TABLE OF CONTENTS
Customer Satisfaction and Profitability
MBM/App 1.1: Customer Satisfaction and Profitability
The Customer Compass
How to Underwhelm Customers and Shareholders
Customer Focus, Customer Satisfaction, and Profitability
Customer Satisfaction and Company Stock Price
Customer Satisfaction—A Key Marketing Performance Metric
Measuring Customer Satisfaction
A Wide-Angle View of Customer Satisfaction
Customer Satisfaction Analytic
Customer Satisfaction and Customer Profitability
MBM/App 1.8: Customer Satisfaction Profit Impact Analytic
Customer Satisfaction and Performance
Financial Outcomes: Sales, Gross Margins, and Operating Income
Customer Outcomes: Customer Retention and Customer Attraction
Industry Differences in Customer and Financial Outcomes
Estimating Customer Retention
Estimating Customer Attraction
Customer Outcomes: Customer Retention and Attraction
Customer Satisfaction’s Financial Impact
Customer Retention and Customer Life Expectancy
Customer Lifetime Value
MBM/App 1.15: Customer Lifetime Value
Net Promoter Score
Home Depot: Benchmark Company Performance
Building a Customer-Focused Organization
Building Customer Focus
Senior Management Leadership
Employee Customer Training
Customer Feedback
Customer Experience, Solutions, and Complaints
Customer Experience
Customer Solutions
Customer Complaints
Loyalty Programs and Dissatisfaction
Loyalty Programs
Managing Customer Dissatisfaction
Managing Customer Complaints
Summary
Understanding the Voice of the Customer (VOC)
MBM/App 2.2: Running Shoes – Customer Experience Word Cloud
Identify Customer Needs
Create a Common Language
Satisfaction Survey Items
Gathering VOC
Focus Group
MBM/App 2.7: Nike Product Focus Group
Depth Interviews
Ethnography & Observation
Empathic Envisioning
User Experience Labs
Crowdsourcing
Online Reviews
Social Media Listening
VOC Sources
Current, Future, and Former Customers
Prosumers
Frontline Employees
Lead Users
Harbingers of Failure
Social Media
Customer Complaints
Customer Experience Milestones
MBM/App 2.18: Customer Experience Milestones Score
Milestones and Satisfaction
Milestones and Voice of Customer
Cutting VOC into Practice
Summary
Customer Value
Customer Value, Customer Satisfaction, and Firm Outcomes
Customer Value
Economics Value
Ownership Value
MBM/App 3.5: Prioritizing Customer Needs Based on Importance
Customer Value Equation
Relative Performance
MBM/App 3.7: Peet’s Coffee Overall Performance
Relative Price
Relative Value Map
MBM/App 3.10: Relative Value Map
Measuring Customer Value Using Market Data
Economic Value Using Fair Price Line
Customer Value and Economic Value
Ownership Value
MBM/App 3.19: Ownership Value of Shipping Package
Summary
MBM/App 4.2: Customer Need-Based Market Segmentation
Customer Need-Based Market Segmentation
MBM/App 4.4: Microsoft Customer Preferences for Features and Price
Identifying Segments with Different Needs
How Segment Descriptors Shape Consumer Market Needs
How Segment Descriptors Shape Business Market Needs
Segmentation Traps
MBM/App 4.12: Peet’s Coffee – Needs-Based Customer Segmentation
Segmentation Process
Step 1: Identifying Need
Step 2: Determining Need Importance
Step 3: Needs-Based Segmentation
Step 4: Segment Profiling
Step 5: Segment Attractiveness
Step 6: Segment Profitability
Step 7: Segment Positioning
Step 8: Segment Strategy Acid Test
Step 9: Implementing a Customer-Focused Strategy
Segmentation Strategies
Single-Segment Positioning
Adjacent-Segment Positioning
Sub-Segment Positioning Strategies
Mass Customization
Customer Satisfaction and Segment Monitoring
Summary
Market Focus
Broad Market Definition
Market Potential
MBM/App 5.5: Estimating Market Potential
Current Demand
How Innovation Extends Market Potential
Market Development Index
Untapped Market Potential: Seven Barriers
Overcoming the Seven Barriers
Product Lifecycle & Market Share Management
Market Share Performance Metrics
MBM/App 5.12: Market Share Performance
The Share Potential & Development Index
Market Opportunity Portfolio
MBM/App 5.16: Forecasting Sales
Summary
Measuring Business Performance
BIOTRONIC’S Marketing Performance Metrics
Marketing Performance Metrics
Marketing Analytics and Marketing Metrics
Financial Metrics versus Marketing Metrics
Internal versus External Metrics
Forward-Looking versus Backward-Looking Metrics
Marketing Performance Dashboard
Net Marketing Contribution—A Marketing Profitability Metric
Marketing Profitability Metrics
MBM/App 6.11: FIT PRO – Marketing Profitability Metrics
Marketing Return on Sales (MROS)
Marketing Return of Investment (MROI)
Net Marketing Contribution – An Operational Customer Definition
MBM/App 6.12: Marketing Performance & Profit Impact
Company Marketing Profitability Metrics
Benchmarking Marketing Profitability
Benchmarking Marketing ROS
Benchmarking Marketing ROI (MROI)
Sportswear Company: Return on Sales vs. Marketing Profitability Metrics
Marketing Performance Strategies
MBM/App 6.16: Profit Impact of Increased Customer Retention
Customer Satisfaction and Derivative Customer Performance
Improve Customer Retention Strategy
Multiplier Customer Strategy
Market Share Strategy
Revenue per Customer Strategy
Price Strategy: Inelastic Prices and Very High Customer Satisfaction
Performance-Price Strategy
Service Quality Strategy
Brand Reputation Strategy
Summary
Brand Positioning Strategy
MBM/App 7.3: Loctite’s Expanded Brand Positioning Strategy
Positioning and Financial Performance
Brand Differentiation
Brand Benefits and Costs
Brand Equity
MBM/App 7.8: Forbes 2020 World’s Most Valuable Brands
Brand Assets
Brand Liabilities
Brand Equity and Owner Equity
MBM/App 7.13: Brand Score
Brand Management: Key Consideration
Company and Product Name
Company and Brand Name
Umbrella Brand and Sub Brands
Product/Benefit or Brand Name Only?
