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Chapter 09 - Market Segmentation, Targeting, and Positioning
CHAPTER CONTENTS
PAGE
POWERPOINT RESOURCES TO USE WITH LECTURES ........................................... 9-2
LEARNING OBJECTIVES (LO) ......................................................................................... 9-4
KEY TERMS ........................................................................................................................... 9-4
LECTURE NOTES
• Chapter Opener: Zappos.com Is Powered by Service, and Segmentation! .................. 9-5
• Why Segment Markets? (LO 9-1) ................................................................................ 9-6
• Steps in Segmenting and Targeting Markets (LO 9-2; LO 9-3; LO 9-4) ................... 9-11
• Positioning the Product (LO 9-5) ................................................................................ 9-24
APPLYING MARKETING KNOWLEDGE ...................................................................... 9-27
BUILDING YOUR MARKETING PLAN .......................................................................... 9-30
VIDEO CASE (VC)

• VC-9: Prince Sports, Inc.: Tennis Racquets for Every Segment ................................. 9-31
APPENDIX D CASE (D)

• D-9: Lawn Mowers: Segmentation Challenges ........................................................... 9-37
IN-CLASS ACTIVITIES (ICA)

• ICA 9-1: Honey Nut Cheerios® Milk ‘N Cereal Bar: Identifying Product Groups ..... 9-40
• ICA 9-2: 3M Post-it® Flag + Highlighter: Product Positioning for Consumers and
Retailers ........................................................................................................ 9-43
9-1
© 2017 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any
manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
POWERPOINT RESOURCES TO USE WITH LECTURES

PowerPoint
Textbook Figures Slide
Figure 9-1 Market segmentation links market needs to an organization’s marketing program
through marketing mix actions ...................................................................................... 9-6
Figure 9-2 A market-product grid shows the kind of sleeper that is targeted for each of the
bed pillows with a different firmness ............................................................................ 9-7
Figure 9-3 The five key steps in segmenting and targeting markets link market needs of
customers to a firm’s marketing program .................................................................... 9-12
Figure 9-4 Segmentation bases, variables, and breakdowns for U.S. consumer markets ................ 9-15
Figure 9-5 Patronage of fast-food restaurants by adults 18 years and older ................................... 9-17
Figure 9-6 Comparison of various kinds of users and nonusers for Wendy’s, Burger King, and
McDonald’s fast-food restaurants ................................................................................ 9-18
Figure 9-7 Segmentation bases, variables, and breakdowns for U.S. organizational markets ......... 9-21
Figure 9-8 Wendy’s new products and innovations target specific market segments based on a
customer’s gender, needs, or university affiliation ....................................................... 9-23
Figure 9-9 A market-product grid to select a target market for your Wendy’s fast-food
restaurant next to an urban university .......................................................................... 9-25
Figure 9-10 Advertising actions to reach specific student segments ................................................ 9-30
Figure 9-11 The strategy American dairies used to reposition chocolate milk to reach adults.......... 9-36
Figure 1 Video Case VC-9: Prince Sports targets racquets at specific market segments ............. 9-37
Selected Textbook Images (Ads, People, Products, and Websites)

Chapter Opener: Photo of the Zappos.com founder Tony Hsieh ....................................................... 9-4
Photos of four Sporting News Baseball Yearbook covers: What market segmentation strategy
is used? .............................................................................................................................................. 9-9
Video Case VC-9: Photos of Prince Sports, Inc. personnel and tennis racquet ................................ 9-37
Marketing Matters, Making Responsible Decisions, and/or Marketing Insights

Marketing Insights About Me: To Which “Flock” Do You Belong? ................................................ 9-16
Marketing Matters—Apple’s Segmentation Strategy ........................................................................ 9-31
9-2
POWERPOINT RESOURCES TO USE WITH LECTURES

PowerPoint
Slide
Videos
9-1: Zappos TV Video ....................................................................................................................... 9-4
9-2: Dave’s Hot ‘n Juicy Ad ............................................................................................................. 9-22
9-3: Apple’s 1984 Super Bowl Ad..................................................................................................... 9-32
9-4: Prince Sports Video Case .......................................................................................................... 9-37
In-Class Activities (ICA)

ICA 9-1: Honey Nut Cheerios® Milk ‘N Cereal Bar: Identifying Product Groups ........................... 9-44
ICA 9-2: 3M Post-it® Flag + Highlighter: Product Positioning for Consumers and Retailers .......... 9-46
9-3
LEARNING OBJECTIVES (LO)
After reading this chapter students should be able to:
LO 9-1: Explain what market segmentation is and when to use it.
LO 9-2: Identify the five steps involved in segmenting and targeting markets.
LO 9-3: Recognize the bases used to segment consumer and organizational (business) markets.
LO 9-4: Develop a market-product grid to identify a target market and recommend resulting
marketing actions.
LO 9-5: Explain how marketing managers position products in the marketplace.
KEY TERMS
80/20 rule product differentiation

market-product grid product positioning
market segmentation product repositioning
perceptual map usage rate
9-4
LECTURE NOTES
ZAPPOS.COM IS POWERED BY SERVICE – AND SEGMENTATION!
• Tony Hsieh showed signs of being an entrepreneur early in life. He’s now CEO of
online retailer Zappos.com.
• The name Zappos, is derived from the Spanish word zapatos that means shoes.
A. Segmentation is a Key to Success
• Zappos has a clear, specific market segmentation strategy: Focus on people who
will shop for and buy shoes online and like to use mobile technology.
• From limited initial selection of shoes, Zappos no offers more than 1,000 brand,
including clothing, accessories, beuty aids, and housewares.
• This focus has generated over $1 billion in sales annually.
• Zappos stresses in-home convenience: “With Zappos, the shoe store comes to
you…I can try the shoes in the comfort of my own home,” says one customer.
B. Delivering WOW Customer Service
• Asked about Zappos, Hsieh says, “We try to spend most of our time on stuff that
will improve customer-service levels.”
• All new Zappos employees go through 4 weeks of customer-loyalty training.
a. Hsieh offers $2,000 to anyone who wants to leave after the training.
b. The theory: If you take the money and run, you’re not right for Zappos.
• Ten “core values” are the foundation for the Zappos culture, brand, and business
strategies. Some examples:
#1. Deliver WOW through service. This focus on exemplary customer

service encompasses all 10 core values.
#3. Create fun and a little weirdness. In a Zappos day, cowbells ring,
parades appear, and modified-blaster gunfights arise.
#6. Build open and honest relationships with communications.

Employees are told to say what they think.
• The Zappos strategy illustrates successful market segmentation and targeting.
9-5
I. WHY SEGMENT MARKETS? [LO 9-1]

• A business firm segments its markets to respond more effectively to the wants of
groups of potential buyers to increase sales and profits.
• Not-for-profit organizations also segment the clients they serve to satisfy their needs
more effectively while achieving its goals.
A. What Market Segmentation Means
• Market segmentation involves aggregating prospective buyers into groups,

or segments, that (1) have common needs and (2) will respond similarly to a
marketing action.
• Market segments.
a. Are the relatively homogeneous groups of prospective buyers that result from
the market segmentation process.
b. Consist of people who are relatively similar to each other in terms of their:
• Consumption behavior. • Demographics.
• Media behavior. • Other segmentation base and/or variable.
• Different market segments cause firms to use product differentiation:
a. Is a marketing strategy that:

• Involves a firm using different marketing mix actions to…
• Help consumers perceive the product as being different and better than
competing products.
b. As the perceived differences, they may involve:

• Physical features, such as size or color.
• Nonphysical ones, such as image or price.
1. Segmentation: Linking Needs to Actions.
a. [Figure 9-1] The process of segmenting a market and selecting specific

segments as targets is the link between the various buyers’ needs and the
organization’s marketing program.
b. Market segmentation stresses two things:

• Forms meaningful groupings. People or organizations should be grouped
into a market segment according to:
– The similarity of their needs.
– The benefits they look for in making a purchase.
9-6
• Develops specific marketing mix (4 Ps) actions. This may involve:

– Separate offerings.
– Other aspects of the marketing mix, such as price, promotion, or
distribution strategies.
[Video 9-1: Zappos TV Video]

2. The Zappos.com Segmentation Strategy.
a. The Zappos.com target customer segment consists of people who want:

• A wide selection of shoes.
• To shop online in the convenience of their own homes.
• To receive the guarantee of quick delivery and free returns.
b. Zappos’ marketing actions include:

• Offering a huge inventory of shoes and other products.
• Using an online selling strategy.
• Providing overnight delivery.
c. These actions allow Zappos.com to:

• Create a positive customer experience.
• Generate repeat purchases.
– With over 8 million customers and 5,000 calls daily, Zappos.com
believes that their large number of repeat customers is due to…
– The speed with which an online customer receives the purchase.
• Add lines of clothing, handbags, and sunglasses to reach new segments.
3. Using Market Product Grids
a. Three key market segments of sleepers:

• Side sleepers. • Back sleepers. • Stomach sleepers.
b. Research indicates that the right pillow firmness results in better sleep.
• Soft pillows. • Medium pillows. • Firm pillows.
c. A market-product grid is a framework to relate the market segments of

potential buyers to products offered or potential marketing actions.
d. [Figure 9-2] Shows a market-product grid in which:

• The different market segments are in horizontal rows.
• The different product offerings appear in vertical columns.
9-7
• Reveals the size of each sleeper segment, as shown by the percentages and
the size of the circles.
• This tells marketers the relative importance of:
– Each of the three market segments when scheduling production.
– Firm pillows, a product targeted at the side sleeper market segment,
which is 3 times the size of the other two combined.
B. When and How to Segment Markets
• One-size-fits-all mass markets no longer exist.
• Procter & Gamble has a new segmentation strategy—offer products to reach:
a. High income families.
b. Low income families.
• A firm goes to the trouble and expense of segmenting its markets when it expects
that this will increase its sales, profit, and return on investment.
• When expenses are greater than the potentially increased sales from segmentation,
a firm should not segment its market.
1. One Product and Multiple Market Segments.
a. When a firm produces only a single product or service, it:

• Attempts to sell it to two or more market segments.
• Avoids the extra costs of developing and producing additional versions of
the product.
b. The incremental costs of taking the product into new market segments are
typically those of a:
• Separate promotional campaign.
• New channel of distribution.
c. Although these expenses can be high, they are rarely as large as those for
developing an entirely new product.
d. Examples:
• Sporting News Baseball Yearbook issue uses different covers in different
regions of the U.S. that features a baseball star from that region.
• Other examples of a single offering for multiple segments include books,
movies, and many services.
9-8
– Series such as Harry Potter, The Twilight Saga, and The Hunger
Games have success in part due to publishers’ creativity in marketing
to preteen, teen, and adult segments.
– Services such as Disney’s resort offer the same basic experience to at
least three different segments – children, parents, and grandparents.
2. Multiple Products and Multiple Market Segments.
a. Marketing different products is more expensive than producing just one but is
justified if it:
• Serves customers’ needs better. • Doesn’t increase price.
• Doesn’t reduce quality. • Adds to sales and profits.
b. A potential downside to a product differentiation strategy:

• The proliferation of different models and options can reduce quality and
raise prices.
• Example: The 1982 Ford Thunderbird had 69,120 options, compared with
32 options for the 1982 Honda Accord.
– Ford has reduced the number of frames, engines, and brands offered.
– This simplified product line provides two benefits to consumers:
* Lower prices through producing a higher volume of fewer models.
* Higher quality because of the ability to perfect fewer basic designs.
3. Segments of One: Mass Customization.
a. Each customer:
• Has unique wants and needs.
• Desires tender loving care.
b. Economies of scale in manufacturing and marketing during the past century:

• Made mass-produced products affordable.
• Encouraged customers to compromise their individual tastes and settle for
standardized products.
c. Mass customization.
• Involves tailoring products or services to the tastes of individual customers
on a high-volume scale.
• Made possible via Internet ordering as well as flexible manufacturing and
marketing processes.
• Is the next step beyond build-to-order.
9-9
d. Build-to-order (BTO) involves manufacturing a product only when a

customer places an order for it.
• Gives customers a good choice with quick delivery.
• Falls short of total mass customization because customers do not have an
unlimited number of features from which to choose.
4. The Segmentation Trade-Off: Synergies versus Cannibalization.
a. Successful product differentiation and market segmentation finds the ideal

balance between:
• Satisfying a customer’s individual wants.
• Achieving organizational synergy.
b. Organizational synergy is the increased customer value achieved through

performing organizational functions more efficiently.
c. This increased customer value can take many forms:

• More products.
• Improved quality.
• Lower prices.
• Easier access to products through improved distribution.
d. The ultimate criterion for an organization’s marketing success is that

customers should be better off as a result of the increased synergies.
e. The organization should also achieve increased revenues and profits from the
product differentiation and market segmentation strategies it uses.
f. Sometimes, this strategy can lead to cannibalization, which is the stealing of

customers and sales from an existing product or chain of retail stores.
g Marketers increasingly emphasize the two-tier “Tiffany/Walmart strategy”:

• Offer different variations of the same basic product or service to…
• High-end and low-end segments.
h. However, the lines between customer segments can often blur and lead to
problems.
i. Example: Ann Inc. competition between its Ann Taylor and LOFT stores.
• Ann Taylor stores target successful, affluent, fashion-conscious women.
• Ann Taylor LOFT stores target value-conscious women who want clothes
that fit a casual lifestyle at work and home.
• The LOFT stores ended up stealing sales from the Ann Taylor stores.
9-10
• More than 100 stores from both chains were closed.

