Final Project

Answer

1.Who do you suppose is the ideal customer segment to target for donations to (and why): (a) American Cancer Society? (b) Your university? (c) World Relief Fund?

The best customers to target for any donation are those who feel the need to give back to the organization after directly or indirectly benefiting from an organization. Therefore, the concept of the norm of reciprocity plays an integral role in determining the type of response one will get from a donation drive. Targeting those who have benefited or currently benefiting from an organization's actions in a donation drive results in positive outcomes.

1. American Cancer Society

The best customers to target to make donations to the American cancer society are those who have directly or indirectly benefited from the action of the organization.  They include people who suffered from and won the battle against cancer.  Those who know or are related to patients who are suffering from cancer, have recovered from cancer, or have died from cancer. The relationship with those with a history of cancer makes them feel the need to give back through donations so that the American Cancer Society continues its good work to help other cancer patients just like it helped them.

1. The university

 The following are the best customers to target to make donations for the university. First, the current and former students. Having learned at the institution, the lessons, experience, and memories made at the institution will make them feel the need to reciprocate and therefore make a donation. Secondly, parents of the former and current students, coupled with the former and current faculty members.  The second group also has a direct or indirect connection with the institution, and in appreciation for what it did to them or those they are related to, will feel the need to give back.

1. World Relief Fund

The best customers to target for donations are people who have been donating to the organization. Secondly, it should target individuals, such as refugees who have become successful and were helped by the institution in the past. The norm of reciprocity will make them feel the need to donate to enable the organization to assist other people as it assisted them.

2. Say you’ve got a friend who is an entrepreneur. She’s making the best software, wine, or whatever, that the world has ever seen. She is certain that everyone will like her new product, so she thinks your idea about segmentation is not necessary. How can you convince her and help her with her business?

I will convince her that the needs of customers are dynamic and keep changing. The fact that all the customers in the market like her product today does not mean that their taste and preference will not change.  It is because of such changes that make it imperative to adopt the concept of market segmentation. Through segmentation, she will be able to focus on a single segment of the market. Zeroing in on a single market segment will increase her understanding of the segment and, therefore, increase her ability to tailor the product to meet the customers' exact needs. Therefore, making her aware of the ability of segmentation to increase her products ability to meet her customers' exact needs will and therefore guarantee her competitive advantage will change her mind and make her appreciate the necessity of segmentation.

3. Find a company that is struggling. Where is it in the? Could the company be more successful if it changed any of its Ps in the positioning matrix.

Under Armour is a struggling company in the apparel industry. The company's products are positioned in the prestige segment of the position matrix. The company's products are highly marketed; they are highly-priced, and they are also widely distributed. Furthermore, its products are considered to be of high quality in the market. However, despite all the features that the company has leveraged to position itself in the market, its products are struggling, resulting in low sales compared to its competitors such as Nike.  To change its fortunes, the company should change its pricing. It should lower the prices it charges for its products to increase the number of customers, thus increasing its market share and changing its performance in the market.
4. When you get your hair cut, what’s the “core” of what you buy vs. what are the “value-addeds” in the purchase? What’s a consultant’s core vs. value-added?
 When I get a haircut, the core of the purchase in the main service I paid for, which is the haircut. It is the main service requested. While receiving the haircut, other services provided in order to facilitate the process are the value-added.  For the haircut, service such as the barber's slight neck massage after the haircut is a value added.   For a consultant, the core product is the service purchased.  The value added is the advice and the recommendations offered by the consultant to the client. For instance, if a consultant is hired to determine the problems facing a company, the identification of the problems is the core service; however, the recommendations offered by the consultant on how they can solve the identified problem is the value added.
5. What value accrues to customers who purchase the Method brand of household cleaning products? What value accrues to Method itself?

When a customer purchases the Method brand of household cleaning, the following value accrues to them from the purchase; first, they get value for money by not only getting a product that will do the job they intend it to do but will also not pollute the environment. They will therefore get an effective but also environmentally friendly product. Method will accrue the following value increased brand loyalty from the customer. Customer loyalty will result in repeat sales. Additionally, the customer will also be on the constant lookout for other products from the same brand. Additionally, Method will get the value of an improved brand image.
6. Identify and discuss the three kinds of test markets used in beta-testing.

Standard test markets: Standard test markets are a normal market that, in all aspects, mirrors the national market. The main difference between the standard test market and the national market is the scope since it is conducted in a few cities in the nation. During testing, the marketers engage in all the processes such as advertising and formulation of marketing strategies as they test the reception of the product in the market.

Controlled test markets: in a controlled test market, a company selects a few stores in its target market to carry its products and offers them a fee for the service. However, the company dictates the positioning of the product on the stores' shelves and monitors how customers respond to the product.

Simulated test markets: These are laboratory tests that are not conducted in the real world. They are conducted in an artificial market place where the marketers expose the subjects to advertising and determine their reception of the message and determine their intent to purchase the product.

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