Podcast
Questions and Answers
What is the definition of Customer Lifetime Value (CLV or LTV)?
What is the definition of Customer Lifetime Value (CLV or LTV)?
The total estimated financial value that a customer will bring to a business over the entire duration of their relationship.
Which of the following are forms of Customer Value?
Which of the following are forms of Customer Value?
Behavioral segmentation involves dividing segments based on the benefits consumers seek from the product.
Behavioral segmentation involves dividing segments based on the benefits consumers seek from the product.
False
_______ segmentation divides a market into different segments based on gender, age, income, and other demographic variables.
_______ segmentation divides a market into different segments based on gender, age, income, and other demographic variables.
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What is benefit segmentation in marketing?
What is benefit segmentation in marketing?
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Name the three major benefit segments Fitbit targets with their health and fitness tracking devices.
Name the three major benefit segments Fitbit targets with their health and fitness tracking devices.
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Heavy users typically represent a large portion of the market.
Heavy users typically represent a large portion of the market.
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User status segments markets into nonusers, ex-users, potential users, first-time users, and ________ users of a product.
User status segments markets into nonusers, ex-users, potential users, first-time users, and ________ users of a product.
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What are the four forms of Customer Value mentioned in the content?
What are the four forms of Customer Value mentioned in the content?
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What does CLV stand for?
What does CLV stand for?
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Behavioral segmentation involves dividing segments based on occasions and benefits.
Behavioral segmentation involves dividing segments based on occasions and benefits.
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A business mission is defined as a broadly defined, enduring statement of purpose that distinguishes a business from others of its type according to __________.
A business mission is defined as a broadly defined, enduring statement of purpose that distinguishes a business from others of its type according to __________.
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What is benefit segmentation?
What is benefit segmentation?
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How many major benefit segments does Fitbit make health and fitness tracking devices for?
How many major benefit segments does Fitbit make health and fitness tracking devices for?
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Which of the following are user status segments?
Which of the following are user status segments?
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Heavy users often constitute a large percentage of the market.
Heavy users often constitute a large percentage of the market.
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Study Notes
Marketing Mix
- Evolved from 4Ps (Product, Price, Place, Promotion) to 4Cs (Customer, Cost, Convenience, Communication) and now 4Es (Experience, Everyplace, Exchange, Evangelism)
- Marketing function relates to many people, groups, and forces
- First task: discovering consumer needs
- Second task: satisfying consumer needs
Four Forms of Customer Value
- Price value: customers perceive a product as being cheaper than competitors' (e.g., Ryanair, Aldi, Easycar)
- Performance value: customers look for the latest features, functionality, and quality (e.g., Dyson)
- Emotional value: what is in the mind of the customers (e.g., Volvo and safety, Chanel and luxury)
- Relational value: the quality of service received by a customer – a high level of trust leads to the lifetime value of a customer
Customer Lifetime Value (CLV or LTV)
- The total estimated financial value that a customer will bring to a business over the entire duration of their relationship
- Calculated by estimating the total revenue that a customer will generate from their purchases and subtracting the cost of acquiring and serving them
- Important metric to help businesses understand the value of acquiring and retaining customers
Business Mission
- A broadly defined, enduring statement of purpose that distinguishes a business from others of its type
- Captures two essential ingredients: enduring and specific to the individual organization
Marketing Objectives
- Derived from the results of the marketing audit and the SWOT analysis
Marketing Metrics
- Key emerging area of control
- Two key elements: effectiveness of operational marketing activity and impact of marketing on the bottom line
Ansoff Matrix
- Not specified in the text, but generally refers to a matrix used to identify growth opportunities for a business
Customer Value-Driven Marketing Strategy
- Begins with selecting which customers to serve and determining a value proposition that best serves the targeted customers
- Consists of four steps: market segmentation, market targeting, differentiation, and positioning
Four Major Steps in Designing a Customer Value-Driven Marketing Strategy
- Market segmentation: dividing a market into smaller segments of buyers with distinct needs, characteristics, or behaviors
- Market targeting: evaluating each market segment's attractiveness and selecting one or more market segments to enter
- Differentiation: actually differentiating the firm's market offering to create superior customer value
