Marketing Mix and Customer Value: Definitions, Examples, and Strategies

4. Define each of the 4 P’s of marketing (the marketing mix). Provide an example of each.

Product: Creative value goods vs. services

Price: Capturing Value, money time and energy

Place: Delivering the value Proposition

Promotion: Communicating the Value proposition.

5. What is the definition of value?

The relationship of benefits to costs, what the consumer gets for what they give.

11. List and define the three macro strategies for developing customer value. What are characteristics of each strategy?

Operational Excellence: involves a firm's focus on efficient operations and excellent supply chain management. Good enough

Customer intimacy (excellence): involves a focus on retaining loyal customers and excellent customer service. Just right

Product leadership (excellence): involves a focus on achieving high-quality products. Never good enough

41. Define and provide an example of compensatory decision rules and non-compensatory decision rules.

Compensatory decision rules are the consumer trading off one characteristic against another. Example: Computer weight - Dell .7lbs, Mac .5lbs

No compensatory decision rules are selecting a product based on one characteristic. Example: Light computer, Chevy vs Ford, made in China vs made in USA

44. Define cognitive dissonance. Provide an example of cognitive dissonance.

An uncomfortable state produced by an inconsistency between beliefs and behaviors - buyer’s remorse. Example: Giving to charity.

What is the Big Mac index and why is it useful for companies?

The Big Mac index is how much another country's currency is over/under the valuation against the dollar based on the price of a Big Mac in that country.

What is GDP and why can it be an important metric for firms when considering global expansion?

GDP is the market value for the goods and services produced by a country in a year. GDP can tell you where to make things more or less expensive.

6. What is per capita income and why can it be an important metric for firms when considering global expansion?

Per capita income is the overall income of a population divided by the number of people included in the population. It can tell you where you can sell your goods/services.

26. Provide two advantages and disadvantages to secondary and primary data.

Secondary data - Advantages: saves time in collecting data because it is readily available, free or inexpensive. Disadvantages: may not be precisely relevant to information needed, may not be timely, data sources may be biased.

Primary data - Advantages: specific to immediate data needs and topic at hand, offers behavioral insights not offered by secondary. Disadvantages: costly, time-consuming, requires more sophisticated training and experience to collect data.

11. List and define each of Hofstede's cultural dimensions.

Power Distance: willingness to accept social inequality as natural.

Uncertainty Avoidance: the extent to which the society relies on orderliness, consistency, structure, and formalized procedures of daily life.

Individualism: perceived obligation to and dependence on groups.

Masculinity: the extent to which dominant values are male-oriented.

Time Orientation: Short vs. Long-term orientation. A country that has long-term orientation values long-term commitments and is willing to accept a longer time horizon for something to occur.

12. What are the five global entry strategies we discussed in class? Which are risky, which are not risky? What are some qualities of each strategy?

1. Exporting (low risk, low control): producing goods in one country and selling them in another.