1ZM11 - Marketing & innovation Flashcards
endownment effect
People overvalue goods in their possesion over those they do not posses
(lose mug for โฌ9 vs. buy a mug for โฌ3)
Status quo bias
People are unlikely to give up current things / habits
the effect grows stronger over time
gains of new product have to far outweigh the loss of the old product
9x effect
consumers overvalue existing products times 3, whereas producers overvalue new features by 3 times. Thus creating a 9x mismatch between what customers want vs. what companies think customers want
CVOMIS
Customer Value Oriented Marketing Innovation System
- learn about customer determined performance outcomes of value delivery
- the causes of that performance
- provide both short & long term insights + patterns of change
3 methods for understanding customer value
๐๐ฎ๐ฌ๐ญ๐จ๐ฆ๐๐ซ ๐ง๐๐๐๐ฌ ๐ซ๐๐ฌ๐๐๐ซ๐๐ก (lead user analysis, co-creation)
๐๐ซ๐๐๐-๐จ๐๐ ๐๐ง๐๐ฅ๐ฒ๐ฌ๐ข๐ฌ (conjoint analysis)
๐๐๐๐ง๐ฌ-๐๐ง๐ ๐๐ก๐๐ข๐ง (laddering, keep asking why which benefits sought)
what 4 types of innovation exist according to Gourville (2006)
- Degree of behaviour change required: High - Low
- Degree of product change: High - Low
Easy sells ( 1 Low, 2 Low) Smash hits (1 Low, 2 High) Sure failures (1 High, 2 Low) Long hauls (1 High, 2 High)
marketing excellence
A type of firm strategy focused on achieving organic growth by executing the marketing ecosystem priority, end user priority & marketing agile priority
Focus on growth trough differentiation, ME is an environment-shaping concept
Marketing ecosystem priority
A firmโs strategic means of growing the business by developing mutually beneficial systems of networks. Via;
- Building ecosystems in proximal & distal networks
- Fostering integrated ecosystems
An important part are โhubsโ
End-user priority
A firmโs strategic emphasis on ๐๐ง๐ ๐๐ ๐ข๐ง๐ with the final customer and leveraging the final customer insights for ๐ ๐ซ๐จ๐ฐ๐ข๐ง๐ the business
Marketing agile priority
A firmโs strategic means for executing growth activities by the marketing organization and its members trough simplified structures & processes, fast decision making + trail&error learning
What are KIMโs ?
Knowledge integration mechanisms=
Formal processes & structures to capture, analyse and utilize knowledge
(documentation, meetings, reviews, reflection etc)
What 4 dimensions does market knowledge consist of?
๐๐ซ๐๐๐๐ญ๐ก= firm's understanding of a wide range of diverse customers & competitor types and factors that describe them ๐๐๐ฉ๐ญ๐ก= level of sophistication & complexity of a firm's knowledge on customers & competitors ๐๐๐๐ข๐ญ๐ง๐๐ฌ๐ฌ= extent to which market knowledge is difficult to codify & communicate ๐๐ฉ๐๐๐ข๐๐ข๐๐ข๐ญ๐ฒ= extent to which firm's knowledge is tailored to the requirements of specific contexts in which it is maximally effective but loses its value in other contexts
What 2 dimensions do sales & marketing differ in?
๐๐ซ๐ข๐๐ง๐ญ๐๐ญ๐ข๐จ๐ง= sales is more operational & short-term, marketing more strategic & longer term ๐๐จ๐ฆ๐ฉ๐๐ญ๐๐ง๐๐= sales has higher levels of market-specific knowledge which is relevant for other departments to do NPD well.
What are โemergingโ & โmatureโ markets according to Rosa (2005)
๐๐ฆ๐๐ซ๐ ๐ข๐ง๐ : Markets in which consumers face new product concepts that do not fit into existing product categories
๐๐๐ญ๐ฎ๐ซ๐: markets in which product categories are stable & well defined
which 3 types of storytellers are needed for diffusion & acceptance of an innovation
๐๐จ๐ง๐ง๐๐๐ญ๐จ๐ซ๐ฌ; share stories that link various heterogeneous groups of people
๐๐๐ฏ๐๐ง๐ฌ; information brokers who share detailed stories about product attributes & uses
๐๐๐ฅ๐๐ฌ๐ฉ๐๐จ๐ฉ๐ฅ๐; tell stories that move others to action
What is โisomorphismโ & which 3 kinds of processes exist in organizations to adopt practices?
Organizations in the same environment will adopt similar practices, becoming isomorphic over time. They do this because of conformity and legitimacy motives
Coercive isomorphism
Mimetic isomorphism
Normative isomorphism
what are the 5 innovation charachteristics (rogers)
Relative advantage Compatability Complexity Trailability Observability
Which 3 types of conjoint analysis exist?
