Marketing Ch 18

Front 1

CUSTOMER-CENTERED COMPANY

Back 1

A COMPANY THAT FOCUSES ON CUSTOMER DEVELOPMENTS IN DESIGNING ITS MARKETING STRATEGIES.

Front 2

MARKET LEADER

Back 2

THE FIRM WITH THE LARGEST MARKET SHARE; IT USUALLY LEADS OTHER FIRMS IN PRICE CHANGES, NEW PRODUCT INTRODUCTIONS, DISTRIBUTION COVERAGE, AND PROMOTION SPENDING.

Front 3

QUALITY

Back 3

THE TOTALITY OF FEATURES AND CHARACTERISTICS OF A PRODUCT OR SERVICE THAT BEAR ON ITS ABILITY TO SATISFY NEEDS.

Front 4

MARKET-CENTERED COMPANY

Back 4

A COMPANY THAT PAYS BALANCED ATTENTION TO BOTH CUSTOMERS AND COMPETITORS IN DESIGNING ITS MARKETING STRATEGIES.

Front 5

BENCHMARKING

Back 5

THE PROCESS OF COMPARING THE COMPANY'S PRODUCTS AND PROCESSES TO THOSE OF COMPETITORS.

Front 6

VALUE-DELIVERY NETWORK

Back 6

THE NETWORK MADE UP OF THE COMPANY, SUPPLIERS, DISTRIBUTORS, AND CUSTOMERS WHO "PARTNER" WITH EACH OTHER TO IMPROVE THE PERFORMANCE OF THE ENTIRE SYSTEM.

Front 7

CUSTOMER DELIVERED VALUE

Back 7

THE DIFFERENCE BETWEEN TOTAL CUSTOMER VALUE AND TOTAL CUSTOMER COST OF A MARKETING OFFER--"PROFIT" TO THE CUSTOMER.

Front 8

CUSTOMER LIFETIME VALUE

Back 8

THE AMOUNT BY WHICH REVENUES FROM A GIVEN CUSTOMER OVER TIME WILL EXCEED THE COMPANY'S COSTS OF ATTRACTING, SELLING, AND SERVICING THAT CUSTOMER.

Front 9

MARKET CHALLENGER

Back 9

A RUNNER-UP FIRM IN AN INDUSTRY THAT IS FIGHTING HARD TO INCREASE ITS MARKET SHARE.

Front 10

BENCHMARKING

Back 10

THE PROCESS OF COMPARING THE COMPANY'S PRODUCTS AND PROCESSES TO THOSE OF COMPETITORS OR LEADING FIRMS IN OTHER INDUSTRIES TO FIND WAYS TO IMPROVE QUALITY AND PERFORMANCE.

Front 11

VALUE CHAIN

Back 11

A MAJOR TOOL FOR IDENTIFYING WAYS TO CREATE MORE CUSTOMER VALUE.

Front 12

MARKET FOLLOWER

Back 12

A RUNNER-UP FIRM IN AN INDUSTRY THAT WANTS TO HOLD ITS SHARE WITHOUT ROCKING THE BOAT.

Front 13

COMPETITOR ANALYSIS

Back 13

THE PROCESS OF IDENTIFYING KEY COMPETITORS; ASSESSING THEIR OBJECTIVES, STRATEGIES, STRENGTHS AND WEAKNESSES, AND REACTION PATTERNS; AND SELECTING WHICH COMPETITORS TO ATTACK OR AVOID.

Front 14

CUSTOMER SATISFACTION

Back 14

THE EXTENT TO WHICH A PRODUCT'S PERCEIVED PERFORMANCE MATCHES A BUYER'S EXPECTATIONS.

Front 15

RELATIONSHIP MARKETING

Back 15

THE PROCESS OF CREATING, MAINTAINING, AND ENHANCING STRONG, VALUE-LADEN RELATIONSHIPS WITH CUSTOMERS AND OTHER STAKEHOLDERS.

Front 16

COMPETITOR-CENTERED COMPANY

Back 16

A COMPANY WHOSE MOVES ARE MAINLY BASED ON COMPETITORS' ACTIONS AND REACTIONS.

Front 17

MARKET NICHER

Back 17

A FIRM IN AN INDUSTRY THAT SERVES SMALL SEGMENTS THAT OTHER FIRMS OVERLOOK OR IGNORE.

Front 18

COMPETITIVE MARKETING STRATEGIES

Back 18

STRATEGIES THAT STRONGLY POSITION THE COMPANY AGAINST COMPETITORS AND THAT GIVE THE COMPANY THE STRONGEST POSSIBLE STRATEGIC ADVANTAGE.

