Offer

Question 1

product line / brand extension

Answer 1

strategies to leverage the brand

decide on width, how many products, and depth, how many variants of each product to sell

brand extensions fail a lot (high barriers to market entry)

need to protect firm from genericide, cannibalization

Question 2

brand architecture

Answer 2

leverages the brand and differentiates offerings

decide on brand’s core meaning

brand/product line extensions should reinforce brand quality

Question 3

product life cycle

Answer 3

x = time
y = sales

introduction = in development

growth = adopters

maturity = hits mainstream

decline = alternatives come out

Question 4

4 drivers of success in diffusion of innovation

Answer 4

relative advantage in meeting customer needs

communicability of the benefits

minimal behaviour change for customers

observability to encourage social influence/herding

Question 5

diffusion

Answer 5

adoption of an innovation over time spread by communication through a target market

Question 6

8 tactics to increase CLV

IGIWRIRF

Answer 6

identify and pamper best customers (loyalty programs, incentives)

get rid of low-value customers (don’t accept those who can’t be satisfied)

increase value of existing customers (ex. cross-selling and upselling)

win back former customers (why did they leave? are they satisfied now? are there changes in context?)

reduct attraction costs (reduce introductory offers, capitalize on word-of-mouth)

increase retention rate

reduce retention costs (find cost-efficient customer service methods, automate/outsource)

find new sources of high-value customers (untapped markets like BRIC countries)