๐๐๐ - ๐๐จ๐ง๐ฃ๐จ๐ข๐ง๐ญ ๐๐๐ฅ๐ฎ๐ ๐๐ง๐๐ฅ๐ฒ๐ฌ๐ข๐ฌ
๐๐๐ - ๐๐๐๐ฉ๐ญ๐ข๐ฏ๐ ๐๐จ๐ง๐ฃ๐จ๐ข๐ง๐ญ ๐๐ง๐๐ฅ๐ฒ๐ฌ๐ข๐ฌ
๐๐๐ - ๐๐ก๐จ๐ข๐๐ ๐๐๐ฌ๐๐ ๐๐จ๐ง๐ฃ๐จ๐ข๐ง๐ญ
Customer value
A customerโs perceived preference for & ๐๐ฏ๐๐ฅ๐ฎ๐๐ญ๐ข๐จ๐ง of those product ๐๐ญ๐ญ๐ซ๐ข๐๐ฎ๐ญ๐๐ฌ, ๐๐ญ๐ญ๐ซ๐ข๐๐ฎ๐ญ๐ ๐ฉ๐๐ซ๐๐จ๐ซ๐ฆ๐๐ง๐๐๐ฌ and ๐๐จ๐ง๐ฌ๐๐ช๐ฎ๐๐ง๐๐๐ฌ arising from use that facilitate or block achieving the customerโs ๐ ๐จ๐๐ฅ๐ฌ and purposes in use situations
what is the difference between the ๐ฉ๐ซ๐จ๐๐ฎ๐๐๐ซ ๐๐ง๐๐๐ญ๐ฆ๐๐ง๐ญ ๐๐ฒ๐๐ฅ๐ & the ๐๐จ๐ง๐ฌ๐ฎ๐ฆ๐๐ซ ๐๐ง๐๐๐ญ๐ฆ๐๐ง๐ญ ๐๐ฒ๐๐ฅ๐?
the ๐๐จ๐ง๐ฌ๐ฎ๐ฆ๐๐ซ ๐๐ง๐๐๐ญ๐ฆ๐๐ง๐ญ ๐๐ฒ๐๐ฅ๐ describes how consumerโs product categories are formed and behaviours develop, whereass the ๐ฉ๐ซ๐จ๐๐ฎ๐๐๐ซ ๐๐ง๐๐๐ญ๐ฆ๐๐ง๐ญ ๐๐ฒ๐๐ฅ๐ describes how producerโs product categories are formed and behaviours develop
everything is focused on generating a joint meaning of a product (use NGT to discover hierarchies)
what are 3 sources of network effects?
๐๐ข๐ซ๐๐๐ญ ๐๐๐๐๐๐ญ๐ฌ
๐ข๐ง๐๐ข๐ซ๐๐๐ญ ๐๐๐๐๐๐ญ๐ฌ
๐ฌ๐ญ๐๐ง๐๐๐ซ๐๐ข๐ณ๐๐ญ๐ข๐จ๐ง
what is the difference between a waterfall & sprinkler strategy?
waterfall= stepwise introduction sprinkler= direct & full-fledged introduction
what are 3 rules for conjoint analysis?
- donโt include too many levels for attributes
- balance levels of attributes (number of levels effect)
- make sure levels can combine to possible combinations
network effects products
the value of a product to itโs users increases as more people use the same good
What is the AIDA model?
The AIDA model is used for modelling adoption & communication processes, it stands for;
๐๐ญ๐ญ๐๐ง๐ญ๐ข๐จ๐ง
๐๐ง๐ญ๐๐ซ๐๐ฌ๐ญ
๐๐๐ฌ๐ข๐ซ๐
๐๐๐ญ๐ข๐จ๐ง
for radically new products there first is an education stage
What is Accessability-Diagnosticity theory?
The likelihood that a piece of information is used depends on its;
๐๐๐๐๐ฌ๐๐๐ข๐ฅ๐ข๐ญ๐ฒ= itโs salience & accessibility of related information in the mind
๐๐ข๐๐ ๐ง๐จ๐ฌ๐ญ๐ข๐๐ข๐ญ๐ฒ= itโs usefulness for judgement
High AD info is used more
What are the four stages of customer loyalty (oliver 1999)
๐๐จ๐ ๐ง๐ข๐ญ๐ข๐ฏ๐ ๐ฅ๐จ๐ฒ๐๐ฅ๐ญ๐ฒ= based on costs & benefits
๐๐๐๐๐๐ญ๐ข๐ฏ๐ ๐ฅ๐จ๐ฒ๐๐ฅ๐ญ๐ฒ= based on satisfactory experiences
๐๐จ๐ง๐๐ญ๐ข๐ฏ๐ ๐ฅ๐จ๐ฒ๐๐ฅ๐ญ๐ฒ= based on habits (intention to rebuy)
๐๐๐ญ๐ข๐จ๐ง ๐ฅ๐จ๐ฒ๐๐ฅ๐ญ๐ฒ= commitment to act, despite obstacles
what is Customer Lifetime Value (CLV)? what are limitations to itโs measurements
๐๐๐=the net profit contributed to the whole future relationship with 1 customer
- leaving customers are gone for good
- infinite time horizon
- competitor effects not taken into account
Customer equity
The combined CLV of all customers of a firm.
