Business Studies Course - Marketing
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Customer stages - Reading

Read this memo sent by a Verity executive about N.E. wear, and then answer the questions opposite.

Customer stages

Mack - here are the details of how we are getting on with developing the customer stages in the N.E. wear project.

Interest - We have attracted the interest of our target audience by being interested in the same things that they are. We have an advertising presence in outdoor events and extreme sports, and have run a series of commercials linking N.E. wear with adventure and sex, both things which are often on the minds of young adults. In short, our target buyers know we exist.

Prospects - We are cultivating those customers who are interested in buying our products by explaining to them what we offer that rival brands do not. These are - prestige - N.E. wear is determinedly top-of-the range. Quality - N.E. wear clothing is not just for poseurs. We have tried to make it the clothing of choice for outdoor professionals, such as mountain guides and ranchers. And though we never simply cut prices (bad for the image) we do offer freebies - like the T-shirts that come with the jeans.

Customers - We want the buying experience to be as friendly and as pleasant as possible. Our 'buyers' visit stockists of N.E. wear products, and try to make sure that the clothing is presented in a suitable environment, and that sales staff are friendly and knowledgeable. If they are not, we send a note to the company's head office explaining the nature of the problem. With WJ clothing, for example, we were forced to withdraw N.E. wear from the shelves, and set up our own boutique shops where rival clothing retailers were not available.

Repeat customers - Customers know that if they come to buy at a N.E. wear stockist while wearing one item of N.E. wear clothing, they can get 5% of any other item. The advantage of this is that it gets a lot of youngsters borrowing their friends' clothing to 'pull a fast one'. This means that a. they get the chance to try out NE wear, and b. they come into our outlets intending to buy.

Evangelists - This is the most valuable type of customer one can have - one who not only buys the product, but actively promotes it to his or her friends because they truly believe in its value. Customers are blasť about TV recommendations and advertisements, but they are suckers for the recommendation of someone they know who has tried the product and liked it. This is another reason why NE wear clothing is aimed at the type of people who end up as the leaders of whatever group they are in.

 

1. What is the probable reason for this memo being sent?
a. In response to a query.   
b. As part of a course.   
c. To give Mack some ideas.   
d. It is not possible to say.   

2. Which phrase best describes 'customer stages'?
a. Different types of customer.   
b. A developing relationship with a product.   
c. A marketing technique.   
d. Different types of advertising.   

3. How does N. E. wear interest prospective customers?
a. By advertising for young adults.   
b. By being sporty.   
c. By emphasizing adventure and sex.   
d. By identifying with them.   

4. What is the main selling point for prospective buyers?
a. N.E. wear is prestigious.   
b. N.E. wear is good quality.   
c. N.E. wear is genuine outdoor clothing.   
d. Outdoor professionals choose N.E. wear.   

5. Why is 'buyers' (para 3) in inverted commas?
a. Because buyers are important.   
b. It's a technical term.   
c. They are not real buyers.   
d. They work for WJ clothing.   

6. What is a 'repeat customer'?
a. Someone who gets a discount.   
b. Someone who buys quickly.   
c. Someone who intends to buy.   
d. Someone who buys more than once.   

7. Why is N. E. wear aimed at dominant personalities?
a. Their recommendation counts for more.   
b. They are better repeat customers.   
c. They are evangelists.   
d. They are suckers.   

8. Which statement is true?
a. WJ clothing owns boutiques.   
b. Evangelists are '5-star' customers.   
c. N.E. wear is not for poseurs.   
d. N.E. wear gives special offers to Evangelists.   

ANSWERS