1. Describe the interrelationship between consumer research, market segmentation and targeting, and the development of the marketing mix for the manufacturer of HDTV sets.
Consumer research describes the process and tools used to study consumer behavior. Broadly speaking, there are two theoretical perspectives that guide the development of consumer research methodology: the positivist approach (objective and empirical causal research) and the interpretivist approach (qualitative and based on small samples).
The focus of the marketing concept is consumer needs. Three elements for creating a strategic framework for discovering and analyzing those needs are ...view middle of the document...
2. Describe the interrelationship between consumer behavior as an academic discipline and the marketing concept.
The term consumer behavior refers to the behavior that consumers display in searching for, purchasing, using, evaluating and disposing of products and services that they expect will satisfy their needs. The study of consumer behavior is the study of how individuals make consumption-related decisions. The key assumption underlying the marketing concept is that a company must determine the needs and wants of specific target markets, and deliver the desired satisfaction better than the competition. The marketing concept is based on the premise that a marketer should make what they can sell, instead of trying to sell what they have made. Thus, a company which adopts the marketing concept must continuously research and monitor its customers’ and potential clients’ needs and consumption-related behavior in order to develop, effectively promote, and deliver products and services which satisfy clients needs better than the competition.
3. Discuss the interrelationships among customer expectations and satisfaction, perceived value, and customer retention. Why is customer retention essential?
Perceived value is relative and subjective while customer satisfaction is the individual’s perception of the performance of the product or service in relation to his or her expectation. The concept of customer satisfaction is a function of customer expectations. Customers whose experiences match expectations will be satisfied and customers whose expectations are exceeded will be very satisfied or delighted.
The overall objective of providing value to customers continuously and more effectively than to competition is to have and to retain highly satisfied customers. This is called customer retention. The purpose of customer retention is to make it the best interest of customers to stay with the company rather than switch to another firm. The reason that customer retention is essential is that in almost all business situations, it is more expensive to win new customers than to keep existing ones.
1. What is market segmentation? How is the practice of market segmentation related to the marketing concept?
Market segmentation is the process of dividing a potential market into distinct subsets of consumers with common needs or characteristics and selecting one or more segments to target with a distinct marketing mix. Before the widespread adoption of the marketing concept, most companies practiced mass marketing, that is, offering the same product and marketing mix to all consumers. The marketing concept states that a company must determine the needs and wants of specific market segments and satisfy them better than competition. Thus, companies who adopt the marketing concept must segment their markets and develop products or services targeting different consumer groups. For example, Marriott...