Chapter 1 Flashcards
all customers differ ->
managing customer heterogeneity
all customers change ->
managing customer dynamics
all competitors react ->
maintaining sustainable competitive advantage
all resources are limited ->
managing resource trade-offs
first principles
foundational concepts or assumptions on which a theory, system, or method is based
Five elements crucial to marketing strategy
- Leads to a differential advantages over competitors
- Sustainability
- Ability to enhance firm performance
- Customer perspective
- Guides decisions and actions
What did strategy arise from?
military context
What determines a strategy’s success or failure?
customer
corporate strategy
overall scope and direction of a firm and the way in which its various business operations work together to achieve particular goals
marketing strategy
Decisions and actions focused on building a sustainable differential advantage, relative to competitors, in the minds of customers, to create value for stakeholders.
What is the focus of management?
company (not people)
Name three things both corporate and marketing strategies influence
human resources
operations
R&D
Revenue Equation
demand * market share * average selling price
Profit Equation
Revenue * Gross Margin - Sales & Marketing - G&A
Explain why Apple’s chain ratio is relevant to the course
launch of iPhone led to big smartphone market growth
Apple got a lout of the share while maintaining premium price
What industry commonly uses 1 to 1 marketing
tech
Why are firms starting to target smaller segments?
matches customer needs better
faster responses
technology
Inputs to Managing Heterogeneity Framework
segmentation
targeting
positioning
What do the inputs to managing heterogeneity tell you?
3 C’s: Customers, Company, Competitors
Why do customers change?
shift in needs
trigger events
changes in market/industry
3 conditions of SCAs
- Customers care
- Company does it better than competitors
- Hard to duplicate
Sources of SCAs
- building brands and relationships
- innovative offerings
