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MARK 301 Final - Tatiana Violonchi Cheat Sheet (DRAFT) by

MARK 301 Final Exam Cheat Sheet

This is a draft cheat sheet. It is a work in progress and is not finished yet.

Customer Journey

CX: subjective response customers have with company
Touchp­oints: instances of intera­ction w/ produc­t/s­ervice
Customer Journey: sum of experi­ences that customers go through when intera­cting with brand/­com­pany. anticipate behaviors, understand path to purchase, track emotions, expect­ations, points of friction, channe­l/t­ouc­hpoint intera­ctions
CX should be adopted by the company as a whole and can lead to strong compet­itive advantage
Person­ali­zation: person­alized service knowing customer, alert to needs, tailored experience
Integrity: build trust in customers company = customers best interest, reliable
Resolution: speedy problem fixes
Time & Effort: conven­ience of customer transa­ction seamless journeys
Empathy: company goes extra mile
Automation: digiti­zation of journey customer can do tasks that were done manually in-person, essential foundation to sticky journey
Proactive Person­ali­zation: use data to customize optimize next steps in journey
Contextual Intera­ction: tech. intera­ctions at key moments understand why customers are on their journey
Journey Innovation: identify new sources of value ongoing experi­men­tation, analysis of customer needs
Collab­orate with new entran­ts-­sub­sti­tut­es-­cus­tom­ers­-co­mpe­tit­ors­-su­ppliers
Flexible Need Point Journey: company understand customer needs to make decisions that achieve purpose, address need at all touchp­oints
CPI: customer perfor­mance indicators better CPI = better KPI
*Success: were customers able to accomplish purpose
Effort: was the intera­ction easy
Emotion: how the customer felt in end ideally delight = loyalty
Customer Engagement: emotio­nal­/ps­ych­olo­gical attachment to brand
Customer Journey and CX are the basis to all the other MARK 301 concepts
  

Retailing

Omnich­annel: integr­ations of different shopping channels into a seamless system requir­ement for BUSN survivalphone, online­-sh­opping, in-store, delivery, offline behaviors
Omnich­annel Issues: UC unders­tanding what to prioritize (lack of internal alignment, funding divergent priori­ties), Focus on tech over value (diffe­ren­tiation with costly items, company focused, neglect customer needs), Failure to invest in line w/ strategy (don't identify strategies at each step, eager to beat compet­ition, fragmented invest­ments = destroy value)
Companies should use R&D to discover where their value lies before expanding their omnich­annel / each omnich­annel requires distinct founda­tional capabi­lities
Assessing customer needs and finding products that answer CX reduces risk and secures future
Retailing: all activities involved in selling produc­ts/­ser­vices to final consumers
Shoppers MARK: entire MARK process focused on turning shoppers into buyers focused on CX and journey efforts

Retail Decision Strategy

Retailers must first define their target markets and then differ­ent­iat­e/p­osition upscale, product variety. Until retailers define & profile their markets they can't focus on price, advert­ising, online­/mobile sites, etc.

Retailers Decision Def.

Product and Service Assortment - Product Assort differ­entiate while matching customers expect­ations variety that retailer stocks, specialty (IKEA), depart­ments (Bloom­ind­ale's), superm­arket (Walmart), category killer (Home Depot)
-Service Mix DIFM or DIY, self-s­ervice, limited service, full service
-Store Atm: unique in-store CX suits target market and enhances brand positi­oning
Prices: high-m­arkups on lower volume or vice versa fit assort., compet­ition, econ. factors
Promotion: combo of advert­ising, personal selling, sales promotion, PR and direct­/social media MARK. special events, blogs, mobile apps, email, digital = person­alized offers CX
Place: locations accessible to target markets shopping center = group of retailers in one location managed as unit All efforts must match positi­oning
 

Digital MARK

Digital MARK: any form of MARK online consumers depend on DM to learn about brands
Digital MARK uses numerous digital tactics & channels to connect with customers (omnich­annel)
DM=targets large audiences & prospects gender, location, age, measurable analytics in real-time, cost-e­ffe­ctive
Attrib­ution Modelling: ID trends in the way ppl buy/re­search product
DM and online channels allow you to follow entire CJ
Social Media connect w/ users & commun­icate brand, Content MARK generate brand awareness, Inbound attract customers at every stage of CJ
Digital Engagement: what content drives most visibility understand audience
CTR: % of clicks on link that generated impres­sions ppl taking action
Conversion Rate: tells if funnel is success (CJ follow­-th­rough) how many leads were converted to buyers
Keyword Rank.: favorable online with SEO
Customer Aqc. Cost: tot. amount to turn user to customer most important KPI
Metaverse: innovativeCJ, real-t­ime­-vi­rtual identi­ties, brand engagement brandingomnich­annel*
Awareness: branded content strategies Appeal to audience
Consid­eration: compared to compet­itors
Intent: resources are being browsed
Purchase: your product being bought
must always understand the need of customers

