158 CHAPTER 8 IDENTIFYING MARKET SEGMENTS AND SELECTING TARGET MARKETSNot all attempts to target children, minorities, or other segments draw criticism.Colgate-Palmolive’s Colgate Junior toothpaste has special features designed to get childrento brush longer and more often. Golden Ribbon Playthings has developed ahighly acclaimed and very successful black character doll named “Huggy Bean” to connectminority consumers with their African heritage. Other companies are alsoresponding to the needs of specific segments. Black-owned ICE theaters noticed thatalthough moviegoing by blacks has surged, there is a dearth of inner-city theaters, so itbegan opening theaters in Chicago and other cities. ICE partners with the black communitiesin which it operates, using local radio stations to promote films and featuringfavorite foods at concession stands. 36Thus, in the choice of market targets, the issue is not who is targeted, but ratherhow and for what purpose. Socially responsible marketing calls for targeting and positioningthat serve not only the company’s interests but also the interests of those targeted.37EXECUTIVE SUMMARYCompanies usually are more effective when they target their markets. Target marketinginvolves three activities: market segmentation, market targeting, and market positioning.Markets can be targeted at four levels: segments, niches, local areas, and individuals.Market segments are large, identifiable <strong>gr</strong>oups within a market, with similarwants, purchasing power, location, buying attitudes, or buying habits. A niche is amore narrowly defined <strong>gr</strong>oup.Many marketers localize their marketing pro<strong>gr</strong>ams for certain trading areas,neighborhoods, and even individual stores. The ultimate in segmentation is individualmarketing and mass customization, a trend that is <strong>gr</strong>owing as more customers take theinitiative in designing and buying products and brands. In addition, marketers mustanalyze the patterns of segmentation in a market to get a sense of their positioningalternatives and that of the competitors.Markets are segmented in a three-step procedure of surveying, analyzing, and profiling.The major segmentation variables for consumer markets are geo<strong>gr</strong>aphic, demo<strong>gr</strong>aphic,psycho<strong>gr</strong>aphic, and behavioral, to be used singly or in combination. Businessmarketers can use all of these variables along with operating variables, purchasingapproaches, situational factors, and personal characteristics. To be useful, market segmentsmust be measurable, substantial, accessible, differentiable, and actionable.Once a firm has identified its market-segment opportunities, it has to evaluatethe various segments and decide how many and which ones to target. In evaluatingsegments, managers look at the segment’s attractiveness indicators and the company’sobjectives and resources. In choosing which segments to target, the company canfocus on a single segment, selected segments, a specific product, a specific market, orthe full market; in the full market, it can use either differentiated or undifferentiatedmarketing. It is important for marketers to choose target markets in a socially responsiblemanner, by ensuring that the targeting serves the interests of the market beingtargeted as well as the company.NOTES1. Regis McKenna, “Real-Time <strong>Marketing</strong>,” Harvard Business Review, July–August 1995, p. 87.2. See James C. Anderson and James A. Narus, “Capturing the Value of SupplementaryServices,” Harvard Business Review, January–February 1995, pp. 75–83.
