terms of number of people is not the

only consideration; despite its small size, the
market for the original Hummer was incredibly
profitable, and therefore was substantial
8-20: Reachable The Internet has enabled more people to be

reached more easily, but various areas around
the world simply cannot be served because they
aren’t accessible to marketing messages or
because there isn’t adequate distribution.
Ask students: What types of media influence

the way they shop?
The answer may lead to an interesting

discussion about how difficult it is to reach
Generation Y customers either because they
don’t participate in traditional media such as
newspapers or because they are skeptical about
being influenced by commercial messages.
8-11
8-21: Responsive Group activity: Nike is very successful at

selling sports related goods. Would consumers
accept personal care products from Nike? Why
or why not? Develop a list of potential products
for Nike.
Ask students: Are any of the following

acceptable: cologne, deodorant, toothpaste, or
hair gel. Why or why not? What about Nike
towels, sheets, or pajamas?
What differences can you identify between these

two types of product categories? Students are
likely to say they will not understand the value
proposition and the company’s expertise. Yet
other students might say that they will believe in
personal care product because Nike offers
superior products.
8-22: Profitable A hot segment today may not last long enough
to make it worth investment.
Many firms are investigating when and how

much to invest in the Millennial/GenY
generational cohort.
Firms in financial services and housing

understand that it provides a new potential
market, but the debt levels this segment carries
makes it difficult to target effectively.
8-23: Profitable Segments Children under 15 represent a very profitable

market segment as this example illustrates.
8-12
8-24: Step 4: Selecting a Target Market Hallmark looks at geographic segmentation

when building new stores.
They also use benefit segmentation for their

online cards.
In general, a company matches their

competencies with the attractiveness of target
markets.
8-25: Segmentation Strategy Ask students: What is an example of a mass

market product? Answer: There are very few
mass market products.
Even commodity goods such as flour are now

differentiated.
Ask students: What are examples of products

that use differentiated, concentrated, and
micromarketing segmentation strategies?
Differentiated = Coca Cola

Concentrated = Helena Rubenstein or Clinique
Microtargeting = Financial Services Providers
8-26: Step 5: Identify and Develop The positioning strategy can help communicate
Positioning Strategy the firm or the product’s, value proposition.
The value proposition communicates the

customer benefits they would receive from a
product or service and provides them reasons
for wanting to purchase it.
The best situation is if a firm’s product or

service overlaps with customer needs and wants,
but has no overlap with competitors’ offerings.
8-13
8-27: Step 5: Identify and Develop Positioning strategies generally focus on either
Positioning Strategy how the product or service affects the consumer
or how it is better than competitors’ products
and services.
When positioning against competitors, the

objective is to play up how the brand being
marketed provides the desired benefits better
than do those of competitors.
Firms thus position their products and services

according to value, salient attributes, and
symbols, and against competition.
8-28: Positioning Ask students – how is this positioning? They

should say salient attributes and competition.
Interesting here that the competition is its own

product – that is the joke of the ads.
8-29: Perceptual Maps This perceptual map was created by the process
on the previous page.
It was for Gatorade which was seeking a

positioning of healthy and sweet taste.
8-14
8-30: Positioning Steps This slide provides the steps necessary to

develop the positioning map on the next slide.
Switch back and forth on these two slides to

explain the positioning map.
8-31: Check Yourself 1. A perceptual map displays, in two or more

