Customer Final Exam

Question 1

Choice Process

Answer 1

Need Recognition
Information Search (Know)
Evaluation of Alternatives (Feel)
Choice (Do)
Post Purchase

Question 2

Position Statement

Answer 2

For   (target market)
Our product is (most important claim)
Among all (competitive frame)
Because  (single most important support)

Question 3

3C - STP - 4P

Answer 3

Customer - Competitors - Company
Segmenting - Targeting - Positioning
Product - Place - Promotion - Price

Question 4

AIDA

Answer 4

Awareness
Interest
Desire
Action

Question 5

Customer-Based Brand Equity Pyramid (CBBE)

Answer 5

Pyramid (bottom to top)
Brand Saliency (bottom of pyramid
Brand Performance - Brand Imagery
Consumer Judgement - Consumer Feelings
Consumer Brand Resonance (top of pyramid)

Question 6

PARC

Answer 6

People
Architecture
Routine
Culture

Question 7

Segmentation

Answer 7

STP
MAADS
4Ps

Question 8

Strategy

Answer 8

3Cs
STP
4Ps

Question 9

Decision Persuasion

Answer 9

Choice Process
AIDA
Persuasion Process: EACADP

Question 10

Persuasion Process

Answer 10

EACADP

Exposure
Attention
Comprehension
Attitude
Decision
Purchase

Question 11

MAADS

Answer 11

Segments should be:
Measurable
Accessible
Actionable
Substantial
Differentiable

Question 12

Ford Ka

Answer 12

Target segments: Freedom lovers and attention seekers, to be followed by sensible classics

Over 50% had not purchased a Ford previously
Buyers were “Self confident” and “youthful,” not necessarily young
Many were wives of people in a higher socio-economic bracket than typical Ford customers
More professional customers
Willing to attract attention, make a statement with the vehicle

Question 13

L’Oreal

Answer 13

This case is all about understanding a specific market and adapting to it. Some of the concepts taught in this course or strategies that are effective for luxury brands in the West cannot be simply replicated in China

Lifestyle vs functional positioning: both have pros & cons. Depends on the individual brand and market.

Question 14

Hubspot

Answer 14

Using CLV to choose between segments and manage relationships (more in RBC case)
Calculating returns on marketing
Segmentation for the short and long run
Targeting for future benefits
Evolution of the firm:
Who we are
Who we want to be
How marketing can get us there

Question 15

PSI - Theory Takeaways

Answer 15

Cost- Benefit Framework

Cost (now) and Benefit (now):
ex. cash purchase

Cost (now) and Benefit (later):
ex. Saving for retirement
      College education
      Preventative Care
      Smoking cessation

Cost (later) and Benefit (now):
ex. Credit card purchase
Smoking

Cost (later) and Benefit (later):
ex. Layaway plans

Question 16

RBC

Answer 16

The whale curve: Not all customers are profitable (customer based accounting)

PARK Takeways: CRM is more than technology or software, implementation requires:

1. Move from transactional to relationship mindset
2. Generating information requires effort across organization (eg. segmenting and targeting, IT, customer costing by accounting/finance).
3. Organizational redesign (eg. incentive problems)

Cross-selling
Selling a car loan may be unprofitable on its own, but because it increases retention of profitable credit cards, it can increase customer LTV

Question 17

Ti-Tech

Answer 17

Deciding among four orders - represented a different customer situation, mix of labor and materials, and mix of manufacturing talents, so a direct comparison among them was difficult.

Welders were the limiting factor
Brand alignment (innovation and complexity vs volume)
Who we are - determines who we can serve - who we serve - determines who we are
When to say “no” & de-select customers

If you’re not loyal to your customers they will never be loyal to you

Relates to whale curve
Which are your most profitable customers
Keep profitable customers or not
Fire valuable customer for a short term gain
Truly understand most profitable and loyal customer
Don’t get rid of most profitable customers

Question 18

TIAA

Answer 18

Weak positioning with respect to Vanguard (low cost) and Fidelity (high performance)
• What did TIAA-CREF stand for?

Pension funds have a problem that people don’t really know that they should be saving for retirement

Question 19

WHY ARE WE BREAKING JOURNEY INTO STAGES

Answer 19

Companies selling utilitarian goods should focus on need recognition (oral - B with their toothbrush indicator) vs hedonistic good companies should focus on post-purchase satisfaction