CU-MBA-SEM-IV-Marketing Analytics

3.6 ALLOCATION OF PROMOTIONAL TOOLS IN B2B & FMCG Emerging Trends of Business Promotion in FMCG “Sales promotions include incentive offering and interest creating activities which are generally for a limited time marketing events other than all promotional tools like advertising, personal selling, publicity and direct marketing. The main goal of sales promotion is to use Push & Pull Strategy for generating demand, motivate and influence the purchase and other expected behavioural responses of the targeted new & current customers”. First common trend is Buy One Get One Free (BOGOF): The best way by giving one item free with one purchase of one item is becoming very popular not only in all cities across country. For example, if pack of bread is priced at Rs.10 and its actual manufacturing cost is Rs.3 and you two breads for Rs.10, you will make good profit especially if sales increase due to this BOGOF offer. We know very well that this is very common tactics in current retail market across India. The all retail set ups are using POP display method to capture more customer & increase sales by using various product mix, product basket to get maximum benefits. ii.CEM CustomerExperience Management (CEM): The concept of CEM is focusing on customer feedback, response based on which marketing managers develop various promotional program which helps for maintaining smooth CRM. Website to know whether if he had won a prize/gift or not. Customers also had option to check these printed text codes via their cellular phones. Business to business marketing refers to the transaction of goods and services between businesses. Marketing mix helps to determine the unique selling points (USPs) of a brand. Marketing mix goes a long way in determining how an organization's products and services are different from the competitors. Business to business marketing refers to the transaction of goods and services between businesses. Marketing mix helps to determine the unique selling points (USPs) of a brand. Marketing mix goes a long way in determining how an organization's products and services are different from the competitors. Different Tools for promotion of B2B  Video Marketing  Utilizing Analytics Data  Customer Surveys  Content Marketing  Email Marketing 51 CU IDOL SELF LEARNING MATERIAL (SLM)

 Hyper-Targeted Paid Media Campaign  Trade Show / Exhibitions 3.7 INTRODUCTION OF DISTRIBUTION IN MARKETING  Place the means by which products and services get from producer to consumer and where they can be accessed by the consumer.  The more places to sell more & more the product and the easier it distribution, the better for the business (and the consumers)  Place (Channels) for a product is the route taken by the title of the goods as they movefrom producer to ultimate consumers or industrial users with a profit.  Physical Distribution Management consists of planning, implementations & controlling the physical flow of raw materials &finished goods for end users from point of origin to the point of use to meet customerrequirements at a profit. 3.8 SELECTING RIGHT CHANNELS FOR THE RIGHT PRODUCTS B2B and B2C companies can sell through a single distributionchannel or through multiple channels that may include:  Wholesaler/Distributor.  Direct/Internet (e-Commerce)  Direct/Catalogue.  Direct/Sales Team.  Value-Added Reseller (VAR)  Consultant.  Dealer.  Retail.  Sales Agent/Manufacturer’s Rep Physical Distribution Decisions  Customers’ requirements  On time delivery (JIT)  Suppliers’ willingness to meet customers emergency needs  Careful handling of the products 52 CU IDOL SELF LEARNING MATERIAL (SLM)

 Replacement Finished goods inventory. 3.9 SUMMARY The main purpose of promotion is to update awareness, create demand &interest, and generatemore sales growth by building brand loyalty. It is one of the basic elements of the market mix, which includes the 4P’s of Marketing Mix which includes product, price, place, and promotion. Promotion is also one of the elements in the promotional mix or promotional plan. Promotion is an attempt by marketers to inform, persuade, or remind consumers and B2B users to influence their opinion or elicit a response. In marketing, promotion refers to any type of marketing communication used to inform target audiences of the relative merits of a product, service, brand or issue, most of the time persuasive in nature. ... The aim of promotion is to increase awareness, create interest, generate sales or create brand loyalty. The Objectives of Promotional Marketing 1. Promotion of new products or services 2. Development of brand image 3. Informing customers 4. Showing superiority over competitors 5. Turning potential buyers into real customers  A distribution channel is the path through which products pass to get from the one point to other point to the consumer. ... Distribution channels may be direct, from the company directly to the consumer. They may also be other channels like indirect, in which goods travel from the producer, through amiddleman’s, to the end consumer.  A distribution channel, in simple terms, is the movement of good or service follows from production or manufacturing to the final consumer/buyer.  The bridge between producers and the end consumer is normally intermediaries, such as wholesalers, retailers, or brokers. The intermediaries can be natural persons or businesses.  Distribution channels can be either direct or indirect. The indirect channels can be divided up into different required levels such as – one-channel, two-channel, and three-channel, multi channels. 53 CU IDOL SELF LEARNING MATERIAL (SLM)

