customer value driven market strategy

Question 1

Name all of the steps of the customer value driven market strategy.

Answer 1

1. Market Segmentation.
2. Select target segments.
3. Differentiation.
4. Select an overall positioning strategy.

Question 2

What is market segmentation?

Answer 2

Refers to dividing the market into distinct groups of consumers with different needs and characteristics who might require separate marketing strategies.

Question 3

List major marketing bases

Answer 3

Geographic
Psychographic
Demographic
Behavioral

Question 4

Geographic segmentation

Answer 4

Divide the market into different geographical units such as nations, cities or even neighbourhoods.

Question 5

Demographic segmentation

Answer 5

Based on age, gender, income, occupation, race and religion.

Question 6

Psychographic segmentation

Answer 6

Based on lifestyle or personality characteristics.

Question 7

Behavioural segmentation

Answer 7

Based on consumer knowledge, attitudes, uses of a product or responses to a product.

Question 8

What is meant by select target segments?

Answer 8

Refer to a set of consumers who share common needs or characteristics that the company decides to serve.

Question 9

What are the criteria to evaluate target segments?

Answer 9

Size & Growth
Segment structural attractiveness
Company objectives & Resources

Question 10

What is size and growth?

Answer 10

Refers to selecting the largest, fastest and most profitable segments.

Question 11

What is segment structural attractiveness?

Answer 11

Refers to the absence of strong competitors & non-existence of substitute products.

Question 12

Company objectives and resources

Answer 12

Answers the question of: Does the company have resources to succeed?

Question 13

Name market COVERAGE strategies.

Answer 13

Undifferentiated marketing
Differentiated marketing
Micromarketing
Concentrated (niche) marketing

Question 14

Undifferentiated marketing

Answer 14

When the company decides to ignore market segment differences and go after the whole market with one offer. (E.g. Copper)

Question 15

Differentiated marketing

Answer 15

When the company decides to target several market segments and designs separate offers for each.

Question 16

Concentrated(niche)

Answer 16

When the company goes after a large share of one or a few segments.

Question 17

Micromarketing

Answer 17

Refers to tailoring products to the needs and wants of specific individuals.

Question 18

What is differentiation?

Answer 18

Have a competitive advantage over competitors gained by offering greater customer value, either by having lower prices or by providing more benefits that justify higher prices.

Question 19

Name all differentiations and its explanation.

Answer 19

Product differentiation through features, performance, style & design.

Services differentiation through speedy, convenient service

Channel differentiation through the way the company designs its channel’s coverage and performance.

People differentiate by hiring & training better staff than competitors do.

Image differentiation by conveying unique benefits & a distinctive image.

Question 20

Name all winning value propositions/ positioning strategies.

Answer 20

More for more

More for the same

Same for less

Less for much less

More for less

Question 21

More for more

Answer 21

Provides the most upscale product or service and charges a higher price to cover the higher costs

Question 22

More for the same

Answer 22

Provides high quality products at lower prices. It can be used to attack a more for more positioning

Question 23

Same for less

Answer 23

Gives a good deal to customers and it is used by discount stores to offer deep discounts based on superior purchasing power and lower-cost operations.

Question 24

Less for much less

Answer 24

Meets consumers’ lower performance or quality requirements at a much lower price.

Question 25

More for less

Answer 25

Best winning proposition and it is very difficult for companies to sustain such best-of-both positioning.