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Hunt / Mello:
Instructor’s Manual - Chapter 7
Marketing
CHAPTER FORECAST
This chapter explores the importance of market segmentation, targeting, and positioning. You are highly
unlikely to achieve marketing success trying to be all things to all consumers. Your ability to effectively
segment and target specific markets with a positioning strategy that appeals to those targeted consumers is
at the heart of marketing. This chapter discusses the bases for segmenting markets, the criteria for successful
market segmentation, and strategies for targeting and positioning your organization’s products. As you read
through the chapter, consider the following key questions:
1. What is market segmentation and how does it 5. What strategies should I use when targeting
affect marketing success? where I want to work after college?
2. How can I divide the marketplace into 6. What strategies can I use to reach my target
manageable parts? market?
3. How does international market segmentation 7. Which target markets are most likely to create
differ from domestic market segmentation? ethical challenges?
4. What makes a segment a viable option for me 8. How am I positioning myself for the career that
to target? I want?
EXECUTIVE PERSPECTIVE
Cornelius Lovelace
Executive Director, Fitness Bootcamp Unlimited
1. What has been the most important thing in making you successful at
your job?
2. What advice would you give soon-to-be graduates?
3. How is marketing relevant to your role at Fitness Bootcamp Unlimited?
4. What do you consider your personal brand to be?
Later in the chapter you will see how Cornelius elaborates on:
The most important part of segmentation in business (p. 199).
LEARNING OBJECTIVES
LO 7-1 Explain the importance of effective market segmentation.
LO 7-2 Describe the four bases for segmenting markets.
LO 7-3 Summarize the elements of international market segmentation.
LO 7-4 Discuss the criteria for successful market segmentation.
LO 7-5 Describe the strategies for selecting target markets.
LO 7-6 Compare the most common target marketing strategies.
LO 7-7 Summarize the ethical issues in target marketing.
LO 7-8 Outline the three steps of effective market positioning and explain why firms may choose to use
repositioning strategies.
KEY TERMS
80/20 rule (p. 200) global segmentation (p. 204) psychographic segmentation
behavioral segmentation (p. lifestyle segmentation (p. 199) (p. 199)
200) market segmentation (p. 192) regional segmentation (p. 205)
demographic segmentation (p. market segments (p. 193) repositioning (p. 215)
193) niche marketing (p. 209) target market (p. 207)
differentiated targeting (p. perceptual map (p. 212) targeting (p. 207)
209) positioning (p. 212) undifferentiated targeting (p.
geographic segmentation (p. positioning statement (p. 214) 209)
196) unique segmentation (p. 205)
CONTENT OUTLINE
The following section provides the flow of information using the LEARNING OBJECTIVES as a guide, FIGURES
and TABLES as visuals to elaborate on key areas, KEY TERMS learners will need to take away from the course
and a notation of when to use POWERPOINT SLIDES with LECTURE NOTES to drive home teaching points.
There is also a reminder on when CONNECT activities can be used, as well as tying in SOCIAL MEDIA IN
ACTION to real-world applications of marketing products. This is created so that you can facilitate in-class or
online discussion effectively.
meaningfully shared
characteristics.
Market segments are
the relatively
homogenous groups
of consumers that
result from the
segmentation process.
Market segmentation
plays an important
role in the success of
almost every
organization in the
U.S. and throughout
the world.
Market segmentation
helps firms navigate
consumer needs and
wants in three major
ways:
Market segmentation
helps firms define the
needs and wants of
the customers who
are most interested in
buying the firm’s
products.
Market segmentation
helps firms design
specific marketing
strategies for the
characteristics of
specific segments.
LO 7-1: Market segmentation
helps firms decide
how to allocate their
marketing resources
in a way that
maximizes profit.
