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SBD Marketing&Sales Y4Q1 Summary
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Marketing&Sales Summary based on lectures and relevant chapters of the book for the SBD case exam
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Marketing and Sales Y4Table of Contents
Training Notes Week 1.......................................................................................................1
Training Notes Week 2.......................................................................................................2
Week 2 Lecture Notes..................................................................................................................3
Chapter 1: Customer Focus and Managing Customer Loyalty.......................................................5
Chapter 2: Marketing Performance and Marketing Profitability...................................................7
Chapter 4: The Customer Experience and Value Creation...........................................................10
Chapter 8: Value-based pricing and pricing strategies................................................................11
Lecture Week 4................................................................................................................15
Chapter 12: Offensive strategies.................................................................................................22
Chapter 13: Defensive strategies................................................................................................23
Chapter 14: Building a Marketing Plan.......................................................................................24
Chapter 15: Marketing Metrics, Performance and Strategy Implementation..............................25
Required reading
Week 1 and 2: Chapter 1 and 2
Week 3 and 4: Chapter 4 and 8
Week 5 and 6: Chapter 3,10,11 and 12
Week 7: Chapter 13,14 and 15
Training Notes Week 1
Homework 1a
Why does customer retention matter to Netflix?
Retention + Customer acquisition cost = Total Marketing Costs (TMC)
Launching other services such as video games, etc.
How can Netflix retain customers? What is their strategy?
Differentiation themselves from their competitors (unique content)content strategy,
making their own movies (Netflix Originals)
How does their customer retention strategy related to the customer life time value? Can the
customer life time value service as a means of deciding when to accept customers when to
reject customers?
,The value the customers brings while they are purchasing from your company
CLV= Cashfows/ (1+r)n
How does netflix’s customers satisfaction influence their customer retention?
Homework 1b
Q1
Marketing costs are not being driven by sales but by customer retention
Satisfaction improvement creates more customer value and that in turn effects sales.
Q2
Encouraging customers to complain. Why is this a good idea in light of the data?
Marketing costs= Acquisition costs + Retention costs
By encouraging customers to complain you gain the opportunity to fix the situation. So
retention goes up and acquisition costs go down
If more people are complaining why do our sales go down?
-It could be by chance as it is less than 0.5% of sales fluctuation or it could be that some
people are buying less and evaluating the situation (sometimes a lagged effect occurs)
-Marketing expenditure goes down as now you have less acquisition costs
Training Notes Week 2
United Questions
1. What service expectation do customers have airlines such as United Airlines? How
did these expectations develop over time?
Service reflects the price paid for the flight, friendly employees, good seat, flight on
time
High expectations because hospitality business and transport business
2. Customer retention is important, because their margins are relatively low. If
customers keep coming back to the same airline. Customers can cancel one day
before the flight, therefore it’s important to keep the customers and provide the
information to the customer to keep their ticket and not cancel
Margins are low, 7 to 8% and decreasing. Not much margin to be made off your seat
3. Online discount, discount through email, vouchers, loyalty programs, quality of
customer service, frequency of flights, engaging customers, behavioral targeted
advertising, destinations, few layovers
4. If customers keep flying with the same company it’s useful, if it’s a customer that
only flies once it won’t help. Some partners work together, partner will benefit from
it
5. Service delivery and communication with customers (Gap 4) and Gap 5
, Customer retention can push SG&A costs down which increases sales
Week 2 Lecture Notes
Consumers always have expectations from prior experiences for example. If the
expectations aren’t met, then we are satisfied, because we had higher expectations.
Satisfaction is a measure of value. Companies that don’t focus on the customers and
therefore don’t create satisfaction end up in a vicious cycle.
Me too products= aren’t wanted by the consumers, are not popular
A lot of customers just purchase once and then go for an alternative, therefore there is high
customer turnover, which creates market share instability. Marketing costs, acquisition
costs and retention costs increase because there is no unique value. There is not good
profitability, because the valiability isn’t good.
How to build a strong customer focus?
-built from top down, including all employees
-customer leadership, voice of the customer and customer metrics are the forces of a
business with strong customer focus
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