Exam one Study Guide
• Explain the 3 V framework of managing value.
o Company value
o Consumer value
o Collaborator value
▪ The intersection of all three is the optimal value proposition. o Developing a value proposition involves defining the value that the offering creates for its target customers, the company, and its collaborators. Because value creation is the ultimate goal of marketing, the selection of target customers is guided by the company’s ability to develop an offering that will satisfy a particular need of its target customers better than the competition, and do so in a way that creates value for the company and its collaborators. • Describe the G-STIC process.
▪ Basis for developing a marketing plan
o Marketing management involves a series of activities that create value for the relevant participants in the marketing exchange: target customers, the company, and its collaborators. The process by which a company creates value is captured by five key activities: setting a goal, developing a strategy, designing the tactics, defining an implementation plan, and identifying a set of control metrics to measure the success of the proposed action. It calls for internal consistency of its individual elements. • What are the 5-C’s?
▪ Potential buyers whose needs the company aims to fulfill with its offerings, either consumers or businesses o Company
▪ The particular business unit managing the offering where its success is defined by its resources o Collaborators
▪ Entities that work with the company to create value for target customers, including suppliers, manufacturers, distributors, R&D companies, service providers, external sales force, advertising agencies, and marketing research companies o Competitors
▪ Entities with offerings that aim to fulfill the same needs of the same customers as the company’s offering o Context
▪ Involves the relevant aspects of the environment in which the company operates, including economic, technological, sociocultural, regulatory, and physical factors ▪ These factors define the markets in which a company’s offerings compete • Describe each of the seven marketing mix factors.
o The product aspect of the offering reflects its key functional characteristics. Products typically change ownership during purchase; once created, they can be physically separated from the manufacturer and distributed to buyers via multiple channels o The service aspect also reflects the offering’s functional characteristics but, unlike products, do not imply a change in ownership. Customers obtain the right to use the service for a period of time and cannot be separated from the provider and are not inventoried o The brand aims to create a set of unique associations that enrich the offering’s value beyond its produce and service benefits o The price refers to the amount of money the company charges its customers and collaborators for the benefits provided its offering o Incentives are tools used to selectively enhance the value of the offering for its customers, collaborators, and/or employees and can be monetary or non-monetary o Communication informs current and potential buyers about the offering and is used in conjunction with the other six marketing mix variables o Distribution refers to the channel through which customers receive the offering and can involve each of the other six variables Chapter 4
• What is customer value?
o An offering’s value is determined by the fit between its attributes and the needs of target customers: The better...