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A Business Foundations: Intro to Marketing Coursera > Introduction to Marketing- Module 2 > Flashcards

Introduction to Marketing- Module 2 Flashcards

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1
Q

What is the goal of customer analytics?

A

To use customer data to build strategies that extract and grow value from each customer.

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2
Q

What are the three strategic pillars of customer analytics?

A
  1. Performance Superiority
  2. Operational Excellence
  3. Customer Intimacy / Customer Centricity
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3
Q

What does Performance Superiority entail?

A

Offering the best product, exemplified by brands like Apple and BMW

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4
Q

What is Operational Excellence?

A

Providing the lowest cost and efficient delivery, as seen in companies like Walmart and IKEA.

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5
Q

What is Customer Intimacy / Customer Centricity?

A

Focusing on understanding and serving individual customers better.

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6
Q

What is the focus of Fader’s module?

A

Customer Centricity — its definition, importance, and implications

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7
Q

What is the traditional business strategy?

A

Product Centricity, which emphasizes developing great products and scaling production.

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8
Q

What metrics are used in Product Centricity

A

Market share and volume

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9
Q

How do companies seek growth in a product-centric model?

A

By selling to new customer segments/geographies and developing new products/variations.

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10
Q

What is the mental model of product-centric organizations

A

“We’re great at making this—how else can we sell it?

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11
Q

What is the ‘Fish in Water’ analogy?

A

It illustrates how companies may not realize they are product-centric until they experience customer centricity

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12
Q

What key questions arise when shifting to customer centricity?

A
  1. Should we continue doing things the old way?
  2. Is there more value in shifting to a customer-centered strategy
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13
Q

What are the key takeaways regarding Product and Customer Centricity?

A

Product Centricity focuses on scaling product expertise, while Customer Centricity emphasizes individual customer value over tim.

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14
Q

What does the shift to customer centricity require? MOM

A

mental model
organizational structure
metrics, and strategic priorities.

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15
Q

One of the things that we’ve discovered over the years, is that producing lots of quantities of this product or service that we want to deliver, not only helps us make greater revenue. But also makes what?

A

The fact that we’re producing and distributing so, so much of it also brings our cost down.

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16
Q

What is the core focus of most traditional businesses?

A

High volume, low cost.

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17
Q

For the product-centric approach what are the main goals, what are they?

A

Maximize shareholder value
Maximum profits through volume/cost reductions
Key performance indicators (such as market share)

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18
Q

Key Reasons Why Product-Centricity Is Losing Ground

A
  1. Commoditization
  2. Smarter, More Informed Customers
  3. Instant Global Distribution
  4. Global Mindset + Deregulation
  5. Demand for Bundled, End-to-End Solutions
  6. Rise of Customer Data and Analytics
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19
Q

Commoditization Explain

A
  • Technology accelerates product imitation, shortening life cycles.
  • What once gave companies a temporary monopoly is now quickly matched by competitors.
  • Businesses must now innovate continuously, making it harder to stay ahead.
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20
Q

Smarter, More Informed Customers: Explain

A
  • Customers today are active decision-makers, not passive recipients.
  • The internet and IT empower them to research, compare, and demand more.
  • They expect tailored experiences, not just mass-produced products
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21
Q

Instant Global Distribution: Explain

A

-Services like FedEx, UPS, DHL have erased geographic barriers.
-Even if a company has a great product, customers can easily access alternatives from across the globe.
-Global access undermines local product-centric advantages.

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22
Q

Global Mindset + Deregulation: Explain

A

-Customers are more open to global providers.
-Deregulation in many industries has increased competition.
-In some cases, re-regulation also creates a more competitive, less protected environment

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23
Q

Demand for Bundled, End-to-End Solutions: explain and provide an example

A
  • Customers now want solutions, not individual products.
  • Expect companies to act as trusted advisors, integrating services—even low-margin ones—for overall value.
    Example: IBM’s pivot from hardware maker to solution provider with higher-margin services.
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24
Q

Rise of Customer Data and Analytics: modern technology

A

Modern technology enables collection and analysis of customer data.

