1.3 Designing a Customer Value-Driven Marketing Strategy and Plan Flashcards
At what point can marketing management design a customer value-driven marketing strategy?
Once it fully understands consumers and the marketplace, marketing management can design a customer value-driven marketing strategy.
Definition of Marketing Management
Marketing management: The art and science of choosing target markets and building profitable relationships with them.
What is the aim of the marketing manager?
The marketing manager’s aim is to engage, keep, and grow target customers by creating, delivering, and communicating superior customer value.
To design a winning marketing strategy, the marketing manager must answer two important questions.
What are they?
What customers will we serve (what’s our target market)?
How can we serve these customers best (what’s our value proposition)?
The company must first decide whom it will serve.
How does it do this?
It does this by dividing the market into segments of Customers (market segmentation) and selecting which segments it will go after (target marketing)
Some people think of marketing management as finding as many customers as possible and increasing demand.
Why is this line of thinking incorrect?
Marketing managers know that they cannot serve all customers in every way. By trying to serve all customers, they may not serve any customers well.
After deciding which customers they wish to taget, what must a marketing manager decide on?
Ultimately, marketing managers must decide which customers they want to target and decide onthe
Level
Timing
Nature
of customer demand.
How can we simply put the segments of marketing management?
Simply put, marketing management is customer management and demand management.
What must we think of when deciding how to serve targeted customers?
The company must also decide how it will serve targeted customers—how it will differentiate and position itself in the marketplace
What is a brand’s value proposition?
What are some examples?
A brand’s value proposition is the set of benefits or values it promises to deliver to consumers to satisfy their needs.
WestJet promises to “Act like an owner” and “Care from the heart.”
By contrast, British Columbia-based Flair Airlines gives you “Canada’s ticket to ultra low airfares.”
Homewood Suites by Hilton wants you to “Make yourself at home.”
What are the intended goals when creating a value proposition?
Such value propositions differentiate one brand from another. They answer the customer’s question:
“Why should I buy your brand rather than a competitor’s?”
Companies must design strong value propositions that give them the greatest advantage in their target markets.
What are 5 different marketing philosophies in which an organization can design and carry out marketing stratigies?
There are five alternative concepts under which organizations design and carry out their marketing strategies:
Production
Product
Selling
Marketing
Societal
concepts.
What is the Production concept?
Production concept: The idea that consumers will favour products that are available and highly affordable; therefore, the organization should focus on improving production and distribution efficiency.
What are the risks of The Production Concept?
The production concept can lead to marketing myopia.
Companies adopting this orientation run a major risk of focusing too narrowly on their own operations and losing sight of the real objective—satisfying customer needs and building customer relationships.
What is the Product Concept?
Product concept: The idea that consumers will favour products that offer the most quality, performance, and features; therefore, the organization should devote its energy to making continuous product improvements.