3.10 KEYWORDS Four elements of Promotions Advertising  Promotions refer to the entire set of activities, which communicate the product, brand or service to the user.  Publicity is important because it helps increase awareness and visibility of your company while establishing it as a worthwhile business to purchase products or services from.  Personal SellingAt certain stages of the buying process, personal selling is the most effective promotion tool in creating customer’s preferences, convictions and actions 3.11 LEARNING ACTIVITY 1. Explain Different Promotional Methods? ___________________________________________________________________________ ___________________________________________________________________ 2. What is the difference between Sales Promotion & Personal Selling? ___________________________________________________________________________ ___________________________________________________________________ 3. What are the different channels of distribution? ___________________________________________________________________________ ___________________________________________________________________ 3.12 UNIT END QUESTIONS A. Descriptive Questions 54 Short Questions 1. Define Promotion 2. Why Promotion is so important in Business? 3. How to develop Promotion Mix Program? 4. Define different Promotional Tools 5. Explain different Types of Sales Promotions 6. Identify the purpose of Promotion in Marketing Analytics 7. Explain Sales Promotion for FMCG 8. Explain the role of Personal Selling in B2B CU IDOL SELF LEARNING MATERIAL (SLM)

9. What are different channels of distributions? 55 10. What factors to be considered for selecting Channels of distribution? Long Questions 1. What are the benefits of Sales Promotion? 2. What are the different types of Promotional Methods used by Colgate 3. Explain the main goal of Promotion 4. What is Sales Promotion? 5. What the factors to be viewed for setting a promotion program for new car? 6. Why Advertising is used very commonly by leading Companies? 7. Suggest a suitable channel of distribution for Pharma Machine 8. What is E Marketing? 9. Define the concept of on Distribution Management 10. How to decide channels for a perishable product? B. Multiple choice Questions 1. Which is the important element of Promotion Mix? a. Product b. Advertising c. Free Sample d. Branding 2. Good Promotion Program will help for ___________ a. Business Growth b. Market Survey c. More Sales d. Customer Satisfaction 3. Direct Marketing is followed by _________ a. TATA Motors b. Nirma Group c. SSI CU IDOL SELF LEARNING MATERIAL (SLM)

d. AMYWAY 4. ____________ is fixed before setting a promotional program a. Promotional Objectives b. Market Segment c. Target Market d. Sales Quota 5. The main aim of place or distribution is _____________ & ____________ a. Smooth delivery & JIT delivery to end customers b. Market feedback & Data collection c. Cost reduction & minimum cost d. Customer satisfaction & goodwill Answers 1-b, 2-c, 3-d, 4-a, 5a. 3.13 REFERENCES Textbooks  T1 Grigsby, M. 2115. Marketing Analytics: A practical guide to real marketing science, Its Ed., Kogan Page, India, ISBN: 978-0749474171.  T2 Winston, W. 2114.Marketing Analytics: Data Driven Technique using MS. Excel’s Ed. John Wiley & Sons, India, ISBN: 978-1118373439. Reference Books:  R1 Grigsby, M. 2116. Advanced Customer Analytics: Targeting, Valuing, Segmenting and Loyalty Techniques (Marketing Science). Ist Ed. Kogan Page. India. ISBN: 978-0749477158. Websites  https://springer.com  https://michaelpawlicki.com  https://statisticshowto.com 56 CU IDOL SELF LEARNING MATERIAL (SLM)

UNIT 4: MODELS USING ANALYTICAL TOOLS, BRANDING, BRAND AWARENESS STRUCTURE 4.0 Learning Objectives 4.1 Introduction of Analytical Tools 4.2 objectives of using analytical tools 4.3 Methods of using Analytical Tools 4.4 Process of using Analytical Tools 4.5 Different types of analytics 4.6 Introduction of Branding 4.7 Types of various Brands 4.8 Introduction of Brand Awareness 4.9 Summary 4.10 Keywords 4.11 Learning Activity 4.12 Unit End Questions 4.13 References 4.0 LEARNING OBJECTIVES Upon successful completion, students will have the knowledge and skills to:  Explain the theoretical aspects of key analytical techniques and instruments used in geochemistry, including but not limited to electron microscopy, X-ray diffraction, mass spectrometry and spectroscopy (including synchrotron techniques).  Strategically plan analytical campaigns to apply to different types of samples and research objectives, including selection of the most appropriate technique/instrumentation for the students' research project.  Undertake the correct sample preparation and characterization prior to analysis by the chosen techniques or instruments.  Design an analytical work-flow to acquire data and achieve the research objectives of their project.  Process data from the chosen instruments and demonstrate understanding of the limitations and quality of the data. Justify the approach taken to data processing. 57 CU IDOL SELF LEARNING MATERIAL (SLM)

