Managing Customer Value Lectures 1 & 2
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Which of the following are considered internal analysis components of a company, as described in the content?

  • Core competencies (correct)
  • Vision (correct)
  • Strengths (correct)
  • Competition
  • Weaknesses (correct)

    • The intersection of company, customer, and competition defines the business opportunity.

    True (A)

    What does STP stand for in the context of marketing?

    Segmentation, Targeting, and Positioning

    The key to success in marketing is to offer the ______ product/service to the ______ customer.

    Signup and view all the answers

    Which of the following are NOT considered value drivers?

    <p>Financial (C)</p> Signup and view all the answers

    Managing Customer Value (MCV) focuses on what the organization does, similar to marketing.

    <p>False (B)</p> Signup and view all the answers

    What is the definition of customer value?

    <p>The benefits minus the costs when you buy and use a product or service.</p> Signup and view all the answers

    The fundamental principle of marketing states that consumers will purchase the product that gives them the highest ______ value.

    <p>perceived</p> Signup and view all the answers

    Match the following features with their corresponding principles:

    <p>Customer is king = Marketing Effectiveness and efficiency are key = Managing Customer Value Driven by the top line = Marketing Driven by the bottom line = Managing Customer Value Product-oriented = Marketing Experience-oriented = Managing Customer Value</p> Signup and view all the answers

    Which of these are core concepts covered in MCV lectures?

    <p>Customer Value and Value Drivers (A), Customer Relationship Management (C)</p> Signup and view all the answers

    Marketing Myopia occurs when organizations focus on selling products and services instead of understanding customers' true needs and desires.

    <p>True (A)</p> Signup and view all the answers

    What key question should companies ask themselves to better understand their customers' perceived value?

    <p>What product or service could we offer whose attributes deliver value better than competitors?</p> Signup and view all the answers

    Which of the following is NOT a type of segmentation?

    <p>Financial (A)</p> Signup and view all the answers

    The 'rigorous way' of segmentation, known as conjoint analysis, involves collecting ranking/rating data from a large sample of individuals.

    <p>True (A)</p> Signup and view all the answers

    What is the fundamental criteria for successful segmentation?

    <p>People within the same segment should have the same value drivers, while people across different segments should have different value drivers.</p> Signup and view all the answers

    The process of choosing the target segment is known as ______.

    <p>targeting</p> Signup and view all the answers

    Match the following segmentation types with their respective examples:

    <p>Demographic/Firmographic = Age, family size, firm size Geographic = Region, climate, population density Psychographic = Personality, lifestyle, class, attitudes Behavioral = Rates of use, benefits wanted, loyalty</p> Signup and view all the answers

    Which of the following is NOT a factor to consider when selecting a target segment?

    <p>Competitor's financials (D)</p> Signup and view all the answers

    What are two potential disadvantages of the 'simple way' of segmentation?

    <p>The simple way may rely on assumptions about correlations that might not be accurate, and it may not provide as detailed insights into customer preferences compared to conjoint analysis.</p> Signup and view all the answers

    Segmentation is beneficial because it allows companies to tailor their offerings to specific customer groups.

    <p>True (A)</p> Signup and view all the answers

    The 'rule of two' suggests that consumers typically focus on two attributes of a brand when making a purchase decision.

    <p>False (B)</p> Signup and view all the answers

    What is the purpose of a positioning statement?

    <p>A positioning statement is an internal document that outlines the brand's core benefit, target market, and competitive advantage, guiding the brand's overall strategy.</p> Signup and view all the answers

    A ______ is a visual representation of how consumers perceive different brands within a market.

    <p>perceptual map</p> Signup and view all the answers

    What is the core benefit of the positioning statement example in the content?

    <p>Fresh and affordable coffee (C)</p> Signup and view all the answers

    Match the following components of a positioning statement to their descriptions:

    <p>Target Market = The specific group of consumers the brand aims to reach. Core Benefit = The primary value proposition the brand offers. Other Benefits = Additional attributes that support the core benefit. Support = Reasons why the target market should believe the brand can deliver on its core benefit. Competitive Advantage = Factors that set the brand apart from its competitors.</p> Signup and view all the answers

    Which targeting strategy focuses on offering a single product to a specific market segment?

