Midterm Slide Notes

Question 1

What is Marketing?

Answer 1

Identifying needs and wants and create products or services that MATCH these needs and wants to satisfy customers better than competitors do. (Although there are some exceptions e.g. Apple)

Question 2

Strategic Planning Process

Answer 2

1) Define a Mission
2) Set Company’s Objectives
3) Design a Business Portfolio
4) Develop a Detailed Marketing Plan

Question 3

Mission Statement

Answer 3

A statement of the organization’s purpose
Should have employee buy-in
Should be beyond “making profit”
Should be long-lived

Question 4

BCG Matrix

Answer 4

Cow, Dog, Star, Question Mark

Question 5

Developing SMART Objectives

Answer 5

Specific - should be clear what is to be achieved
Measurable - should be possible to measure if achieved
Achievable - should be achievable & attainable
Realistic - should be realistic given company resources
Time - should include a time frame

Question 6

Chernev’s 3-V Framework

Answer 6

What does you company value?
What do your customers value?
What do your collaborators value?
Goal: provide value to all three

Question 7

SWOT Analysis

Answer 7

Micro Enviroment
- Strengths
- Weaknesses
Macro Enviroment
- Opportunities
- Threats

Question 8

CRM

Answer 8

Customer
- Focus is on the customer
- Customers are the source of revenues and profits - they are assets!
Relationship
- The approach or philosophy is explicitly dynamic
- Relationship involved both customers and firm
Management
- Ongoing activity (acquisition, retention and enhancement)
- Management is about maintenance and improvement

Question 9

Core Strategies for CRM

Answer 9

Acquisition
Retention
Expansion (Add-on selling)

Question 10

CLV

Answer 10

Customer Lifetime Value is the net present value of all future streams of profits that a customer generates over the life of his/her business with the firm.

Question 11

Acquisition Rule

Answer 11

Acquire valuable customers

Relative CLV > 0 (Relative CLV is absolute CLV - AC)

Question 12

Retention Rule

Answer 12

Keep valuable customers

Keep if absolute CLV is greater than cost to retain

Question 13

Key Sources of Volume

Answer 13

From who?
- New customers
- Existing customers
How?
- Increase demand
- Steal shares

Question 14

Stimulate Primary Demand

Answer 14

New Users (Acquisition objective)
- example: Art of Shaving - glorify shaving
New Volume (Retention objective):
- same users, increased volume
- example: Coke as substitute for Coffee
New Value (Retention objective)
- Same users, higher price paid

Question 15

How to Determine Source of Volume

Answer 15

_

Question 16

Simulating Primary Demand

Answer 16

Motivation: For category leader, stealing shares is not an option
Likely result: Stimulating primary demand benefits competitors as well
- Increases appropriated according to current share positions

Question 17

Steal Share

Answer 17

Motivation: Lesser brands won’t benefits from stimulating demand
Tactics: Realistically assess relative strengths relative to competition
- Decide from whom to steal shares
- Decide what relative strengths to develop
- Communicate strength relative to competition

Question 18

Overview of the STP Process

Answer 18

Segmentation
Targeting
Positioning

Question 19

Segmentation

Answer 19

• Identify segmentation bases and segment the market.

- Develop profiles of the resulting segments.

Question 20

Targeting

Answer 20

• Evaluate the attractiveness of each segment

- Select the target segment(s)

Question 21

Positioning

Answer 21

• Identify possible positioning concepts for each segment

- Select, develop & communicate the chosen positioning

Question 22

Characteristics of Good Segmentation

Answer 22

Large
Identifiable
Distinctive
Stable

Question 23

Niche Marketing

Answer 23

Same as concentrated marketing