Understanding the Marketplace

Firms can become customer centric by

creating an organizational culture that has shared values, beliefs, norms, behaviors, and artifacts that reflect a focus on the customer. There are well known traits of customer centric cultures and companies can build and sustain a customer centric culture

Over time, businesses that are new and different

enough to have reduced or no competition will earn much more than average profits

The exit decision ,

even though it is psychologically and professionally painful, can be healthy both for the firm because it releases resources to be used elsewhere buy even for the divested business which might thrive in a different context

While the brand identity represent

long term aspirational associations and is multidimensional, the brand position represents the short term communication objectives and is more focused

Brand extensions should

both help and be enhanced by the new offering in addition to bring perceived to have a fit with it.

A milking or harvest strategy

( generating cash flow by reducing investment and operation expenses) work when the involved business is not crucial to the firm financially or synergistically. For milking to feasible, though, sales must decline in an orderly way.

Strategic alliances

( long term collaboration leveraging the strengths of two or more organizations to achieve strategic goals) can enable an organizations to overcome a lack of a key success factor, such as brand or distribution. A key to the long term success of strategic alliances is that each partner contributes assets and competencies over time and obtains strategic advantages

What is "brand community" and what role can a firm play in its development?

A brand community is a group of consumers that are brand loyal to you . that you communicate with digitally . helps you become more visible, association reinforced, loyalty can increase. The could engage on social media. Create an online community. Create an event or activity that connects with a customer. Move from brand loyal to cult following Larger than what individual satisfaction can do for you Builds a safe space that you can participate in consumption. Instead look for a customer sweet spot and find a program that will allow the brand to connect with that sweet spot. Sweet spot should be apart of customers self identify , lifestyle or reflect a high order purpose in their lives Goal should be to create an event or activity that connects to a true customer sweet spot.

Expanding the scope of the offering

A firm may look to its in depth knowledge of and access to a market segment as an underleveraged asset Considering the broader use context is a powerful idea. An analysis of the total set of tasks surrounding the customer use experience is a good way to begin determining whether there is a viable growth option in expanding the view of the offering. The use experience can be modeled by walking through exactly what the customer needs to do in order to use the product or service Analysis of a consumption system can result by added value or point of differentiation for the customer You can also serve additional needs of the customer

Motives for Global Strategies: Access to national investment incentives

Another way to obtain a cost advantage to access national investment incentives that countries use to achieve objectives for target industries or depressed areas. Changes in trade, such as tariffs and quotas, incentives are much less visible and objectionable to trading partners

Brand associations

Anything that is directly or indirectly linked in the consumers memory to a brand. Can be key enduring business assets, because they reflect the strategic position of the brand Product attributes and customer benefits are the association that have obvious relevance because they provide a reason to buy and thus a basis for brand loyalty. Position based on attribute is vulnerable to an innovation that gives your competitor more speed, fiber or greater range.Firms start a specification shouting match that will lose their credibility People do not always make decisions based on specification. Strong brands go beyond product attributes to develop associations on other dimensions that can be more credible and harder to copy

Energizing the brand and marketing

As energy declines , so does visibility. The brand is no longer among those that come to mind when considering a purchase. Many brands lack energy struggle with impressions that they are old fashioned, out of touch, and boring, an impression that can affect their relevance for some segments.Brand energy should be interesting/exciting, involving and engaging, innovative and dynamic, and passionate/purpose driven.To do this is to create an involving promotion, create a promotion to attract new customers, go retail, bring the brand to the customer, hold publicity events, support the high order purpose. Development of a customer community is one of the best ways to energize a brand.Site should have trust, substance , dynamic content, be on brand.

What does the sweet spot driven program buy?

Is driven by functional benefit adn is relatively shallow and vulnerable It can stimulate a social network, create brand energy and interest, enhance brand likeability and credibility , form a friend/college/mentor brand relationship

Motives for Global Strategies:Global innovations

Being global means that innovation around brand building , new product , and product improvement can be sourced anywhere. Products of the developed countries even with some features omitted, are often too high priced for the emerging country world.