    <p>Single-segment Concentration (A)</p> Signup and view all the answers

    Selective Specialization involves targeting multiple market segments with individual products.

    <p>True (A)</p> Signup and view all the answers

    What are the two key criteria for effective positioning mentioned in the content?

    <p>Emphasize value drivers important to customers in the target segment and differentiate your offering from competitors within that segment.</p> Signup and view all the answers

    A company employing a ______ targeting strategy aims to offer multiple products across multiple market segments.

    <p>Full Market Coverage</p> Signup and view all the answers

    Match the targeting strategy with its corresponding example from the content:

    <p>Full Market Coverage = Products: Soda (Coke, Sprite), Bottled Water (Dasani, Smart Water), Coffee (Georgia, Costa) Markets: Multiple beverage markets (soda, bottled water, tea, coffee) Single-segment Concentration = Product: Cars Market: High-end automobile market Selective Specialization = Product: Home use laptops, gaming laptops Markets: Everyday use, Gaming Product Specialization = Product: Tires Markets: Transportation and logistics companies, consumers (luxury cars, sedans, family SUVs) Market Specialization = Products: Razors &amp; blades, shave gel, after shave, disposables Market: Male hair removal</p> Signup and view all the answers

    Which of these examples illustrate a Product Specialization targeting strategy?

    <p>Product: Tires Markets: Transportation and logistics companies, consumers (luxury cars, sedans, family SUVs) (C)</p> Signup and view all the answers

    Positioning is about implementing a marketing strategy that helps a company differentiate itself from competitors.

    <p>True (A)</p> Signup and view all the answers

    What is the purpose of positioning in a marketing strategy?

    <p>Positioning guides the company's direction and method of differentiation, aiming to create a clear and favorable perception of the brand in the target market.</p> Signup and view all the answers

    Which of the following are considered internal analysis components when evaluating a company's business strategy?

    <p>Strengths (B), Weaknesses (D)</p> Signup and view all the answers

    The 3 Cs of business strategy are Company, Customer, and Competition.

    <p>True (A)</p> Signup and view all the answers

    What is the primary goal of the STP process in marketing?

    <p>To target the right customer with the right product/service.</p> Signup and view all the answers

    The ______ of a business opportunity is where Company, Customer, and Competition intersect.

    <p>intersection</p> Signup and view all the answers

    Match the following terms with their corresponding descriptions:

    <p>Segmentation = Dividing the market into distinct groups based on shared characteristics. Targeting = Selecting one or more segments to focus on. Positioning = Establishing a unique and compelling position for a product/service in the minds of target customers.</p> Signup and view all the answers

    A company's competitors are defined solely by the products or services they offer.

    <p>False (B)</p> Signup and view all the answers

    What are two key factors to consider when evaluating the attractiveness of a target segment?

    <p>Value drivers and company core competencies.</p> Signup and view all the answers

    Which of the following is NOT a potential disadvantage of the 'simple way' of segmentation?

    <p>High cost and complexity (B)</p> Signup and view all the answers

    Study Notes

    Managing Customer Value Lectures 1 & 2

    • The lectures cover the core concepts of managing customer value (MCV), a roadmap for MCV, value creation (STP), and a comparison of marketing vs. MCV.
    • Session outlines include an introduction to MCV, customer value and value drivers, fundamental marketing principles, marketing versus MCV, value creation (STP), and Q&A.
    • A note states that sessions are open to everyone but are most helpful for those unfamiliar with marketing. Schedules are posted on a scholar page.

    Customer Value

    • Customer value is defined as benefits minus costs.
    • Value drivers are factors considered in terms of benefits and costs, which can be real, perceived, practical, and emotional.

    Fundamental Principles

    • Products are viewed as solutions that deliver customer value, not just attributes.
    • Competing products satisfy similar needs.
    • Consumers purchase products based on perceived value. (Customers will want the item with the highest perceived value.)
    • Questions to consider: Customer value drivers, competitors satisfying similar needs, and product/service attributes that offer better value.

    Marketing vs. MCV

    • Marketing focuses on what the organization does. It is product-oriented and value is hard to measure. Focuses on the top line and effectiveness.
    • MCV focuses on what customers do. It is experience-oriented and value is quantifiable and measured. Focuses on the bottom line and effectiveness/efficiency.
    • MCV is embedded in the organization's operations.

