1. MARK4210, 2014 Spring, L1/L2
[Class #6/7]
Segmentation, Targeting, Position:
Jones-Blair
MARK4210: Strategic Marketing
2013 Spring, Section L3
1

2. 2
MARK4210, 2014 Spring, L1/L2
Jones-Blair Case Learning
Objectives
 Recognize how a market can be segmented
 Analyze the attractiveness of a market segment;
based on competitive activity, buyer needs,
organization capabilities
 Recognize when metrics/measurements can be
misleading

3. 3
MARK4210, 2014 Spring, L1/L2
Jones-Blair Case – Key Questions
for Discussion
 How would you characterize the architectural paint coatings industry?
 How would you characterize the market area that Jones Blair serves?
 How should Jones Blair’s market area be segmented?
 Which segment(s) should Jones Blair pursue? Why?
• First, how attractive is each segment to JB? Consider the following factors: size of
each segment (need to calculate), characteristics of each segment, future growth
• Second, what is JB’s competitive position in each segment? Consider the following
factors: Jones Blair’s current market share in each segment (need to calculate), the
fit between each segment’s need and the company’s capabilities
 Among the four different plans proposed by VP of Advertising, VP of
Operations, VP of sales, VP of finance, what strategy should Jones Blair
adopt? Apart from qualitative assessment, you also need to make a
quantitative assessment of the various options (e.g., break-even).
 NOTE: It would be helpful for you to write down notes and calculations
and bring them to class for discussion.

4. 4
MARK4210, 2014 Spring, L1/L2
1. How would you characterize the
architectural paint coatings industry?
 CONTEXT
 COMPETITION
IN CLASS USE ONLY, NOT FOR RELEASE/CIRCULATION. TAKE NOTES AS NECESSARY.

5. 5
MARK4210, 2014 Spring, L1/L2
1. How would you characterize the
architectural paint coatings industry? (2)
 COLLABORATORS
 CUSTOMERS
IN CLASS USE ONLY, NOT FOR RELEASE/CIRCULATION. TAKE NOTES AS NECESSARY.

6. 6
MARK4210, 2014 Spring, L1/L2
2. How would you characterize the
market area that Jones Blair serves?
 GEOGRAPHY
IN CLASS USE ONLY, NOT FOR RELEASE/CIRCULATION. TAKE NOTES AS NECESSARY.

7. 7
MARK4210, 2014 Spring, L1/L2
2. How would you characterize the
market area that Jones Blair serves? (2)
 COMPANY SALES
 COMPETITION
IN CLASS USE ONLY, NOT FOR RELEASE/CIRCULATION. TAKE NOTES AS NECESSARY.

8. 8
MARK4210, 2014 Spring, L1/L2
3. How should Jones Blair’s market
area be segmented?
IN CLASS USE ONLY, NOT FOR RELEASE/CIRCULATION. TAKE NOTES AS NECESSARY.

9. 9
MARK4210, 2014 Spring, L1/L2
4.a. How attractive is each segment
to JB? – Size
IN CLASS USE ONLY, NOT FOR RELEASE/CIRCULATION. TAKE NOTES AS NECESSARY.

10. 10
MARK4210, 2014 Spring, L1/L2
4.a. How attractive is each segment
to JB? – Segments Share
IN CLASS USE ONLY, NOT FOR RELEASE/CIRCULATION. TAKE NOTES AS NECESSARY.

11. 11
MARK4210, 2014 Spring, L1/L2
4.a. How attractive is each segment
to JB? -- Quantitative
IN CLASS USE ONLY, NOT FOR RELEASE/CIRCULATION. TAKE NOTES AS NECESSARY.

12. 12
MARK4210, 2014 Spring, L1/L2
4.a. How attractive is each segment to
JB? – Qualitative
IN CLASS USE ONLY, NOT FOR RELEASE/CIRCULATION. TAKE NOTES AS NECESSARY.

13. 13
MARK4210, 2014 Spring, L1/L2
4.b. What is Jones Blair’s
competitive position in the market?
IN CLASS USE ONLY, NOT FOR RELEASE/CIRCULATION. TAKE NOTES AS NECESSARY.

14. 14
MARK4210, 2014 Spring, L1/L2
4. Which segment(s) should Jones
Blair’s pursue? Why?
IN CLASS USE ONLY, NOT FOR RELEASE/CIRCULATION. TAKE NOTES AS NECESSARY.

15. 15
MARK4210, 2014 Spring, L1/L2
Which strategy should Jones Blair
adopt?
1. Do nothing (VP Finance)
2. Increase advertising to household segment by
$350,000 with emphasis on corporate brand
advertising (VP Advertising)
3. Price reduction of -20% across-the-board (VP
Operations)
4. Add additional sales reps at $60,000 each (VP
Sales)
Key case limitations:
 Maintain gross profit at a minimum
 Realistic projections relative to market situation
IN CLASS USE ONLY, NOT FOR RELEASE/CIRCULATION. TAKE NOTES AS NECESSARY.

16. 16
MARK4210, 2014 Spring, L1/L2
1. Do nothing – Pros/Cons
IN CLASS USE ONLY, NOT FOR RELEASE/CIRCULATION. TAKE NOTES AS NECESSARY.

17. 17
MARK4210, 2014 Spring, L1/L2
2. Increase household advertising
+$350k – Quantitative Analysis
IN CLASS USE ONLY, NOT FOR RELEASE/CIRCULATION. TAKE NOTES AS NECESSARY.

18. 18
MARK4210, 2014 Spring, L1/L2
2. Increase household advertising
+$350k – Pros/Cons
IN CLASS USE ONLY, NOT FOR RELEASE/CIRCULATION. TAKE NOTES AS NECESSARY.

19. 19
MARK4210, 2014 Spring, L1/L2
3. Price reduction -20% --
Quantitative Analysis
IN CLASS USE ONLY, NOT FOR RELEASE/CIRCULATION. TAKE NOTES AS NECESSARY.

20. 20
MARK4210, 2014 Spring, L1/L2
3. Price reduction -20% -- Pros/Cons
IN CLASS USE ONLY, NOT FOR RELEASE/CIRCULATION. TAKE NOTES AS NECESSARY.

21. 21
MARK4210, 2014 Spring, L1/L2
4. Add sales representatives –
Quantitative Analysis
IN CLASS USE ONLY, NOT FOR RELEASE/CIRCULATION. TAKE NOTES AS NECESSARY.

22. 22
MARK4210, 2014 Spring, L1/L2
4. Add sales representatives –
Pros/Cons
IN CLASS USE ONLY, NOT FOR RELEASE/CIRCULATION. TAKE NOTES AS NECESSARY.