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222 Cards in this Set
- Front
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The companies at greatest risk are those that fail to __________________ their customers and competitors and to __________________ their value offerings.
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p. 5
monitor their customers and competitors continously improve |
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What are two definitions of Marketing?
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1. identifying and meeting human and social needs.
2. meeting needs profitably. p.5 |
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What is the AMA's formal definition of Marketing?
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"Marketing is an organizational function and a set of processes for creating, communicating, and delivering value to customers and for managing customer relationships in ways that benefit the organization and its stakeholders." p. 5
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Marketing Management is the
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art and science of choosing target markets and getting, keeping, and growing customers through creating, delivering, and communicating superior customer value.
p. 5 |
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We can distinguish between a ______ and a _______ definition of marketing.
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social and managerial
p.5 |
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Which defition of Marketing shows the role it plays in society?
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social
p.5 |
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The aim of marketing is
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to make selling superfluous
p.5 |
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What are the 10 types of entities marketing provides? p.6
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goods, services, events, experiences, persons, places, properties, organizations, information, and ideas
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A marketer is someone who seeks a ___________.
p. 7 |
response-attention, a purchase, a vote, a donation
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A marketer seeks a response from a ________.
p.7 |
prospect
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What are the eight demand states which marketing managers seek to influence? p. 8
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negative demand, non-existent demand, latent demand, declining demand, irregular demand, full demand, overfull demand, unwholesome demand
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Economists describe a market as ...
p. 8 |
A collection of buyers and sellers who transact over a particular product or product class.
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What are the five basic markets? p. 9
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Manufacturer, Resource, Government, Intermediary, and Consumer
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Marketers define market as.....
p. 9 |
various groupings of customers
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According to Marketers, Seller constitute the _______ while buyers consistute the ______.
p. 9 |
industry and market
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What are the key customer markets? p. 9
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consumer, business, global, and non-profit
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Which customer market represents companies selling mass consumer goods and services?
p. 9 |
Consumer markets
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Which customer market represents companies selling business goods and services to other well-trained and well-informed professional buyers? p. 9
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business markets
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An industry sends ______ and ______ to the market while a market sends _______ and _______ to the industry.
p. 9 |
communication and goods/services
money and information |
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Which customer market comprises of companies selling goods and services in the global market place?
p. 10 |
Global Markets
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What is the marketplace?
p. 10 |
A physical location such as a store you shop in.
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What is the marketspace?
p. 10 |
digital - when you shop on the Internet
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What is a metamarket?
p. 10 |
Cluster of complementary products and services that are closely related in the minds of onsumers but spread across a diverse set of industries
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What is an example of a metamarket?
p. 10 |
Automobile metamarket = auto manuf, spare parts dealers, service shops, auto mags, classified auto ads in newspapers, and auto internet sites
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What is the marketing planning process?
p. 11 |
Consists of analyzing marketing opportunities, selecting target markets, designing marketing strategies, developing marketing programs, and managing the marketing effort
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What are the five key functions for a CMO?
p. 11 |
1. Strengthening the brands
2. Measuring marketing effectiveness 3. Driving new product development based on cust needs 4. Gathering meaningful customer insights 5. Utilizing new marketing technology |
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______ are the basic human requirements.
p. 12 |
Needs
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When needs are directed to specific objects which might satisfy them it is called a ________.
p. 12 |
want
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_________ are shaped by our society.
p. 12 |
Wants
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_____ are wants for specific products backed by an ability to pay.
p. 12 |
demands
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True or False - Marketers create needs.
p. 12 |
False
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True or False - Marketers are the sole influence on wants.
p. 12 |
False
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What are the five types of needs a marketer must deal with?
p. 12 |
stated needs, real needs, unstated needs, delight needs, secret needs
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Which type of need does this represent? The customer would like to dealer to include an onboard nvaigation system.
p. 13 |
delight need
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What type of need does this represent? A customer wants to buy a Mercedes Benz so that others admire him.
p. 13 |
Secret need
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Marketers start by diving the market into ________.
p. 13 |
segments
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How do marketers profile distinct groups of buyers?
p. 13 |
by looking at demographic, psychographic, and beavioral differences among buyers
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After identifying segments marketers decides on what?
p. 13 |
target markets which represent the greatest opportunity
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How does companies address needs?
p. 13 |
by putting forth a value proposition which is a set of benefits that they offer to customers to satisfy their needs
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An intangible value proposition made physical is called an _______
p. 13 |
offering
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A _____ is an offering from a known source.
