Chapter 7: a) Discussion Questions, questions 1,2, 4, 5, and 6. Pg 21
1. How does market segmentation differ from market targeting?
Market segmentation differs from market targeting in a few ways. Market segmentation
is the divvying up of the market into smaller segments of buyers. This allows them to be
divided up the buyer’s characteristics, behaviors or distinct needs. On the other hand, target
marketing selects one or more segments of the market by evaluating their attractiveness and
selects which market segment to enter based on what looks better.
2. Name and describe the four major sets of variables that might be used in
segmenting consumer markets. Which segmenting variables does Starbucks use?
The four major sets of variables that might be used in segmenting consumer markets are
the following:




Geographic - A geographic variable consists of matters of location, population
density, and/or climate.
Demographic - A demographic variable is something like their age, gender,
occupation, religion, or income.
Psychographic - A psychographic variable is something like personalities,
lifestyles, or social class.
Behavioral - A behavioral variable would be something for a special occasion,
benefits, loyalty status, or usage rate.
Personally, I think Starbucks uses all four segmenting variables. They offer the “Gold
Card” which promotes and rewards a massive amount of loyalty, benefits, usage, and
special occasions across the nation. They do not discriminate to any demographic, and
offer products for a wide range of ages and income – they even give free beverages on
birthdays. Starbucks also goes out of its way to offer specialty seasonal drinks to appeal
to different geographic and behavioral variables throughout the year. Ultimately,
Starbucks even appeals to different psychographics. They allow you to switch up your
drink to something crazy unique for all different personalities, lifestyles and social
classes. All of this leads me to believe that they are using multiple segmentation bases.
4. Explain how companies segment international markets?
In order to segment international markets, companies first need to have access to an
incredible amount of resources. Most companies do not have the proper resources or the
desire to spread across the world and therefore choose not to pursue an international
market. For the companies that do, however, they generally focus on geographic,
economic, cultural, or political and legal factors. This allows the companies segment the
market according to a variety of variables. They can choose to group up different
countries, or even divide by population income levels, languages, religions, customs, and
even the stability of the government. All of these factors help companies to decide
whether or not their company has a chance at surviving in another country, but more
importantly the likelihood of thriving.
5. Explain how a company differentiates its products from competitors’ products.
A company can differentiate its products from competitors’ products in many ways. They
can differentiate on style and design, performance and various features. Another way they
can do this is by teaming up with another organization, so to speak. They could do this by
teaming up with a company that could help make their company “greener” or an
organization that might give their company a healthy stamp of approval.
6. In the context of marketing, what is a product’s “position”? How do marketers
know what it is?
A product’s “position” is based on the place the product occupies in consumers’ minds
compared to competing products. Most importantly, the position is defined by consumers
according to important attributes. In order for marketers to know what their products
position is they create “perceptual positioning maps” that show consumer perceptions of
their brands compared to competing products/brands. This allows them to see their
perceived position on two dimensions: price and orientation.
Critical Thinking – Question 2
Honestly there could be a vast amount of reasons that these two Japanese brands
missed their sales goals by a wide margin. A great indicator would be to look at what the
sales market looked like at the time, and what kind of thoughts on vehicles were going
through American’s minds. Were they thinking about all American cars? Were they
looking to buy something unique and new, something foreign? Was the economy in a
recession; did the Japanese advertise in a way that made their vehicles look appealing in
despite of all other factors? It is also important to know what else was coming out at that
same time. Was there another car that came out around the same time that was ecofriendly? A lot of Americans have started looking towards more and more efficient
vehicles. With the extreme rise and fluctuation in gas prices over the years, MPG has
become a huge dictator in the automobile market. It’s hard to say what single factor
caused these dismal sales for the Titan and the Tundra, but I would imagine it was a
combination of quite a few.
Marketing Technology – Page 219
1) Research "augmented reality" on the Internet. Discuss the most appropriate
variables for segmenting the consumer market for products based on this
technology. Explain why those variables are appropriate.
As “augmented reality” seems to be a live copy view of a real world environment,
I would segment it in many variables (“Wikipedia”, 2014). One variable would be to go
for a psychographic segmentation advertising it in a more controlling light, “Have you
ever wanted to do something that you normally wouldn’t do? Have you ever dreamed
about controlling a situation or environment in ways that most have never thought to be
possible?” Or maybe a geographic segmentation under the idea of, “Have you ever
wished you lived somewhere else? Have you ever wanted to experience a different
environment and setting than the one you live in every day?” I think there are many
appropriate variables for segmentation for this product, as it is something that would
appeal to most – at least for a little while.
2) How would you market the Google Glass device in a 30-second commercial to
consumers based on one of the segmenting variables you identified in the previous
question? (This means you not only describe who you would market to, but
describe what the commercial would be like, and what message you would present
in it.)
If I were to be the one in charge of marketing the Google Glass device, I would
choose at psychographic variable for segmenting the consumer market – and I would
advertise it to certain personalities, namely youthful, futuristic personalities. I think this
would be a good marketing variable since (in a very general sense) almost anyone can
say that have any specific personality trait. This means that even if it was advertised in a
way that they may not have previously described themselves as, it might aspire them to
change their mind. What consumer wouldn’t want to experience not only Google Glass,
but also personal growth?
In my 30-second commercial I would have people of all ages and lifestyles
wearing the Google Glass. Not only would you see a wide variety of genders, ages, races
and perceived lifestyles, but you would see happiness stretched across all of their faces.
In the 30 seconds I would have the people, the consumers, wearing the product and
demonstrating how it could be used in their everyday life, during everyday situations. In a
light layer in front of that demonstration I would have it showing how it would look for
the consumers watching it at home if they had the Google Glass on them right now. In the
background you would hear a strong but polite/happy voice describing the product.
In the commercial I would present the message of convenience, of the future. I
would aim to have the audience/consumers walking away thinking about how they’ve
always wanted something like this – how they couldn’t believe it had not come out
sooner. The main message would be that it is available to everyone, and that it is what
everyone deserves.
Works Cited
"Augmented reality." Wikipedia. Wikimedia Foundation, 3 Jan. 2014. Web. 2 Mar. 2014.
<http://en.wikipedia.org/wiki/Augmented_reality>.
Bosner, Kevin. "How Augmented Reality Works." HowStuffWorks. N.p., n.d. Web. 2 Mar. 2014.
<http://www.howstuffworks.com/augmented-reality.htm>.