January/February Examination) : (Slide 6-6)

Tutorial 4: Segmenting and positioning
SECTION A: Discussion Questions
1) How does market segmentation differ from market targeting? (slide 6-6)
Market segmentation is different from market targeting as market segmentation involves
dividing a market into smaller segment of buyers with distinct needs and characteristics
whereas market targeting refers to the process of evaluating each market segments’
attractiveness and selecting one or more segments to enter.
2) Name and describe the levels at which market targeting can be carried out. *(2020
January/February Examination) (slide 6-29)
3) Why is selecting the appropriate target markets important to an organization which wants
to adopt the marketing concept philosophy?
SECTION B: Sample Exam Questions *(2014 August/September Examination)
Question 1
THAI Smile is a brand-
new subsidiary airline of (a) Based on the above, identify the positioning practice by
THAI Airways which is THAI Smile. Explain how does positioning help in deciding
operated under the on marketing strategy?
management of Thai
Smile Airways Company Positioning of THAI Smile is ‘Light Premium’. Positioning
Limited. A brand helps in deciding on marketing strategy by…
positioning of Thai Smile 1) Creating and maintaining a certain concept of a
is light premium. THAI product in customer minds.
Smile offer variety of
2) The product position’s is the result of customers’
products and services to
perception of the product’s attributes relative to those
meet the need to
of competing brands
passengers who want to
travel in a short distance 3) It is a process of developing strategies for marketing
flight session while purposes. Marketers seek to position a product so that
ensuring greatest comfort it appears to have the characteristic the target market
and convenience for a most desires.
superior air travel
experience.
(b) Propose segmentation strategies that could be practiced by THAI Smile. Support each
segmentation strategies with relevant example. (12 marks)
 Geographic segmentation. It calls for dividing the markets into different geographical
units such as nations, regions, states, countries, cities, neighbourhoods, and climate. In
THAI Smile, this can be practised by focusing on the destinations of travelling of
their passengers locally (provide short distance flights to major cities in Thailand).
Should the destinations of travelling be more on locally between provinces in
Thailand, more flights sessions can be offered to cater to the increasing number of
passengers.
 Demographic segmentation. It divides the market into segments based on variables

including age, life cycle, gender, income, occupation, education, religion, ethnicity,
and generation. In THAI Smile, this segmentation can be applied by segmenting on
the passengers’ income level including those who have middle- or high-income level.
As an example, first class service can be offered to those who have high income
whereas economy flight can be offered to those who have lower income.
 Psychographic Segmentation. Psychographic segmentation divides the buyers into

different segments based on social class, lifestyle, or personal characteristics. In THAI
Smile, this segmentation can be applied by focusing on the common passengers such
as the businessman who are travelling for work purposes and is looking for premium
services yet having to pay a lower price compared to other business airlines.
First class - high social class

Business class – middle social class
Economy class – low social class
 Behavioural Segmentation. Behavioural segmentation factors are slightly more

difficult to identify than demographics because they are subjective. They are not data-
focused and require research to uncover and understand. Hence, THAI Smile may
focus on the customers’ loyalty status regarding their services offered. As such, THAI
Smile can create a frequent flyer programme for their passengers in return for
consumers’ loyalty and heavy usage. As such, they will be eligible to collect points
and redeem them for discounts on flight tickets.
SECTION C: Group Discussion
Form students into groups of three to five. Each group was given a list - Segmentation
Variables in Different Industries. This exercise is designed to get students to think in terms of
segmentation variables discussed in the chapter (pg213 Table7.1) and link it with the list
given.
Snow tires market focus on geographic, demographic and behavioral segmentation.

Geographic Segmentation is dividing the market into different geographical units such as
nations, regions, states, counties, cities, neighbourhoods or even climate.
Snow tires segment its audience according to their geolocation and weather as snow tires are
tires designed for use on snow and ice. Hence only people in wintry weather needed snow
tires.
eg. people in Germany, France, US and Canada.
Demographic Segmentation
Demographic segmentation divides the market into segments based on variables such as age,
life-cycle, gender, income, occupation, education, religion, ethnicity and generation.
Snow tires segment its customer according to occupation and income.
Occupation: normal family with passenger vehicles while drivers with commercial vehicles
Income: target high-income earners with high-priced snow tires and target low-income
earners at affordable prices
Behavioral Segmentation
Behavioral segmentation divides buyers into segments based on their knowledge, attitudes,
uses or responses to a product.
Snow tires divide the market into segments according to occasions.
eg. people only get the idea to buy and actually make their purchase of snow tires in winter.

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Tutorial 4: Segmenting and positioning

SECTION A: Discussion Questions

SECTION B: Sample Exam Questions *(2014 August/September Examination)

 Demographic segmentation. It divides the market into segments based on variables

 Psychographic Segmentation. Psychographic segmentation divides the buyers into

First class - high social class

 Behavioural Segmentation. Behavioural segmentation factors are slightly more

SECTION C: Group Discussion

Snow tires market focus on geographic, demographic and behavioral segmentation.

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