Full download Marketing 13th Edition Kerin Solutions Manual all chapter 2024 pdf

Marketing 13th Edition Kerin Solutions
Manual
Go to download the full and correct content document:
https://testbankfan.com/product/marketing-13th-edition-kerin-solutions-manual/
More products digital (pdf, epub, mobi) instant
download maybe you interests ...
Marketing 13th Edition Kerin Test Bank
https://testbankfan.com/product/marketing-13th-edition-kerin-
test-bank/
Marketing 12th Edition Kerin Solutions Manual
solutions-manual/
Marketing 11th Edition Kerin Solutions Manual
solutions-manual/
Marketing The Core 7th Edition Kerin Solutions Manual
https://testbankfan.com/product/marketing-the-core-7th-edition-
kerin-solutions-manual/
Marketing The Core Canadian 5th Edition Kerin Solutions

Manual
https://testbankfan.com/product/marketing-the-core-canadian-5th-
edition-kerin-solutions-manual/
Marketing The Core Canadian 4th Edition Kerin Solutions

Manual
https://testbankfan.com/product/marketing-the-core-canadian-4th-
edition-kerin-solutions-manual/
Marketing 11th Edition Kerin Test Bank
test-bank/
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.
9-19
• 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.
9-20
Another random document with
no related content on Scribd:
GOOD AS GOLD
By B. Eisner and A. B. Leavitt
All these words, from Cosmetic to Indian Tent, from

Fish to Tinge, are good Rotarians. Mr. Babbitt knows
and uses them all. Do you? If not, why not?
1 2 3 4 5 6 7 8 9 10 11
12 13 14
15 16 17 18 19
20
21 22 23 24 25 26 27
28 29 30
31 32 33 34 35 36
37 38 39
40 41 42 43 44
45 46 47 48
49 50 51 52 53 54
55
56 57 58 59 60 61 62
63 64 65
66 67 68
[38]
HORIZONTAL
Cosmetic
1 Glass39vessel
Instrument
5 for writing After40
Christ
Blaze8 Pert.41
to air
Propeller
12 Tumult
42
Wind-flower
13 Toward
44
Girl’s14hat Nimble
45
Exhaust
15 Forehead
47
Sink17 Dens49
Many 18days Possesses
51
Shell-fish
20 Ringlet
53
Cut 21 Mixture
55 of herbs
Artful24 Stop56
Delight
25 Furnish
59 with side
Rawhide
28 supports
Water 30fowl Annoyed
60
Exclamation
31 Organ63 of hearing
Clamor33 Result
64
Household
35 utensils One65
Either36 Manage
66
Consecrate
37 Stationary
67
People38 who talk Indian
68tent
foolishly
VERTICAL
Fish 1 Native
30 American race
Scarcer
2 Bricklayers’
32 box for
Epoch3 mortar
Human 4 being To shoot
34 forth
Equals5 By 35
Perfume
6 Cereal
36
Stylish
7 Part 41
of dress
Small8in number Trunk43
Consumed
9 Note45of scale
One10 who creates Hate46
Watering
11 place Ourselves
48
Internal
16 Sweet50 flower extract
Spirit19actuating Stags51
manners and customs Wooden
52 shoe
Overcome
21 Place54
Aloft22 Fixed56
People
23 who run away Part 57
of “to be”
secretly Period
58
Companion
25 Wager60
By, near
26 Knock61
Soft 27
tissues Tinge62
Loiter
29
[41]
[Contents]
Puzzle No. 64
LULLABY
By Hugh P. Evans
Just a song at evening. This one should be a mere

