SMG MK 323 Lecture Notes - Operational Excellence, Customer Retention, Competitive Advantage
Document Summary
Marketing strategy = identifies a firm"s target markets, related marketing mix (4 p"s), and the bases on which the firm plans to build a sustainable competitive advantage. Sustainable competitive advantage = advantage over the competition that is not easily copied and can be maintained over a long period of time. Over time advantages will erode because of these competitive forces. Customer excellence is achieved when firms develop value-based strategies for retaining loyal customers. Ex: having strong brand, unique merch, and superior customer service all solidify loyal an base. Having loyal fans itself is a competitive advantage. Loyalty is more than just preferring one product over another. Means that customers are more reluctant to patronize competitive firms. Viewing customers with a lifetime value perspective rather than by transaction-by- transaction is key to modern customer retention. Creating loyalty through emotional attachment from loyalty programs. Firms can identify members through loyalty memberships when they make a purchase.
