Powerpoint 1 Flashcards
Marketing definition
Book Definition: Marketing is the art and science of creating value by designing and managing successful exchanges.
Dual Value Creation
The process by which companies create value for customers and build strong customer relationships in order to capture valuefrom customers in return
value
monetary, psychological, functional
value for firms
revenue, profits, customer lifetime value, user base, brand equity
Customer Centricity
is aligning your entire company’s development and delivery of products and services with the current and future needs of a select group of customers in order to maximize their long-term financial value to the firm. (Fader)
Outside-in strategy
Companies that have adopted an ‘outside in’ strategy are those with a focus on creating and keeping customers by delivering superior customer value. They do that by standing in the customer’s shoes and viewing everything the company does through the customer’s eyes.
Product-Centric Approach
Product Centric firms compete on price and quality•Aims to build scale and lower prices
Why is product centric approach hard for companies?
(1) Te c h n o l o g y: Product lifecycles have become much shorter and firms can copy innovation very quickly
(2) Global Competition
(3) Customer Power: highly informed and empowered customers
Functional Integration
eg. Amazon prime works with kindle and amazon fresh etc.
see image 1
eg. wechat all the applications etc,
Customers do not buy products, they buy benefits/value•
“Customers do not want to buy a quarter-inch drill, they want a quarter inch hole”
5 Cs
Customer Company Competitors Collaborators Context Strategic Analysis
What to think of about with the customer:
value:
target compatibility:
(1) customer needs
target attractiveness:
Positioning:
(4) Key decision and value drivers
Tactics:
Segmentation:
Profile: •Demographic, geographic, psychographic, etc.
Customer Lifetime Value (CLV)
Targeting
Analyze the company
SWOT Strengths Weaknesses (internal) Opportunities Threats (external)
competitors
Competitive Analysis
Market Space
Positioning: How a firm’s offerings are perceived relative to the competitive offerings
analyze the context
(1) market potential
(2) market attractiveness
(3) PEST macroeconomic trends political and legal economic social technological
the optimal value proposition
see image 2
the broad view steps of marketing
analysis > strategy > tactical implementation
Tactical implementation
see image 3
Product, Service, Brand, Price, Distribution, Communication, Incentives
Marketing Mix
4 Ps : Price, Product, Promotion, Place
marketing is not
advertising or selling or promotion
they are all components of it
marketing is a value- creation process (4 things it is )
(1) business discipline
(2) philosophy
(3) functional area
(4) specific activities
the important thing about using frameworks
How to use framework
it sidesteps trial error stuff
(1) generalize problem
(2) apply framework
(3) generalize solution
(4) make specific the solution
Marketing Myopia:
company’s exclusive focus on product development while losing sight of underlying customer needs.
eg. railroad companies forgot they were in transportation and let cars beat them
narrow business model
business model: describes fairly generic value-creation strategies related to a particular marketing activity, such as pricing, promotion, and distribution. Limits ability to serve as the basis for a more comprehensive analysis and planning.
broader
book wants to encompass all relevant aspects of value-creation process.