what is ๐ฏ๐๐ฅ๐ฎ๐ ๐๐๐ฌ๐๐ ๐ฌ๐๐ฅ๐ฅ๐ข๐ง๐ โand how does it contribute to selling performance?
๐ฏ๐๐ฅ๐ฎ๐ ๐๐๐ฌ๐๐ ๐ฌ๐๐ฅ๐ฅ๐ข๐ง๐ = salespersonโs effort to advance customer value together with the customer by contributing to the customerโs business profitability
value creation via;
- innovate effective offerings
- assist in applying the offering effectively
- match buyer & sellerโs processes for better results
draw; ๐ฆ๐๐ซ๐ค๐๐ญ๐ข๐ง๐ ๐๐๐ฉ๐๐ซ๐ญ๐ฆ๐๐ง๐ญ ๐ข๐ง๐๐ฅ๐ฎ๐๐ง๐๐ model
zie schrift
draw; ๐๐ง๐จ๐ฐ๐ฅ๐๐๐ ๐ ๐๐ง๐ญ๐๐ ๐ซ๐๐ญ๐ข๐จ๐ง ๐๐๐๐ก๐๐ง๐ข๐ฌ๐ฆ๐ฌ (๐๐๐) model
zie schrift
draw; ๐ฌ๐๐ฅ๐๐ฌ, ๐&๐, ๐ฆ๐๐ซ๐ค๐๐ญ๐ข๐ง๐ ๐๐จ๐ฅ๐ฅ๐๐๐จ๐ซ๐๐ญ๐ข๐จ๐ง ๐ข๐ง ๐๐๐ model
zie schrift
draw; ๐๐๐จ๐ฉ๐ญ๐ข๐จ๐ง ๐ฉ๐ซ๐จ๐๐๐ฌ๐ฌ model
zie schrift
draw; ๐๐๐ & ๐๐๐ model
zie schrift
describe: ๐๐ฎ๐ฌ๐ญ๐จ๐ฆ๐๐ซ ๐ข๐ง๐ฏ๐จ๐ฅ๐ฏ๐๐ฆ๐๐ง๐ญ (๐ฅ๐๐๐ญ๐ฎ๐ซ๐)
zie schrift
draw: ๐ง๐๐ญ๐ฐ๐จ๐ซ๐ค ๐ฉ๐ซ๐จ๐๐ฎ๐๐ญ๐ฌ model
zie schrift
describe: ๐ฌ๐๐ฅ๐ฅ๐ข๐ง๐ ๐ซ๐๐๐ข๐๐๐ฅ ๐ข๐ง๐ง๐จ๐ฏ๐๐ญ๐ข๐จ๐ง๐ฌ & ๐ฌ๐ข๐ ๐ง๐๐ฅ๐ฅ๐ข๐ง๐ model
zie schrift
describe; ๐ฅ๐ข๐ง๐ ๐๐ฑ๐ญ๐๐ง๐ฌ๐ข๐จ๐ง๐ฌ model
zie schrift
draw: ๐๐จ๐ง๐ฌ๐ฎ๐ฆ๐๐ซ ๐ซ๐๐ฅ๐๐ญ๐ข๐จ๐ง๐ฌ๐ก๐ข๐ฉ๐ฌ (behavioral loyalty) model
zie schrift
describe: ๐ฆ๐ข๐ฆ๐๐ญ๐ข๐ ๐ฆ๐จ๐ญ๐ข๐ฏ๐๐ฌ model
zie schrift
draw: ๐ฏ๐๐ฅ๐ฎ๐ ๐๐๐ฌ๐๐ ๐ฌ๐๐ฅ๐ฅ๐ข๐ง๐ (๐๐๐) model
zie schrift
describe: ๐ฌ๐๐ซ๐ฏ๐ข๐ญ๐ข๐ณ๐๐ญ๐ข๐จ๐ง model
zie schrift
Which 2 perspectives on Market orientation exist?
Cultural; MO firms contiously & systematticaly focus on creating superior customer value
Behavioural; organization wide generation of market intelligence, sharing that info and responding to it
draw; Abell matrix
(alternative)Technologies (hybrid, diesel, electric) Customer segments (salespeople, housewives) Customer benefits (comfort, status)
