Marketing Test 1

FCC

(Federal Communications Commission) regulates the television and radio industry, grants licenses to television and radio stations, and blocks monopolies.

marketing return on investment

(Gross Profit - Marketing Investment) / Marketing Investment -measure of return based on marketing investments However, those free-spending days have now been replaced by a new era of marketing measurement and accountability. More than ever, today's marketers are being held accountable for linking their strategies and tactics to measurable marketing performance outcomes. One important marketing performance measure is marketing return on investment (or marketing ROI). Marketing ROI is the net return from a marketing investment divided by the costs of the marketing investment. It measures the profits generated by investments in marketing activities. Marketing ROI can be difficult to measure. In measuring financial ROI, both the R and the I are uniformly measured in dollars. For example, when buying a piece of equipment, the productivity gains resulting from the purchase are fairly straightforward. As of yet, however, there is no consistent definition of marketing ROI. For instance, returns such as engagement, advertising, and brand-building impact aren't easily put into dollar returns.

characteristics of effective goals

*S*pecific *M*easurable *A*ttainable *R*ealistic *T*ime-bound

Types of buying decision behavior

- *Complex*: highly involved in a purchase and perceive significant difference among brands, has consequences - *Dissonance-Reducing*: consumers are highly involved with an expensive, infrequent, or risky purchase but see little difference from brand to brand (minimize choice to a variable that makes sense to you), noise in your brain - Habitual buying behavior: low involvement little brand difference - Variety-seeking: low consumer involvement but significant perceived brand differences

Maslow's hierarch of needs

-our needs must be satisfied in order -most things bought from a social need self fulfillment status, respect, prestige friendship, belonging, love freedom from harm, financial security food, water, shelter, oxygen

Factors influencing customer behavior

1. *Cultural*: forms values and perceptions, basic cause of wants and behavior, learned from family. Subculture is a group with shared values. cultures shift 2. *Social*: membership groups, reference groups, aspirational group, informal groups 3. *Personal factors* 4. *Psychological factors*: difference between current and desired state, wanting to satisfy a need, strong need causes motivation.

Change consumer attitudes by

1. Changing beliefs 2. Lessen importance of an attribute 3. Add new attributes

Marketing Research Process

1. Problem Recognition 2. Research design a. secondary data b. primary data (qualitative and quanitative) 4. Data analysis 5. Report findings (paper and presentation)

Steps in the buyer decision process

1. Problem Recognition: recognize problem or need 2. Information search: seeking value 3. Evaluation of alternatives: assessing value 4. Purchase decision: which brand, buying value 5. Postpurchase behavior: further action after based on satisfaction

Steps in the business buying decision process

1. problem recognition: someone in company recognizes a problem or need that can be met by acquiring a good or a service 2. general need description: buyer describes the general characteristics and quantity of a needed item 3. product specification: buying organization decides on and specifies the best technical product characteristics for a needed item 4. supplier search: buyer tries to find the best vendors 5. proposal solicitation: request for proposal (RFP) buyer invites qualified suppliers to submit proposals 6. supplier selection: buyer reviews proposals and selects a supplier or suppliers 7. order-routine specification: purchase decision/order, final order, listing specifications and everything else needed 8. performance review: buyer assesses performance and decides what to do with the supplier

generational cohort

A group of people of the same generation—typically have similar purchase behaviors because they have shared experiences and are in the same stage of life. Do brands need to create separate products and marketing programs for each generation? Some experts warn that marketers need to be careful about turning off one generation each time they craft a product or message that appeals effectively to another. Others caution that each generation spans decades of time and many socioeconomic levels. For example, marketers often split the baby boomers into three smaller groups—leading-edge boomers, core boomers, and trailing-edge boomers—each with its own beliefs and behaviors. Similarly, they split Generation Z into kids, tweens, and teens. Thus, marketers need to form more precise age-specific segments within each group. More important, defining people by their birth date may be less effective than segmenting them by lifestyle, life stage, or the common values they seek in the products they buy.

