Niche and Mass Markets

Explain how a restaurant would take a SOMEWHAT personalized approach to their value proposition

Providing the customer with a set of ingredients and letting them choose the components of their meal. Like a hibachi grill, subway, Qdoba, buffet, etc.

True or false, the size of a company is the most important thing when concerning "size"

false, it is the match between the size of the company and the size of the market.

What are multi segmentation strategies?

when companies try to approach each segment of the market with different value propositions

Segmenting and offering different value propositions can be identified as:

A Market-Oriented Approach

What is segment specialization

A company focused on one single segment that is not as narrow as a niche one

what is macro segmentation

A company that divides the market in a few big segments. Their value proposition is different in each segment without being too specific

What are the advantages and disadvantages to having a standardized or a personalized value proposition?

Being standardized creates High efficiency, lower costs, commercial, production and communication synergies. However, not differentiating means asking customers who have different expectations to standardize themselves in order to be aligned with your value proposition. Being personalized results in High effectiveness, but diversifying means modifying the factors and so increasing the costs.

Give an example of a company that uses multi segmentation

Dannon the yogurt company. They offer many different brands for many different markets (Oikos, Activia, Silk, Horizon Organic, International Delight)

What is the approach that a company wants to have towards the market? List four components

Market size continuum Niche Market---Segment Specialization---Macro Segmentation---Mass Market

What are the two continuum between niche and mass markets?

Market size continuum & Value Proposition continuum

Is Starbucks Mass Marketing or Niche Marketing

Mass Market. when you go into a Starbucks restaurant, you can choose the combination of products that I want. You would be right, but the point is the format. Starbucks restaurants are a format of restaurants, and the format is always the same.

Is Subway Mass Marketing or Niche Marketing

Niche Market. Even though Subway is a big chain of fast food, they allow their customers to make their own sandwich. Subway allows consumers to choose different breads, different fillings, different dressings, by doing so, each single customer can get exactly the recipe he or she wants.

take the example of Baby food. Describe a Niche approach vs a Specialized Segment approach

Niche: A company that sells only "organic" baby food Specialized: Selling all kinds of baby food for different needs/preferences

Define and differentiate Niche markets and Mass markets

Niche: small and specific segment of the population. The customers have particular and high expectations, therefore the offerings should be sophisticated and customized so as to meet them. Mass: A company that approaches the market with one single value proposition that ignores differences between segments.

Explain how a restaurant would take a SOMEWHAT standardized approach to their value proposition

Offering an a la carte menu or regular menu with a list of dishes.

Give an example of how Pepsi made their product more personalized

Pepsi Spire is a revolutionary project because it lets consumers choose and mix the flavors they prefer. Before, in the soft drinks industry, the flavor can only be chosen by selecting the relative brand, such as Sprite for lemon, Fanta for orange, and so on. Pepsi Spire changed this mechanism.

Whats the difference between a baby food company using a specialized segment approach and Dannon using a multi segmentation approach?

The baby food company sells a variety of baby food products under the same brand name, while Dannon sells a variety of products under different brand names

Provide an example of macro segmentation

When McDonald's launched McCafé, wanting to target another segment with different occasions of usage, which is breakfast or breaks throughout the day. They have the traditional McDonald's restaurant and then the McCafé. These are two macro segments divided by the occasion of usage served with two different value propositions. (McCafe are basically small coffee-house style booths that can be found in public areas like airports or campuses. They mainly sell coffee and pastries)

Explain how a restaurant would take a COMPLETE personalized approach to their value proposition

When customers ask for the recipe they want to have. Obviously this is very uncommon in restaurants because if you pursue this strategy you should be able to have all the ingredients that can be combined to give customers all the potential recipes they like and they prefer.

Consider "Whole Foods" and "Sam's Club". Which is the niche and which is mass? Explain

Whole Foods is a niche market because it considers and targets specifically health conscious consumers. Sam's Club is a mass market because it does not cater to any specific market, and is more across the board

what is a brand portfolio

a collection of distinct brands operating under one larger corporate umbrella. (ex: Dannon)

give an example of specialized segmentation and why

a company specialized in baby food that focuses on the segment of being specialized in baby food while serving all the customers in that segment with all the needs they have, for Baby food depends on age and the specific preferences of the families.

Explain how a restaurant would take a COMPLETE standardized approach to their value proposition

a predefined tasting menu. it is a collection of several dishes in small portions, served by a restaurant as a single meal. here, all customers get the same meal, and do not choose what to order

What two things is value proposition continuum made up of? Describe them and identify which markets use them

standardization = One single proposition for the entire market. (Mass) personalization = each segment has a specific value proposition. (Niche)

What is Resource allocation

the assignment of available resources to various uses. it is a plan for using available resources to achieve goals for the future

In a A Market-Oriented Approach, companies often exploit

their brand portfolio, allocating each of the brands for a specific segment.

true or false, Every market can be segmented. Every company can segment in a different way. Every segment can have different size.

true

true or false, in an extreme case of personalization, every single CUSTOMER may also have their own value proposition

true

what is segmentation

when a company divides a market into sub-groups of consumers based on shared characteristics