 Write a clear and concise justification and description of the analytical techniques employed, suitable for publication in a scientific journal. Analyze elements of a brand and explain how the brand-building process contributes to the success of products or services  Describe the elements of brand and how brands add value to an organization’s products and services  Define brand equity and its role in measuring brand strength  Explain the how marketers use brand positioning to align marketing activities and build successful brands  Explain the importance of name selection in the success of a brand  Discuss the role of packaging in the brand-building process  Explain key strategies for developing brands including brand ownership, brand and line extensions, co-branding and licensing 4.1 INTRODUCTION OF ANALYTICAL TOOLS Marketing analytics comprises the processes and technologies that enable marketers to evaluate the success of their marketing initiatives. This is accomplished by measuring performance (e.g., blogging versus social media versus channel communications). Marketing analytics uses important business metrics, such as ROI, marketing attribution and overall marketing effectiveness. In other words, it tells you how your marketing programs are really performing. Marketing analytics gathers data from across all marketing channels and consolidates it into a common marketing view. From this common view, you can extract analytical results that can provide invaluable assistance in driving your you can do with With analytics, you can answer questions like these: How are our marketing initiatives performing today? How about in the long run? What can we do to improve them?  How do our marketing activities compare with our competitors’? Where are they spending their time and money? Are they using channels that we aren’t using?  What should we do next? Are our marketing resources properly allocated? Are we devoting time and money to the right channels? How should we prioritize our investments for next year?  Marketing efforts forward.  Critically evaluate the key analytical frameworks and tools used in marketing  Apply key marketing theories, frameworks and tools to solve Marketing problems  Utilize information of a firm's external and internal marketing environment to identify and priorities appropriate marketing strategies 58 CU IDOL SELF LEARNING MATERIAL (SLM)

 Exercise critical judgment through engagement and reflection with existing marketing literature and new developments in the marketing environment  Critically evaluate the marketing function and the role it plays in achieving organizational success both in commercial and non-commercial settings  Evaluate and act upon the ethical and environmental concerns linked to marketing activities Business analytics is establishing the winners and losers in most industries. Connect cites analytics as serving a crucial character in its turnaround. Numerous companies such as Amazon, Google and Capital One have constructed their complete business model across analytics. Companies that account for this are demanding for the talent required to assimilate business analytics into their business strategy.\" – Dr. Kenneth Gilbert, head of UT’s Statistics, Operations and Management Science department. 4.2 OBJECTIVES OF USING ANALYTICAL TOOLS The Importance of Data Analysis Tools  Duplicate Data Detection. ...  Data Cleansing. ...  Data Monitoring. ...  Data Enrichment. ...  Data Standardization. ...  Data Quality Checklist. ...  Growing Importance of Data Quality Analysis Tools. What does a data analyst do? In the simplest terms, a data analyst is an interpreter. In the simplest terms, a data analyst is an interpreter. They take raw data and turn it into meaningful insights that businesses can use for more effective decision-making. A data analyst can cover a number of fields, including finance, marketing and operations, and their findings could, for instance, result in:  Reduced transportation costs  Insights into customer behaviour  Early warnings of adverse market conditions4 1. Data extraction: Investigate data to establish new relationships and patterns 59 CU IDOL SELF LEARNING MATERIAL (SLM)

2. Predictive Analytic and Predictive Modelling: Analyze the correlation between different variables 3. Logistic Regression: Analyze the possibility of default and generate customer records 4. Problem analysis: Understand and explore problems in business 5. Data interpretation: Use tools such as Excel and open source to interpret data 6. Problem-solving: Use analytics to solve business problems Business Analytics in Action: 7-steps Process outlined below; Step 1: Address the Business Problems Initially, business problems need to be addressed; the purpose of applying analytics is sometimes designated categorically or broken into parts. So, relevant data is selected to address these business problems by business users or business analysts equipped with domain knowledge. Some examples are: keeping modeling for a postpaid subscription, fraud detection for credit cards, or customer analysis of a mortgage portfolio. Business experts define perimeters for the analytical process which is crucial for assuring general understanding of the goal. Step 2: Identify Potential Interest from Data All sources of data having potential interest are required to identify. The key asset in this step is the more the data, the better it is. All the data will then be accumulated and consolidated in a data warehouse or data mart or at a spreadsheet file. Some exploratory data analysis is executed to do the computation for missing data, removing outliers, and transforming variables. For example, time-series analysis graphs are plotted to figure out some patterns or outliers, scatter plots are used to find correlation or non-linearity, OLAP system for multidimensional analysis. Step 3: Inspect the data Once moving to the analytics step, an analytical model will be predicted on the prepared and transformed data using statistical analysis techniques like correlation analysis and hypothesis testing. The analyst figures out all parameters in connection with the target variable. The business expert also performs regression analysis to make simple predictions depending upon the business objective. In this step, data is also often reduced, divided, crumbled and compared with various groups to derive powerful insights from data. 60 CU IDOL SELF LEARNING MATERIAL (SLM)