Robinson-Patman Act

Amends the Clayton Act to define price discrimination as unlawful. Empowers the FTC to establish limits on quantity discounts, forbid some brokerage allowances, and prohibit promotional allowances except when made available on proportionately equal terms.

strategic marketing planning process

Analysis leads to 1. Planning: Develop Strategic Plans 2. Implementation: Carry out plans 3. Control: measure and evaluate results, take corrective action

Derived demand

Business demand that ultimately comes from (derives from) the demand for consumer goods. -Ripple effect -Not always direct

business buying participants/roles

Buying center: all of the individuals and units that participate in the business decision-making process 1. Initiators: "I need" (sometimes the users) 2. Users: Members of the buying organization who will actually use the purchased product or service. 3. Influencers: People in an organization's buying center who affect the buying decision; they often help define specifications and also provide information for evaluating alternatives, can be users 4. Buyers: People in an organization's buying center who make an actual purchase (specific department) 5. Deciders: People in an organization's buying center who have formal or informal power to select or approve the final suppliers 6. Gatekeepers: People in an organization's buying center who control the flow of information to others. Users are members of the organization who will use the product or service. In many cases, users initiate the buying proposal and help define product specifications. Influencers often help define specifications and also provide information for evaluating alternatives. Technical personnel are particularly important influencers. Buyers have formal authority to select the supplier and arrange terms of purchase. Buyers may help shape product specifications, but their major role is in selecting vendors and negotiating. In more complex purchases, buyers might include high-level officers participating in the negotiations. Deciders have formal or informal power to select or approve the final suppliers. In routine buying, the buyers are often the deciders, or at least the approvers. Gatekeepers control the flow of information to others. For example, purchasing agents often have authority to prevent salespersons from seeing users or deciders. Other gatekeepers include technical personnel and even personal secretaries.

Internal data

Comes from many sources Information helps get powerful insights and advantages Sometimes incomplete or wrong Many companies build extensive internal databases, collections of consumer and market information obtained from data sources within the company's network. Information in an internal database can come from many sources. The marketing department furnishes information on customer characteristics, in-store and online sales transactions, and web and social media site visits. The customer service department keeps records of customer satisfaction or service problems. The accounting department provides detailed records of sales, costs, and cash flows. Operations reports on production, shipments, and inventories. The sales force reports on reseller reactions and competitor activities, and marketing channel partners provide data on sales transactions. Harnessing such information can provide powerful customer insights and competitive advantage.

Customer vs Competitor orientations

Customer Orientation: focuses on customer, good but must not forget about competition, dont be blind Competitor Orientation: Strong company but dont be too reactive, remember what the customer wants also A competitor-centered company is one that spends most of its time tracking competitors' moves and market shares and trying to find strategies to counter them. This approach has some pluses and minuses. On the positive side, the company develops a fighter orientation, watches for weaknesses in its own position, and searches out competitors' weaknesses. On the negative side, the company becomes too reactive. Rather than carrying out its own customer relationship strategy, it bases its own moves on competitors' moves. As a result, it may end up simply matching or extending industry practices rather than seeking innovative new ways to create more value for customers. A customer-centered company, by contrast, focuses more on customer developments in designing its strategies. Clearly, the customer-centered company is in a better position to identify new opportunities and set long-run strategies that make sense. By watching customer needs evolve, it can decide what customer groups and what emerging needs are the most important to serve. Then it can concentrate its resources on delivering superior value to target customers.

Business market characteristics

Demand is derived Goods are mainly technical Emphasis on delivering and financing (sometimes forward buying) Direct selling Price negotiation multiple buyers involved order quantities and costs are much larger more geographically dispersed far fewer but far larger buyers inelastic and more fluctuating demand more decision participants more professional purchasing effort longer and more formalized buyer and seller are often much more dependent on each other

Exploratory versus descriptive versus causal research (examples of both)

Exploratory: used for qualitative(touchy-feely), getting to know the people, more personal ex: Focus groups, depth interviews, ethnographic studies Descriptive: quantitative(specific, objective) ex: survey, observation, test markets causal research: cause and effect, sampling methods, different groups of people, direct relationship between stimulus and response ex: stratified, quota, random, convenience After the problem has been defined carefully, the manager and the researcher must set the research objectives. A marketing research project might have one of three types of objectives. The objective of exploratory research is to gather preliminary information that will help define the problem and suggest hypotheses. The objective of descriptive research is to describe things, such as the market potential for a product or the demographics and attitudes of consumers who buy the product. The objective of causal research is to test hypotheses about cause-and-effect relationships. For example, would a 10 percent decrease in tuition at a private college result in an enrollment increase sufficient to offset the reduced tuition? Managers often start with exploratory research and later follow with descriptive or causal research.