Notes 1593. See Tevfik Dalgic and Maarten Leeuw, “Niche <strong>Marketing</strong> Revisited: Concept, Applications,and Some European Cases,” European Journal of <strong>Marketing</strong> 28, no. 4 (1994): 39–55.4. Hermann Simon, Hidden Champions (Boston: Harvard Business School Press, 1996).5. Paul Davidson, “Entrepreneurs Reap Riches from Net Niches,” USA Today, April 20, 1998,p. B3.6. See Don Peppers and Martha Rogers, The One to One Future: Building Relationships OneCustomer at a Time (New York: Currency/Doubleday, 1993).7. B. Joseph Pine II, Mass Customization (Boston: Harvard Business School Press, 1993); B.Joseph Pine II, Don Peppers, and Martha Rogers, “Do You Want to Keep Your CustomersForever?” Harvard Business Review, March–April 1995, pp. 103–14.8. “Creating Greater Customer Value May Require a Lot of Changes,” OrganizationalDynamics, Summer 1998, p. 26.9. Andy Wang, “CDuctive.com Kicks Off New MP3 Store,” E-Commerce Times, June 2, 1999,www.ecommercetime.com; Erick Schonfeld, “The Customized, Digitized, Have-It-Your-WayEconomy,” Fortune, September 28, 1998, pp. 115–24; Jim Barlow, “Individualizing MassProduction,” Houston Chronicle, April 13, 1997, p. e1; Sarah Schafer, “Have It Your Way,”Inc., November 18, 1997, pp. 56–64.10. Alan R. Andreasen and Russell W. Belk, “Predictors of Attendance at the Performing Arts,”Journal of Consumer Research, September 1980, pp. 112–20.11. For a market-structure study of the hierarchy of attributes in the coffee market, see DipakJain, Frank M. Bass, and Yu-Min Chen, “Estimation of Latent Class Models withHeterogeneous Choice Probabilities: An Application to Market Structuring,” Journal of<strong>Marketing</strong> Research, February 1990, pp. 94–101.12. Kate Kane, “It’s a Small World,” Working Woman, October 1997, p. 22.13. Leah Rickard, “Gerber Trots Out New Ads Backing Toddler Food Line,” Advertising Age,April 11, 1994, pp. 1, 48.14. Lisa Napoli, “A Focus on Women at iVillage.com,” New York Times, August 3, 1998, p. D6;Linda Himelstein, “I Am Cyber-Woman. Hear Me Roar,” Business Week, November 15, 1999,p. 40.15. For more on generations, see Michael R. Solomon, Consumer Behavior, 3d ed. (UpperSaddle River, NJ: Prentice-Hall, 1996), ch. 14; and Frank Feather, The Future Consumer(Toronto: Warwick Publishing Co., 1994), pp. 69–75.16. Geoffrey Meredith and Charles Schewe, “The Power of Cohorts,” American Demo<strong>gr</strong>aphics,December 1994, pp. 22–29.17. Andrew E. Serwer, “42,496 Secrets Bared,” Fortune, January 24, 1994, pp. 13–14; KennethLabich, “Class in America,” Fortune, February 7, 1994, pp. 114–26.18. “Lifestyle <strong>Marketing</strong>,” Pro<strong>gr</strong>essive Grocer, August 1997, pp. 107–10.19. Peter Burrows, “Can Apple Take Its Game to the Next Level?” Business Week, December 20,1999, p. 52.20. Tom Miller, “Global Segments from ‘Strivers’ to ‘Creatives,’ ” <strong>Marketing</strong> News, July 20, 1998,p. 11.21. Junu Bryan Kim, “Taking Comfort in Country: After Decade of ’80s Excess, Marketers TapEasy Lifestyle as Part of Ad Messages,” Advertising Age, January 11, 1993, pp. S1–S4.22. Jeff Gremillion, “Can Smaller Niches Bring Riches?” Mediaweek, October 20, 1997,pp. 50–51.23. This classification was adapted from George H. Brown, “Brand Loyalty—Fact or Fiction?”Advertising Age, June 1952–January 1953, a series. See also Peter E. Rossi, R. McCulloch,and G. Allenby, “The Value of Purchase History Data in Target <strong>Marketing</strong>,” <strong>Marketing</strong>Science 15, no. 4 (1996): 321–40.24. Other leading suppliers of geodemo<strong>gr</strong>aphic data are ClusterPlus (by Donnelly <strong>Marketing</strong>Information Services) and C.A.C.I. International, which offers ACORN.
