Page 172 - Foundations of Marketing

Target Markets: Segmentation and Evaluation | Chapter 5 139

popular music. She dines out often, usually at the most compete against lower-priced Swatch or Timex watches,
fashionable restaurants. She watches television, espe- rate the attractiveness of each market based on these
cially PBS, Discovery Channel, and HGTV. She has three criteria. What will be the unique features that will give
watches, each of which is priced around $ 500 : a stylish your watch a competitive advantage?
daytime watch for the office, a glamorous watch for eve- What if you wanted to develop a higher-priced watch that
ning events, and a sporty watch for weekends and recre- targets those individuals with an active lifestyle? Which
ational pursuits. market segment would you choose, and why?
Brittney is a 12 - to 18 -year-old female. She is all about 2. Cable channels, such as Lifetime and Spike TV, each tar-
fashion. She has about $ 50 to spend per week, either from get a specific market segment. Identify another product
a part-time job or as an allowance from her parents. She marketed to a distinct target market. Describe the target
enjoys spending time with her friends and can often be market, and explain how the marketing mix appeals
seen at malls or cafés, chatting or texting. She is very specifically to that group.
aware of different brands and tries to imitate the latest 3. Generally, marketers use one of three basic targeting
fashions from her favorite celebrities. Her musical taste is strategies to focus on a target market: undifferentiated,
mainstream, and she is addicted to reality programs and concentrated, or differentiated. Locate an article that dis-
MTV. She has six watches, each of which costs less than cusses the target market for a specific product. Describe
$ 100 . Watches to her are an accessory, and she replaces the target market, and explain the targeting strategy used
them frequently when fashion changes. to reach that target market.
Skater Boy is a 12 - to 23 -year-old male. He is a self- 4. The car market may be segmented according to income
described “individual.” He thinks of himself as being and age. Discuss two ways the market for each of the
different, and his style and activities are beyond the main- following products might be segmented.
stream. He often buys clothing at “underground” shops, a. Candy bars
and his favorite clothing items are often not branded at all b. Travel services
or are from anti-establishment brands. He has a part-time c. Bicycles
job or receives an allowance but spends the majority of d. Cell phones
this money on music, games, and other lifestyle pursuits. 5. If you were using a time series analysis to forecast sales
He watches some television, mostly extreme sports, car- for your company for the next year, how would you use
toons, and comedy programs. He has one watch, which the following sets of sales figures?
he wears as a statement of his personality. It is rugged and a. 2003 $ 145,000 2008 $ 149,000

clunky and costs less than $ 200 . 2004 $ 144,000 2009 $ 148,000
Executives are men and women, age 45 and above. They 2005 $ 147,000 2010 $ 180,000
are married with children and consider themselves elite, 2006 $ 145,000 2011 $ 191,000
2007 $ 148,000 2012 $ 227,000
with annual household incomes of more than $ 400,000 .
They belong to exclusive clubs and sit on boards of not- b. 2010 2011 2012
for-profit organizations. They have a high regard for qual- Jan. $ 12,000 $ 14,000 $ 16,000
ity and often buy products that are somewhat exotic. They Feb. $ 13,000 $ 14,000 $ 15,500
watch little television, preferring evenings out at the opera, Mar. $ 12,000 $ 14,000 $ 17,000
ballet, or symphony, for which they have season tickets. Apr. $ 13,000 $ 15,000 $ 17,000
Like Carrie , they have three watches (daytime, evening, May $ 15,000 $ 17,000 $ 20,000
and weekend), but each is worth more than $ 1,000 . June $ 18,000 $ 18,000 $ 21,000
Joe Lunchbox is a 25 - to 65 -year-old man. He is married July $ 18,500 $ 18,000 $ 21,500
with two children and earns about $ 40,000 per year. He is Aug. $ 18,500 $ 19,000 $ 22,000
very family-oriented and spends his spare time camping, Sep. $ 17,000 $ 18,000 $ 21,000
attending sporting events, and working on do-it-yourself Oct. $ 16,000 $ 15,000 $ 19,000
projects. He often buys American and prefers the basic Nov. $ 13,000 $ 14,000 $ 19,000
casual style of jeans, T-shirts, and running shoes. His Dec. $ 14,000 $ 15,000 $ 18,000
music tastes range from country to classic rock. He loves c. In 2010, sales increased 21.2 percent. In 2011, sales
television, especially sports. He has one watch, which was increased 18.8 percent. New stores were opened in
received as a gift. It serves only one function—telling time. 2010 and 2011.
Develop a rating scale of 1 – 5 , with 1 as the most desir- 6. Develop your analytical and communication skills
able market segment and 5 as the least desirable. If you using the Role-Play Exercises online at
decided to market a watch that was under $ 100 and would www.cengagebrain.com.

Copyright 2014 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s).
Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it.