with different products of the same general type as the text points out in

With different products of the same general type as

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with different products of the same general type, as the text points out in connection with Zappos. As long as a new product does not take a significant amount of sales away from an existing product, it can contribute to increased revenues for the firm. AACSB: Analytical Blooms: Comprehension Difficulty Level: Medium Kerin - Chapter 09 #209 Learning Objective: 09-01 Explain what market segmentation is and when to use it. Topic: Product Differentiation
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210. (p. 189- 190) Why would an organization produce a single good or service and then attempt to sell it to two or more market segments? An organization would produce a single good or service and then attempt to sell it to two or more market segments to avoid the added cost of developing additional versions of the product, which often entails high research, engineering, and manufacturing expenses. In this case, the incremental costs of taking the product into new market segments are typically those of a separate promotional campaign or a new channel of distribution. Although these expenses can be high, they are rarely as large as those for developing an entirely new product. AACSB: Analytical Blooms: Comprehension Difficulty Level: Medium Kerin - Chapter 09 #210 Learning Objective: 09-01 Explain what market segmentation is and when to use it. Topic: Single Product-Multiple Markets 211. (p. 190) Why would an organization produce multiple products or services and then attempt to sell them to two or more market segments? Organizations may target different products or services to multiple market segments. Producing these different products or services is clearly more expensive than producing only one product or service but is effective if it meets customers' needs better, doesn't reduce quality or increase price, and adds to the organization's sales revenues and profits. AACSB: Analytical Blooms: Comprehension Difficulty Level: Medium Kerin - Chapter 09 #211 Learning Objective: 09-01 Explain what market segmentation is and when to use it. Topic: Multiple Products-Multiple Markets
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212. (p. 190- 191) Explain the difference between mass customization and build-to-order. Mass customization involves the tailoring of goods or services to the tastes of individual customers on a high-volume scale. Build-to-order involves manufacturing a product only when there is an order from a customer. AACSB: Analytical Blooms: Comprehension Difficulty Level: Medium Kerin - Chapter 09 #212 Learning Objective: 09-01 Explain what market segmentation is and when to use it. Topic: Mass Customization FIGURE 9-7 Kerin - Chapter 09 213. (p. 191- 192) There are five key steps in segmenting and targeting markets, which link market needs of customers to the organization's marketing program. Using Figure 9-7, identify the five-step process in the proper order starting with step 1.
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  • Spring '11
  • AMY
  • Marketing, AACSB, Difficulty level

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