Exam 7: Customer-Driven Marketing Strategy: Creating Value for Target Customers

What does a company focus on when using an undifferentiated marketing strategy?

________ segmentation divides buyers into segments based on their knowledge, attitudes, uses, or responses concerning a product.

To the extent that a company can differentiate and position itself as providing superior customer value, it gains ________.

Refer to the scenario below to answer the following questions. Herb Marks was making wooden pens and pencils, which had unique engravings, as a hobby until Mel Yoder recognized Herb's talent. Mel immediately ordered 250 pens and pencils of various styles to be displayed in his shop's showcase. Within three months, the wooden pencils were a hit with all school goers! Herb Marks had never thought of marketing his talent, but Mel's enthusiasm and the recent sales were enough to change his mind. With limited resources, Herb contacted three additional specialty shops within 100 miles which were situated near schools. He explained his manufacturing processes and engraving options to each. All three shop owners placed a trial order. Within two months, just prior to the holiday season, each shop owner placed an additional order. Herb was ecstatic! "I figured business would slow down after that," Herb stated, "but in February I was contacted by Elmore Distributors. At that point, I had to make a huge decision about how far I wanted to go with this business." Elmore Distributors provides products for school fundraisers in a seven-state area. Herb was offered a two-year contract and immediate inclusion in Elmore's promotional flyer. Herb Marks accepted the offer and, along with it, the responsibility to produce thousands of wooden pens and pencils. "I had to get a grip on the magnitude of this project," Herb added. Herb decided to place his major focus on the large contract with Elmore. However, to avoid placing his total emphasis with one customer, Herb continued nurturing his four previously established accounts without targeting any additional customers. "At this point, I had set up an assembly line in a rented building," Herb explained. "I had to hire three full-time employees to work the line while I managed the customer orders and purchased materials." Herb paused. "But I can't take the Elmore project for granted. It might not always be there. I'll have to have a good alternate plan if that day comes." -In marketing his wooden pens and pencils to specialty-shop customers, Herb was most likely using ________ marketing.

Which of the following is LEAST relevant when a firm evaluates different market segments?

A ________ refers to the way a product is defined by consumers on important attributes-the place the product occupies in consumers' minds relative to competing products.

With a(n) ________ marketing strategy, a firm goes after a large share of one or a few smaller niches.

How do firms practicing channel differentiation gain competitive advantage?

What is differentiation?

________ segments are conceptually distinguishable and respond differently to different marketing mix elements and programs.

Intermarket segmentation refers to forming segments of consumers who have different needs and buying behaviors in a given geographical region.

Orion Inc. markets luxury watches and chronographs. It targets the wealthy global elite segment, regardless of their geographic location. Orion most likely uses ________ segmentation.

When using a niche marketing strategy, a firm goes after a large share of one or a few smaller segments.

What is product position? What functions do perceptual positioning maps serve?

What are the major structural factors affecting long-run segment attractiveness?

A product position is the way a product is defined by consumers on important attributes.

Which of the following is true about behavioral segmentation on the basis of the loyalty variable?

________ is more suited for products that vary in design.

A target market consists of a set of buyers who share common needs or characteristics that the company decides to serve.

________ calls for dividing the market into regions, states, counties, cities, or even neighborhoods.