• Both chains aggressively targeting their respective customer segments by
stressing online sales and opening new factory outlet stores.
9-11
j. Example: Walmart Neighborhood Market stores that are:

• One-fifth the size of its supercenters.
• Offers fresh produce, health and beauty supplies, household items,
gaoline, and a pharmacy.
• Intended to compete with the dollar chains and discount stores such as
Dollar General.
LEARNING REVIEW
9-1. Market segmentation involves aggregating prospective buyers into groups that
have two key characteristics. What are they?
Answer: The groups (1) should have common needs and (2) will respond similarly to a
marketing action.
9-2. In terms of market segments and products, what are the three market
segmentation strategies?
Answer: The three market segmentation strategies are: (1) one product and multiple
market segments; (2) multiple products and multiple market segments; and (3)
“segments of one,” or mass customization—the next step beyond build-to-order.
II. STEPS IN SEGMENTING AND TARGETING MARKETS [LO 9-2]

• [Figure 9-3] The process of segmenting a market and then selecting and reaching the
target segments is divided into five steps.
• Segmenting a market requires detailed analysis, large doses of common sense, and
managerial judgment.
• Example: A Wendy’s restaurant located next to a large urban university, one that
offers both day and evening classes.
A. Step 1: Group Potential Buyers into Segments
Grouping potential buyers into meaningful segments involves meeting some specific
criteria that answer these two questions:
• “Would segmentation be worth doing?”
• “Is segmentation possible?”
• If so, a marketer must find specific variables that can be used to create these
various segments.
9-12
1. Criteria to Use in Forming the Segments.
A marketer should develop segments for a market that meet five criteria:
a. Simplicity and cost-effectiveness of assigning potential buyers to segments.

• Need to cost effectively identify characteristics of potential buyers to…
• Assign them to a segment.
b. Potential for increased profit.

• If future profit and ROI are maximized without segmentation, don’t
segment.
• For nonprofit organizations, the criterion is the potential for serving clients
more effectively.
c. Similarity of needs of potential buyers within a segment.

• Potential buyers within a segment should be similar in terms of common
needs that, in turn, lead to a common marketing action.
• Examples: Product features sought or advertising media used.
d. Difference of needs of buyers among segments.

• If the needs of the various segments aren’t very different, combine them
into fewer segments.
• If increased sales don’t offset extra costs, combine segments and reduce
the number of marketing actions.
e. Potential of a marketing action to reach a segment.

• Reaching a segment requires a simple but effective marketing action.
• If no such action exists, don’t segment.
2. Ways to Segment Consumer Markets. [LO 9-3]
[Figure 9-4] There are four general segmentation bases, each with several
variables and breakdowns that can be used to segment U.S. consumer markets.
a. Geographic segmentation.
• Based on where prospective customers live or work (region, city size).
• Example: Campbell Soup Company produces spicier nacho cheese sauce
for the West and Southwest, and less spicy sauce for other regions.
b. Demographic segmentation. Based on some:

• Objective physical (gender, race).
• Measurable (age, income).
9-13
• Other classification attributes include birth era and household size.

• Example: Campbell packages meals with only one or two servings for
households made up of one or two persons—half of all U.S. households.
c. Psychographic segmentation. Based on some:

• Subjective mental or emotional attributes (personality).
• Aspirations (lifestyle).
• Needs of prospective customers.
• Nielsen’s lifestyle segmentation is based on the belief that “birds of a
feather flock together.”
• People of similar lifestyles tend to live near one another, have similar
interests, and buy similar offerings. This is of great value to marketers.
MARKETING INSIGHTS ABOUT ME

To Which “Flock” Do You Belong?
Nielsen Claritas’ PRIZM classifies U.S. households into one of 66 demographically

and behaviorally distinct neighborhood segments to identify lifestyles and purchase behavior
within a defined geographic market area such as zip code. Want to know what your
neighborhood is like? Go to www.MyBestSegments.com for a profile of where you live.
d. Behavioral segmentation.
• Based on some observable actions or attitudes by prospective customers:
– Where they buy. – How frequently they buy.
– What benefits they seek. – Why they buy.
• Product features.
– Consist of product features, quality, service, and warranty.
– Understanding what benefits are important to different customers:
* Is a useful way to segment markets because they…
* Lead to specific marketing actions like a new product, ad
campaign, or distribution system.
• Usage rate.
– Is the quantity consumed or patronage (store visits) during a specific
period.
– Can vary significantly among different customer groups.
– Frequency marketing is a program that encourages consumers to use
the product or service repeatedly.
– Is central to segmentation analysis.
9-14
e. A recent study analyzed which segmentation bases were used by the 20

percent most profitable of the 220 organizations surveyed:
• Geographic bases: 88 percent. • Demographic bases: 53 percent.
• Behavioral bases: 65 percent. • Psychographic bases: 43 percent.
• Most firms used more than one segmentation base.
f. To obtain usage rate data, Experian Simmons:

• Surveys over 25,000 adults 18 years of age and older each year.
• Obtains quarterly, projectable usage rate data from the U.S. national
population for…
– More than 500 consumer product categories.
– 8,000-plus brands.
• Discover how the offerings they buy and the media they use…
• Relate to their behavioral, psychographic, and demographic
characteristics.
3. Patronage of Fast-Food Restaurants.
a. [Figure 9-5] The Simmons survey data shows the results of a question about
adult respondents’ frequency of use (or patronage) of fast-food restaurants.
• As shown by the arrow in the far right column of Figure 9-5, the
importance of the segment increases as one moves up the table.
• Among nonusers, prospects are more important than nonprospects.
• Moving up the rows to users in Figure 9-5:
– Light users of these restaurants (0 to 5 times per month) are important
but less so than medium users (6 to 13 times per month).
– Medium users are less important than the critical segment—heavy
users (14 or more times per month).
– The Actual Consumption column shows how much of the total
monthly usage is accounted for by heavy, medium, and light users.
b. Usage rate may be referred to in terms of:

• The 80/20 rule is a concept that suggests 80 percent of a firm’s sales are
obtained from 20 percent of its customers.
• Is the reason that marketers want to focus most of your marketing efforts
on reaching the highly attractive heavy-user market segment.
c. The Simmons survey data in Figure 9-5 show that:

• 36.1% of the U.S. population who are heavy users of fast-food restaurants
provides 63.6% of the consumption volume (the orange shading).
9-15
• The Usage Index per Person column in Figure 9-5 emphasizes the
importance of the heavy-user segment even more:
– Giving the light users (0 to 5 restaurant visits per month) an index
of 100, the heavy users have an index of 640.
– In other words, for every $1.00 spent by a light user in one of these
restaurants in a month, each heavy user spends $6.40.
– This is the reason that you want to focus most of your marketing
efforts on reaching the highly attractive heavy-user market segment.
d. [Figure 9-6] Patrons were asked if each restaurant was their: (1) only
(sole), (2) primary one, or (3) one of several secondary ones.
• The Wendy’s bar shows that the ‘Sole’ (0.7%) and ‘Primary’ (12.5%) user
segments are somewhat behind Burger King and far behind McDonald’s.
• A strategy: Look at these two competitors and devise a marketing program
to win customers from them.
• The ‘Nonprospects’ in Figure 9-6 shows that:
– 14.6 % of adult Americans don’t go to fast-food restaurants in a
typical month.
– They really are unlikely to ever go to your restaurant.
• But the 57.0 % who are ‘Prospects’ may be worth targeting.
– These adults use the product category (fast-food restaurants) but
do not go to Wendy’s.
– New menu items or new promotional strategies might succeed
in converting these prospects into secondary or primary users.
4. Variables to Use in Forming Segments for Wendy’s.
• Since the restaurant is located near a university, the segmentation base should
be behavioral: prospective customers are either students or nonstudents.
• The bases of segmentation for the “students” segment combines two variables:
(1) where students live and (2) when they are on campus. This results in:
a. Four student segments:

• Students living in dormitories (residence halls; fraternities/sororities).
• Students living near the university in apartments.
• Day commuter students living outside the immediate area.
• Night commuter students living outside the immediate area.
b. Three nonstudent segments:

• Faculty and staff members who work at the university.
9-16
• People who live in the area but aren’t connected with the university.
• People who work in the area but aren’t connected with the university.
c. People in each of these nonstudent segments:

• Aren’t quite as similar as those in the student segments, which…
• Makes them harder to reach with a marketing program or action.
5. Ways to Segment Organizational (Business) Markets.
[Figure 9-7] Three bases and their respective variables and breakdowns can be
used to segment organizational (business) markets:
a. Geographic. Variables consist of global region (European Union), country,

metropolitan and micropolitan statistical area, etc.
b. Demographic. Variables consist of NAICS, number of employees, annual

sales, etc.
c. Behavioral. Variables consist of usage rate, application, etc. Example: Xerox

Color WorkCentre multi-function printer.
LEARNING REVIEW
9-3. The process of segmenting and targeting markets is a bridge between which two
marketing activities?
Answer: identifying market needs and executing the marketing program
9-4. What is the difference between the demographic and behavioral bases of market
segmentation?
Answer: Demographic segmentation is based on some objective physical (gender,

race), measurable (age, income), or other classification attribute (birth era, occupation)
of prospective customers. Behavioral segmentation is based on some observable
actions or attitudes by prospective customers—such as where they buy, what benefits
they seek, how frequently they buy, and why they buy.
[Video 9-2: Dave’s Hot ‘n Juicy Ad]

