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AU / Marketing / MKTG 3310 / How does value creation influence potential magnitude of the advantage

How does value creation influence potential magnitude of the advantage

How does value creation influence potential magnitude of the advantage

Description

School: Auburn University
Department: Marketing
Course: Principles of Marketing
Professor: Jeremy wolter
Term: Fall 2015
Tags: Marketing, Wolter, week 3, notes, and auburn
Cost: 25
Name: Principles of Marketing Notes Week 3
Description: Principles of Marketing Notes for Jeremy Wolter, week 3. These are the first set of notes for chapter 2.
Uploaded: 01/29/2016
2 Pages 50 Views 5 Unlocks
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Principles of Marketing Notes Week 3 January 26, 2016- Test 1


How does value creation influence potential magnitude of the advantage?



January 28, 2016

∙ NOT IN THE BOOK- Value creation/ value appropriation Hover board- there are a lot of brands out there (a lot of  knock offs came out quickly.)  

Value of creation- creating products with value  value appropriation- three main groups- firm, society and  competitors  

You have to decide how you appropriate value back (and  if you want to)

Jonas Salks left $7 billion on the table because he didn’t  patent his vaccine- did this on purpose

∙ Value creation influences the potential magnitude

of the advantage……value appropriation influences the amount of the advantage the firm is able to capture and the length

of time the advantage persists


What does value appropriation indicate?



∙ Another Example of this- Johnson and Johnson- Tylenol- a  lot of times companies move on to something else when  generic brands hit the market. Tylenol didn’t do this- they made the brand so recognizable that this is the brand we  go to

∙ Pediatric Easy Dosing System- MeDirect- created by  Michael Jerome. He patent his product

∙ Wikipedia- they get their money from donations because  they believed information should be available to  everyone. They could have used ads but they did not.  We also discuss several other topics like What is required to make atp?

∙ Air Jordans- Secondary market- the price goes up a lot  from what Nike sold them for when people re-sell them to collectors. Nike could figure out which shoes will go for  extreme prices and set the prices for the shoes- but  instead they allow the secondary market to occur.


What makes up marketing mix and how do they each function?



∙ Is marketing more related to value creation or value  appropriation? Typically marketing from a firm standpoint as a value of appropriation tool. Value creation- R&D,  Supply and chain Coordination, Co-creation Don't forget about the age old question of What are the major evolutionary trends?

Value appropriation- patents, branding, advertising.  Basically firms have to figure it out

∙ Marketing strategy- Specifies a target market and a  marketing mix

Target Market-a fairly homogenous group of

Customers to whom a company wants to appeal.

∙ Marketing mix: The controllable variables the

company puts together to satisfy the target

market.

∙ Target- Verifying some element of the mix for a target  market (rifle approach)

Mass- Aiming at “everyone” Aiming at “everyone” with the same ∙ mix (shotgun approach)

∙ Coke uses target marketing- they develop several  variation of products. (if they did mass marketing they  would just have coke)

∙ Is there anyone who engages in mass-marketing? Google decent example- electric company- but there are no great examples for the most part.  

∙ Why do companies engage in targeted marketing? We  hope that incremental amount of money that it takes to  target will be off set by the profit that can be brought in.  

∙ Making marketing accountable- Customer lifetime value total stream of purchases a customer may contribute over their lifetime (i.e. length of relationship)

∙ Customer equity- the expected profitability FROM A  FIRMS CUSTOMERS OVER SOME PERIOD OF TIME- you can  now calculate how much your customers are worth- these calculations can change the equity  We also discuss several other topics like What does the monroe doctrine state?
If you want to learn more check out How does variety of lean protein affect eating pattern?
We also discuss several other topics like What is relative frequency and cumulative frequency?
We also discuss several other topics like Why does the landscape look the way it does?

∙ The Marketing Mix (the 4 P’s) - Product, price, place,  promotion- how to make a product more attractive to  customers you have to try to find the perfect combination of these 4 P’s. This idea came from a goods kind of  economy- we are now a serive economy

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