Session

1
Session 11Agenda for MM2 Advanced Marketing
Management

• Brief review
• Tools for Strategic Shaping of Customer
  Preferences

2
Improving Marketing Effectiveness

• Performance Diagnostics Rule Dont focus solely
  on sales to analyze a firms position. Understand
  what drives these results.
• Hierarchy-of-Effects
• Resource Allocation Rule Increase marketing
  expenditures if the additional expenditure is
  less than the additional gross margin, focusing
  on where the additional margin will be greatest.

3
BMW Take Away Points

• Beware of holes in the market
• Examine challenge rules of the game
• Most competitive advantages will not last

4
Tools for Strategic Shaping of Customer
Preferences
5
Reason Based Choice

• What attributes strongly affect perceived
  quality?
• Meaningless differentiation
• Un-needed premiums/ promotions
• Context Effects
• Attraction Effect
• Compromise Effect
• Choosing vs. rejecting
• Meaningless reasons
• Importance of reasons

6
Loss Aversion Framing

• Endowment Effect
• Status Quo Bias
• Framing
• Price Stickiness