Step 4: Interpretation and Evaluation by Experts Finally, after obtaining model results, business experts interpret and evaluate them. Results may be clusters, rules, relations, or trends known as analytical models derived from applying analytics. Experts use predictive techniques like decision trees, neural networks, logistics regression to reveal the patterns and insights that show the relationship and invisible indication of the most persuasive variables. Several prediction models are executed to select the best performing model on the basis of model accuracy and consequences. But yet, to explore unknown though engaging and tribal patterns are challenging that can add value to data and convert into new turnout opportunities. Step 5: Optimization of Best Possible Solution Once the analytical model has been validated and approved, the analyst will apply predictive model coefficients and conclusions to drive “what-if” conditions, using the defined to optimize the best solution within the given limitations and constraints. Necessary considerations are how to serve model output in a user-friendly way, how to integrate it, how to confirm the monitoring of the analytical model accurately. An optimal solution is chosen based on the lowest error, management objectives, and identification of model coefficients that are associated with the company’s goals. Step 6: Decision Making and Estimate conclusions Analysts then would make decisions and endure action based on the conclusions derived from the model in accordance with the predefined business problems. Spam of period is accounted for the estimation of conclusion; all the favorable and opponent consequences are measured in this duration to satisfy the business needs. 61 CU IDOL SELF LEARNING MATERIAL (SLM)

Step 7: Upgrade performance system At last, the outcome of decision, action and the conclusion conducted from the model are documented and updated into the database. This helps in changing and upgrading the performance of the existing system. 4.3 METHODS OF USING ANALYTICAL TOOLS The 7 Most Useful Data Analysis Methods and Techniques  Regression analysis.  MONTE CARLO simulation.  Factor analysis.  Cohort analysis.  Cluster analysis.  Analysis with Time Series  Sentiment analysis. 4.4 PROCESS OF USING ANALYTICAL TOOLS With so much data to handle, you need to identify relevant data for your analysis to derive an accurate conclusion and make informed decisions. Data Analysis Process 1) Data Collection 2) Data processing 3) Data Analysis 4) Infer & interpret Results Business analytics is the process of inspecting the gigantic and motley data sets, commonly known as “Big Data”, to divulge the varied connections, correlations, trends, partnerships, customer behavior, statistical patterns, and other meaningful interferences that aid organizations to make better business decisions. These insights basically prompt novel possibilities for augmentation, formulate businesses to modify in market dynamics and locate organizations to resist troublesome new aspirants in the respective industries. Components of Business Analytics The components of business analytics involve; 62 CU IDOL SELF LEARNING MATERIAL (SLM)

1. Data Aggregation: Before analysis, data must be accumulated, streamlined and cleaned up to escape replication, and filtered to eliminate incomplete data. Data can be aggregated from transactional data and volunteer data. 2. Data Mining: In order to recognize and acknowledge prior unidentified data trends and patterns, models are designed through massive data. Data mining exploits various statistical techniques to obtain interpretation such as classification, regression technique, and clustering. 3. Text Mining: Data is also assembled in the form of textual information from social media websites, call center scripts, blog comments, etc, to drive powerful connections indexes that are used to develop new items most in-demand, promote user services and experiences, and analyze opponent performance. 4. Forecasting: Future events or behaviors based on previous data can be forecasted by scrutinizing processes that take place during a particular season or period. For example, retail sales for the holiday, and energy consumption for a city in summer. 5. Optimization: Organizations are continuously revealing the best possible opportunities and promising actions via designing interesting simulation techniques like to identify peak sales price and spike in-demand to scale production, major opportunities slots for sales, promotions, and new items. 6. Data Visualization: Knowledge and observation extracted from data can be conferred with extremely interactive graphs to outline exploratory data analysis, modeling results, and numerical forecasting. (read more about data visualization here) Here are the three stages of business analytics: 1. Descriptive Analytics: An application of a prime statistical technique that explains what a dataset contains, the main two techniques used are data aggregation and data mining that signify this method is used for understanding the elemental behavior and not to make predictions. 2. Predictive Analytics: An advanced statistical application or a research method to figure out predictive variables and make predictive models determining patterns and relationships among variables. 3. Prescriptive Analytics: An application of decision system, management science and operation research methodologies to conduct appropriate use of admissible resources. 4.5 DIFFERENT TYPES OF ANALYTICS Business Analytics always remains a buzz in almost each business & industry, an individual equipped with business analytics skills results in a sharp business decision, huge profit limits, adequate operations, and amused customers. The person once knows how and when to play with data, he can apply suitable analytical tools to extract influential insights from data and make imperative advantages. 63 CU IDOL SELF LEARNING MATERIAL (SLM)