B. Step 2: Group Products to Be Sold into Categories
• What does a Wendy’s restaurant sell? Individual products, such as hamburgers,

fries, and Frostys.
• But for marketing purposes, Wendy’s sells groups of these products that become a
“meal.” This distinction is critical.
9-17
• Finding a means of grouping the products a firm sells into meaningful categories
is as important as grouping customers into segments.
1. Individual Wendy’s Products.
a. When Dave Thomas founded Wendy’s in 1969, he offered only 4 basic items:
• “Hot ‘n juicy” hamburgers. • French fries.
• Frosty Dairy Desserts. • Soft drinks.
b. [Figure 9-8] Since then, Wendy’s has introduced many new products and
innovations to compete for customers’ fast-food dollars.
c. Figure 9-8 also shows that each product or innovation is not targeted equally
to all market segments based on gender, needs, or university affiliation.
• The cells labeled “P” represent Wendy’s primary target market segments
when it introduced each product or innovation.
• The boxes labeled “S” represent the secondary target market segments that
also bought these products or used these innovations.
• Wendy’s discovered that large numbers of people in a segment not
originally targeted for a particular product or innovation bought it anyway.
2. Groupings of Wendy’s Products: Meals.
a. Finding a means of grouping the products a firm sells into meaningful

categories is as important as grouping customers into segments.
b. When a firm has many products, they must be grouped in some way so buyers
can relate to them in a meaningful way.
c. This is the reason supermarkets and department stores are organized into
product groups, with departments or aisles containing related merchandise.
d. How one groups products is where judgment—the qualitative aspect of

marketing—comes in.
e. For Wendy’s, students buy an eating experience—a meal that satisfies a need
at a particular time of day or occasion.
• So the product grouping is defined by meal or time of day: breakfast,
lunch, between meal snack, dinner, and after-dinner snack.
• These groupings are closely related to the way fast-food purchases are
actually made.
[ICA 9-1: Honey Nut Cheerios® Milk ‘n Cereal Bar:

Identifying Product Groups]
9-18
C. Step 3: Develop a Market-Product Grid and Estimate the Size of Markets

[LO 9-4]
• Recall that a market-product grid is a framework to relate the market segments of

potential buyers to products offered or potential marketing actions by a firm.
• In a complete market-product grid analysis, each cell in the grid can show the
estimated market size of a given product sold to a specific market segment.
1. Forming a Market-Product Grid for Wendy’s.
a. [Figure 9-9] Developing a market-product grid means identifying and

labeling:
• The markets (or horizontal rows).
• The product groupings (or vertical columns).
b. For Wendy’s:
• The row “market segments” is students versus nonstudents with
subdivisions in each.
• The column “product groupings” is the meal or eating occasions.
2. Estimating Market Sizes for Wendy’s.
a. Estimate the size of the market in each cell (the market-product combination).
b. This involves estimating the sales of each kind of meal that can reasonably be
expected to be sold to each student and nonstudent market segment.
c. The market size estimates may be simple “guesstimates” if you don’t have
time for formal marketing research.
d. These market size estimates are helpful in determining which target market
segments to select and which product groupings to offer.
D. Step 4: Select Target Markets
A firm must take care to choose its target market segments carefully:
• If it picks too narrow a set of segments, it may fail to reach the volume of sales
and profits it needs.
• If it selects too broad a set of segments, it may spread its marketing efforts so thin
that the extra expenses are more than the increased sales and profits.
1. Criteria to Use in Selecting the Target Segments.
a. Two kinds of criteria in the market segmentation process are those used to:
• Divide the market into segments.
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• Actually pick the target segments.
b. Five criteria can be used to select a firm’s target market segments:

• Market size.
– The estimated size of the market is a critical factor in deciding whether
it’s worth targeting.
– Wendy’s:
* There is really no market for breakfasts among dormitory students
with meal plans…
* Don’t devote any marketing effort to reach this tiny segment.
* In the market-product grid (Figure 9–9), this market segment is
given a “0” to indicate there is no market.
• Expected growth.
– Assess whether the market segment is projected to grow in the future.
– Wendy’s:
* Sales of fast-food meals eaten outside the restaurants are projected
to exceed those eaten inside.
* Wendy’s has been shown to be the fast-food leader in average time
to serve a drive-thru order—faster than McDonald’s.
* This speed and convenience is potentially very important to night
commuters in adult education programs.
• Competitive position.
– Assess the firm’s position in the segment relative to current and
expected future competition.
– Wendy’s:
* Ask this question: Is there a lot of competition in the segment now
or is there likely to be in the future?
* The less the competition, the more attractive the segment is.
* if the college dormitories has a policy of “no meals on weekends,”
this segment is suddenly more promising for your restaurant.
* Wendy’s recently introduced tits “My Wendy’s” mobile app for
ordering and payments.
• Cost of reaching the segment.
– If inaccessible to a firm’s marketing actions, the segment should not be
pursued.
– Wendy’s:
* A segment that is inaccessible to a firm’s marketing actions should
not be pursued.
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* The few nonstudents who live in the area may not be reachable
with ads in newspapers or other media.
* As a result, don’t waste money trying to advertise to them.
• Compatibility with the organization’s objectives and resources.
– The firm must economically reach the segment with its offering.
– If your Wendy’s restaurant:
* Doesn’t yet have the cooking equipment to make breakfasts and…
* Has a policy against spending more money on restaurant
equipment, then…
* Don’t try to reach the breakfast segment.
c. As is often the case in marketing decisions, a particular segment may appear

attractive according to some criteria and very unattractive according to others.
2. Choose the Wendy’s Segments.
a. Ultimately, a marketer has to use these criteria to choose the segments for
special marketing efforts.
b. For Wendy’s, the breakfast product grouping was written off for two reasons:
• It’s too small a market.
• It’s incompatible with your objectives and resources.
c. For Wendy’s, in terms of competitive position and cost of reaching the

segment, you choose to focus on:
• The four student segments.
• NOT the three nonstudent segments.
E. Step 5: Take Marketing Actions to Reach Target Markets
• The purpose of developing a market-product grid is to trigger marketing actions to

increase sales and profits.
• This means that someone must develop and execute an action plan in the form of
a marketing program.
1. Your Immediate Wendy’s Segmentation Strategy.
Key decisions are:
a. What products (meals) to offer for each segment selected.
b. When to open: After 10:30 A.M. since breakfast will not be offered.
c. [Figure 9-10] Where and what meals to advertise to reach specific segments.
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• Day commuters.
– Run ads to promote all meals to an entire market segment.
– Is a horizontal cut through the market-product grid (orange shading).
• Between meal snacks.
– Direct ads to all four student segments.
– Is a vertical cut through the market-product grid (light green shading).
• Dinners to night commuters.
– Focus ads to promote a single meal to a single student segment.
– The most focused tactic of all three promotional campaigns.
d. Depending on how the advertising actions work, you can repeat, modify, or
drop them and design new campaigns for other segments worthy of the effort.
2. Keeping an Eye on Competition.
A marketer must be aware of the strategies of competitors.
a. Ex: McDonald’s:
• Testing breakfast burrito bowl with kale
• Testing home delivery service called “McDelivery.”
• Testing hands-free payment app that requires customers to only say their
name to pay.
b. Five Guys Burgers and Fries restaurant:

• Grown to more than 1,000 locations nationwide and 1,500 more planned.
• Simple menu and décor; modest prices.
• Fresh ground beef and trans-fat-free menu.
c. Wendy’s, Burger King, and McDonald’s are aggressively trying the new
“fast-casual” market segment.
• These customers want healthier food and lower prices in sit-down
restaurants…
• Is a market segment being successfully targeted by fast-casual restaurants
like Chipotle Mexican Grill and Panera Bread.
d. Nonhamburger chains trying to gain market share:

• Convenience stores (7-Eleven). • Smoothie bars (Jamba Juice).
• Coffee shops (Starbucks). • Gas stations/mini-markets.
3. Future Strategies for Your Wendy’s Restaurant.

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a. Changing customer tastes and competition mean you must alter your strategies
when necessary.
b. This involves looking at…

• What Wendy’s headquarters is doing.
• What competitors are doing.
• What might be changing in the area around your restaurant.
c. Wendy’s recently announced a new marketing program:

• Testing new menu items such as veggie burger and organic tea.
• Increased digital marketing and social media marketing.
• Offering a beacon-based mobile app in some locations to detect when a
diner who placed an order via smartphone arrives at restaurant.
d. Wendy’s strategy has been remarkably successful, replacing Burger King as

the #2 burger chain in terms of sales behind McDonald’s.
e. Consumer Reports surveyed best and worst fast-food restaurants and ranked
Wendy’s burgers higher than McDonald’s, Burger King, and five other fast-
food options.
f. Based on changes in consumer tasters and competitive action, a firm may

need to rethink its market segmentation decisions.
4. Apple’s Ever-Changing Segmentation Strategy.
a. In 1977, Apple introduced the Apple II, which launched today’s multi-billion
dollar PC industry.
b. Typical of young companies, Apple focused on its products and had little
concern for its markets.
c. In 1997, Steve Jobs described a new market segmentation strategy that he

called the “Apple Product Matrix.”
d. This strategy consisted of:

• Developing two general types of computers—desktops and laptops.
• Targeted at two general market segments—consumers and professionals.
e. In most segmentation situations:

• A single product does not fit into an exclusive market niche.
• Rather, product lines and market segments overlap.
• So too does Apple’s segmentation strategy.
9-23
MARKETING MATTERS
Technology: Apple’s Segmentation Strategy—Camp Runamok No Longer
Apple has targeted its various lines of Macintosh computers at specific market
segments, as shown in the market-product grid. Because the market-product grid shifts as a
firm’s strategy changes, the one shown is based on Apple’s product lines in mid-2015.
[Video 9-3: Apple’s 1984 Super Bowl Ad]

F. Market-Product Synergies: A Balancing Act
• Recognizing opportunities for key synergies—efficiencies—is vital to success in

selecting target market segments and making marketing decisions.
• Synergy analysis:
a. Seeks market-product opportunities by…
b. Finding the optimum balance between marketing efficiencies versus

product/R&D–manufacturing efficiencies.
• Market-product grids illustrate where such synergies can be found.
• Marketing synergies.
a. Run horizontally across the market-product grid.
b. Each row is an opportunity for efficiency in terms of a market segment.
c. If a firm can focus on one segment, its marketing efforts could be streamlined.
d. Often comes at the expense of product synergies because:

• A single consumer segment will likely require a variety of products…
• Each of which will have to be designed and manufactured.
e. The firm saves money on marketing but spends more in production.
• Product/R&D-manufacturing synergies.
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a. Run vertically down the market-product grid.
b. Each column represents an opportunity for efficiency in product research and

development (R&D) and manufacturing or production.
c. If product synergies are emphasized, marketing:

• Will have to address concerns of a wide variety of consumers, which …
• Costs more time and money to develop and execute marketing actions.
• Marketing managers must balance both product and marketing synergies as they
seek to increase profits by:
a. Developing a firm’s product line.
b. Selecting its target market segments.
LEARNING REVIEW
9-5. What factor is estimated or measured for each of the cells in a market-product
grid?
Answer: Each cell in the grid can show the estimated market size of a given product
sold to a specific market segment.
9-6. What are some criteria used to decide which segments to choose for targets?
Answer: Possible criteria include market size, expected growth, competitive position,
cost of reaching the segment, and compatibility with the organization’s objectives and
resources.
9-7. How are marketing and product synergies different in a market-product grid?
Answer: Marketing synergies run horizontally across a market-product grid. Each row
represents an opportunity for efficiency in the marketing efforts to a market segment.
Product synergies run vertically down the market-product grid. Each column
represents an opportunity for efficiency in research and development (R&D) and
production. Marketing synergies often come at the expense of product synergies
because a single customer segment will likely require a variety of products, each of
which will have to be designed and manufactured. The company saves money on
marketing but spends more on production. Conversely, if product synergies are
emphasized, marketing will have to address the concerns of a wide variety of
consumers, which costs more time and money.
III. POSITIONING THE PRODUCT [LO 9-5]
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• Product positioning refers to the place a product occupies in consumers’ minds on

important attributes relative to competitive products.
[ICA 9-2: 3M Post-it® Flag + Highlighter:

Product Positioning for Consumers and Retailers]
• Product repositioning involves changing the place a product occupies in a
consumer’s mind relative to competitive products.
A. Two Approaches to Product Positioning
• Head-to-head positioning involves competing directly with competitors on similar

product attributes in the same target market.
• Differentiation positioning involves seeking a less competitive, smaller market

niche in which to locate a brand.
B. Writing a Positioning Statement
• Marketing managers often convert their positioning ideas for an offering or a

brand into a succinctly written positioning statement.
• The positioning statement is used:
a. Internally, within the marketing department.
b. Externally, with research and development engineers or advertising agencies.
C. Product Positioning Using Perceptual Maps
• A key to positioning a product or brand effectively is discovering the perceptions

of its potential customers.
• Companies take four steps to determine its positioning in the minds of customers:
a. Identify the important attributes for a product or brand class.
b. Discover how target customers rate competing products or brands with respect
to these attributes.
c. Discover where the company’s product or brand is on these attributes in the

minds of potential customers.
d. Reposition the company’s product or brand in the minds of potential

customers.
• A perceptual map:
a. Is a means of displaying in two dimensions the location of products or brands

in the minds of consumers.
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b. Enables a manager to see how consumers perceive competing products or

brands, as well as the firm’s own product or brand.
D. A Perceptual Map to Reposition Chocolate Milk for Adults
• [Figure 9-B] Recently, U.S. dairies decided to reposition chocolate milk in the
minds of American adults.
• The four steps dairies used to reposition chocolate milk for American adults:
a. Identify the important attributes (or scales) for adult drinks. Research reveals
the key attributes adults use to judge various drinks are:
• Low versus high nutrition.
• Children’s drinks versus adult drinks.
b. Discover how adults see various competing drinks.
c. Discover how potential customers see chocolate milk. Adults see chocolate
milk as:
• Moderately nutritious (vertical axis).
• Mainly a child’s drink (horizontal axis).
d. Reposition chocolate milk to make it more appealing to adults. Issue:

Which of the circled letters (A-F) in Figure 9-G should the dairies try to move
chocolate milk to reach adults and increase sales?
• [Figure 9-11] These are the marketing actions dairies implemented:
a. Dairies sought to move chocolate milk to the location of the “star” shown in
Figure 9-11—the position at “B.”
• Chocolate milk provides calcium, critically important in female diets.
• Dieters get a more filling, nutritious beverage than with a soft drink for
about the same calories.
b. Chocolate milk sales increased dramatically because of adult consumption.

• This is due to giving chocolate milk “nutritional respectability” for adults.
• Another part is due to the innovative packaging that enables many new
chocolate milk containers to fit in a car’s cup holders.
LEARNING REVIEW
9-8. What is the difference between product positioning and product repositioning?
9-27
Answer: Product positioning refers to the place a product occupies in consumers’ minds
based on important attributes relative to competitive products. Product repositioning
involves changing the place a product occupies in a consumer’s mind relative to
competitive products.
9-9. Why do marketers use perceptual maps in product positioning decisions?
Answer: Perceptual maps are a means of displaying in two dimensions the location of
products or brands in the minds of consumers. Marketers use perceptual maps to see
how consumers perceive competing products or brands as well as their own product or
brand. Then, they can develop marketing actions to move their product or brand to the
ideal position.
9-28
APPLYING MARKETING KNOWLEDGE
1. What variables might be used to segment these consumer markets? (a) lawn mowers,
(b) frozen dinners, (c) dry breakfast cereals and (d) soft drinks?
Answers:
a. Lawn mowers. Type (nonpowered, powered; walking, sitting, robotic; gas, electric);
lawn (area—square footage; kind—yard, field); or location (city, suburban, rural).
b. Frozen dinners. Family size; ethnic type (American, Italian, Mexican, Chinese, etc.);
cooking (microwave, oven); price (budget, regular) health consciousness (low fat, low
carb, “Atkins” certified); or price (branded, generic).
c. Dry breakfast cereals. Age (child, teenager, adult); health consciousness (low carb,
vitamins, “heart healthy”); or price (branded, generic).
d. Soft drinks. Type/flavor (cola, noncola); health consciousness (sugar free, low carb,
fitness/vitamins); or price (branded, generic).
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?
Answers:
a. Industrial sweepers. Amount of floor area to sweep; kind of refuse to collect (dust,
paper, metal shavings); or environment (factory, shopping mall).
b. Photocopiers. Type (color, black & white); speed (pages per minute); average number
of copies per day; image clarity (resolution), or use (copy, reduction, enlargement).
c. Computerized production control systems. Kind of operation (job shop, mass

production); number of parts and amount of inventory; or amount of fabrication
performed.
d. Car rental agencies. Use of vehicle (business, vacation); price (daily, weekly,
monthly); location (at airport, off-site); usage (frequent, occasional); or size of renter
group (1 person, 2 people, etc.).
3. In Figure 9-9, 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 combining 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 the presence of meal contracts and,
hence, their need for specific meals for the same times of the day or day of the week.
9-29
4. You may disagree with the estimates of market size given for the rows in the market-
product grid in Figure 9-9. 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.
Answers:
a. Dormitory students. Probably have a meal contract for breakfast, lunch, and/or
dinner. Thus, other meals (between meal or after dinner snack) represent larger
potential for fast-food restaurants.
b. Day commuters. Will generally be gone by mid-afternoon, which reduces sales for
dinners and after-dinner snacks.
c. People who work in the area. Lunch may be the biggest market assuming they have a
lunch period they can take outside their building. Some may choose to eat or take out a
dinner meal on their way home.
5. Suppose you want to increase revenues for your fast-food restaurant even further.
Referring to Figure 9-10, what advertising actions might you take to increase
revenues from (a) dormitory students, (b) dinners, and (c) after-dinner snacks from
night commuters?
Answers:
a. Dormitory students. Coupons under dorm doors promoting 50 cents off meals at
restaurant or free shakes with regular dinner.
b. Dinners. Special price or meal promotions (“value meals,” “daily special,” etc.)
directed to night commuters and apartment residents.
c. After dinner snacks from night commuters. Price promotions or coupons on flyers
under the windshield wipers of cars parked in student parking lots after 5:30 P.M.
6. Locate these drinks on the perceptual map in Figure 9-11: (a) cappuccino, (b) beer,
and (c) soy milk?
Answers:
a. Cappuccino. Cappuccino is a frothy blend of coffee and milk. Given that coffee is
positioned as an adult drink with relatively low nutrition and regular milk is positioned
as a children’s drink with high nutrition, cappuccino can be positioned as an adult drink
with modest nutrition since it is made with milk and children are unlikely to drink it
since it is made with coffee.
b. Beer. Beer is positioned as an adult drink since it is illegal for children to buy it.
Moreover, beer is not very nutritious.
c. Soy milk. Increasingly, both children and adults are drinking soy milk because of its
high nutrition and health benefits.
9-30
9-31
BUILDING YOUR MARKETING PLAN
Your marketing plan needs a market-product grid to (a) focus your marketing
efforts and (b) help you create a forecast of sales for the company. Use these steps:
1. Define the market segments (the rows in your grid) using the bases of segmentation
used to segment consumer and organizational markets.
2. Define the groupings of related products (the columns in your grid).
3. Form your grid and estimate the size of market in each market-product cell.
4. Select the target market segments on which to focus your efforts with your marketing
program.
5. Use the information and the lost-horse forecasting technique (discussed in Chapter 8)
to make a sales forecast (company forecast).
6. Draft your positioning statement.
Answers:
Market segments and product groupings. What do we sell to whom? This is one of the
most fundamental questions every business must answer. In the market-product grid
analysis, the “what” is the “product grouping” or columns in the grid and the “to whom” is
the “market segments” or rows in the grid. The initial task in developing the market-
product grid is to name the product groupings and market segments—a task requiring
serious thought. Product groupings should closely relate to the ways consumers actually
make their purchase decision (by item, occasion, feature, etc.) in order to develop a more
effective marketing program. Market segments should be defined based on the
characteristic(s) that are the least costly to identify and reach with a marketing program.
These characteristics could be geographic, demographic, psychographic, or behavioral in
nature. A profile of a target market segment must include its media behavior to
communicate the marketing program developed to meet its needs.
Market size and target market selection. Estimating the market size in each cell of the
grid may be on a “3-2-1-0” (large, medium, small, none) basis like what is done for the
fast-food restaurant example in Chapter 9. However, if possible, a more rigorous and
useful approach is to estimate annual revenues (dollars) for each of the cells before
selecting the target market segments. Unit sales (numbers) or market share estimates are
much more difficult to estimate and therefore should be beyond the scope of this exercise.
Helping with Common Student Problems
Developing the market product grid and sales forecast are probably the two most difficult
tasks students face in writing their marketing plans. Yet they are among the most important
because of how closely they link to marketing mix actions in the plan. So instructors should
stress their importance. Also, students should be forced to look at both the marketing synergies
and operations efficiencies in studying their marketing-product grid and related strategies.
9-32
TEACHING NOTE FOR VIDEO CASE VC-9
Prince Sports, Inc.: Tennis Racquets for Every Segment
Synopsis
Show Slide 9-37 and Slide 9-38. As described in its website, New Jersey-based Prince
Sports “is a company of racquet sports enthusiasts whose goal is to create cutting edge,
functional, and technically advanced products that deliver performance benefits for avid
players.”
The Prince Sports portfolio of brands includes Prince (tennis, squash, and badminton),
Ektelon (racquetball), and Viking (platform/paddle tennis). Its complete line of tennis products
includes more than 150 racquet models; more than 50 strings; over 50 footwear models; and
countless types of bags, apparel and other accessories.
Prince has a history of innovation in tennis—including inventing the first “oversize” and
“long body” racquets, the first “synthetic gut” tennis string, and the first “Natural Foot Shape”
tennis shoe. To remain the market leader, Prince Sports must continue to develop key
innovations to meet the needs of all market segments of tennis players.
Prince Sports wants to exploit a favorable trend—the dramatic growth in tennis

participation. For example, a recent study by the Sporting Good Manufacturers Association
notes that tennis participation in the U.S. was up 43 percent from 2000 to 2008—the fastest
growing traditional individual sport in the country.
Students are asked to assess changes in the marketing environment Prince Sports faces
and to suggest ways that it can stay ahead of its competitors and future trends.
[Video 9-4: Prince Sports Video Case (kerin.tv/13e/v9-4)]

Teaching Suggestions
This Prince Sports video case may be used to introduce a variety of marketing topics,
such as an overview of marketing and the marketing process (Chapters 1 and 2), the changing
marketing environment (Chapter 3), and market segmentation (Chapter 9). Because many
college students play tennis, the instructor may want to ask students the following questions to
lead off the discussion of the video case:
1. How many of you play tennis and own your own racquet? This question identifies the
incidence of tennis playing among college students.
2. How many of you have started playing tennis in the past two years? This question is a
“mini-check” on the study sited above that says tennis participation is increasing.
3. Of those that own your own tennis racquet, how many own a Prince brand of racquet?
How many of you own a racquet with a different brand? These two questions provide an
indication of market share of Prince Sports racquets within the class.
9-33
4. For all tennis racquet owners: What features made you choose the brand you own? This
question gets students thinking about the points of difference that they considered when
buying their particular brand and model of tennis racquet.
9-34
5. How could Prince Sports increase awareness and purchase of its tennis brands to college
students such as you? This question gets students thinking about the marketing mix
actions (product, price, promotion, and distribution tactics) that Prince Sports could take
to reach college students in marketing its line of tennis products.
Answers to Questions
1. In the 21st century, what trends in the environmental forces (social, economic,
technological, competitive, and regulatory) (a) work for and (b) work against success
for Prince Sports in the tennis industry?
Answers:
Environmental (a) Trends Working (b) Trends Working

