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CHAPTER SUMMARY
1. Target marketing includes three activities: market segmentation, market targeting, and
market positioning. Market segments are large, identifiable groups within a market.
2. Two bases for segmenting consumer markets are consumer characteristics and
consumer responses. The major segmentation variables for consumer markets are
geographic, demographic, psychographic, and behavioral. Marketers use them singly
or in combination.
3. Business marketers use all these variables along with operating variables, purchasing
approaches, and situational factors.
4. To be useful, market segments must be measurable, substantial, accessible,
differentiable, and actionable.
5. We can target markets at four main levels: mass, multiple segments, single (or niche)
segment, and individuals.
6. A mass market targeting approach is adopted only by the biggest companies. Many
companies target multiple segments defined in various ways such as various
demographic groups who seek the same product benefit.
7. A niche is a more narrowly defined group. Globalization and the Internet have made
niche marketing more feasible to many.
8. More companies now practice individual and mass customization. The future is likely
to see more individual consumers take the initiative in designing products and brands.
9. Marketers must choose target markets in a socially responsible manner at all times.
Second, the concepts of consumer characteristics and responses may be new to many
students as it applies across different age groups and different consumers. Students who
have little contact with other people outside their sphere of influence may have a hard
time realizing that other consumers hold differing views and have different usages for
products and services.
PROJECTS
1. Students should turn in their market segmentation segment of their semester-long new
product or service report.
2. Students should select a product or service that they are familiar with, such as jeans,
computers, or personal CD players. Once these items are selected, the students must
undertake research into the specific items: target market and market segmentation.
Student reports should contain information as to: How large is the target market, what
is the future growth potential of this target market, how do/does the marketer reach
this target market and so on? The second section of this project is for the students to
“re-position” this product to another market segment. For example, if the students
select personal CD players as their product of choice, and confirm that the target
market for this is Gen Y, then the students should define how the manufacturers of
personal CD players will attempt to re-position the product to attract the baby boomer
generation to increase their purchases of personal CD players.
In your role as Jane Melody’s assistant, you are responsible for market segmentation
and targeting for Sonic’s PDA product. Look at the SWOT Analysis, Market
Description, and Competitive Review sections and then answer:
Summarize your conclusions in a written marketing plan or enter them in the Market
Demographics and Target Markets sections of Marketing Plan Pro. Also note any
additional research you may need in the Marketing Research Section of Marketing Plan
Pro.
ASSIGNMENTS
The population of Americans over 50 years of age will swell to 115 million in the next 25
years. In small groups, have the students detail the demographic information on this
group of Americans (ages, buying power, perception of themselves, etc.) and suggest
some key marketing opportunities mined from this information. For example, if seniors
often make buying decisions based on lifestyle and not age, as the vignette mentions,
does this information present marketing opportunities for such industries as travel, bio-
medical industries, at-home exercise equipment, and automobiles? If so, who is going to
be affected and to what extent? Student answers should contain detailed demographic
information about this target market and should draw a connection between what the
information says and what is the potential for marketers.
The upcoming demographic changes for the U.S. population calls for Hispanics to be the
largest demographic segment in the U.S. by 2050. Assuming that this is true, either in
small groups or individually, ask the students to comment on how this demographic shift
will change the segmentation in: a) the grocery industry, b) the fast-food industry, and c)
the casual dining industry. Student answers should include key demographic and lifestyle
facts and figures about these markets and their consumers.
The firm Claritas, Inc. has developed a geoclustering system called PRIZM®. Assign
students the task of visiting this site and collecting the marketing information available
for their particular zip code (home or school). In a report, ask the students to comment on
the accuracy, implications, and usefulness of this information for marketers. How can a
marketer “target” his/her audience using PRIZM?
Effective segmentation criteria are necessary for target market identification. Market
segments must be measurable, substantial, accessible, differentiable, and actionable.
However, not all segmentation schemes are useful—the text uses table salt buyers for
example. Students are to provide three examples of those products or services in which:
segmentation criteria are not necessary and three examples where segmentation criteria
are an absolute necessity. Students are to exchange their findings and explain these
differences. Additional discussion (or assignment) could be to have the students devise a
segmentation strategy for the products or services that they found not currently, where
segmentation criteria are necessary. In other words, to “create” a segmentation distinction
for—“table salt”!
END-OF-CHAPTER SUPPORT
MARKETING DEBATE—Is Mass Marketing Dead?
With marketers increasingly adopting more and more refined market segmentation
schemes—fueled by the Internet and other customization efforts—some claim mass
marketing is dead. Others counter there will always be room for large brands employing
marketing programs to target the mass market.
Take a position: Mass marketing is dead versus mass marketing is still a viable way to
build a profitable brand.