What biases may get in your way?

Biases inhibit new business creation - can be short term pressures, silo, success, icumbency , commitment and size The short term financial pressure curse- driven by stock return and managers with short job tenures. Firms cut R&D and marketing investments to meet the short term expectations. the silo curse- leads to a delegation for innovation and development from the corporation to the silo unit in part to gain accountability and funding ability . silos have limited resources and are focused on a particular product line . goal is to respond to opportunities to improve the offering or to leverage the existing business.The curse of success-easier to change when there is a crisis . both resources and time may be in short supply. Incumbent curse- when a transformational innovation is aimed at the marginal customer or the non customer, there is a tendency to ignore the threat to the basic business. The commitment curse- tunnel focus, they invest vigorously in incremental innovation to reduce cost, improve the offering and satisfy their loyal customers. The size curse- one approach is to create a separate organization , to create a dual organization within the same firm. Should grow through internal innovation and allocate resources toward that goal. Culture and status quo . culture is set . Bias is a fixedness of how you do things. They get in your way , when trying to change.

What are the most important dimensions of brand equity?

Brand awareness, brand loyalty, brand associations. How to position itself in the marketplace Space that you occupy

Understanding and prioritizing brand touchpoints

Brand experience is at the essence of a brand relationship. Should be pleasant, exceed expectations and inspire people to talk about it. Brand experience is created by brand touchpoints.Touchpoints occurs anytime a person in the marketplace interacts with the brand. Touchpoints need to be managed on an ongoing basis.Drivers for the touchpoint experience is the employees and firm partners who participate in the design and execute the experience. They need to understand and believe in the brand and the value proposition.Should be a clear understanding as to which touchpoints should be improved, why they were selected, how the improvement can be achieved. The customer experience should be simple and trustworthy.Customers want relevant information about brands and guidance as to how to compare them Customer input is seen as the most trustworthy because it is based on experience and there is no commercial bias

identify the relevant brand set

Brand will depend on the problem context. It can include all brands or subsets of the portfolio. When brands are involved that share similar roles, it becomes easier to evaluate the relative strength

How can the product scope be expanded?

By considering a broader use of the product. Identify and serve the customer needs that emanate from the use of existing products. Look to thee customer use experience to determine whether is a viable growth option Can look to see to serve additional needs of the consumer. Should be part of your mission. It's about how far can u extend your product line without leaving the mission.

How do we energize the offering, brand, or marketing?

By creating a promotion. Should bring the brand to the customer , hold publicity events , create a customer community Find an energizer , this could be internal or external. Internal could be the CEO . external could be influencer. Sponsorships,symbols, endorsers, promotions, Energy has to be across the offering, brand and marketing because it is interrelated Goal when energizing is to increase consumers positive emotions Energy causes you to refocus

How do you make established firms continuously innovative?

By creating new business. And submarkets. Look at outside sources for new ideas( crowdsourcing) Ask for an outsider to look in and see what you can change Look at what's going on in terms of technology Start an innovative team whose job is to think of new ways to innovate the business You can not be continuously innovative is you always want to start from where you are.

Motives for Global Strategies: Obtaining scale economies

Can occur from product standardization Can also occur from standardization of marketing, operations, and manufacturing programs. Brands that share advertising spread the production and creative effort over multiple countries and thus a larger sales base

According to the BCG, what are the options for products?

Cash cow is typically what the organization does. Main product of the firm. Mature product. No movement . static but successful Stars- have the most potential to be the cash cow . Question markets- good ideas and good products but missing something in implementation. Not doing the thing that you want it to do. Problem child- starts out really strong but can look like something can fizzle. Someone is doing it better than you did. The competitor can look at your faults and imitate but at a lower price. Can confuse a problem child for a star. They show signs that maybe they will be successful. Could be that you didn't put enough investment into it Dogs- products that flops. Product didn't work out . it could work for a while and it went flat. They just fail. Market pyramiding is trying to find new ways to use your products. Like baking soda can be used to brush teeth and bake.

