SI CHEN EXAM 3 MBA 706
COMPREHENSIVE QUESTIONS AND
SOLUTIONS
◉ Mass Marketing
Answer: The firm ignores segment differences and goes after the
whole market with one offer.
Creates the largest potential market, which leads to the lowest
costs, which in turn can lead to lower prices or higher margins.
◉ Targeted Marketing
Answer: Sell different products to all the different segments of the
market.
The ultimate level of targeting is the one-to-one approach in
which each market segment comprises a single customer.
◉ Mass Customization
Answer: The ability of a company to meet each customer's
requirements—to prepare on a mass basis individually designed
products, services, programs, and communications
◉ Strategic Targeting
,Answer: Focuses on customers whose needs the company can
fulfill by ensuring that its offerings are customized to their needs.
Based on the deliberate choice to ignore some customers to better
serve other customers.
◉ Tactical Targeting
Answer: Identifies the ways in which the company can reach these
strategically important customers.
Strives to reach all strategically important customers.
◉ Target Compatibility
Answer: Can the company create superior value for target
customers?
The company must have the assets and competencies necessary to
design an offer that creates customer value and outdoes
competition.
◉ Core Competency
Answer: A source of competitive advantage and makes a
significant contribution to perceived customer benefits.
Has applications in a wide variety of markets.
Is difficult for competitors to imitate.
◉ Target Attractiveness
,Answer: Can these customers create superior value for the
company?
The company must select customers that tailor its offering based
on the degree to which they can contribute value to the company
and assist the company in reaching its goal.
◉ Monetary Value
Answer: Consists of the capability of customers to engender
profits for the company
◉ Customer Revenues
Answer: Money received by the company from customers for the
right to own or use its offering.
◉ Cost of Serving Customers
Answer: The expense of tailoring the offering's benefits to the
needs of target customers, along with communicating and
delivering the offering to them.
◉ Strategic Value
Answer: Nonmonetary benefits that customers bring to the
company.
More challenging than assessing monetary value: Strategic value
is not readily observable and can be difficult to quantify
◉ Social Value
, Answer: Reflects the influence of target customers on other
potential buyers
◉ Scale Value
Answer: The benefits derived from the scale of the company's
operations
◉ Information Value
Answer: The worth of the information that customers provide.
One reason why a company might target customers is for the
wealth of data they can furnish the company about their needs
and profile
◉ Demographic Factors
Answer: Easy to measure.
Often associated with consumer needs and wants.
Age, Life cycle stage, Gender, Income, Race and Culture.
◉ Geographic Factors
Answer: The physical location of target customers.
Going online to reach customers in a particular geographic
location can open a host of local opportunities.
◉ Geoclustering
Answer: Captures the increasing diversity of the U.S. population.
COMPREHENSIVE QUESTIONS AND
SOLUTIONS
◉ Mass Marketing
Answer: The firm ignores segment differences and goes after the
whole market with one offer.
Creates the largest potential market, which leads to the lowest
costs, which in turn can lead to lower prices or higher margins.
◉ Targeted Marketing
Answer: Sell different products to all the different segments of the
market.
The ultimate level of targeting is the one-to-one approach in
which each market segment comprises a single customer.
◉ Mass Customization
Answer: The ability of a company to meet each customer's
requirements—to prepare on a mass basis individually designed
products, services, programs, and communications
◉ Strategic Targeting
,Answer: Focuses on customers whose needs the company can
fulfill by ensuring that its offerings are customized to their needs.
Based on the deliberate choice to ignore some customers to better
serve other customers.
◉ Tactical Targeting
Answer: Identifies the ways in which the company can reach these
strategically important customers.
Strives to reach all strategically important customers.
◉ Target Compatibility
Answer: Can the company create superior value for target
customers?
The company must have the assets and competencies necessary to
design an offer that creates customer value and outdoes
competition.
◉ Core Competency
Answer: A source of competitive advantage and makes a
significant contribution to perceived customer benefits.
Has applications in a wide variety of markets.
Is difficult for competitors to imitate.
◉ Target Attractiveness
,Answer: Can these customers create superior value for the
company?
The company must select customers that tailor its offering based
on the degree to which they can contribute value to the company
and assist the company in reaching its goal.
◉ Monetary Value
Answer: Consists of the capability of customers to engender
profits for the company
◉ Customer Revenues
Answer: Money received by the company from customers for the
right to own or use its offering.
◉ Cost of Serving Customers
Answer: The expense of tailoring the offering's benefits to the
needs of target customers, along with communicating and
delivering the offering to them.
◉ Strategic Value
Answer: Nonmonetary benefits that customers bring to the
company.
More challenging than assessing monetary value: Strategic value
is not readily observable and can be difficult to quantify
◉ Social Value
, Answer: Reflects the influence of target customers on other
potential buyers
◉ Scale Value
Answer: The benefits derived from the scale of the company's
operations
◉ Information Value
Answer: The worth of the information that customers provide.
One reason why a company might target customers is for the
wealth of data they can furnish the company about their needs
and profile
◉ Demographic Factors
Answer: Easy to measure.
Often associated with consumer needs and wants.
Age, Life cycle stage, Gender, Income, Race and Culture.
◉ Geographic Factors
Answer: The physical location of target customers.
Going online to reach customers in a particular geographic
location can open a host of local opportunities.
◉ Geoclustering
Answer: Captures the increasing diversity of the U.S. population.