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25
Unlike early product-centric giants (e.g., Henry Ford), today’s firms can:
- Track who buys what, when, and for how long - Personalize offerings - Segment and prioritize high-value customers - This data-driven insight opens the door to more profitable customer-centric models.
26
Product-centricity still works in many industries, but due to ___, ____, ___, and ______ to these structural changes in firms should rethink their strategic approach. Customer centricity—focusing on the value of individual customers over time—may now offer a more sustainable advantage.
technology, customer behavior, competition, and data availability,
27
Core Concept: Some companies have successfully pivoted from a product-centric to a customer-centric model by leveraging_______and ________ to personalize experiences, optimize offerings, and gain competitive advantage.
customer data and loyalty programs
28
What strategy did Harrah’s use to compete with larger casino chains?
Harrah’s implemented a data-driven loyalty program to track customer behavior and personalize interventions.
29
What kind of customer data did Harrah’s collect?
Game preferences, dining choices, room and entertainment habits, and behavior patterns (e.g., when a customer was likely to stop playing).
30
How did Harrah’s use behavioral thresholds in their strategy?
They identified loss limits (e.g., $150) and intervened with offers (e.g., free meals) to reset the customer’s mental account and retain engagement.
31
What was the main goal of Harrah’s personalized offers?
To change customer behavior in real time and extract more lifetime value.
32
What problem was Tesco facing in the UK grocery market?
Intense competition from large chains like Sainsbury’s and later, Walmart.
33
What was Tesco’s key data strategy?
Using a loyalty program to track household buying patterns and send targeted coupons to increase purchases.
34
How did Tesco respond to Walmart entering the UK market?
Identified vulnerable customers and products they might switch for, then sent specific coupons to retain them.
35
What was the common success factor between Harrah’s and Tesco?
Both used customer data to shift from a product-centric to a customer-centric model, increasing competitiveness and profitability.
36
Customer-Centric Business Models: Building a business around deep understanding of what? do you want to go broad?
Each customer; Not just broad customer segments, but individual behaviors and preferences.
37
Briefly explain the core principle of direct marketing?
its core principle is building data-driven customer relationships.
38
From whom and when did direct marketing approach emerged?
This approach emerged in 1967, formalized by Lester Wunderman.
39
2 main and Key Direct Marketing Practices
1. Tracking customer behavior 2. Using data
40
When tracking customer behavior, what are key questions to be asking? (4)
1. Who bought what 2. Purchase frequency and value 3. Returns and inquiries 4. Customer service interactions
41
When looking at customer data, what are key things to look for? (4)
-Identify valuable customers -Tailor messaging and offers -Design products for top customers -Attract similar high-value customers
42
3 Important Marketing Terms Originated from Direct Marketing
1. Customer Lifetime Value (CLV) 2. Segmentation 3. Personalized messaging and targeting
43
Modern Application of direct marketing: What time of companies could benefit from it?
Any company that tracks and engages with customers over time can benefit from direct marketing principles.
44
Relevance of direct marketing in the big data era?
Direct marketing principles are even more powerful and relevant in the age of big data.
45
Does direct marketing concepts and ideas apply to all industry
Encouragement to read books on direct marketing, regardless of your current industry or mindset.
46
Customer Centricity equals Excellent Customer Service?
Customer Centricity ≠ Excellent Customer Service
47
Customer centricity is not about treating everyone well—it's about knowing which customers to invest in based on their_________
lifetime value (LTV).
48
A customer-centric firm uses data and insights to do what?
understand, retain, and grow valuable customers over time
49
Walmart – Operational Excellence Do they have loyalty program?
No loyalty program, limited
50
Walmart – Operational Excellence what is the main focus?
sell in volume and lower costs.
51
Is walmart Product-centric OR customer-centric?
product-centric
52
Apple – Performance Superiority Focuses on designing great ______ customer vs/ product centric?
products, not segmenting users. Product centric, small insight into customers
53
Starbucks – Local vs. National Customer Centricity
Locally customer-centric (e.g., baristas know you).
54
