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

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

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.

Market targeting is ________.

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

Niche marketing involves tailoring brands and promotions to the needs and wants of local customer groups-cities, neighborhoods, and even specific stores.

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

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." -If Ruben interacted one-to-one with his customers to design his products and services according to individual needs, he would be practicing ________.

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

Chronos Inc. designs and markets different brands of cycling watches. Each brand has a single unique feature: the Chronos Cosmos has a heart rate monitor, the Chronos Acumen is designed for older cyclists who prefer a large display, and the Chronos Aegis has a GPS function. Which of the following is evident here?

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

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

A company selling child-care products ran a television ad depicting women as being primarily responsible for childcare. Many women viewers considered this regressive, alleging that the ad failed to recognize the much more diversified role of women in today's world. This is an example of ________.

Less-for-much-less positioning involves meeting consumers' lower performance or quality requirements at a much lower price.

When an effective program can be designed for attracting and serving a particular segment, the segment is best described as ________.

"To busy multitaskers who need help remembering things, Evernote is a digital content management application that makes it easy to capture and remember moments and ideas from your everyday life using your computer, phone, tablet, and the Web." This is an example of a(n) ________.

What is differentiation?

In the context of behavioral segmentation, who among the following is a potential user?

Which of the following is true about the concentrated marketing strategy?

A segment is less attractive if it ________.

Companies find it as easy to come up with a good positioning strategy as to execute it.