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brand
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All companies strive to build a ______, ______, and _____ brand image.
p. 13 |
strong favorable and uique
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What is the definition of value?
p. 14 |
sum of perceived tangible and intangible benefits and costs to customers
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what is the customer valud triad?
p. 14 |
qsp - quality, service, and price
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How can we phrase the definition of marketing in terms of value? p. 14
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identification, creation, communication, delivery and monitoring of customer value
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This reflects a person's judgment of a product's perceived performance in relationship to expectations.
p. 14 |
Satisfaction
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How does the marketer reach the target market?
p. 14 |
marketing channels
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What are the three types of marketing channels?
p.14 |
communication, distribution, and service channels
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Competition includes all the _____ and _____ offerings and substitutes a buyer might consider.
p. 14 |
actual and potential
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The marketing environment consists of the _____ and ______.
p. 14 |
task environment and the broad environment
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What is the task environment? p. 14
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actors engaged in producing, distributing, and promoting the offering - company, suppliers, distributors, dealers, and the target customer
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What are the six components of the broad marketing environment?
p. 15 |
demographic, economic, physical, technological, political-legal,environment, and social-cultural
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What are the major societal forces which dictate new marketing realities?
p. 15 |
network information tech, globalization, deregulation, privatization, heightened competition, industry convergence, consumer resistance, retail transformation, disintermediation
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what has recently struck terror into the hearts of many established manufacturers and retailers?
p. 16 |
disintermediation in delivery of products by intervening between the traditional flow of goods
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What is reintermediation?
p. 16 |
those companies which added online serices to their existing "brick-and-mortal" offerings
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What are the new consumer capabilities in the modern era? p. 16
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increase in buying power, variety of available goods and services, easy availability of information, ease in placing and receiving orders, compare notes online, amplified voice to influence others
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What are new company capabilities in today's environment? p. 17
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internet, research data available, speed of internal communication, communication with customers, targeted marketing, mobile marketing
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What is one of the oldest concepts in business? p. 18
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production concept - that consumers will prefer products that are widely available and inexpensive
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Which marketing idea proposes that consumers favor products that offer the most quality, performance, or innovative features? p. 18
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Product concept
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Which marketing concept emerged in the mid-1950's and shifted marketing to a customer-centered "sense-and-respond" philosophy? p. 18
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Marketing concept
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What is the difference between reactive and proactive marketing orientation (Marketing concept)? p. 19
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reactive is to meet customers expresseds needs, proactive is to meet customer's latent needs. companies that do both have a total market orientation
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Which marketing concept is based on development, design, and implementation of programs, processes, and activities that recognize their breadth and interdependencies? p. 20
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Holistic
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Which marketing concept aims to build mutually satisfying long-term relationships with key constitutents? p. 20
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Relationship marketing
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What are the four components of holistic marketing? p. 21
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Internal marketing
Performance marketing Integrated marketing Relationship marketing |
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What is a marketing network? p. 22
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company and its supporting stakeholders - customers, employees, suppliers, distributors, retailers, and agencies, etc.
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PRM is _____. p .22
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partner relationship management
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What are the four broad kinds of marketing-mix tools defined by McCarthy? p. 22
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four Ps of marketing: product, price, place, and promotion
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Which marketing mix does brand name fall into? p. 22
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product
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Which marketing mix does credit terms fall into? p. 22
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price
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The four Ps represent the ______ view of the marketing tools available for influencing buyers. p. 23
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seller's
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What is a complementary breakdown of marketing activities to the four Ps? p. 23
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SIVA - Solution, Information, Values, and Access
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What are the four dimensions of SIVA? p. 23
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Solution, how can I solve my problem?
