- Evolution to the new marketing concept, customer centric, is client's firm

customer centric?
- Customer centric-customers perceptions of products and benefits w/
goals attained from product (value)
- Value---customer intimacy, product leadership, operation excellence
- PPD mission statement--speedy trials for customer satisfaction
- brand retention--better long term customer metric (customer
satisfaction)
- customer satisfaction leads to future sales
- CLV=[(monthly profit)*(customer lifetime in months)]-(acquisition
cost)
- high churn=bad!
- increase CLB by:
- reduce acquisition cost
- reduce churn rate-maintain customer loyalty
- increase profitability and revenue
- Samsung
- Harrah's
- What is the purpose of conducting an internal and external analysis prior to
determining marketing strategy? Why does internal and external analysis
occur after conduction Market Definition?
- Define market---external analysis on environment---determine reason
to be active outside existing market---define market again---new external
analysis for new market definition
- internal (S&W)---external (O&T)
- vital is now broad or narrow market
- broad=more competition
- narrow=less customers
- Correct definition leads to segmentation and targeting your market
allocation
- Constantly scan for macro forces and O&T
- AAI Pharma defined too broad and branched out from being just
a CRO and started selling pharmaceuticals (Darvocets), this broad market
definition lead to channel stuffing in order to meet #'s and make up for extra
personnel.
- Product offering, target market, needs satisfying
- Definition of sustainable competitive advantage and "sources" of
sustainable competitive advantage.
- unique strength--strength is relevant and important to customers
- sustainable over the long term
- outcomes
- satisfaction
- loyalty
- market share
- relative profits
- SBU/Product portfolio models: BCG and Market Attractiveness/Business
Position
- Boston Consulting group product portfolio
- high growth, high market share--stars
- high growth, low market share--?
- low growth, high market share--cash cows
- low growth, low market share--dogs
- SBU are groups on the BCG model
- starts with products, target audience
- needs concrete! smaller than corporate product
- determines how to allocate resources
- helps determine the direction of the portfolio (growth, retrench, etc)
- Understand the concept of value propositions and how they can help a firm
compete effectively...use Samsung
- Value you are offering customer that you are focusing on
- operation excellence-lower cost and higher relative quality--optimize,
reducing overhead costs and maximizing value in the operational chain in
order to produce a MORE EFFECTIVE AND COMPETITIVE RATE, low sacrifices
- customer intimacy-focus and shape products and services to fit
customer, investment CLV, VALUE, CUSTOMIZATION
- individual attention--customer relations and tailored products
- product leadership-creative, commercial quick, pursue new solutions,
technological and advanced at best value, highest gains for customer,
BRAND NAME
- Samsung
- Wanted to go from operational excellence to product leadership
and customer intimacy in order to be well developed in all categories of
value proposition and become a global brand
- started as OEM--low cost no branding end as global brand
leader, innovative
- main focus on brand equity--internal education and value of
marketing training
- increased R&D expenses to create more customer friendly
products
- streamlined manufacturing to get products out to customers
faster
- large product breadth attracted more customers than other
brands
- operational excellence and product leadership helped them
jump ahead as a customer centric company
- main barriers were internal education to help managers
understand new marketing and culture (engineering)
- hired one agency to market organizational structure
- surveys and expectations
-Understand segmentation, target marketing, positioning and ways to
implement these tools and how multi attribute models and perceptual
mapping can help understanding consumer choice.
