Session 1 Flashcards
What is marketing: According to Bart
Not Rocket science : deteministic
Behavioral science: probabilistic
What is marketing: According to American marketing association
Marketing is the activity, set of institutions, and processes for creating,
communicating, delivering and exchanging offerings that have value for
customers, clients, partners, and society at large.
Liking with price vs Without price
In this study wine
A = B
C = D
E is another wine
When no prices are mentioned
Ratings for A = B
Ratings for C = D
When fictional prices are mentioned
if price of A > B then rating A > B
Same for C and D
Cup size vs contents
If cup 10oz and contents 8oz willing to pay $1.66
if cup 5oz and contents 7oz willing to pay $2.26
Independent market vs Social market
In independent markets the product quality will matter more and the market will be more consitent compared to another inderpendent market
Social markets are less predictibale will have more populat hits in music etc because of the social factor.
Value = f(marketing mix)
Product
Price
Place
Promotion
How do you measure value of comustomers
Customer acquisition cost
Customer marigin
Retention rate
customer lifetime value
Customer Acquisition Cost (CAC)
The total cost to acquire customers divided by
the number of new customers acquired
Customer margin
Revenue generated by customers minus the cost to serve
Retention rate
The percent of customers from the previous period that are still
active in the current period
Customer Lifetime Value (CLV)
The aggregate profit a customer brings to a firm
over the entire duration of the relationship between the customer and the fir
Firm Value
Firm value
Customer Lifetime Value
Customer Acuisition Customer retention Customer margin
Marketing actions: Product price place promotion
What is secret to success in marketing?
Number one on the list is intellectual curiosity.
To be a great marketer, you must be a great student.
important barier to curisoity
A failure to appreciate what one does not know
would constitute an absolute barrier to curiosity.
The greatest enemy of knowledge is not ignorance.
It is the illusion of knowledge.
What does value depend on
Value does not only depend on intrisic ingiendient of a procust it is multiply determined, also by extrinsic marketing actions, such as a price, promotion, place. packaging. Value is not objective, but subjective. It depends on how consuimers intepret marketing actions.
Does value to the consumer matter
Value to the consumer is only one part of the equation. Firms ultimately care about the value of consumers. Creating value to customers is a means to create value of consumers and ultimately value of the firm.