Information, where can I learn more about it? Value, what is the total sacrifice to get this solution Access, where can I find it |
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What are the six types of marketing organizations? p. 26
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growth champions, marketing masters, senior counselors, best practice advisors, brand builders, and service providers
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Performance marketing addresses...
p. 26 |
returns to the business from marketing plus broader legal, ethical, social, and environmental effects
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The societal marketing concept holds that...
p. 27 |
"the organization's task is to determine the needs, wants, and interests of target markets and to deliver the desired satisfactions more effectively and efficiently than competitors in a way that preserves or enhances the consumer's and society's long-term well being.
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What are the marketing management tasks? p. 28
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Develop strategy + plan
Capture insights Connect with customers Build strong brands Shape market offerings Delivering value |
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Where does the view that marketing should follow production work? p. 34
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in economies marked by goods shortages and where consumers are not fussy about quality, features, or style
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What are the three phases of the value creation and delivery sequence? p. 34
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choosing the value - homework before product
providing the value - determine features, prices, etc. communicating the value - utilize means |
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What is STP? p. 34
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segmentation, targeting, positioning - essence of strategic marketing
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What are the 3 V's of marketing as put forth by Nirmalya Kumar from the London Business School? p. 35
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1. define value segment - customers/needs
2. define value proposition 3. define value network - how to deliver service |
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Describe Frederick Webster's view of marketing? p. 35
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1. value-defining processes
2. value-developing processes 3. value-delivering processes |
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Define value chain. p. 35
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tool for identifying ways to create more customer value - has nine strategically relevant activities (5 primary and 4 support)
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What are the five primary activities of value chain? p. 35
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inbound logistics, operations/conversion to final products, outbound logistics, marketing/sales, and service
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What are the four support activities of the value chain? p. 35
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procurement, technology development, HR management, and firm infrastructure
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What are the core business processes which impact the value chain? p. 35
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market-sensing process, new-offering realization process, customer acquisition process, customer relationship management process, fulfillment management process
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What are the three characteristics of a core competency? p. 36
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source of competitive advantage
applications in a wide variety of markets difficult for competitors to imitate |
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What is the difference between distinctive capabilities and core competencies? p. 36
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"core competencies" refer to areas of special technical and production expertise; distinctive capabilities describe excellence in broader business processes.
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What are the three distinctive capabilities of market-driven organizations according to Wharton's George Day? p. 37
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market sensing, customer linking, channel bonding
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How do you become a vigilant organization? p. 37
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learn from the past, evaluate the present, envision the future
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What are the three key management questions addressed by the holistic marketing framework? p. 38
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value exploration - how to find new opps?
value creation - how to create more new value? value delivery - how to use capabilities to deliver? |
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What are the three rows and columns in a holistic marketing framework? p. 38
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Rows - value exploration, creation, and delivery
Columns - customer focus, core competencies, collaborative network |
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How do you find new value opportunities? p. 39
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understand customer's cognitive space, company's competency space, and collaborator's resource space
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What are the value creation skills for marketers? p. 39
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identify new customer benefits from their view
utilize core competencies from its business domain select and manage business partners from its collaborative networks |
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What are the three key areas of strategic planning? p. 39
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managing a company's businesses as an investment portfolio, assessing each business's strength by considering market growth rate and fit and position, and establishing a strategy
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What are the four organizational levels of most companies? p. 39
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corporate, division, business unit, and product
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What is the marketing plan? p. 39
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the central instrument for directing and coordinating the marketing effort - has two levels strategic and tactical
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What does the strategic marketing plan outline? p. 39
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target markets and value proposition of firm based on analysis of oportunities
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what does the tactical marketing plan outline? p. 40
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marketing tactics, features, promotion, merchandising, pricing, sales, channels, and service
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What are the four things that the corporate HQ must undertake? p. 41
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define corporate mission, establish strategic business units, assign resources to each SBU, assess growth opportunities
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What are the five characteristics of good mission statements? p. 42-43
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focus on limited number of goals, stress the company's major policies and values, define major competitive spheres, take a long-term view, is short, memorable and meaningful
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Who argued that market definitions of a business are superior to product definitions? p. 43
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Harvard's famed marketing professor Ted Levitt
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what is the difference between a target market definition and a strategic market definition? p. 44
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target market definition tends to focus on selling a product or service to a current market while a strategic market definition focuses on the potential market
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What are the three dimensions along which a business can define itself?
