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123 Cards in this Set
- Front
- Back
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CRM |
Drives the firm to be customer-centric |
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Does one department own CRM? |
No. No one owns it |
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CRM |
A comprehensive business model for increasing revenues and profits by focusing on customers |
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CRM |
Most used by marketing, sales, and customer service |
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Customer acquisition |
Acquisition of the right customers based on known or learned characteristics that will drive growth and increase margins |
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Customer retention |
Retention of satisfied and loyal profitable customers and channels, and thus to grow the business profitably over the long run |
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Customer profitability |
Increased individual customer margins, while offering the right products at the right time |
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Customer satisfaction |
Offering meets or exceeds the customer's expectations |
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Customer loyalty |
Implies repeat purchases |
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Return on customer investment |
Can be calculated to determine if a firm should fire a customer |
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Process cycle for CRM |
1. Knowledge discovery 2. Marketing planning 3. Customer interaction 4. Analysis and refinement |
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Customer touchpoints |
Collect info through point of sale systems, call center files, Internet access, websites, email etc. |
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Customer touchpoints |
Collect info through point of sale systems, call center files, Internet access, websites, email etc. |
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Data warehouse |
Contains all the data generated from the touchpoints & it can be then transformed into useful info for marketing managers for decision making and marketing planning |
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Data mining |
The analytical approach to using the massive amounts of data collected through CRM to develop segments and micro segments |
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Database marketing |
Creation of "hit lists" of customer prospects who are then contacted individually though various means of marketing communication |
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Marketing planning phase |
A key use of the output from the knowledge discovery phase. |
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Interactive touchpoints |
Two-way and have direct interface between customers and the sales force, telemarketer, customer service rep, or interactive website |
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Non-interactive touchpoints |
Are static such as direct mail or website data entry form. |
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A customer centric culture includes the following |
1. Focus selling on customer business consultation and solutions 2. Focus on continuous improvement principles stressing customer satisfaction and loyalty |
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Formalization |
Where structure, processes and tools, and managerial knowledge and commitment are formally established in support of the culture |
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Formalization |
Where structure, processes and tools, and managerial knowledge and commitment are formally established in support of the culture |
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Customer mind set |
All employees see both internal and external customer satisfaction as central to their job |
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Customer orientation |
-place the customer at the core of all aspects of the firm -align system capabilities internally so that the firm offers innovative, competitively differentiated, satisfying products and services |
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Big data |
The every-increasing quantity and complexity of data being continuously produced by technological sources (laptops, smartphones, etc) |
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Four V's of big data |
1. Volume (amount) 2. Velocity (frequency) 3. Variety 4. Veracity (reliability) |
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Big data |
Helps marketers better understand customer behavior |
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What is considered the 5th V by some managers? |
Value |
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Categories of big data |
-structured (easy to categorize, generates logical organization) -unstructured (MOST COMMON, rich customer insights, social media posts, sales force interactions, memes, etc) |
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Automated technologies |
Used to extract structured data from unstructured |
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Semi structured data |
Not all data fits into the 2 categories. Has some elements that machines can and cannot understand |
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Valuable sources capture data on |
Current and potential customers that allow the marketer to act |
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Data from business systems |
Allows a holistic view of the customer. Point of sale systems and online transactions. |
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Web-related activity |
Every action of a customer is captured in a web log (click stream) |
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Big data sources |
Business systems, social media, Internet connected devices, mobile apps, commercial entities, government entities |
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Data from mobile apps |
Can help customers improve in-store shopping |
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Data from commercial entities |
Companies like credit card companies and retailers collect big data and sell to others |
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Data from government agencies |
Helps marketers understand demographic trends |
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Marketing analytics |
Set of methods facilitated by technology that utilize individual and market level data. Identify and communicate meaningful patterns within the data for the purpose of improving marketing-related decisions |
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Marketing analyst |
Highly skilled expert who may be required for complex data |
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Descriptive analytics |
Uses data to provide summary insights |
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Diagnostic analytics |
Uses data to explore relationships between different marketing factors that influence the firm's performance. Uses linear regression |
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Predictive analytics |
Utilizes data to make predictions about future marketing outcomes of interest |
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Prescriptive analytics |
Determining the optimal level of marketing relevant factors for a specific context by considering how adjusting their levels in varying ways will impact different marketing outcomes |
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Prescriptive analytics |
Determining the optimal level of marketing relevant factors for a specific context by considering how adjusting their levels in varying ways will impact different marketing outcomes. Most advanced and costly |
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Marketing analytics that use big data can achieve |
Deep customer insights |
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Marketers can then deliver |
Personalized experiences to customers at lower costs |
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Marketing mix enhancement |
The ability to understand the different effects of the four P's have on different marketing outcomes |
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Marketing mix enhancement |
The ability to understand the different effects of the four P's have on different marketing outcomes |
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Sentiment analysis |
Analytic method that allows better understanding of unstructured data for the general attitude contained in a message. |
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Attribution |
Pertains to how to give credit to different elements of the marketing mix by measuring their effects |
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Content filtering |
Looks at a customer's past preferences to make new recommendations |
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Content filtering |
Looks at a customer's past preferences to make new recommendations |
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Collaborative filtering |
Looks at similar customers and their preferences to make recommendations |
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Levels of personalization |
1. Individual level 2. Segment level 3. Mass personalization (everyone receives the same offering) |
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An effective dashboard |
Is organic, not static. It changes as the organization changes |
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A company can only deliver value, |
