Question

Kansas City-based Hallmark Cards, Inc., is the “personal expressions” industry leader, selling nearly half of all greeting cards purchased in America. Joyce C. Hall founded the company in 1910. Since that time, the company's creative staff has grown to more than 740 in-house artists, designers, stylists, photographers, writers and editors who design nearly 30,000 products each year. It also has a very large marketing department which relies heavily on in-house marketing research as well as independent marketing research companies to develop and evaluate, not only ideas for its cards, but various segmentation bases.

(A) Discuss two possible segmentation variables that Hallmark could use to segment the market. Describe the different segments resulted from the segmentation. One segmentation must be based on a behavioral variable.

(B) Identify one segment resulted from using one of the segmentation variables discussed in (A). Explain how you would evaluate this specific segment. Decide whether targeting this segment would be profitable.

Answer 1