Here are the major three stages of business analytics: 1. Descriptive Analytics: An application of a prime statistical technique that explains what a dataset contains, the main two techniques used are data aggregation and data mining that signify this method is very useful for understanding the elemental behavior and not to make predictions. 2. Predictive Analytics: An advanced statistical application or a research method to figure out different variables and make predictive models determining patterns and relationships among variables. 3. Prescriptive Analytics: An application of decision system, management science and operation research methodologies to conduct appropriate use of admissible resources. 4.6 INTRODUCTION OF BRANDING The Definition of Branding as per The American Marketing Association (AMA) brand is “a name, term, sign, logo, symbol or design, or a combination of them intended to identify the goods and services of one seller or group of sellers and to differentiate them from those of other sellers”. They constantly appear in the financial strategy and valuations of a company. When brands are so important, branding becomes even more important. Branding is a process which involves creating a specific name, logo, and an image of a particular product, service or company. This is done to attract customers. It is usually done through advertising with a consistent theme. Branding aims to establish a significant and differentiated presence in the market that attracts and retains loyal customers. A brand is a name, term, symbol, or other feature that distinguishes an organization or product from its rivals in the eyes of the customer. Brands are used in business, marketing, and advertising. Features of Branding Target ability Branding should be planned according to the targeted audience. No business firm can target the entire population. Business owners should identify the type of people who are buying their products and services. Research should be done on the basis of age, gender, income, the lifestyle of their customers, etc. Awareness The percentage of people who are aware of a brand is known as brand awareness. Well established companies have the benefit of a high level of brand awareness. Brand awareness can be increased with the help of advertisement on TV, radio, newspaper or social media marketing and advertising. Logos also help companies build brand awareness, as people often recognize brands by these symbols or diagrams. 64 CU IDOL SELF LEARNING MATERIAL (SLM)

Loyalty Brand loyalty is the highest achievement or apex of any company. A customer who buys the product of a particular company extensively is known as a brand loyalist. Many consumers prefer using certain brands of clothing, deodorants or tubes of toothpaste, for example. They like how these brands benefit them. Brand loyalty can be build by staying in touch with the customers, asking them for their reviews. Consistency Consistency is necessary for a brand. A brand must remain consistent. Small businesses make numerous promises in commercials and ads about their brands, and consumers expect companies to continue living up to these promises. Their products should also be effective Solved Examples for You Q: Assertion: In product concept, the focus is on innovating and improving products. Reason: In selling a concept, consumers are persuaded to buy products. a. Both Assertion and Reason are correct and Reason is the correct explanation for Assertion b. Both Assertion and Reason are correct but Reason is not the correct explanation for Assertion c. The assertion is correct but Reason is incorrect d. Both Assertion and Reason are incorrect Sol. The correct answer is the option”a”. Both Assertion and Reason are correct and Reason is the correct explanation for Assertion. In product concept, the focus is on innovating and improving products and in selling a concept, consumers are persuaded to buy products. Q: Which of the following is not a function of marketing? a. Bending the customers according to product b. Marketing planning c. Product designing and development d. Gathering and analyzing market information Sol. The correct answer is the option”a”. Marketing function types within a larger business might include performing market research, producing a marketing plan, and product development, as well as strategically overseeing advertising, promotion, distribution for sale, customer service and public relations. 4.7 TYPES OF VARIOUS BRNADS Here are the 8 types of branding you need to know: 65 CU IDOL SELF LEARNING MATERIAL (SLM)

 Personal branding.  Product branding.  Service branding.  Retail branding.  Cultural and geographic branding.  Corporate branding.  Online branding.  Offline branding. There are total Five Different Types of Branding Strategies  Corporate Name Branding. Well-known brands leverage the popularity of their own organizations names to improve brand image. ...  Individual Branding. ...  Attitude Branding. ...  Brand Extension Branding. ...  Private-Label Branding. 4.8 INTRODUCTION TO BRAND AWARENESS What Is Brand Awareness? Brand awareness is a marketing term that describes the degree of consumer recognition of a product by its name. Developing brand awareness is a major step in promoting a new product or reviving an old brand loyalty. In short, awareness of the brand should include theUSP qualities that distinguish the product from its competition. Brand Awareness Functions Goods,Products and services that has a high level of brand awareness are having poteinal of more sales. Consumers have lots of choices of choosing different brands among various brnaded products. Look for example soft drink industry. Removed from their packaging, many soft drinks are difficult to identify. The giants in the industry, Coca-Cola and Pepsi, heavily rely on brand awareness to make their brands the ones consumers brand loyalty. Over the years, these companies have employed advertising and marketing strategies that have increased brand awareness among consumers, and that has directly translated into higher sales. Special Considerations Regarding Brand Awareness As of 2019, Internet users spent approximately 38 minutes per day on Facebook, 26 minutes on Snap chat, and 27 minutes on Instagram.1 66 CU IDOL SELF LEARNING MATERIAL (SLM)

