Chapter 1:
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Business strategies are defined as product market investment, a value
proposition, assets/competencies, and functional strategies

Definition: strategy is framework which guides those choices that
determine the nature and direction of an organization

Definition 2: strategy is creation of unique and valuable position,
involving a different set of activities

Definition 3: in terms of 3Cs is defined as the way in which a corporation
endeavors to differentiate itself positively from its competitors, using its
relative corporate strengths to better satisfy customer needs

즉, business strategy talks about product-market investment strategy
(where to compete), the customer value proposition, assets and
competencies, and functional strategies and programs

WHERE TO COMPETE (product-market investment decision)  know
which product markets your company serves is equally as important as
knowing which product markets your company does not serve  효율
적인 투자를 통해 최대 이익을 뽑아내는 거 근데 이건 시장도 고려해
야되니까

HOW TO COMPETE (value proposition+assets &
competencies+function area strategies and programs)

Value proposition: concept of strategy is market driven and the
value proposition is central

Perceived benefit to customer in terms of functional,
emotional, social, and self-expressive

Assets and Competencies: key to a long-term investment
perspective

has both features of strategic competency (what biz unit does
well, strategic importance to biz and based on knowledge or
process)


strategic asset (a resource)
Functional strategies: needed to support and implement

manufacturing, distribution, brand-building, communication,
information technology, global strategy, segmentation, quality
program, customer relationship

strategic market management 

external analysis (customer, competitor, market(submarket),
environmental analysis)

internal analysis (performance analysis, determinants of
strategic options)
-
Strategy: plan, vision, planning, setting objectives, matching resources with
objectives, matching the 4Ps to your target market
Chapter 2:
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External analysis: identification of trends, threats/opportunities and strategic
uncertainties

Can lead to strategic decisions and to the analysis of information need
areas and scenario analysis
-
Segmentation Analysis identification of customer groups and respond diff to
competitive offering
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Customer motivations: four steps (identify, group&structure, assess
importance, assign roles)
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Unmet needs- powerful indicator of market opportunity
Customer motivation analysis
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Identify motivations
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Group and structure motivations
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Assess motivation importance
-
Assign strategic roles to motivations
Chatper 3 (안 나올 듯)
-
Customer-Based Approaches

Customer choices: what brand would you buy if your fav was unavailable

Application associations: what applications? What brands for each
application

What product substitutes
Deliverying customer value and satisfaction value chain/core business processes (
Chapter 4
Relevance (적합성): 세부 시장을 선정할 수 있는 적합성을 파악해야됨 (약점
/strength/CA)토대로 세부 시장과의 적합성을 따져야된다  최초 세부 시장을 볼 때 적
합성을 따져야됨
ㄴ그렇다면 세부시장의 요소는?
 Size & growth, profitability, cost structure, distribution systems, market trends,
KSF
Porter’s 5 factor: competition among existing firms, threat of potential entrants, threat
of substitute products, bargaining power of suppliers, bargaining power of buyers
Chapter 5:
Types of Innovations:
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Transformational: changes what people buy-changes the assets and
comeptencies needed
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Substantial: significant change as in a new generation offering
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Incremental: makes the offering more attractive or less costly
Chapter 6:
SCA:
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The way you compete (product, positioning, manufacturing, distribution strategy)
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Basis of competition: assets and competencies
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What you offer (value proposition)
-
Where you compete (product-market selection/competitor selection)
Customer value proposition: why customer should buy your brand, product or service
(benefits>technical functions)
Alternative value propositions:
ㄴPerformance value (functional, innovation, design, fashion, service, social responsibility)
ㄴPrice (life cycle cost of product)
ㄴRelational(CRM, CSM)
SCA vs KSF
SCA is unique capabilities or assets that allow a firm to maintain superior performance
over time and difficult for competitors to imitate. This creates points of difference. Ex.
Brand reputation, proprietary technology, exclusive access to distribution
KSF is essential things every firm in the industry must do to survive or compete. These
are often points of parity, they don’t differentiate you but without them you will lose. Ex.
Low-cost manufacturing in fast fashion, quality control in food industry, regulatory
compliance in pharma
Chapter 7
Customer decision journey
-
Today’s journey: info gathering, trigger (zero moment of truth), consideration set,
preference, purchase, post purchase
Long term customer relationships
-
Loyalty funnel important to long-term value of customer to build loyalty,
defend customer relationship
Chapter 8
Purchase funnel: one tool allowing the company to sorts its customers into the different
stages of the journey and monitor their progress
Activities to optimize management of the funnel:
-
focus on observable actions
-
funnel metrics should be carefully negotiated within the company
-
funnel should be jointly managed by marketing and sales
-
funnel metrics should be used to guide strategy adjustments
Customer Lifetime value (CLV)
 what is value of our customer
 how should be spend to attract or retain the customer
 calculates longtime value of individual or customer segment and works in
basis of DCF