Prioritize brands

Categorize brands so that precious brand building budgets are allocated wisely. Top tier will include the strategic power brands, those with existing or potential equity that are supporting a significant business or have the potential to do so in the future. Second tier could be those brands involving a smaller business, perhaps a niche or local businesses, or brands with a specialized role such as a flanker brand ( price brand that deters competitors) Third tier would be the cash cow brands, which should be dialed down with little or no investment of brand building resources

What is the "innovator's advantage?"

Competitors will often be inhibited from responding in a timely manner or they may believe that the new business will cannibalize their existing business. Competitors often are simply not able to respond. They may be playing catch up technology especially if technology is evolving or if patents are involved. The innovator can create customer loyalty based on the exposure and experience with its product or service. To capture a first mover advantage it is important to hit the market first and invest to build position . Followers will have the benefit of seeing the innovation, but will often need to be significantly better to have a chance of dislodging the first mover among the user base. Successful early leaders tend to share certain traits: envisioning the mass market, managerial persistence, financial commitment, relentless innovation asset leverage. First mover advantage gives you a perception of being innovative First to the market and you and define the market. First to enter the market are not price competitive because they spent all their money because of trial and error. Competitors don't have to do trial and error because you did it for them. Innovators that see the future are the better innovator

The BCG matrix

Concept was to position each business within a firm on the two dimensional matrix. The market share dimension was a summary measure of firm strength and cost advantages resulting from scale economies and manufacturing experience. Growth dimension was defended as the best single indicator of market attractiveness Stars, are important to the business and deserving of any needed investment, reside in the high share, high growth quadrant. Stars should receive investments to maximize ROI until market growth slows and they are retired to cash cows ( the high share, low growth quadrant) . these products provide a great deal of the cash for the rest of the portfolio and they should be milked for as long as possible. Dogs which are cash traps and candidates for liquidation , are in the low growth , low share quadrant. They should be removed as soon as possible if there are no other strategic reasons for retaining. Problem children with heavy cash needs but the potential to eventually convert into stars , are in the low share, high growth quadrant. Companies should work to identify the potential stars while divesting of the rest of these offerings. The BCG growth share model contribution was to make visible the issue of allocation across business units; that some businesses should generate cash that supports others. Also introduced the experience curve into strategy and showed that . under some conditions, market share could lead to experience curve based advantage The GE model evaluates the business on two dimensions , market attractiveness and business position. The investment decision is suggested by the position on a matrix. When both market attractiveness and business position evaluations are unfavorable, the harvest or divest options should be raised. Business could turn to new markets, growth submarkets, etc.

Motives for Global Strategies: Access to low cost labor or materials

Cost reduction results from access to the resources of many countries. Substantial cost differences can arise to raw materials, R&D talent, assembly labor,and component supply Access to low cost labor and materials can be an sca , especially when it is accompanied by the skill and flexibility to change when one supply is threatened or a more attractive alternative emerges

Evaluation

Difficult because it will stray from the comfort zone and knowledge base of a business. Helpful to identify the roadblocks to success. Should ask is the market real? Is there a need or desire? Is the product real? Is there a clear concept that will satisfy the market? Can the product be competitive? Can our company be competitive? Will the product be profitable at an acceptable risk? Does launching the product make strategy sense?

Remain brands need to be eliminated

Eliminate is a brand is judged to be ill suited for the portfolio because of weak or inappropriate brand equity , business prospects, strategic fit, or redundancy issues, a plan is needed to eliminate the brand from the portfolio On notice- a brand that is failing to mets it performance goals but has a plan to turn its prospects around might be put on notice list. If the plans fails and prospects continue to look unfavorable, elimination should be considered. Merged- if a group of brands can be merged into a branded brand group, the goal of creating fewer more focused brands will be advanced. Restructure- firms can attempt to transfer brand equity and customers from a deprioritized brand to another.