pleasant moment. If you love ease, here it is.
However, “easy to solve and hard to construct,” is the
way the song sometimes should go. It is hard to keep
inside a small dictionary.
1 2 3 4 5 6 7 8 9 10
11 12 13 14
15 16 17 18 19 20
21 22 23 24 25
26 27 28 29
30 31 32 33
34 35 36 37 38
39
40 41 42 43 44
45 46 47 48
49 50 51 52 53 54
55 56 57 58
59 60 61 62 63
64 65 66 67 68
69 70
[40]
HORIZONTAL
Shrubs1 Describes
40 the
Ripe 6 crowned head
Match11 Crowd42
S. Am.
12 tuber Augment
45
Famous
13 poem On behalf
46 of
Otherwise
15 Finish
48
Double
16 Character
49
Knob18 Strengthening
51
Towards
20 Couch53
Weary21 Sounds
55 of sudden
Height
23 pain
Came 25together Tedium
56
A cleanser
26 Hurried
58
A measure
28 Forward
59
Harmonize
29 Loathe
60
Lick 30
up Short61paragraph
Beverage
32 That63thing
Club33 Tendency
64
Spectacles
34 Japanese
66 coin
Refuges
37 Vexes67
A high
39 Moslem office A gnawer
69
Arenas
70 for putters
VERTICAL
Mexican
1 donkey Memorize
35
You and
2 me Crafty
36
Place3 Head 37gear
Cuts 4 Sister
38of mercy
Musical
5 composition Pull 40
up
Fertilizer
6 Elongated
41 fishes
A bad7waiter Effluvium
43
Mexican8 gum tree Titans
44
N. E. 9State (abbr.) Large46wood
Consumed
10 A form
47 of exercise
Palms11 off Possessor
50
Fond14lovers Add 51
That17thing’s Small52bed
Natural
19 metal Does54not succeed
Cabbage
22 Barren
56
Ring24 up Lake57
Silent
25 Coal60scuttle
Flapjack
27 More62(Shakespeare)
Houses
29 of call Not any
65
Peas31“en masse” Within
68
Wash33
[43]
[Contents]
Puzzle No. 65
QUIET COMFORT
By Marcam
This one stays close to the amenities of English.

There are few words you don’t use, if your
vocabulary is as ample as a cross word puzzler’s
should be. By the way, has your vocabulary
expanded since you’ve started puzzling?
1 2 3 4 5 6 7 8 9 10 11 12 13
14 15 16
17 18 19 20 21 22 23
24 25 26 27 28 29
30 31 32 33 34 35
36 37 38 39
40 41 42 43
44 45 46 47 48 49 50
51 52 53 54 55 56 57 58
59 60 61
62 63 64 65 66 67
68 69 70 71 72 73 74
75 76 77 78
79 80 81 82 83 84 85
86 87 88 89 90 91
92 93 94 95 96
97 98 99 100 101 102 103
104 105 106
107 108 109
[42]
HORIZONTAL
To testify
1 under oath Substitute
61
Criminal
5 Loose62part of coat
Exceeded
9 At another
63 time
Tool 14 A presiding
65 officer
Knock15 Bustle
67
Caprice
16 Healthy
68 physical state
A grain
17 for making At that
70 place
malt Prepare
73 for
Allayed
20 publication
Polly22
wants a cracker Culmination
75
Beast24of burden Greek77mountain
To reconcile
25 to a loss Worry78
Glacial
27 ridges Guided
80
Belonging
29 to us Tracked
82
Explain
30 Gratuities
86
Laboriously
32 A certain
88 unknown
To the
35inside of quantity
Closest
36 To shut
90 up
Specious
38 Hastened
92
Hostelries
40 Way93 of acting
First41
woman Bag 94
To dress
43 Caustic
96 alkaline
Eagle45 solution
Privately
46 Presents
97 itself
Nidus48 Single
99 things
To deface
51 More
102stately
Norse53deity Shelter
104
A weight
55 of Turkey Individual
105
King57 Article
106 of clothing
Feathery
59 Fears
107greatly
Having
60 ten legs Mist
108
of condensed
vapor
Stuffed
109
VERTICAL
To humiliate
1 To discourse
49 on
Clergyman
2 Praise
50
Night 3bird Southern
52 state (abbr.)
Killed4 Artificial
54 language
Period6 of time Poem 56
Used 7by cowboys Finis58
Open8 Goddess
64 of retributive
From10a great distance justice
Title 11
of address Weapon
66 for airplane
Hardy12 Horse69food
In the
13way Mask 71
Kind18 of tree Precipitate
72
Longed
19 for Short74paragraph
Terminates
20 Cupid76
Specified
21 quantity Spring
78
Return
22 Fearful
79
Away 23 Aged80
Greek26God of War The 81emu
Vehicle
28 on runners Pastries
83
Dam31 in a river Less84 interesting
Indians
33 of Utah Looked
85 askance
Employed
34 Organ87 of hearing
Writing
35 fluids Belonging
89 to thee
Vexation
37 Grain91
Inhabitant
39 of northern Useless
93 plant
region Jot 95
Having
42 such a face Body98of water
To infer
44 Negative
100
To eject
45 Beverage
101
Concerning
46 Invitation
103
Wear47away
[45]
[Contents]
Puzzle No. 66
DIAMONDS WITHIN DIAMONDS
By Isis
Plenty of trouble ahead here for the unwary solver. The