FTC

Federal Trade Commission. Protects consumers from misleading and fraudulent advertising. Reviews advertising claims. Can order a company to change their ad

Porter's Basic Competitive Strategies

Focus on particular markets or segments, don't get stuck in middle -want to be a leader -product focused or customer focused(segment or market or price) Overall cost leadership. Here the company works hard to achieve the lowest production and distribution costs. Low costs let the company price lower than its competitors and win a large market share. Walmart, Lenovo, and Spirit Airlines are leading practitioners of this strategy. Differentiation. Here the company concentrates on creating a highly differentiated product line and marketing program so that it comes across as the class leader in the industry. Most customers would prefer to own this brand if its price is not too high. Nike and Caterpillar follow this strategy in apparel and heavy construction equipment, respectively. Focus. Here the company focuses its effort on serving a few market segments well rather than going after the whole market. For example, Ritz-Carlton focuses on the top 5 percent of corporate and leisure travelers. Bose concentrates on very high-quality electronics products that produce better sound. Hohner owns a stunning 85 percent of the harmonica market. Companies that pursue a clear strategy—one of the above—will likely perform well. The firm that carries out that strategy best will make the most profits. But firms that do not pursue a clear strategy—middle-of-the-roaders—do the worst.

Marketing myopia

Focusing on only the 'thing' rather than what the 'thing' provides to customers -see what is right infront of you, aka what you make -need to focus on what is does and the benefit it has

FDA

Food and Drug Administration. The agency that is responsible for determining if a food or drug is safe and effective enough to be sold to the public.

Industry Competition Vs. Market Competition

Industry: direct competition, same product Market: Indirect, same target customers, similar goal of product

SWOT analysis

Managing the marketing function begins with a complete analysis of the company's situation. The marketer should conduct a SWOT analysis (pronounced "swat" analysis), by which it evaluates the company's overall strengths (S), weaknesses (W), opportunities (O), and threats (T) (see Figure 2.7). Strengths include internal capabilities, resources, and positive situational factors that may help the company serve its customers and achieve its objectives. Weaknesses include internal limitations and negative situational factors that may interfere with the company's performance. Opportunities are favorable factors or trends in the external environment that the company may be able to exploit to its advantage. And threats are unfavorable external factors or trends that may present challenges to performance. The company should analyze its markets and marketing environment to find attractive opportunities and identify threats. It should analyze company strengths and weaknesses as well as current and possible marketing actions to determine which opportunities it can best pursue. The goal is to match the company's strengths to attractive opportunities in the environment while simultaneously eliminating or overcoming the weaknesses and minimizing the threats. Marketing analysis provides inputs to each of the other marketing management functions.

Four Competitive strategies

Market Leaders: expand total demand, protect current market share, expand market share Market Challengers: observes what they leader has done successful and improves on it Market Followers: Play along and not rock anything Market Nichers: go after small profitable segments that are under used by others

Product/Marketing Expansion Grid

Marketing has the main responsibility for achieving profitable growth for the company. Marketing needs to identify, evaluate, and select market opportunities and lay down strategies for capturing them. One useful device for identifying growth opportunities is the product/market expansion grid market penetration—making more sales in its current product lines and markets. market development—identifying and developing new markets for its current products. product development—offering modified or new products to current markets. diversification—starting up or buying businesses outside of its current products and markets.

Differences between a need, want, and demand

Need: things we need to survive (physical, social, and individual) Want: The form needs take as they are shaped by culture and personality Demand: Wants backed by buying power

Elements of the External Environment

Political: laws, gov agencies, and pressure groups that influence or limit various organizations and individuals in a given society Economic: consists of economic factors that affect customers purchasing power and spending patterns Social, cultural, demographic (Generational Cohorts): Institutions and other forces that affect a societies basic values, perceptions, preferences, and behaviors -Generational Cohorts: Technology: Forces that create new technologies, creating new product and market opportunities Legal/Regulatory: laws created that affect companies ability to work (Natural) Environment: Going green, keeping up with environmentalist

Probability versus non-probability sampling techniques

Probability uses different groups of people chosen to see what the chances are of certain things while nonprobabilty uses specific groups with certain people to discover a specific thing they are looking for

Sherman Antitrust Act

Prohibits monopolies and activities (price-fixing, predatory pricing) that restrain trade or competition in interstate commerce.

