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MKTG 101 > Lecture 1 > Flashcards

Lecture 1 Flashcards

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1
Q

marketing

A

art & science of creating value by designing & managing successful exchanges

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2
Q

dual value creation

A

process by which companies create value for customers & build strong customer relationships in order to capture value from customers in return

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3
Q

ways offering can deliver value to customers

A

functional
monetary/economic
psychological

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4
Q

ways offering can deliver value to company

A

revenue but also CLV, user base

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5
Q

product orientation

A
  • try to increase market share and lower price, build distribution network and increase profits
  • often devolves into competing on 2 dimensions (price & quality
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6
Q

sales orientation

A

make people want stuff

Ex. use of clever ads, jingles

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7
Q

demand orientation

A

desires of customers should guide firm actions (find out what people want 1st, then make it)

  • made possible w/ good research/data analytics
  • BUT, stifles innovation, customers don’t know what they want, all companies making the same thing & same price stifles competition
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8
Q

competitor orientation

A

looking outward to competitors, using game theory and mgmt strategy

  • takes eye off customer
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9
Q

customer centricity

A

AKA market orientation, value marketing
- aligning ENTIRE co development and delivery of offering w/ current and future needs of select group of customers in order to max their LT financial value to firm

understand AND anticipate needs; focus marketing on more valuable members
-understand, attract, and keep most valuable customers

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10
Q

customer centricity as an outside-in strategy

A

start w/ customer: their current & future needs, any pain points they have w/ current offering standards

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11
Q

how is customer centricity different from demand orientation?

A

it also looks @ FUTURE needs of a select group of target customers (usually the most loyal customers)

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12
Q

what customer centricity IS NOT

A

having CRM – data does not automatically mean insights; you have to have insights AND understand needs to be customer centric

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13
Q

strategic analysis

A

use 5 C’s: customer, company, collaborators, competitors, context

-used to define target market

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14
Q

5C’s: company

A 
development of distinctive and hard to imitate resources
SWOT analysis (SW = internal factors) (OT = external factors)
  • resources of strategic biz unit managing offering enables fulfillment of customer needs
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15
Q

5C’s: customer

A

customer needs, key decision and value drivers, segmentation, CLV, targeting

  • needs co aims to fulfill using offering (B2B or B2C)
  • has influence on defining other 4 C’s, changing this would change all the rest
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16
Q

5C’s: collaborators

A

partners/suppliers/distributors

leveraging strengths to reach common goals & create value for target customers

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17
Q

5C’s: competitors

A

all those aiming to fulfill same customer need (don’t ignore substitutes!)

market space, positioning

positioning = how firm’s offerings are perceived relative to competitor’s offerings

18
Q

5C’s: context

A 
market potential, market attractiveness
P = political and legal
E = economic
S = social
T = technological
19
Q

OVP

A

3V model
-optimal value proposition - intersection of company, collaborator, and customer value; value delivery is balanced across 3 entities

  • has to deliver value superior to competition
20
Q

tactical

A

4P’s / marketing mix - defining attributes of actual offering that’ll create market value (tools to deliver OVP)
product, price, promotion, place

21
Q

marketing plan steps

A
  1. situational analysis = 5C’s
  2. strategic options/objectives = STP (segment, target, position)
  3. Implementation & Eval = 4P’s, metrics, forecasts and budgets

*GSTIC

22
Q

4P’s: product

A

offering: product, service, platform

- key functional characteristics & perhaps includes brand

23
Q

4P’s: price

A

how we communicate and extract value; price charged for benefits received

24
Q

4P’s: promotion

A

how to communicate value to customers

- incentives (monetary or nonmonetary to enhance offering value) and communication to current and potential customers

25
Q

4P’s: place

A

how we deliver offering; distribution

- channels thru which it’s delivered to customer

26
Q

focus on the customer

A

customers want the benefit

not all customers are equal; focus on most valuable

27
Q

why rethink product-centric approach?

A
  • technology: product lifecycles are way shorter, you can’t enjoy innovation for as long
  • global competition; increasingly borderless environments means more markets but also more competition
  • customer power: customers can find cheaper options immediately
28
Q

value proposition

A
  • defines value the offering aims to create for relevant market participants
  • co’s expectation of value it’ll create; an ideal representation of benefits customer will receive from offering
29
Q

value relationships

A

creating and capturing value b/w co, customer, collaborators

3 value relationships on co. side, 3 on competitive side

30
Q

top-down approach to biz model

A
  • start with customer analysis (ID need to be satisfied) or co resource analysis (to ID core competencies/strategic assets that could create competitive advantage)
  • ID target market and create OVP
31
Q

bottom-up approach to biz model

A
  • start with product development (deliberate R&D process, incorporating new advancements in tech)
  • ID target customers and unmet needs
32
Q

when to update a biz model

A

when one of the 5C’s changes, or when value proposition for relevant entities is no longer optimal

33
Q

GSTIC

A
  • goal = ultimate criterion for success; ID focus and benchmarks
  • strategy = 5C’s; ID target market and value proposition
  • tactics = 4P’s
  • implementation = define infrastructure, business processes and implementation schedule to outline logistics of strategy and tactics
  • control = evaluating progress and analyzing change
34
Q

setting goals

A
  • focus: monetary or strategic (not mutually exclusive)
  • benchmarks: quantitative (relative or absolute) or temporal
  • market objectives: more specific goals outlining changes in behavior of 5C’s that’ll enable ultimate co goal attainment

temporal goals, aka setting a timeline, is a key strategic decision bc strategy adopted to implement goals is often contingent on time horizon

35
Q

defining implementation

A
  • biz infrastructure = functional/divisional teams, organizational structure
  • biz processes = managing flow of info, goods, services, and $$; market planning, resource mgmt, mktg mix mgmt
  • schedule = optimal timing and sequence to perform individual tasks to optimize effectiveness and cost-efficiency
36
Q

controls

A
  • performance evaluation of outcomes of actions w/r/t goals set; ID any gaps and modify accordingly
  • environmental analysis = make sure action plan is optimal w/r/t operating environment (look for new opportunities or potential threats)
37
Q

when to update market plan

A
  • performance gaps (caused by inaccurate info or assumptions, logic flaws, implementation errors)
  • change in target market (5 C’s)
38
Q

creating company value

A

process of capturing value derived from market exchange in which co creates value for customers and collaborators

  • monetary
  • strategic (functional and psychological)
39
Q

managing profit by incr. sales rev

A
  • best for LT profitability
  • incr sales volume: managing customer adoption (market growth = customers new to category, or stealing market share) and customer usage (market penetration = focus on current customers)
  • optimize price: consider customer price elasticity bc that affects sales volume change; “price” also includes monetary incentives, prices throughout retail channel
40
Q

managing profit by decr costs

A
  • decr COGS, R&D, mktg, cost of capital
  • achieve economies of scale (lower per-unit cost bc of greater manufacturing and sales volume), move up the learning curve (becoming more productive), achieve economies of scope (synergies among different offerings in portfolio)

MKTG 101 (5 decks)

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