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* Chapter 8 – Segmentation, Targeting, and Positioning These are the learning objectives for this chapter. * * Previous chapters addressed how to plan marketing strategy; this chapter focuses on how firms use that strategy to identify the target markets they will serve. * Remind students that any strategy must be consistent with the firm’s mission statement and be based on the current assessments from SWOT analyses * Group activity: Divide the class into groups. Have them choose either a manufacturer or national retailer. Have them describe their segmentation method and then evaluate whether or not it is the best segmentation method for that firm. * Marketers first must determine whether the segment is worth pursuing, using several descriptive criteria: Is the segment identifiable, substantial, reachable, responsive, and profitable. * Ask students: When would these women all be in the same segment? When would they be in different segments? These women would appear in the same segment if the segmentation variable were gender but in individual segments based on race or lifestyle. They also may be in different geographic or income segments, for example. * Just because a firm can find a market does not necessarily mean it represents a good market. But size in terms of number of people is not the only consideration; despite its small size, the market for the original Hummer was incredibly profitable, and therefore was substantial * The Internet has enabled more people to be reached more easily, but various areas around the world simply cannot be served because they aren’t accessible to marketing messages or because there isn’t adequate distribution. Ask students: What types of media influence the way they shop? The answer may lead to an interesting discussion about how difficult it is to reach Generation Y customers either because they don’t participate in traditional media such as newspapers or because they are skeptical about being influenced by commerc
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