Front 19

GOALS OF RELATIONSHIP MARKETING

Back 19

1.ATTRACT NEW CUSTOMERS
2.CREATE TRANSACTIONS WITH NEW CUSTOMERS
3.RETAIN CURRENT CUSTOMERS
4.BUILD RELATIONSHIPS WITH CURRENT CUSTOMERS

Front 20

NEW MARKETING REALITIES (FEWER CUSTOMERS TO GO AROUND)

Back 20

1.CHANGING DEMOGRAPHICS
2.MORE SOPHISTICATED COMPETITORS
3.OVERCAPACITY IN MANY INDUSTRIES

Front 21

2 WAYS AN ORGANIZATION MAY IMPROVE ITS OFFER

Back 21

1.INCREASE TOTAL CUSTOMER VALUE BY STRENGTHENING THE BENEFITS OF ITS OFFER
2.REDUCE TOTAL CUSTOMER COST BY LOWERING ITS PRICE OR LESSENING THE BUYER'S TIME, ENERGY, & PSYCHIC COSTS.

Front 22

BASIS OF EXPECTATIONS

Back 22

1.CUSTOMER'S PAST BUYING EXPERIENCES
2.OPINIONS OF FRIENDS & ASSOCIATES
3.MARKETER & COMPETITOR INFORMATION & PROMISES

Front 23

TOTAL CUSTOMER SATISFACTION

Back 23

WHERE TODAY'S MOST SUCCESSFUL COMPANIES ARE RAISING EXPECTATIONS & DELIVERING PERFORMANCE TO MATCH.

Front 24

COMPANY BENEFITS FROM HIGHLY SATISFIED CUSTOMERS

Back 24

1.LESS PRICE SENSITIVE
2.TALK FAVORABLY TO OTHERS ABOUT THE COMPANY & ITS PRODUCTS
3.REMAIN LOYAL FOR A LONGER PERIOD

Front 25

CUSTOMER DELIGHT

Back 25

CREATES AN EMOTIONAL AFFINITY FOR A PRODUCT OR SERVICE.

Front 26

SHARE OF CUSTOMER

Back 26

AMOUNT OF CUSTOMER'S PURCHASING IN THEIR PRODUCT CATEGORIES

Front 27

2 WAYS T0 INCREASE SHARE OF CUSTOMER

Back 27

1.BECOMING THE SOLE SUPPLIER OF PRODUCTS THE CUSTOMER IS CURRENTLY BUYING
2.PERSUADING THE CUSTOMER TO PURCHASE ADDITIONAL COMPANY PRODUCTS

Front 28

CROSS-SELLING

Back 28

GETTING MORE BUSINESS FROM CURRENT CUSTOMERS OF ONE PRODUCT OR SERVICE BY SELLING THEM ADDITIONAL OFFERINGS.

Front 29

LEVELS COMPANIES CAN BUILD CUSTOMER RELATIONSHIPS AT

Back 29

1.ECONOMIC
2.SOCIAL
3.TECHNICAL
4.LEGAL

Front 30

MARKETING TOOLS TO DEVELOP STRONGER BONDS WITH CONSUMERS

Back 30

1.ADD FINANCIAL BENEFITS TO THE CUSTOMER RELATIONSHIP
2.ADD SOCIAL BENEFITS AS WELL AS FINANCIAL BENEFITS
3.ADD STRUCTURAL TIES AS WELL AS SOCIAL & FINANCIAL BENEFITS

Front 31

CONFORMANCE QUALITY

Back 31

FREEDOM FROM DEFECTS & THE CONSISTENCY WITH WHICH A PRODUCT DELIVERS A SPECIFIED LEVEL OF PERFORMANCE.

Front 32

MARKETERS ROLE IN HELPING THEIR COMPANIES DEFINE & DELIVER HIGH-QUALITY PRODUCTS & SERVICES TO TARGET CUSTOMERS

Back 32

1.BEAR THE MAJOR RESPONSIBILITY FOR CORRECTLY IDENTIFYING THE CUSTOMERS' NEEDS & REQUIREMENTS & FOR COMMUNICATING CUSTOMER EXPECTATIONS CORRECTLY TO PRODUCT DESIGNERS
2.MARKETING MUST DELIVER MARKETING QUALITY AS WELL AS PRODUCTION QUALITY

Front 33

STEPS IN SATISFYING TARGET CONSUMER NEEDS BETTER THAN COMPETITORS DO

Back 33

1.COMPETITOR ANALYSIS
2.COMPETITIVE MARKETING STRATEGIES

Front 34

IDENTIFYING COMPETITORS

Back 34

1.ALL FIRMS MAKING THE SAME PRODUCT OR CLASS OF PRODUCTS
2.INCLUDE ALL COMPANIES MAKING PRODUCTS THAT SUPPLY THE SAME SERVICE
3.INCLUDE ALL COMPANIES THAT COMPETE FOR THE SAME CONSUMER DOLLARS

Front 35

STEPS IN ANALYZING COMPETITORS

Back 35

1.IDENTIFYING THE COMPANY'S COMPETITORS
2.ASSESSING COMPETITORS' OBJECTIVES, STRATEGIES, STRENGTHS & WEAKNESSES, & REACTION PATTERNS
3.SELECTING WHICH COMPETITORS TO ATTACK OR AVOID

