Q1: List and briefly the four major steps in designing a customer-driven marketing strategy?
Customer driven marketing strategy begins with selecting which customers to serve and deciding on a value preposition that best serve the customers.
Market segmentation: is the act of dividing a market into distinct segments of buyers with different needs or behaviors that might require separate products. Market targeting: evaluates each market segment’s attractiveness and selects one or more segment to serve. Differentiation: involves differentiating the market offering to create customer value. positioning: consists of positioning the market offering in the minds of the customer.
Q2: Discuss the behavioral variables used to segment buyers and provide an example of each?
There are many ways to segment a market, but not all segmentation. Ex: Buyers of salt could divide into blond and brunette customers, but hair color doesn’t affect the purchase. The segments must be:
Measurable: the size, purchasing power and profiles of the segments can be measured. Accessible: the market segments can be effective.
Substantial: the market segments are large or profitable enough to serve. Differentiable: the segments are conceptually and respond differently. Actionable: effective programs can be designed for attracting and serving.
Q4: Name and describe the characteristics of useful market segments?
Buyers in many markets differ in their wants, resources, location and buying practice. Companies divide large markets into smaller segments that can be reached more efficiently and services that match their unique needs.
Q5: Compare and contrast local marketing and individual marketing?
1- Involves tailoring brands and promotions to the needs of local customers, cities or even specific stores. 2- Have more some drawbacks. It can drive up manufacturing costs by reducing economies of scale.
1- Marketing programs and tailoring products to the needs and preferences of individual customers. 2- It has been labeled one-to-one marketing and markets-of-one marketing.
Q4: discuss the four special characteristics of services. How do the services offered a doctor’s office differ from those offered by a bank in terms of these characteristics?
1- Service intangibility: services cannot be seen, tasted, felt, heard or smell before buying. 2- Service inseparability: services cannot be separated from their providers. Whether the providers are people or machines. 3- Service perishes ability: services cannot be stored for later sale or use. 4- Service variability: quality of services depends on who provides them and when, where and how.
Some doctors charge patients for missed appointments because the service value existed only at the point and disappeared when the patient did not show up.
Q5: why is a brand a powerful asset of an organization? How does a strong brand provide a competitive advantage for a company?
Brand equity is the differential effect that knowing the brand name has on customer response to the product and its marketing, it’s a measure of the brand’s ability to capture consumer preference and loyalty.
A brand has positive brand equity when consumers react more favorably to it than to unbranded version of the same product.
Q6: Compare and contrast the four brand sponsorship options available to a manufacturer. Provide an example of each?
National brands: (manufacturers brands) have long dominated the retail scene.
Privet brand: (store brands) have been gaining strength for more then decade. They are growing much faster than national brands.
Battle of the brands between national and private brands, retailers has many advantages they control what products the stock, what price and where is the shelf. They give to reseller exclusive products that cannot be bought from competitors....