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Marketing Management > Session 2 > Flashcards

Session 2 Flashcards

1
Q

What is coherence

A

Matching internal differentiating capabilities with exterior environment

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2
Q

What is the coherence premium

A

Premium that is paid by customers when those coherence capabilities are matched to the right market.

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3
Q

3 questions to discover coherence capability

A
  1. How are we going to face the market? Innovator, low-cost competitor, value-chain optimizer etc.
  2. What capabilities do we need? Identify interlocking system of capabilities needed to succeed.
  3. What are we going to sell & to whom? Products based on capability system only.
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4
Q

Coherence creates value through?

A
  1. Exploiting a competitive advantage
  2. Creating efficiencies of scale
  3. Focusing on strategic investments on core capabilities
  4. Connecting between intent and decision-making
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5
Q

Lessons from coherence premium?

A
  1. Companies should focus on what they do best.
  2. Coherence in capability leads to greater returns.
  3. Capability is something you do better than comeptitors that is valued by customers.
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6
Q

Three strategies to use trends in your advantage

A
  1. Mix current products with trend to create new products.
  2. Infuse some, now populair, characteristics into the existing products, but keep them mostly the same
  3. Develop oferings that reaffirm the value of your existing products to counter negative perceptions created by trend.
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7
Q

Steps of trend addressing process

A
  1. Identifying trends that matter
  2. Conduct research
  3. Compare results
  4. Isolate potential strategies
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8
Q

Factors in Identifying trends that matter

A
  1. Ripple effects: Do trends influence multiple aspects of life
  2. Impact and scope of the trend
  3. Endurance: Will the trend remain important or will it be gone soon?
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9
Q

Factors in conducting research when analyzing trends

A

Two types of research:
1. What goals/benefits/values start to occur among customers?
2. What is the public’s belief/attitude toward our product category?

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10
Q

Factors in comparing results

A

Look at how public’s perception of your product category can be used to engage in the trend of even set a new trend.

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11
Q

Factors in isolating potential strategies

A

Which strategy fits circumstances best?
Augmentation, combination of counteraction

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12
Q

Three ways firms fail to leverage trends

A
  1. Ignoring outside-of-market trends
  2. Responding superficially to new trends: first gain understanding through trend identification process
  3. Waiting, as you will lose the first-mover advantage
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13
Q

How do price warriors make a profit?

A

They offer low prices causing them to earn low gross profit margins. They ofset this by being highly efficient, creating relatively high profit margins.

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14
Q

First question in response to low-cost rivals

A
  1. If it is stealing custome
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15
Q

What to do when low-cost competitors are stealing customers

A

Increase product differentiation

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16
Q

What to do when low-cost rivals are NOT taking over customers

A

Watch, but don’t take over the company

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17
Q

Central question when you want to increase product differentiation

A

Is there a large enough group of customers willing to pay more for the benefits our company offers?

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18
Q

Is there a large enough group of customers willing to pay more for the benefits we offer?
Answer both ways

A
  1. Yes: Increase product differentiation and restructure to gain efficiency and a lower price.
  2. No: Accept smaller company, take over rival, or start your own low-cost business to create synergy. Only do this when synergies will occur. Otherwise start selling solutions.
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19
Q

Three conditions to effective strategy in competition with low-cost competitors

A
  1. Use marketing tactics intertwined
  2. PErsuade consumers to pay for benefits (easier with well-executed dual strategy)
  3. Bring cost and benefit for customer in line
20
Q

Dual strategy in battle with low-cost rivals

A

Strategy in which a company offers both a premium line and a budget option, both under seperate brand. Better to take your own market share than let others do it.

21
Q

Requirements for successful dual strategy

A
  1. Traditional, premium, brand becomes more competitive
  2. Low-cost carrier gets some competitive advantage not otherwise obtained.
  3. low-cost carrier needs to aim for maximal profit
  4. Solutions need to be tailored to customer (in some degree).
22
Q

Steps in decision-making process

Also called the customer decision journey (CDJ)

A
  1. Consideration
  2. Evaluate
  3. Buy
  4. Enjoy, advocate, bond
23
Q

Consideration in Decision-making process

A

Customer decides he needs a product to fulfill certain needs. In this stage, through media exposure, the customer already eliminates a number of brands.

