Module 3 Flashcards
Low cost/price business model
- customers value low price
- maintain cost leadership through economies of scale
- continually driven down costs
- achieve high sales volume
- improve efficiency
- standardisation
EG buying a suit from Kmart (stock item form cheap price)
High differentiation business model
- customers value other elements of the marketing mix
- understanding basis for differential advantage
- build barriers to entry
- build brand
- continuous innovation
- encorage creativity
EG buying suit from David Jones ( stock item but better quality and price)
Customer focus business model
- close customer relationship
- maintain the close customer relationship
- keep in touch and monitor customer needs
- maintains customer loyalty
- maximise sale to loyal customer
EG buying a suit from a tailor ( specifically made for customer)
Internet business model
1) direct sales (Amazon)
2) bricks and clicks (John Lewis)
3) affiliated ( eBay)
4) auction (eBay)
5) flash sale (Groupon)
6) pay per click ( google)
7) advertisement (Youtube)
8) Subscription ( the Times Newspaper)
10) open ( comparison website)
11) bait and hook (smartphone)
12) pay as you go ( smartphone)
Lean cycle
1) build idea
2) launch Minim viable product (MVP)
3) measure and analyse data
4) learn
5) restart cycle
Launch quickly as a MVP and tailor it to specific needs of a customer
Advantages and disadvantages of Lean start up
Advantages:
- first mover advantage
- cost minimisation
- market risk reduction
Disadvantages:
- close customer relationship
- mechanisms to recieve their feedback
Customer development process
1) customer delivery
2) customer validation
3) customer creation
4) company building
Low cost marketing test
- garage sales
- pop up shops
- Facebook/internet use
- amazon
Reasons for branding
1) establishes an identity
2) helps build reputation
3) helps develops relationship
4) increased company value
Values, visions and mission
value: core beliefs
Vision: your view of what your business might become
Mission: your statement of business purpose
Value proposition
- how the product/service will solve a problem for the customer
- the benefits they can expect
- why customers buy from you and now competitors
Source of value driven strategy
- management vision
- marketing sense and organisation learning
- differentiating capability’s
- relationship strategy
- reinventing the organisation
SADD marketing segment
Sufficiently large or willing to pay a high enough price to be viable
Accessible through communications or distribution channels
Defendable from competitors
Distinctive- significantly different needs form other segments
Define thinking
1) define- roots problem
2) research- observe how the problem is currently being solved
3) ideate- look at the problem from another perspective
4) prototype- experiment
5) choose- find prototype that works best
6) implement- try out the soloution and monitor the effectiveness
7) learn- learn form success and failure