use of CLV

guides customer management and acquisition

predicts and mitigates churn

account for and facilitate customer transitions

improve CLV by lowering acquisition costs
**can use CLV to invest in prospects (PLV), which is utilized to guide on
which current customers to invest in – lifetime value of PLV
Chapter 9-10
Brand Equity = set of assets and liabilities linked to a brand
Customer Based Brand Equity:
 Differential effect that brand knowledge has on consumer response to the
marketing of a brand
1. Brand Knowledge:
-
What consumers have learned, felt, seen, and heard about a brand over time
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Built through direct and indirect experiences, esp vi marketing efforts
2. Consumer Response Differences:
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If there’s no differential response, competition defaults to price-based only
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Brand equity creates a “halo effect”- positive associations extend beyond single
product
3. Impacts on Consumer Behavior:
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Brand choice decisions
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Recall of advertising messages
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Reaction to promotions
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Evaluation of brand extension
What makes up a brand
-
brand equity=brand awareness+brand loyalty+brand associations
Brand Awareness
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Awareness is a strategic asset as people like familiarity-awareness provides
this
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Can be a signal of presence, commitment, and substance
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The ability of the brand to be recalled at key points during the purchase
journey
**Big diff b/w recognition and unaided recall
-have you heard of brand X
-what brands of X can you name?
Brand Loyalty
-
Is an asset when customers have resistance to switching revolving around
Habit, preference, there is a cost (switching cost)
Brand Associations
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Anything linked to the consumer’s memory because of the brand

Can be an attribute or benefit although overreliance can be problematic
*good brands develop other associations on dimensions that are more difficult to
imitate, and more credible
- Association needs to maintain relevance and you can fit somewhere on continuum.
You do not want to be the trend neglector
Brand Identity
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What does your brand stand for? (key associations)
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What is brands core identity? (target mkt, differentiation from competitors,
parity with competitors, strategy&culture of the business)
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What is essence of the brand
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Externally

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Shape our brand image/provide basis for relationships and choice
Internally

Stimulate programs and prioritize initiatives inspire people
Brand Essence: compact theme or concept that represents much or all of the core
identity
Brand identity (aspirational association, customer promise) vs. Positioning (shortterm communication objectives)
Brand Resonance: ultimate relationships and level of identification that the customer
has with the brand
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How are customers in sync with brand (intensity/depth)
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The level of activity developed by this bond
4 categories from brand resonance: behavioral loyalty, attitudinal attachment, sense
of community, willingness to be engaged
So how to reach this great brand resonance
1. Understand and prioritize brand touchpoints
2. Focus on the customer’s sweet spot
3. Get beyond functional benefits
4. Broaden the concept of the brand
Sweet-Spot Program: Provides a relationship that is much more than an offering
based relationship
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Stimulate social network, brand energy&interest, brand likability&credibility,
form a friend, colleague, or mentor-brand relationship
Chapter 12
Brand Extensions: take brand asset and use it to enter new product markets
Use sub brands, endorsed brand:
Sub brands existing brands are judged to have the wrong associations or to have risk
to be damaged (or organization doesn’t have capa to build one)
Endorsed Brand expensive to build a stand alone brand (have the endorsement of the
master brand)
Synergy is an important SCA however some organizations delude themselves in
thinking that:
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Potential synergy does not exist ( only on basis of semantics)
-
Potential synergy exists but is unobtainable
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Potential synergy exist – but is overvalued
Blue Ocean
 Space that contains all business arenas not in existence-unknown market space
Red Oceans
 Established markets where operating parameters are established and accepted