dimensions, the position of products or brands
in the consumer’s mind.
2. Determine consumers’ perceptions and
evaluations of the product or service in
relation to competitors’, identify competitors’
positions, determine consumer preferences,
select the position, monitor the positioning
strategy.
8-15
ANSWERS TO END OF CHAPTER LEARNING AIDS
Marketing Applications
1. What segmentation methods would you suggest for a small entrepreneur starting his own
business selling T-shirts? Justify why you would recommend those methods.
Instructor Notes
Students must think about the different benefits and trade-offs of the segmentation methods.
Descriptions of the different segments help firms better understand the customer profiles in each
segment. With this information, marketers can distinguish customer similarities within a segment
and dissimilarities across segments.
2. You have been asked to identify various segments in the market and then a potential
targeting strategy. Describe the segments for your pet supply store, and then justify the best
targeting strategy to use.
Instructor Notes
To reveal their understanding of the four key segmentation strategies presented in this chapter,
students should be able to explain what each strategy is and its application.
With an undifferentiated or mass marketing, strategy, the pet supply store would assume its
products appeal to everyone and attempt to market its goods to as broad a population as possible,
without regard to any differentiation based on different customer attributes.
If it were to use a differentiated strategy, the pet supply store might try to various pet owners
(small pets, birds, fish, large pets) developing a different marketing strategy for each one.
A concentrated strategy selects a single, primary target market and focuses all energies on
providing a product to fit that market’s needs. In this case, the pet supply store might focus on a
single pet, such as a dog, and focus all of its efforts on meeting the needs of the dog owner only.
When a firm tailors a product or service to suit an individual customer’s wants or needs, it is
engaging in micromarketing. The pet supply store might offer custom-made, tailored pet foods
to individual customers according to the pet’s needs.
3. How and why would a retailer use micromarketing?
8-16
Instructor Notes
Micromarketing occurs when a firm interacts on a one-on-one basis with many people to create
custom-made products or services. This question helps students explore the
A firm could use micromarketing by standardizing aspects of the products but leaving enough
room for variability to tailor the product to each customer’s needs. For example, a jeans
manufacturer might pre-cut fabric, then modify the pre-cut patterns to fit each customer who
orders a pair of jeans. Micromarketing increases customer satisfaction by specifically meeting
the exact need or want of the customer, which in turn increases the likelihood of customer
loyalty and repeat business.
4. You have been asked to evaluate the attractiveness of a group of identified potential market
segments. What criteria will you use to evaluate those segments? Why are these appropriate
criteria?
Instructor Notes
The third step in the segmentation process entails evaluating the attractiveness of market
segments. To complete such an evaluation, students must employ criteria that can be used
regardless of the market segment in question; in other words, the criteria must be universal
enough to apply to all potential segments. In exploring the five criteria mentioned in the chapter,
students gain practice and a fuller understanding of why they might be the appropriate.
The criteria to evaluate the attractiveness of a group of identified potential market segments
include identifiable, substantial, accessible, responsive, and profitable. If a firm can determine
who appears in the market and thus design products or services to meet their needs, the market
segment is identifiable. If it can measure the size of the segment and determine its worth, the
market segment is substantial. If the firm can reach the segment through persuasive
communications and product distribution, it is reachable. If customers in a market segment react
positively to the firm’s offerings, the market segment is considered responsive. Finally, if a
market segment has sufficient size and the potential for high adoption rates and repeat purchases
with sufficient profit margins, it is profitable. These criteria are appropriate because they apply to
any market segment, regardless of the product or service offered, and represent the key issues to
address to make the new product or service a lucrative opportunity.
5. A small-business owner is trying to evaluate the profitability of different segments. What are
the key factors you would recommend she consider? Over what period of time would you
recommend she evaluate?
8-17
Instructor Notes
At a different level than that in the previous question, students must suggest ways to determine
profitability.
The business owner should consider the following key factors: market growth (current size,
expected growth rate), market competitiveness (number of competitors, entry barriers, product
substitutes), and market access (ease of developing or accessing distribution channels, brand
familiarity). As far as the length of evaluation, it should be a minimum of 12 months to ensure
the owner knows what one year’s operations will entail.
6. Think about the various nationwide restaurant chain brands that you know (e.g., Burger
King, Applebee’s, Ruth’s Chris Steakhouse). How do those various brands position
themselves in the market?
Instructor Notes
In responding to this question, students should recognize that a company can position its brand in
one of four ways: value, salient attributes, symbols, and in comparison with the competition.
Generally, restaurant chain brands position themselves according to value (McDonald’s Value
Meal), salient attributes (Applebee’s), symbols (The golden arches), and in contrast with the
competition (Ruth Chris Steakhouse).
7. Put yourself in the position of an entrepreneur who is developing a new product to introduce
into the market. Briefly describe the product. Then, develop the segmentation, targeting, and
positioning strategy for marketing the new product. Be sure to discuss (a) the overall
strategy, (b) characteristics of the target market, (c) why that target market is attractive, and
(4) the positioning strategy. Provide justifications for your decisions.
Instructor Notes
This exercise challenges students to proceed through the entire
segmentation/targeting/positioning process described in the chapter. In so doing, they should
gain a solid feel for the amount of thought that goes into marketing a new product.
The new product is a self-propelled, robotic lawn mower, similar to the robotic vacuum cleaner
that is on the market today.
• Overall strategy: Segment the market into those consumers who own homes with lawns and
those who do not. Segment those with lawns into geodemographic markets to identify the
segments most likely to see value in such a new product. Focus marketing efforts—most
likely, television advertising, Internet banner ads, and newspaper inserts—specifically on
those segments.
8-18
• Characteristics of the target market: The target market includes middle- to upper-middle-
class households with no children and at least 20 square feet of lawn to mow.
• Why that target market is attractive: These households likely can afford the product, do not
have children to mow the lawn as a chore, and possess enough lawn space to justify the
purchase for the sake of ease and convenience.
• Positioning strategy: The product positioning should use both value (under $200) and salient
(self-propelled, does not need supervision, senses the boundaries of the lawn automatically,
and saves energy because it stops when it finishes mowing) attributes.
8. Think of a specific company or organization that uses various types of promotional material
to market its offerings. The Web, magazine ads, newspaper ads, catalogs, newspaper inserts,
direct mail pieces, and flyers might all be sources for a variety of promotional materials.
Locate two or three promotional pieces for the company and use them as a basis to analyze
the segments being targeted. Describe the basic segmentation strategy reflected in these
materials, and describe characteristics of the target market according to the materials. Be sure
to include a copy of all the materials used in the analysis.
Instructor Notes
This exercise takes the examination of segmentation, targeting, and positioning one step further
to the actual implementation of the entire process of marketing materials.
A company like Pillsbury uses a variety of promotional materials to sell its products. Three
common types are newspaper coupon inserts, magazine advertisements, and its Web site.
According to these materials, the basic segmentation strategy Pillsbury uses focuses on salient
attributes; all the material tends to highlight product attributes (flavor, quick baking time,
convenient to make, enough for a family of four). As far as the target market, it appears to be
predominately cost-conscious women with children who have limited time and budgets to make
home-cooked meals for their family and are looking for easy recipes and convenience.
9. You have been hired recently by a large bank in its credit card marketing division. The bank
has relationships with a large number of colleges and prints a wide variety of credit cards
featuring college logos, images, and the like. You have been asked to oversee the
implementation of a new program targeting the freshman class at the schools with which the
bank has a relationship. The bank has already purchased the names and home addresses of
the incoming freshman class. You have been told that no credit checks will be required for
these cards as long as the student is over 18 years of age. The bank plans a first day of school
marketing blitz that includes free hats, T-shirts, and book promotions, as well as free pizza, if
the students simply fill out an application. Do you think it is a good idea to offer this program
to these new students?
8-19
Instructor Notes
What ethical issues might arise from the situation outlined, and to what degree do these issues
violate students’ own ethical standards? Using the ethical decision-making framework discussed
in Chapter Three, students should evaluate their opinion of the practice of marketing credit cards
to college freshmen and thus determine an appropriate course of action.
In applying the ethical decision-making framework:

