Chapter 2 + Customer Value Proposition + Rediscovering Market Segmentation

Question 1

Big 5 personality traits

Answer 1

Openness
Consciousness
Extraversion
Agreeableness
Neuroticism

Question 2

Sources of customer heterogeneity (why are customers so different)
-> only the name needed

Answer 2

1. Individual differences
2. Life experiences
3. Functional needs
4. Self identity and image
5. Marketing activities

Question 3

Individual preferences

Answer 3

Each person has stable and consistent ways of responding to theirs environment, which means personal preferences vary. This can be seen in choices such as favourite colours or personality traits

Question 4

Life experiences

Answer 4

Unique life experiences also play a role. For example, someone who grew up in a warm climate may have a preference for spicy food, while someone from a different environment might not share the same taste.

Question 5

Functional needs

Answer 5

These needs are specific to each person’s circumstances. Some may prioritise cost over quality, while other look for durability or specific product features.

Question 6

Self identity and image

Answer 6

Many customers choose products that align with their self image or the image they aspire to be. For example, a person might choose certain clothing or brands to express their identity

Question 7

Marketing activities

Answer 7

Firms may also influence preferences through marketing efforts, creating associations between their brands and certain customer identities or desires

Question 8

Latent customer heterogeneity

Answer 8

Potential differences in desires that are uni served and have not yet become manifest in customer purchase preferences or behaviours. May come from legal, economic, technological, or innovative constraints

Question 9

How to manage customer heterogeneity?

Answer 9

STP, segmentation, targeting and positioning

Question 10

Segmentation

Answer 10

Dividing the overall market into smaller groups of customers who have similar needs and preferences. This helps businesses recognise that not all customers are the same and that offering a single product may not satisfy everyone. Segmentation directly aligns MP1 by identifying different groups of customers with distinct needs

Question 11

Targeting

Answer 11

After identifying segments, businesses select one or more segment to focus on. This ensure that marketing efforts are directed toward groups that are more likely to respond positively to the product offering. Focusing on specific customer segments can lead to better outcomes than trying to serve all customers

Question 12

An ideal target segment should meet 6 criteria’s

Answer 12

• based on customer needs, customer care
• different than other segments, little crossover competition
• differences match firm’s competencies, firm can execute within resource constraints
• sustainable, can keep customer from switching to the competition
• customer are identifiable, can find targets customers
• financially valuable in long term

-> GE Matrix

Question 13

Positioning

Answer 13

Companies tailor their marketing message and product offerings to appeal to the targeted segments. They emphasise the features and benefits that meet the specific needs of the target customers. Positioning ensures that the business offers a products that is seen as the best solution for the identified segment, reinforcing the idea that customer differ

Question 14

Positioning statement

Answer 14

• who are the customers?
• what is the set of needs that the product or service fulfill?
• why is the product the best option to satisfy customer needs?

Question 15

To evaluate a positioning statement we need consider the 3 types of value propositions. What are the 3 ?

Answer 15

• all benefits
• favourable points
• resonating focus

Question 16

All benefits

Answer 16

Listing all benefits that target the group of customer you want to target

Question 17

Favorable points of difference

Answer 17

Value presumption: assuming that favorable points of difference must be valuable to the customer

To focus on a meaningful benefit that resonates with target audience
Using what differentiates from competitors to attract our target segment

Question 18

Resonating focus

Answer 18

Addressing the primary need (benefit) of their target market. Does it resonates with them