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Marketing Canadian 9Th Edition Crane Solutions Manual Full Chapter PDF
Marketing Canadian 9Th Edition Crane Solutions Manual Full Chapter PDF
Solutions Manual
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9
MARKET SEGMENTATION, TARGETING, AND POSITIONING
LEARNING OBJECTIVES
Figure 9-1 Market segmentation - linking market needs to an organization’s marketing program.
Figure 9-2 Market-product grid showing the types of bed pillow segments and their relative sizes as
percentage of total market.
Figure 9-3 The five key steps in segmenting and targeting markets link market needs of customers to
the organization’s marketing program.
Figure 9-4 Segmentation variables and breakdowns for Canadian consumer markets.
Figure 9-6 Selecting a target market for your fast-food restaurant next to an urban university.
Figure 9-8 Using positioning and perceptual maps to increase milk sales to children and adults.
Figure 9-9 Strategies for positioning dairy drinks for kids and repositioning chocolate milk to reach
adults. The strategy that dairies are using to reposition chocolate milk to reach adults:
Have adults view chocolate milk both as more nutritional and more “adult”.
Figure 9-10 Linear trend extrapolation of sales revenues of Acme Corporation, made at the start of
2000.
▪ ZAPPOS.COM IS NOW OWNED BY AMAZON.COM AND THE WORD ZAPATOS IN SPANISH MEANS
SHOES.
PEOPLE WHO WANT THE CONVENIENCE OF BUYING ONLINE, AS WELLAS GREAT CUSTOMER
SERVICE. IT OFFERS FREE SHIPPING BOTH WAYS AND RECENTLY ADDED LINES OF CLOTHES,
TONY HSIEH, OFFERS $2000 TO ANYONE COMPLETING THE TRAINING WHO WANTS TO LEAVE
▪ THERE ARE TEN ‘CORE VALUES’ THAT ARE THE FOUNATION OF ZAPPOS CULTURE, BRAND AND
MARKET SEGMENTATION.
GROUPS THAT (1) HAVE COMMON NEEDS AND (2) WILL RESPOND SIMILARLY TO A
PROSPECTIVE BUYERS.
THINGS:
MIX FACTORS.
PRODUCT LINES.
MARKETS WHEN THIS ACTION WILL INCREASE ITS PROFIT AND RETURN ON
LEARNING REVIEW
LO3 Recognize the different factors used to segment consumer and organizational
(business) markets.
A MARKETING MANAGER SHOULD DEVELOP SEGMENTS THAT MEET FIVE
KEY CRITERIA:
SURVEY CONDUCTED BY ZINC RESEARCH IDENTIFIED FIVE KEY SOCIAL MEDIA SEGMENTS:
ALSO, ENVIRONICS SEGMENTED CANADIAN SOCIAL MEDIA USERS INTO PRODUCERS OF CONTENT,
• GEOGRAPHIC SEGMENTATION
• DEMOGRAPHIC SEGMENTATION
• PSYCHOGRAPHIC SEGMENTATION
• BEHAVIOURAL SEGMENTATION
- DAY COMMUTERS
- NIGHT COMMUTERS
INCLUDING:
BUY)
LO4 Know how to develop a market-product grid to identify a target market and
recommend resulting actions.
ROWS) AND PRODUCTS (OR COLUMNS) IN A GRID AND THEN ESTIMATING THE SIZE
GOING ONLINE
SELECTION PROCESS AND (2) APPLYING THESE CRITERIA TO CHOOSE THE TARGETS.
SEGMENTATION PROCESS:
THE SEGMENT.
OFFERS.
EFFORTS. THESE ARE THE TARGET MARKET SEGMENTS. THE FAST FOOD.
▪ WHAT DO YOU THINK ABOUT FIRING CUSTOMERS? DOES A COMPANY HAVE THE RIGHT
LEARNING REVIEW
3. WHAT ARE SOME CRITERIA USED TO DECIDE WHICH SEGMENTS TO CHOOSE FOR
TARGETS?
ANSWER: CRITERIA USED TO SELECT TARGET MARKET SEGMENTS INCLUDE MARKET
SIZE, EXPECTED GROWTH, COMPETITIVE POSITION, COST OF REACHING THE
SEGMENT, AND COMPATIBILITY WITH THE ORGANIZATION'S OBJECTIVES
AND RESOURCES.
MARKET.