Brand assessment

Evaluation criteria need to be established. Criteria need to have metrics so that brands can be scaled. A highly structured and quantified assessment provides stimulation and guidance to the discussion and the decision process. Decision will default to picking the higher number. Criteria depends on brand equity, business prospects, strategic fit, branding options Brand equity- awareness, reputation, differentiation, relevance, loyalty Business prospects- sales, share/market position, profit margin, growth Strategic fit- extend-ability, business fit Branding options- brand equity transfer ability , merging with other brands Profile will be important and judgement will be needed to make final assessments of the brands current strength

Implement the strategy

Final step is to implement the portfolio strategy, which usually means a transition for the existing strategy to a target strategy . transition can be made abruptly or gradually Abrupt transition can signal a change in the overall business and brand strategy , it becomes a one time chance to provide visibility and credibility to change affecting customers. Other option to migrate customers from one brand to another gradually perhaps with intervening steps where the brand becomes an endorsed brand and then a sub brand before disappearing. Preferred when : there is no newsworth reposition that will accompany the change, customer who may not have high involvement in the product class may need time to learn about and understand the change. There is a risk of alienating existing customers by disrupting their brand relationship

Discuss standardization versus customization.

First the forces of communication , transport, and travel were breaking down the insulation of markets, leading to a homogeneity of consumers taste and wants. Second the economics of simplicity and standardization , especially with respect to products and communication , represented compelling competitive advantages against those who held on to localized strategies. Third customers would sacrifice preferences in order to obtain high quality at lower prices Standardized products and brands are often not as identical worldwide as one might assume A standardized offering can achieve significant economies of scale. The task of developing packaging , a website, a promotion , or a sponsorship will also be more cost effective when spread over multiple countries. Economies of scale across countries can be critical for sponsorship with global relevance. Cross market exposure produces further efficiencies. Media spillover, where it exists, allows the standardized brand to buy advertising more efficiently Standardized brand is easier to mange. The challenge for brand management is to develop a clear, well articulated brand identity and to find ways to make that identify a driver of all brand building activities The key to a standardized brand is to find a position that will work in all markets. Standardization can come from a centralized decision to create a local product. Identify a lead country, a country whose market is attractive because it is large or growing or because the brand has a natural advantage there . A product is tailored to maximize it chances of success in that country, then exported to other markets Standardization worked for a long time till people wanted something more tailored to them Standardization is when you get what we have. Everything is the same

Motives for Global Strategies: Global brand associations

Generates the image of being global, which turns out to be a significant advantage. Consumers believe that global brands have higher quality in part because they tend to have the latest innovations.

Stimulate a social network

Has the potential to have a high level of social activity Focusing on what a person is passionate about will motivate customers to reach out for information or to share experiences and ideas.

How do you best manage your brand portfolio?

Have continuous innovation and continuous improvement You do not want to put everything in one portfolio Should look at what's coming up

Brand energizers

Is a branded product, sponsorship , endorser, promotion, symbol, social program, CEO, or other entity that by association enhances and energizes a target brand.Should be interesting, youthful, dynamic, contemporary, assertive and involving.Needs to be connected to the master brand even if it is not part of the master brand offering and does not promise any functional benefits. Could do a sub brand where the master brand has a connection in the name. Select a program or activity that is so on brand that it makes the link easier to establish. Should significantly enhance as well as energize the target brand and should not detract or damage the brand by being " off brand" or making customers comfortable. Problems of finding and managing internal branded energizers lead firms to look outside the organization. External energizer brand should be linked to lifestyle of customers. Brand energizers represent a long term commitment. Need to be managed over time Types are sponsorships, symbols, endorser, promotions, programs, and even CEO

How to create or find a customer sweet spot

Identify a customer sweet spot that will engage the audience- should understand the customer in depth Create a sweet spot driven program Find an existing external program to which the brand could connect.-an internal owned program means that it can be controlled by the firm. It can be costly , difficult and even not feasible. You should find an established branded sweet spot program with proven feasibility and effectiveness and link to it