• “Have you thought broadly of any ethical issues associated with the decision to be made?” I
have thought broadly about the ethical issues and have concerns about targeting a market
segment of young consumers who lack jobs and are just learning how to manage their own
finances. Such targeting could breed a population of students who run up credit card bills to
the point that it affects their ability to buy a car or house a few years down the line.
• “Have you involved as many possible people who might have a right to offer input into or
have actual involvement in making this decision and action plan?” At this point, the students
have no say in whether such marketing efforts should be on campus, parents have had no
chance to give input to a process that probably is occurring without their knowledge, and the
school administration has not been consulted about whether this target population is
appropriate.
• “Does this decision respect the rights and dignity of the stakeholders?” College freshmen
likely have little understanding of the potential pitfalls involved with running up credit card
debt they cannot pay for, and the parents of these students might be the ones most adversely
affected if they have to bail out their child, incurring costs of which they were not even
aware.
• “Does this decision produce the most good and the least harm to the relevant stakeholders?”
The college freshmen would be making important credit decisions without full knowledge of
the potential consequences, and their credit ratings could be affected for life, ruining their
chances of obtaining credit in the future for car and home purchases.
• “Does this decision uphold relevant conventional moral rules?” It likely violates the
community’s standard for what is appropriate, because it targets young adults with credit
cards that they cannot afford.
• “Can you live with this decision alternative?” If the decision is to forgo such marketing to
college freshmen, then yes, I could live with that.
Therefore, I would choose not to offer the program to college freshmen but instead focus on
another market segment that is better equipped to make the credit card payments that will ensue.
QUIZ YOURSELF
1. Adidas Group owns Reebok, Rockport, and Greg Norman brands. Adidas uses the different
brands to pursue a(n) ________________________ strategy.
a. concentrated segmentation
b. micromarketing segmentation
c. benefit segmentation
8-20
d. differentiated segmentation
e. undifferentiated segmentation
2. Talbots target customers are college-educated women between 35 and 55 years old with
average household income of $75,000 or more. This is Talbots' ________________
segment.
a. self-actualization
b. geodemographic
c. psychographic
d. demographic
e. geographic
NET SAVVY
1. Go to the Nielsen Claritas’ website (www.mybestsegments.com). Click on the tab that says
“ZIP Code Look-Up,” then enter your zip code to learn which segments are the top five in
your zip code. Follow the links for each of the five most common PRIZM segments to obtain
a segment description. Write up a summary of your results. Discuss the extent to which you
believe these are accurate descriptions of the main segments of people who reside in your zip
code.
Instructor Notes
By looking at their own zip codes, students can get a feel for how accurate Claritas is and
discover any areas in which Claritas has missed the mark.
Answers will vary. A sample answer may be: Generally, people who live in my zip code tend to
be highly educated, affluent, ethnically mixed, liberal, and technologically savvy. This
description is accurate for the area I live in on the whole, but a segment of the population that
PRIZM seems to have missed are the elderly, who are numerous in my area.
2. Go to the VALS website (www.strategicbusinessinsights.com/vals/presurvey.shtml), and

