Chapter 1

Question 1

What is the key to achieve excellence?

Answer 1

1. strategy

2. execution

Question 2

Home Depot

Answer 2

• new vision to serve customers by empowering them to complete jobs on their own
• generated a lot of success
• when execution faltered, the company dropped 24% despite a booming construction period

Question 3

marketing strategy

Answer 3

simple value proposition that is based on a deep understanding of customers

Question 4

Dollar General

Answer 4

• sells quality products at low price to low fixed-income customers
• locations are in small-towns and low-income urban areas
• have success because of focus on the marketing strategy

Question 5

K-Mart

Answer 5

• struggled due to lack of marketing strategy
• despite having a low-scale customer focus, decided to sell upscale items (Martha Stewart collab) that alienated current customer base
• tried to compete with Walmart on low prices and eventually filed for bankruptcy

Question 6

Why are marketing strategies executed poorly?

Answer 6

• employees are responsible for exectution, so poor training and engagement will lead to poor execution

Question 7

Marketing

Answer 7

a disciplined process used bye organizations to solve business problems

Question 8

Problems solved by marketing (for-profit)

Answer 8

• low-priced competitors are flooding the marketplace with cheap goods
• difficult to differentiate goods from competitors
• how to generate more revenue?
• manage explosion into media channels
• customers are becoming more sophisticated and price sensitive
• how to build a customer-focused organization

Question 9

Problems solved by marketing (not-for profit)

Answer 9

• differentiate ourselves
• increase awareness of our brand
• increase funding from donors
• build partnerships with for-profit organizations
• motivate volunteers

Question 10

Snap-On Tools

Answer 10

• example of marketing organization
• sells tools to the auto-mechanic
• includes premium materials and charges a price premium (10% more)
• builds relationships with the mechanics through dealers `

Question 11

Marketing Process Steps

Answer 11

1. Understand Customers
2. Create Customer Value
3. Deliver Customer Value
4. Manage Customer Value

Question 12

Step #1: Marketing Process

Answer 12

1. Understand Customers
   - customer needs
   - customer segments
   - target customer

Question 13

marketing segmentation

Answer 13

recognizing different sets of groups of customers based on their needs
- winning organizations know they cannot serve all needs; they need to choose which customer needs they want to target/serve

Question 14

Step #2: Marketing Process

Answer 14

2. Create Customer Value
   - product strategy
   - pricing strategy
   - channel strategy
   - marketing communications strategy

Question 15

marketing mix

Answer 15

price, product, marketing communications and channels

Question 16

Snap On: Marketing Process Example

Answer 16

1. not regarded as professionals in society, mechanics time is money, productivity is important, does not have reliable cash flow, cannot go to a store
2. superior steel in products (product strategy), flexible payment (pricing strategy), mobile store (channel), talking/relationship with customer (mktg comm.)
3. execution across all different aspects of organization, driven by customer needs
   4.

Question 17

Step #3: Marketing Process

Answer 17

3. Deliver Value
   - sales execution
   - cross functional alignment
   - developed in strategic document: “marketing plan”

Question 18

marketing plan

Answer 18

• “go-to-market” strategy
• specifies what target segments it will serve, how it will serve them, and how to differentiate itself from competitors
• many strategies in this plan are executed by other functions (sales, mktg, legal, shipping, customer service etc.)

Question 19

How to implement marketing plan?

Answer 19

1. Translate the marketing plan into functional plans (i.e. sales plan, finance plan, IT plan, HR plan etc.)
2. the organization has to align all its functions to focus on the customer (customer focus driven organization)

Question 20

customer focus

Answer 20

cross-functional alignment

Question 21

Step #4: Marketing Process

Answer 21

4. Manage Customer Value
   - feedback loop to review strategy and make changes to ensure business is keeping pace with market conditions
   a) customer satisfaction measurement
   b) segment review
   c) customer review
   d) product mix review

Question 22

The Ten Tasks of Marketing

Answer 22

1. Identify Opportunities
2. Segment and target markets
3. Develop a marketing strategy
4. Implement the marketing strategy
5. Assess and Innovate
6. Provide a competitive advantage to the sales force
7. Be the customer’s champion within the organization
8. Build a customer focused business
9. Make marketing accountable
10. Be a change agent within the organizations

[I Slay Dior In Aspen. Please, Be Bold, My Baby.]

Question 23

Smuckers

Answer 23

1. Identify Opportunity

- expand food portfolio by purchasing Folgers coffee, Jif peanut butte and Crisco shortening

Question 24

P&G

Answer 24

• keeping marketers and researchers in their positions longer to enable them to develop a deeper understanding of their business
• going undercover at laundry mats
• greater coordination between the marketing team, R&D (diaper industry, focus on parenting rather than technology)

Question 25

Operation Eyesight

Answer 25

• tries to eliminate unnecessary blindness in Africa/South Asia
• uses marketing to create value for main stakeholders (donors and hospitals/doctors)
• researches to understand unique needs of each partner (infrastructure vs. purpose)
• builds awareness and ensures brand aligns with stakeholders

Question 26

Arbol [PT. 1]

Answer 26

• operating in the forest products industry, sell to home builders and end consumers through retailers like Home Depot
• transformed from cost-focused company into a marketing led company
• was a commodity, didn’t think they could charge more for items