From Market Segmentation to Marketing Mix (Fitness Centers)

Teaching Notes for this Marketing Activity

Preferred format: This teaching activity is probably more suitable to small groups.
Student audience: This discussion exercise is more suitable for students in an introduction to marketing course
Exercise time: This discussion activity will probably run 15 to 20 minutes.
Activity variations: This exercise could also be extended beyond fitness centers to consider sporting … See the full activity...

Direct or Online Marketing?

A travel agency, with more than 100 outlets throughout Australia, views a direct and/or online marketing approach as a great opportunity to hold more clients, win new business and increase overall sales. However, they cannot agree on which particular tools to use – refer to excerpts of their manager’s meeting below – can you help them decide?



I … See the full activity...

International Strategic Alliances

In recent years, a number of Australian universities have expanded into international markets (particularly in South-East Asia), usually utilizing a strategic alliance with an existing local college. But strategic alliances are designed to provide mutual benefits, is this the case here?



Australian universities are faced with a mature education market in Australia. While there are changes in preferences for … See the full activity...

Promotional Strategy

This activity is based on a chain of fitness centers. They want to increase their ongoing level of promotional activity, but are unsure how best to promote themselves in the marketplace. Therefore, this activity requires you to determine the most appropriate promotional strategy (given the information in the following case study).



Fitness Fast currently consists of eleven fitness centers … See the full activity...

Working with Salespeople

Salespeople are part of an overall team. When a salesperson tries to work independently, the results are not always very effective. This activity highlights an ineffective situation for a mobile home loan salesman for a bank. Review the situation – what can you recommend to improve the firm’s current sales appointment practices?



When customers phone the bank’s call … See the full activity...

Designing the Retail Strategy

Even a simple retail business, like a fruit and vegetable store, requires a clear strategy in order to be successful. This is actually becoming a greater challenge, given the expanded product offering of the major supermarket chains (who offer their own fruit and vegetable sections).

 Your task is this activity is to determine your strategy for a suburban fruit and See the full activity...

Selecting Distribution Channels

It was only about 20 years ago that most banks typically only used one distribution channel (their branches). However, since that time they have dramatically expanded the number of channels that they use. Below is a list of common distribution channels for a bank. Your task is to identify the most appropriate mix of channels for two different banks.


ACTIVITY/TASKSee the full activity...

Characteristics of Services

Services have a number of distinct characteristics (see list below) that create a unique set of marketing challenges for services marketers. Your task in this exercise is to review the following statements to identify its particular distinguishing service characteristic.



  1. “I’m so disappointed with the restaurant last night. We went there for the first time a few weeks ago
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Designing Internal Marketing

Assume you were the marketing manager for a bank and you are planning a major new product launch, with a substantial advertising and direct mail budget. As you need to rely upon the bank’s branch and call center staff to complete the sales, you will need to develop an internal marketing program (use the checklist below as a guide).


ACTIVITY/TASKSee the full activity...

Should we empower our staff?

Below is an excerpt from a manager’s meeting at a large department store chain. They are discussing the merits of introducing a system of greater staff empowerment. Unfortunately, there are good arguments both for and against and the team cannot decide what to do – can you help them?



Personally, I think greater empowerment for our sales staff … See the full activity...

Need to improve Internal Marketing?

In this activity, you need to first review the following manager’s discussion regarding the disappointing performance of a marketing campaign.  Given the information provided, identify where do you think the problem occurred? Does this firm need to spend more time and effort on its ‘internal marketing’ program?




Our sales are below target for this campaign – we need … See the full activity...

What CRM Tactics Should We Use?

For this exercise, assume that you are the marketing manager for a large hotel chain. You’ve been asked to put together a CRM program for the hotel’s major customers (which are mainly businesses and corporate executives). From the list of possible CRM tactics listed below, select six to ten tactics to form the basis of your program. How successful See the full activity...

Should we introduce a CRM program?

Assume that you work for a major department store. You have been asked to evaluate their idea for a new CRM program that they are considering introducing (see information below). What advice do you give them? 



Let’s assume that work in marketing at an up-market (higher quality) department store. The store’s management team have a plan for introducing … See the full activity...

Working with Customer Lifetime Value

In this activity, you need to work through a customer lifetime value exercise (CLV). You need to calculate the customer lifetime value for both the accounting firm’s business and individual customers. Given these calculations, what advice would you have for the firm?



An accounting firm currently provides accounting and taxation advice to 1,000 businesses and 2,000 individuals. In … See the full activity...

Calculating Customer Lifetime Value

In this exercise, your task is to calculate the customer lifetime value (CLV) for two retailers (there is one example already being provided to assist you). In the activity, we will also consider the impact of the number of years (that is, the customer’s lifetime) in the calculation.



In the following tables, the formula to calculate customer lifetime … See the full activity...

CRM’s Mutual Benefits

Below is a list of statements regarding the possible benefits of CRM programs (both to the firm and to the customers).  Assuming that you were the owner of a restaurant, you need to identify the three main benefits that the firm would receive from implementing a CRM program. And what would be the three main benefits for your customers? See the full activity...

Managing Post-purchase Behavior

The final phase of the decision process is post-purchase behavior. And if the product’s performance does not match prior expectations consumers will be dissatisfied. This activity highlights how four different consumers usually deal with dissatisfaction.

Review each consumer’s comments. Which of these customer/s would a firm prefer to deal with? What actions could a firm undertake to better deal with See the full activity...

Understanding In-store Influences

A reasonable proportion of purchase decisions are made in-store. Therefore, many retailers design their premises in a deliberate attempt to influence consumer’s in-store behavior. Your task in this activity is to review the examples below in order to identify what the firm is trying to achieve by their particular design of their servicescape.



  • A number of steakhouse  restaurants
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Working with the Marketing Mix

This exercise is designed to illustrate how the marketing mix works together to implement the organization’s marketing strategy, which should meet the needs of a defined target market.

In this activity, we will use a hypothetical example for an up market hotel chain, such as Hilton Hotels. Assume that Hilton Hotels (which are usually ‘5-star’ quality) have decided that they See the full activity...