Mark Final

Question 1

Staircase Analysis

Answer 1

accentuates the steps that leads to a purchase decision: total marker -> awareness -> action -> adoption/loyalty

-It highlights the gaps where potential sales are lost

Question 2

Customer satisfaction and loyalty

Answer 2

• not a linear relationship
• . In competitive environments customers are reasonable but they want to be completely satisfied. If they are not and have choice, they can be lured away easily

Question 3

NPS Scores Limitations

Answer 3

will give you signals about customers (prospectors/detractors) but not reasons why they are prospectors or detractors

Question 4

Volume Projections Cautions

Answer 4

• Volume (sales) projections will always require KEY assumptions. Sometimes assumptions are exaggerated
• Sometimes trial and repeat rates are difficult to determine

Question 5

Brand Exploratory

Answer 5

1) Performance ex. Expensive, innovative
2) People ex. Wealthy, high class
3) Negative ex. Counterfeited, flashy
4) Sports ex. Tennis, golf
5) Image ex. Luxury, successful

Question 6

Boston Consulting Group

Answer 6

• Compares market growth rate with market share strength
• Star (H/H) , Question Mark (H,L), Cash Cow (L,H), Dog (L,L)
• Does not capture changes/trends in the market

Question 7

RFM Model: Cautions

Answer 7

• Model does not adjust customers who turned out to purchase intensively in a brief period of time and then never again
• Does not account for customer profit

Question 8

Identifying the Right Customers

Answer 8

• Butterflies (high profitability, short term customers)
  o Actions: milk the accounts as long as they are active
• Strangers ( Low profitability, short term customers
  o Make no investment in these relationships
• Barnacles ( Low profitability , Long term customers
  o Measure both size and share of wallet
• True Friends ( High profitability, Long term customer )
  o Communicate consistently

Question 9

Revenue Pipeline

Answer 9

1) all names 2) engaged 3) prospects 4) leads 5) opportunity 6) customer

Question 10

Effective Frequency

Answer 10

is the number of times that a message must be repeated in order to be useful. As a rule of thumb an estimate of three exposures per purchase cycle is used

Question 11

Effective Reach

Answer 11

represents the number of people or the percentage of the audience that receives an advterising message with a frequency equal to or greater than the effective reach