- Page 1 and 2:
MarketingManagement,Millenium Editi
- Page 3 and 4:
SECTION ONE
- Page 5 and 6:
2 CHAPTER 1 MARKETING IN THE TWENTY
- Page 7 and 8:
4 CHAPTER 1 MARKETING IN THE TWENTY
- Page 9 and 10:
6 CHAPTER 1 MARKETING IN THE TWENTY
- Page 11 and 12:
8 CHAPTER 1 MARKETING IN THE TWENTY
- Page 13 and 14:
10 CHAPTER 1 MARKETING IN THE TWENT
- Page 15 and 16:
12 CHAPTER 1 MARKETING IN THE TWENT
- Page 17 and 18:
14 CHAPTER 1 MARKETING IN THE TWENT
- Page 19 and 20:
ConclusionThis vignette focused on
- Page 21 and 22:
18 CHAPTER 1 MARKETING IN THE TWENT
- Page 23 and 24:
40 CHAPTER 3 WINNING MARKETS THROUG
- Page 25 and 26:
42 CHAPTER 3 WINNING MARKETS THROUG
- Page 27 and 28:
44 CHAPTER 3 WINNING MARKETS THROUG
- Page 29 and 30:
46 CHAPTER 3 WINNING MARKETS THROUG
- Page 31 and 32:
48 CHAPTER 3 WINNING MARKETS THROUG
- Page 33 and 34:
50 CHAPTER 3 WINNING MARKETS THROUG
- Page 35 and 36:
52 CHAPTER 3 WINNING MARKETS THROUG
- Page 37 and 38:
54 CHAPTER 3 WINNING MARKETS THROUG
- Page 39 and 40:
56 CHAPTER 3 WINNING MARKETS THROUG
- Page 41 and 42:
58 CHAPTER 3 WINNING MARKETS THROUG
- Page 43 and 44:
60 CHAPTER 3 WINNING MARKETS THROUG
- Page 45:
62 CHAPTER 3 WINNING MARKETS THROUG
- Page 48 and 49:
formation is developed through inte
- Page 50:
pound employees treat citizens pick
- Page 53 and 54:
M A R K E T I N GmemoSecondary Sour
- Page 56:
■■■Survey research: Surveys a
- Page 63:
marketing researcher’s report may
- Page 67 and 68:
120AnalyzingMarketingOpportunitiesA
- Page 69 and 70:
■A sales budget is a conservative
- Page 74 and 75:
picking 400 of the most innovative
- Page 77 and 78:
and low company market budget are 0
- Page 79 and 80:
132AnalyzingMarketingOpportunities8
- Page 81:
SECTION TWO
- Page 84:
One major trend is the increasing p
- Page 88 and 89:
The explosive world population grow
- Page 90 and 91:
Yet marketers must be careful not t
- Page 92 and 93:
egional differences: People in Seat
- Page 94 and 95:
■ The Walt Disney Company The Wal
- Page 97 and 98:
Accelerating Pace of Technological
- Page 99 and 100:
and more business takes place in cy
- Page 101 and 102:
children and are reinforced by majo
- Page 103 and 104:
N O T E S1561. Gene Del Vecchio,
- Page 106 and 107:
Once a company has carefully segmen
- Page 109 and 110:
■was able to develop a new electr
- Page 113 and 114:
LayfutureplansYes Yes Yes Yes Yes Y
- Page 115:
that can be reviewed by a new-produ
- Page 119 and 120:
Package DesignBrand NameRetail Pric
- Page 122:
affecting profitability under an as
- Page 125 and 126:
■■■The rank-order method asks
- Page 127 and 128:
strategies, the greater the regiona
- Page 129 and 130:
In the movie business, it’s not u
- Page 131 and 132:
various prospect groups on these ch
- Page 133 and 134:
■■■Early adopters share some
- Page 135 and 136:
The first is relative advantage—t
- Page 138 and 139:
N O T E S1. New Products Management
- Page 140 and 141:
37. See Cooper and Kleinschmidt, Ne
- Page 142 and 143: AnalyzingConsumer Marketsand BuyerB
- Page 144 and 145: How and Why Consumers Buy 89➤Soci
- Page 146 and 147: How and Why Consumers Buy 91Another
- Page 148 and 149: How and Why Consumers Buy 93Althoug
- Page 150 and 151: How and Why Consumers Buy 95➤pers
- Page 152 and 153: The Consumer Buying Decision Proces
- Page 154 and 155: The Consumer Buying Decision Proces
- Page 156 and 157: The Consumer Buying Decision Proces
- Page 158 and 159: Notes 103influences are operating.