Secondary data vs Primary data

Secondary: data already had Primary: new data (qualitative and quantitative) To meet the manager's information needs, the research plan can call for gathering secondary data, primary data, or both. Secondary data consist of information that already exists somewhere, having been collected for another purpose. Primary data consist of information collected for the specific purpose at hand.

value disciplines

Something to focus on in order to make a name for yourself in one excellent thing, competitive advantage, focused on customer value Operational excellence. The company provides superior value by leading its industry in price and convenience. It works to reduce costs and create a lean and efficient value delivery system. It serves customers who want reliable, good-quality products or services but want them cheaply and easily. Examples include Walmart, IKEA, Zara, and Southwest Airlines. Customer intimacy. The company provides superior value by precisely segmenting its markets and tailoring its products or services to exactly match the needs of targeted customers. It specializes in satisfying unique customer needs through a close relationship with and intimate knowledge of the customer. It empowers its people to respond quickly to customer needs. Customer-intimate companies serve customers who are willing to pay a premium to get precisely what they want. They will do almost anything to build long-term customer loyalty and to capture customer lifetime value. For example, retailer Nordstrom is a customer-intimacy all-star that's obsessed with "Taking care of customers no matter what it takes" (see Real Marketing 18.2). Other companies that practice customer intimacy include Lexus, Zappos, L.L. Bean, and Ritz-Carlton hotels. Product leadership. The company provides superior value by offering a continuous stream of leading-edge products or services. It aims to make its own and competing products obsolete. Product leaders are open to new ideas, relentlessly pursue new solutions, and work to get new products to market quickly. They serve customers who want state-of-the-art products and services regardless of the costs in terms of price or inconvenience. One example of a product leader is Tesla Motors:

Types of business buying situations

Straight rebuy: little involvement, habitual purchases Modified rebuy: product specifications change, new supplier enters market (middle involvement) New Buy: more involved, beginning process There are three major types of buying situations.5 In a straight rebuy, the buyer reorders something without any modifications. It is usually handled on a routine basis by the purchasing department. To keep the business, "in" suppliers try to maintain customer engagement and product and service quality. "Out" suppliers try to find new ways to add value or exploit dissatisfaction so that the buyer will consider them. In a modified rebuy, the buyer wants to modify product specifications, prices, terms, or suppliers. The "in" suppliers may become nervous and feel pressured to put their best foot forward to protect an account. "Out" suppliers may see the modified rebuy situation as an opportunity to make a better offer and gain new business. A company buying a product or service for the first time faces a new task situation. In such cases, the greater the cost or risk, the larger the number of decision participants and the greater the company's efforts to collect information. The new task situation is the marketer's greatest opportunity and challenge. The marketer not only tries to reach as many key buying influences as possible but also provides help and information. The buyer makes the fewest decisions in the straight rebuy and the most in the new task decision.

blue ocean strategy

Strategy that focuses on developing new markets ("blue ocean") and avoids attacking core markets defended by rivals, which is likely to result in a bloody price war or a "red ocean." -crowded markets have the same customers, so you have to find a way to be different from others -red ocean - everyone competing for same thing, sharks in the water -no sharks in the blue ocean, finding segment of the market that is previously untacked -blue ocean = safety and success

Clayton Act

Supplements the Sherman Act by prohibiting certain types of price discrimination, exclusive dealing, and tying clauses (which require a dealer to take additional products in a seller's line).

competitive marketing intelligence

Systematic monitoring, collection, and analysis of publicly available information abut consumers, competitors, and developments in marketplace Competitive marketing intelligence is the systematic monitoring, collection, and analysis of publicly available information about consumers, competitors, and developments in the marketplace. The goal of competitive marketing intelligence is to improve strategic decision making by understanding the consumer environment, assessing and tracking competitors' actions, and providing early warnings of opportunities and threats. Marketing intelligence techniques range from observing consumers firsthand to quizzing the company's own employees, benchmarking competitors' products, online research, and monitoring social media buzz. Good marketing intelligence can help marketers gain insights into how consumers talk about and engage with their brands. Many companies send out teams of trained observers to mix and mingle personally with customers as they use and talk about the company's products. Other companies—such as PepsiCo, Mastercard, Kraft, and Dell—have set up sophisticated digital command centers that routinely monitor brand-related online consumer and marketplace activity

customer perceived value

The difference between total perceived benefits and total customer cost Attracting and retaining customers can be a difficult task. Customers often face a bewildering array of products and services from which to choose. A customer buys from the firm that offers the highest customer-perceived value—the customer's evaluation of the difference between all the benefits and all the costs of a market offering relative to those of competing offers. Importantly, customers often do not judge values and costs "accurately" or "objectively." They act on perceived value. To some consumers, value might mean sensible products at affordable prices. To other consumers, however, value might mean paying more to get more.

