MAR3023 CH9: STP MARKETING EXAM QUESTIONS AND
ANSWERS WITH COMPLETE SOLUTIONS GRADED A++ LATEST
UPDATE
Zappos core values
1. Deliver WOW through service. This focus on exemplary customer service
encompasses all 10 core values.
#3. Create fun and a little weirdness. In a Zappos.com day, cowbells ring, parades
appear, and modified-blaster gunfights arise.
#6. Build open and honest relationships with communication. Employees are told to say
what they think.
Marget Segmentation
aggregating prospective buyers into groups, or segments, that
(1) have common needs and
(2) will respond similarly to a marketing action
Market Segments
are the relatively homogeneous groups of prospective buyers that result from the
market segmentation process. Each market segment consists of people who are
relatively similar to each other in terms of their consumption behavior.
Market segmentation is only a means to an end:
The process of segmenting a market and selecting specific segments as targets is the
link between the various buyers' needs and the organization's marketing program,
,It leads to tangible marketing actions that can increase sales and profitability.
1. Identify Market Needs
2. Link Needs to Actions
3. Execute Marketing Program Actions (Marketing Mix)
Zappos Segmentation Strategy
The Zappos.com target customer segment originally consisted of people who wanted to
(1) have a wide selection of shoes, (2) shop online in the convenience of their own
homes, and (3) receive quick delivery and free returns.
Market Product Grid
A market-product grid is a framework to relate the market segments of potential buyers
to products offered or potential marketing actions.
Pillows
Segmentation after the recession
Offer different products to reach (1) high-income and (2) low-income families.
Segmentation Strategies
Expense should not exceed profit
(1) one product and multiple market segments,
Magazines
Disney
(2) multiple products and multiple market segments,
, Ford: may meed consumer needs better and incrase profit more than increase in
cost, or the proliferation of different models and options can reduce quality and
raise prices
(3) segments of one, or mass customization
flower arrangement
Mass customization is the next step beyond build-to-order (BTO), manufacturing
BTO manufacturing
manufacturing a product only when there is an order from a customer. A
example apple four choices that are assembled quickly
The Segmentation Trade Off
Synergies versus Cannibalization
Synergies
ideal balance between satisfying a customer's individual wants and achieving
organizational synergy (efficiency)
-increased revenue
Cannibalization
Are the new products or new chain simply stealing customers and sales from the older,
existing ones? This is known as cannibalization.
Two tier Tiffany/Walmart strategy
Gap's Banana Republic chain sells blue jeans for $58, whereas Old Navy stores sell a
slightly different version for $22.
lines can blur and steal customers from other store
ANSWERS WITH COMPLETE SOLUTIONS GRADED A++ LATEST
UPDATE
Zappos core values
1. Deliver WOW through service. This focus on exemplary customer service
encompasses all 10 core values.
#3. Create fun and a little weirdness. In a Zappos.com day, cowbells ring, parades
appear, and modified-blaster gunfights arise.
#6. Build open and honest relationships with communication. Employees are told to say
what they think.
Marget Segmentation
aggregating prospective buyers into groups, or segments, that
(1) have common needs and
(2) will respond similarly to a marketing action
Market Segments
are the relatively homogeneous groups of prospective buyers that result from the
market segmentation process. Each market segment consists of people who are
relatively similar to each other in terms of their consumption behavior.
Market segmentation is only a means to an end:
The process of segmenting a market and selecting specific segments as targets is the
link between the various buyers' needs and the organization's marketing program,
,It leads to tangible marketing actions that can increase sales and profitability.
1. Identify Market Needs
2. Link Needs to Actions
3. Execute Marketing Program Actions (Marketing Mix)
Zappos Segmentation Strategy
The Zappos.com target customer segment originally consisted of people who wanted to
(1) have a wide selection of shoes, (2) shop online in the convenience of their own
homes, and (3) receive quick delivery and free returns.
Market Product Grid
A market-product grid is a framework to relate the market segments of potential buyers
to products offered or potential marketing actions.
Pillows
Segmentation after the recession
Offer different products to reach (1) high-income and (2) low-income families.
Segmentation Strategies
Expense should not exceed profit
(1) one product and multiple market segments,
Magazines
Disney
(2) multiple products and multiple market segments,
, Ford: may meed consumer needs better and incrase profit more than increase in
cost, or the proliferation of different models and options can reduce quality and
raise prices
(3) segments of one, or mass customization
flower arrangement
Mass customization is the next step beyond build-to-order (BTO), manufacturing
BTO manufacturing
manufacturing a product only when there is an order from a customer. A
example apple four choices that are assembled quickly
The Segmentation Trade Off
Synergies versus Cannibalization
Synergies
ideal balance between satisfying a customer's individual wants and achieving
organizational synergy (efficiency)
-increased revenue
Cannibalization
Are the new products or new chain simply stealing customers and sales from the older,
existing ones? This is known as cannibalization.
Two tier Tiffany/Walmart strategy
Gap's Banana Republic chain sells blue jeans for $58, whereas Old Navy stores sell a
slightly different version for $22.
lines can blur and steal customers from other store
