B43 Customer Acquisition Elective C5 and C6

LOGS
December 17th : 1 classes : 4.50 pm - 6.00 pm
Preparing for a competitive onslaught 
Case Used : Wallace Fort Hotels
Main Lessons 

• Price is important because it impacts both the customer satisfaction and profits. Since Value > Price > Cost; you must know which cost is converted into value and which is not. In view of these it is important to know it is important to (A) The company whose resources can be used to create value so that you can select what resources and competencies you want to create in the long run  (B) Know various customers in the market so that you can select the customer who is Willing to Pay for what you can create from your competencies  (C) Know the competitor and his ability to create a better value for your targeted customers because of his competences (D) Know the value who can attract your customers to them
   That’s why knowing customer is important. That’s why you also must know who can create the same value better than you (eg delivery : that is why you need a partner )
  Value is an important part of the of an offering can be determined only from the viewpoint of the customer. It is reflected in the "willingness to pay" (WTP)  for the offer.
  Sometimes the sting of negative features - or sometimes the positive attraction of  some great features - disappears  when you change the target customer. "The beauty is in the eye of the beholder".
  No feature , by itself, is good or bad. The key question is "for whom" and "for what purpose / application"
  The cost, or the materials, or the technology that goes into an offering is designed to create value for the customer but many times it does not. There is always a waste. 3 circles models.
  Who are you competing with is an important question in marketing. For example, if City Center Hotel does not compete with Wallace Fort Hotels, there is not need for the Wallace Fort Hotel to do anything. But, on the other hand, if they are competing, then the Wallace Fort Hotels needs to do something.
  How do you resolve whether they are competing or not? Because BOTH of them are called "Hotels", are they competing ? Or, because they are at different locations and are offering different features, can we say they are not competing? Generally these kind of deep questions cannot be answered from an industry perspective (analysis of what goes into the products) but can be answered from a market perspective (analysis of who is appealed by the products). The concept of strategic groups.
  If the same customer (say, your customer) is attracted to consider 2 items, they are said to compete with each other in the mind of that customer.
  How to select or reject faatures : we saw 3 models : Kano's model , 3 Circles model , Value For Money line
  Process of Marketing
  Consumer Behavior, Decision Making Unit, Market Research
  QUESTION FOR YOU : Out of all the players in your industry, who is competing with you?  For any given product / offering you have, what are the different target audiences in the market and how do you rate the attractiveness of your offering to each of those audiences.    If customer satisfaction and profit are both important, price is important because it impacts both. Price will be paid if
• 
  

December 18th : 1 class : 3.20 pm - 4.30 pm 

Case Used : Everwrite Pen Company
How does marketing help the CEOs in helping him take decisions 

Main Lessons 

• The CEO sanctions acquisition or use of assets to the CMO so that he can create the right marketing mix. The "assets" are tangible (financial and physical) and also intangible assets (structural, human and relational). The process works in reverse : the CMO studies the market (similar customers grouped together : called "segments") and arrives at the appropriate marketing mix needed by that segment. After this, as the case shows, it becomes clear what tangible and intangible assets are needed to crack the market.  
• The process of marketing was discussed 

December 17th : 1 class : 4.50 pm - 6.00 pm 
Case Used : 3-in-1 Ram Baan 
How to estimate the sale of a completely new product
Main Lessons 

• MVC Model