- Page 160 and 161: Notes 105Cohen, “An Examination o
- Page 162 and 163: 108 CHAPTER 6 ANALYZING BUSINESS MA
- Page 164 and 165: Table 3.3Characteristics of Busines
- Page 166 and 167: 112 CHAPTER 6 ANALYZING BUSINESS MA
- Page 168 and 169: 114 CHAPTER 6 ANALYZING BUSINESS MA
- Page 170 and 171: 116 CHAPTER 6 ANALYZING BUSINESS MA
- Page 172 and 173: 118 CHAPTER 6 ANALYZING BUSINESS MA
- Page 174 and 175: 120 CHAPTER 6 ANALYZING BUSINESS MA
- Page 176 and 177: 122 CHAPTER 6 ANALYZING BUSINESS MA
- Page 178 and 179: 144 CHAPTER 8 IDENTIFYING MARKET SE
- Page 180 and 181: 146 CHAPTER 8 IDENTIFYING MARKET SE
- Page 182 and 183: 148 CHAPTER 8 IDENTIFYING MARKET SE
- Page 184 and 185: 150 CHAPTER 8 IDENTIFYING MARKET SE
- Page 186 and 187: 152 CHAPTER 8 IDENTIFYING MARKET SE
- Page 188 and 189: 154 CHAPTER 8 IDENTIFYING MARKET SE
- Page 190 and 191: 156 CHAPTER 8 IDENTIFYING MARKET SE
- Page 194 and 195: 160 CHAPTER 8 IDENTIFYING MARKET SE
- Page 196 and 197: 162 CHAPTER 9 POSITIONING PRODUCTS
- Page 198 and 199: 164 CHAPTER 9 POSITIONING PRODUCTS
- Page 200 and 201: 166 CHAPTER 9 POSITIONING PRODUCTS
- Page 202 and 203: 168 CHAPTER 9 POSITIONING PRODUCTS
- Page 204 and 205: 170 CHAPTER 9 POSITIONING PRODUCTS
- Page 206 and 207: 172 CHAPTER 9 POSITIONING PRODUCTS
- Page 208 and 209: 174 CHAPTER 9 POSITIONING PRODUCTS
- Page 210 and 211: 176 CHAPTER 9 POSITIONING PRODUCTS
- Page 212 and 213: 178 CHAPTER 9 POSITIONING PRODUCTS
- Page 214 and 215: 180 CHAPTER 9 POSITIONING PRODUCTS
- Page 216 and 217: 182 CHAPTER 9 POSITIONING PRODUCTS
- Page 218 and 219: Managing ProductLines and BrandsWe
- Page 220 and 221: The Product and the Product Mix 185
- Page 222 and 223: Brand Decisions 187After performing
- Page 224 and 225: Brand Decisions 189Brand EquityBran
- Page 226 and 227: Brand Decisions 191Why do middlemen
- Page 228 and 229: Brand Decisions 193and shredded whe
- Page 230 and 231: Packaging and Labeling 195ing itsel
- Page 232 and 233: Notes 197stretching or line filling
- Page 234 and 235: Designing andManaging ServicesWe wi
- Page 236 and 237: The Nature of Services 201see the e
- Page 238 and 239: Marketing Strategies for Service Fi
- Page 240 and 241: Marketing Strategies for Service Fi
- Page 242 and 243:
Marketing Strategies for Service Fi
- Page 244 and 245:
Marketing Strategies for Service Fi
- Page 246 and 247:
Managing Product Support Services 2
- Page 248 and 249:
Notes 213(such as facilitating serv
- Page 250 and 251:
Designing PricingStrategies andProg
- Page 252 and 253:
Setting the Price 217➤➤ignoring
- Page 254 and 255:
Setting the Price 219Price elastici
- Page 256 and 257:
Setting the Price 221Next, the firm
- Page 258 and 259:
Setting the Price 223Figure 4-12Bre
- Page 260 and 261:
Setting the Price 225to achieve max
- Page 262 and 263:
Adapting the Price 227Table 4.4Pric
- Page 264 and 265:
➤Adapting the Price 229Location p
- Page 266 and 267:
Initiating and Responding to Price
- Page 268 and 269:
Notes 233➤ Launching a low-price
- Page 270 and 271:
SECTION FIVE
- Page 272 and 273:
236 CHAPTER 13 SELECTING AND MANAGI
- Page 274 and 275:
238 CHAPTER 13 SELECTING AND MANAGI
- Page 276 and 277:
240 CHAPTER 13 SELECTING AND MANAGI
- Page 278 and 279:
242 CHAPTER 13 SELECTING AND MANAGI
- Page 280 and 281:
244 CHAPTER 13 SELECTING AND MANAGI
- Page 282 and 283:
246 CHAPTER 13 SELECTING AND MANAGI
- Page 284 and 285:
248 CHAPTER 13 SELECTING AND MANAGI
- Page 286 and 287:
250 CHAPTER 13 SELECTING AND MANAGI
- Page 288 and 289:
Designing andManagingIntegratedMark
- Page 290 and 291:
Developing Effective Marketing Comm
- Page 292 and 293:
Developing Effective Marketing Comm