Pro: People are consumers and people have a number of basic personal and societal needs
that transcends individuality. Certain basic human physical needs (food, clothing, and
shelter, for example) can be best met through mass marketing. In addition, consumers
desire low prices and functionality in some of their basic products and services. Mass
marketing allows the firm to foster the lowest price through economies of production,
distribution, and marketing. Additionally, people like to have their daily life remain
uncomplicated; that is best served through mass produced products. Asking the consumer
to make too many choices can backfire on marketers as it can overly complicate and
stress consumers—for example, the design of a new home can be both a rewarding and
Copyright 2012 Pearson Education, Inc. publishing as Prentice Hall
stressful experience; the intended owner(s) is(are) asked to make literally hundreds of
decisions about size, floor plans, colors, and options throughout the process. Not
complicating a consumer’s life, through mass production and mass marketing of products
can create a viable marketing niche for companies.
Con: People are consumers and with the plethora of product and service choices available
to solve their problems today, a firm must produce individual and customized products to
compete. Basic human needs and wants can be delivered to the consumer by a wide range
of choices. Technology has given the consumer the power and ability to interact with
manufacturers in producing the exact product, with the exact features, and at the target
price desired. Consumers are better educated and better informed than previous
generations. Consumers are also more sophisticated than ever before. These increases in
information, technology, and sophistication are causing firms to respond to the
consumers’ wishes for individuality. Accepting the concept of “individuality” in the
production of goods and services is the only option for many firms. Individuality and the
service that that concept demands can lead to a “supplier-consumer” relationship that can
and will build strong brand preferences. Those firms who choose not to compete or fail to
compete in these arenas run the risk of falling behind competition and in experiencing the
subsequent losses in market share and profits.
2.) Does HSBC’s most recent campaign resonate with its target audience? Why or
why not?
Suggested Response: Student answers will vary. Good students will comment on how
this most recent campaign embraces the notion of multiple viewpoints and different
interpretations across countries and peoples. Also, according to the note, this strategy is
stated as “It encapsulates our global outlook that acknowledges and respects that people
value things in very different ways.”
1.) What are the pros and cons to BMW’s selective target marketing? What has the
firm done well over the years and where could it improve?
Suggested Answer: Student answers will vary as to the pros and cons of BMW’s selective
target marketing. Good students will note that BMW has created a different automobile
for each of their segmented target markets while keeping the ‘ultimate driving machine’
tagline consistent across all products.
Good students will note that in the article, is stated “research showed that they cared less
about the bragging rights of the BMW brand and instead desired a variety of design, size,
price, and style choice. As a result, the company took several steps to grow its product
line by targeting specific market segments, which resulted in unique premium-priced cars
such as SUVs, convertibles, roadsters, and less expensive compact cars, the 1 Series. In
addition, BMW redesigned its 3, 5, and 7 Series cars, making them unique in appearance
yet remaining exceptional in performance. BMW’s full range of cars now include the 1
Series, 3 Series, 5 Series, 6 The redesign of the 7 Series, BMW’s most luxurious car,
targeted a group called “upper conservatives.” These wealthy, traditional consumers
traditionally don’t like sportier automobiles. BMW successfully launched the X5 by
targeting “upper liberals” who achieved success in the 1990s and had gone on to have
children and take up extra-curricular activities such as biking, golf, and skiing. These
consumers needed a bigger car for their active lifestyles and growing families, so BMW
created a high-performance luxury SUV. BMW refers to its SUVs as Sport Activity
Vehicles in order to appeal even more to these ac BMW created the lower-priced 1 Series
and X3 SUV to target the “modern mainstream,” a group who are also family-focused
and active but had previously avoided BMW’s because of the premium cost. The 1 Series
reached this group with its lower price point, sporty design, and aspiration to own a
luxury brand. The X3 also hit home with its smaller, less expensive SUV design. BMW
introduced convertibles and roadsters to target “post-moderns,” a high-income group that
2.) BMW’s sales slipped during the worldwide recession in 2008 and 2009. Is its
segmentation strategy too selective? Why or why not?
Suggested Answer: Student answers will vary, but sales slippage is not always associated
with a too selective segmentation as to overall financial conditions of their target
market(s), increased price competition from other automobile manufacturers and even
increased product competition as firms such as Infiniti create products known as “BMW
killers.”
Demographic Segmentation
In demographic segmentation, we divide the market by variables such as age, family size,
family life cycle, gender, income, occupation, education, religion, race, generation,
nationality, and social class.
A) Consumer needs, wants, usage rates, and product and brand preferences are often
associated with demographic variables.
B) Demographic variables are easy to measure.
Life Stage
A) Persons in the same part of the life cycle may differ in their life stage. Life stage
defines a person’s major concern. These life stages present opportunities for
marketers who can help people cope with their major concerns.
Gender
A) Men and women have different attitudes and behave differently, based partly on
genetic makeup and partly on socialization.
B) Some traditionally more male-orientated markets, are beginning to recognize
gender segmentation, changing how they design and sell their products.
Income
A) Income segmentation is a long-standing practice in product and service
categories.
