DMSB 716: Global Marketing Management Practice Flashcards

5 Cs

Analysis framework consisting of Customer, Company, Collaborator, Competitor, and Context used to study five lenses before deciding strategy.

STP

The "aspiration decision" sequence comprising Segmentation, Targeting, and Positioning to decide who a firm serves and what it stands for.

The 4 Ps

The action plan and levers a marketer controls: Product, Price, Place, and Promotion.

Customer Lifetime Value (CLV)

The total worth of a customer over the full relationship, calculated as: $CLV = \frac{m \times r}{1 + d - r}$

Customer Acquisition Cost (CAC)

An acquisition KPI calculated as: $\text{Total spend} \text{ "/ " } \text{new customers}$

Customer Churn Rate

A retention metric representing the share of customers who leave over a period: $(\text{Lost} \text{ "/ " } \text{starting customers}) \times 100$

Porter's Five Forces

A structuralist view of industry conditions including: Threat of new entry, Bargaining power of suppliers, Bargaining power of buyers, Threat of substitutes, and Intensity of rivalry.

Resource-Based View (RBV)

A perspective where internal capabilities—specifically sensing, seizing, and reconfiguring—are the primary engines of competitive advantage.

Blue Ocean Strategy

A strategy focused on creating uncontested market space and making the competition irrelevant rather than competing in existing "Red Oceans."

ERRC Framework

The "Four Actions Framework" for Blue Ocean value innovation: Eliminate, Reduce, Raise, and Create.

Multichannel vs. Omnichannel

Multichannel involves independent silos while Omnichannel involves deep, real-time data sharing to create one seamless customer journey.

Prospect Theory

Proposed by Kahneman & Tversky (1979), it states that losses are weighted about $2 \times$ versus equal gains.

Endowment Effect

The psychological phenomenon where individuals irrationally overvalue what we already own