Question

Kraft targeted its cream cheese flavors to match the tastes of a store's customers using off-line analysis of POS (point-of-sale) data. This is an example of ______.

A) Yield management
B) Expert systems
C) Data envelopment analysis
D) Micromarketing

Answer 1

Kraft's cream cheese flavor targeting based on offline POS data analysis exemplifies a tailored marketing approach to meet specific customer preferences. Thus the correct option is D,

Step-by-step explanation:

Micromarketing involves tailoring products or marketing strategies to meet the specific needs of a small, targeted group of customers. In this case, Kraft used offline analysis of POS data to understand the preferences of a store's customers and adjusted its cream cheese flavors accordingly. This approach allows Kraft to customize its offerings to match the unique tastes of each store's clientele, enhancing customer satisfaction and potentially increasing sales.

By analyzing point-of-sale data, Kraft gains valuable insights into purchasing patterns, popular flavors, and customer preferences at a granular level. This data-driven strategy enables the company to make informed decisions about product development and marketing, optimizing its offerings for specific markets. For example, if the analysis reveals a higher demand for certain flavors in a particular store, Kraft can prioritize those flavors in its product lineup for that location.

Micromarketing, as demonstrated by Kraft, goes beyond broad market segmentation and considers individual store-level nuances. This targeted approach can lead to increased customer loyalty and a stronger competitive advantage in the marketplace.