Brand awareness

It serves to differentiate the brands along a recall/familiarity dimension. People like familiar and awareness provides the brand with a sense of familiarity. Familiarity can drive the buying decision. Brand presence , commitment, and substance, attributes that can be very important even to industrial buyers of big ticket items and consumer buyers of durables. The salience of a brand will determine if it is recalled at a key time in the purchasing process. Name dominance is when the brand is the only one recalled when a product class is cued. Brand awareness is an asset that can be extremely durable and thus stainable.can be difficult to dislodge a brand that has achieved a dominant awareness level. Sometimes recognition for a mature brand is not even desirable when unaided recall is low. Brands with high recognition and low recall are termed graveyard brands. Without recall they are not in the game. High recognition means they are considered yesterday's news, making it difficult for them to gain visibility and energy. Because consumers are bombarded everyday by marketing messages, the challenge of building awareness and presence is formidable, especially considering the fragmentation and clutter that exist in mass media

What is the relevance of metrics and incentives to #3?

Mainly about customer satisfaction What is a reasonable metrics Should measure lifetime value of consumer. ( get you to buy and continue to buy) How to get you to continue to buy. Should look at how the good or service relates to your daily life. Computer has value because you need it for school. How they increase or decrease in your life as they come together with all you have. Have to think about the good and services in relation to everything about that person.Metrics such as customer satisfaction, customer loyalty, and net promoter score put the emphasis on ensuring that customers have products and services they value Metrics such as short term sales or profits can produce strong income statements in the short run, but problems in the long run.Incentives include word of mouth and increase in opportunistic behaviors

Create a sweet spot driven program

Making the offering an integral part of the program-should determine if the brand can be integrated into a sweet spot program and be a full partner that contributes assets and substance. Linking the offering to the program-can connect through lifestyle, application, activity , a country, values, or an interest. Linking the target to the program- the program should have no connection with the product or service. The connection instead is to the target markets interest. It can be a challenge. It requires persistent reminders, which can be expensive and difficult to do well

What assets and competencies are typically leveraged?

Marketing skills Sales and distribution Design and manufacturing r&d skills People Corporate culture Brand extensions

Motives for Global Strategies: Access to strategically important markets

Markets can be strategically important because of their size and growth May be strategically important because of their role in the industry value chains. could be because of a raw material supply, labor cost structure, or technology

The sweet spot- big idea

Should have an immediate impact by stimulating customer involvement and purchases, should affect the short term financials. Should enhance the brand, build long term customer relationships and increase loyalty

•What strategies cause consumers to buy more and why do they work?

Motivate users to use more- adding perks to the service or product. Helps the consumer feel they are getting worth your money. Make the use easier- consumer want things to be uncomplicated and convenient. Helps them want to use the product or service. Provide incentives- makes the consumer want to use the product more because they want more rewards. Remove or reduce reasons not to buy- give lots of options for all consumers so there is a product for them. ex . would be face wash for sensitive skin. Provide reminder communication- sending an email saying there is a sale could help consumers get excited .Position for regular use- making the customer need the product in their everyday life because it is a routine, helps for repeat purchases because they will run out of the product Find new uses- have a site that tells them how else they could use the product Pressure. Make it seem like other people are using the product or service and they are better for it , so you should too.

What are the primary motives underlying global strategies?

Obtain global innovation, access low cost labor/materials, access national incentives, cross subsidize, dodge trade barriers, access strategic markets, obtain scale economies, create global associations To gain a new market because your home one is saturated. To generate more revenue

prioritizing and trimming the brand portfolio

One element of brand strategy is to set priorities within the brand portfolio, identifying the strong strategic brands, other brands playing worthwhile roles, brands that should receive no investment , and brand that should be deleted The brand portfolio provides a good way to prioritize the business portfolio because the brand will usually represent a business Without prioritization of the brand portfolio, strategic brands will lose equity and market position because marginal brands are absorbing brand building dollars and managerial talent. Managers solve problems and not exploiting opportunities. Prioritizing and trimming the brand portfolio can correct the debilitating confusion associated with overbranding. Branded offering may even overlap. Customers have a hard time understanding what is being offered and what to purchase. To address the strategic paralysis created by an overbranded, confused brand portfolio without priorities. Common for a firm to immobilized by an inability to commit to how a new offering or new business should be branded. To provide a brand to a new offering or business that will foster success, there needs to be a sense of what brands will be strategic going forward Should be more disciplined about the introduction of new offerings and new brands. Strategic brand consolidation process: identify the relevant brand set, assess the brands, prioritize brands, create a revised brand portfolio strategy , and design a transition strategy

. How is structure related or important?

