How to Segment a Market

Teaching Notes for this Marketing Activity

Preferred format: This teaching activity would work best in small groups and reporting back to the overall class.
Student audience: Could be run with any level of marketing student, perhaps more suitable for advanced students.
Exercise time: Given the students need to profile two different segments, group discussion time would need to be around … See the full activity...

Product Line Extension Challenge

In 2005, Coca-Cola introduced Coke Zero, a zero calorie version of their flagship product. This product did extraordinary well, but what launch and implementation challenges did they face?

 

ACTIVITY/TASK

Coca-Cola first ventured into the diet soft drink market in the 1960’s with their Tab brand. In 1982 they broadened the Coke brand for the first time and launched Diet … See the full activity...

Creating a Perceptual Map

Your task here is to construct a perceptual map, based on your understanding of 10 different university subjects. While it is not strictly a business exercise, this activity is an excellent way of understanding the concept of constructing a perceptual map.

It will help if you select two distinguishing (determinant) attributes for the map’s axes. Remember there is no right See the full activity...

Positioning Kid’s Home-delivered Food

For this activity, you need to select the most appropriate positioning for a firm that currently home delivers pre-prepared food, on a weekly basis, to people who are trying to lose weight. They have now decided to pursue an opportunity in providing a somewhat similar product, but this time, targeted at children.

You have been presented with a number of See the full activity...

New Target Market = New Marketing Mix?

Over time most firms will have goals to grow and expand. One growth option is to target a new market segment (known as market development). For this activity, you need to determine whether the law firm in the case will need to modify its marketing mix as they pursue another target market.

 

ACTIVITY/TASK

A growing law firm originally segmented their … See the full activity...

Is this Target Market Viable?

Outlined below is a new idea for a service. The proposed target market for this luxury service is affluent, upper social class consumers. Your task here is to evaluate whether this target market and the proposed offering is financially and technically viable.


ACTIVITY/TASK

Introducing the new ‘King and Queen for a day’ service…

  •  We send 5 people to your house
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Meeting Target Market Needs

Below is a possible market segmentation for the holiday market. Remembering that a key goal of segmentation is to classify consumers into groups of similar needs – your task in this activity is to outline what kind of holiday (that is, accommodation, activities, and destinations) would best suit each of these market segments.

 

ACTIVITY/TASK

Segment Name Brief Profile
‘Relaxers’
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Choosing a Target Market

In this exercise, you are presented with a number of market segments for the MP3 market. For each segment you are given top-level information regarding their core need, size growth, and profit margin. Your task here is to identify which one is the most attractive market segments to select as a target market.

 

ACTIVITY/TASK

SEGMENT NAME

NEED

SIZE

GROWTH

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Which Target Market? It’s Your Call

In this activity you are presented with an excerpt from a manager’s meeting discussing segments in the MP3 market.

Your task is to firstly determine what market segments you can identify (both from the information below and your own knowledge)? And then, based on this information, which target market would you select for the firm?


ACTIVITY/TASK

Natalia:

As we all … See the full activity...

Choosing a Target Market

Listed below is a table that provides top-level information for eight different market segments. Based upon the information provided, which target market would you select as the best one to pursue? Why?

 

ACTIVITY/TASK

 

Segment

Size $m

Growth %pa

Competitiveness

Access to Retailers

A

100

5

Medium

Easy

B

100

20

Aggressive

Hard

C

75

5

Medium

Medium

D

75

20

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Segment Nicknames

Your task in this activity is to see how much we can determine about the typical target market consumer by the ‘segment nickname’ it has been given.

As you know, a segment nickname is the descriptive name that many firms will use when labeling their target markets. Let’s see how effective that approach is for helping to quickly understand the See the full activity...

Which Segmentation Base?

In this review exercise, you need to demonstrate your understanding of the different consumer segmentation bases. Listed below is a number of firms and how they approach segmentation. You need to identify what type of segmentation base that the firm is using (see list of segmentation bases at the bottom).

Note: Sometimes more than one segmentation base in combination See the full activity...

Why Use Target Markets

In this exercise, you need to review the proposed new radio station format, which is designed to appeal to a mass market. You need to consider whether a broad marketing approach is suitable or whether the radio station would benefit from a more precise target market?

 
ACTIVITY/TASK

As we know, most radio stations tend to specialize in a particular format … See the full activity...

Situational Influences

Different situations will affect a consumer’s purchase decisions. This activity is designed to explore that concept. Your task here is to identify how many different drinks/beverages you (being one consumer only) would choose across the various situations listed below?

 

ACTIVITY/TASK

What type of drink/beverage would you choose?

  1. On a hot summer’s day
  2. For breakfast
  3. During a 15-minute lunch break
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