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customer groups, customer needs, and technology
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what are the three characteristics of a SBU? p. 44
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1. single business
2. own set of competitors 3. has a manager responsible |
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What are two portfolio-planning models to make investment decisions for each SBU? p. 44
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GE/McKinsey Matrix
BCG's Growth-Share Matrix |
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What other means have companies used to make internal investment decisions? p. 44
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shareholder value analysis
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What are three types of growth opportunities? p. 44
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intensive - within current businesses
integrative - build or acquire businesses related diversification - find unrelated businesses |
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When is a product-market expansion grid used? p. 44
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to review opportunities to improve existing businesses (intensive opportunities)
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What are three intensive growth strategies? p. 45
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market-penetration strategy, market-development strategy, product-development strategy
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What is corporate culture? p. 47
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shared experiences, stories, beliefs, and norms that characterize an organization
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Who pioneered scenario analysis consisting of developing plausible representations of a firm's possible future with different assumptions? p. 48
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Royal Dutch/Shell group
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Outline the steps in the BU Strategic Planning Process. p. 48
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Business mission - external & internal SWOT, Goal formulation, Strategy formulation, program formulation, implementation, feedback and control
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Define a market opportunity. p. 50
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area of buyer need and interest that a company has a high probability of profitably satisfying
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What are the three main sources of market opportunities? p. 50
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supply something in short supply
supply existing product or service in a new/superior way a new product/service |
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What are ways to uncover possible product or service improvements? p. 50
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problem detection method
ideal method consumption chain method |
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How do you evaluate opportunities? p. 51
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market opportunity analysis (MOA) - determines attractiveness and probability of success by asking questions
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What are the four criteria for a MBO to work? p. 52
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1. arranged hierarchically, most to least impt
2. quantitative whenever possible 3. goals should be realistic |
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Goals indicate what a business wants to achieve; _____ is a game plan for getting there. p. 53
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strategy
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What are the three components of a business strategy? p. 53
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marketing strategy, technology strategy, and sourcing strategy
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What are Michael Porter's generic strategies? p. 54
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1. overall cost leadership
2. differentiation 3. focus |
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According to Michael Porter, firms pursuing the same strategy directed to the same target market constitute a __________ _________. p. 54
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strategic group
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What are the four major categories of strategic alliances? p. 54
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product or service alliance, promotional alliance, logistics alliance, pricing collaborations
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What are the seven elements of a successful business practice according to McKinsey & Company? p. 55
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strategy, structure, systems - "hardware"
style, skills, staff, and shared - "software" |
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What are the elements of a marketing plan? p. 57
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exec summary/TOC
situation analysis marketing strategy financial projections implementation controls |
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What is the criteria for evaluating a marketing plan? p. 57
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plan simple? plan specific? plan realistic? plan complete?