Organization should be structured to serve the consumer. Should be about how do we best serve consumers that meet their needs and allow the organization to be successful. Should look at consumer well being. Should look at the firm yourself and look who the firm is supposed to serve. Structure impacts function. Structure is important because you want the same principles to be consistent amongst the different divisions that you have in the firm. It starts with the CEO and manager and then trickles down to employees. Firm should have great company culture where the employees feel nurtured enough that they can put their focus on what the consumer

The core identity

Prioritize the brand identity elements. Core identity will be the primary drivers of the brand building programs. Focus of the brand investments, as they are the most critical to the success for the business that they are supporting Serve to help define the brand, make decision as to what actions and programs are compatible with the brand and five minor programs that will have lesser impact and take modest resources Should resonate with the target market- should think o f how the customer relates to brands over time rather than simply what drives purchase decisions. Differentiate from competitors Provide parity where competitors have an advantage that is compelling to customers Reflect the strategy and culture of the business- should support the strategy and culture

Brand identity

Provides direction, purpose, and meaning for the brand. Set of brand associations that the firms aspires to create or maintain, an aspirational external brand image. Represents what the brands stand for and imply a promise to customer. Can include elements that are not present in the current image or even conflict with it

What are the generic benefits of brand loyalty?

Reduces cost, substantial entry barrier to competitor,image of brand being accepted, provides reassurance,gives time to respond to competitive moves, can pursue a less risky follower strategy For consumers it could mean discounts exclusively for them. Often get things that others don't get. Benefits to the company is recurring purchases. You can't make the assumption that because people buy things over and over again that means that people like it. Recurring purchases could also mean you don't have a lot of choices. Brand loyalty does not always mean satisfaction There are people that are dedicated to the brand, there are people who are on the edge about the brand and people who are indifferent

Motives for Global Strategies: Dodge trade barriers

Strategic location of component and assembly plants can help gain access to market by penetrating trade barriers and fostering goodwill

There are organizational biases

that inhibit the development of a new business. These can be described as the short term financial pressure curse, the silo curse,the curse of success, the incumbent curse, the commitment curse,and the size curse

How might marketplace synergies manifest

To build on core business Through consistent , coordinated communication efforts and by cross selling services. Can be negative or positive They way that the market reacts When two things come together and they make it even better When two groups come together and open a new space in the marketspace

Motives for Global Strategies: Cross subsidization

To use the resources accumulated in one part of the world to fight a competitive battle in another One firm uses the cash flow generated in its home market to attack a domestically oriented competitor in a foriegn market Cross subsidization concept implies that is useful to maintain a presence in the country of a competitor. Presence should be large enough to make the threat of retaliation meaningful

Develop the revised brand portfolio strategy

Towards the end, several brand portfolio structures should be created. Could include a lean structure with a single master brand. Should create structures around two or three viable options with perhaps two or three suboptions under each. Major brand portfolio structure options, together with suboptions, need to be evaluated with respect to whether they : support the business strategy going forward, provide suitable roles for the strong brands, leverage the strong brands, generate clarity both to customers and to the brand's team

Growth less vulnerable to competitive response can

also from increasing product usage by motivating heavy users to use more, making the use easier by removing or reducing reasons not to buy, providing usage incentives, reminder communications, positioning for frequent use, and finding new use.