Brand Name Development
Product/Benefit or Brand Name Only?
Summary
Product Management and Positioning
Samsung
MBM/App 8.3: Samsung Galaxy’s Product Evolution
Product Management Planning
Toyota & Lexus
General Electric – Lullaby
The Importance of Product Positioning
Horizontal and Vertical Product Differentiation
Competitive Advantage Through Differentiation
MBM/App 8.9: Improving Existing Features
Differentiation: Basic Quality Requirements
Differentiation: Improving Existing Features
Differentiation: Adding New Features
Differentiation: Appearance
Differentiation: Individualized Attention
Differentiation: Relationships
Differentiation: Reputational Benefits
Product Line Management
Product Line Breadth
Product Line Depth
Product Line Extension
Product Line Management: Financial Reporting
Horizontal Product Line Extensions
Vertical Product Line Extensions
New Product-Market Extensions
Product Cobranding
Product Line Management: Financial Reporting
MBM/App 8.21: Snowboard Company’s Marketing Strategy Team Report
Summary
Price and Break-Even Analysis
Profitability Analysis with Break-even Pricing
MBM/App 9.4: Bakery Break-Even Analysis
Types of Pricing Strategies
Cost Perspective
Customer Perspective
Purchase Likelihood Pricing
Cost-plus vs Purchase Likelihood Based Price
MBM/App 9.9: Customer Purchase Likelihood Index (B2N Companies)
Price Elasticity and Profitability
MBM/App 9.11: Bakery Price Elasticity and Profit Impact
Value in Use Pricing
Performance-Based Pricing
Feature Pricing
MBM/App 9.14: Travel Backpack Price-Performance Design Options
Product Line Pricing
Subscription-Based Pricing
Lifecycle Pricing Strategies
Skim Pricing
Penetration Pricing
Multi-segment pricing
Plus-one Pricing
Harvest Pricing
Customer Satisfaction and Price Elasticity
Summary
Channel Strategy
How Channel Intermediaries Benefit Manufacturers
How Channel Intermediaries Benefit Customers
MBM/App 10.2: Channel Efficiency and Channel Intermediaries
Channel Mapping
MBM/App 10.3: Mapping Channel Pricing and Pocket Price
Types of Marketing Channels
Direct Channels
Indirect Channels
Mixed Channels
Profit Impact of Alternative Marketing Channels
MBM/App 10.12: Channel Mix & Profitability
Managing Customer Interaction
Summary
Marketing Communications and Customer Response
MBM/App 11.13: E-Mail Communications Metrics
Brand-Information Communications
Brand-Action Communications
Digital Marketing Communications
Digital Media Marketing Analytics
MBM/App 11.15: Almetta Social Media Response Metrics
Social Media Marketing Communications
Communications Paradigm
Customer Connectivity and Engagement
Social Media Communications Platforms
Instagram
Facebook
Twitter
Youtube
LinkedIn
Blogs
Others
Leveraging Social Media Tools
Social Media Marketing Metrics
Marketing Communications
Customer Response Index
MBM/App 11.16: Advertising Effectiveness and Customer Response
Improving Customer Response
Building Customer Awareness and Comprehension
Media Selection and Customer Awareness
Message Frequency and Customer Awareness
Ad Copy and Customer Response
Message Reinforcement
Pulsing
Heavy-Up Message Frequency
Stimulating Customer Action
Pull Versus Push Communications Strategies
Pull Communications and Customer Response
Advertising Elasticity
Advertising Carryover Effects
MBM/App 11.23: Advertising and Sales Carryover Effect
Promotional Price Elasticity
Push Communications and Customer Response
Trade Promotions and Customer Response
Summary