Chapter 7

Review and Applications
7.2 – Go to the websites of JCPenney, http://www.jcpenney.com and Target, http://www.target.com. Compare the presentation of women’s fashions at the Web sites. What are the major differences? Which site is more designer focused, and which is more brand focused? Which company’s approach do you think will appeal more to the “Holy Grail” target market of 25- to 35- year old women?
I thought JCPenney’s Web site was a little easier to navigate through. Target’s Web site was really busy. Most 25-35 year old women use the internet so Target’s Web site wouldn’t be a problem for them, but for older women who aren’t familiar with the internet, it could be a little tricky for them. The JCPenney Web site was more designer focused. They had “meet our designers” right in the middle of the page for women. The Target Web site was more brand focused because they had the different clothing categories toward the bottom of the page with the brands right on their first page. Being in the age range of 25-35 years old I found the JCPenney Web site easier and more clean looking than the Target Web site.

9.1 – Choose a product category (e.g., pick-up trucks), and identify at least three different brands and their respective positioning strategies. How is each position communicated to the target audience?
I chose women’s running shoes as a product category. The three brands I looked at were Nike, Addidas, and New Balance. I looked these three brands up on their Web sites. Nike’s Web site was very global friendly. They had the Web site in many different languages and set up for different countries. The options were all laid out in a neat fashion, which was easy to navigate through. They had the shopping section broken down by sport. They also had a Nike + running section where there was information about events and training tips. Nike used attributes, price, quality, product user, and emotion as their some of their positioning bases. When shopping you could see all the prices and they have a wide range of pricing, making it easy for anyone to afford their shoes. Nike also had a wide range of products for all age types and with all of their “extras” on their Web site makes the customer feel they can go to the Web site for things like the training tips and event information. The Addidas store also laid out the Web site by sport. They also had the prices on the Web site, which would fall under the price and quality positioning base. Addidas also uses the product user positioning base because they cater to different age ranges. Their Web site, however, was not as flashy as the Nike Web site. The New Balance Website was very flashy. They also used the price and quality positioning base. They had prices listed on the Web site with a range of prices. They also used the product user positioning base because they had products for different ages and gender. You could also look up the products by narrowing your choices by areas like technology and features.

Case Study/Application Exercise
Viva Las Vegas
1. What bases does the LVCVA use for segmenting its target market?
The LVCVA uses geographic segmentation by going to different areas of the US and Canada. They also used income segmentation by doing research on median household incomes. The LVCVA used ethnic segmentation by doing research and then advertising to the different ethnic groups that frequently visited Las Vegas. They also used benefit segmentation by advertising the benefits visitors would receive from visiting Las Vegas.

2. Does the LVCVA use an undifferentiated, a concentrated, or a multisegment targeting strategy? Why? Should the LVCVA be concerned with cannibalization?
I think the LVCVA uses the multisegment targeting strategy because they choose different market segments and develop a different marketing mix for each. They use different marketing mixes for the ethnic groups versus the business people they advertise to. I don’t think the LVCVA should be concerned with cannibalization because I don’t think there will be another city like Las Vegas built in the US any time soon.

3. Think of the many reasons a person might want to travel to Las Vegas. Given a target market of all US citizens aged 18 to 75, speculate how you might segment by lifestyle.
I would segment by dividing the age groups into three sections. I would then use different marketing mixed for each group. For the younger age group I would market more of the party and club atmosphere Las Vegas offers. For the middle aged group I would market the shows, restaurants and more of the casino gambling. For the older group I would market more of the hotel amenities and shows.

4. What do you think makes the LVCVA so successful?
I think the LVCVA is successful because they do so much research on their customers and then design a different marketing mix for each group. They have a wide range of groups they advertise to helping bring in more visitors. The LVCVA thinks outside the box when it comes to marketing.

Websites
Wikipedia

• Helps easily identify perceptions of customers.
• Helps display the consumer's ideal points.
• Helps when a company is considering a new product.
• Information that comes from the consumer.
• Helps with competition.