LO 7-2 Describe the four bases for segmenting markets. Key Terms:
Segmentation Bases Demographic
o Demographic segmentation
Age Geographic
Gender segmentation
Income Psychographic
Family Size and Marital Status segmentation
o Geographic Lifestyle
Market Size segmentation
Customer Convenience Behavioral
Population Shifts segmentation
o Psychographic 80/20 rule
Lifestyle
VALS Network
o Behavioral
o Business-to-Business Segmentation Bases
The Role of Social Media in Market Segmentation
Figure 7.1 Insight Questions:
1. How do marketers use
segmentation bases?
(Answer: to divide the
market into segments
based on buying
behaviors.)
2. Why is segmentation
necessary? (Answer:
Marketers who try to
be all things to all
Figure Information: Four Bases of Segmentation
Age is an especially
valuable
segmentation tool in
areas such as food,
housing, and health
care because older
Americans spend
significantly more
than younger
consumers.
The median age for
residents of the U.S. is
the highest in the
history of the country,
providing marketers
with expanding
market segments of
older Americans for
their products that
represent billions of
dollars in potential
sales.
Men and women, of
course, each make up
approximately half of
the U.S. population,
and gender is a
valuable
segmentation variable
for products ranging
from clothing to soft
drinks to medications.
Marketers are also
expanding beyond
traditional gender
segmentation as new
trends shift marketing
dollars away from
male- or female-
oriented marketing to
try to appeal to both
genders.
Income affects
consumers’ ability to
buy goods and
services and provides
marketers with a
valuable
segmentation tool.
Family size and
Segmenting by
geography also allows
marketers to
capitalize on
convenience to the
customer.
Geographic
segmentation can be a
valuable tool for
understanding
population changes
across different
regions of the country.
The number of
members each state
has in the United
States House of
Representatives is
determined by
population and
calculated every 10
years following the
census.
Economic recession,
retirement, and even
natural disasters can
cause people to move.
The science of using
psychology and
demographics to
segment consumers is
called psychographic
segmentation.
Psychographic
segmentation allows
marketing
professionals to
create a more
meaningful profile of
market segments by
focusing on how those
psychological traits
intersect with
demographic
characteristics.
When marketers
segment based on
psychographics, the
market is divided into
groups according to
9 Instructor’s Manual – Chapter 7 | Hunt / Mello: Marketing © 2015 by McGraw-Hill Education
Hunt / Mello:
Instructor’s Manual - Chapter 7
Marketing
resources, such as
self-confidence, as
well as key
demographics, such as
income and
education) affects
each group’s ability to
act on its primary
motivation.
Psychographic
segmentation can be
more difficult and
expensive than
demographic or
geographic
segmentation.
Segmentation by
behavior involves
categorizing
customers based on
what they actually do
with their goods and
services and divides
consumers according
to how they behave
with or act toward
products.
Behavioral
segmentation
variables include
occasions, loyalty and
usage rate.
When done well,
behavioral
segmentation helps
marketers clearly
understand the
benefits sought by
different consumer
segments.
Behavioral
segmentation is often
the most difficult of
the four bases to use
because the
marketing research
required to track and
understand how
consumers behave
with a certain product
as Facebook and
Twitter with a larger
and more diverse
consumer base.
Questions remain as
to exactly how to
engage consumers on
social networking sites
and, more
importantly, whom to
engage.
Connect Topic: VALS
Assignment 7-1
Complete the Connect exercise for Chapter 7 that focuses on the eight VALS
segments. By identifying which goods and services are most attractive to specific
segments, you will better understand how segmentation provides useful insights
that can impact marketing strategy.
Incorporate This Activity into Your Course. For tips on how to incorporate this
Connect: Social Media in Action exercise into your lesson, click here to access the
Interactive Assignment Guide.
Insight Questions:
1. Why do different countries require different VALS frameworks?
2. As a marketer for an international company how would you use the VALS
framework to best position your product?
Connect Topic: Segmentation
Assignment 7-2
The Social Media in Action Connect exercise in Chapter 7 will let you develop social
media strategies to target specific market segments in the U.S. and international
markets. Segmentation and targeting are at the heart of successful marketing, and
social media provide marketers from organizations of all sizes powerful tools to
reach consumers more efficiently and effectively.