With an accurate and timely understanding of the customer |
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Internal forces affecting consumer choices: personal characteristics |
Life cycle stage, occupation, lifestyle, and gender roles |
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Psychological attributes affecting customer choice |
Motivation, attitude, perception, learning, personality |
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Motivation |
The stimulating power that induces and then directs behavior |
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Motivation |
The stimulating power that induces and then directs behavior |
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Attitude |
Learned disposition to respond to an object(s) in a consistently favorable or unfavorable way |
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Culture |
System of values, beliefs, and morals shared by a particular group of people |
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Situational factors |
Physical surroundings, personal circumstances, time |
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Social factors |
Family, household life cycle, social class, opinion leaders, reference groups |
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High involvement learning |
People spend more time in the decision making process and report higher satisfaction |
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Consumer decision making process |
Problem recognition, search for information, evaluation of alternatives, product choice decision, post purchase decision |
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Problem recognition. |
Real state VS preferred state |
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Evaluation of alternatives |
Emotional choice, attitude/belief based choice, attribute based choice |
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Demand for products and services is different in a |
Business market |
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Demand for products and services is different in a |
Business market |
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Derived demand |
If consumers are buying finished products, producers need more inputs |
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Demand for products and services is different in a |
Business market |
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Derived demand |
If consumers are buying finished products, producers need more inputs |
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Inelastic demand |
Producers buy raw materials even if the price rises |
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Straight re-buy |
Reorder products that are used on a consistent basis |
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Straight re-buy |
Reorder products that are used on a consistent basis |
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Why did new products fail? |
-overestimation of market size -design problems -incorrect pricing or positioning -high development costs -competitor reaction |
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Straight re-buy |
Reorder products that are used on a consistent basis |
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Modified re-buy |
Familiar with product and supplier, but still seek additional information |
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New purchase |
First-time purchase of product or service |
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Buying center |
Manages the purchase decision process and ultimately makes the decision |
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Buying center participants |
1. Users 2. Initiator (starts process) 3. Influencer 4. Gatekeeper (controls access to key participants in the process) 5. Decider (makes final decision) |
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Who is one of the largest groups of business customers |
Manufacturers |
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Players in B2B markets |
1. Resellers 2. Government 3. Institutions (deliver services) |
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Request for proposal |
Starting point from which vendors put together their product solution |
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Product specifications |
Should be clearly defined so that everyone inside and outside the firm understand |
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3 criteria for product selection to evaluate the product choice |
1. Financial 2. Value 3. Service |
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B2B e-commerce |
Describes online order transactions between businesses |
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There is no point in doing market segmentation unless |
A positive ROI is expected |
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Segmentation requires |
Data |
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4 ways to segment consumer markets |
1. Demographic 2. Behavioral 3. Geographic 4. Psychographic |
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Firms use |
Multiple segmentation approaches simultaneously |
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Segmentation seeks |
To find one or more factors about members of a heterogeneous(diverse) market that allow for dividing the market into smaller, more homogeneous(similar) subgroups |
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Target marketing |
Evaluating the market segments, then making decisions about which among them is most worthy of investment or development |
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Psychographic segmentation |
Personality, lifestyle, and values |
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Positioning |
The way we want consumers to think and feel about our brand |
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What is the heart of positioning |
The marketing mix |
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What is the heart of positioning |
The marketing mix |
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Positioning is not what the company does to the product |
It's what the company does to the mind of the customer |
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Who positions brands? |
Your consumer |
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Why positioning is important |
1. It simplifies everything 2. Makes you different 3. Makes you interesting 4. Protects your business |
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Positioning statement |
Used by a company or organization to make sure a brand's position is clearly conveyed and understood by all who work on the brands |
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Frame reference / competitive framework |
Gives the brand meaning and makes it relevant. Provides a context of role in which the consumer sees your brand |
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What is at the core of delivering value to the customer |
Product experience |
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Product |
Anything that delivers value |
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Core product |
Physical, tangible elements. |
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Tangibility |
Physical aspects of the product experience |
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Convenience goods |
Staples,impulse, emergency |
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Convenience goods |
Staples,impulse, emergency |
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Shopping goods |
Furniture, clothes, appliances |
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Speciality goods |
Unique characteristics iPhone |
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Unsought goods |
Insurance, grave plots |
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Product classifications |
-materials(lumber, minerals, such as copper, corn) -capital goods (major purchases in support of a significant business function) -MRO supplies -parts |
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Product line |
Group of products linked through usage, customer profile, price points, and distribution channels or needs satisfaction |
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Product line |
Group of products linked through usage, customer profile, price points, and distribution channels or needs satisfaction |
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Product mix |
All the products offered by a company |
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Price skimming |
Lower price due to competitive pressures if product is not well-differentiated |
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Price penetration |
Target high-end market, higher price |
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New to the world product |
-disruptive innovation are so innovative they create a fundamental change in the marketplace -sustaining innovations are newer, better (Diet Coke, Coke Zero) |
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Go-to-market mistake |
Firm fails to keep a bad product idea from moving into product development. -stop-to-market mistake: a good idea is eliminated prematurely |
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Innovation diffusion process |
How long it takes a product to move from first purchase to last purchase. |
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What five stages do individuals move through before adopting a product |
Awareness, interest, evaluation, trail, and adoption |