B) However, income does not always predict the best customers for a given product.
C) Increasingly, companies are finding their markets are hourglass shaped as middle-
market U.S. consumers migrate toward both discount and premium products.
Marketing Insight
Trading Up, Down, and Over
A new pattern in consumer behavior has emerged in recent years: “New Luxury” and in
order to trade up to these brands that offer emotional benefits, consumers often “trade
down” by shopping at discounters.
The norms, language nuances, buying habits, and business practices of multicultural
markets need to be factored into the initial formulation of a marketing strategy, rather
than added as an afterthought.
Hispanic-Americans
A) Hispanic-Americans have become the largest minority in the country with
annual purchasing power estimated to be over $1 trillion in 2010—the Hispanic-
American market holds a wide variety of sub-segments, with roughly two dozen
nationalities including Cuban, Mexican, Puerto Rican, Dominican, and other
Central and South American groups, and a mix of cultures, physical types, racial
backgrounds, and aspirations.
Copyright 2012 Pearson Education, Inc. publishing as Prentice Hall
B) Hispanic-Americans often share strong family values—several generations
may reside in one household—and strong roots to their original country of origin.
They have a need for respect, brand loyalty, and a keen interest in product quality.
C) Marketers are reaching out to Hispanic-Americans with targeted promotions,
ads, and Web sites but need to be careful to capture the nuances of cultural and
market trends. U.S.-born Hispanic-Americans also have different needs and tastes
than their foreign-born counterparts and, though bilingual, often prefer to
communicate in English.
African-Americans
A) African-Americans have had a significant economic, social, and cultural
impact on U.S. life, influencing inventions, art, music, sports, fashion, and
literature. Like many cultural segments, they are deeply rooted in the U.S.
landscape while also proud of their heritage and respectful of family ties.
Asian-Americans
A) According to the U.S. Census Bureau, “Asian” refers to people having origins
in any of the original peoples of the Far East, Southeast Asia, or the Indian
subcontinent. The Asian-American market has been called the “invisible market”
because, compared to Hispanic-Americans and African-Americans, it has
traditionally received a disproportionally small fraction of U.S. companies’ total
multicultural marketing expenditure.
Psychographic Segmentation
Psychographics is the science of using psychology and demographics to better understand
consumers.
A) In psychographic segmentation, buyers are divided into different groups on the
basis of psychological/personality traits, lifestyle, or values.
B) One of the most popular commercially available classification systems is SRI
Consulting Business Intelligence’s VALS framework.
1) The major tendencies of the four groups with high resources are:
a. Innovators
b. Thinkers
c. Achievers
d. Experiencers
2) The major tendencies of the four groups with lower resources are:
a. Believers
b. Strivers
Within a given target market industry and customer size, a company can segment further
by purchase criteria.
MARKET TARGETING
Once a firm has identified its market-segment opportunities, it must decide how many
and which ones to target. This has lead some researchers to advocate a needs-based
market segmentation approach.
Single-Segment Concentration
With single-segment concentration, the firm markets to only one particular
segment.
1) Through concentrated marketing, the firm gains deep knowledge of the segment’s needs
and achieves a strong market presence.
2) A niche is a more narrowly defined customer group seeking a distinctive mix of benefits
within a segment. Marketers usually identify niches by dividing a segment into
subsegments.
a. Niche marketers aim to understand their customers’ needs so well that
customers willingly pay a premium.
3) However, there are risks. A market segment can turn sour or a competitor
may invade the segment.
They log onto the Internet; look up information and evaluations of product or service
offerings; conduct dialogue with suppliers, users, and product critics; and in many cases
design the product they want.
Title: Sandi
Kertomuksia Joelta
Language: Finnish
Kertomuksia Joelta
Kirj.
EDGAR WALLACE
Erkki Valkeala
SISÄLLYS:
Kuninkaan kasvatus
Kivenpitäjät
Monrovian Bosambo
Unelias mies
Erityiskirjeenvaihtaja
Tanssikivet
Kauniiden unien metsä
Akasavalaiset
Paholaismetsä
Mlinon rakkaus
Poppamies
Yksinäinen
Näkijä
Sodan koirat
KUNINKAAN KASVATUS
Sanders nyökkäsi.
— Miksei.
— Tietysti tiesin, että hän oli musta, jatkoi neiti, ja minä tiesin
sen… se oli aivan kauheaa.
— Tosi on, rakas neiti, sanoi Sanders, — että Peter ei ollut niin
ihana kuin te kuvittelitte, hän ei ollut jalo, kirkassilmäinen lapsi, hän
elää likaisesti — eikö niin?
— Kun sinä käyt, maa vapisee sinun jalkojesi alla, mahtava joki,
joka vyöryy alas suureen veteen, jakautuu sinun käskystäsi, metsän
puut vapisevat ja pedot hiipivät piiloon, kun sinun voimasi lähtee
rajojen ulkopuolelle.
*****