value from market opportunities

Question 1

creating value from and for customers

Answer 1

customers receive products that satisfy their needs/wants through sales that translate into business profits

Question 2

market

Answer 2

set of past, current, and potential customers for an organisation

Question 3

types of markets

Answer 3

• business to consumer
• business to business
• consumer to consumer
• business to government
• government to consumer
• government to business

Question 4

market opportunity

Answer 4

arises when (unmet) customer needs align with an organisation’s resources and capabilities

Question 5

value from market opportunities depends on businesses’ ability to…

Answer 5

• understand customers’ needs
• create an ‘offering’ that satisfies needs and creates enough value so the customer will pay for the ‘offering’

Question 6

customer value

Answer 6

• value for customer; perceived/received value
• value from customer; customer lifetime value

Question 7

value for customer

Answer 7

• price OR benefits
• what customers get (benefits, quality, worth, utility) vs what they pay (price, costs, sacrifices)
• CV = Σ bj - Σ cj

Question 8

types of value

Answer 8

• functional/instrumental
• experiential/hedonic
• symbolic/expressive
• cost/sacrifice

Question 9

functional/instrumental

Answer 9

whether the product does its job

Question 10

experiential/hedonic

Answer 10

comes from experiences, feelings, and emotions a product evokes

Question 11

symbolic/expressive

Answer 11

psychological meaning a customer might attribute to a product (irrational)

Question 12

cost/sacrifice

Answer 12

customers maximise value from benefits by minimising cost and other sacrifices associated with buying, owning, using, or disposing of a product

Question 13

time value of money

Answer 13

• time of purchase
• eg someone buys Christmas bonbons for following year in the post-Christmas sales of previous year

Question 14

marketing def 1

Answer 14

process of engaging customers, building strong customer relationships, and creating customer value in order to capture value from customers in return

Question 15

marketing def 2

Answer 15

activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for stakeholders

Question 16

marketing mix

Answer 16

• product (create value)
• price (capture value)
• promotion (communicate value)
• place (deliver value)

Question 17

STP

Answer 17

segment, target, positionining

Question 18

segment

Answer 18

• slicing market into groups of potential customers that have unique characteristics, behaviours or needs
• demographic, firmographic, behavioural, psychographic

Question 19

target

Answer 19

select those segments whose needs can be best met (prioritising)

Question 20

position

Answer 20

position the product in target segment’s mind so it is perceived as the best option (beyond functional value) compared to competing alternatives

Question 21

value proposition

Answer 21

• set of benefits or values an organisation promises to deliver to consumers to satisfy their needs
• answers ‘Why should I buy your brand rather than a competitor’s?’

Question 22

VP - understand customers

Answer 22

• what are their jobs
• what pains do they experience
• what gains are they looking for

Question 23

VP - business response

Answer 23

• what products can help customers complete jobs
• pain reliever?
• gain creator?