Improving the offering through innovation is

always the best route to growth and profitability. However. Innovations can represent short lived advantages unless branded.a brand provides ownability, credibility, visibility, and communicability. A branded differentiator is an actively managed, branded feature, ingredient or technology, service, or program that creates a meaningful , impactful point of differentiation for a branded offering over an extended time period

Brand identity represents

aspirational associations. The most important of these , the core identity, should be supported by proof points and/ or strategic imperatives and should be the driver of strategic programs, including product development

Brand association can and should go

beyond attributes and benefits to include such associations are brand personality, organizational intangibles,and product category associations

Can brands have human-like qualities such as personalities?

Yes they can . stronger personalities tend to be more memorable . they can have a variety of personalities that can become key associations Celebrity endorsement can help bring emotion to the brand,

Can brand relationships be analogous to personal relationships?

Yes, yu expect the relationship to be consistent and hopeful which can strengthen the relationship. Has multiple touchpoints. Should market from the owners of the products point of view. Product is an extension of you. The product is attached to your social identity When organizations can help you create that identify you want to continue to go back. We form relationships based on identities

Brand equity

a key assets for any business, consists of brand awareness, brand loyalty and brand association

The customer experience is

a key part of the relationship , and one way to enhance it is to prioritize brand touch points for improvement

Awareness provides

a sense of familiarity and credibility and makes it more likely that a customer will consider a brand

Metrics and incentives need to be

aligned for customer centricity. Customer focused performance rewards and metrics ensure the company is measuring the customer experience and satisfaction and not firm outcomes. ( which should follow from satisfied customers)

Brand loyalty

can be based on simple habit, preference, or switching costs. Reduces the marketing cost of doing business because less marketing is required to retain those loyal customers. The higher the loyalty the easier to keep customer happy .Loyalty of existing customers represent a substantial entry barrier to competitors. Must have significant resources when entering market in which loyal customers must be enticed away from an established brand. For the barrier to be effective, potential competitors must know about. Relatively large satisfied customer base provides an image of a brand as an accepted and successful product. Loyal customers also provides reassurance to others.Brand loyalty provides the time to respond to competitive moves, it gives a firm some breathing room.With a high level of brand loyalty, a firm can allow itself the luxury of pursuing a less risky follower strategy. Firms that achieve this have customer culture, manage customer touchpoints, have a relationship that goes beyond functional benefits, makes the customer feel as they are part of the organization, continuing communication, able to measure loyalty of existing customer, conduct exit interviews, measure lifetime value

A global strategy

considers and exploits interdependencies among operations in different countries

. How and what is customer-centricity?

everything you do revolves around the customer. It is about letting everyone in the organization to have the capability to make the customer happy. ( have employees be happy so that all they have to worry about is making the customer happy. Tend to let everyone down the firms food change to have the flexibility to make the customer happy There is always going to be somebody who knows what the next step and the next phase is going to be . It is about trying to get to the root of customer needs and seeing how they are going to change over time Customer centricity occurs when a company places the customer at the forefront of all its decisions and actions. It has the best opportunity to create exceptional value for customers and to capture value for itself in the form of profits. Results take the form of profits or social impact depending on the organization's mission. Requires the business to generate deep insight from engaging with their customer to guide the development and delivery of offerings and their go to market strategies Customer centricity requires the business to focus on five organizational elements-culture, competencies, structure, metrics and incentives, and human capital

Get beyond the

functional benefits to deliver emotional, self, or social benefits. The goal is to provide a deeper and more stable basis of a relationship

Building customer centric competencies ensure

that the firm has the sustained ability to perform a range of activities to create value for the customer and for the company. A firm market orientation is a competency that ensures it can generate, disseminate, and respond to market information

Companies successful at expanding their global footprint usually

had a strong core market, a repeatable expansion formula, customer differentiation that travels, an understanding of local versus global scale. The selection of a country to enter should involve an analysis of the attractiveness of the market and the ability of the firm to succeed in that market

Leveraging assets and competencies involves

identifying them and creatively determine in what business areas they might be ables to contribute.