Not surprisingly, companies are now spending a great deal of brand &product promotingwith brand awareness on these platforms. This has developed to new forms of promotion in which consumers themselves generate discussions about products and services those they like and use. Targeted ads on Facebook and Instagram account for a huge majority of brand awareness tactics used, especially among Millennial and Gen Z audiences. Inevitably, consumers also share unfavorable experiences, and marketers are adapting to that reality. It has become crucial for a company to respond to negative feedback &reviews and offer anacceptable solution to the customer's problem, in real-time. But as consumers view and interact with internet, e-commerce, social media posts and updates, brand awareness will increase. For brand awareness to be most effective &productive, consumers should be able to access to the company's website seamlessly from the different social media platform. Other Ways to Create Brand Awareness Print media is not soactive it once was, but there are still consumers who read newspapers and magazines. Advertisements which was planned strategically, such as in targeted locations in the appropriate page & supplement of a leading newspaper or in specialized publications, can fetch &attract the viewer’s attention and develop brand awareness. e.g., a new company that will be trading on the forex (FX) may advertise in a magazine that focuses on different world trade and currencies in order to create brand awareness among potentials investors. Advertising in physical locations such as inside stores is also used to create brand awareness. Impulse purchase products are well-suited for in-store distribution and advertising. A company marketing a new candy bar may distribute the product at a point-of-sale (POS) location to create brand awareness. Event sponsorship is another effective way to create brand awareness. Charitable events, sporting events, and fundraisers allow for prominent visibility of a company's name and logo. For example, a health insurance company may distribute complimentary company-branded health packs at a charity marathon. This co-branding with an act of goodwill and community feeling. Awareness of the brand image,goodwill, equity has increased, and its image has been burnished. 4.9 SUMMARY  Marketing analytics is the practice of managing and studying metrics data in order to determine the ROI of marketing efforts like calls-to-action (CTAs), blog posts, channel performance, and thought leadership pieces, and to identify opportunities for improvement. 67 CU IDOL SELF LEARNING MATERIAL (SLM)

 Marketing analytics comprises the processes and technologies that enable marketers to evaluate the success of their marketing initiatives. This is accomplished by measuring performance (e.g., blogging versus social media versus channel communications). Marketing analytics uses important business metrics, such as ROI, marketing attribution and overall marketing effectiveness. In other words, it tells you how your marketing programs are really performing.  Why marketing analytics is important  Over the years, as businesses expanded into new marketing categories, new technologies were adopted to support them. Because each new technology was typically deployed in isolation, the result was a hodgepodge of disconnected data environments.  Consequently, marketers often make decisions based on data from individual channels (digital marketing and website metrics, for example), not taking into account the entire marketing picture. Social media data alone is not enough. Web analytics data alone is not enough. And tools that look at just a snapshot in time for a single channel are woefully inadequate. Marketing analytics, by contrast, considers all marketing efforts across all channels over a span of time – which is essential for sound decision making and effective, efficient program execution.  With analytics, you can answer questions like these:  How are our marketing initiatives performing today? How about in the long run? What can we do to improve them?  How do our marketing activities compare with our competitors’? Where are they spending their time and money? Are they using channels that we aren’t using?  What should we do next? Are our marketing resources properly allocated? Are we devoting time and money to the right channels? How should we prioritize our investments for next year? 4.10 KEYWORDS  Marketing analytics builds credibility. Marketers can earn the respect of their organizations by taking a professional approach to marketing metrics and analytics by using integrated technology to provide better insights for informing better business decisions. Marketers who invest in measuring and managing performance create more value, achieving 5% better returns on marketing investments and over 7% higher levels of growth performance.  Business Analytics: - Business analytics is establishing the winners and losers in most industries.  Data analyst:-In the simplest terms, a data analyst is an interpreter. 68 CU IDOL SELF LEARNING MATERIAL (SLM)

