BUS 346 Chapter Notes - Chapter 2: Direct Marketing, Competitive Advantage, Boston Consulting Group
Document Summary
Marketing strategy: a firm"s target market, marketing mix (4 p"s), and method of obtaining a sustainable competitive advantage. Locational excellence: having a good physical location and internet presence. Loyal customers is part of a sustainable competitive advantage. Loyalty means customers are reluctant to patronize competitive firms. Sustainable competitive advantage can attract and maintain loyal customers. Viewing customers with a lifetime value perspective, rather than transaction-by transaction basis. Achieve customer loyalty through loyalty programs which create an emotional attachment. Can use information from these customers to implement tailored retention programs: providing outstanding customer service. Offering consistent excellent customer service helps build a sustainable competitive advantage. Hard to create a comparable reputation, so once a good service reputation is established, they have competitive advantage. Strive for efficient operations to get customers the merchandise they want, when they want it, in the quantity they want it, and at a lower delivered cost than competitors. Good value for customers, profitability, satisfied customer needs.
