BUSI 330 Week 3 Discussion Board Forum 2 Thread and Replies Example

Discussion Board Forum 2: Market Segmentation, Targeting and Positioning

BUSI 330 Principles of Marketing, Discussion Board Forum 2 Thread and Replies

Thread by [Student Name]

The prompt, the outdoor retailer example and the classmates are composites; the textbook and research cited are real.

Thread

Position

Demographic segments are easy to measure but often poor at predicting what people buy. Segments based on needs, values and how customers use a product are harder to build but far more useful for deciding what to offer and how to communicate it.

The process and its purpose

Kerin and Hartley (2020) describe segmentation as aggregating prospective buyers into groups that have common needs and will respond similarly to a marketing action. The definition itself emphasizes needs and response, not age or income. Yankelovich and Meer (2006) argue that many companies drifted away from that purpose, building segments from demographics and psychological traits that are statistically neat but do not change decisions. They urge marketers to segment around the attitudes and behaviors that actually drive purchases of the specific product, and to judge a segmentation by whether it helps the company act differently. A segmentation is only as good as the decision it changes.

Testing it on an outdoor retailer

A composite regional outdoor retailer shows the difference. Segmented by demographics, its customers look like affluent suburban adults aged 30 to 55, which suggests generic upscale advertising. Segmented by needs and usage, the same customers fall into distinct groups: weekend hikers who want comfort and simplicity, serious backpackers who want light, technical gear and expert advice, and families who want durable, affordable equipment for occasional camping. These groups share demographics but buy differently and respond to different messages.

If the retailer targets serious backpackers, its marketing changes: knowledgeable staff, gear-testing events and detailed product specifications online. A positioning statement might read: For experienced backpackers who count every ounce, the retailer offers the region's widest selection of ultralight gear and staff who have used it on the trail. A demographic segmentation would never have produced that strategy.

Implication

Needs-based segments require research, often surveys and purchase data, which ties this topic to the marketing research chapter. The effort is worthwhile because it leads to decisions a competitor cannot easily copy. A rival can match the retailer's prices or advertising, but it cannot easily copy a staff that knows which tent survives a mountain storm or a product range built around what serious backpackers have asked for. Segmentation done well becomes part of the company's competitive advantage, not just a description of its customers.

There is also a practical caution. Needs-based segments are invisible on a mailing list, so the retailer must find ways to identify them, such as purchase histories, membership in hiking clubs or responses to a short preference question at checkout. Without a way to reach a segment, even an insightful segmentation remains an academic exercise.

Reply to Kendra

Kendra, your report proposed surveying the mall's shoppers to understand why visits have fallen, and your draft questions about convenience and parking were well chosen. I would add a suggestion about measuring the experience side of shopping, because people visit malls for enjoyment as well as errands.

Babin et al. (1994) developed and validated a scale that measures two kinds of shopping value: utilitarian value, the sense that a trip accomplished its purpose, and hedonic value, the enjoyment of the trip itself. Using an established, validated scale has two advantages Kerin and Hartley stress in the research chapter: the questions have been tested for reliability, and the results can be compared with other studies. If the mall's shoppers score low on hedonic value, the problem may not be parking at all but a lack of reasons to linger, such as dining, events or attractive common spaces.

This also connects to segmentation. Shoppers who mainly seek utilitarian value may have moved to online ordering for good, while those who seek hedonic value might be won back with a different kind of mall. Knowing which group is larger would shape the mall's strategy.

Would you consider adding a few items from an established scale to your survey, and which group of shoppers do you expect to be larger?

Reply to Andre

Andre, your report on how a fast-food chain adapts its menu in different countries applied the global marketing chapter well, especially your examples of local menu items. I would add the other side of the debate, because it helps explain why some companies adapt less than others.

Levitt (1983) argued that technology and communication were pushing consumers worldwide toward the same standardized products, and that global companies could win by selling the same high-quality, low-cost products everywhere rather than tailoring them to each market. His argument explains why the chain's core products, its logo and its restaurant design look nearly identical across countries even while some menu items change. Kerin and Hartley present this as a choice between a global marketing strategy and a customized approach.

The useful question for a marketer is where to draw the line. Standardizing the brand, operations and core products keeps costs low and the brand consistent, while adapting a few menu items addresses local tastes and religious or cultural norms. Your examples suggest the chain standardizes what customers do not notice and adapts what they taste.

If you were advising the chain on entering a new country, how would you decide which elements to keep and which to change? I would start with the elements customers can see and taste, since those carry the most cultural meaning.

References

Babin, B. J., Darden, W. R., & Griffin, M. (1994). Work and/or fun: Measuring hedonic and utilitarian shopping value. Journal of Consumer Research, 20(4), 644-656. https://doi.org/10.1086/209376

Kerin, R. A., & Hartley, S. W. (2020). Marketing: The core (8th ed.). McGraw-Hill Education.

Levitt, T. (1983). The globalization of markets. Harvard Business Review, 61(3), 92-102.

Yankelovich, D., & Meer, D. (2006). Rediscovering market segmentation. Harvard Business Review, 84(2), 122-131.