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Terms in this set (62)

Principle 1: Selectivity and Concentration
- Selectivity: Marketing must carefully choose targets for firm efforts.
- Concentration: The firm should concentrate resources against those targets.
- This principle is about choosing the firm's battles.
Principle 2: Customer Value
- Marketplace success depends on providing value to customers. This principle is central to marketing's job.
- Customer insight should drive the design and implementation of market offers.
- Customers value should drive the firm's product and investment decisions and performance evaluations.
- Customers do not want the firm's products; they only want the value those products deliver.
Principle 3: Differential Advantage
- Differential advantage is similar to having competitive advantage, unique selling proposition, or edge. Firm should offer customers something they value but cannot get elsewhere.
- Competition: The principle emphasizes competition; offering customer value is not enough.
- Superiority of differential advantages: Some differential advantages are better than others.
- Eroding differential advantages: Maintaining differential advantage must be continuous and ongoing.
- Cannibalizing a differential advantage: To stay ahead of competition, the firm must be willing to cannibalize its own offers.
- Differential advantage and difference: firm's differences must create benefits that customers recognize, value, and are willing to pay for.
Principle 4: Integration
- At the customer: The firm must carefully integrate and coordinate all design and execution elements it offers customers.
- In the firm: To achieve integration at the customer, the firm must carefully integrate and coordinate all internal functional activities.