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What is a MIS? p. 67
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people, equipment, and procedures to gather, sort, analyze, evaluate, and distribute needed, timely, and accurate information to marketing decision makers
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What is one way to rank customers? p. 68
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purchase recency, frequency, and monetary value (RFM)
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What is distinctive about the marketing intelligence system? p. 69
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supplies happenings data rather than results data
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What is a marketing intelligence system? p. 69
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set of procedures and sources managers use to obtain everyday information about development in the marketing environment
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How can Marketing Managers collect marketing intelligence data? p. 69
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talking to customers, suppliers, distributors, monitoring social media, e-mailing lists and blogs, meeting with other company managers
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What are steps a company can take to improve its marketing intelligence? p. 69
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train and motivate the sales force to spot and report new developments
motivate distributors, retailers and other intermediaries to pass along important intelligence network externally |
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How can competitive intelligence be gathered in a legal and ethical way? p. 70
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setup customer advisory panel
take advantage of government data sources purchase information from outside suppliers use online customer feedback systems |
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What are examples of a secondary commercial data source? p. 71
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Nielsen company, MRCA information service, Information Resource Inc, SAMI/Burke, Simmons Market Research Bureau, other commercial research houses
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What is the diff between fads, trends, and megatrends? p. 72
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fad - unpredictable, short-lived and without social, economic and political significance
trend - direction or sequence of events with momentum and durability megatrend - large social, economic, political, and technological change |
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What does the Yankelovich Monitor do? p. 74
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interview 2,500 people nationally and tracked 35 social trends since 1971
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What are the six major forces a company needs to be monitor due to a rapidly changing global environment? p. 74
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demographic, economic, social-cultural, natural, technological, and political-legal
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What is th emain demographic force that marketers monitor?
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population - because people make up markets
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What are the six age groups into which Marketers generally divide the population? p. 76
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preschool children, school-age children, teens, young adults age 20-40, middle aged adults age 40-5, and older adults age 65 and up
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What are the four types of industrial structures? p. 79
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subsistence economies, raw-material-exporting economies, industrializing economies, industrial economies
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What are the five different income distribution patterns used by Marketers? p. 79
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very low incomes; mostly low incomes; very low, very high incomes; low, medium, high incomes; and mostly medium incomes
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What is the difference between core beliefs and secondary beliefs? p. 81
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core beliefs are passed on from parents to children
while secondary beliefs are open to change |
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What are the five types of consumer environmental segments? p. 83
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true blue greens, greenback greens, sprouts, grousers, apathetics
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What are the four trends in technology a Marketer should monitor? p. 85
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accelerating pace of change
unlimited opportunities for innovation varying R&D budgets increased regulation of technological change |
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What are the four main purposes of business legislation? p. 86
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protect companies from unfair competition
protect consumers from unfair business practices protect interest of society from unbridled business behavior charge businesses with the social costs created by their products or production processes |
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What is the consumerist movement? p. 86
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an organized movement of citizens and government to strengthen the rights and powers of buyers in relationship to sellers
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What are the three categories of Market Research firms? p. 90
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1. syndicated-service research firms - sell gathered info for a fee
2. custom marketing research firms - carry out studies 3. specialty line marketing research firms - provide specialized research services |
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How can small companies leverage market research which tends to be expensive? p. 90
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hire students/professors
use the internet check out rivals |
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What is the market research process? p. 91
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Define the problem/research objectives
Develop the research plan Collect the information Analyze the information Present the findings Make the decision |
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What is the difference between exploratory research , descriptive research, and causal research? p. 92
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exploratory is to shed light on the real nature of the problem and suggest possible solutions.
descriptive is to quantify demand causal - test a cause-and-effect relationship |
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Step 2 - Develop the research plan
What are decision points in developing the research plan? p. 92 |
data sources, research approaches, research instruments, sampling plan, and contact methods
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What is the diff between primary and secondary data? p. 92
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primary data is freshly gathered data for a specific purpose or for a specific research project, secondary data is data collected for another project already existing
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What are the five ways in which Marketers collect primary data?
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observation, focus groups, surveys, behavioral data, and experiments
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Photographs are an example of this kind of market research. p. 92
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Observational research
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What is ethnographic research? p. 93
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particular observational research approach which immerses the research into the consumers' lives to uncover unarticulated desires
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Ethnographic research can be particularly useful in _________ ______, especially far-flung rural areas, where companies do not know consumers well. p. 93
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developing marketing
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What is a gathering of 6-10 people selected by researchers and brought together to discuss various topics of interest called? p. 93
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focus group
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What is the most scientifically valid research? p. 95
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experimental research - establish cause-and-effect by eliminating competing explanations of the observed findings
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What are the three main research instruments in collecting primary data? p. 96
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questionnaires, qualitative measures, and technological devices
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What is the most common instrument used to collect primary data? p. 96
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questionnaires
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Which type of question specifies all the possible answers? p. 96
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closed-end questions
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What are the types of closed-end questions? p. 97
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dichotomous, multiple choice, likert scale, semantic differential, importance scale, rating scale, intention-to-buy-scale
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Which scale connects two bipolar words and asks the respondent to select the one that represents his or her opinion? p. 97
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semantic differential
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What are types of open-ended questions? p. 97
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completely unstructured, word association, sentence completion, story completion, picture, thematic apperception test (TAT)
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What is thematic apperception test (TAT)? p. 97
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A picture is presented and respondents are asked to make up a story about what they think is happening or may happen in the picture.