Incorporate This Activity into Your Course. For tips on how to incorporate this
Connect: Social Media in Action exercise into your lesson, click here to access the
Interactive Assignment Guide.
Insight Questions:
1. What are ways a marketer can segment a market?
2. How can social media reach consumers more effectively and efficiently?
3. In what specific ways can social media target different consumers?
Social Media in Example: Mobily
Action
The use of social media has grown significantly in recent years throughout the
Middle East. Companies like Saudi Arabian telecommunications giant Mobily
increasingly use Twitter instead of traditional advertising to reach customers. Saudi
Arabia has the highest number of Twitter followers of any country in the Arab world.
Social media use has more than tripled in the region in recent years, partly because
it gives Arab consumers a forum in which to talk to each other in a way that was not
possible before.
Egypt has also jumped on the social media band wagon. Twitter formed a
partnership with the Egyptian digital advertising company Connect Ads to market
and sell advertising services across the Middle East. Firms that have signed up for
this service include Mobily, Pepsi Arabia, and the resort company Atlantis the Palm.
Insight Questions:
1. For a firm that has never used a social media platform such as Twitter, how
would you instruct their organization on incorporating it into their marketing
plan?
2. When does it make sense for a firm to incorporate social media into their
marketing plan?
LO 7-3 Summarize the elements of international market segmentation. Key Terms:
International Market Segmentation Global
o International Segment Bases segmentation
o International Market Segments and the Marketing Mix Regional
segmentation
Unique
segmentation
PowerPoint LO 7-3: Lecture Notes:
Slides Even with the help
social media platforms
provide in reaching
international markets,
international market
segmentation is a
costly exercise, and
often a very difficult
one.
Accessing
demographic,
geographic,
psychographic, and
behavioral
information can be
challenging. Even
demographic
information, which is
typically the easiest to
acquire, may be slow
in coming or
completely
unavailable.
Not all countries
collect or classify their
data in the same way,
making it all but
impossible to
compare
characteristics across
nations.
Even if marketing
professionals obtain
the information they
seek, each nation and
region has its own
unique features that
make establishing
quality market
segments
problematic.
Firms typically
segment international
markets using three
general bases: global,
regional, and unique.
Global segmentation
is used when the firm
can identify a group of
consumers with
common needs and
wants that spans the
entire globe.
Global segmentation
usually results in
market segments
made up of young
people, those that
have more money to
spend, or those with
access to the Internet.
Regional
segmentation may be
used when the
similarity in needs and
wants only extends
across the region or
several countries.
Firms will often use
this when they want
to capitalize on the
financial savings of
global segmentation
but still adjust for
local customs and
culture.
If a firm wants to
completely localize, it
15 Instructor’s Manual – Chapter 7 | Hunt / Mello: Marketing © 2015 by McGraw-Hill Education
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Instructor’s Manual - Chapter 7
Marketing
permits to serve a
certain market
segment, all of the
other criteria are
irrelevant.
o Actionable:
Marketers should
be able to develop
strategies that can
attract certain
market segments to
their firms’ goods
and services.
A firm should be
reasonably certain
that its marketing mix
can inform consumers
about the product,
how it adds value to
the consumer, and
ultimately how they
can purchase it.
Connect Topic: Market Segments
Assignment 7-3
Complete the Connect exercise for Chapter 7 that focuses on identifying quality
market segments. By understanding which segments are viable for a firm and why
others are not, you will better understand the criteria and process for effectively
segmenting the market.
Incorporate This Activity into Your Course. For tips on how to incorporate this
Connect: Social Media in Action exercise into your lesson, click here to access the
Interactive Assignment Guide.
Insight Questions:
1. What is the process for effectively segmenting a market?
2. For a new soft drink beverage company, what segments would be viable, and
which ones would not?
LO 7-5 Describe the strategies for selecting target markets. Key Terms:
Selecting Target Markets Targeting
Target market
to maximize sales.
The segments
selected are the firm’s
target markets.
A target market is the
group of customers
toward which an
organization has
decided to direct its
marketing efforts.
