Week 1: Lecture 1

What is the definition of marketing?

A theory-driven (psychology/economics) and data-driven (statistics) discipline that focuses on understanding, predicting, and influencing consumer behavior and consumer market dynamics

What does economics say about consumer preferences?

1. Exogenous

2. Stable

What does marketing say about consumer preferences?

1. Endogenous

2. Heterogeneous

3. Evolve over time

What is the first principles approach?

According to the first principles approach, marketing is the pursuit of solutions to four fundamental marketing questions and organizes all frameworks, processes, and analyses to answer these questions.

What are the 4 first principles?

1. All customers differ

2. All customers change

3. All competitors react

4. All resources are limited

Firms are trageting smaller and smaller segments. Which three stages in this evolution are there?

Mass marketing —> niche marketing —> one-to-one marketing

What Marketing principle does this chart belong to? What is missing in the box?

#MP1

All potential customers

1. Needs

2. Demographics

3. Size, growth, perceptions

What Marketing principle does this chart belong to? What is missing in the box?

#MP1

Your company

• strengths and weaknesses

• opportunities and threats

What Marketing principle does this chart belong to? What is missing in the box?

#MP1

Your competitors

• strengths and weaknesses

• opportunities and threats

What Marketing principle does this chart belong to? What should be on the question mark?

#MP1

• STP (segmenting, targeting, positioning)

• Perceptual/positional maps

• Customer-centric view

What Marketing principle does this chart belong to? What is missing in the box?

#MP1

• Factor analysis

• Cluster analysis

• Discriminant analysis

What Marketing principle does this chart belong to? What is missing in the box?

#MP1

Industry Segmentation

What Marketing principle does this chart belong to? What is missing in the box?

#MP1

Target Segment

What Marketing principle does this chart belong to? What is missing in the box?

#MP1

Positioning Statement

What does CRM stand for?

Customer Relationship Management

What is the input for #MP1?

The 3 C’s

What is the input for #MP2?

CRM data

What Marketing principle does this chart belong to? What is missing in the box?

#MP2

Your Customers

• Individual customers’ sales, margins, costs

• Behaviors/needs over time/events

What Marketing principle does this chart belong to? What is missing in the box?

#MP2

Past Marketing Programs

• Source of customers

• Past programs targeted at specific customers

What Marketing principle does this chart belong to? What is missing in the box?

#MP2

Lost customers

• Cause of defection

• Characteristics of lost customers

What Marketing principle does this chart belong to? What should be on the question mark?

#MP2

• Lifecycle approach

• Dynamic segmentation approach

• AER (Acquisition, Expansion, Retention) model

What Marketing principle does this chart belong to? What should be on the question mark?

#MP2

• Choice Models

• Customer Lifetime Value (CLV)

• Time Series/Markov Models

What Marketing principle does this chart belong to? What is missing in the box?

#MP2

Segmentation of Customers

What Marketing principle does this chart belong to? What is missing in the box?

#MP2

AER Positioning Statements

What Marketing principle does this chart belong to? What is missing in the box?

#MP2

AER Strategies

Given enough money and time most strategies can be copied. Thus, companies need to build a “barrier” to avoid being copied, giving them time to adapt to innovation by others. What is the term for this?

SCA, Sustainable Competitive Advantage

What Marketing principle does this chart belong to? What is missing in the box?

#MP3

Positioning Statements

• Target (external customers)

• AER (internal personas)

What Marketing principle does this chart belong to? What is missing in the box?

#MP3

AER Strategies

• Strategies tested for each segment/AER stage

What Marketing principle does this chart belong to? What is missing in the box?

#MP3

Future Trends

• Technology trends

• Regulatory trends

• Socioeconomic trends

What Marketing principle does this chart belong to? What is missing in the box?

#MP3

• SCA

• Brand, offering, relationship equity stack

• AER strategy and BOR equity grids

• Brand and relationship management

• Innovation processes

What Marketing principle does this chart belong to? What is missing in the box?

#MP3

• Experiments

• Conjoint Analysis

• Choice models

What Marketing principle does this chart belong to? What is missing in the box?

#MP3

SCA’s

• Existing SCA’s - why you win now

• Future SCA’s - how you will win in th future

What Marketing principle does this chart belong to? What is missing in the box?

#MP3

BOR Strategies

• Brand strategies

• Offering/innovation strategies

• Relationship marketing strategies

What Marketing principle does this chart belong to? What is missing in the box?

#MP4

Positioning Statements

• Who, what, and why, overall and for each persona, across AER stages

What Marketing principle does this chart belong to? What is missing in the box?

#MP4

AER Strategies

• What strategies work best for each persona across AER stages

What Marketing principle does this chart belong to? What is missing in the box?

#MP4

BOR Strategies

• Brand

• Offering/innovation

• Relationship marketin

What Marketing principle does this chart belong to? What is missing in the box?

#MP4

Heuristic approach

Attribution approach

What Marketing principle does this chart belong to? What is missing in the box?

#MP4

Response models

Experiments

What Marketing principle does this chart belong to? What is missing in the box?

#MP4

Plans and budgets

• Budget size

• Budget allocation

• Time horizon

What Marketing principle does this chart belong to? What is missing in the box?

#MP4

Marketing metrics

• Marketing metrics

• Financial metrics