Internal/Micro Environment VS External/Macro Environment

The marketing environment consists of a microenvironment and a macroenvironment. The microenvironment consists of the actors close to the company that affect its ability to engage and serve its customers—the company, suppliers, marketing intermediaries, customer markets, competitors, and publics. The macroenvironment consists of the larger societal forces that affect the microenvironment—demographic, economic, natural, technological, political, and cultural forces.

Boston Consulting Group (BCG) growth-share matrix

Using the now-classic Boston Consulting Group (BCG) approach, a company classifies all its SBUs according to the growth-share matrix, as shown in Figure 2.2. On the vertical axis, market growth rate provides a measure of market attractiveness. On the horizontal axis, relative market share serves as a measure of company strength in the market. The growth-share matrix defines four types of SBUs: Stars. Stars are high-growth, high-share businesses or products. They often need heavy investments to finance their rapid growth. Eventually their growth will slow down, and they will turn into cash cows. Cash cows. Cash cows are low-growth, high-share businesses or products. These established and successful SBUs need less investment to hold their market share. Thus, they produce a lot of the cash that the company uses to pay its bills and support other SBUs that need investment. Question marks. Question marks are low-share business units in high-growth markets. They require a lot of cash to hold their share, let alone increase it. Management has to think hard about which question marks it should try to build into stars and which should be phased out. Dogs. Dogs are low-growth, low-share businesses and products. They may generate enough cash to maintain themselves but do not promise to be large sources of cash.

strategic business unit (SBU)

a operating segment/unit of a single business or collection of related businesses within the larger organization, separated by type -business segment, reportable segment

marketing orientation

considers the needs of customers when developing a marketing mix -production, sales, marketing, and relationship

customer value analysis

determine the benefits that target customer value and how customers reaction the value of competitors -identify, examine, rate, performance, vs competitors A useful tool for assessing competitor strengths and weaknesses is customer value analysis. The aim of customer value analysis is to determine the benefits that target customers value and how customers rate the relative value of various competitors' offers. In conducting a customer value analysis, the company first identifies the major attributes that customers value and the importance customers place on these attributes. Next, it assesses its performance against competitors on those valued attributes.

Customer Insights

fresh marketing information-based understandings of customers and the marketplace that become the basis for creating customer value, engagement, and relationships customer insights teams, whose job it is to develop actionable insights from marketing information and work strategically with marketing decision makers to apply those insights

Big data

huge and complex data sets generated by today's sophisticated information from technologies -Brings big opportunities and big challenges -Need better info not more info Far from lacking information, most marketing managers are overloaded with data and often overwhelmed by it. This problem is summed up in the concept of big data. The term big data refers to the huge and complex data sets generated by today's sophisticated information generation, collection, storage, and analysis technologies. Every year, the people and systems of the world generate about a trillion gigabytes of information. That's enough data to fill 2.47 trillion good old CD-ROMs, a stack tall enough to go to the moon and back four times. A full 90 percent of all the data in the world has been created in just the past two years.3 Big data presents marketers with both big opportunities and big challenges. Companies that effectively tap this glut of data can gain rich, timely customer insights. However, accessing and sifting through so much data is a daunting task. For example, when a large consumer brand such as Coca-Cola or Apple monitors online discussions about its brand in tweets, blogs, social media posts, and other sources, it might take in a stunning 6 million public conversations a day, more than 2 billion a year. That's far more information than any manager can digest. Thus, marketers don't need more information; they need better information. And they need to make better use of the information they already have.

MkIS - marketing information system and components

internal data/records to get customer insight and inside the organization -marketing intelligence system -marketing decisions support system -marketing research: outside data Thus, companies must design effective marketing information systems that give managers the right information, in the right form, at the right time and help them to use this information to create customer value, engagement, and stronger customer relationships. A marketing information system (MIS) consists of people and procedures dedicated to assessing information needs, developing the needed information, and helping decision makers use the information to generate and validate actionable customer and market insights. Figure 4.1 shows that the MIS begins and ends with information users—marketing managers, internal and external partners, and others who need marketing information and insights. First, it interacts with these information users to assess information needs. Next, it interacts with the marketing environment to develop needed information through internal company databases, marketing intelligence activities, and marketing research. Finally, the MIS helps users to analyze and use the information to develop customer insights, make marketing decisions, and manage customer engagement and relationships.

marketing concept

knowing the needs and wants of the target markets and delivering the desired satisfactions better than competitors do The marketing concept holds that achieving organizational goals depends on knowing the needs and wants of target markets and delivering the desired satisfactions better than competitors do. Under the marketing concept, customer focus and value are the paths to sales and profits. Instead of a product-centered make-and-sell philosophy, the marketing concept is a customer-centered sense-and-respond philosophy. The job is not to find the right customers for your product but to find the right products for your customers. The marketing concept starts with a well-defined market, focuses on customer needs, and integrates all the marketing activities that affect customers. In turn, it yields profits by creating relationships with the right customers based on customer value and satisfaction.