Pricing

Value Mindset: No focus on cost but focus on creating value for customer
Objective Value: TEV, measure of benefitsto consumers, theore­tical value
Perceived Value: Value customer sees in product survey­s=extra price sensitive consumer
Elements of Value: rooted in hierarchy of need higher elemen­ts=­higher value=­higher pricing
Companies should focus on improving elements from aligned with their core value
Price Custom­ization: creating different circum­stances to sell at different pricesproduct line, availa­bility, category knowledge, taste^
Firm should price beneat­h/equal to perceived value and above COGS. This pricing “creates” value
Price sensit­ivity is greater in high-cost items and when the user is respon­sible for costs
Compet­iti­on-­Based, Cost-Plus, Dynamic, Freemium, High-Low, Hourly, Skimming, Penetr­ation, Premium, Projec­t-B­ased, Value-­Based, Bundle, Psycho­log­ical, Geographic
company prices a solutioncreate value for customer to be willing to pay
Companies should change pricing when they have the knowledge to do so
  

Branding

Brand: sellers promise to deliver consistent features, benefits services to buyer logo, person­ality, packaging
Brand Culture: Meaning others assign to your brand and the story being told
Brand is the meanin­g/e­motion associated with a product or company brand engagement CJ
Brand Equity: a set of assets linked to a brand that +/- value provided by produc­t/s­ervice to firm & customers
good branding = buyers confidence in purchase decision, cleaner interp­ret­ation & easier processing of info, higher satisf­action. Corporate = increases effect­iveness MARK programs, enhances brand loyalty, higher prices and margins, leverage with distri­bution channels, signif­icant compet­itive advantage
Value Propos­ition: statement of functi­onal, emotional, and self-e­xpr­essive benefits delivered by brand & provide customer value
Brand Associ­ation: mental connection between brand and concept soft = Cotonelle
Brand Position: part of brand identi­ty/­value commun­icated to target audience
Companies shouldn't focus on short-term promotions because it devalues brand and decreases customer loyalty
Consid­eration: media=­reduce the # of products consumer considers
Evaluate: input from various external sources to sift
Buy: point of purchase using 4Ps and sales intera­ctions
Enjoy: deeper connection created after purchase this step wasn't included in old metaphor
Marketers should target phases in decision CJ
Customer Lifestyle: sum of customer intera­ction with environ.
Lifestyle MARK: product is perceived to possess ideals & aspira­tions according to consumer wants deeper unders­tanding
Branded commun­ities = direct access to consumers, co-create with customers, increase engage­ment, shape convos

Formulas

Contri­bution Margin = total rev - total variable costs for ROMI use Margin % if given or calculate margin
Unit contr. = selling price - unit variable costs
% Margin on SP/(100% - % Margin on SP) = % Margin on Cost
% Margin on Cost/(100% + % Margin on Cost) = % Margin on Selling Price
Fixed Costs advert­ising, salaries, overhead = Unit contri­bution * BEQ
BEQ = Fixed Costs / Unit Contri­bution AND BEQ = Fixed Costs / (Price – Variable Costs per unit)
Profit Impact = (UC*US)-FC (-Cann­iba­liz­ation if any)
CLV = Lifetime Value (LV) – Acquis­ition Cost (AC)
LV = Customer Lifetime (in months = CL) x Monthly Profit (=MP)
Customer Lifetime (in months) = 1/monthly churn rate
Customer Monthly Profit = Gross Margin – Assigned Costs
AC = Acquis­ition Costs = Initial Costs to Acquire the Customer (i.e. usually primarily advert­ising and sales)
ROMI = (Margin - Invest­ment)/ Investment
Variable Costs manufa­ctu­ring, shipping, commission
→ Calculate the profit of the original product without new initiative (A); → Calculate the profit of new initiative a → Calculate the profit of the original with new initiative (C); → C-A = CANNIB­ALI­ZATION → Total PROFIT IMPACT of initiative = B + C - A
If market share is given in $, divide by retail selling price to obtain market value in units