innovating the offering

innovation provides a sense that a firm is dynamic , creative, and always improving its offering Innovation means new, interesting, and energetic To innovate customer experience you can improve brand touchpoints and exceed expectations with respect to the value proposition A product firm can enhance the product by adding a new dimension such as a feature or ingredient. Involves understanding unmet needs, organizational support , and the ability to evaluate proposed improvements in terms of customer relevance Line extensions can be a source of energy. It can add interest and create new segments. Should create an organizational culture that builds innovation into the business strategy and views it as a basis for winning over time

The business can be leveraged by

introducing new products to the market or expanding the market for the existing products

Energizing an existing business

is a fruitful source of growth because it avoids the risk of venturing into new competitive arenas requiring new assets and competencies

Creating an organizational structure that

limits silos and breaks down barriers between divisions of the company is essential to the customer centricity. Cross silo communication and cooperation and other structural device can improve the value a company delivers to customers.

In creating a new business,

managing the perceptions of the category is important

Customer centricity requires

marketing leaders who understand the strategic marketing, have an investment mindset, are innovators, can integrate different parts of the company to serve customers , are good listeners, and are good implementers. It is import to hire employees who are customer oriented and feel responsible and empowered to fulfill this role.

Synergy can be a

mirage. Too often , it does not exist , or it exists but it is unattainable or overvalued

Global brand management

needs to include moving the silo country business units from competition and isolation to cooperation and communication

A standardized brand is

not always optimal. Economies of scale may not exist, the discovery of a global strategy ( even assuming it exists) may be difficult , or the context may make such a brand impractical. However, the management of the business should be common across countries- all using the same planning processes and performance measures

Sometimes innovation is

not feasible, and then energizing the brand/marketing or creating a branded energizer is the best option. A branded energizer is a branded product, promotion , sponsorship, symbol, program, or other entity that by association significantly enhances and energizes a target brand- the branded energizer its association with the target brand are actively managed over an extended time period.

Among the motivations driving globalization are

obtaining scale economies, accessing low cost labor or materials, taking advantage of national incentives to cross subsidize , dodging trade barriers, accessing strategic markets, enhancing firm innovation and creating global associations

The innovator has the

potential to create a marketing position because competitors are releculatnat to damage their own businesses, cannot match the technology, or beleive it too costly to compete against a firm with an established customer base. Often it is not the innovator but the early market leader that captures these advantages

Prioritizing and trimming the brand portfolio

provides another perspective on prioritizing businesses, can clarify brand offerings, and can remove the paralysis of not being able to brand new offering. A five step prioritization process involves identifying the relevant brand set , assessing the brands, prioritizing brands, creating a revised brand portfolio strategy, and designing a transition strategy

A core loyal customer base

reduces the cost of marketing, provides a barrier to competitors, supports a positive image, and provides time to respond to competitor moves

Entering a new product market is

risky , as the new offering might lack market acceptance or needed resources. Success likelihood goes up if the core business is healthy, if the new product market is attractive( competitors will be profitable), if the business model is repeatable, if market leadership is possible, and if the stretch from the core is small

Loyal customer group based on

strong brand relationship can be a significant competitive advantage in part because they are relatively easy to retain and expensive for competitors to attack

Focus on the customer's

sweet spot, active, beliefs, and values, and a higher purpose. Find a way to connect to that sweet spot, hopefully as a partner. Getting involved in a sweet spot is usually more effective that trying to sell a brand or firm

A new business can be based on

technological innovation, moving from competence to systems, by satisfying unmet needs, by creating niche marketing , by responding to customer trends, or by having a dramatically lower price point

A customer centric firm is one is which

the customer is at the forefront of all the firm decisions and actions. Firms should have a customer centric attitude to create value for customers and to grow long term profits

Global strategy should address these issues:

what are the motivations( objectives) for a global strategy? To what extent should product and service offering be standardized across countries? To what extent should the brand name and marketing activities to be standardized across countries? How can the global footprint be expanded successfully? To what extent should strategic alliances be used to enter new countries? How should the brand be managed globally?