marketing Flashcards
(88 cards)
marketing funnel
- awareness: making the customer know your brand exists
- Interest: making the offering that you are giving the customer play into the value proposition in the preference set they exhibit
- consideration: make the customer put your brand into the sets that they are considering choosing from
- conversion : putting a customer to spend their money in your product or brand
customer goodness definition
the degree that the customer impacts on the profitability of your company
four building blocks to create value for customers to capture value from customers
- analysis:
understanding the marketplace, understand their profile, motivations and path to purchase - planning:
how can the business plan their resources in order to convince the customer that they want to acquire of their brand
segmenting, targeting, positioning - execution:
defining the value proposition and go to market strategy
promotion and communication activities are undertaken - control
the customer with the marketing that you made bought in a promise and have expectations of the product
make the perceived value align with the product or service you deliver
make the customer satisfied
create value for customers self,
2 philosophies
->philosophy of maximizing shareholder value, maximize cash flow, customer is a means to the end
->at the core of the thinking focus on customer goodness, cant have in portfolio costumers with a negative cash flow potential, doest matter if its direct or indirect
4 Ps
pricing
promotion
placement
product
TAM
(Total Addressable Market)
Definition: TAM refers to the entire market demand for a product or service, assuming no competition and full market penetration. It represents the maximum potential revenue or market size if a product could reach 100% of its relevant market.
Example: If you’re launching a new type of smartphone, TAM would be the global market for all smartphones, including all potential customers worldwide.
Purpose: It helps assess the overall opportunity and the largest possible market, giving an idea of the product’s ultimate potential.
SAM
(Serviceable Available Market)
Definition: SAM is the segment of TAM that your product or service can address based on factors like geography, market segmentation, or product capabilities. It represents the portion of the market that your business can realistically target with its current offerings and resources.
Example: If your smartphone is designed specifically for North America, SAM would be the market for smartphones only in North America.
Purpose: It narrows down the market by focusing on a more realistic target based on the company’s capabilities and market scope.
SOM
(Serviceable Obtainable Market)
Definition: SOM is the share of SAM that you can realistically capture, considering your competition, budget, sales channels, and marketing efforts. It represents the actual portion of the market that your business can achieve in the short term.
Example: If you estimate that your smartphone can gain a 5% market share in North America within the first few years, SOM would be 5% of the North American smartphone market.
Purpose: SOM helps businesses focus on actionable goals and forecasts, showing what can be achieved with current resources and strategies.
insight
- the revelation of a significant gap between people’s aspirations and what they perceive as available, which can be turned as a business opportunity
- there is no market for a specific product like mascara there is a beauty for youthfulness and elegance (people want to be perceived a certain way that’s why they want to buy those kinds of products)
- the product is a means to the end
- deep underlying motivation for customers
customers self 2 philosophies
1 maximizing shareholder wealth, the only reason to put your customer in your portfolio is to maximize cash flows
2 at the core of the thinking there is customer goodness, customer acquisition costs cant be higher from the revenue the customer gives, in business to improve the quality of life of the customers
- Customer Health
Customer health refers to how customers’ physical and mental well-being influence their purchasing decisions and how businesses can support or enhance these aspects through their products or services. This can relate to promoting healthier lifestyles or ensuring that products align with customers’ well-being.
- Customer Self
Customer self refers to how individuals see themselves (self-concept) and how they express their identity through their purchasing behaviors. Customers are likely to buy products that align with their self-image or that help them express their aspirations.
- Customer Wealth
Customer wealth refers to the financial status of customers and how their economic situation impacts their purchasing decisions. This concept is essential in determining how businesses can offer value to customers at different income levels and provide products or services that match their budget and financial goals.
example customer health
Health-conscious brands like Nike promoting active lifestyles or Whole Foods offering organic, health-oriented products. or Mental health platforms like Headspace or Calm focus on mindfulness and emotional well-being.
example customer self
Apple appeals to customers’ self-concept by positioning its products as innovative and premium, aligning with customers who see themselves as tech-savvy and creative.
example customer wealth
Luxury brands like Rolex or Louis Vuitton cater to high-wealth customers who value exclusivity and status.
Discount retailers like Walmart or Aldi target customers looking for affordability and value.
Fishbein model
Consumer selects the alternative with the highest score computed on the basis of all its key atributes weighted for importance
What are the four components of the marketing mix?
Product management, Price management, Promotion management, Place management.
What are customer touchpoints?
Any occasion on which a customer encounters the brand and product, from actual experiences to personal or mass communications to casual observation.
primary goal of performance marketing vs traditional marketing
To pay for specific actions, such as clicks or sales.
build brand awareness, broad reach
Channels performance vs traditional marketing
Digital (Social media, affiliate)
TV, radio, print, billboards
Targeting traditional vs performance
Performance :Personalized, real-time optimization
traditional: broad, less personalized
flexibility performance vs traditional
P: quick adjusments based on performance
T: fixed slower to adjust
Budgeting traditional vs performance
P: Cost-effective, pay for results
T: Pre-set costs no direct link to results
