Comprehensive Marketing Concepts: 4 Ps, EVC, Ansoff, BCG, and CRM

What does marketing primarily aim to create and exchange?

Customer value

What are the 4 Ps of marketing?

Product, Price, Place, Promotion

What differentiates needs wants, and demands?

Needs = basic requirements; Wants = needs shaped by culture/personality; Demands = wants backed by buying power

Who makes up a market?

All actual and potential buyers sharing a need or want

What is customer relationship management (CRM)?

Building and maintaining profitable customer relationships through value delivery

Define customer lifetime value (CLV).

Total expected profit from a customer over their relationship with a firm

What is market share?

Your firm's sales divided by total market sales

List the four customer value types.

Monetary (Economic), Functional, Experiential, Social

Formula for Net Promoter Score (NPS).

% Promoters − % Detractors

Formula for relative market share.

Your share ÷ largest competitor's share

What does EVC stand for?

Economic Value to the Customer

Define EVC.

Max price a customer should pay = (current option lifecycle cost − your option lifecycle cost) + performance gain value

What are the components of lifecycle cost in EVC?

Purchase, startup/implementation, maintenance/operations, productivity impact

How is a compensatory multi-attribute model calculated?

Sum of (weight × rating) for each attribute

What is a non-compensatory decision rule?

Options must meet cutoffs on key attributes or are eliminated

List the 7 steps of the marketing planning process.

Situation analysis, Objectives, Resource allocation, STP, Marketing mix, Implementation, Control

Define SMART objectives.

Specific, Measurable, Attainable, Relevant, Timely

Name the four competitive postures.

Leader, Challenger, Follower, Specialist (Nicher)

What is market penetration in Ansoff's Matrix?

Existing product in existing market

What is product development in Ansoff's Matrix?

New product in existing market

What is market development in Ansoff's Matrix?

Existing product in new market

What is diversification in Ansoff's Matrix?

New product in new market

Axes of BCG Matrix.

Market growth vs Relative market share

BCG categories.

Stars, Cash Cows, Question Marks, Dogs

Typical strategy for Cash Cows.

Milk profits to fund Stars or Question Marks

Company orientation focused on efficiency.

Production orientation

Orientation focused on product excellence.

Product orientation

Orientation focused on aggressive selling.

Sales orientation

Orientation focused on customer needs and relationships.

Marketing orientation

Orientation considering long-term societal welfare.

Societal marketing orientation

Key internal analysis areas.

Value chain, brand equity, CRM, distribution, communication

Key micro-environment forces.

Market size, growth, profitability, competitors, substitutes, distribution

Porter's Five Forces.

Rivalry, Supplier power, Buyer power, Threat of entry, Threat of substitutes

Macro-environment framework.

PESTEL (Political, Economic, Social, Technological, Ecological, Legal)

SWOT Analysis quadrants.

Strengths, Weaknesses, Opportunities, Threats

Define benchmark.

Comparing performance against best practice or competitors

Example of functional value.

Product features and performance

Example of experiential value.

Design, brand, emotion, service

Example of social value.

Influencers, network effects, social status

Example of monetary value.

Cost savings or financial benefits

What causes marketing myopia?

Focusing on products instead of customer needs

What step follows situation analysis?

Set objectives

Which Ansoff strategy is "new product × existing market"?

Product development

Relative share = 0.5 and high growth market → what BCG category?

Question Mark

High buyer power and many substitutes → what strategy?

Differentiate on experiential or social value

If Promoters = 55% and Detractors = 18%

what's NPS?,37

Airline industry: high rivalry and supplier power → attractive or unattractive?

Unattractive

Which orientation risks marketing myopia?

Product orientation

Which EVC driver usually matters most in B2B cases?

Operating or maintenance cost savings

Purpose of situation analysis.

Understand environment and internal capabilities to inform strategy

What makes an objective measurable?

Includes quantifiable target and time frame

Dollar Shave Club's main value levers.

Monetary + Functional + Experiential (brand voice)

What's the final step in marketing planning?

Control and contingency planning

How is total customer value best delivered?

By aligning product, price, place, and promotion to the target segment