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

Shopping for the Rich and Famous is a buying service that helps wealthy clients find the best buys in exclusive clothing,high-end cars,travel,and financial services.This firm most likely uses income segmentation.

Refer to the scenario below to answer the following questions. Zhang Lei began making wooden writing utensils as a hobby until Wang Hui recognized Zhang's talent. Wang immediately ordered 250 pens and pencils of various styles to be displayed in his shop's showcase. Within three months, the writing utensils were a hit! Zhang had never thought of marketing his talent but Wang's enthusiasm and the recent sales were enough to change his mind. With limited resources, Zhang contacted three additional specialty shops within 100 km. He explained his manufacturing processes and engraving options to each. All three shops' owners placed a trial order. Within two months, just prior to the holiday season, each shop owner placed an additional order. Zhang was ecstatic! "I figured business would slow down after that," Zhang stated, "but in February I was contacted by Penguin Pens Distributors. At that point, I had to make a huge decision about how far I wanted to go with this business." Penguin Pens Distributors provided products for school fundraisers in the Beijing and Shanghai area. Zhang was offered a two-year contract and immediate inclusion in Penguin's promotional flyer. Zhang 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!" Zhang added. "I couldn't grow out of control. I was already working to capacity." Zhang decided to place his major focus on the large contract with Penguin. However, to avoid placing his total emphasis with one customer, Zhang 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," Zhang explained. "I had to hire three full-time employees to work the line while I managed the customer orders and purchased materials." Zhang paused. "But I can't take the Penguin 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 writing utensils to his four specialty-shop customers,Zhang Lei is using ________ marketing.

Upscale department store claims superior quality,performance,and style.The owners provide the most upscale products and services and charge a higher price to cover the higher costs.What type of positioning does Upscale use?

In general,a company should enter only segments in which it can ________ and ________.

When a company chooses a target marketing strategy,its choices are influenced by factors related to company resources,product variability,and the product's life-cycle stage.

Oil companies segment foreign markets by overall level of economic development.This firm segments on what basis?

When competitors use differentiated or concentrated marketing,________ marketing can be suicidal.

Today,most companies have moved back toward mass marketing and are being choosier about the customers with whom they wish to build relationships.

In evaluating different market segments,a firm should look at three factors: segment size and growth,segment structural attractiveness,and company objectives and resources.

Consumers can show their loyalty to brands,stores,or companies.Marketers can use this information to segment consumers by ________.