Starbucks Nationally, lacks what? Describe how Starbucks demonstrates customer centricity at a local level but struggles with it at a national level.
integration of customer data (your “usual” isn’t known outside your home store).
55
Customer centricity requires what?
integration across stores, platforms, and channels for a consistent, personalized experience.
56
What is essential to implement customer centricity?
Collecting and analyzing customer data is essential to
57
Firms must shift from "serving all equally" to what?
serving based on value.
58
Customer Centricity: Long-term thinking, selective focus, data-driven insights, and aligning the whole organization (including R&D and sales) around delivering what to who?
value to future high-LTV customers.
59
Shifting to customer centricity may feel countercultural or even risky why? What does it require from data and organizational structures?
- Requires data, predictive models, and faith in future returns. - Demands changes in organizational incentives, culture, and R&D orientation
60
In a customer-centric company, R&D (research and development) focuses on creating solutions tailored to the needs of the company's
most valuable customers
61
In a product-centric company, R&D usually focuses on building what?
the next breakthrough product.
62
Describe a scenario where a company might benefit from adopting a forward-looking perspective in its sales incentives.
A company that sells fitness equipment might benefit from adopting a forward-looking perspective in its sales incentives by focusing on the lifetime value of customers rather than just immediate sales. For example, instead of rewarding salespeople based solely on the number of treadmills sold in a month, the company could calculate the potential long-term value of each customer based on their likelihood to purchase additional products, such as accessories or maintenance services.
63
The overarching objective in both product-centric and customer-centric firms is:
➤ Maximize shareholder value (profits in the short and long run, accounting for time value of money).
64
Misconception: Profit is only tied to product-centric strategies, TRUE / FALSE
not true. Customer-centricity can achieve profit more efficiently and sustainably
65
Customer-centricity celebrates differences in customer value (heterogeneity), and aims to:
Identify, invest in, and retain high-value customers ▸ Predict future value using data, models, and forecasting ▸Focus is on future profitability, not just historical value.
66
Core Metrics and Tactics: Customer-centric firms are driven by:
CLV (Customer Lifetime Value) A forward-looking estimate of how much profit a customer will generate.
67
Three Pillars of Customer Strategy Elevated from low-level marketing tasks to core business functions:
Customer Acquisition – Who should we target? How much are they worth? Customer Retention – Should we keep everyone? Who gets priority? Customer Development – How do we grow the value of existing customers?
68
The 3 core business functions need to _____, ______ and _____into the organization chart
Customer acquisition, retention and development, need to be strategic, data-driven, and integrated into the org chart.
69
Organizational Structure Must Change: Product-centric firms organize around ______and ________vs Customer-centric firms should organize around ___________ and the _______they bring
PRODUCTS or departments. CUSTOMER Segment and the value they bring
70
Product-Centric is (divergent vs convergent) thinking? What does that mean about what they ask themselves on a regular basis?
divergent: meaning they think about questions like “What can we do with this product?” They Push product to market
71
Customer-Centric is (divergent vs convergent) thinking?
Customer-Centric (Convergent Thinking) think CC. They ask questions like "“What more can we do for this customer?”
72
In product-centricity: success = product expertise In customer-centricity: success = relationship expertise
Product: Product expertise customer: relationship expertise: Powered by data, segmentation, modeling, forecasting ▸ Helps build defensible competitive advantages ▸ Unlike products, customer insights are not easily commoditized
73
What is the key to success in a customer centric world?
Celebrating customer heterogeneity
74
What is customer heterogeneity?
The idea that not all customers are created equal. The idea that some customers are just inherently much more valuable, much more profitable than other customers. See
75
What do you think are the key tactics that drive profitability in a customer centric world?
76
Explain the significance of customer lifetime value (CLV) in a customer-centric approach.

A Business Foundations: Intro to Marketing Coursera (2 decks)

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