 Branding:-brand is “a name, term, sign, logo, symbol or design, or a combination of them intended to identify the goods and services of one seller or group of sellers and to differentiate them from those of other sellers”. 4.11 LEARNING ACTIVITY 1. Explain Different Models of marketing Analytic? ___________________________________________________________________________ _____________________________________________________________________ 2. Explain the process of using Analytical Tools? ___________________________________________________________________________ _____________________________________________________________________ 3. Explain different types of Brands? ___________________________________________________________________________ _____________________________________________________________________ 4.12 UNIT END QUESTIONS A. Descriptive Questions Short Questions 1. Define Marketing Analytics 2. What is importance of Marketing Analytics in Business? 3. Explain different type’s pf Analytical Models? 4. Explain different Analytical Tools 5. Explain the Branding concept 6. Identify the scope of Branding in Promotion. 7. Explain Branding features 8. Explain the different types of Brands 9. What is Family Brand? 10. What is Brand Awareness? Long Questions 1. What is scope of Marketing Analytics? 2. Explain different types of Brands with examples 3. Explain the objectives of Branding 69 CU IDOL SELF LEARNING MATERIAL (SLM)

4. What is marketing analytical Tools? 70 5. Define is the process of doing marketing Analytics? 6. Explain the concept of Brand? How is it different from goodwill? 7. Suggest Marketing Analytical Models for FMCG. 8. What do you understand by Brand Extensions? B. Multiple choice Questions 1. Branding stands for ____________ a. Term Name b. Symbol c. Logo d. All of the them 2. Good Marketing Analytics will help for ___________ a. Business Development b. Sound Business Decisions c. More Market Share d. Customer Satisfaction 3. Surf falls under ________ a. Family Brand b. Group Brand c. Individual Brand d. Private Brand 4. ____________ is very required for deciding on Business growth a. Good Pricing b. Market Analysis c. Target Market d. Analytical Reports CU IDOL SELF LEARNING MATERIAL (SLM)

5. The main objectives of branding is _____________ a. Good Quality b. Product Identity c. advertising d. Customer loyalty Answers 1-a, 2-c, 3-b, 4-d, 5b. 4.13 REFERENCES Textbooks  T1 Grigsby, M. 2115. Marketing Analytics: A practical guide to real marketing science, Its Ed., Kogan Page, India, ISBN: 978-0749474171.  T2 Winston, W. 2114.Marketing Analytics: Data Driven Technique using MS. Excel’s Ed. John Wiley & Sons, India, ISBN: 978-1118373439. Reference Books:  R1 Grigsby, M. 2116. Advanced Customer Analytics: Targeting, Valuing, Segmenting and Loyalty Techniques (Marketing Science). Ist Ed. Kogan Page. India. ISBN: 978-0749477158. Websites  https://springer.com  https://michaelpawlicki.com  https://statisticshowto.com 71 CU IDOL SELF LEARNING MATERIAL (SLM)

UNIT 5: BRAND ARCHITECTURE & BRAND EQUITY STRUCTURE 5.0 Learning Objectives 5.1 Introduction of Brand Architecture 5.2 Types of Brand Architecture 5.3 How to choose Brand Architecture 5.4 Corporate Branding 5.5 Brand Vision Architecture 5.6 Role of Brand Equity 5.7 Brand Equity Model 5.8 Summary 5.9 Summary 5.10 Keyword 5.11 Learning Activity 5.12 Unit End Questions 5.13 References 5.0 LEARNING OBJECTIVES Upon successful completion, students will have the updates &knowledge to:  How is this brand performing in master brand’s business goals?  How is this brand perceived in the market?  Is that perception aligned with the brand’s mission, vision, and core values?  Is this brand clashing with other brands in the company’s brand portfolio in terms of positioning in the market? Study the various elements of a brand and how the brand-building process contributes to the success of products or services  Explain the concept of Branding with features , types , benefits  What is the importance of brand equity and its role in measuring brand strength  Explain the how company use brand positioning to fit , match &align marketing activities and build successful brands  Explain the importance of brand development in the success of a brand  Discuss the impact of packaging & labeling in the brand-building process 72 CU IDOL SELF LEARNING MATERIAL (SLM)

 Discuss the key strategies for developing brands including brand ownership, brand and line extensions, co-branding and licensing 5.1 INTRODUCTION TO BRAND ARCHITECTURE  Brand architecture helps you define what that relationship is, and helps your brand stay organized internally. It's a road map for brand identity, development and design, and increases flexibility for product or service expansion in the future. ... And no, your brand is not too small to benefit from brand architecture.  Brand Architecture is a system that builds & developsbrands, products and services to help target market for easy access and relate to a brand. A successful Brand Architecture enables customers, dealers, sub dealers,stockists to form opinions and preferences for an entire business association of brands by interacting or learning about only one brand in that family. Determining your current brand architecture Before you make changes to your brand architecture, review your brand’s mission, vision, and values along with your business goals. The best thing you want to do is make permanent changes without re-examining why your brand exists in the first place. With that done, take a review at your current product/service mix. As you look at each sub- brand, product& service, ask yourself the following questions:  How is this brand performing in comparison of the master brand’s business goals?  How is this brand perceived in the minds of customers?  Is that perception aligned with the brand’s mission, vision, and core values?  Is this brand creating fight with other brands in the company’s brand portfolio in terms of positioning in the market? Once you’ve answered the above questions, you will have to take a long hard look at your brand portfolio. Be forewarned: you’re going to make some tough decisions. You may have to solve the problem, sell, or merge weaker brands. To use the tree analogy again, you don’t want your business to have more weighed down by dead branches. They not only appear unattractive, but they can also impact your master brand to crash under its own weight. The overarching strategy of themain brand must take precedence over your brand variants. If you undermine the goals of the parent brand with the vain hope that the success of a sub- brand will make up for it, chances are it’s going to have long-term negative effects on your overall branding efforts. Remember, there won’t be any apples if the trunk is dead. Advantages ofwell-defined brand architecture We’ve already touched on some of the benefits of having well-defined brand architecture early on. But to have a better appreciation of what strong brand architecture does for your marketimh plan &business, let’s give these benefits a closer look. 73 CU IDOL SELF LEARNING MATERIAL (SLM)

