Pts 1 ref 126 128 obj 08 7 top aacsb communication

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PTS: 1 REF: 126-128 OBJ: 08-7 TOP: AACSB Communication | TB&E Model Strategy 17. Define multisegment targeting and discuss the advantages and disadvantages of this targeting strategy. ANS: A firm that chooses to serve two or more well-defined market segments and develops a distinct mar- keting mix for each has a multisegment targeting strategy. This strategy offers many potential benefits to firms, including greater sales volume, higher profits, larger market share, an economies of scale in manufacturing and marketing. yet it may also involve greater product design, production, promotion, inventory, marketing research, and management costs. Another potential disadvantage is cannibaliza- tion, which occurs when sales of a new product cut into sales of a firm’s existing products. PTS: 1 REF: 128-129 OBJ: 08-7
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TOP: AACSB Communication | TB&E Model Strategy 18. Define cannibalization. Is it always bad? Explain. ANS: Cannibalization occurs when sales of a new product cut into sales of a firm's existing products. Cannibalization would be preferred over losing sales to a competitor. Cannibalization can also help to build new business. PTS: 1 REF: 129 OBJ: 08-7 TOP: AACSB Communication | TB&E Model Product 19. Compare and contrast traditional mass marketing and one-to-one marketing. What is the primary goal for companies that adopt the one-to-one marketing approach? ANS: One-to-one marketing is an individualized marketing method that utilizes customer information to build long-term, personalized, and profitable relationships with each customer. The goal is to reduce costs through customer retention and increase revenue through customer loyalty. The difference between one-to-one marketing and the traditional mass-marketing approach can be compared to shoot- ing a rifle and a shotgun. If you have good aim, a rifle is the more efficient weapon to use. A shotgun, on the other hand, increases your odds of hitting the target when it is more difficult to focus. Instead of scattering messages far and wide across the spectrum of mass media (the shotgun approach), one-to- one marketers look for opportunities to communicate with each individual customer (the rifle ap- proach). PTS: 1 REF: 129 OBJ: 08-8 TOP: AACSB Communication | TB&E Model Strategy 20. Discuss the four trends that have resulted in the continuing growth of one-to-one marketing. ANS: First, the one-size-fits-all marketing of yesteryear no longer fits. Customers do not want to be treated like the masses. Second, direct and personal marketing efforts will continues to grow to meet the needs of customers who no longer have the time to spend shopping and making purchase decisions. Third, customers will be loyal to those companies and brands that have earned their loyalty and reinforced it at every purchase occasion. Fourth, mass-media approaches will continue to decline in importance as advances in market research and database technology allow marketers to collect more detailed inform- ation on their customers, not just the approximations allowed by demographics but the specific names and addresses.
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  • Spring '10
  • Patterson
  • Marketing, AACSB Reflective Thinking, TB&E Model Strategy, A This magazine

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