- Positioning: arranging for a market offering to occupy a clear, distinctive, and desirable place in the minds of target consumers
Major Segmentation Variables
- Geographic: nations, regions, states, counties, cities, neighborhoods, population density, climate
- Demographic: age, life-cycle stage, gender, income, occupation, education, religion, ethnicity, generation
- Psychographic: social class, lifestyle, personality
- Behavioral: occasions, benefits, user status, usage rate, loyalty status
Demographic Segmentation
- Age and life-cycle segmentation: dividing a market into different age and life-cycle groups
- Gender segmentation: dividing a market into different segments based on gender
- Income segmentation: dividing a market into different income segments
Psychographic Segmentation
- Divides a market into segments based on variables such as social class, lifestyle, and personality
- Examples: Panera's healthy-living lifestyle segment, Fitbit's health and fitness tracking devices aimed at different benefit segments
Behavioral Segmentation
- Occasion segmentation: segments divided according to occasions, when the buyers get the idea to buy, make their purchase, or use the purchased item
- Benefit segmentation: segments divided according to the different benefits that consumers seek from the product
- User status: segments markets into nonusers, ex-users, potential users, first-time users, and regular users of a product
- Usage rate: segments markets into light, medium, and heavy product users
- Loyalty status: consumers can be loyal to brands, stores, and companies
Marketing Mix
- Evolved from 4Ps (Product, Price, Place, Promotion) to 4Cs (Customer, Cost, Convenience, Communication) and now 4Es (Experience, Everyplace, Exchange, Evangelism)
- Marketing function relates to many people, groups, and forces
- First task: discovering consumer needs
- Second task: satisfying consumer needs
Four Forms of Customer Value
- Price value: customers perceive a product as being cheaper than competitors' (e.g., Ryanair, Aldi, Easycar)
- Performance value: customers look for the latest features, functionality, and quality (e.g., Dyson)
- Emotional value: what is in the mind of the customers (e.g., Volvo and safety, Chanel and luxury)
- Relational value: the quality of service received by a customer – a high level of trust leads to the lifetime value of a customer
Customer Lifetime Value (CLV or LTV)
- The total estimated financial value that a customer will bring to a business over the entire duration of their relationship
- Calculated by estimating the total revenue that a customer will generate from their purchases and subtracting the cost of acquiring and serving them
- Important metric to help businesses understand the value of acquiring and retaining customers
Business Mission
- A broadly defined, enduring statement of purpose that distinguishes a business from others of its type
- Captures two essential ingredients: enduring and specific to the individual organization
Marketing Objectives
- Derived from the results of the marketing audit and the SWOT analysis
Marketing Metrics
- Key emerging area of control
- Two key elements: effectiveness of operational marketing activity and impact of marketing on the bottom line
Ansoff Matrix
- Not specified in the text, but generally refers to a matrix used to identify growth opportunities for a business
Customer Value-Driven Marketing Strategy
- Begins with selecting which customers to serve and determining a value proposition that best serves the targeted customers
- Consists of four steps: market segmentation, market targeting, differentiation, and positioning
Four Major Steps in Designing a Customer Value-Driven Marketing Strategy
- Market segmentation: dividing a market into smaller segments of buyers with distinct needs, characteristics, or behaviors
- Market targeting: evaluating each market segment's attractiveness and selecting one or more market segments to enter
- Differentiation: actually differentiating the firm's market offering to create superior customer value
- Positioning: arranging for a market offering to occupy a clear, distinctive, and desirable place in the minds of target consumers
Major Segmentation Variables
- Geographic: nations, regions, states, counties, cities, neighborhoods, population density, climate
- Demographic: age, life-cycle stage, gender, income, occupation, education, religion, ethnicity, generation
- Psychographic: social class, lifestyle, personality
- Behavioral: occasions, benefits, user status, usage rate, loyalty status
Demographic Segmentation
- Age and life-cycle segmentation: dividing a market into different age and life-cycle groups
- Gender segmentation: dividing a market into different segments based on gender
- Income segmentation: dividing a market into different income segments
Psychographic Segmentation
- Divides a market into segments based on variables such as social class, lifestyle, and personality
- Examples: Panera's healthy-living lifestyle segment, Fitbit's health and fitness tracking devices aimed at different benefit segments
Behavioral Segmentation
- Occasion segmentation: segments divided according to occasions, when the buyers get the idea to buy, make their purchase, or use the purchased item
- Benefit segmentation: segments divided according to the different benefits that consumers seek from the product
- User status: segments markets into nonusers, ex-users, potential users, first-time users, and regular users of a product
- Usage rate: segments markets into light, medium, and heavy product users
- Loyalty status: consumers can be loyal to brands, stores, and companies
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Description
This quiz covers the marketing mix, SWOT analysis, Ansoff Matrix, and Five Forces Analysis, including the evolution from 4Ps to 4Cs and 4Es. It relates to the marketing function and its connections to various people and groups.
