Marketing Strategy Book Flashcards
4 Ps of Marketing
Produce, Price, Place, Promotion
Define Corporate Strategy
The direction and scope of an organization over the long term, to achieve some well-defined objectives
Marketing Principal
A First Principal or underlying assumption, when matched with its associated managerial decisions
Define First Principal
the fundamental concepts or assumptions on which a theory, system, or method is based
Define Marketing Strategy
building a sustainable differential advantage in the minds of customers, to create value for stakeholders
Define Customer Heterogeneity
The variation among customers in terms of needs, desires, and subsequent behaviors
What is STP (Segmentation, Targeting, Positioning) Approach
the general approach of grouping customers into segments, selecting target segments and using marketing activities to improve a firm’s positioning in the target segments
What is a customer-centric approach?
a company-wide philosophy that places customers needs at the center of an organization’s strategic process and uses the resultant insights to make decisions
Define Customer dynamics
the processes by which customers desires and needs change over time
What is the learning effect
the process by which customers become familiar with the product by using it, which changes their weighting of the relative importance of the different attributes due to their enhanced knowledge and experience
What is customers lifecycle
the average change or migration among customers as they age, independent of any produce or industry difference
what is a product or industry lifecycle
typical user experiences and industry developmental effects that can be observed as the product category matures
what is the AER (acquisition, expansion, retention) approach?
an approach that groups existing customers into three stages - those recently acquired, longer term customers, and those at risk of being lost - can offer some insights into customer dynamics
what is customer lifetime value (CLV)
an approach that attempts to capture the financial contribution of each customer by determining the discounted value of the sales and cost
What is sustainable competitive advantage (SCA)
an advantage that a firm has when it is able to generate more customer value than the other firms in its industry and when these other firms are unable to duplicate its effective strategy
What is brand, offering, relation (BOR) equity stack
a stack of brand, offering, and relationship equities that represents the firms overall customer equity
What is heuristic-based processes
a decision making process where an individual uses lay theories or common believes (Heuristics) to make decisions with uncertain outcomes
what are attribution-based processes
a method for gauging marketing effectiveness that attributes casual economic effect to a marketing investment in environments where multiple marketing and confounding events may shape an economic outcomes
What are individual differences
a person’s stable and consistent way of responding to the environment in a specific domain
What are functional needs
the relative importance of functional attributes (e.g, design and features) to an individual based on their personal circumstances
What is self-idenity
the defining characteristic of a person in their social context
What are marketing activities
Strategic initiatives aimed at generating value to a customer through a firms product or service offerings
what is latent customer heterogeneity
potential differences in desires that are unobserved and have not manifested in different customer purchases or behaviors
what is mass marketing (undifferentiated marketing)
a marketing strategy that utilizes mass media to appeal to an entire market with a single message
where a firm mostly ignores customers heterogeneity based on the assumption that reaching the largest audience possible will lead to the largest sales revenue