click on the link to complete the VALS survey. After you submit your responses, a screen
will display your primary and secondary VALS types. Click on the colored names of each
segment to get additional information about them, and print out your results. Assess the
extent to which these results reflect your lifestyle, and identify which characteristics
accurately reflect your interests and activities and which do not.
Instructor Notes
Responses will vary according to the results of each students’ VALS survey results. The main
dimensions of the VALS segmentation framework are consumer motivation and consumer
resources. Consumers are inspired by three motivations: (1) ideal, (2) achievement, and (2) self-
expression. Students should touch upon the basic framework of the VALS survey in their
response and address the validity of the survey.
8-21
CHAPTER CASE STUDY: Coca-Cola
1. Which types of segmentation strategies does Coca-Cola use to categorize the cola beverage
market?
Instructor Notes
Coca-Cola uses a differentiated marketing strategy. It delivers a unique plan (and subsequent
marketing message) to its segments. This strategy is effective in the market since each segment
has its unique needs that are significantly different. Each is a completely different market.
ADDITIONAL TEACHING TIPS
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 and well as positioning
One of the most difficult concepts for students to understand is that of product positioning.
Instructors should emphasize that product position is based primarily on competing brands in the
marketplace and the consumer’s perception of the brand. The perceptual map from the text
(shown below) should be thoroughly reviewed with students.
8-22
Students can learn this in a classroom setting where the instructor delegates one person in the
class to be the facilitator and then assigns the classroom with creating a class perceptual map
(food franchises can be used as an example). This can also take place in groups with each group
presenting their perceptual map to the class. Online Tip: This exercise can be transferred to the
online platform where groups are given the same tasks then asked to post the groups’ results. An
ensuing discussion board can then compare/contrast the various perceptual maps.
The four strategies of undifferentiated, differentiated, concentrated, and micromarketing

should be further explored with critical thinking exercises. Emphasize that it is the approach to
the marketing message in relation to its target market(s) NOT the type of product it is. Students
confuse this. Consequently providing additional exercises such as having students research
advertisement campaigns on the Web, then determining if it’s a differentiated, undifferentiated,
concentrated, or micromarketing segmentation strategy will help them to better understand that
the strategy is based on the target market characteristics not the product.
Remember to review the Newsletter for Instructors and its accompanied

