Introduction to Marketing- Module 1 Flashcards
(150 cards)
1
Q
What is one of the key elements of keeping customers in a dynamic world in which new startups are emerging constantly.
A
Branding
2
Q
What are Go-to-Markets strategies?
A
To understand the drivers that influence customers and see how these are implemented prior to making an investment.
3
Q
What is the main goal when thinking about customer centricity
A
Focusing on the right customer for strategic advantage
4
Q
Explain customer centricity? What is the aim?
A
- To understand the drivers that influence customers and see how these are implemented prior to making an investment.
-more profit in the long-term
5
Q
Who is associated /created the idea of customer-centricity?
A
Lester Wunderman
6
Q
Who created the product-centric model and “direct marketing”
A
Henry Ford
7
Q
Definition of “Product Centricity” business strategy
A
A business strategy focused on developing and selling products
8
Q
How is growth and profit achieved a product-centricity business model?
A
Growth=volume and market share.
Profit = producing and selling more, reducing costs via scale.
9
Q
Characteristics of Product-Centric Companies: brand vs customers
A
The brand is valued more than individual customers.
10
Q
Examples of Product-Centric Companies are
Apple, Walmart, Coca-Cola, Starbucks, Nordstrom – despite customer service, what are they lacking?
A
They lack individual-level customer understanding.
11
Q
Why is “Product Centricity is Under Threat”:
A
here are Four “Cracks” in the Foundation:
Technology – innovations are copied quickly; tech advantages are short-lived.
Globalization geography no longer offers protection or advantage.
Deregulation – industries are now more competitive and volatile.
Empowered Consumers – they demand more, switch brands easily, and have options globally.
12
Q
List the Four “Cracks” in the Foundation of product-centric business model.
A
-Technology
-Globalization
-Deregulation
- Empowered Consumers
13
Q
In less than 5 words, describe product- centric business model?
A
Product Centricity = “Create → Market → Sell → Repeat”
14
Q
Definition of Customer Centricity:
A
A strategy that aligns a company’s products/services with the current and future needs of a select set of customers to maximize long-term financial value
15
Q
Is customer-centricity’s Goal still Profitability:
A
yes. Customer centricity is not about being nice to customers; it’s about being smart in choosing which customers to serve best for long-term profit.
16
Q
Explain in your own words the Core Belief: Not All Customers Are Created Equal
A
- Identify, invest in, and serve the right customers (most profitable).
- Don’t over-invest in customers who don’t generate long-term valu
17
Q
Name 2 challenges of customer centricity
A
Organizational: Requires a full structural and cultural overhaul.
Financial: Costly upfront in systems, data, and personnel; requires long-term mindset.
18
Q
Customer Centricity Drives Profit Through: 3 core drivers
A
Customer acquisition, retention, and development (ARD)
19
Q
What does Customer Development entails?
A
cross-sell, up-sell, and increase purchase frequency.
20
Q
Paradox of Customer Centricity: What about the other “NOT SO WORTH IT” customers?
A
Still need customers for short-term revenue.
Treat them well enough to retain them, but don’t overspend.
Invest disproportionately in high-value customers.
21
Q
Customer Centricity equals Customer Friendliness?
A
NO
22
Q
In customer-centricity, Right Customers vs. Value
A
Long-Term Value
23
Q
Customer Centricity vs. Boutique model
A
It’s about resource allocation, not shrinking the customer base.
24
Q
Name 4 characteristics of Global brand: (PoBrocoPre)
A
Porous: Allow brand/product extensions
Broad: Adapt to dynamic market conditions
Consistent: Deliver stable core meanings across markets
Precise: Clearly differentiate from competitors
25
Brands vs. Products
Products must be localized; brands must be globally consistent
26
Explain how customers technically "own " the brands and not marketers? What about social media?
Customer experiences, emotions, and social influence shape brand equity.
Social media has given consumers the power to build or damage brands
27
Branding today is about 3 things:
relationship, meaning, and experience.
28
A Brand’s Role in the Four Stages of the Purchase Process
What are the Four Stages?
Living Stage – Awareness of a need
Planning Stage – Interest and consideration
Shopping Stage – Desire and evaluation
Experiencing Stage – Purchase, repurchase, and advocacy
29
What is a Brand Schema ?
Memory network that filters new brand info.
30
What is the Post-recession brand currency?