Firms should consider
three important
factors during the
targeting process:
Growth potential: The
higher the future
growth rate, the more
attractive the segment
is.
Level of competition:
The more intense the
competition within a
segment, the less
attractive it is to
marketers.
Competitors will fight
extremely hard to
prevent market share
loss, and the potential
for price wars can
negatively impact
success.
Generally, more
competitors means a
firm has to work
harder and invest
more in promotion to
earn business and
increase market share.
When considering two
market segments in
which other factors,
such as size and
growth potential, are
constant, the one with
a less competitive
environment is more
attractive.
Strategic fit is the
third factor to
19 Instructor’s Manual – Chapter 7 | Hunt / Mello: Marketing © 2015 by McGraw-Hill Education
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Instructor’s Manual - Chapter 7
Marketing
consider: Marketers
should work to ensure
that the target
markets selected fit
with what the
organization is and
wants to be as defined
in its mission
statement.
The SWOT analysis
provides an excellent
framework to
determine if a firm
will be successful
targeting a specific
segment.
Selecting an
appropriate target
market is crucial to a
successful marketing
strategy.
Regardless of how
clever and innovative
a firm’s marketing mix
may be, if it targets
the wrong consumers,
the product will fail.
LO 7-6 Compare the most common target marketing strategies. Key Terms:
Target Marketing Strategies Undifferentiated
o Undifferentiated Targeting targeting
o Differentiated Targeting Differentiated
o Niche Marketing targeting
Niche marketing
PowerPoint LO 7-6: Lecture Notes:
Slides Once the marketing
department has made
the decision on which
market segments are
best to target the firm
must develop a
strategy for reaching
those segments.
The three basic
strategies for
targeting markets
include:
undifferentiated
targeting,
differentiated
simultaneously
pursues several
different market
segments, usually with
a different strategy for
each.
Firms that market the
same product to
multiple regions with
different preferences
often use
differentiated target
marketing.
A firm marketing to a
region outside the
U.S. may also need to
modify products
according to local
government
regulations and
cultural preferences.
Consumers of niche
marketing products
typically have very
specialized needs and
will pay higher prices
to meet those needs.
Niche marketing
involves targeting a
large share of a small
market segment.
There can be multiple
niche markets within
the same product
category.
LO 7-7 Summarize the ethical issues in target marketing. Key Terms:
Ethical Issues in Target Marketing (none)
PowerPoint LO 7-7: Lecture Notes:
Slides Regardless of what
target marketing
strategy firms use,
they must keep in
mind the growing
ethical concerns
around targeting
some market
segments, in
particular children,
non-native language
organizations have
been formed to
promote ethical
marketing to children,
and marketers should
consider the ethical
implications of any
target marketing
strategies they
implement.
LO 7-8 Outline the three steps of effective market positioning and explain why Key Terms:
firms may choose to use repositioning strategies. Positioning
Market Positioning Perpetual map
o Step 1: Analyze Competitors’ Positions Positioning
o Step 2: Clearly Define Your Competitive Advantage statement
o Step 3: Evaluate Feedback Repositioning
o Positioning Statement
o Repositioning
Repositioning and the Marketing Mix
Repositioning the Competition
Figure 7.4 Insight Questions:
1. How do marketers use
perceptual maps?
(Answer: Perceptual
maps provide
guidance on potential
market positions that
might be
underserved.)
2. What does the
perceptual map for
cellphone carriers
show? (Answer: open-
ended; one of the
reasons wireless
provider T-Mobile
decided to promote
Figure Information: Sample Perceptual Map for new service plans that
Cellphone Carriers did not require an
annual contract in
A perceptual map creates a visual picture of where 2013.)
products are located in consumers’ minds. Marketers
can develop a perceptual map based on marketing
research or from their knowledge about a specific
market. This perceptual map illustrates the domestic
cellphone carrier market.
