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? Local marketing: 1- Involves tailoring brands and promotions to the needs of local customers, cities or even specific stores. – Have more some drawbacks. It can drive up manufacturing costs by reducing economies of scale. Individual marketing: 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. P. 266 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. – 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. P: 297 Q5: Briefly describe the five stages of the product life cycle. Identify a product class, form, or brand that is in each stage? Each product has a life cycle marked by a changing set of problems and opportunities. ? Product development stage: in which the company finds and develops a new product idea. Introduction stage: is marked by slow growth and low profits as the product distributed to the market. ? Growth stage: which offers rapid sales growth and increasing profits. ? a maturity stage: in which sales growth slows down and profits stabilize. ? Decline stage: in which sales and profits dwindle, management must decide whether to maintain the brand without change, hoping the competitors will dropout of the market. P. 333 Q3: Compare and contrast market-skimming and market-penetration pricing strategies. When would each be appropriate? Market skimming many companies that invent new product set high initial prices to skim revenues layer by layer from the market. ? market skimming makes sense only under certain condition. First, the product quality and image must support its higher price and enough buyers must want the product at the price. Second, the costs of producing a smaller volume cannot be so high. ? Market penetration they set a low initial price in order to open the market quickly and deeply. To attract a large numbers of buyers quickly and win a large market share. Q5: why do marketers charge customers different prices for the same product or service?
Explain how this type of pricing is implemented and the conditions under which it is effective. When affirm considers initiating a price change, it must consider customers and competitors reactions there are different implication to initiating a price cuts and initiating price increases. Buyers reaction to price changes are influenced by the meaning customers see in the price change. P. 366 Q2: What is channel conflict? Discuss the two main types of channel conflict and give an example of each. Channel conflict: is agreement among marketing channel members on goals, roles, and rewards we should do what and for what rewards. Horizontal conflict: occurs among firms at the same level of the channel. For instance, Honda dealers in Chicago might complain that the other dealers in the city steal sales from them by pricing too low or by advertising outside their as signed territories. ? Vertical conflict: conflict between different levels of the same channel, is even more common. For example, Goodyear created hard feelings and conflict with its premier independent. Dealer channel when it began selling through mass-merchant retailers. Q4: Compare and contrast intensive, selective, and exclusive distribution.
Give an example of a product or brand that is distributed at each level? ? Intensive Distribution: a strategy in which they stock their products as many outlets as possible. This products must be available where and when want them. Toothpaste, candy, and other similar items are sold in millions of outlets. ? Exclusives Distribution: in which the producer gives only a limited number of dealers the exclusives right to distribute its products in their territories. Exclusives Rolex watches are typically sold by only handful of authorized dealers in any given market area. Selective Distribution: the use of more than one lout fewer than all, of the enter me diaries who are willing to carry a company’s products. Most television, furniture and home appliance brands are distributed in this manner. P. 434 Q2: Discuss the changing communication landscape and the need for integrated marketing communication? The shift toward a richer mix of media and communication approaches a problem for markets consumers today are bombarded by commercial messages from a broad range of sources. The problem is that these communications often come from different parts of a company.
Advertising messages are planned and implemented by the advertising department or an advertising agency. Q3: Compare and contrast pull and push promotion strategies. Which promotion tools are most effective in each? ? Push strategy that calls for using the sales force and trade promotion to push the product through channels. The producer promotes the product to channel members who in turn promote it to final consumers. ? Pull strategy that calls for spending a lot of advertising and consumer promotion to induce final consumer to buy the product creating a demand locum that “pulls” the product through the channel.
Some industrial goods companies use only push strategies, some direct marketing companies use only pull. However most large companies use some combination of both. Q4: How do marketers measure the effectiveness of advertising? The effectiveness of advertising is really quite simple to measure. First, the purpose of advertising is to persuade potential buyers that they want and need what you have to offer. Successful advertising creates and nurtures that sense of need, and then incites people to get up and go get whatever you are promoting. Colgate Palmolive
Many companies have been successful at holding prices steady. Colgate makes their price steady for a long time. Advertising is suitable for many people. According to age. This product is verity age’s uses children, boys, girls, men and women. It offers a good value pricing to their customers. McDonald’s This company offers outdoor advertising. They have many branches in all over the world according to many resources. They offer a good service in all branches but this kind of food is related to fast food categories, so they also try to make this kind are suitable for all ages.