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What is the ZMET technique of qualitative research? p. 98
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asks participants in advance to select a minimum of 12 images for their own sources to represent their thoughts and feelings about the research topic
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Which qualitative research method asks increasingly more specific "why" questions to reveal customer motivation and abstract goals? p. 98
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laddering
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What are some technological devices used in gathering research data? p. 99
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galvanometers - measure interest/emotions aroused by exposure to ad/picture
tachistoscope - flash an ad and ask respondent to describe everything he recalls TACODA - study eye movements and brain activity of web surfers audiometers - listen in on television sets in homes |
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After research approach and instruments are chosen what is the next thing for the researcher to select? p. 100
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Sampling plan
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What are the three decisions in the sampling plan? p. 100
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sampling unit - who should we survey?
sampling size - how many? sampling procedure - how to choose respondents? |
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What are three probability sample methods? p. 100
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simple random, stratified random, cluster (area) sample
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What are three non-probability sample methods? p. 100
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convenience, judgment, quota sample
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In which sampling method does the research "find and interview a prescribed number of people in each of the several categories?" p. 100
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quota sample
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When is a MDSS used? p. 103
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Step 6: Make the decision
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How does MIT's John Little describe a MDSS? p. 103
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coordinated collection of data, systems, tools, and techniques, with supporting software and hardware, by which an organization gathers and interprets relevant information from business and environment and turns it into a basis for marketing action
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What are the seven characteristics of good marketing research? p. 104
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1. scientific method
2. research creativity 3. multiple methods 4. interdependence of models and data 5. value and cost of information 6. healthy skepticism 7. ethical marketing |
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What are two complementary approaches to measuring marketing productivity?
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1) marketing metrics - assess marketing effects
2) marketing-mix modeling - estimate causal relationships and measure how marketing activity affects outcomes |
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What are five examples of marketing metrics? p. 107
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1. external - awareness, consumer satisfaction, total number of customers
2. internal - resource adequacy, desire to learn |
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What are the different productive ways to break down a market to measure demand? p. 110
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potential market - set of consumers with interest in offer
available market - interest, income and ACCESS to particular offer target market - qualified available market the company decides to pursue penetrated market - consumers who are buying the company's product |
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What is the marketer's first step in evaluating marketing opportunities? p. 111
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establish total market demand - total volume that would be bought by a defined customer group in a defined geographical area in a defined time period
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Is Market demand a fixed number? p. 111
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no, it is a function of the stated conditions
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Why does market demand need a market demand function? p. 111
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Because it depends on underlying conditions
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What is the "market minimum" in demand measurement? p. 111
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demand which would take place without any demand-stimulating expenditures
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What is the market potential in demand measurement? p. 111
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upper limit to market demand
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What is the distance between the market minimum and the market potential? p. 111
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shows the overall market sensitivity of demand
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What is an expansible market and an nonexpansible market?
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An expansible market is affected in size by level of industry marketing expenditures.