PowerPoint LO 7-8: Lecture Notes:
Slides Success within the
target market
depends, to some
24 Instructor’s Manual – Chapter 7 | Hunt / Mello: Marketing © 2015 by McGraw-Hill Education
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Marketing
A perceptual map
creates a visual
picture of where
products are located
in consumers’ minds.
Marketers can
develop a perceptual
map based on
marketing research or
from their knowledge
about a specific
market.
Perceptual maps
provide guidance on
potential market
positions that might
be underserved.
The second
positioning step is to
define your
competitive
advantage.
Great marketers
understand
competitive
advantage, that is,
why consumers buy
their firm’s goods and
services; they know
that consumers must
have a clear answer to
the question of why
they should buy the
product.
There are a number of
positioning strategies
available to highlight a
firm’s competitive
advantage, including
price/quality
relationship,
attributes, and
application.
The third step in
market positioning is
constantly evaluating
consumer feedback.
Just as fashion styles
change, consumer
tastes for almost
26 Instructor’s Manual – Chapter 7 | Hunt / Mello: Marketing © 2015 by McGraw-Hill Education
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Marketing
everything, including
cars, food, and even
educational learning
formats, change.
The firm must then
determine how to
succinctly
communicate the
market position it has
chosen, first to its own
organization and then
to the world.
A positioning
statement consists of
a succinct description
of the core target
market to which a
product is directed
and a compelling
picture of how the
firm wants that core
market to view the
product.
A successful
positioning statement
should clearly reflect
the steps of the
positioning process,
including the
competitive
advantages of the
product.
Positioning
statements should be
short to facilitate
communication and
enhance the
likelihood that
stakeholders and
consumers will
understand the
desired message.
Firms that maintain
the same position
year after year, even if
it has been successful,
can lose touch with
changing customer
preferences.
Repositioning involves
reestablishing a
product’s position to
respond to changes in
the marketplace.
Repositioning typically
involves changing one
or more marketing
mix elements, often
product or promotion.
Sometimes marketers
choose to reposition
the competition
rather than change
their own position.
Incorporate This Activity into Your Course. For tips on how to incorporate this
Connect: Social Media in Action exercise into your lesson, click here to access the
Interactive Assignment Guide.
Insight Questions:
1. Identify the steps in the market positioning process. Which steps are the most
critical?
2. What decisions are made at each step in the market positioning process?
TODAY’S PROFESSIONAL
Jonathon Looney
Outside Sales Associate, Automatic Data Processing (ADP)
How can I best position myself for a job with one of these organizations?
What classes have I taken or experiences have I had that position me for the graduate school I want
to attend?
DISCUSSION QUESTIONS
1. Choose a company you have worked for or would like to work for and discuss how market
segmentation can benefit it. Does that company do a good job segmenting today? Why or why not?
2. Select a product that you use almost every day and explain how each of the major segmentation
bases can be applied to you as a consumer of that product. What insights can each segmentation
base provide to firms to help them develop a marketing mix that would win your business? (For
example, you might say that geographic segmentation would help a firm market heavy coats to you
because you live in a cold climate.)
3. Select a market segment for fast food. First, describe the segment. Then explain how the segment
meets all five of the criteria to be considered an effective market segment.
4. Assume that your university is looking to increase enrollment. Choose the best targeting strategy
(undifferentiated, differentiated, or niche) for achieving this goal and describe how it will be effective
in bringing more students to your campus.
5. Select a company that you think has successfully positioned its products and describe why it has
been successful. Next, select a company that you think has done a poor job positioning its products
and explain why it hasn’t been successful.
6. Select one firm that you think needs to reposition itself. Describe what you think isn’t working about
its current position and then provide three specific recommendations for how it could reposition
itself for a successful future.
1. Select 20 friends, followers, or connections that you have on any social media platform and segment
them as if they are potential customers of the product you have chosen to market. You need to
identify at least three different segments.
2. What variables did you use to segment the potential customers?
3. How were social media helpful to you in assigning each person to a specific segment?
4. Decide which segment of the three you are going to target your marketing efforts to. Why did you
make that decision?