- Segmentation
- Collect, analyze, describe data
- group of potential customers
- homogeneity
- size
- measurable/identifiable
- accessible
- forward segmentation--personal characteristics and differences
between groups in terms of product examined
- backward segmentation--groups demonstrate different behavior
in relation to brand and general characteristics looked for
- Concentrated (single), selective (few), complete
- Positioning
- defendable competitive advantage, personality brand wants
- relative to competition and perceptual mapping
- attribute rankings relative to competition
- assessed by collecting quantitative data from large # of people
and analyzing it then put in visual representation (multi attribute--weights
and importance)
- perceptions not products
- final result in positioning is an IMAGE
- determine position of brand relative to competition and mind of
consumer
- relevant to buyers and unique
- consumer pays less attention and become "moment customers"
and purchase things moment to moment--RELY ON BRAND POSITION
- informational positioning-communicate tangible advantage,
used with new products, use when clear differences between products
- transformational positioning-lifestyle/image, linked to product
advantages, psychosocial
- two sided positioning-means end chain, advanced link to
function of product and values to consumer, LOYALTY
- execution positioning-based on execution of campaign, ad
associations
- multi attribute models and perceptual mapping
- Multi attribute
- value to management
- determines target audience
- what is important
- customer needs with values attached
- competitive advantage can be obtained from
important characteristics--average, frequency, demographics (target market)
- needs & perceptions=VALUE
 -
- perceptual mapping
- brand perceptions
- easily understood coordinate system
- visual and multidimensional
- positioning with elements
-
- Porters Five Forces Model and application with Apple
- ability to assess competitive industry you operate in
- Profitability-
- threat of new entrants-
- bargaining power of customers-
- bargaining power of suppliers-
- threat of substitutes-
- industry attractiveness-
- competitive intensity
- Success Factors
- which resources/skills are important in this market (Apple)
- Marketing: product quality, service, market share, brand
loyalty, awareness
- Innovation: technology, R&D
- Finance: cash flows
- strengths and weaknesses of competitors
- Apple:
- summarizing conclusions drawn
- Competition and generic competitive strategies
- product competition-between brands aimed at same market segment
- product category-between products with comparable characteristics
- generic-products that address same needs
- budget-for $ of consumer, share of wallet
- macro-industry competition
- micro-top 3/4 competitors in firm
- Measuring LTV or customer equity? Interbrand measures brand
equity/value?
- present value of anticipated lifetime revenue of customers minus
acquisition and retention costs (media ads, direct mail, sponsors, news,
seasons, etc)
- RETAIN!
- develop benchmarks for marketing impact and spend on effective
channels
- acquisition and attrition grows customer base
- Net present value, measuring future value is difficult, things we can't
measure well (controls in Wachovia article)
- predicting future revenue
- financial performance
 - role of brand-decision to purchase because of brand, portion of
demand of brand that exceeds demand if unbranded
- brand strength-ability to secure expected future earnings
- economic profit----economic profit*role of brand=branded
earnings--------branded earnings*brand strength discount rate= $$$BRAND
VALUE$$$
- Metrics to measure success of recommendations
- marketing objectives expressed in measures that relate to: market
share or sales & profit
- SBU level chooses market objectives---desired position of brands or
products w/n SBU
- objectives dependant on: attractiveness of segment, phase in product
life cycle, competition, company strategies, financial, long-term objectives
-
-CRM, Salesforce and marketing automation
- Do more with less
- become more profitable by maintaining loyal customers
- detect patterns
- CRM Chain:
- acquire
- grow relationship
- reward loyalty
- retain customers
- single view of customer
- Analytical CRM: allows greater levels of campaign profitability
- insight
- relevant offers and timely messages
- action
- interaction
- operational CRM systems all channels....all touch points (ATM,
internet, mail, etc)
- capture data into data warehouse
- intelligence
- LOOP
- CRM tries to cultivate relationships based on strategic vision and
objectives
- Analyze and prioritize opportunities and communicate with
intelligence and relevance to individual customers
-Balance quality of customer experiences with achieving positive
business results
-How can a sales manager use salesforce automation to manage his or her
sales reps (dashboards)
- centralized platform where managers can see all visible activities and
pipelines
- forecasting allows them ability to see they are all maximizing
productivity
 - track everything in one place
- What is pipeline forecast?
- lead---qualify lead---continue/advance---customer---repeat customer
- important to keep track of ratios and #'s with contacts so you can
improve your pipeline and set goals for yourself
- Importance of new product development, crossing the chasm problems and
other growth strategies. How do you BUILD BRAND EQUITY?
- beginning of brand development!
- Cost, Quality, Speed!
- external pressures
- competition
- pioneering advantage
- technology
- challenges in NPD
- idea shortage
- fragmented markets***--with internet we can develop more
specific products
- social and governmental constraints
- cost
- short product lifecycle
- overestimated demand forecast
- poor design
- poor marketing execution
- high development costs
- strong competitive reaction
- Value Chain
- desired positions
- marketing mix, image, brand image---data mining
- brand loyalty and retention
- brand equity
- financial performance
- CSR activities at each stage of process and understand the notion of doing
well by doing good
-
- Marketing productivity chain...what does it show?
- chain of effects model that relates the specific actions taken by the
firm to overall condition and standing of the firm
- chain of events
- strategy
- tactical marketing actions
- customer satisfaction (marketing assets--brand quality,
customer satisfaction and customer equity)
- customer behavior influences the market changing to market
share and sales
- consider market position driven by marketing assets
 - tactical actions will make changes in customers mental states
but not influenced by firms profit and loss account.
- marketing assets represent reservoir of cash flow that has
accumulated from marketing activities but has not translated to revenue
- asses financial impact of marketing