Lecture 3

Question 1

What is key to have success in with the different market segment?

Answer 1

1. Identify various profitable segments
2. Selecting well-defined groups of potentially profitable customers
3. Developing competiting products and services
4. Developing destinctive value propositions that competitively meet customer needs
5. Developing a marketing program

Question 2

Market segment

Answer 2

A group of potential or present customers that are large and unique enough to justify a separate marketing strategy

Question 3

4 criteria for evaluating market segments

Answer 3

• Measurability (customer information availability)
• Accessibility (focus marketing on firm)
• Sustainability (profitable enough?)
• Responsiveness (how companies response to e.g. price changes)

Question 4

Benefits of market segmentation, ability to…

Answer 4

• Focus product development
• Develop profitable pricing strategies
• Select appropriate channels of distribution
• Develop and target advertising messages
• Train and deploy the sales force

Question 5

Micro segmentation

Answer 5

• Purchasing criteria
• Purchasing strategy
• Importance of purchase
• Personal characteristics

Question 6

Macro segmentation

Answer 6

• Geographic
• Customer type
• Customer size
• Product/ service use
• Purchasing situation

Question 7

4 Different types of buyers

Answer 7

• Programmed buyer (not price/ service sensitive)
• Relationship buyer (not price sensitive)
• Transactional buyer (price sensitive, considerations are made to service)
• Bargain hunter (price/ service sensitive)

Question 8

Strategy of account-based management (ABM)

Answer 8

• Focus marketing on a single client
• Develop a collaborative relationship
• Work with the client to mutually develop value propositions that meets the client business needs

Question 9

6 Questions to implement a segmentation plan

Answer 9

1. How should the sales force be organized?
2. What services will the organizations in new segment require
3. Who will provide the new services?
4. How do we contact the new segment?
5. Can we provide continuous support in the new segment?
6. What new adaptations will be necessary to serve the selected international market segment?

Question 10

Considerations of forecasting demand

Answer 10

• Potential business opportunities

- Level and type of market efforts demanded

Question 11

4 Methods of forecasting demand

Answer 11

• Qualitative techniques
• Quantitative techniques
• Collaborative planning Forecasting and Replenishment
• Combining several forecasting techniques

Question 12

3 qualitative forecasting techniques

Answer 12

• Executive judgement
• Sales force composite
• Delphi method

Question 13

The delphi method in 3 steps

Answer 13

1. A moderator (analyst) attains a forecast opinion from a panel of anonymous experts
2. These estimates (and reasonings) are passed around the entire group and new estimates are evoked
3. Rounds continue until a consensus is reached