Chapter 1

Question 1

all customers differ ->

Answer 1

managing customer heterogeneity

Question 2

all customers change ->

Answer 2

managing customer dynamics

Question 3

all competitors react ->

Answer 3

maintaining sustainable competitive advantage

Question 4

all resources are limited ->

Answer 4

managing resource trade-offs

Question 5

first principles

Answer 5

foundational concepts or assumptions on which a theory, system, or method is based

Question 6

Five elements crucial to marketing strategy

Answer 6

1. Leads to a differential advantages over competitors
2. Sustainability
3. Ability to enhance firm performance
4. Customer perspective
5. Guides decisions and actions

Question 7

What did strategy arise from?

Answer 7

military context

Question 8

What determines a strategy’s success or failure?

Answer 8

customer

Question 9

corporate strategy

Answer 9

overall scope and direction of a firm and the way in which its various business operations work together to achieve particular goals

Question 10

marketing strategy

Answer 10

Decisions and actions focused on building a sustainable differential advantage, relative to competitors, in the minds of customers, to create value for stakeholders.

Question 11

What is the focus of management?

Answer 11

company (not people)

Question 12

Name three things both corporate and marketing strategies influence

Answer 12

human resources
operations
R&D

Question 13

Revenue Equation

Answer 13

demand * market share * average selling price

Question 14

Profit Equation

Answer 14

Revenue * Gross Margin - Sales & Marketing - G&A

Question 15

Explain why Apple’s chain ratio is relevant to the course

Answer 15

launch of iPhone led to big smartphone market growth
Apple got a lout of the share while maintaining premium price

Question 16

What industry commonly uses 1 to 1 marketing

Answer 16

tech

Question 17

Why are firms starting to target smaller segments?

Answer 17

matches customer needs better
faster responses
technology

Question 18

Inputs to Managing Heterogeneity Framework

Answer 18

segmentation
targeting
positioning

Question 19

What do the inputs to managing heterogeneity tell you?

Answer 19

3 C’s: Customers, Company, Competitors

Question 20

Why do customers change?

Answer 20

shift in needs
trigger events
changes in market/industry

Question 21

3 conditions of SCAs

Answer 21

• Customers care
• Company does it better than competitors
• Hard to duplicate

Question 22

Sources of SCAs

Answer 22

• building brands and relationships
• innovative offerings