Force For Growth Against Growth
• Tennis is becoming a mainstream • Tennis is often perceived to be

recreational sport for both young difficult to learn.
and old people. • Tennis participation may be a
Social • Tennis provides a fun and exciting temporary fad whose attractiveness
way to socialize and work out with will decrease in light of
family and friends. competition from other traditional
• Tennis is a healthy fitness activity. recreational sports.
• Tennis is still an affordable • The historic profitability of the

sporting activity. Relatively low tennis industry provides an
cost to participate, especially opportunity for powerful
Economic compared to golf. competitors to enter the market.
• An increasing number of private • Cost of buying tennis racquets,
health and tennis clubs and public shoes, etc. is a concern in
tennis courts are available. recessionary times.
• Several dozen Prince Sports patents • Innovations may not be fully
Technological provide some protection from understood or appreciated by target
competition. consumers.
• Prince Sports is still the industry • Competition exists from other
leader, setting technological and tennis racquet marketers.
Competitive quality standards. • Competition exists from
mainstream recreational sports.
• Prince Sports aggressively seeks to • There is danger to Prince Sports
Regulatory protect its brand and patents from brands and innovations from patent
patent infringement. infringement.
9-35
2. Because sales of Prince Sports in tennis-related products depends heavily on growth

of the tennis industry, what marketing activities might it use in the United States to
promote tennis playing?
Answers:
This question addresses Prince’s strategy to (1) stimulate demand for the entire product
class (increasing tennis playing among children and adults by stimulating primary demand)
in order to (2) compete for market share for its Prince-brand products (stimulating selective
demand). These topics are discussed in Chapter 11. Specific marketing activities Prince
Sports now uses to promote tennis playing in the U.S. include:
a. Sponsor local tennis clinics for players of all ages and skill levels.
b. Sponsor local tournaments, again for all ages and skill levels.
c. Sponsor Prince “Demo Events” managed by local teaching professionals that let players
try out the latest racquets, footwear, etc.—a strategy that really involves stimulating
both primary and selective demand.
d. Have a “Global Ball Guess” competition—an award for guessing the number of tennis
balls contained in a larger-than-life container shown on TV in New York.
e. Stress the health benefits and sociability of playing tennis in promotional materials.
3. What promotional activities might Prince use to reach (a) recreational players and
(b) junior players?
Answers:
These are two of the three market segments mentioned in the video case. Some
promotional activities (1) are unique to only one of these segments (2) while others are
common to both. Promotional activities only unique to one of the segments appear in the
Table A below. However, Prince promotional activities common to both segments include:
a. Sponsor Prince Demo events where players can try out latest racquets and footwear.
b. Sponsor elite “name” tennis professionals like Maria Sharapova and Nickolay
Davydenko.
c. Run TV ads on well-known international tournaments (Wimbledon, etc.).
d. Provide Prince product information, tennis tips, and latest tennis news on Prince
website and Facebook pages.
e. Provide useful brochures on Prince product line.
9-36
TABLE A
(a) Promotional Activities to Reach (b) Promotional Activities to Reach

Recreational Players Junior Players
• Sponsor tennis clinics for adult players. • Sponsor tennis clinics for high-school age
• Sponsor tennis doubles mixers for adults players.
by broad age groups. • Sponsor local summer high-school
• Sponsor local adult tournaments. tournaments.
• Sponsor “teaching pros” to give tennis • Include latest topics and Prince
lessons. information on Twitter and Facebook
pages.
• Gain distribution and have point-of-sale
information in specialty sports shops. • Gain distribution and have point-of-sale
information in mass-merchandise chains
• Run ads in regional and national tennis like Target and Walmart.
magazines.
4. What might Prince do to help it gain distribution and sales in (a) mass merchandisers
like Target and Walmart and (b) specialty tennis shops?
Answers:
Intense competition exists for sales of sporting goods among the various manufacturers to
gain effective distribution in a variety of retail outlets such mass merchandisers and
specialty tennis shops. Prince wants to assist both kinds of retail outlets to serve its
customers better. However, there are market segment differences:
a. Mass merchandisers. Less-experienced players are likely to patronize these retail

outlets because they carry a reduced product line in their reduced selling space.
b. Specialty tennis shops. More-experienced players are likely to shop at these retail
outlets because they carry a wider line of Price racquets in their much larger selling
space.
Table B below compares the marketing strategies for each type of retail outlet:
9-37
TABLE B
KINDS OF
TYPE OF RETAIL OUTLET
DISTRIBUTION
AND SALES
ACTIONS BY Mass Merchandisers
Specialty Tennis Shops
PRINCE (Like Target and Walmart)
Assistance in Often provide space plan-o-grams Generally left to tennis shop
space planning
Advertising Co-op advertising to help produce Detailed catalogues and brochures of
materials in-store circulars tennis racquets, shoes, strings, etc.
Point-of-purchase In-store displays and signage In-store displays and signage, player
materials “standees” (tall paper models of
Prince-sponsored players),
merchandising fixtures, posters
Availability of Rarely available Large supply of “demos” usually
“demonstration available
racquets” on loan
Assistance of Some tennis knowledge among sales Extensive knowledge among sales
knowledgeable clerks clerks, many being good players
sales clerks themselves
Availability of Rarely available Almost always available

racquet stringing
5. In reaching global markets outside the United States, (a) what are some criteria that
Prince should use to select countries in which to market aggressively, (b) what three
or four countries meet these criteria best, and (c) what are some marketing actions
Prince might use to reach these markets?
Answers:
a. Marketing selection criterion for countries. Suggested criteria for selecting which
countries to enter with a line of Prince tennis products include the following:
• Sufficient disposable and discretionary income for consumers to be able to purchase
recreational sporting equipment such as tennis racquets and shoes.
• An adequate system of public tennis courts.
• Youthful culture that enjoys outdoor activities and exercise.
• Access to reasonable priced media to promote the tennis playing in general and the
Prince brand in particular.
• Access to distribution channels (wholesalers and retailers) and their willingness to
carry Prince brand tennis products.
9-38
b. Suggested countries for aggressive marketing.

• Countries meeting these selection criteria best are Great Britain, France, and
Germany—probably followed by Spain, Italy, and Australia.
• Today Prince sells its products in most Western European countries, some
South American countries (Brazil, Argentina, Chile), and other Pacific countries
(New Zealand, Japan).
• Potential markets to target in the near future are:
– Eastern Europe (Russia, Poland, Hungary, Czech Republic) due to their growing
economies.
– The two most populous countries in the world—India and China, where the
number and discretionary incomes of consumers are increasing.
c. Marketing actions to reach these markets. Prince’s strategy in entering these

countries is really an extension of its U.S. strategy identified above that involves first
stimulating primary demand and then selective demand, as outlined below:
• Stimulating primary demand. Increasing tennis playing generally, which
involves:
– Stressing the health benefits and sociability of tennis.
– Using clinics to teach people how to play tennis.
– Encouraging construction of more public tennis courts.
– Getting national exposure to tennis by promoting TV coverage of major tennis
tournaments (Wimbledon, U.S. Open, etc.).
• Stimulating selective demand. Getting people to buy Prince brand tennis
products, which involves:
– Sponsoring tennis professionals from the country, such as Maria Sharapova in
Russia.
– Sponsoring “demo events” with Prince branded racquets.
– Gaining efficient countrywide distribution.
Epilogue
Prince Sports was recently acquired by Authentic Brands Group (ABG), a brand
development and licensing company based in New York, Toronto, and Los Angeles. ABG’s
objective is to maintain Prince Sports’ historical reign in the tennis world by offering
performance racquet sports equipment to its target markets. For example, Prince recently
announced the release of new racquets featuring their latest technological innovation, Extreme
String Pattern (ESP) Technology. In addition, Prince Mexico has expanded to distribute Prince
products in more than 2,000 locations in Mexico.
Sources: “LUVE Sports Provides Corporate Update and Anticipates New Business Opportunities,” Global Data
Point, June 18, 2013 and “Prince Tennis Introduces Fall 2013 Racquet Collections,” www.princetennis.com,
October 21, 2013.
9-39
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:
a. Segmentation bases. There are many ways that the lawn mower market might be
segmented. Possible bases include:
• Lawn size (under 20,000 square feet, 20,000-43,560 square feet, and over 43,560
square feet). It might even be desirable to break down the smaller lawn size
category to include those urban lots that are much less than a half acre and would be
suited to a reel mower.
• Gender. Women seem to be more interested in manual mowers. Many may be
single head of households with smaller lawn sizes.
• Benefit sought. There are a number of different benefits including speed in
mowing, durability, reliability, low maintenance, exercise, “green machines” that
have less impact on the environment—air pollution and noise reduction. It’s useful
to engage students on the fact that there can be a number of benefits sought but the
determinant benefits will drive the purchase decision as these out rank other
“wants” in importance.
9-40
• Lifestyle. Those that are interested in the perfectly manicured lawn are probably
looking for a different type of machine than someone that simply wants to keep the
lawn in check. Some people that really dislike lawn mowing may be interested in
the robotic lawn mowers that roam around the yard and return to a base to recharge
themselves. Lawn mower racers might conceivably be another lifestyle.
b. Market-product grid. One example of a market-product grid based on lawn size

might look like this:
PRODUCTS
MARKETS Gas Powered
Manual Reel Electric Gas Powered
Walking
Mowers Mowers Riding Mowers
Mowers
¼ acre or less
¼ to ½ acre
½ to 1 acre
More than 1 acre
It’s important to show students how worthwhile it is to look at market product grids
based on a number of different dimensions. While lawn size is something that is concrete, easy
to measure, available from secondary sources in order to estimate the number of households in
each category, it doesn’t give as much insight into other aspects of the purchase decision and
buyers’ needs. It doesn’t tell you, for example, whether the consumer is someone with a high
level of involvement in lawn care and willing to spend more money for features to groom that
lawn or whether s/he is interested in a quiet, nonpolluting mower and willing to pay for that
added value. It doesn’t tell you much about how to market to a consumer or position a given
product/brand.
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:
Market attractiveness depends on a number of factors, such as the firm’s

(1) objectives (growth, market share, unit sales) and (2) strengths that best “fit” the market
segment and weaknesses that don’t. Second, the criteria for assessing the attractiveness of
a market segment would at least include:
9-41
• Market size in units and in dollar sales.

• Profit potential. A market may not be large but could be extremely profitable.
• Competition. The level of competition not only has an impact on pricing and
profits—slim margins due to intense competition—but also marketing costs
(see below). The total number of competitors may be less critical than the how
aggressively these a competitor fights for market position.
• Marketing costs. It could be extremely costly to compete in certain segments—not
only in terms of promotional costs but also in product development dollars,
distribution, raw materials, and manufacturing costs.
• Fit. The degree to which the firm’s offering meets the needs of potential customers
in that market segment.
It’s important to illustrate that these criteria require quantitative (forecasted unit
sales for example) as well as qualitative information (e.g., high, medium, low degree of fit).
And what makes a good market for one company—say the manual reel mower market
segment based on growth rate may not be a the best market for another company looking to
maximize market share across the entire lawn care market.
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:
Positioning refers to the place that a particular product/brand holds in a customer’s

mind on important attributes of the offering. In other words, does the customer think of the
product/brand as more or less reliable, more or less quiet, more or less affordable, than
other lawn mowers. Positioning can refer to comparisons within a subcategory (comparing
one brand of riding mower to another) or between categories (comparing a gas powered
walking mower to a riding mower).
The bases for segmenting a market can serve as dimensions for a perceptual map in
some instances (high to low exercise potential with the reel lawn mowers showing up on
the “high exercise” end of the continuum and the riding mowers showing up on the “low
exercise” end of the continuum. And developing perceptual maps within or across
categories can help identify direct and indirect competitors (Is going to the gym an indirect
form of competition for reel lawn mowers?), the number of competitors attempting to
occupy the same position, ideas for promotional appeals, even ideas on how to distribute
the product. Quantitative information on the size of market segments allows decision
makers to determine how worthwhile a particular position maybe in terms of potential sales
and profits.
9-42
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.
9-43
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?
Answer: The Honey Nut Cheerios Milk ‘n Cereal Bar, M&M’s (Plain,
Almond, Peanut, Peanut Butter, & Crispy), Snickers, Frito Lay sunflower
seeds, Planter’s mixed nuts, a Quaker Oats granola bar, Fruit Roll-ups fruit
snacks, and an apple, banana or orange.
• Question 2: What are the product forms?

