Chapter 1 Simulation: What is Marketing?

Choosing a Value Proposition Now that the target market has been chosen, it is time to choose the value proposition to suit those target customers. Choose the best value proposition for your target market.

YOU CHOSE OPTION 2 "Grand Champion—good food for the right price." You selected "Grand Champion—the good food for the right price." This was the best value proposition given your target market.

Customer Relationship Management In order to increase Grand Champion sales, Holden Evan must create strong customer relationships. Your team has come up with three ideas, and you must choose the best one for your target market.

YOU CHOSE OPTION 2 Create a web site with dog health information and a place for customers to post pictures of their dogs. You decided to create a web site with dog health information and a place for consumers to post pictures of their dogs. This was a very good choice for appealing to your target market.

Targeting Customers Your next task is to decide on the appropriate target market for Grand Champion.

YOU CHOSE OPTION 2 Expand the target market to all customers interested in a quality dog food. You chose to expand the target market to all customers interested in a quality dog food. This was the best choice, since the product had been reformulated in a way that would appeal to this entire market.

Shifting Customer Needs and Wants How are the needs and wants of Grand Champion customers changing?

YOU CHOSE OPTION 2 The customers' want to feed their dogs superior food conflicts with a need to save money. You indicated that the customers' want to feed their dogs superior food conflicts with a need to save money. This was the best choice.

Capturing Value from Customers Your final task for Grand Champion is to recommend a strategy for capturing value from customers.

YOU CHOSE OPTION 3 Delight "true friends" by putting their dogs' picture on the Grand Champion can after they have bought a thousand cans. You recommended that Holden Evan delight "true friends" by putting their dogs' pictures on cans of Grand Champion. This was the best choice. Your strategy would stand a good chance of keeping these valuable customers repurchasing Grand Champion.

Choosing a Marketing Management Orientation Now that you have heard the advice of your marketing analysts, you must choose a marketing management orientation for Grand Champion brand. Review the information you've received and choose from the options at right.

YOU CHOSE OPTION 3 Make marketing decisions that maximize the welfare of customers and of society as a whole. You selected the societal marketing concept. This was a good choice because it considers our customers' needs and wants, as well as what is best for society.

Brand Experience The Vice President of Marketing continues: "We've become concerned that our brand is suffering from marketing myopia. We've focused in the past on making Grand Champion more and more elaborate. But in response to current trends, we've now eliminated some organic grade A beef and some antioxidants from the food to make it less expensive. It's still excellent nutrition for dogs. We need to decide what brand experience we should promote for our customers now." You return to your office to consider. Choose the best brand experience.

YOU CHOSE OPTION 3 The sense of feeding one's dog an affordable quality food. You chose the sense of feeding one's dogs an affordable quality food. This was the best choice, and was consistent with the product design.

Partner Relationship Management You decide to work with your partners to improve Grand Champion sales. Based on your marketing management orientation and your target market, what actions would you ask your partners to perform?

YOU CHOSE OPTION 3 You ask the production department at Holden Evan to package Grand Champion in jars that can be returned for a refund and reused. You decided to ask the production department at Holden Evan to package Grand Champion in jars that could be returned for a rebate. This was a good choice for the marketing management orientation you chose, since it would benefit society as a whole, not just Grand Champion customers.