Marketing Problems (respond to a problem or derive own examples) Flashcards
prioritise lecture:
3 rungs of brand benefits ladder
can you make a brand benefits ladder for a company’s product?
technical attributes
functional attributes
emotional benefits
prioritise lecture:
technical attributes and
starbucks ex.
- physical specifications and other tangible aspects of the product
- ex. starbucks coffee -> signature roasting, better beans content, high price, breaks during the day, ethically sourced..
prioritise lecture:
functional attributes and
starbucks ex.
- what the product’s features do for the customer functionally
- ex. starbucks coffee -> gives energy, ethical, premium…
prioritise lecture:
emotional benefits and
starbucks ex.
- how the functional benefit makes the consumer feel
- ex. starbucks -> fulfilled feeling, tastes good, indulgent…
reach lecture:
positioning map
can you draw one
shows consumer perception of marketer’s brands v. competing products on important buying dimensions
reach lecture:
value proposition
full mix of benefits upon which a brand is positioned
reach lecture:
positioning statement
summarizes the company or brand positioning using this form:
“to (target segment and need) our (brand) is (concept) that (point of difference)”
Ex. London Pass - “To adventurous travelers who want to get the most out of a short and budget-friendly trip to London, the London Pass is the key to the London experience, that makes it affordable and easy to travel.”
offer lecture:
CLV components
attraction costs
net margin on first sale
retention costs
net margin on future periods
discount contribution margin from future sales
offer lecture:
why calculate CLV?
focus on relationships with certain customers
determine how much to spend to acquire customers; customers as ‘assets’
offer lecture:
what are components of net margin on the first sale?
price - (cost of goods sold + selling and marketing expenses per sale)
** do not double count attraction costs
offer lecture:
what are components of net margin on future periods?
(number of orders per year x revenue per order) - retention costs
do not double count retention or attraction costs
offer lecture:
discount contribution margin from future sales
Do above for each year, add sums at the end and SUBTRACT net margin on first sale
money today matters more
companies’ costs occur today but they profit in the future
apply a discount rate (set by the firm / rajesh) to compute net present value of future profits
year x -> net margin on future periods / ((1+discount rate)^(year/period)
offer lecture:
name of net present value variables
Success rate in attracting customers Cost of each sales visit Discounts on initial orders Size of initial order Price of the product (revenue) COGS Selling and marketing expenses per order Retention costs per year Amount sold per year Number of orders needed to process per year Length of time customer is retained Discount rate
focus lecture:
experimental research
selecting matching groups of subjects
giving different treatments, controlling unrelated factors
checking for differences in group responses to understand cause-effect relationships
focus lecture:
3 primary research methods
self-report (can produce socially desirable responses)
observation
experiments/exploratory research