Trust
31
Customers buy based on_______________and ______ , not just product features.
Emotions and Schema fit
32
Brand relationships go beyond purchase—they build two things
loyalty and advocacy.
33
A strong brand forms 3 main things:
Brand communities (e.g., Harley-Davidson, Apple)
Emotional bonds
A sense of purpose or shared values
34
The essence of marketing is to have a very strong________
Brand
35
What is marketing primarily about?
Facilitating exchanges between buyers and sellers
36
In a seller's market, what should the focus be?
Product innovation and selling in high volume
37
In a buyer's market, what should the focus be?
Meeting customer needs, creating value, and building loyalty
38
Why is customer segmentation important?
To avoid trying to please everyone and serve specific customer groups
39
What strategies increase profitability over time?
Loyalty and cross-selling
40
What can a great customer experience do?
Turn customers into promoters or detractors
41
What are key elements for building lasting relationships in tough times?
Trust and authenticity
42
Marketing is the study of markets, focusing on exchanges between buyers and sellers. It applies to both profit and non-profit sectors, where the key element is _______
an exchange of value.
43
What is the definition of marketing?
Marketing is the study of markets, focusing on exchanges between buyers and sellers. It applies to both profit and non-profit sectors, where the key element is an exchange of value.
44
What is a seller's market?
In a seller's market, the seller has the power, and customers must come to them for a product. Marketing is product-focused, aiming for volume, cost reduction, and market share.
45
What is a buyer's market?
In a buyer's market, the buyer has the power due to competition. Marketing becomes customer-focused, understanding customer needs and delivering tailored products.
46
What is product-focused marketing?
Product-focused marketing is when a business focuses on creating the best product based on its expertise, driving profitability through volume and market share.
47
What is customer-focused marketing?
Customer-focused marketing is when a business focuses on understanding and delivering exactly what the customer wants, resulting in higher prices and customer loyalty.
48
How does profitability work in customer-focused marketing?
Profit comes NOT from VOLUME but from CREATING VALUE Businesses increase profitability by offering premium prices, building customer loyalty, and engaging in cross-selling.
49
Why is customer loyalty important?
Retaining customers is cheaper than acquiring new ones. Focusing on delivering continuous value leads to long-term profitability.
50
What does experience orientation involve?
Experience orientation includes managing the entire customer journey, including pre- and post-purchase experiences, as feedback spreads quickly through social media.
51
What is the importance of trust and authenticity in marketing?
Companies must be authentic and transparent as customers seek genuine value, especially during economic uncertainty.
52
What is product orientation in sustainable competitive advantage?
Product orientation refers to larger companies with greater market share and lower costs dominating the market.
53
What is marketing orientation in sustainable competitive advantage?
Marketing orientation involves companies that understand their customers, offer quality, and leverage customer data to be more successful.
54
What is experience orientation in sustainable competitive advantage?
Experience orientation means the customer co-creates value, and companies create a transformative experience.
55
What is trust orientation in sustainable competitive advantage?
Trust orientation refers to companies that build long-term trust and transparency to win over competitors.
56
How is profitability measured in PRODUCT orientation?
Profitability in product orientation is tied to MARKET SHARE.
57
How is profitability measured in MARKETING orientation?
It is tied to customer** loyalty and share of wallet.**
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How is profitability measured in EXPERIENCE orientation?
Profitability in experience orientation is measured by social networks, word of mouth, and referrals.
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How is profitability measured in TRUST orientation?
Profitability in trust orientation focuses on reducing costs and maintaining trust.
60
What is the overall focus of marketing?
Building strong brands by understanding market dynamics, customer needs, and providing value at every touchpoint.
61
What is the first core principle of marketing?
Customer Value – You must provide real, genuine value that fulfills the needs of the customer.
62
What is the second core principle of marketing?
Differentiation – You must deliver that value in a way that’s better than your competition.
63
What is the third core principle of marketing?
Segmentation, Targeting, and Positioning (STP) – You can’t serve everyone. Instead, segment the market into groups, target a specific group, and position your brand to meet their unique needs.
64
What are the Four P’s of Marketing?
The Four P’s of Marketing are
Product, Price, Promotion, and Place.
65
What does 'Product' refer to in the Four P’s of Marketing?
Product – What the seller offers in the exchange.
66
What does 'Price' refer to in the Four P’s of Marketing?
Price – What the buyer gives in return.