    Marketing Myopia

    • Marketing myopia occurs when the focus is on selling products/services instead of understanding and meeting customer needs.
    • Companies like BlackBerry, Nokia, and Kodak are cited as examples.

    Marketing - Process of Creating Value

    • Value to Customer (VTC) evaluates how customers value a product/service.
    • Value of Customer (VOC) assesses how the organization values the customer.

    Roadmap

    • The roadmap for value creation includes: Competitor analysis, Environmental Analysis (3Cs), Segmentation, Targeting, Positioning (STP), Product, Place, Price, and Promotion (Tactical Marketing Decisions (4Ps)).

    The 3 Cs

    • The 3Cs (Company, Customer, Competition) define a business strategy.
    • The intersection of the 3Cs represents an opportunity.

    Company Analysis

    • Company analysis utilizes internal analysis, including vision, strengths, weaknesses, and core competencies. (This focuses on internal factors)
    • Example company: Tim Hortons.

    Customer Analysis

    • Customer analysis involves external analysis to identify who the product/service is intended for.

    Competititor Analysis

    • Competitor external analysis evaluates what other organizations are doing in the same market, how they position themselves, and their definition of a customer.
    • Questions to consider: What are competitors offering, how do they define customer value, and how do competitors go to market?

    Success in Marketing

    • Success in marketing involves offering the right product/service to the right customer.
    • Segmentation, targeting, and positioning (STP) guides the business strategy.

    Get the Right Product/Service to the Right Customer

    • STP: Segmentation, Targeting, Positioning - are used to define the customer and position the business.
    • Segmentation: Dividing a market into smaller, more homogenous segments to tailor offerings to specific groups.
    • Types of Segmentation: Demographic/Firmographic, Geographic, Psychographic, and Behavioral.
    • Targeting: Evaluating segment attractiveness based on value drivers, core competencies, and selecting target segments for the business.
    • Positioning: Identifying value drivers for the target customer and their needs to emphasize differentiators and unique selling points.

    Two Methods of Segmentation

    • Simple Way: Defining customer value drivers and descriptor variables (using existing research). Grouping people into segments and finding competitors in each segment. Determining the growth and size of the segments.
    • Rigorous Way (Conjoint Analysis): Getting individual rankings/ratings of product attributes and conducting cluster analysis to determine segments, size, sensitivity, and market share.

    Important!

    • Within a segment, people are similar; across segments, they are different.
    • Different segments have different sensitivities to value drivers and product attributes. This is critical to understanding how to position products.

    Segmentation Example

    • Example: Automobile market segmentation into Young Childless Affluent Adults, Families, and Older Traditionalists using value drivers, profiles, competitors, size, and growth rate.
    • Other Examples: Coffee shops, different coffee brands and their offerings to attract customers.

    Targeting

    • The process of choosing the most appropriate segment(s) using company competencies/constraints and filtering by market size, growth, and competition.
    • Types of targeting include: Full Market Coverage, Single-Segment Concentration, Selective Specialization, Product Specialization, and Market Specialization.
    • Examples of each type are given with different brands in different marketing scenarios.

    Positioning

    • The method for guiding company strategy based on differentiating in the minds of customers, emphasizing value drivers important to the target customer segment and differentiating the company to stand out from the competition.
    • Criteria for positioning includes value drivers, and differentiation to stand out from competition. (Rule of two).
    • Positioning Example using perceptual map visually shows how consumers perceive different brands in a market.

    Positioning Statement

    • Developing positioning statements, including the target market, core benefit, other benefits, support, and competitive advantage relevant to that segment.
    • Positioning Statement Example: Defining the target market, core, benefit, support and competitive advantage, for a coffee shop. Showing examples like Tim Hortons. Methods for developing these statements, including using research and STP to guide your efforts.

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    Managing Customer Value Lectures 1 & 2 PDF

    Description

    This quiz explores the foundational concepts of managing customer value, including value creation, marketing versus MCV, and customer value definitions. Tailored for beginners, it covers essential marketing principles and value drivers that influence consumer purchasing decisions.

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