Mark 3 Flashcards
What is customer value
Customer value = Perceived benefits - Perceived Sacrifice
From the customer perspective, perceived benefits is derived from the product, service and image benefits and Percieved sacrifice refers to the total cost associated with buying the product. This covers the time, energy, psychological and monetary costs.
Define the marketing concept and the key components of it
Discuss the four forms of customer value
Price value - One of the most powerful customer motivations to purchase is because a product is perceived as being cheaper than those offered by competitors.
Performance values - Customers are interested in the latest features and are attracted to products based on their functionality and perceived high-quality levels. The priority of UK companies working in the field is to consistently innovate, explore change, discontinue products to maintain attractive features and functionality.
Emotional value - Finding effective ways to differentiate products based on performance elements by promoting an emotional connection with the customer. Examples of this would be when someone may be a Volvo as they believe the car to be safe. Consequently, the only real difference exists within the mind of the consumer.
Relational value - Another important motive to purchase is the quality of service received by the customer. Particularly in a restaurant or office building, if a customer finds a good quality service provider, they may be more willing to stay with the provider and as the relationship.
Define marketing in regards to customer value
Marketing is the delivery of value to the customer at a profit
.Three forms of marketing orientation began popular with companies in the early 20th century. Explain the different orientations.
Production orientation focuses on production capabilities. The purpose of the organization is to develop products or services and it is the quality and innovativeness of these offerings that are considered to be the key to success.
Sales orientations are characterized by excessive sales focus. They possess good products and services but believe the focus of marketing should be on ensuring that customers buy the products.
Customer orientation companies get close to customers to understand their needs and problems. When personal contact is insufficient or not feasible, formal marketing research is commissioned to enable companies to understand customer motivations and behaviour.
Define Marketing planning
The process by which businesses analyse the environment and their capabilities, decide upon courses of marketing actions and implement those decisions is called marketing planning.
Marketing planning forms part of the broarder concept known as “strategic planning”; this involves not only marketing but also the fit between production, finance and personnel strategies, and the environment.
Because marketing strategy is charged with the responsibility of managing the interface between the company and its environment, it has a key role to play in strategic planning.
The following are essential questions that need to be asked when thinking about marketing planning decisions:
- Where are we now?
- Where would we like to be?
- How do we get there?
Identify and compare the feature of a Market orientated business and an internally orientated business.
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Draw and present the use of a Kano model
In the current competitive climate, ti is usually not enough simply to match performance and expectations. Expectations need to be exceeded for commercial success so that customers are delighted with the outcome. In order to understand the concept of customer satisfaction, the Kano model helps separate characteristics that cause dissatisfaction, satisfaction and delight. Three characteristics underlie the model: “Must be”, “more is better” and delighters”.
Define a business mission
A broadly defined, enduring statement of purpose that distinguishes a business from others of its type.
Why and how is a SWOT analysis performed
A structured approach to evaluating the strategic position of a business by identifying its strengths, weaknesses, opportunities and threats is known as a SWOT analysis.
It provides a simple method of synthesizing the results of the marketing audit. internal strengths and weaknesses are summarized as they relate to external opportunities and threats.
Present that stages of the ANSOFF matrix
- Market penetration: This strategy involves taking the existing in the existing market and attempting to increase penetration. Existing customers may become more brand loyal and/or new customers in the same market may begin to buy the brand.
- Production development: This strategy involves increasing sales by improving current products or developing new products for current markets.
- Market development: this strategy is used when current products are sold in new markets. This may involve moving to new international markets or moving into new market segments.
- Diversification: This strategy occurs when new products are developed for new markets. This is the riskiest strategy but may be necessary when a company’s current products and markets offer few prospects of future growth. When there is synergy between the existing and new products, this strategy is likely to work.
What is a marketing mix
Once decisions have been made about where the organization wants to go, the next steps involve deciding on how to get there. This set of decisions has been described as the company’s Marketing Mix and is comprised of the 4p’s
Product, Price, Place and Promotion
List the 10 stages of the Marketing planning process
Explain the importance of efficiency and effectiveness in business.
Efficiency is concerned with inputs and outputs. An efficient firm produces goods economically.
Effectiveness means doing the right things. This implies operating in attractive markets and making products that consumers will wish to buy.
A company that is both inefficient and ineffective will go out of business quickly as it generates high costs without high sales, while a company with high efficiency and effectiveness will be successful and thrive.
