Lecture 5 LG Flashcards

1
Q

what are consumer benefits of brand awareness and innovation

A

promise of quality
risk management
reduced search costs
knowing identity
showing identity

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2
Q

what are organizational benefits of brand awareness and innovation

A

higher margins
inelastic demand
customer retention
brand extension potential
HR

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3
Q

what is the nexus between supply and demand for economists

A

price

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4
Q

what is the nexus between supply and demand for marketeers

A

marketing

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5
Q

what is open source marketing

A

harvesting the power of the competitor

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6
Q

what is an example of open source marketing

A

amazon

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7
Q

what are characteristics of pipeline

A

buy materials, make product, sell it
controlling resources
optimizing internal processes
increasing customer value

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8
Q

what are characteristics of platform

A

coordinating resources
facilitating external interactions
maximizing ecosystem value

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9
Q

what are 2 sided markets

A

people who buy from the platform
people who supply to the platform

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10
Q

what are 2 problems with 2 sided markets

A

who comes first: buyer/supplyer
how to extract value

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11
Q

what is a market driven innovation

A

responding to existing consumer needs

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12
Q

what are potential dangers of a market driven innovation

A

tyranny of customers
danger of creeping incrementalism

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13
Q

what is the danger of creeping incrementalism

A

the reference point of todays customer is todays product

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14
Q

what are market driving innovations

A

changing market structure

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15
Q

what are 3 different types of market driving innovations

A

functional modification
deconstruction
construction

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16
Q

what is functional modification

A

changing the function or behaviour of players in the market

17
Q

what is deconstruction

A

eliminating players from the market

18
Q

what is construction

A

adding players to the market

19
Q

what are characteristics of a red ocean

A

compete in existing marketse
beat the competition
exploit existing demand

20
Q

what are characteristics of a blue ocean

A

create uncontested market space
make the competition irrelevant
create and capture new demand

21
Q

what is the 4 actions framework

A

eliminate, reduce, raise and create

22
Q

what was LG like before 2002

A

tech focussed
product development for korean market, exported to US
low price positioning
no clear product development process

23
Q

what were LG’s 2 goals

A

premium brand
top 3 seller

24
Q

what was LG’s mindset shift after 2002

A

creating local team for US market
multifunctional development team
use LG brand and articulating brand identity

25
what was LG's focus between 2003-2005
product and distribution
26
what were characteristics of the LG washing machine product
front loaders european 3 price levels innovation: drive system (not belting machine) higher income, tech savvy, younger segment
27
what was the distribution roadmap
regionals best buy home depot SEARS
28
why start with regional
they were most open to foreign brands
29
what kind of strategy did LG use in 2003-2005
push
30
what did LG launch in 2005
steamer instead of washer dryer combo
31
was the LG steamer market driving and blue ocean strategy
market driving yes not blue ocean, because it didn't eliminate elements
32
what kind of strategy was used from 2005 onwards
switch from push to pull start advertisement