Answer: “Candy,” “fruit,” and “granola/nuts/seeds.” Others as identified.
• Question 3: What are the product lines?

Answer: M&M’s (Plain, Almond, Peanut, Peanut Butter, & Crispy).
• Question 4: What is/are the product class(es)?
9-44
Answer: “Snacks.”
9-45
• Question 5: Why is product categorization important in marketing?

Answer: An individual may group items together that are considered
substitutes for each other by that individual. This helps define the class of
products, the market segments, and the competitors to these segments.
For example, if a student groups a granola bar, Fruit Roll-ups fruit snacks,
and a piece of fruit together as “healthy” snacks, this student probably would
accept a granola bar in place of a piece of fruit. However, another student
may group the granola bar with “candy” items and consider them all junk
food. When this student craves a “healthy” snack (the “market segment”),
a granola bar will not substitute for a piece of fruit since it is outside the
“product grouping” for acceptable substitutes.
• Question 6: What products does the Honey Nut Cheerios Milk ‘n Cereal
Bar most directly compete with?
Answers:
a. A Quaker Oats Chewy granola bar.
b. An apple, banana, or orange (because of their nutritional value and
“one-handed” convenience).
• Question 7: What special promotional strategies suggested by this

competitive set?
Answer: Multiple responses possible. Some students may have seen an ad for
the Honey Nut Cheerios Milk ‘n Cereal Bar.
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.
9-46
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

(www.3m.com/us/office/postit/students).
c. The 3M Post-it® Flag + Highlighter TV Ad: [TRT = 0:23]. Click on this link to
view the YouTube TV ad: www.youtube.com/watch?v=wT7FA7F5_mE).
2. Ask students the following questions about their study habits:
• Question 1: Do any of you use a highlighter when reading a textbook? Why?

Answer: Students use a highlighter for a variety of reasons, like exam preparation.
• Question 2: If yes, which highlighter brand do you use? Where did you buy
it?
Answer: Students may have bought an Accent, Bic, or other highlighter at the
college bookstore, office supply store, mass merchandiser, etc.
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.
9-47
3. Show Slide 9-47 and 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. Show Slide 9-47. 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?
Answer: Students may have used the 3M Post-it® Flag + Highlighter for a variety
of reasons. If they haven’t, it may be because they (1) didn’t know about it, (2)
currently use another brand, or (3) may not want to use a highlighter for studying.
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. Show Slide 9-48. Briefly explain the nature of this ICA to the teams and have them
spend 8 or 10 minutes to complete the “3M Post-it® Flag + Highlighter Product and
Branding Strategies” Handout by:
a. Identifying the perceived benefits and their importance to both consumers and
retailers based on brand name, product concept, features, and design features of
the 3M Post-it® Flag + Highlighter.
b. Composing a 15 to 20 word positioning statement for the 3M Post-it® Flag +
Highlighter to both consumers and retailers.
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. Show Slide 9-49. 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.
9-48
“Two short product positioning statements might be:

• For consumers: “A combination Post-it® Flag and highlighter package that
enables users to have the convenience of both for many applications.”
• For retailers: “A combination Post-it® Flag and highlighter product line with a
recognized brand name and logo, attention-getting packaging, and high potential
volume.”
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.
9-49
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 (A) Benefits/Importance (A) Benefits/Importance

Branding Strategy to Consumers 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.
 
9-50
B. A 15- to 20-word
product positioning
statement suggested
by above the
strategies.
9-51
3M POST-IT FLAG + HIGHLIGHTER

PRODUCT AND BRANDING STRATEGIES ANSWERS HANDOUT
Product and (A) Benefits/Importance (A) Benefits/Importance

Branding Strategy to Consumers to Retailers
1. Post-it brand name • Provided immediate • 3M and Post-it® brand
and logo. credibility for potential names provide immediate
buyers because of credibility for potential
recognition of 3M name and retailers considering
Post-it® brand. stocking the items because
• Aids future consumer of their recognition by
recognition and recall of consumers.
company and brand. • Post-it® logo conveys the
theme of the product line.
2. Post-it Flag + • Provides 2-in-1 benefits of • Provides a complete
Highlighter concept: A both: (a) Post-it® Flags and product line: Post-it® Flag +
product that combines (b) highlighting. Highlighters, Post-it® Flag +
Post-it Flags with a Pens, Post-it® Flag + Gel
highlighter. • Provides information about
Marker, and Post-it® Flag
Post-it® Flag refills on the
refills.
back of the blister card.
3. Design: Highlighter style • Similar to highlighters that • Helps convince retail buyer
and size of pen barrel, consumers may be familiar of product’s marketability.
Post-it Flags dispenser with.
in pen, colors of • Helps retailer see
highlighter ink, flags, • Convenient, easy-to-use opportunity for follow-on
and barrel, clip on cap. dispenser of small flags. sales of more Post-it® Flag
Highlighters and refills.
• 5 colors available to meet
consumer preferences;
typical colors used in other
highlighters.
• Adequate supply of flags:
50 in highlighter; good value
for the price paid (MSRP:
$7.99 for a 3-pack).
B. A 15- to 20-word “A combination Post-it® “A combination Post-it®

product positioning Flags and highlighter Flags and highlighter
statement suggested by package that enables users product line with a
above the strategies. to have the convenience of recognized brand name and
both for many applications.” logo, attention-getting
packaging, and high
potential volume.”
9-52
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[Contents]
FORS CLAVIGERA.
LETTER LIV.
Before going on with my own story to-day, I must fasten down a main
principle about doing good work, not yet enough made clear.
It has been a prevalent notion in the minds of well-disposed persons,

that if they acted according to their own conscience, they must,
therefore, be doing right.
But they assume, in feeling or asserting this, either that there is no

Law of God, or that it cannot be known; but only felt, or conjectured.
“I must do what I think right.” How often is this sentence uttered and
acted on—bravely—nobly—innocently; but always—because of its
egotism—erringly. You must not do what you think right, but,
whether you or anybody think, or don’t think it, what is right.
“I must act according to the dictates of my conscience.”
By no means, my conscientious friend, unless you are quite sure that

yours is not the conscience of an ass. [156]
“I am doing my best—what can man do more?”
You might be doing much less, and yet much better:—perhaps you
are doing your best in producing, or doing, an eternally bad thing.
All these three sayings, and the convictions they express, are wise
only in the mouths and minds of wise men; they are deadly, and all
the deadlier because bearing an image and superscription of virtue,
in the mouths and minds of fools.
“But there is every gradation, surely, between wisdom and folly?”

No. The fool, whatever his wit, is the man who doesn’t know his
master—who has said in his heart—there is no God—no Law.
The wise man knows his master. Less or more wise, he perceives
lower or higher masters; but always some creature larger than
himself—some law holier than his own. A law to be sought—learned,
loved—obeyed; but in order to its discovery, the obedience must be
begun first, to the best one knows. Obey something; and you will
have a chance some day of finding out what is best to obey. But if
you begin by obeying nothing, you will end by obeying Beelzebub
and all his seven invited friends.
Which being premised, I venture to continue the history of my own

early submissions to external Force.
The Bible readings, described in my last letter, took [157]place always

in the front parlour of the house, which, when I was about five years
old, my father found himself able to buy the lease of, at Herne Hill.
The piece of road between the Fox tavern and the Herne Hill station,
remains, in all essential points of character, unchanged to this day:
certain Gothic splendours, lately indulged in by our wealthier
neighbours, being the only serious innovations; and these are so
graciously concealed by the fine trees of their grounds, that the
passing viator remains unappalled by them; and I can still walk up
and down the piece of road aforesaid, imagining myself seven years
old.
Our house was the fourth part of a group which stand accurately on
the top or dome of the hill, where the ground is for a small space
level, as the snows are (I understand) on the dome of Mont Blanc;
presently falling, however, in what may be, in the London clay
formation, considered a precipitous slope, to our valley of Chamouni
(or of Dulwich) on the east; and with a softer descent into Cold
Arbour, (nautically aspirated into Harbour)-lane on the west: on the
south, no less beautifully declining to the dale of the Effra, (doubtless
shortened from Effrena, signifying the “Unbridled” river; recently, I
regret to say, bricked over for the convenience of Mr. Biffin, the
chemist, and others); while on the north, prolonged indeed with slight
depression some half mile or so, and receiving, in the parish of
Lambeth, the chivalric title of ‘Champion Hill,’ it plunges down at last
to efface [158]itself in the plains of Peckham, and the rustic solitudes
of Goose Green.
The group, of which our house was the quarter, consisted of two
precisely similar partner-couples of houses,—gardens and all to
match; still the two highest blocks of buildings seen from Norwood
on the crest of the ridge; which, even within the time I remember,
rose with no stinted beauty of wood and lawn above the Dulwich
fields.
The house itself, three-storied, with garrets above, commanded, in

those comparatively smokeless days, a very notable view from its
upper windows, of the Norwood hills on one side, and the winter
sunrise over them; and of the valley of the Thames, with Windsor in
the distance, on the other, and the summer sunset over these. It had
front and back garden in sufficient proportion to its size; the front,
richly set with old evergreens, and well grown lilac and laburnum; the
back, seventy yards long by twenty wide, renowned over all the hill
for its pears and apples, which had been chosen with extreme care
by our predecessor, (shame on me to forget the name of a man to
whom I owe so much!)—and possessing also a strong old mulberry
tree, a tall white-heart cherry tree, a black Kentish one, and an
almost unbroken hedge, all round, of alternate gooseberry and
currant bush; decked, in due season, (for the ground was wholly
beneficent,) with magical splendour of abundant fruit: fresh green,
soft [159]amber, and rough-bristled crimson bending the spinous
branches; clustered pearl and pendant ruby joyfully discoverable
under the large leaves that looked like vine.
The differences of primal importance which I observed between the

nature of this garden, and that of Eden, as I had imagined it, were,
that, in this one, all the fruit was forbidden; and there were no
companionable beasts: in other respects the little domain answered
every purpose of Paradise to me; and the climate, in that cycle of our
years, allowed me to pass most of my life in it. My mother never
gave me more to learn than she knew I could easily get learnt, if I set
myself honestly to work, by twelve o’clock. She never allowed
anything to disturb me when my task was set; if it was not said rightly
by twelve o’clock, I was kept in till I knew it, and in general, even
when Latin Grammar came to supplement the Psalms, I was my own
master for at least an hour before dinner at half-past one, and for the
rest of the afternoon. My mother, herself finding her chief personal
pleasure in her flowers, was often planting or pruning beside me,—at
least if I chose to stay beside her. I never thought of doing anything
behind her back which I would not have done before her face; and
her presence was therefore no restraint to me; but, also, no
particular pleasure; for, from having always been left so much alone,
I had generally my own little affairs to see after; and on the
[160]whole, by the time I was seven years old, was already getting too
independent, mentally, even of my father and mother; and having
nobody else to be dependent upon, began to lead a very small,
perky, contented, conceited, Cock-Robinson-Crusoe sort of life, in
the central point which it appeared to me, (as it must naturally
appear to geometrical animals) that I occupied in the universe.
This was partly the fault of my father’s modesty; and partly of his
pride. He had so much more confidence in my mother’s judgment as
to such matters than in his own, that he never ventured even to help,
much less to cross her, in the conduct of my education; on the other
hand, in the fixed purpose of making an ecclesiastical gentleman of
me, with the superfinest of manners, and access to the highest
circles of fleshly and spiritual society, the visits to Croydon, where I
entirely loved my aunt, and young baker-cousins, became rarer and
more rare: the society of our neighbours on the hill could not be had
without breaking up our regular and sweetly selfish manner of living;
and on the whole, I had nothing animate to care for, in a childish
way, but myself, some nests of ants, which the gardener would never
leave undisturbed for me, and a sociable bird or two; though I never
had the sense or perseverance to make one really tame. But that
was partly because, if ever I managed to bring one to be the least
trustful of me, the cats got it. [161]
Under these favourable circumstances, what powers of imagination I

