3Cs Flashcards
(33 cards)
What is a functional/utilitarian need?
Quality
Reliability
Low price
Convenience
Durability
Service
Efficiency
What is a symbolic/emotional need?
Sense of achievement
Being cool
Sense of belonging
Sense of Freedom
Feeling patriotic
Feeling Special
Being part of something
What is Customer Value
Perceived Benefits - Perceived Sacrifice
Benefits can be…
tangible and intangible
Example of intangible benefits is…
The ambiance at Starbucks
Why can marketing could go wrong?
Attending to wrong type of market research
Focusing on internal capabilities, not consumer needs
Overpromising (and reducing perceived quality)
Diluting the brand
What do people tend to do?
They tend to choose the default option.
What is consumer behavior?
the study of the process involved when consumes select, purchase, use and dispose of products services, ideas and experiences.
“Everything starts with…
the customer.”
What did Steve Jobs say?
We need to make happy the consumers not the engineers
What gives value to object?
Functional value, economic value, experiential value, social value.
Diamond and water paradox was invented by?
Adam Smith
Water great functional value but that is it. Whereas diamonds…
Economic value (hard to get one) + Experiential value (signaling their success) + Social value (belonging to a group)
What are the steps of consumer decision process?
Need recognition
Information Research
Evaluation & Choice/Purchase
Post-choice evaluation
How do consumers come to recognize a need?
Deprivation
Context
Memory based (recall, associate a brand w/ something)
Stimulus based (Attention grabbers)
Product
Direct highlighting
How does the consumer process competitive brand information and make a final value judgment?
Traditional multi-attribute model
How could you influence preference for your brand/product?
Change consumer beliefs about our attributes, either by redesigning or by changing perceptions
Change consumer beliefs about competitors attributes.
Change consumers’ importance weights (encourage consumers to attach more importance to the attributes our brand excels in).
Call attention to neglected attributes, or shift the buyer’s ideals.
Compromise Effect
3 prices, one low, one medium high, one very high
Post-choice evaluation
2 loops, one big to first attract your customer
one small to create loyalty
Consumer behavior takeaways
Understanding our consumers is a key aspect of developing a good marketing strategy and effective marketing plan.
Consumer decision process involves several steps.
But they play out differently for different products and for different groups of customers (not always as neat as described).
Consumers are not an island.
Take-Home Message Customer
Loss of consumers’ connection with the brand (downstream competitive advantage) would be WORSE than the loss of ALL upstream assets (upstream competitive advantage)
Everyone knows how to make and move stuff. People don’t know so much how to occupy this type of place in people’s lives and minds
3 criteria of Core competencies
Something a company does really well
Provides customers with major benefits
Not totally copiable
Core competencies formal definition:
Core competencies are the collective abilities and knowledge base in the organization. Particularly how to create customer relationship, deliver value, and communicate.
Obstacles to CC
Strategic Business Units (SBUs) lead to:
Underinvesting in CC
Imprisoned resources
Bounded innovation