67
Explain 'Promotion' in the Four P’s of Marketing?
Promotion – How the seller communicates the product’s value (ads, sales, etc.).
68
What does 'Place' refer to in the Four P’s of Marketing?
Place – How the product is delivered to the buyer (store, online, download, etc.).
69
Can you provide a non-profit example of the Four P’s of Marketing?
Non-Profit Example: American Red Cross
## Footnote
Product: Emotional satisfaction, stickers, snacks, or class passes—not the blood itself. Price: Blood donation from the customer. Promotion: Messaging like 'save lives' or 'feel good.' Place: Mobile blood drives (e.g., blood mobiles in schools).
70
What is the conclusion about marketing?
******Marketing is about **creating VALUE, DIFFERENTIATING your offering, and strategically TARGETING segments** using product, *price, promotion, and place (4 Ps)*—a framework that works across industries, even in non-profits.
71
List the Three Core Principles of Marketing (CUdiSEg)
Customer Value
Differentiation
Segmentation, targeting, and positioning (STP)
72
There is a strategic framework adapted from “Market Leadership” by Treacy & Wiersema to help businesses gain a competitive advantage by choosing a clear market leadership strategy. What are 2 Foundational Principles of the Framework?
1. Know your market
2. Customers have the final say
73
Foundational Principles of the Framework:
Know Your Market: what does that entail? What is required?
Deep understanding of customer needs and competitive reactions is essential.
Requires market research, not assumptions.
74
*Foundational Principles of the Framework:* Customers Have the Final Say, explain this framework and how customer evaluated the products?
1. Customers evaluate products based on **three key value bundles:**
a) Operational Excellence – price, delivery, reliability.
b) Performance/Product Superiority – design, innovation, features.
c) Customer Intimacy – customization and meeting specific needs.
75
Operational Excellence -What do customers look for?
price, delivery, reliability. (excelling in efficient, reliable, cost-effective service)
76
Product Superiority –What do customers look for?
design, innovation, features. (excelling in product quality, innovation, or design)
77
Customer Intimacy –What do customers look for?
customization and meeting specific needs (excelling in tailoring services/products to individual customer needs)
78
How do customers evaluate the three key value bundles?
Customers prioritize one bundle and choose the best in that area, while expecting "good enough" in the other two
79
Fair Value and the Value Map: What is Fair value? What must happen to gain market leadership?
Fair Value = the level of cost and benefit that customers perceive as reasonable. You must provide fair value in two bundles and superior value in one to gain market leadership.
80
Do Fair value expectations evolve over time?
Yes, with increased competition—making it a moving target.
81
Explain How to Use the ' market leadership" Framework:
a) Define Attributes for each value bundle based on your specific market.
b) Assess Fair Value: determine customer expectations for each axis.
c) Plot Your Position: evaluate how your company performs on each axis relative to fair value.
d)Compare Competitors: position competitors on the same axes.
e) Choose a Leadership Strategy: aim to be the best at one dimension and good enough on the others.
82
Strategic Implications for the Business: why is your chosen leadership strategy important?
Your chosen leadership strategy shapes operations, structure, hiring, and resource allocation
83
Customer Intimacy → emphasize 3 things:
emphasize customer service, adaptability, market research.
84
Performance Superiority → emphasize 3 things:
prioritize R&D, creativity, flexibility.
85
Operational Excellence → emphasize 3 things
HET focus on efficiency, hierarchy, IT systems
86
To be a market leader, a company must have/do three main things:
1) Specialize in one value dimension.
2) Meet expectations in the others dimensions.
3) Continuously adapt as customer expectations (fair value) shift over time.
87
Segmentation, Targeting, and Positioning (STP framework):
Core Concept: STP Framework 3 main things:
Segmentation
Targeting
Positioning
88
What is segmentation in STP framework?
Divide the market into distinct groups based on shared characteristics.
89
What is Targeting in STP framework?
Evaluate the segments and choose one (or more) to serve.
90
What is Positioning in STP framework?
Tailor your product and brand messaging to appeal specifically to the selected segment
91
Why STP Is Essential; What does it avoid? What does it focus on?
Avoids offering "average" value that pleases no one (e.g., “lukewarm tea” analogy).
Focuses on customer-driven marketing — delivering tailored value to distinct market segments.
92
How can STP affect profitability?