5. How can social media help you reach the targeted consumers with your marketing message?
ETHICAL CHALLENGE
Currently, users under the age of 13 are not permitted to create profiles on Facebook. Although many tweens
lie about their age and create profiles (a ComScore survey indicated that 7.5 million Facebook users are
younger than 13), because Facebook can’t identify users under 13, advertisers can’t use Facebook to reach
this demographic.
Allowing tweens to create profiles could reinvigorate Facebook’s slowing growth. But Facebook has already
come under fire for privacy issues, and it may want to avoid exposing itself to potential allegations about
exploiting or failing to protect children. In addition, The Children’s Online Privacy Protection Act (COPPA)
would require Facebook to allow parents to elect not to have their children’s online activities tracked. If
parents took advantage of this option, Facebook would have limited data and access to offer advertisers,
compromising its ability to profit from the preteen demographic. As a result, Facebook must weigh many
risks and potential benefits in deciding whether to open up to tweens. Please use the ethical decision-making
framework to answer the following questions:
1. Why do some people feel that Facebook shouldn’t target children under 13? Do you agree?
2. Despite the current policy, surveys suggest that millions of children under the age of 13 lie about
their age and use Facebook. How should Facebook, parents, and children share the responsibility for
any adverse consequences the children might experience? Would the risk of such consequences be
lessened if Facebook allowed children to have profiles?
3. What risks, costs, and benefits should Facebook consider in deciding whether to allow preteen
users? To what extent should Internet companies be held accountable for children’s online safety?
VIDEO CASE
Please go to Connect to access the video case that accompanies this chapter.
Incorporate This Activity into Your Course. For tips on how to incorporate this Connect: Social Media in
Action exercise into your lesson, click here to access the Interactive Assignment Guide.
CAREER TIPS
To help you position yourself for career success follow these tips.
Dr. Shane Hunt, Author and Associate Professor of Marketing at Arkansas State
University, suggests three major stages of your life at which successfully
positioning yourself will help you have the career you desire.
Helpful Suggestions Regarding Assignment Policies: Connect gives instructors a wide array of flexibility
in making assignments and creating grading policies. Instructors may choose to:
Recommendations: Here are some recommendations you might want to consider if you are using
Connect for the first time.
Assigning Learning Objective Videos: Learning Objective Videos are designed to reinforce core
concepts in the chapter. These are assignable by Learning Objective and require students to
view a brief video customized to match the content in the book. After watching the video,
students are tested on their understanding of these concepts through 4–6 Concept Check
questions. It is recommended that you assign Learning Objective Videos before class to help
generate class discussion. You can choose to have this feature feed the gradebook.
Assigning Interactives: Consider assigning only 1 or 2 interactives per chapter.
Pooling Interactives: You have the option of “pooling” questions from three groups of questions
(a, b, and c). Choosing all three questions and assigning them as “pools” allows Connect to serve
up a different version of the interactive to different students. In this way, two students working
the “same problem” might have slightly different versions. This provides a higher level of
integrity of students’ individual work. Setting up question pools is recommended.
Assigning LearnSmart: You might also
want to assign less than an entire
chapter segment of LearnSmart in
Connect. The system allows you to do
this by dragging the toggle lever left
or right to increase or decrease the
time of the activity. You can also
reduce the time based on which
learning objectives you select and
deselect for the chapter.
LearnSmart access; it is designed to show you that the student has taken the LearnSmart
assignment. LearnSmart is an adaptive study tool designed for students. It can also show you
where students are struggling to understand specific concepts.
The student’s LearnSmart score in the Connect reports is based on her or his mastery of the
material at the time the assignment is due. Mastery is an evaluation of the number of learning
objectives she or he completed via performance on answering questions.
Students may, and are encouraged to, continue to use LearnSmart throughout the semester.
After the assignment due date, they can continue to access LearnSmart. Continued use of
LearnSmart will not affect their LearnSmart assignment results in the Connect reports, but has
been shown to improve test scores by as much as a full letter grade.
