Advanced Marketing Management Zusammenfassung PDF

Vorlesung 1 Introduction & Motivation - main goal of marketing : agage the customer so they advertise on the brands...

Vorlesung 1 Introduction & Motivation - main goal of marketing : agage the customer so they advertise on the brands behalf Product perspective focuses & centric on creating improving products based on the company's : expertise & vision C rather then customer needs or market demands Example Apple designs products without conducting extensive customer research > - : - marketing happens to talk to the customer - M financeardig ↳ production should rather talk to customer ! als should produce what customer wants e - but offen marketing has to push the products PersonenCustomer to the customers > - not ideal ! ! Customer centric perspective focuses understanding &d meeting customer needs &d preferences = on ↳ priotize delivering value tailored to their target audience laiming to Productionance build long-term relationships & loyalty) Bsp Amazon - : marketing the different business functions > connecting - Customer is S customer the center organisation > is in of the - Personel > - if there are more people in a department & higher salaries they , have more power ! ↳ more ressources - suggests positive connection between power of a department &firm performance Example of "2 free flights to America" shows that you need balance between values a we give to customer & value customer we get from Marketing strategy formation process (conceptual) framework that outlines the steps businesses take = to develop an effective strategy for reaching their target market & their marketing go-Is achieving C ↳> be selective which customers -who do I want most organisations ? can as my customer need to make sure that we're capturing - some value from customer, so we can stay in the business (non-profit organisations as well  but need than just conceptional strategy formation - we more a ! process ↳ don't know what works& what doesn't -need data ! we Marketing strategy decisions & actions focused on building a = sustainable differential advantage , relative to competitors , in the perception of customers to create value , for stakeholders First Principles Approach to Marketing Strategy marketing is an iterative process - > marketing strategies are continuosly refined & improved based on feedback , results & changing market conditions ↳ customers perceptions change-yesterday's marketing plan may no longer be appropriate today constantly have to be ! of change - aware Summary : - marketing departments have become more powerful over time , which may affect firm performance positively ↳ at the same time there is , a greater fundency to hold marketing departments accountable for their spendings many definitions focus (too much) the value creation for customers could result devasting in outcomes - - on for organizations ! - not only use conceptual treatment --combine it with data &metrics ! Vorlesung 2-Customer value creation customer value creation why do we : care ? marketing full of placebo's -- make the customer think the product is working-only comes down to perception > is - > - products are usually a means to an end-products who help to get a certain outcome - for example : drills for holes in the wall or mice fall to get rid of the mice ! ↳ underlying needs determine the scope for substitutes & thus competition four types of customer value : social - functional. > Customer a experiental value V economic Economic value of a product is always in comparison to another product - focus total cost of ownership (or life cycle cost) not just on purchase price is on - economic value to the customer we mean the maximum price that the customer by would be willing to - , pay for the product -willingness to pay (WTP) Economic value is always relative to the second best option & also relative that different people get different values from the product depending on how offen they use it Targeting !  Economic value implications refer to how businesses can measure & communicate the value their product to customers particularly before , begins using (exantelthe customer it > involves understanding the value spectrum (the range of value that different customers might derive - & explaining incremental value (the additional benefits or savings a product provides) justify pricing to -incremental value the additional benefit customer particular product a gets by choosing alternatives : a over ex-ante explanation before a customer starts using the product companies need to explain upfront how - : , much value they will gain- the incremental value is offen explained by comparing the product to a less advanced alternative or showing how it solves a problem more effectively Functional value refers to the practical benefits a product provides to customers - value from product to fullfill a specific need -- focuses on how well a product works & the purpose it serves , rather than aesthetic factors when choosing between such products customers often face difficult trade-offs that don't easily translate into - , economic value -- to measure these trade-offs - conjoint analyses / Set number of attributes that important for you & them calculate the value a are weigh expected => compensatory vs. non-compensatory decision rules Compensatory looking = at expected value & taking everything into account "Consumers evaluate products based on all available attributes , allowing for trade-offs between them -high score on one attribute can compensate for a low score on another "Consumer considers the overall utility of the