Marketing 101: Week Two Exam Study Guide.
Marketing 101: Week Two Exam Study Guide. Marketing 101
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This 2 page Study Guide was uploaded by Lisa Notetaker on Saturday September 3, 2016. The Study Guide belongs to Marketing 101 at 1 MDSS-SGSLM-Langley AFB Advanced Education in General Dentistry 12 Months taught by Professor Kahn in Fall 2016. Since its upload, it has received 73 views. For similar materials see Introduction to Marketing in Business at 1 MDSS-SGSLM-Langley AFB Advanced Education in General Dentistry 12 Months.
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Date Created: 09/03/16
Intro to Marketing 101. Study Guide: Week Two Exam. The “MI6” Module #2. Introduction From ProductCentric to CustomerCentric Management: Unit Notes/Study Guide. Week Two. Main ideas ● The ProductCentric Approach: Overall objective for most commercial enterprises: ● Maximize shareholder value. ● Maximum profits via volume and cost reductions. ● How firms gauge their performance: ● Volumes they are delivering. ● Changes in cost. ● Market share which are key performance indicators. ● Growth through extending the product. ● Productoriented organization. ● Competitive advantage is product expertise. ● Cracks in the Productcentric approach: ● Commoditization. ● Smart Customers. ● Retail Saturation. ● Globalization ● Deregulation ● End to end solutions, which can require products/services from several different vendors. ● Customer level trackinginformation systems, data from customers. ● Direct Marketing: How companies utilize it. ● The customer is the unit of analysis. ● The companies know who their customer is and what they purchase, and use this information to conduct and determine marketingbased communication. ● Leverages and continuously seeks to determine customer value, on an independent basis. ● Definition of CustomerCentricity: ● Agenda/strategy: For a company’s development/delivery of any and all products/services around the present/future needs of a particular set of customers, which allows for maximum long term financial value for the company/firm. ● Required: The company has to be willing/able to change the way it is organized, the performance metrics must be flexible, and employee/distributor incentive structures must allow for change, and be focused on longrun value and creation/delivery process. Intro to Marketing 101. Study Guide: Week Two Exam. ● Living In A CustomerCentric World: ● The goal of any firm is to increase and maximize shareholder value. ● Another goal is to celebrate ustomer Heterogeneity: as well as distinguishing profitable customers from those that bring in less profits. ● Customer Heterogeneity: The idea that certain customers are not created equal, therefore bringing in less/more of a profit. ● Shareholder Value: The measure of the company’s success is the extent to which it enriches shareholders. (Source: Google.) ● The focus ought to be on the Customer Lifetime Value a s opposed to profits generated in the past. ● Customer Lifetime Value: Future profitability of any customer. ● Success come about via enhanced /efficient customer acquisition, retention, and development as well as organizational structure. ● The competitive advantage would be considered the relationship expertise with respect to focal customers (customers the company and/or firm is focused/focusing on in relation to profits.) ● It’s imperative to note that customer centricity doesn’t mean to solely focus on the most valuable customers and eliminate the least: rather, it’s important to focus on the whole rather the sum of it’s parts, due to all customers adding a stability to the company/firm’s overall future and present, as as the customer base. ● The “paradox” of this is that as firms increases its central focus on select group of customers, the more the less profitable customers are needed to stabilize the mix, overall. ● Conclusion/Summary CustomerCentricity has perks and advantages, but it’s important to note that focusing on only a key aspect of profitable customers will sabotage the company’s bottom line and future overall. There are many derivatives that come from using this as the firm.company’s overall focus, but caution should always be undertaken.
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