Session 2 Flashcards
What is marketing (4 elements)
- Create
- Communicate
- Deliver
- Exchange
(an offering)
What are 3 elements marketing should optimize?
- Company value
- Customer value
- Value to the world
Empathic design (3 steps)
- Observe consumer
- Identify needs and pain points
- Brainstorm and develop solutions
What is a market (3) ?
- The set of actual and potential customers for a good or service
- People with desire and ability to buy
- End users, intermediaries
What are 4 eras of marketing?
- Production era
- Sales era
- Marketing orientation era
- Value based marketing era
What 4 orientations related to evolution of marketing?
- Product orientation
- Sales orientation
- Market orientation
- Value-based orientation
What is product orientation? (2)
- Compete on price and quality
- Assumed product would sell itself
What is sales orientation?
Focus on acquiring customers - focus on selling
What is market orientation?
Wants/needs of consumers should guide all firm actions
What is value-based orientation? (2)
- Value in broader sense
- Focus on retaining customers; functional integration
Why as product-based approach become less effective (3)?
- Technology: Product life cycle became much shorter
- Global competition: Firms can copy innovation very quickly
- Consumer Power: Highly informed and empowered customers
What do value-based firms do related to most valuable customers (3)
Understand, attract, retain
What do customers buy?
Benefits/value
How to calculate lifetime value (CLV) (ex for coffee store)
Price per coffee x coffee per visits (1) x visit per week x 52 week per year x # of years for which customers will buy there
How much times more expensive to attract customer vs retaining?
25x