possessed, either fastened themselves on inanimate things—the
sky, the leaves, and pebbles, observable within the walls of Eden, or
caught at any opportunity of flight into regions of romance,
compatible with the objective realities of existence in the nineteenth
century, within a mile and a quarter of Camberwell Green.
Herein my father, happily, though with no definite intention other than

of pleasing me, when he found he could do so without infringing any
of my mother’s rules, became my guide. I was particularly fond of
watching him shave; and was always allowed to come into his room
in the morning (under the one in which I am now writing), to be the
motionless witness of that operation. Over his dressing-table hung
one of his own water-colour drawings, made under the teaching of
the elder Nasmyth. (I believe, at the High School of Edinburgh.) It
was done in the early manner of tinting, which, just about the time
when my father was at the High School, Dr. Munro was teaching
Turner; namely, in grey under-tints of Prussian blue and British ink,
washed with warm colour afterwards on the lights. It represented
Conway Castle, with its Frith, and, in the foreground, a cottage, a
fisherman, and a boat at the water’s edge.
When my father had finished shaving, he always told me a story

about this picture. The custom began without any initial purpose of
his, in consequence of my [162]troublesome curiosity whether the
fisherman lived in the cottage, and where he was going to in the
boat. It being settled, for peace’ sake, that he did live in the cottage,
and was going in the boat to fish near the castle, the plot of the
drama afterwards gradually thickened; and became, I believe,
involved with that of the tragedy of “Douglas,” and of the “Castle
Spectre,” in both of which pieces my father had performed in private
theatricals, before my mother, and a select Edinburgh audience,
when he was a boy of sixteen, and she, at grave twenty, a model
housekeeper, and very scornful and religiously suspicious of
theatricals. But she was never weary of telling me, in later years,
how beautiful my father looked in his Highland dress, with the high
black feathers.
I remember nothing of the story he used to tell me, now; but I have
the picture still, and hope to leave it finally in the Oxford schools,
where, if I can complete my series of illustrative work for general
reference, it will be of some little use as an example of an old-
fashioned method of water-colour drawing not without its
advantages; and, at the same time, of the dangers incidental in it to
young students, of making their castles too yellow, and their
fishermen too blue.
In the afternoons, when my father returned (always punctually) from

his business, he dined, at half-past four, in the front parlour, my
mother sitting beside him to hear the events of the day, and give
counsel and [163]encouragement with respect to the same;—chiefly
the last, for my father was apt to be vexed if orders for sherry fell the
least short of their due standard, even for a day or two. I was never
present at this time, however, and only avouch what I relate by
hearsay and probable conjecture; for between four and six it would
have been a grave misdemeanour in me if I so much as approached
the parlour door. After that, in summer time, we were all in the
garden as long as the day lasted; tea under the white-heart cherry
tree; or in winter and rough weather, at six o’clock in the drawing-
room,—I having my cup of milk, and slice of bread-and-butter, in a
little recess, with a table in front of it, wholly sacred to me; and in
which I remained in the evenings as an Idol in a niche, while my
mother knitted, and my father read to her,—and to me, so far as I
chose to listen.
The series of the Waverley novels, then drawing towards its close,
was still the chief source of delight in all households caring for
literature; and I can no more recollect the time when I did not know
them than when I did not know the Bible; but I have still a vivid
remembrance of my father’s intense expression of sorrow mixed with
scorn, as he threw down ‘Count Robert of Paris,’ after reading three
or four pages; and knew that the life of Scott was ended: the scorn
being a very complex and bitter feeling in him,—partly, indeed, of the
book itself, but chiefly of the wretches who were [164]tormenting and
selling the wrecked intellect, and not a little, deep down, of the subtle
dishonesty which had essentially caused the ruin. My father never
could forgive Scott his concealment of the Ballantyne partnership.
I permit myself, without check, to enlarge on these trivial

circumstances of my early days, partly because I know that there are
one or two people in the world who will like to hear of them; but
chiefly because I can better assure the general reader of some
results of education on after life, by one example in which I know all
my facts, than by many, in which every here and there a link might
be wanting.
And it is perhaps already time to mark what advantage and mischief,
by the chances of life up to seven years old, had been irrevocably
determined for me.
I will first count my blessings (as a not unwise friend once

recommended me to do, continually; whereas I have a bad trick of
always numbering the thorns in my fingers, and not the bones in
them).
And for best and truest beginning of all blessings, I had been taught
the perfect meaning of Peace, in thought, act, and word.
I never had heard my father’s or mother’s voice once raised in any

question with each other; nor seen an angry, or even slightly hurt or
offended, glance in the eyes of either. I had never heard a servant
scolded, nor even suddenly, passionately, or in any severe manner,
[165]blamed. I had never seen a moment’s trouble or disorder in any
household matter; nor anything whatever either done in a hurry, or
undone in due time. I had no conception of such a feeling as anxiety;
my father’s occasional vexation in the afternoons, when he had only
got an order for twelve butts after expecting one for fifteen, as I have
just stated, was never manifested to me; and itself related only to the
question whether his name would be a step higher or lower in the
year’s list of sherry exporters; for he never spent more than half his
income, and therefore found himself little incommoded by occasional
variations in the total of it. I had never done any wrong that I knew of
—beyond occasionally delaying the commitment to heart of some
improving sentence, that I might watch a wasp on the window pane,
or a bird in the cherry tree; and I had never seen any grief.
Next to this quite priceless gift of Peace, I had received the perfect
understanding of the natures of Obedience and Faith. I obeyed word,
or lifted finger, of father or mother, simply as a ship her helm; not
only without idea of resistance, but receiving the direction as a part
of my own life and force, a helpful law, as necessary to me in every
moral action as the law of gravity in leaping. And my practice in Faith
was soon complete: nothing was ever promised me that was not
given; nothing ever threatened me that was not inflicted, and nothing
ever told me that was not true. [166]
Peace, obedience, faith; these three for chief good; next to these,
the habit of fixed attention with both eyes and mind—on which I will
not farther enlarge at this moment, this being the main practical
faculty of my life, causing Mazzini to say of me, in conversation
authentically reported, a year or two before his death, that I had “the
most analytic mind in Europe.” An opinion in which, so far as I am
acquainted with Europe, I am myself entirely disposed to concur.
Lastly, an extreme perfection in palate and all other bodily senses,

given by the utter prohibition of cake, wine, comfits, or, except in
carefullest restriction, fruit; and by fine preparation of what food was
given me. Such I esteem the main blessings of my childhood;—next,
let me count the equally dominant calamities.
First, that I had nothing to love.
My parents were—in a sort—visible powers of nature to me, no more

loved than the sun and the moon: only I should have been annoyed
and puzzled if either of them had gone out; (how much, now, when
both are darkened!)—still less did I love God; not that I had any
quarrel with Him, or fear of Him; but simply found what people told
me was His service, disagreeable; and what people told me was His
book, not entertaining. I had no companions to quarrel with, neither;
nobody to assist, and nobody to thank. Not a servant was ever
allowed to do anything for me, but what it was their duty to do; and
why [167]should I have been grateful to the cook for cooking, or the
gardener for gardening,—when the one dared not give me a baked
potato without asking leave, and the other would not let my ants’
nests alone, because they made the walks untidy? The evil
consequence of all this was not, however, what might perhaps have
been expected, that I grew up selfish or unaffectionate; but that,
when affection did come, it came with violence utterly rampant and
unmanageable, at least by me, who never before had anything to
manage.
For (second of chief calamities) I had nothing to endure. Danger or

pain of any kind I knew not: my strength was never exercised, my
patience never tried, and my courage never fortified. Not that I was
ever afraid of anything,—either ghosts, thunder, or beasts; and one
of the nearest approaches to insubordination which I was ever
tempted into as a child, was in passionate effort to get leave to play
with the lion’s cubs in Wombwell’s menagerie.
Thirdly. I was taught no precision nor etiquette of manners; it was

enough if, in the little society we saw, I remained unobtrusive, and
replied to a question without shyness: but the shyness came later,
and increased as I grew conscious of the rudeness arising from the
want of social discipline, and found it impossible to acquire, in
advanced life, dexterity in any bodily exercise, skill in any pleasing
accomplishment, or ease and tact in ordinary behaviour. [168]
Lastly, and chief of evils. My judgment of right and wrong, and

powers of independent action, 1 were left entirely undeveloped;
because the bridle and blinkers were never taken off me. Children
should have their times of being off duty, like soldiers; and when
once the obedience, if required, is certain, the little creature should
be very early put for periods of practice in complete command of
itself; set on the barebacked horse of its own will, and left to break it
by its own strength. But the ceaseless authority exercised over my
youth left me, when cast out at last into the world, unable for some
time to do more than drift with its elements. My present courses of
life are indeed not altogether of that compliant nature; but are,
perhaps, more unaccommodating than they need be, in the
insolence of reaction; and the result upon me, of the elements and
the courses together, is, in sum, that at my present age of fifty-six,
while I have indeed the sincerest admiration for the characters of
Phocion, Cincinnatus, and Caractacus, and am minded, so far as I
may, to follow the example of those worthy personages, my own
private little fancy, in which, for never having indulged me, I am
always quarrelling with my Fortune, is still, as it always was, to find
Prince Ahmed’s arrow, and marry the Fairy Paribanou.
My present verdict, therefore, on the general tenour of my education

at that time, must be, that it was at [169]once too formal and too
luxurious; leaving my character, at the most important moment for its
construction, cramped indeed, but not disciplined; and only by
protection innocent, instead of by practice virtuous. My mother saw
this herself, and but too clearly, in later years; and whenever I did
anything wrong, stupid, or hard-hearted,—(and I have done many
things that were all three),—always said, ‘It is because you were too
much indulged.’
So strongly do I feel this, as I sip my coffee this morning, (May 24th,)

after being made profoundly miserable last night, because I did not
think it likely I should be accepted if I made an offer to any one of
three beautiful young ladies who were crushing and rending my
heart into a mere shamrock leaf, the whole afternoon; nor had any
power to do, what I should have liked better still, send Giafar (without
Zobeide’s knowing anything about it) to superintend the immediate
transport to my palace of all three;—that I am afraid, if it were left to
me at present to institute, without help from kinder counsellors, the
education of the younger children on St. George’s estate, the
methods of the old woman who lived in a shoe would be the first that
occurred to me as likely to conduce most directly to their future worth
and felicity.
And I chanced, as Fors would have it, to fall, but last week, as I was
arranging some books bought two years ago, and forgotten ever
since,—on an instance of the use [170]of extreme severity in
education, which cannot but commend itself to the acceptance of
every well informed English gentlewoman. For all well informed
English gentlewomen and gentle-maidens, have faithful respect for
the memory of Lady Jane Grey.
But I never myself, until the minute when I opened that book, could
at all understand Lady Jane Grey. I have seen a great deal, thank
Heaven, of good, and prudent, and clever girls; but not among the
very best and wisest of them did I ever find the slightest inclination to
stop indoors to read Plato, when all their people were in the Park. On
the contrary, if any approach to such disposition manifested itself, I
found it was always, either because the scholastic young person
thought that somebody might possibly call, suppose—myself, the
Roger Ascham of her time,—or suppose somebody else who would
prevent her, that day, from reading “piu avanti,” or because the
author who engaged her attention, so far from being Plato himself,
was, in many essential particulars, anti-Platonic. And the more I
thought of Lady Jane Grey, the more she puzzled me.
Wherefore, opening, among my unexamined books, Roger