four-letter word border is a tricky thing to monkey with,
for often the wrong word contains the same number of
letters and answers the definition perfectly. A good
many unkeyed letters, but none in critical places.
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
16 17 18 19 20
21 22 23 24 25
26 27 28 29
30 31 32 33 34
35 36 37 38 39 40 41
42 43 44 45
46 47 48 49 50 51 52
53 54 55 56 57 58
59 60 61
62 63 64 65 66 67
68 69 70 71 72
73 74 75 76 77 78
79 80 81 82 83 84
85 86 87 88
89 90 91 92 93 94 95 96
97 98 99 100 101 102
103 104 105 106 107
108 109 110 111
[44]
HORIZONTAL
Mountain
1 range A decree
61
between Italy and Feeble-mindedness
62
Switzerland Source64
Minute 4 particle Crested
65 Brazilian bird
Affirmative
8 votes Sun 68God
Steep 12eminence A right
69
Evergreen
16 A brace
71
Skill 17 Square72 of type
Since 20 Incorporated
73 (abbr.)
Substitute
21 Married
75 male Indian
Correlative
23 of neither Literary
78 collection
Net to24be drawn along Joins79
bottom A drop82
To mock
26 Scarcity
83
Rough 27 cloth Ox-like
85 animal
Issue 29forth Lake86
Kind30 of muffin Row87
Close 31by Owns 88
Not anything
32 Girl’s90name
Mournful
33 Consumed
92
Fairly35good Hebrew94 measure of
A modern
37 dance capacity
Speckled
39 To originate
97
Industrious
42 insect Sailor
100
Musical
43 instrument In style
101 (Fr.)
Orang-outang
45 Transgress
103
The 46thing For104
all time
Equipped
47 Requested
107
To deprive
49 Branches
108 of learning
Similar
52 to Look
109 for
To calumniate
53 Female
110 deer
Sick55 Arrived
111
A bird
57
Evening
59
Regained
60
VERTICAL
Distant
1 Addition
50 to a document
Brim 2 Weave51
Hurl 3 Hail 54
Silvery
4 Wrath55
To play
5 with Support
56
Belonging
6 to Playing
58 card
Inorganic
7 natural Song62
substance Opportunity
63
Constitutionals
8 Rough66
You 9 Indian
67servant
Termination
10 Anxious
70 (alternate
Writing
11 spelling)
Musical
13 composition Country
71 in Europe
Affirmative
14 Crying
74 earnestly
Rule15 Crag76rising above
Soft 17
drink glacier
Study18 Said77
Sweet19 potato Compound
78 yielding
Halting
22 chrysphanic acid
Essence
25 Sacred
80 image
Fixed27as to time Says81
Argues
28 Clowns
83
Polite
30 Interjection
84
Branches
34 Plateau
89
Raised
35 platform Surface
91 of fibers
Ointment
36 Harden
93
Remiss
38 Springtime
95 of life
Leave40out Yield96
Article
41 of furniture Russian
98 village
Grains
43 Before
99
Witnesses
44 Consumed
101
Concerning
47 Dull102
Deserve
48 Myself
105
Negative
106
[47]
[Contents]
Puzzle No. 67
A STAID FORM
By Charles Erlenkotter
This plot of crosses and dots looks safe and

conservative. There are, however, several perfectly
good English words that will give you a thrill. By
strange coincidence, this odd pattern was used by
another contributor and will be found elsewhere in the
book. A comparison of the two puzzles will be
interesting.
1 2 3 4 5 6 7 8 9 10 11 12
13 14 15
16 17
18 19 20 21
22
23 24 25 26 27 28 29
30 31 32 33
34
35 36 37 38 39
40 41 42 43 44
45
46 47 48 49 50 51 52
53 54
55 56 57
58 59
[46]

Full download Marketing 13th Edition Kerin Solutions Manual all chapter 2024 pdf

Uploaded by

Copyright:

Available Formats

You might also like

Full download Marketing 13th Edition Kerin Solutions Manual all chapter 2024 pdf

Uploaded by

Document Information

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Full download Marketing 13th Edition Kerin Solutions Manual all chapter 2024 pdf

Uploaded by

Copyright:

Available Formats

Marketing 13th Edition Kerin Solutions

Marketing 13th Edition Kerin Test Bank

Marketing 12th Edition Kerin Solutions Manual

Marketing 11th Edition Kerin Solutions Manual

Marketing The Core 7th Edition Kerin Solutions Manual

Marketing The Core 5th Edition Kerin Solutions Manual

Marketing The Core Canadian 5th Edition Kerin Solutions

Marketing The Core Canadian 4th Edition Kerin Solutions

Marketing 11th Edition Kerin Test Bank

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:

2. Multiple Products and Multiple Market Segments.