Marketing Flashcards
Based on First Principles and Data Analytics what is MP?
- All Customer Differ
- All Customer Change
- All Competitor React
- All Resources are limited
Customer Heterogeneity
Variation among customer needs, desire and subsequent behaviours
3 Key marketing sources of SCA
Brand
Offering
Relationships
Sales Revenue (Calculation)
Market Demand * Market Share (%) * Selling Price
4 Principles of marketing strategy and associated marketing decisions
- All Customer Differ - Managing customer heterogeneity
- All Customer Change - Managing customer dynamics
- All Competitors React - Managing SCA
- All Resources are limited - Managing resource trade off
Customer Analytics
Technology-enabled, model supported approach to harnessing customer and market data to understand and serve customers
Marketing Principle consist of:
First Principle of Marketing Strategy
+
Marketing Decision
Micro-Macro duality
Micro Level = True customer understanding
Macro Level - Most strategic and resource oriented
Customer lifecycle approach ignores
Product differences
Product Lifecycle
Typical user experience
+
Industry development efforts
Fundamental unit of analysis for MS
Customers
What improves your relative advantage in the minds of your targeted customers
Positioning
Niche Marketing
Small but specific and well-defined segment of the population
Mass Marketing
Focuses on entire market with single message
Customer-Centric
Philosophy that places customer’s needs at the center of an org strategic process and uses the insights to make decisions
Analysis Toll designed to help manage visualize & select target segments
GE matrix
Segmentation focuses on
Unique needs and desire of customers
Perceptual maps
Depict customer segments, competitors, and a firm’s own position in a multidimensional space, defined by the purchase attributes identified during segments
Macro Trend Analysis of Market (4)
Demographic Force
Sociocultural Force
Economic Force
Technological Force
New Demographic Force
Aging of the world’s population
Growing middle class in emerging countries
New Sociocultural Forces
The values, attitudes, and behaviour of a group or society
New trends
- Corporate social responsibility
- Healthy Living
New Economic Forces
People’s income rise or fall
- this influences buying patterns
New Technological Forces
Changes the operation of business (Digital economy)
e.g., Online business of banks, airlines, retail stores
Customer dynamics - 5 sources
- Discrete Life events
- Typical lifecycle
- Learning Effects
- Product Lifecycle (4 stages)
- Environmental changes
Why can the lifecycle approach be problematic
It assumes an avg rate of change of customers, products, and industries
Output of MP#2
All Customer Change
- The CLV of customers in each persona
- The products and services customers buy at different points in lifecycle
- How they feel at different stages in their lifecycle
Acquisition Stage
First contact, typically before the 1ste purchase
When prospects and early customers have same needs
What data can help identify triggering events or mechanism underpinning each migration and thereby answer questions about the causes of change.
Qualitative data
AER position statement
Focused on existing customers
rather than outwardly focuses on all customers in the market
Using brands as SCA most effective?
in Large, B2C markets
BOR equities are similar to
Tangible assets
Key outputs of creating SCA (3)
- SCA statements
- AER strategies
- BOR strategies
With BOR, what is normally determined last
Relationship strategy
- they involve the delivery and experiential aspects of offerings
Scale from many independent brands to single master brands
House of Brands
Endorsed Brands
Sub-Brands
Branded House
True Loyalty
High Behavioral Loyalty
High Attitudinal Loyalty
Latent Loyalty
Low Behavioral Loyalty
High Attitudinal Loyalty
Spurious Loyalty
High Behavioral Loyalty
Low Attitudinal Loyalty
No Loyalty
Low Behavioral Loyalty
Low Attitudinal Loyalty
Network of nodes and links
Associative network memory model
BOR Equity Grid Provides
objectives, relative advantages, and source of sustainability
that are requires to use brands as SCA
Early Followers trumps?
First Movers advantage
Because they are both quick and better
Gap between early adopters and early majority
Chasm
Laggards & Late Majority
Need the most evidence to persuade
hard to persuade
Not important for early adoption
Lowest price
Adoption Lifecycle
Innovators
Early Adoptions
Chasm
Early Majority
Late Majority
Laggards
Red Ocean market
highly competitive and populated by “sharks” fighting over the same customers
Blue Ocean market
less competitive and reflecting the blue color of the deep ocean waters that are far from land
Stage Gate
Introduce new offerings (new product)
- improves speed of product development
- success likelihood
- development costs
Repositing approach
New customers
Designer curse
Value product more than customers value
Word of Mouth
Improves
- Positive attitude, referrals and feelings of gratitude
CRM
Customer Relationship Managment
Foundation of relational loyalty
Trust
Boundary-spanning employees (B2B or service)
Communication (B2C)
Boundary-spanning employees (B2B or service)
- sellers need to dedicate specific relationship marketing investment to motivate employees
Customer Relationship Lifecycle
Exploratory/Early Stage
Growth/Development Stage
Maturity/Maintain Stage
Decline/Recovery Stage
Free will
seller offer RM benefits of its own accord
Cooperative behaviors
Coordinated, complementary actions between partners to achieve mutual goals
Central measure of effective RM
Relational equity
RM most effective
B2B rather than B2C
Inputs of resources tradeoff frameworks
outputs of previous three principles
Heuristic Era
—->
Data Era
Very little hard data
—->
Detailed data on individual consumers over time
In Heuristic era
managers solve resource allocations using simple rule of thumb, driven by intuition and judgement
Most important measure of customer loyalty
Net-prompter score
Key elements of Experimental-based attribution
Design
Outcome
A test factor
Key part of responds model
Past marketing inputs
Objectives
Environmental factors
