3Cs

Question 1

What is a functional/utilitarian need?

Answer 1

Quality
Reliability
Low price
Convenience
Durability
Service
Efficiency

Question 2

What is a symbolic/emotional need?

Answer 2

Sense of achievement
Being cool
Sense of belonging
Sense of Freedom
Feeling patriotic
Feeling Special
Being part of something

Question 3

What is Customer Value

Answer 3

Perceived Benefits - Perceived Sacrifice

Question 4

Benefits can be…

Answer 4

tangible and intangible

Question 5

Example of intangible benefits is…

Answer 5

The ambiance at Starbucks

Question 6

Why can marketing could go wrong?

Answer 6

Attending to wrong type of market research
Focusing on internal capabilities, not consumer needs
Overpromising (and reducing perceived quality)
Diluting the brand

Question 7

What do people tend to do?

Answer 7

They tend to choose the default option.

Question 8

What is consumer behavior?

Answer 8

the study of the process involved when consumes select, purchase, use and dispose of products services, ideas and experiences.

Question 9

“Everything starts with…

Answer 9

the customer.”

Question 10

What did Steve Jobs say?

Answer 10

We need to make happy the consumers not the engineers

Question 11

What gives value to object?

Answer 11

Functional value, economic value, experiential value, social value.

Question 12

Diamond and water paradox was invented by?

Answer 12

Adam Smith

Question 13

Water great functional value but that is it. Whereas diamonds…

Answer 13

Economic value (hard to get one) + Experiential value (signaling their success) + Social value (belonging to a group)

Question 14

What are the steps of consumer decision process?

Answer 14

Need recognition
Information Research
Evaluation & Choice/Purchase
Post-choice evaluation

Question 15

How do consumers come to recognize a need?

Answer 15

Deprivation
Context
Memory based (recall, associate a brand w/ something)
Stimulus based (Attention grabbers)
Product
Direct highlighting

Question 16

How does the consumer process competitive brand information and make a final value judgment?

Answer 16

Traditional multi-attribute model

Question 17

How could you influence preference for your brand/product?

Answer 17

Change consumer beliefs about our attributes, either by redesigning or by changing perceptions
Change consumer beliefs about competitors attributes.
Change consumers’ importance weights (encourage consumers to attach more importance to the attributes our brand excels in).
Call attention to neglected attributes, or shift the buyer’s ideals.

Question 18

Compromise Effect

Answer 18

3 prices, one low, one medium high, one very high

Question 19

Post-choice evaluation

Answer 19

2 loops, one big to first attract your customer
one small to create loyalty

Question 20

Consumer behavior takeaways

Answer 20

Understanding our consumers is a key aspect of developing a good marketing strategy and effective marketing plan.
Consumer decision process involves several steps.
But they play out differently for different products and for different groups of customers (not always as neat as described).
Consumers are not an island.

Question 21

Take-Home Message Customer

Answer 21

Loss of consumers’ connection with the brand (downstream competitive advantage) would be WORSE than the loss of ALL upstream assets (upstream competitive advantage)
Everyone knows how to make and move stuff. People don’t know so much how to occupy this type of place in people’s lives and minds

Question 22

3 criteria of Core competencies

Answer 22

Something a company does really well
Provides customers with major benefits
Not totally copiable

Question 23

Core competencies formal definition:

Answer 23

Core competencies are the collective abilities and knowledge base in the organization. Particularly how to create customer relationship, deliver value, and communicate.

Question 24

Obstacles to CC

Answer 24

Strategic Business Units (SBUs) lead to:
Underinvesting in CC
Imprisoned resources
Bounded innovation

Question 25

How to detect CC?

Answer 25

SWOT analysis

Question 26

Criteria for core competencies:

Answer 26

Provides potential access to a wide variety of markets/can be reused widely for many products and markets
Makes a substantial contribution to the perceived customer benefits of the end product
Difficult for competitors to imitate/replicate
Reside downstream, in the marketplace (e.g., linkages with customers, channel partners, etc.)

Question 27

Why market leaders underestimate threats?

Answer 27

Misunderstand challenger’s strategy
Strategy versus tactics

Question 28

Why Market leaders wait?

Answer 28

Firms rationalize not having competitors because:
It’s uncomfortable
It causes stress
Too busy with daily issues
Arrogance!

Question 29

What happen when market leaders wait

Answer 29

That leads to under-reaction

Question 30

Identifying competitors?

Answer 30

Think about
Narrow & Broad potential competitors
Now & Later
You can CHOOSE your competitive set (via positioning, distribution and pricing)
You have more say about who are your competitors if you are a late entrant (e.g., Honda and Harley)

Question 31

Competitive Intelligence

Answer 31

More information on competitors:
Published documents (Annual Reports, SEC filings,…)
Stock Market
Internet (Websites from clients about where do they get their stuff)
CEO/CFO/VP Interviews

Question 32

Deciding on a Competitive Strategy

Answer 32

Think customer value: benefits and costs
Think Segments
Thus, linked to targeting:
Integrate STP

Question 33

Marketing Analysis (3C) Wrap-Up

Answer 33

Market Analysis should always include all three:
What benefits are different segments of consumers looking for?
Do I have the resources that allow me to provide those benefits?
Can I provide those benefits better than the competition?
Market Analysis is quite USELESS if you leave out 1 of the 3.
The STP process brings all three Cs together from a customer perspective
BUT you still HAVE TO LOOK at underlying strengths and weaknesses of the company and competition that allow them to provide benefits, now & in the future, narrow and broadly!!