INVOLVES USING THE LAST KNOWN VALUE AND THEN MODIFYING IT ACCORDING
FOR A FORECAST.
C. STATISTICAL METHODS
PAST DATA INTO THE FUTURE. LINEAR TREND EXTRAPOLATION IS WHEN THE
1. What variables might be used to segment these consumer markets? (a) lawnmowers, (b) frozen
dinners, (c) dry breakfast cereals, and (d) soft drinks
2. What variables might be used to segment these industrial markets? (a) industrial sweepers, (b)
photocopiers, (c) computerized production control systems, and (d) car rental agencies.
a. Amount of floor area to sweep, kind of refuse to collect (dust, paper, metal
shavings), environment (factory, shopping mall).
b. Average number of copies per day, clarity of image, use (copy, reduction,
enlargement).
3. In Figure 9-6 the dormitory market segment includes students living in college-owned residence
halls, sororities, and fraternities. What market needs are common to these students that justify com-
bining them into a single segment in studying the market for your Wendy's restaurant?
Answer: Market needs common to students in college-owned residence halls, sororities, and
fraternities that may justify combining them are probably the presence of meal
contracts and, hence, their need for specific meals during the same times of the day
or day of the week.
4. You may disagree with the estimates of market size given for the rows in the market-product grid in
Figure 9-6. Estimate the market size and give a brief justification for these market segments: (a)
dormitory students, (b) day commuters, and (c) people who work in the area.
Answer: Students can develop their own estimates, say, for their own college. Some
reasons for variations in the size of the market segments include:
a. They probably have a meal contract for dinner and may have one for
lunch. So other meals represent larger potential for fast food restaurants.
Instructor’s Manual to accompany Marketing, 9ce 15
Copyright © 2014 McGraw-Hill Ryerson Ltd.
b. These students will generally be gone by mid-afternoon, which reduces
sales for dinners and after-dinner meals.
c. Biggest market for this group — assuming they have a lunch period they
can take outside their building — is lunch.
5. Suppose you want to increase revenues for your fast food restaurant even further. Referring to
Figure 9-7, what advertising actions might you take to increase revenues from (a) dormitory
students, (b) dinners, and (c) after-dinner snacks from night commuters?
Answer: Advertising actions to increase revenues from these segments might be:
6. Find examples of some good positioning statements used by successful Canadian companies. Why
would you deem the pones you located as being ‘good examples’?
Answer: Students can come up with different examples. The bottom line here is that they
understand what a position statement is a how it is applied in practice.
7. For which of the following variables would linear trend extrapolation be more accurate? (a) Annual
population of Canada, or (b) annual sales of cars produced in Canada by General Motors. Why?
Answer: The annual population growth of Canada has demonstrated a relatively linear
growth for many years and the influences are relatively predictable (birth rate,
immigration, death rate, and emigration). Sales at GM of Canada have been
declining for many years but the influences are much more difficult to predict
(design, consumer taste, reliability, existing competition, new competition, and
endorsements from the automotive press); hence, the birth rate would lend itself to
linear trend extrapolation much better than GM sales.
YOUR MARKETING PLAN NEEDS (A) A MARKET-PRODUCT GRID TO FOCUS YOUR MARKETING
EFFORTS AND ALSO (B) LEADS TO A FORECAST OF SALES FOR THE COMPANY. USE THESE STEPS:
1. DEFINE THE MARKET SEGMENTS (THE ROWS OF YOUR GRID) USING THE FACTORS IN
FIGURES 9-4 OR FIGURE 9-5. ALSO SEE FIGURE 9-2 FOR HOW TO FORM THE MARKET-PRODUCT
GRID.
2. DEFINE THE GROUPINGS OF RELATED PRODUCTS (THE COLUMMS IN YOUR GRID).
3. FORM YOUR GRID AND ESTIMATE THE SIZE FO THE MARKET IN EACH MARKET-PRODUCT
CELL.
4. SELECT THE TARGET MARKET SEGMENTS ON WHICH TO FOCUS YOUR MARKETING PROGRAM
EFFORTS.
5. USE THE INFORMATION AND THE LOST-HORSE FORECASTING TECHNIQUE TO MAKE A SALES
FORECAST (COMPANY FORECAST).
6. ALSO, TAKE AN INITIAL SHOT AT CRAFTING YOUR POSITIONING STATEMENT.