Increases profitability by aligning offerings with segment-specific desires and willingness to pay.
93
List the 5 Segmentation Methods (How to divide markets):
1. Demographics
2. Benefits Sought
3. Behavioral
4. Cohort Analysis
5. Geographics
94
The DEMOGRAPHIC segmentation methods look at 3 factors:
Age (AGEI)
Gender
Education
Income
95
The "benefits sought" segmentation consideration
What value do people want (e.g., comfort vs. technology in shoes)?
96
Segmentation consideration for Behavioral research
Purchase frequency, brand loyalty, buying channel (online vs. in-store).
97
How do you analyze cohorts for segmentation?
Groups shaped by shared life experiences (e.g., Baby Boomers, Gen X, Millennials).
Millennials (Gen Y): Digitally native, demand customization, dislike mass marketing, socially responsible.
98
How do you analyze geographical location for segmentation?
Geographics: People with similar traits often live in similar areas (e.g., PRIZM clustering by zip code).
Physical location also influences online behavior.
99
Targeting: When you have to choose the Right Segment, how do you evaluate?
- Segment attractiveness
- Your competitive strength
- Competitive Landscape
100
With Targeting, what is the best target:
Best target: High segment attractiveness + strong competitive position.
101
Factors for Segment Attractiveness:
Size, growth, spending power, stability
102
Your Competitive Strength is related to what factors?
meet (customers') needs, brand position, ease of delivery.
103
Factors that affect Competitive Landscape
Number and strength of competitors, barriers to entry.
104
Once a segment is selected: what is the next step?
Design a unique marketing mix (4Ps): Product, Price, Place, Promotion
Tailor these elements to align with that segment's needs and preferences.
105
The STP framework enables companies to do what 4 Key things :
- Focus efforts effectively.
- Differentiate their offerings.
- Deliver targeted value.
- Position their brand for maximum relevance and profitability.
106
STP framework "Positioning " Definition
Defining your product or brand to meet the needs of a specific target segment.
107
It is the essence of branding—the strategic heart of how customers perceive your offering in the marketplace.
Positioning
108
What Is a Brand? (Legal definition)
A trademark (for legal protection
109
What is Brand (Marketing definition):
A promise or relationship with the customer—conveys benefits, consistency, and expectations.
110
What is Brand (Modern view)
brand is whatever the customer thinks it is. Perception = reality.
111
Brand Positioning Statement – Key Components and brief definitions
Target Segment – Who you’re trying to reach.
Point of Difference (PoD) – What uniquely sets your brand apart.
Frame of Reference (FoR) – What category or competitors you compare yourself to
112
2 Examples of a brand positioning statement: Apple and IBM: What's their targets, PoD, FoR?
Target = creative professionals/students; PoD = innovation & design; FoR = personal computers
IBM: Target = businesses; PoD = trust & reliability; FoR = business computing.
113
For Effective Positioning, it must Be:
**Clear & Simple** – Focused on a few key benefits.
**Defensible & Sustainable **– Not easily copied.
**Strategic** – Drives decisions on product development, pricing, and promotion.
**Selective **– You cannot be everything to everyone, or you’ll lose focus (lukewarm tea analogy again)
114
Compare Point of Parity (PoP) vs. Point of Difference (PoD)
Point of Parity (PoP): Necessary common features to be included in a category (e.g., fluoride in all toothpaste).
PoD: Differentiators that set your brand apart and should be relevant, desirable, and deliverable.
115
Compare Positioning vs. Messaging
Positioning = strategic (big picture: whom you serve and how).
Messaging = tactical (e.g., logos, colors, ads)
116
Case Example – Apple’s Name Change
When Steve Jobs dropped “Computer” from “Apple Computer”:
Define target, PoD, FoR
Target Segment: unchanged.
PoD: still innovation.
Frame of Reference changed: from computers to consumer electronics (e.g., iPhone launch).
117
__________defines how your brand is perceived and should guide all marketing decisions.
Positioning
118
Summarize characteristics of a good brand.
1) Relevant to the customer.
2) Distinct from competitors.
3) Deliverable and sustainable over time.
119
Strong brand positioning =
strong customer loyalty, competitive advantage, and market clarity.
120
Brand positioning is strategic but difficult to get right, why?
