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

________ marketing is more suited for uniform products, such as grapefruit or steel.

Using a segmented marketing strategy, a firm might decide to ignore market segment differences and target the whole market with one offer.

Refer to the scenario below to answer the following question(s). Ruben Delgado was making wooden pens and pencils, which had unique engravings, as a hobby until Simon Yoder recognized Ruben's talent. Simon 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 students! Ruben Delgado had never thought of marketing his talent, but Simon's enthusiasm and the recent sales were enough to change his mind. With limited resources, Ruben contacted three additional specialty shops within 100 miles that 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. Ruben was ecstatic! "I figured business would slow down after that," Ruben 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. Ruben was offered a two-year contract and immediate inclusion in Elmore's promotional flyer. Ruben Delgado 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," Ruben added. He decided to place his major focus on the large contract with Elmore. However, to avoid placing his total emphasis with one customer, Ruben 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," Ruben explained. "I had to hire three full-time employees to work the line while I managed the customer orders and purchased materials." Ruben 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 the scenario, Ruben has segmented his market based on ________.

________ involves actually distinguishing the firm's market offering to create superior customer value.

Which of the following states the product's membership in a category and then shows its point of difference from other members of the category?

Through ________ differentiation, brands can be differentiated on features, performance, or style and design.

Psychographic segmentation divides buyers into different segments based on lifestyle or personality characteristics.

________ consists of evaluating each market segment's attractiveness and selecting one or more segments to enter.

What is differentiation?

Product differentiation 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.

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

Why do international markets need to be segmented?

Business marketers use geographic, demographic, benefit, user status, usage rate, and loyalty status to segment their markets. They also use ________, customer operating characteristics, purchasing approaches, and situational factors.

Briefly explain local and individual marketing.

________ can be a poor predictor of a person's health, work or family status, needs, or buying power.

How do firms practicing channel differentiation gain competitive advantage?

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

Andrew Levitt runs a retail store in Norristown. Andrew's store stocks cold weather products as Norristown mostly has sub-zero temperatures. Which of the following is evident here?

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

When segmenting by usage rate, markets can be segmented into nonusers, ex-users, potential users, first-time users, and regular users of a product.