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Midterm Review - HelloEveryone...

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Hello Everyone:. Next week is the on campus midterm which will consist of 80 multiple choice questions that cover  chapters 1-10. This is a closed book, closed notes exam and you will have 2 hours to complete the on  campus midterm exam. Please bring two number 2 pencils to the on campus midterm. The following are  the concepts you need to know in order to do well on the midterm exam: - The six marketing imperatives Imperative 1. Determine and recommend which markets to address Imperative 2. Identify and target market segments Imperative 3. Set strategic direction and positioning Imperative 4. Design the marketing offer Imperative 5. Secure support from other functions Imperative 6. Monitor and control execution and performance - market segmentation Market segments: groups of customers with similar needs that value similar benefits, with  similar levels of priority - 4 p’s of marketing The principle of selectivity and concentration o Selectivity focuses on the choice of market or market segment target. o Concentration refers to concentrating resources so as to deliver value to that target. The principle of customer value o The firm earns marketplace success by providing value to customers o The firm develops, produces, and delivers products and services, but customers  perceive value only in the benefits these products and services provide. The principle of differential advantage o Similar to having a competitive advantage, a unique selling proposition or an edge. A net benefit or cluster of benefits, offered to a sizable group of customers, which  they value and are willing to pay for but cannot get, or believe they cannot get,  elsewhere. The principle of integration
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o At the customer: the firm must carefully integrate and coordinate all design and  executional elements of the offer it makes to customers. o In the firm: the firm must integrate and coordinate all of its functional activities - the market segmentation process (see market segmentation) - the four principles of strategic marketing - churn rate: or defection rate The number of customers and the start of the year, divided by the number of customers at  the end of the year. - Lifetime value equation and calculations LTV = M X R/(1+D) o M is margin, R is retention rate (the number of customers at the end of the year,  divided by the number of customers at the start of the year, D is discount rate (the  firms cost of capital).
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