product-stregths of some features outweigh the weahnesses of others Non-compensatory = want an all-rounder product , that doesn't have any bad attributes > - consumers don't allow trade-offs between attributes - if a product has a low score on one critical attribute the , consumer will reject it , even if it excels in other areas knowing & shaping customer decision-rules hey for STPD /Segmentation Targeting Positioning Differentiation) => is , ,. ↳ can try to introduce new features (which add value) & make competition irrelevant : - Cirque the Soleil Experiential value refers to the emotional sensory, or psychological benefits that a product provides , enhancing the overall customer experience how the product makes the customer - feel d the experience it creates for them > - experiential value may be harder to communicate to customers ex-ante - need to experience to learn about the value - -offen harder to observe (8thus to imitate) for competitors refers to quality of the workplace environmenthee likely to deliver excellent Customeran Social value refers to the benefits that a product provides to society or specific communities - connect the customer to other people (WhatsApp Instagram Facebook) , , ↳ Disney added the feature to watch simultanesly even though people aren't together (Pandemia Additional considerations Internal locus of value refers to the belief that value comes from within the individual-consumers with this perspective tad to focus on how a product meets their personal needs , desires Avalues External locus of value refers to the belief that value is influenced by external factors - consumers with this perspective tad to focus on the value which comes from what it allows me to do in the rest of my life Value creation for customers : Key success metrics - two popular measures for customer's value perception Customer satisfaction : -Cartion ! Subject to response bias & sample selection (not everyone takes part) depends on expectations not comparable across , , different markets ! people respond differently & interpret the -- scale differently & the Net Promoter Score -Cartion ! Subject to response bias & sample selection may , mash what not comparable different categories ! is going on , across Summary : - value creation requires market orientation - however , process may differ /market driven vs. Market driving -4 types of customer value : economic , functional experiential , In social value ↳ value types may be combined in the same product to increase the incremental value for the customer - product innovations can have an internal or external locus of value -- internal improves the consumption experience & an external improves other activities customers & constantly monitor &d the value marketplaces change companies must modify they - - to their customers provide Vorlesung 3-Managing Customer Heterogeneity : STPD(Part 1) How to "the market" segment in a way that creates value ? -customers differ Jreasons why : : individual differences (different preferences life experiences (different cultur , upbringing - functional needs If e.. different laptop for gaming need a then for studying -self-identity limage (care about fashion or sports activities Ihave advertisement of the brand marketing seen an - or haven't - for example 007 car) ↳ customer heterogencity may be latent or hidden ->likely to underestimate ! Customers Differ : Input-Output Framework-used to break down the flow of decision making-for managing customer heterogenity- helps organizing how companies gather information (Inputs) , use processes& analyses to manage diverse customer needs (Processes) , & the create targeted marketing strategies (Outputs) -Input 13Cs) Understand : the Company's strengths & resources , analyze customers to capture their diverse needs, & study competitors to identify opportunities for differentiation -Managing Customer Heterogeneity (Processes) : Use segmentation targeting& positioning , to adress customer diversity supported by analyses , like cluster & conjoint analysis to better understand customer preferences -Output (STP) the final output : is the STP strategy - identifying market segments targeting specific ones, , & positioning your offering to align with the distinct needs of each segment ensuring that you effectively manage customer heterogencity & offer tailored value Segmentation : Why ? Benefits to the Organization Benefits to the Customer -Identification of unfulfilled needs convenience & time savings - better product design - tailored products & services - more targeted promotions - relevant offers Choose influencers for my target group - personalized experience - Increased customer satisfaction # # sustainable profit growth compelling customer experiences ↳ create value for organization ↳ creates value for the customer Segmenting => is the process of subdividing an heterogeneous market into smaller, more homo- geneous groups (segments) based on similarity of characteristics requirements for , behavior an on the likely hood of a similarity in their responsels) to market stimuli Segmentation : How ? Segmentation : Characteristics of useful segmentation ↳ Segmentation living in the past Pampers with Newsletter i : : > - stereotypes can backfire  Now what ? Segmentation : -brands like to characterize the typical for each who represents each person group-person group 1 Characterising segments : - once we separated the market into different to characterize segments , we try the members of the different segments popular approach buyer 2 , : personas - these personas inform your tactics to reach these customers Targeting : Why ? -not everyone is your customer & that's totally fine-but who should be the targetedgroup ? who to target ? Value each of the different segments & then decide ↳ overall attractiveness depends of internal &n external factors ! How ? the DPM Approach theDPM Approach (Desirability Profitability & , Match) helps businesses choose the right market to focus after segmentation segments on · Desirability : assesses how attractive a particular segment is (size growth potential , , strategic alignment -Profitability evaluates how financially : viable targeting a particular segment is -Match : examines how well the company's resources , capabilities & strengths align with the needs & characteristics of the segment Positioning is the active process of arranging for a product to occupy a clear distinctive &d desirable place , , relative to competition customers within , in the minds of the a selected target segment ↳ good positioning should be relevant to consumers , resonate with them I be realistic How ? order to have I need to understand what In a good positioning , problem the customer wants to solve ↳ start with the customers underlying problem STPD Key Success Measures : Another Approach is to measure market & product penetration -market penetration index = market demand /consumers in potential market product penetration index = product demand/# consumers in the target market - ↳ low index may indicate how do values to ! ? opportunity grow demand Cartion you define the market : an Which products do you include ? (Milkshake example) How to size the market-Market Build-Up Method : market demand -(# of buyers in the market) Cannual quantity purchased by · an average buyer). (the average price paid by unit ↳ to think about the drivers very useful because , it forces us of market demand Summary : - customers differ-because of personal life experiences , functional needs &self-identity needs segmentation breaks down heterogenous market into smaller homogeneous segments more - a , bases for segmentation -common in consumer markets are geographic demographics,, psychographics behavioral & benefits sought , - to be useful segmentation must be identifiable , substantial accessible ,stable , , differentiable & actionable targeting has the goal of selecting which segments lif any) to enter & serve - positioning explaines to the target customer why they should buy the product -good - should be relevant to resonate with them& be realistic positioning consumers , Vorlesung 4 - Managing customer heterogencity : STPD(Part 2) Methodological considerations : Clustering (1) ↳ try to form groups : within these groups they are similar but across these groups they are different & maximize group (a) - minimize sum within the sum across the groups (b) Clustering (2) : using data to partition the different customers ↳ data-driver partitioning technique that can be used to identify& classify a large set of heterogeneous consumers into a small number of homogeneous segments (3) Cluster analysis consists of & Clustering two steps segmenting describing : : ↳ to perform these steps , we need to collect two hinds of variables : bases & descriptors 1. Bases desired product features pricing requirements provide the foundations for : or , segmenting consumers according to their differences 2. Descriptors : demographic & geographic information , help explain & describe the resulting clusters but do not , influence the grouping process = D in short : bases form the clusters , while descriptors describe them ! Clustering (4) : 1. in the segmentation step , we identify underlying supsamples of customers that & (5) : are homogeneous in their bases leg ratings. product preferences) & markedly on different from other subsamples - 2 : in the descriping step , we use descriptor variables to explain how the subsamples & differ thereby can derive efficient targeting strategies , tailored to each subsample Cross-Segment Spillovers where marketing activities strategic decisions aimed at one customer : or segment affect another segment even if they were not the intended , target > - often happens when customer segments have overlapping characteristics ↳ can be positive or negative : positive spillover : company launches premium product aimed at high-income customers -marketing might also attract middle-income customers , Who them to perceive the brand as more aspirational leading purchase other products from the brand negative spillover : company targets budget-conscious consumers with a discount campaign , but it also impacts the brand's image for higher-end customers - might perceive brand as less exclusive & lower in quality Summary : -now it shows the importance to consider interconnections between segments in two different ways -first there , may be strong brand positioning spillovers between different customer segments-- Black & Decker had trouble in the tradesmen segment because it was , so successful in the consumer segment - same with Vans -second there , strategic considerations when evaluating the attractiveness might be of a potential target segment-exiting one segment affect competitors' abilities can to compete with you in the other remaining segment Vorlesung 5-Managing Customer Dynamics : AER "how businesses customer dynamics can manage effectively focusing, on the AER model & the CL model > - are now here ! customer dynamics must be treated as an angoing - process where companies should , see customers as valuable assets , evolving 1. Customer Dynamics Understanding : customers change over time due to various factors such as 15 sources) : · discrete life events : fi.., never bought wet wipes before child was burn typical lifecycle : people get more rishavers when getting older · · learning effects appreciate : features more when you know more about it · product lifecycle : older versions become cheaper when new ones come out · constantly changing environmental context : customers preferences are shaped by & businesses need to be to these dynamic , external influences agile & adaptive changes ↳ overall speed of change has increased over the years need to react faster ! -" now Change creates marketing opportunities new so change is not bad good it just - or , depends on what you're doing with it Evolution of approaches for managing customer dynamics : Lifecycle Approach : not a good approach even though it's easy · , because it's throwing away a lot of data of the customers should integrate the data -- Dynamic Customer Segmentation segments : a firm's existing customers on the basis of their similar expected migration patterns BUT doesn't tell me about the value ! , , anything Customer Lifetime Value offers a way to evaluate customers as assets by calculating : the net present value of their expected future cash flows over their lifetime with the firm L & how it also helps in determining which customers are worth investing in much the , to spend company can afford on acquiring or retaining them Dynamic Customer Segmentation Approach : AER AER model classifies customers into three stages , & each requires different strategies · Acquisition engaging potential : customers before theirfirst purchase when , prospects & early customers have similar needs (more homogeneous group) Expansion upselling cross-selling to increase the engagement of current customers · : or made some experiences & are trying to upsell-f i will buy iPhone & Apple Watch ↳ now.. · Retation : focuses on heeping existing customers engaged In preventing them from leaving. In this stage , companies prioritize maintaining strong relationships with their current customers that they satisfied& continue to do , ensuring remain business with the company over time ↳ model , however , does not provide direct information on customer profitability or how much to invest customers between in moving stages Challenges in customer management : - not all customers are equally valuable & companies must also avoid over-investing in unprofitable customers -- this is a critical aspect of both the AER & CLV models -companies must also avoid confusing loyalty with profitability , some are loyal but don'tgenerate money Customer Lifetime Value Model- used to determine the total expected net profit a company can derive from a customer over the entire duration of their relationship -- treats customers as assets , whose value can be quantified similarly to other financial assets ↳ CLV model calculates the net present value of future cash flows generated by a customer it incorporates two critical factors : 1. Retation rate (r) : the probability that a customer will stay with the company in the future 2. Discount rate (d) : reflects the time value of money , as future cash flows are less valuable than immediate ones CFiCashflow enodt T number of periods which the customer = over is - V = crat expected to stay with the company L calculates the value of an "as-yet-to-be-acquired" customer overTperiods (t 0) = higher m the # , the higealso > - IV: = Medi the lower dite lower CCV m = profit margin ; v = retation rate ↳ calculates the value of a "just-acquired" customer (the first transaction has already occurred & is thus ignored) -- += 1 if we want to reflect the insight that we don't know a customers CLV for sure until the customer has left the firm we , should write ECCLV) ↳ if net cash flow is time-invariant , that the retation rate is time-invariant-can let go the upper band to infinity - E(C) = ma) Example : Customer retation rate per year is 80 %, net cash flow per year is 60$ , annual discount rate is 10 % - CV ==220-maximum acquisition costs per customer tees firm can afford to spend on a campaign Contractual. vs Non-contractual settings contractual : (LV is easier to apply because customer , relationships are clearly defined 1 company hnows exactly how many customers originally signed up & how many have , bee lost over the years Non-contractual : becomes harder to assess wether a customer has "churned" or is simply inactive I don'tknow the true retation rate (has a customer already left or are they just hibernating until they're next purchase ) ? -In reality retection rates may time , change across - longer relationships generally lead to higher loyalty - increase in CLV helps firms prictize which customers to acquire expand or retain It offers , a. basis basis for firm valuation, for customer-centric strategies & is increasingly used as a where the total customer equity is seen as the sum of all individual CLVs Summary : - customers if managed appropriately can , be valuable assets for firm a 1 but not all customers are of equal value want to treat different customers , - differently -customer dynamics can be both an opportunity or a threat forfirms dynamic customer segmentation models classify existing customers into - different stages & calculate transition probabilities between stages ↳ but those , probabilities don't immediately tell us , how much we should spend on each customer segment & which customers to acquire in the first place CV models calculate present value of the expected net a customer's net - cash flow during their lifetime with the firm & 6 ? Vorlesung gibt's nicht Vorlesung 7 Managing Sustainable Competitive Advantage Part