Front 36

HOW COMPANIES LEARN ABOUT COMPETITORS' STRENGTHS & WEAKNESSES

Back 36

1.SECONDARY DATA, PERSONAL EXPERIENCE, & HEARSAY
2.PRIMARY MARKETING RESEARCH WITH CUSTOMERS, SUPPLIERS, & DEALERS
3.BENCHMARK THEMSELVES AGAINST OTHER FIRMS

Front 37

CLASSES OF COMPETITORS

Back 37

1.WEAK
2.STRONG
3.CLOSE
4.DISTANT

Front 38

STRATEGIC BENEFITS RESULTING FROM THE EXISTENCE OF COMPETITORS

Back 38

1.MAY HELP INCREASE TOTAL DEMAND
2.MAY SHARE THE COSTS OF MARKET & PRODUCT DEVELOPMENT & HELP TO LEGITIMIZE NEW TECHNOLOGIES
3.MAY SERVE LESS ATTRACTIVE SEGMENTS OR LEAD TO MORE PRODUCT DIFFERENTIATION
4.THEY LOWER THE ANTITRUST RISK & IMPROVE BARGAINING POWER VERSUS LABOR OR REGULATORS

Front 39

"WELL-BEHAVED" COMPETITORS

Back 39

PLAY BY THE RULES OF THE INDUSTRY

Front 40

"DISRUPTIVE COMPETITORS"

Back 40

BREAK THE RULES, TRY TO BUY SHARE RATHER THAN EARN IT, TAKE LARGE RISKS, & SHAKE UP THE INDUSTRY.

Front 41

3 WINNING BASIC COMPETITIVE STRATEGIES

Back 41

1.OVERALL COST LEADERSHIP
2.DIFFERENTIATION
3.FOCUS

Front 42

MIDDLE-OF-THE-ROADERS

Back 42

FIRMS THAT DO NOT PURSUE A CLEAR STRATEGY, A LOSING BASIC COMPETITIVE STRATEGY

Front 43

3 STRATEGIES (VALUE DISCIPLINES) FOR DELIVERING SUPERIOR CUSTOMER VALUE

Back 43

1.OPERATIONAL EXCELLENCE
2.CUSTOMER INTIMACY
3.PRODUCT LEADERSHIP

Front 44

ROLES FIRMS PLAY IN THE TARGET MARKET

Back 44

1.LEADING
2.CHALLENGING
3.FOLLOWING
4.NICHING

Front 45

CONTINUOUS INNOVATION

Back 45

WHEN THE LEADER REFUSES TO BE CONTENT WITH THE WAY THINGS ARE & LEADS THE INDUSTRY IN NEW PRODUCTS, CUSTOMER SERVICES, DISTRIBUTION EFFECTIVENESS, & COST CUTTING.

Front 46

MARKET CHALLENGER STRATEGIES

Back 46

1.CHALLENGE THE LEADER & OTHER COMPETITORS IN AN AGGRESSIVE BID FOR MORE MARKET SHARE
2.PLAY ALONG WITH COMPETITORS & NOT ROCK THE BOAT

Front 47

FRONTAL ATTACK

Back 47

MATCHING THE COMPETITOR'S PRODUCT, ADVERTISING, PRICE, & DISTRIBUTION EFFORTS, ATTACKS THE COMPETITOR'S STRENGTHS RATHER THAN ITS WEAKNESSES.

Front 48

INDIRECT ATTACK

Back 48

ATTACKING THE COMPETITOR'S WEAKNESSES OR GAPS IN THE COMPETITOR'S MARKET COVERAGE.

Front 49

LINES A MARKET NICHER CAN SPECIALIZE ALONG

Back 49

1.END USER
2.A GIVEN CUSTOMER-SIZE GROUP
3.SPECIFIC CUSTOMERS
4.GEOGRAPHIC MARKET
5.QUALITY-PRICE (OPERATING AT THE HIGH OR LOW END OF THE MARKET)
6.SERVICE NICHERS
7.MULTIPLE NICHING

Front 50

3 MARKET LEADER STRATEGIES

Back 50

1.CAN FIND WAYS TO EXPAND TOTAL DEMAND
2.CAN PROTECT THEIR CURRENT MARKET SHARE THROUGH GOOD DEFENSIVE & OFFENSIVE ACTIONS
3.CAN TRY TO EXPAND THEIR MARKET SHARE FURTHER

Front 51

TOTAL CUSTOMER COST

Back 51

THE TOTAL OF ALL THE MONETARY, TIME, ENERGY, AND PSYCHIC COSTS ASSOCIATED WITH A MARKETING OFFER.

Front 52

PERFORMANCE QUALITY

Back 52

THE LEVEL AT WHICH A PRODUCT PERFORMS ITS FUNCTIONS