Time-Saving Hints:
Instructors may want to give students unlimited or multiple attempts on the first few
assignments so the students have a chance to learn and navigate the system before selecting
the option for one attempt only.
one another. It might be wise to assign different versions to different sections or select
“scramble” assignment questions.
Feedback given to students is time flexible. Selecting feedback to be displayed after the
assignment due date helps to prevent students from giving the correct answers to other
students while the interactive is still available.
Interactives:
Interactive Assignment 7-1
Interactive Assignment 7-2: Social Media in Action
Interactive Assignment 7-3
Interactive Assignment 7-4
Video Case featuring Marriott
Activity Summary: This activity involves the VALS framework and its importance to marketers.
Students will have to match different market segments of a department store to the appropriate VALS
category. A concept review includes a discussion of the background of the VALS framework.
Learning Objectives:
LO 7-2 Describe the four bases for segmenting markets.
Difficulty: 2 Medium
AACSB: Analytic
Blooms: Understand
Follow-Up Activity: Instructors could discuss which VALS category the students fall into. Students could
be asked to create a larger list of individual companies that are targeting each of the specific VALS
categories. Instructors could also engage students in a debate or assignment involving which of the
VALS categories has been impacted the most by recent economic events.
Activity Summary: This activity involves the role social media has in effective market segmentation.
Students will be given a scenario where they have to match different social media tactics to the
appropriate international marketing segmentation base. A concept review includes several reasons why
social media is becoming increasingly helpful for global market segmentation.
Learning Objectives:
LO 7-2 Describe the four bases for segmenting markets.
LO 7-3 Summarize the elements of international market segmentation.
Difficulty: 2 Medium
AACSB: Technology
Blooms: Understand
Follow-Up Activity: Instructors could discuss how social media is helping foreign companies segment the
U.S. market better. Instructors could also engage students in a debate or assignment involving whether
social media is more effective and important in segmenting domestic consumers or international
consumers.
Activity Summary: This activity involves the criteria for an effective market segment. Students will be
presented with descriptions of various market segments and have to identify which criterion is not being
met by each. A concept review follows on the five criteria necessary for an effective market segment.
Learning Objectives:
LO 7-1 Explain the importance of effective market segmentation.
LO 7-4 Discuss the criteria for successful market segmentation.
Difficulty: 2 Medium
AACSB: Analytic
Blooms: Understand
Follow-Up Activity: Instructors could discuss different market segments within the class of students to
illustrate how different criteria are not met. Students could be asked to create a larger list of individual
products that market to segments that meet all five elements of the criteria. Instructors could also
engage students in a debate or assignment involving which of the five criteria is most commonly missing
from market segments.
Activity Summary: This activity involves the market positioning process. Students will be presented
with various decisions and asked to match each to the appropriate step in the market positioning
process. A concept review includes a discussion as to why market positioning is so important for
success.
Learning Objectives:
LO 7-8 Outline the three steps of effective market positioning and explain why firms may choose to use
repositioning strategies.
Difficulty: 2 Medium
AACSB: Analytic
Blooms: Understand
Follow-Up Activity: Instructors could discuss the position that leading brands occupy in their minds.
Students could be asked to create a larger list of individual companies that they believe are well
positioned and another list of companies they believe to be poorly positioned. Instructors could also
engage students in a debate or assignment involving how they can position themselves personally as
they enter a very competitive job market.
Activity Summary: This activity involves a video case featuring the segmentation strategies of Marriott.
Students will be presented with examples of how Marriott uses marketing strategies to target each of
their market segments with the most appropriate value proposition.
Learning Objectives:
LO 7-1 Explain the importance of effective market segmentation.
LO 7-2 Describe the four bases for segmenting markets.
Difficulty: 2 Medium
AACSB: Analytic
Blooms: Apply
Follow-Up Activity: Instructors could discuss the segmentation and positioning strategies of other
hotel/motel companies. Students could be asked to create a larger list of individual companies that use
a strategy similar to Marriott with their portfolio of products. Instructors could also engage students in
a debate or assignment involving how effective segmentation strategies like Marriott’s are.