24
Q

Evaluation in decision-making process

A

Customer is looking for information from different sources. In this stage, some of the originally eliminated brands come back as possibility, and the other way around.

25
Q

Buy-stage in decision-making process

A

The customer buys product in store or on internet. This stage has a lot of points that can influence decision.

26
Q

Enjoy, advocate and bond stage in decision making process

A

This is after the purchase. If the customer is satisfied, this cycle can convert in enjoy, advocate and buy, creating a shorter cycle eliminating the consideration and evaluation stages.

27
Q

Elements of a customer decision journey driven strategy

A
  1. Understanding your customer decision journey: What do they say, see and do?
  2. Determine which touch points should be leveraged. Target touch points with greatest influence
  3. Allocate resources accordingly.
28
Q

New roles for marketing according to Branding in the Digital Age: Customer Decision Journey

A
  1. Orchestrator: coordinating marketing channels
  2. Publisher & content manager: Making sure content supply chain is running smoothly
  3. Marketplace intelligence leader: marketing data analytics.
29
Q

What is consumer behavior?

A

Consumer behavior is a set of processes or steps that lead toward a decision.

Consumer behavior can be studied to discover systematic behavioral patterns that can be leveraged to influence purchasing decisions.

30
Q

Elements of customer value

A
  1. Economic value
  2. Experiental value
  3. Social value
  4. Functional value
31
Q

Functional value

A

What can I do with the product?

31
Q

Economic value

A

How much the product is worth

32
Q

Social value

A

Value derived from social interaction, mostly about status, role in community. The more someone feels socially accepted because of the product, the higher the social value

33
Q

Experiental value

A

psychological and emotional value. Positive experiences with the product are important, causes brand loyalty.

34
Q

How does customer recognize need?

A
  1. Deprivation (in case of hunger or sleep etc.)
  2. Context
  3. Direct highlighting (someone brings need to your mind)
35
Q

What is perception

A

Process of information selection, organization and interpretation.

36
Q

Selective distortion

A

Interpretation of information that supports personal beliefs.

37
Q

Selective attention

A

Screening information as to only pick up information important to you

38
Q

what is a multi-attributable model

A

The weighing pf beliefs about the product’s attributes in order of importance

39
Q

Selective retention

A

Consumer only remembers bits of information that are in line with their own beliefs.

40
Q

How can marketers influence consumer preference?

A
  1. Changing the perception of product attributes or those of competitors
  2. Change in consumers’ importance order of product attributes
41
Q

What are non-compensatory models
Name two of those models

A

Non-compensatory models are models where the consumer considers one aspect of product that matters to them, not the complete offering

  1. Elimination by aspects: One aspect can discredit the entire product (negative)
  2. Familiarity/awareness: Because you heard of a brand before you’ll choose this one over the unknown brand. (positive)
42
Q

Important elements in the post-purchase evaluation

A
  1. Is the need satisfied and is the customer content with other benefits?
  2. Evaluation of product is largely influenced by expectations.
43
Q

What are core competencies?

A

Core competency is something the company does really well and that provides the customer with enormous benefits. It must be not totally copiable.

44
Q

Criteria of core competencies

A
  1. Provide wide access
  2. Difficult to imitate
  3. Should be something in the marketplace
  4. Perceived customer benefits are high.
45
Q

Why are strategic business units an obstacle for core competencies?

A

Strategic business units (sbu’s) cause:
1. Underinvestment in core competencies by diverting investment focus on non-core competencies
2. Bounded innovation (only innovation to benefit sbu)
3. resources not shared company-wide (innovation stays within sbu, they are imprisoned)

Marketing Management (6 decks)

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