Discussion Questions

1. What is a target market? Why is it important for a firm to choose its target market carefully?

1. Explain the importance of market segmentation. Describe several ways in which markets can be segmented.

1. Why is market segmentation the first step in selecting a target market?

1. What is a niche market? Provide examples of niche markets in the food and beverage industries.

1. Describe how a firm decides to position itself relative to its competitors.

1. Why is it important for firms to sell the "benefits" of their products rather than the "features?"

1. What is a brand? Provide an example of a brand you buy frequently, and describe the mental image that appears in your mind when you hear or see the brand's name.

1. What is the purpose of brand management?

1. Why is it important for a company to have meaning in its customers' lives? What does this concept have to do with successfully establishing a brand?

1. Differentiate the following:
2. Company's brand and company positioning strategy
3. Core product and actual product
4. Cost-based pricing and value-based pricing
5. Advertising and public relations
6. Selling direct and selling through an intermediary

Scenario-Based Assessment

The Inn at Prescott Ranch is a small boutique hotel in Prescott, Arizona. It opened in 1998. The Inn has 65 rooms on two floors, each with a private balcony. The nightly room rates are the highest in Prescott. The Inn offers a full array of amenities both in the public areas and in the rooms. The Inn offers complimentary van service to the Gateway Mall, Bucky's Casino and Whiskey Row, as well as complimentary valet parking services with covered parking. There is nightly entertainment in the lobby. In-room amenities include high-thread-count linens, terry robes, organic soaps and toiletries, flat-screen TVs with DVD players and Bose stereo systems. The Inn maintains a full bar and agrees with Wildflower Bakery to provide daily continental breakfast as an additional charge to nightly rates or included in the Bed & Breakfast Special. Boxed lunches may also be pre-ordered from Wildflower Bakery.

The Inn is not "flagged" or branded. However, the management is highly involved in local organizations. For example, there is an existing contract with Yavapai College to sponsor its performing arts series and Paramount Studies for a project filmed in the Prescott area. In addition, The Inn at Prescott Ranch has been featured on Arizona Highway TV, Arizona Radio, Arizona Highways magazine, local newspaper and in the Arizona Republic travel section. The Inn also participates in the Prescott area's local chamber of commerce and tourism promotional efforts.

Source: Adapted from Levens, M. (2011) Marketing: Defined, Explained, Applied,2^nd ed.Pearson International Edition: Prentice-Hall.

Questions

1. Explain the product offerings provided by The Inn at Prescott Ranch.

1. Discuss the potential target markets on which the Inn at Prescott Ranch may focus. Then, justify your answers with appropriate reasons.

1. Evaluate the appropriateness of the advertisement media used by The Inn.