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MKTG 4240 Final Study Guide
MKTG 4240 Final Study Guide
MKTG 4240 Final Study Guide
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Ritz-Carlton Question
What is meant by ladies and gentlemen serving ladies and gentlemen?
o Horizontal nature of business, everyone knows what they/you are doing.
Author found that the relationship between loyalty and profitability is much
weaker and more subtle than the proponents of loyalty claim.
What drives loyalty (reduction of customer effort)
Instead of focusing on loyalty alone companies need to focus on the
relationship between loyalty and profitability so they can understand which
customers to target and which to ignore
Commercial intent is O.K.
Short-term Long-term
customers customers
Four Key Steps in order of increasing complexity and benefit for the
company
Identify Your Customers --- Internal (apple, Starbucks)
Differentiating Among Them --- Internal
o Different values and needs
o Focus on most valuable
Start Small
o Take responsibility for developing a customer relationship across the
organization (companys responsibility)
Assess your situation -- involves all levels of the organization (customers
as well)
Set Priorities
o What is the variance in your customer base steep vs. shallow
CRM works better with Steep Skew (more tightly clustered
people)
paychecks but also in terms of how it sustains the conditions that allow it
to flourish over time. These corporate leaders deliver more than just
financial returns _ they also build enduring institutions.
o Institutional Logic cannot be captured by cost-benefit equations or
reduced to the language of economics, and yet it turns out to be a
powerful driver of financial performance.
o Rather than viewing organizational processes as a way of extracting
more economic value, great companies create frameworks that use
societal values and human values as a decision making criteria. They
believe that corporations have a purpose and meet stakeholders needs
in many ways:
By producing goods and services that improve the lives of users
By providing jobs and enhancing workers quality of life
By developing a strong network of suppliers and business partners
By ensuring financial viability which provides resources for
improvements, innovations, and returns to investors
New Power Values --- power is not just flowing differently; people are
feeling and thinking differently about it. A Lyft user experiences
consumption as a kind of sharing and subtly shifts his view of asset
ownership. _ When consumers give feedback they strengthen norms
around collaboration and make the case that we can do just fine without
the old power middlemen that dominate the 20 th century _ We all have
an inalienable right to participate. Today, people increasingly expect to
actively shape or create many aspects of their lives.
New Values:
o Governance informal network approach -- new power is more flash
mob and less general assembly
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new power values, will be about who can control and shape societys
essential systems and structures.
For all of its democratizing power, the Internet, in its current form, has
simply replaced the old boss with a new boss, warns Fed Wilson, a partner
at Union Square Ventures. And these new bosses have market power that,
in time, will be vastly larger than that of the old boss.
Too often, new power bosses dream only of a good exit from a hot
business, but we need new power leaders to make a grand entrance into
civil society. Those capable of channeling the power of the crowd must turn
their energies to something more fundamental: redesigning societys
systems and structures to meaningfully include and empower more people.
The greatest test for the conductors of new power will be their willingness
to engage with the challenges of the least powerful.
Reaching the Rich Worlds Poorest Consumers: Poverty is Not Just an Emerging
Market Problem
Social business is a concept originally developed in the context of poor
countries. Such a business has three key characteristics:
1. First, it seeks to alleviate social problems, including all forms of poverty
2. Second, it must run sustainable that is, it should not lose money
3. Third, profits when they exist are reinvested in the business rather
than funneled back to shareholders. Investors eventually get back only
the money they initially invested
Early results from these companies experiments suggest that the social
business model is both an efficient way of fighting poverty and a
productive source of new business ideas.
The Model:
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Unilever Article
Future Proofing the business (sustainable farming)
If you buy into this long-term model, which is equitable, which is shared,
which is sustainable, then come invest with us. If you dont buy into this, I
respect you as a human being, but dont invest you money in our
company.
o Shareholder return cannot and will not trump nobler aims
o Our purpose is to have a sustainable business model that is put at the
service of the greater good.