There are many possible target segments, points of difference, and frames of reference
121
Goal of brand positioning:
The goal is to home in on a clear, focused idea that defines the brand succinctly that will lead to the creation of a brand mantra
122
What is Brand mantra? (aka)
Aka "brand elevator pitch" A short, powerful internal statement that captures the essence of the brand.
123
Brand Mantra, also known as a brand elevator pitch (about 3 words or 30 seconds). It’s not a tagline, but a strategic internal guide that does what 3 main things:
1)Summarizes the heart and soul of the brand.
2)Drives all brand-related decisions.
3)Clearly communicates what the brand is—and what it is not.
124
125
What are Mental Maps?
A tool to understand how consumers perceive a brand.
126
How are Mental Maps built?
By collecting thought associations from customers through market research.
127
How are Mental Maps visualized?
Using circles and arrows: Larger circles = more frequently mentioned associations; Closer circles = top-of-mind attributes.
128
What do Mental Maps help distill?
5–10 core brand values narrowed down into a 3-word brand mantra.
129
What are the core ideas of McDonald's Mental Map?
Golden arches, meals, family fun, value.
130
What are specific associations for McDonald's?
Big Mac, fries, Egg McMuffin, consistent quality.
131
What is the anatomy of a Brand Mantra?
Brand Function, Descriptive Modifier, Emotional Qualifier.
132
What is the Brand Function in McDonald's mantra?
What category/product/service is it? (e.g., 'food' for McDonald's).
133
What is a Descriptive Modifier?
Clarifies the brand’s scope or uniqueness.
134
What is an Emotional Qualifier?
Conveys the emotional or psychological benefit.
135
What is Nike's Brand Mantra?
Authentic Athletic Performance
## Footnote
Focus: Athleticism, performance, realness ('Just Do It' spirit).
136
What is Disney's Brand Mantra?
Fun Family Entertainment
## Footnote
Focus: Entertainment-first, emotionally uplifting, family-friendly.
137
What is McDonald's Brand Mantra?
Fun Family Food
## Footnote
Focus: Food-first, consistent, affordable, family-oriented.
138
Why do Brand Mantras matter?
Used internally to align product development, advertising, and user experience.
139
What does a strong brand mantra reflect?
The brand’s function, uniqueness, and emotional appeal.
140
What are the characteristics of a strong brand mantra?
Short, inspirational, and precise.
141
What does a brand mantra prevent?
Prevents 'brand drift' and helps customers and employees identify, relate to, and advocate for the brand.
142
What is essential for long-term brand strength?
A strong brand mantra that sets clear boundaries for what the brand is and is not.
143
What is brand positioning?
The essence of a brand can be captured in a short, sharp mantra — 3 words or 30 seconds. Strong brand positioning defines the brand's unique space in the market.
144
What is experiential branding?
A brand is not just a product or promise — it’s an experience. Experiences are multi-sensory and emotional.
145
What senses should brands engage in experiential branding?
Brands should engage:
👁 Sight (visual identity, colors)
👃 Smell
👂 Sound (music, tone)
👄 Taste (if applicable)
✋ Touch (feel of product, environment)
146
What are the experiential dimensions of branding?
SENSE: All five senses contribute to perception.
FEEL: Emotional connection (happy, elegant, rebellious, etc.)
THINK: Cognitive stimulation (clever, surprising)
ACT: Behavioral response (inspiration to do/buy/share)
RELATE: Social and cultural identity (brand as part of lifestyle)
147
What is the customer-centric evolution in branding?
Shift from: Seller's market → Buyer's market → Connected community. Customers now co-create the brand experience (e.g. Nike ID, customizable products).
148
How should the 4 P's be applied experientially?
Product: More than features — includes customization, storytelling, interaction.
Place: Stores and channels should be immersive (e.g. Apple, Sephora, M&M World).
Promotion: Should evoke emotion and engage senses (music, visuals, interactivity).
Price: Can also be experiential (e.g. eBay auctions, Priceline 'name your price').
149
What are traits of strong brands?
Strong Brands ✅: Clear, consistent promises; Experiential & emotional; Strong brand equity; Consistency across channels; Loyal brand ambassadors; Distinctive (Disney ≠ McDonald’s); Adaptive & dynamic.
150
What are traits of a weak brand?
Weak Brands ❌: Vague, inconsistent messaging; Just cognitive or functional; Weak or forgotten positioning; Unreliable customer experience; Low customer retention; Easily confused with competitors; Stagnant or outdated.