- Page 294 and 295:
Developing Effective Marketing Comm
- Page 296 and 297:
Developing Effective Marketing Comm
- Page 298 and 299:
Developing and Managing the Adverti
- Page 300 and 301:
Developing and Managing the Adverti
- Page 302 and 303:
Developing and Managing the Adverti
- Page 304 and 305:
Developing and Managing the Adverti
- Page 306 and 307:
Sales Promotion Strategies 289promo
- Page 308 and 309:
Sales Promotion Strategies 291Table
- Page 310 and 311:
Public Relations Strategies 293tion
- Page 312 and 313:
Notes 295that evaluates the strateg
- Page 314:
Notes 2971998, p. D3; “Ethical Fu
- Page 317 and 318:
MESSAGEMISSION• Sales goals• Ad
- Page 319 and 320:
■ Alka-Seltzer Alka-Seltzer antac
- Page 322 and 323:
ThemeCreative Copy7-Up is not a col
- Page 324 and 325:
meet its ethical standards while en
- Page 327 and 328:
Another reason for review is the co
- Page 330 and 331:
592The timing pattern should consid
- Page 332:
■ Pizza Hut Pizza Hut levies a 4
- Page 336 and 337:
accepted by top management as an ef
- Page 338:
M A R K E T I N Gmemo600Sales Promo
- Page 343 and 344:
ventories in preparation for releas
- Page 345:
Clearly, creative public relations
- Page 349 and 350:
media by establishing the ad’s de
- Page 351 and 352:
N O T E Spart fiveManaging andDeliv
- Page 353 and 354:
part fiveManaging andDelivering Mar
- Page 355 and 356:
Managing theSales ForceWe will addr
- Page 357 and 358:
Designing the Sales Force 301reps l
- Page 359 and 360:
Managing the Sales Force 303money.
- Page 361 and 362:
Managing the Sales Force 305Supervi
- Page 363 and 364:
Managing the Sales Force 307away fr
- Page 365 and 366:
Principles of Personal Selling 309c
- Page 367 and 368:
Principles of Personal Selling 311
- Page 369 and 370:
Notes 313Choosing the sales force s
- Page 371 and 372:
Notes 31527. For an excellent summa
- Page 374:
The world is rapidly shrinking with
- Page 380 and 381:
372part threeDevelopingMarketingStr
- Page 382:
Although many countries in central
- Page 385 and 386:
ever, it offers a chance to start f
- Page 387:
this time, the company is operating
- Page 391 and 392:
PROMOTIONCompanies can run the same
- Page 393 and 394:
Very often a company finds some ent
- Page 395 and 396:
may be international subsidiaries,
- Page 397 and 398:
What are some questions concerning
- Page 399 and 400:
32. Elliott Masie, “Global Pricin
- Page 401 and 402:
318 CHAPTER 17 MANAGING DIRECT AND
- Page 403 and 404:
320 CHAPTER 17 MANAGING DIRECT AND
- Page 405 and 406:
322 CHAPTER 17 MANAGING DIRECT AND
- Page 407 and 408:
324 CHAPTER 17 MANAGING DIRECT AND
- Page 409 and 410:
326 CHAPTER 17 MANAGING DIRECT AND
- Page 411 and 412:
328 CHAPTER 17 MANAGING DIRECT AND
- Page 413 and 414:
330 CHAPTER 17 MANAGING DIRECT AND
- Page 415:
332 CHAPTER 17 MANAGING DIRECT AND
- Page 419 and 420:
F I G U R E 6-5Stages in the Evolut
- Page 421 and 422:
Other companies that have shifted t
- Page 423 and 424:
PMAPMPA(a) Vertical product teamRPM
- Page 425 and 426:
markets. They must analyze where th
- Page 427 and 428:
690part fiveManaging andDelivering
- Page 429 and 430:
692part fiveManaging andDelivering
- Page 431 and 432:
694part fiveManaging andDelivering
- Page 433 and 434:
then. Two groups of experienced mar
- Page 436 and 437:
Now suppose the company’s dollar
- Page 441 and 442:
704part fiveManaging andDelivering
- Page 443 and 444:
SalesfallManagementincreases salesi
- Page 445 and 446:
MARKETINGmemoMarketing Effectivenes
- Page 451 and 452:
2. Modern marketing departments can
- Page 453 and 454:
N O T E S716part fiveManaging andDe
- Page 455 and 456:
718part fiveManaging andDelivering