PowerPoint presentation, which integrates examples and discussion from the
newsletter. Each newsletter contains over ten article abstracts on hot topics, plus
a selection of current commercials and videos for you to use with your class. The
newsletter also includes a guide that explains where the articles, commercials, and
videos best fit in your Marketing course.
8-23

M Marketing 3rd Edition Grewal Solutions Manual

Uploaded by

Document Information

Original Description:

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

M Marketing 3rd Edition Grewal Solutions Manual

Uploaded by

Copyright:

Available Formats

M Marketing 3rd Edition Grewal

TOOLS FOR INSTRUCTORS

• Brief Chapter Outline

BRIEF CHAPTER OUTLINE

The Segmentation, Targeting, and Positioning Process

CHAPTER OVERVIEW (“SUMMING UP”)

How does a firm decide what type of segmentation strategy to use—undifferentiated,

What is the best method of segmenting a market?

What is positioning, and how do firms do it?

EXTENDED CHAPTER OUTLINE WITH TEACHING TIPS

I. THE SEGMENTATION, TARGETING, POSITIONING PROCESS (PPT slide 8-4)

A. Step 1: Establish Overall Strategy or Objectives (PPT slide 8-5)

B. Step 2: Describe Segments (PPT slide 8-6)

1. Geographic Segmentation (PPT slide 8-7)

 What are the various segmentation methods?

C. Step 3: Evaluate Segment Attractiveness (PPT slide 8-17)

1. Identifiable (PPT slide 8-18)

2. Substantial (PPT slide 8-19)

D. Step 4: Select Target Market (PPT slide 8-24)

1. Undifferentiated Segmentation Strategy, or Mass Marketing (PPT slide 8-25)

E. Step 5: Develop Positioning Strategy (PPT slide 8-26)

1. Value Positioning (PPT slide 8-26)

 What is a perceptual map?

 Identify the five positioning steps.

POWERPOINT SLIDES WITH TEACHING NOTES

Power Point Slide Teaching Notes

8-1: Segmentation, Targeting, And

8-3: Victoria’s Firms constantly look to increase the markets

When the economy flagged and consumers cut

8-4: Segmentation, Targeting, Positioning Previous chapters addressed how to plan

Have them choose either a manufacturer or

Have them describe their segmentation strategy

8-7: Geographic Segmentation Geographic information software (GIS) aids in

Many firms use regional brands of popular

When Dunkin’ Donuts introduced soup to its

Understanding regional preferences can define a

Ask students: How can firms successfully

This will tie to the previous chapter on global

They provide one of the most important

On the Census Bureau Website, walk students

8-10: Psychographic Segmentation Not just businesses segment their customers;

Recall the discussion during the last presidential

Group Activity: Divide students into groups.

Have each choose a product/service they like.

Have them describe users of that product/service

Group activity: Students complete the VALS

Ask students: Why might you fall into similar

For example, few business students likely

Ask students: Describe your neighborhood.

How accurately does the site depict your

You can play this video about State Farm

8-14: Benefit Segmentation Group activity: Have students identify products

How else might these products be segmented?

This activity provides a good opportunity to

Different motives lead different consumers to

8-15: Behavioral Segmentation Firms encourage loyalty in various ways, such

Ask students: Are you a loyal buyer of any

Students may refer to soft drinks, but true brand

8-16: Check Yourself 1. Geographic, Demographic, Psychographic,

Is the segment identifiable, substantial,

8-18: Identifiable Ask students: When would these women all be

When would they be in different segments?