Week 8: Marketing Flashcards
What is a key issue in innovation?
Customer’s don’t always know what they want!
What is the Kano Model?
It is a way of expressing features against the satisfaction that they bring
What are basic needs and what satisfaction do they bring?
These are must haves and fail to excite people
What are performance needs and what satisfaction do they bring?
These are expressed as x per y and are generally what are expressed by the customers - the more the better
What are excitement needs and what satisfaction do they bring?
These are seldom expressed and new to the world, the better they are implemented, the greater the satisfaction, but if they are not there then the customers won’t be dissatisfied
What happens over time to the Kano model?
Expectations increase and excitement features become basic features
What do customers tend to focus on?
They focus on performance needs
What is the innovators dilemna?
It is that listening to your customers can satisfy their next generation needs, but if their suggestions are bad or if you stay too close to customers, you may be outmanoeuvred if disruptive innovation occurs
What is sustaining innovation?
Improved performance, efficiency, cost, evolutionary. It satisfies the customers current needs
What is disruptive innovation?
It is cheaper, lower performance, lower margins and meets customers future needs and established new markets - offers long term survival
What are some products that went wrong?
New Coke
The Apple Newton
What are some problems with traditional methods?
Customers are not able to answer questions beyond performance needs
Respondents are unable to articulate complex or emerging issues
Most customers are unable to identify breakthrough features
What are some customer insight methods?
Surveys, questionnaires, focus groups, ethnography
When did focus groups start and whos work involved them?
In the 1930s with Robert K Merton
How many focus groups take place in the US per year?
200,000
What is a focus group defined as?
A group of people assembled to participate in the discussion about a product before it is launched, or to provide feedback on a political campaign, tv series, etc
What do focus groups need?
Careful planning and appropriate analysis
What are the strengths of focus groups?
Concentrated amounts of rich data in own words on the topic of interest
Interaction of participants adds richness
Cost effective
Participants guide discussion
What are the limitations of focus groups?
Small number of participants
Limits generalisability
Group dynamics can be challenging
Time consuming and requires expert analysis
What is ethnogrpahy?
It is the observation of people using products or services in real situations
What methods of customer insight are more personal and accurate?
Repertory grid, interviews, ethnography
What customer insight methods are more representative of a larger group?
Focus groups, questionnaires, surveys
What are market analytics?
It is a way of using web data to observe patterns and trends, target new customers, drive traffic and increase sales
What are the stages of market analysis?
Industry overview
Target market
Competition
Pricing and forecast
What are the 5 common pricing models?
Cost-plus pricing Competitive pricing Price skimming Penetration pricing Price bundling
What is cost plus pricing?
Calculating costs and adding a mark-up
What is competitive pricing?
Setting a price based on what the competition charges
What is price skimming?
Setting a high price and lowering it as the market evolves
What is penetration pricing?
Setting a price low to enter a competitive market and later raising it
What is price bundling?
Combining products or services to increase value and therefore price
What are some price strategy issues?
Price is related to demand in varying ways, psychological pricing (looking cheaper or lucky), premium pricing (price represents value - low means cheap)
What is price elasticity?
The effect of price on quantity
What is innovation defined as?
The development and implementation of new ideas
The successful exploitation of ne ideas
What is innovation typology?
New products or services New production methods (or processes) New ways of business organisation New markets New ways to offer products on the market (business models)
What is technological innovation?
New or significantly modified technological products and processes, where technological novelty emerges, unlike improvements, from their performance characteristics
What percentage of the UK economy is services?
80 percent as of 2013, cf 45 percent in 1948
What is innovation typically a combination of?
Products and services
What can make innovation difficult?
The business environment
Regulation
Technology
What IS the technology readiness levels?
A measurement system used to assess the maturity level of a particular technology that was introduced by NASA in 1974
What ARE the technology readiness levels?
Levels 1 and 2 - Oberving principles and showing applications
Levels 3, 4 and 5 - Demonstrating proof of concept and validation
Levels 6 and 7 - Demonstrating prototype and validating it
Levels 8 and 9 - System completion and in use in successful operations
What happens to lots of technology?
It fails to move from research to innovation - known as the valley of death
What is Corporate Social Responsibility?
It is a concept whereby companies integrate social and environmental concerns in their business operations and in their interaction with stakeholders voluntarilty
What are some synonyms for CSR?
Business for Society and Environment, Corporate Responsibility, Sustainability…
What are the common themes of CSR?
It is a voluntary activity Multi-stakeholder orientation Practice and values Transparency Beyond philanthropy
What does Okoye say about CSR?
It is essentially a contested construct
What is a key theme of CSR?
Sustainability
What are externalities?
These are consequences of production born by society
The externalities of an economic transaction is an impact on a party that is not involved in the transaction
What is Carroll’s Pyramid of CSR?
The base is to be profitable and economic responsibilities
Then it is legal responsibilities
Then ethical responsibilities
Then philanthropic responsibilities
What is Badens pyramid of CSR?
Ethical Responsibilities as base
Then legal compliance
Then economic responsibilities
Who’s interests are corporations managed in?
Not just the stockholders but all stakeholders that have a legitimate interest in the corporation as well
What is at the centre of the stakeholder model?
An Organisation
What surrounds the organisation in the stakeholder model?
Providers of captial, suppliers, general public, community, pressure groups, competitors, employees, customers
What is the first step of stakeholder analysis?
Assess the influence and importance for each stakeholder
What is influence defined as in regards to stakeholders?
The extent to which they are able to affect the organisation (power)
What is importance defined as in regards to stakeholders?
The extent to which their problems needs and interests are affected by the organisations activities
What are primary stakeholders?
Those stakeholders that are both important and influential
What are secondary stakeholders?
Those who are either influential or important but not both