Ascham’s Scholemaster, printed by John Daye, dwelling over
Aldersgate, An. 1571, just at the page where he gives the original
account of the thing as it happened, I stopped in my unpacking to
decipher the black letter of it with attention; which, by your leave,
good reader, you shall also take the trouble to do yourself, from this,
[171]as far as I can manage to give it you, accurate facsimile of the
old page. And trust me that I have a reason for practising you in
these old letters, though I have no time to tell it you just now.
“And one example, whether love or feare doth worke more

in a childe for vertue and learning, I will gladly report: which
may bee heard with some pleasure, t̄ followed with more
profite. Before I went into Germanie I came to Brodegate in
Leicestershire, to take my leave of that noble Lady Jane
Grey, to whom I was exceeding much beholding. Her
parentes, the Duke and the Dutchesse, with all the
householde, Gentlemen and Gentleweemen, were hunting
in the Parke: I found her in her chamber, reading Phædon
Platonis in Greeke, t̄ that with as much delite, as some
gentleman would read a mery tale in Bocase. After
salutation, and duetie done, with some other talk, I asked
her, why shee would leese such pastime in the Parke?
Smiling shee answered mee: I wisse, all their sport in the
Parke, is but a shadow to that pleasure yͪ I finde in Plato:
Alas, good folke, they never felt what true pleasure ment.”
Thus far, except in the trouble of reading black letters, I have given
you nothing new, or even freshly old. All this we have heard of the
young lady a hundred times over. But next to this, comes something
which I fancy will be unexpected by most of my readers. For the
fashion of all literary students, catering for the public, has hitherto
been to pick out of their author whatever bits they thought likely to be
acceptable to Demos, and to keep everything of suspicious taste out
of his [172]dish of hashed hare. Nay, ‘he pares his apple that will
cleanly eat,’ says honest George Herbert. I am not wholly sure,
however, even of that; if the apple itself be clean off the bough, and
the teeth of little Eve and Adam, what teeth should be, it is quite
questionable whether the good old fashion of alternate bite be not
the method of finest enjoyment of flavour. But the modern
frugivorous public will soon have a steam-machine in Covent
Garden, to pick the straw out of their strawberries.
In accordance with which popular principle of natural selection, the

historians of Lady Jane’s life, finding this first opening of the scene at
Brodegate so entirely charming and graceful, and virtuous, and
moral, and ducal, and large-landed-estate-ish—without there being
the slightest suggestion in it of any principle, to which any body could
possibly object,—pounce upon it as a flawless gem; and clearing
from it all the objectionable matrix, with delicate skill, set it forth—
changed about from one to another of the finest cases of velvet
eloquence to be got up for money—in the corner shop—London and
Ryder’s, of the Bond Street of Vanity Fair.
But I, as an old mineralogist, like to see my gems in the rock; and

always bring away the biggest piece I can break with the heaviest
hammer I can carry. Accordingly, I venture to beg of you also, good
reader, to decipher farther this piece of kindly Ascham’s following
narration: [173]
“And how came you, Madame, quoth I, to this deepe

knowledge of pleasure, t̄ what did cheefly allure you unto it,
seing not many women, but very fewe have attayned
thereunto. I will tell you, quoth shee, and tell you a troth,
which perchance ye will marvel at. One of the greatest
benefites that ever God gave me, is, that hee sent me so
sharpe and severe parentes, and so gentle a
schoolemaster. For whē I am in presence either of father or
mother, whether I speake, keepe silence, sit, stand, or go,
eate, drinke, be mery, or sad, bee swoing, playing, dancing,
or doing anything els, I must doe it, as it were, in such
weight, measure, t̄ number, even so perfectly, as God made
the world, or ells I am so sharply taunted, so cruelly
threatned, yea, presently sometimes, with pinches, nippes,
and bobbes, and other wayes which I will not name for the
honor I beare thē, so without measure misordered, that I
thinke my selfe in hell, till time come that I must goe to M.
Elmer who teacheth mee so gently, so pleasantly, with such
faire alluremētes to learning that I thinke all the time
nothing, whiles I am with him. And when I am called frō him,
I fall on weeping, because, whatsoever I doe els but
learning, is full of greefe, trouble, feare, and whole misliking
unto mee. And thus my booke hath been so much my
pleasure, t̄ bringeth daily to me more pleasure t̄ more, yͭ in
respect of it, all other pleasures, in very deede, bee but
trifles t̄ troubles unto mee.
Lady Jane ceases, Ascham speaks: I remm̄ ber this talke

gladly, bothe because it is so worthy of memory t̄ because
also it was the last talke that ever I had, and the last time,
that ever I saw that noble t̄ worthy Lady.”
Now, for the clear understanding of this passage,—I adjure you,

gentle reader, (if you are such, and [174]therefore capable of
receiving adjuration)—in the name of St. George and all saints,—of
Edward III. and all knights,—of Alice of Salisbury and all stainless
wives, and of Jeanne of France and all stainless maids, that you put
at once out of your mind, under penalty of sharpest Honte Ban, all
such thought as would first suggest itself to the modern novel writer,
and novel reader, concerning this matter,—namely, that the young
girl is in love with her tutor. She loves him rightly, as all good and
noble boys and girls necessarily love good masters,—and no
otherwise;—is grateful to him rightly, and no otherwise;—happy with
him and her book—rightly, and no otherwise.
And that her father and mother, with whatever leaven of human
selfishness, or impetuous disgrace in the manner and violence of
their dealing with her, did, nevertheless, compel their child to do all
things that she did,—rightly, and no otherwise, was, verily, though at
that age she knew it but in part,—the literally crowning and guiding
Mercy of her life,—the plaited thorn upon the brow, and rooted thorn
around the feet, which are the tribute of Earth to the Princesses of
Heaven. [175]
[Contents]
NOTES AND CORRESPONDENCE.
The minds of many of the friends of Mr. Septimus Hansard appear to

have been greatly exercised by my insertion of, and comments on,
the newspaper paragraph respecting that gentleman’s ministrations
to the poor of London.
I thought it unnecessary to take notice of the first communication

which I received on the subject, from a fashionable lady, informing
me, with much indignation, that Mr. Hansard had caught his fever in
the West-End, not in the East; and had been sick in the best society.
The following letter is of more importance, and its writer having
accepted what he calls “my kind offer” to print it, I have no
alternative, though he mistook, or rather misplaced, the real
kindness of my private note, which lay in its recommendation to
him, 2 not to accept the offer it made.
“135, Waterlow Buildings, Wilmott Street,

“Bethnal Green, E., May 14, 1875.
“Sir,—In your 49th Letter you say that we clergy are not priests, and
cannot sacrifice. You also say that we are wholly responsible for, and
the efficient causes of, horrible outrages on women. In your 51st
Letter you speak of my friend and chief, Mr. Hansard, as being
courageous, impulsive, and generous, but complacent, and living a
life “all aglow in vain”; and you compare him, in Bethnal Green, to a
moth in candle-grease.
“I know that I, as a priest, am responsible for much wrongdoing;

[176]but I must claim you, and all who have failed to be perfect
stewards of their material and spiritual property, as responsible with
me and the rest of the clergy for the ignorance and crime of our
fellow-countrymen.
“But I would ask you whether Mr. Hansard’s life, even as you know it,
(and you don’t know half the St. George-like work he has done and
is doing,) is not a proof that we priests can and do sacrifice;—that we
can offer ourselves, our souls and bodies?
“Of course I agree with you and Mr. Lyttel that the preaching of
‘Christ’s life instead of our lives’ is false and damnatory; but I am
sorry that, instead of backing those who teach the true and salutary
Gospel, you condemn us all alike, wholesale. I think you will find that
you will want even our help to get the true Gospel taught.
“Allow me also to protest pretty strongly against my friends and

neighbours here being compared to candle-grease. I fancy that on
consideration, you would like to withdraw that parable; perhaps,
even, you would like to make some kind of reparation, by helping us,
candle-grease-like Bethnal-greeners, to be better and happier.
“I am one of those clergymen spoken of in Letter 49, and ‘honestly

believe myself impelled to say and do’ many things by the Holy
Ghost; and for that very reason I am bound to remember that you
and other men are inspired also by the same Holy Ghost; and
therefore to look out for and take any help which you and others
choose to give me.
“It is because I have already received so much help from you that I
write this letter.
“I am, yours faithfully,

“Stewart D. Headlam,
“Curate of St. Matthew’s, Bethnal Green.
“To John Ruskin, Esq., LL.D.”
[177]
I at first intended to make no comments on this letter, but, as I re-

read, find it so modestly fast in its temper, and so perilously loose in
its divinity, as to make it my duty, while I congratulate the well-
meaning—and, I doubt not, well-doing—writer, on his agreement
with Mr. Lyttel that the preaching of “Christ’s life, instead of our lives,”
is false and damnatory; also to observe to him that the sacrifice of
our own bodies, instead of Christ’s body, is an equally heretical, and
I can assure him, no less dangerous, reformation of the Doctrine of
the Mass. I beg him also to believe that I meant no disrespect to his
friends and neighbours in comparing them to candle-grease. He is
unaccustomed to my simple English, and would surely not have
been offended if I had said, instead, “oil for the light”? If our
chandlers, now-a-days, never give us any so honest tallow as might
fittingly be made the symbol of a Christian congregation, is that my
fault?
I feel, however, that I do indeed owe some apology to Mr. Hansard

himself, to his many good and well-won friends, and especially to my
correspondent, Mr. Lyttel, for reprinting the following article from a

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LEARNING OBJECTIVES (LO) ......................................................................................... 9-4

KEY TERMS ........................................................................................................................... 9-4

APPLYING MARKETING KNOWLEDGE ...................................................................... 9-27

BUILDING YOUR MARKETING PLAN .......................................................................... 9-30

VIDEO CASE (VC)

APPENDIX D CASE (D)

IN-CLASS ACTIVITIES (ICA)

POWERPOINT RESOURCES TO USE WITH LECTURES

Selected Textbook Images (Ads, People, Products, and Websites)

Marketing Matters, Making Responsible Decisions, and/or Marketing Insights

POWERPOINT RESOURCES TO USE WITH LECTURES

In-Class Activities (ICA)

LEARNING OBJECTIVES (LO)

After reading this chapter students should be able to:

LO 9-1: Explain what market segmentation is and when to use it.

LO 9-5: Explain how marketing managers position products in the marketplace.

80/20 rule product differentiation

A. Segmentation is a Key to Success

• This focus has generated over $1 billion in sales annually.

B. Delivering WOW Customer Service

• All new Zappos employees go through 4 weeks of customer-loyalty training.

#1. Deliver WOW through service. This focus on exemplary customer

#6. Build open and honest relationships with communications.

• The Zappos strategy illustrates successful market segmentation and targeting.

I. WHY SEGMENT MARKETS? [LO 9-1]

A. What Market Segmentation Means

• Market segmentation involves aggregating prospective buyers into groups,

• Different market segments cause firms to use product differentiation:

a. Is a marketing strategy that:

b. As the perceived differences, they may involve:

1. Segmentation: Linking Needs to Actions.

a. [Figure 9-1] The process of segmenting a market and selecting specific

b. Market segmentation stresses two things:

• Develops specific marketing mix (4 Ps) actions. This may involve:

[Video 9-1: Zappos TV Video]

a. The Zappos.com target customer segment consists of people who want:

b. Zappos’ marketing actions include:

c. These actions allow Zappos.com to:

3. Using Market Product Grids

a. Three key market segments of sleepers:

c. A market-product grid is a framework to relate the market segments of

d. [Figure 9-2] Shows a market-product grid in which:

B. When and How to Segment Markets

• One-size-fits-all mass markets no longer exist.

• Procter & Gamble has a new segmentation strategy—offer products to reach:

a. High income families.

b. Low income families.

1. One Product and Multiple Market Segments.

a. When a firm produces only a single product or service, it: