1. Rica Mae Dondonay MM 3-1
1. Why should service firms focus their efforts?
- Successful companies are those that focus their efforts strategically. Strategy
is like a path that leads a company through the forest of possibilities and
success by satisfying customers’ needs better that the competitors do. Being
a strategic leader is also being able to make sure that your company is going
along the path in the correct direction. “To be able to identify the right strategy
and pursue it to the desired result, one needs to master two important
functions: strategic thinking and strategic planning”.
2. Why is market segmentation important to service firms?
- Marketing may be based on broad markets or small sub-segments. Mass
marketing is the process or strategy to use the same marketing channels for
all consumers without identifying the needs of a specific group of people.
Mass marketing strategy employs mass promotion, mass production and
mass distribution in the same way for mass consumers. In the past,
companies have used mass marketing to achieve the economies of scale.
However, times have changed, and it is almost impossible to create products
to appeal to the entire market. Pursuing this strategy, several companies
have lost their market leadership or a considerable chunk of their market
share. An example would be Ford Motors when they offered T Model to all
buyers "in any color as long as it is black." This is why there is a need of
market strategy based on specific groups of customers as buyers’ needs are
different; they cannot be satisfied the same way. The division of markets into
various sub groups on the basis of several variables will more closely match
particular needs of a particular group of consumers.
3. How do you identify and select target market segments
 Analyze the features of your products and services. Determine the
benefits that your customers get from your products and how your
products fill the needs of those customers.

2.  Look at the types of customers who are likely to purchase your products
and use your services. Consider things such as age, gender, income level,
marital status, occupation, educational level, gender and ethnic
background. Identify which customer categories have the greatest need
for your products.
 Consider the personal characteristics of your potential customers and
determine how the customer lifestyle affects a need for your products.
Think about the customer interests, values and personality traits. Consider
how and when your customer will use your services, as well as the
features that appeal to the customer.
 Look at your competition target market. Analyze the needs that your
competition fills for their target market. Identify the areas of the market that
have been overlooked by the competition. Seek to fill the void within the
market, rather than targeting the same market as your competition.
 Take a look at your current customer base, if your business is already
operating. Identify the products or services that interest your current
customers and determine what benefits these customers get from those
services.
 Compile all of your research findings. Use your findings to determine
which types of customers have the most need for your services. Keep the
market well-balanced so that your target market is not too big or too small.
4. What is the distinction between important and determinant attribute in consumer
purchase decision?
- Determinant attributes in marketing are those aspects about products and
services that determine why consumers buy products. These attributes may
vary among different types of products, depending on which industry a small
company is in. However, most determinant attributes usually fall under
specific categories, such as quality and service. All determinant attributes are
measurable within an organization. Small-business owners then use these
data to make business decisions and develop marketing strategies.

3. 5. Determinant attributes are important because consumers use them to determine
from which competitor they make a purchase. For example, value-conscious
consumers may choose to buy clothes from a small retailer because of its low
prices. Essentially, price is the most important determinant attribute for these
consumers. Those with more disposable income may still buy from the small
retailer because it offers stylish clothes at lower prices. Consumers have certain
needs when they buy products. They could conceivably buy products from four or
five vendors. However, they usually evaluate determinant attributes that are most
important for a particular buying decision, whether it’s one or three attributes. The
competitor that best meets their needs usually gets their business. Customers
also perceive determinant attributes as core benefits Important to the authenticity
and reliability of any scientific finding is how it is studiedHow are service levels of
determinant attributes related to positioning services?