1. Explain the difference between segmenting and targeting in the STP approach to marketing.

2. Imus Brothers Coffee, distributed by Fred and his radio disc jockey brother Don Imus' mail order company, makes ground coffee and has targeted heavy users in the past. However, it is considering switching to college students. It is considering switching target segments even though this group is comprised largely of people who have just started to drink coffee and don't consume anywhere near as much as the heavy users. What are the disadvantages of the heavy-user strategy? What is the term used to describe the college students the company is considering targeting? What are the advantages of targeting this college student segment?

3. Describe the principle known as niche marketing. What are the competitive advantages of marketing to a niche?

4. For Kraft, the South Beach deal seems an admission that the diet - - linked with celebrity dieters such as Bill Clinton, Bette Midler and Nicole Kidman -- may be a bigger consumer draw currently than the Kraft name. The South Beach Diet book, by cardiologist Arthur Agatston, has sold more than 8 million copies. Among Kraft products that will carry the South Beach diet seal of approval is Jello. (Bruce Horvitz, "Kraft gets South Beach diet's seal of approval; New labels part of deal to keep waist watchers buying," USAToday.com, September 27, 2004.)

5. Define and explain the importance of the value proposition in brand promotion.