Week 1 (Two Readings)

Question 1

The “first principles” of marketing strategy

Answer 1

Robert W. Palmatier & Andrew T. Crecelius

Pg. 5-26

Question 2

Four first principles, or

underlying assumptions, that firms must address when designing and implementing an effective marketing strategy:

Answer 2

(1) All customers differ.
(2) All customers change.
(3) All competitors react.
(4) All resources are limited.

Question 3

(1) All customers differ.

Answer 3

Marketers can apply tools such as
segmentation, targeting, and positioning (STP) to understand
how customers differ and develop specialize offerings and
messages to meet the needs of unique customers or segments.

Question 4

(2) All customers change.

Answer 4

Due to intense global competition, products, markets, and customers are changing at a rapid pace, such that all customers change even faster

Question 5

(3) All competitors react.

Answer 5

trends are accelerated by thriving competitive

rivalries across markets and countries; all competitors react more rapidly and decisively than ever

Question 6

(4) All resources are limited.

Answer 6

Hmmm, duh?

Question 7

Business practitioners

and academics borrowed two aspects of military strategy:

Answer 7

Decisions and actions could lead to differential advantages

Question 8

In more recent decades, thought leaders have added facets, including the idea that a differential advantage must be ________ and the notion that a business strategy’s goal is to ______

Answer 8

sustainable

enhance firm performance

Question 9

Overall then, marketing strategy has evolved to incorporate five facets:

Answer 9

(1) decisions and actions,
(2) differential advantages over competitors,
(3) sustainable advantages,
(4) a goal to enhance firm performance, and
(5) the customer perspective

Question 10

The inconvenient yet inevitable conclusion is this:

Answer 10

No single marketing strategy

works for every firm, in every place, or for all time

Question 11

First principle #1: All customers differ →

managing customer heterogeneity

Answer 11

-customers diverge wildly in their needs, perceptions, and behaviors

-

Question 12

The most basic source of customer heterogeneity is _________, defined as each person’s consistent and stable manner of reacting to stimuli in a given domain

Answer 12

individual differences,

Question 13

A second source of customer heterogeneity is ________, the set of events that define a person’s life and
drive his or her preferences, independent of individual differences.

Answer 13

life

experiences,

Question 14

First principle #2: All customers change →

managing customer dynamics

Answer 14

All customer change as a fundamental assumption

of marketing

Question 15

Why?

Answer 15

New technology can radically change customer preference

Question 16

Sources of customer dynamics

Extant literature suggests three levels
of such sources:

Answer 16

1) Individual
2) Product market
3) Environment

Question 17

1) Individual

Answer 17

Dramatic change can follow discrete life events. Divorce leads to less consumption of an exspouse’s preferred brands; a new job may require eating out
more

Question 18

2) Product market

Answer 18

Customer responses to product/
service attributes and marketing efforts are contingent on
whether the offering is in its early, growth, maturity, or decline stage

Question 19

3) Environment

Answer 19

(i.e., economy, government, culture, or industry)

For example, as the popularity of
green ideals grew, so did consumer responses to corporate
strategies that focus on broader societal goals such as
protecting natural resources

Question 20

Firms that do not account for changing customer

preferences tend to fail

Answer 20

Word

Question 21

customer lifetime value (CLV)

Answer 21

compute the present value of a customer’s future cash flows, according to customer-level metrics
for acquisition cost, ongoing marketing costs, ongoing margin, expected retention rate, and a discount rate applied to
future profits

Question 22

First principle #3: All competitors react →

managing sustainable competitive advantage

Answer 22

All competitors react as a fundamental assumption

of marketing

Question 23

SCA

Answer 23

Sustainable competitive advantage

Question 24

First principle #4: All resources are limited →

managing resource trade-offs

Answer 24

All resources are limited as a fundamental

assumption of marketing

Question 25

New areas of research in marketing strategy,
consumer behavior, and marketing analytics: the
future is bright

Answer 25

Jagdish Sheth

Question 26

Marketing discipline was organized around three things:

Answer 26

1) around channels, which led to the institutional school;
2) around products which led to the commodity school;
3) and around functions or activities which is referred to as the functional school of marketing

Question 27

Marketing as a discipline (definition, description, and
explanation) is about a ______ years old.

Modern marketing practice is about _____-years old

Answer 27

100

200

Question 28

Starting in the sixties, marketing began to diverge into

three distinct subdisciplines:

Answer 28

Marketing Strategy,
Consumer Behavior,
and Marketing Analytics

Question 29

There
are six new areas of research which look very promising
toward revitalization of marketing strategy

Answer 29

(1) Creating Value for Customers
(2) Brand Value
(3) Discipline of Selling
(4) Science of Pricing
(5) Reverse Marketing

Question 30

(1) Creating Value for Customers

Answer 30

In other words, you can always win
customers if you offer a superior product with
a reasonable price in a customer-friendly service

Question 31

(2) Brand Value

Answer 31

Brands
independent of the products are becoming more and
more real and it is resulting in earning royalties through
licensing the brand.

Example Disney

Question 32

(3) Discipline of Selling

Answer 32

Selling is gaining respect in

marketing as a field of scientific inquiry

Question 33

(4) Science of Pricing

Answer 33

As mentioned before, industry
leads in pricing research. It has resulted in concepts of
psychological pricing; price deals (two for one, for example); and dynamic pricing in many services such as the
airlines and the ridesharing services

Question 34

(5) Reverse Marketing

Answer 34

It is also referred
to as demand-driven making (manufacturing) as
opposed to making the product, storing it in the warehouse, displaying at the retail outlet, and waiting for
customers to shop and buy it.

Question 35

(6) Role of Marketing in Society

Answer 35

Interdependence
between marketing and society is the heart of research
in macro marketing including the impact of public policy on consumption (demand) and on production (supply)

Question 36

Below are seven areas of new frontiers of research

Answer 36

1. Focus on User Experiences
2. Mindful Consumption
3. Shared Consumption
4. Cross-Cultural Consumption
5. Low-Income Consumers
6. Consumption of Free Goods
7. Digital Firs

Question 37

There are three types of “free” goods:

Answer 37

1) Social Media and search engines
2) parks and
recreation places; museums and public libraries; and of
course highways and freeways.
3) products and
services that are subsidized by the governments and the
world organizations. These include school meals, public
transit, non-thermal energy (solar, wind, electric) water,
and other municipal services

Question 38

There are at least six new frontiers of research in marketing analytics.

Answer 38

1. Text Mining
2. Emoji Analytics
3. Video Analytics
4. Imaging Research
5. Fuzzy Logic
6. Forensic Research

Question 39

Marketing strategy has evolved to incorporate:

Answer 39

1) Decisions and actions
2) Differential advantages, over competitors
3) Sustainable advantages
4) A goal to enhance firm performance
5) Customer perspective