MKTG1501 Lecture Notes - Lecture 2: Loyalty Marketing, Cost Leadership
Document Summary
Lecture 2 creating value and competitive advantage: marketing culture based on belief that purpose of business is to create customer value o. Shown by; o understanding customers o awareness of competitors o collaboration within firm o leadership action focused on customers. Customers maximise value (surplus): determined only be relevant features to them, perceptions of value indicate likeliness of purchase. Features are all attributes of a product o benefits are only the ones consumers care about. Loyalty programs: consumers receive fiscal benefits to increase loyalty, social benefits, personalising services, harder to imitate than financial benefits, structural ties. 2: provision of services or stock to assist consumers in their activities, can occur to varying degrees. Marketing aims to build relationships to retain profitable customers. Customer lifetime value refers to how the net surplus a consumer will provide to a business over their lifetime: not focused on a sole transaction. Conduct competitor analysis: determine them, direct pepsi/coke, indirect pepi/mount franklin.