Problem definition --> research objectives

management defines the problem: it has an opportunity that needs more information or a symptom of a problem --> research articulates problem, what management needs to know, so they can set objectives for research (type of research)

Key Topics for Short Answer

marketing concept BCG growth share matrix product market expansion grid BtoB or BtoC porters competitive strategies

societal marketing orientation/ social responsibility

orientation that focuses on social purposes and reflects on whether or not a company should market a good or service as compared to whether or not it can do so economically -don't harm environment, use skills to enhance market The societal marketing concept questions whether the pure marketing concept overlooks possible conflicts between consumer short-run wants and consumer long-run welfare. Is a firm that satisfies the immediate needs and wants of target markets always doing what's best for its consumers in the long run? The societal marketing concept holds that marketing strategy should deliver value to customers in a way that maintains or improves both the consumer's and society's well-being. It calls for sustainable marketing, socially and environmentally responsible marketing that meets the present needs of consumers and businesses while also preserving or enhancing the ability of future generations to meet their needs. Even more broadly, many leading business and marketing thinkers are now preaching the concept of shared value, which recognizes that societal needs, not just economic needs, define markets.10 The concept of shared value focuses on creating economic value in a way that also creates value for society. A growing number of companies known for their hard-nosed approaches to business—such as GE, Dow, Google, IBM, Intel, Johnson & Johnson, Nestlé, Unilever, and Walmart—are rethinking the interactions between society and corporate performance. They are concerned not just with short-term economic gains but with the well-being of their customers, the depletion of natural resources vital to their businesses, the viability of key suppliers, and the economic well-being of the communities in which they operate.

strategic planning & process

process of developing and maintaining a strategic fit between the organization's goals and capabilities and its changing marketing opportunities the strategic plan involves adapting the firm to take advantage of opportunities in its constantly changing environment.

Marketing

the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large the process by which companies engage customers, build strong customer relationships, and create customer value in order to capture value from customers in return

mission statement

the organization's purpose, what it wants to accomplish in the larger environment -market-oriented mission statements define in terms of satisfying customers needs A clear mission statement acts as an "invisible hand" that guides people in the organization. Some companies define their missions myopically in product or technology terms ("We make and sell furniture" or "We are a chemical-processing firm"). But mission statements should be market oriented and defined in terms of satisfying basic customer needs. Products and technologies eventually become outdated, but basic market needs may last forever.

share of customer

the percentage of an individual customer's purchase of a product that is a single brand Beyond simply retaining good customers to capture customer lifetime value, good customer relationship management can help marketers increase their share of customer—the share they get of the customer's purchasing in their product categories. Thus, banks want to increase "share of wallet." Supermarkets and restaurants want to get more "share of stomach." Car companies want to increase "share of garage," and airlines want greater "share of travel." To increase share of customer, firms can offer greater variety to current customers. Or they can create programs to cross-sell and up-sell to market more products and services to existing customers.

market share

the ratio of sales revenue of the firm to the total sales revenue of all firms in the industry, including the firm itself

value proposition

the set of benefits or values a company promises to deliver to customers to satisfy their needs

customer lifetime value

the value of the entire stream of purchases a customer makes over a lifetime of patronage -profitability of customer over lifetime -a lifetime customer makes you a lot of money -build the relationship to an emotional connection -cheaper to keep the same customer than to get a new one

Marketing analytics and dashboards (KPIs)

tracks information, performance indicators, shows objectives key performance indicators: help you know if you are on track in accordance with objectives Marketing analytics consists of the analysis tools, technologies, and processes by which marketers dig out meaningful patterns in big data to gain customer insights and gauge marketing performance.22 Marketers apply marketing analytics to the large and complex sets of data they collect from web, mobile, and social media tracking; customer transactions and engagements; and other big data sources.

Cognitive dissonance

want to avoid this, buyers remorse, happens in high involvement, feeling of "oh crap what did I do" -mainly is complex buying behavior