A nonexpansible market is not affected by the level of marketing expenditures. |
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What should organizations do in a nonexpansible market? p. 111
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accept the market size and direct the effort towards market share
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What is the market-penetration index? p. 111
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the current and potential levels of market demand
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What is the share-penetration index? p. 111
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current and potential market shares
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What is the product-penetration percentage? p. 112
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% of ownership or use of a product or service in a population
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What is the company demand? p. 112
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company's estimated share of market demand at alternative levels of company marketing effort in a given time period
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The company sales forecast is the expected level of company sales based on a chosen _______ _____ and an assumed ______ _______. p. 112
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marketing plan
marketing environment |
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When is the forecast-to-plan sequence valid - developing a marketing plan on the basis of sales forecast? p. 112
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if company demand is nonexpansible
estimate of national economic activity NOT when expansible or where "forecast" means an estimate of company sales |
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The sales forecast is result of an assumed _____ _______ _______. p. 112
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marketing expenditure plan
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What is the total market potential? p. 113
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maximum amount of sales that might be available to all the firms in an industry during a given period
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What is the method called which multiplies a base number by several adjusting percentages? p. 113
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chain-ratio method
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What are two major methods for assessing area market potential?
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market-buildup method - used primarily by business marketers
and multiple-factor index method - used by consumer markets |
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What is an efficient method of estimating area market potential? p. 113
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use North American Industry Classification System (NAICS) developed by US Bureau of the Consensus
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What does the NAICS classify? p. 113
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all manufacturing into 20 major industry sectors and breaks each sector into a six digit, hierarchical structure
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What is the brand development index (BDI)? p. 114
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index of brand sales to category sales
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Who publishes industry sales? p. 115
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industry trade association
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______ is the art of anticipating what buyers are likely to do under a given set of conditions. p. 115
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Forecasting
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What are four ways to develop sales forecasts based on past sales? p. 116
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time series analysis
exponential smoothing statistical demand analysis econometric analysis |
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What is the modern customer oriented organizational chart? p. 121
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Customers -> Frontline people -> Middle management -> Top management
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What is a customer-perceived value? p. 121
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difference between the prospective customer's evaluation of all the benefits and all the costs of an offering and the perceived alternatives.
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What is the total customer benefit? p. 121
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perceived montary value of the bundle of economic, functional, and psychological benefits customeres expect from a given market offering because of the products, services, personnel, and image involved.
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What is the total customer cost? p. 121
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perceived bundle of costs customers expect to incur in evaluting, obtaining, using, and disposing of the given market offering
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How do customers ultimate make choices? p. 121
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within the bounds of search costs and limited knowledge, mobility and ocme they estimate which offer will deliver the most perceived value and act on it
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What are elements of the customer perceived value? p. 121
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total customer benefit - total customer cost
total customer benefit = product + services + personnel + image benefit total customer cost = monetary cost + time cost + energy cost + psychological cost |
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What analysis do managers conduct to reveal the company's strengths and weaknesses relative to those of various competitors? p. 122
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customer value analysis
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What are the steps in customer value analysis? p. 122
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identify major attributes and benefits customers like
assess the importance of them quantitively assess the company and competitors performance examine how customers in segment rate the company's performance monitor customer values over time |
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How does Oliver define loyalty? p. 1234
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A deeply held commitment to rebuy or repatronize a preferred product or service in the future despite situation influences and marketing efforts having the potential to cause switching behavior.
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What is the value proposition? p. 123
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whole cluster of benefits the company promises to deliver
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What is the value delivery system? p. 123
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includes all the experiences the customer will have on the way to obtaining and using the offering
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How can companies measure customer satisfaction? p. 126
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periodic surveys
measure customer loss rate hire mystery shoppers |
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What is the ACSI? p. 126
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measures perceived satisfaction consumers feel with different firms... developed by U of Michigan Claes Fornell
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Define quality. p. 129
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totality of features and characteristics of a product or service that bear on its ability to satisfy stated or implied needs.
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What is the difference between conformance and performance quality? p. 129
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conformance = Hyundai car
performance = Lexus |
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Customer profitability analysis is best conducted with the tools of an accounting technique called ____________________. p. 131
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activity based costing
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What are the levels in a customer profitability analysis? p. 131
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platinum customers, gold customers, iron customers, lead customers.
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Customer lifetime value (CLV) describes the ______ _____ ______ of the strem of future profits expected over the customer's lifetime purchases. p. 132
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net present value
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_____________________ is the key to customer relationship management. p. 138
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listening to customers
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__________________ constitute the company's customer relationship capital. p. 138
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satisfied customers
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