1. Clarified brand positioning A well-defined and cohesive brand portfolio paints a clear picture in your customers’ minds of what your brand stands for and what your business delivers. When each of your offerings and value propositions is differentiated in stark relief, customers will find it easier to find what they need despite the number of products you’ve released into the wild. 2. Reduced marketing expenses Consistent brand architecture not only clarifies your product offerings to your target customers, but it also generates clarity within the company itself. When it’s clear to everyone how each brand contributes to the master brand’s overarching goal, marketing teams will clearly see where to allocate their financial resources to get a better ROI 3. Stage set for more growth and expansion In brand management, the aim to review each of your brands in a position that targets a specific segment of your audience—without them getting in each other’s way. This ideal state allows your sub-brands more room to grow. That continuous growth creates gaps in the market, providing you with robust opportunities to expand your target market and increase market share. 4. Confidence among stakeholders and investors When you rally your brands in a way that brings all your brand assets into clear focus, you’re more likely to inspire confidence among your stakeholders and investors. This lets them know that their investment is being put to good use, making it easier for you to win buy-ins from key stakeholders, investors, and top-level executives. 5. More scope for cross-selling When your value propositions are crystal clear, the links between your product offerings become clear as well. This, of course, presents many opportunities for cross-selling A well- defined brand architecture means having a diverse range of differentiated products and services that complement each other, which puts you in a good position to leverage the right offering at the right time and within the relevant context. 6. Update a compelling brand story Every brand, product offering, or service tells a story. But put them all in a single brand portfolio without thought and you might get something barely unrecognizable. What you want to do is put all these seemingly disparate stories and allow them to tell one overarching story that speaks to your customers on a deeper level. Otherwise, your brand with sub -brands are only contributing to the noise, forcing consumers to direct their attention elsewhere. 74 CU IDOL SELF LEARNING MATERIAL (SLM)

5.2 TYPES OF BRAND ARCHITECTURE Here are four types of brand architecture:  House of Brands.  Brands with endorsement  Sub Brand.  Branded House. 5.3 HOW TO CHOOSE BRANDARCHITECTURE How to select a Brand Architecture 1. Clarify brand positioning, naming, and messaging. 2. Provide structure and opportunities for future products or services. 3. Add brand value by establishing clarity between companies, divisions, goods, products, and services. Most organizations operate multiple brands. Sometimes this is due to a merger or acquisition, while other times it is by design within the marketing and product R&D departments. Regardless of how the brands came to be, creating a logical structure to organize them and determine how to utilize brand assets best is a major aspect of brand management. Identifying the right brand architecture for your needs will simplify your marketing, enable more effective cross-promotion opportunities, and provide a better customer experience. The most effective brand architecture is built on factors like the awareness, preference, and experience of your customers and target audience. Regardless of your company’s size, brand architecture can enable you to:  Clarify brand positioning, naming, and messaging  Provide structure and opportunities for future products or services  Increase brand value by establishing clarity between companies, divisions, products, and services Building Your Brand Architecture  Building robust brand architecture requires time, research, and a commitment to collaboration between your key company stakeholders and your agency.  Taking the review of how effectively manage your brand will yield to your marketing efforts and result in increased brand value for internally and externally.  At Mighty Roar, we see our clients as the product and subject-mattetor experts. This allows us to leverage our experience and consumer knowledge to align the brand 75 CU IDOL SELF LEARNING MATERIAL (SLM)

experience, functions, and benefits with the target segments and personas. Let’s connect and discuss how we can help you build effective brand architecture as well. 5.4 CORPORTE BRANDING A corporate brand serves to describe an organization as a whole. Its aim is to create a consistent corporate image through the interplay of corporate strategy, business activity, and brand stylistics. ... It is irrelevant whether the company is a single brand company (e.g. Apple) or a multi brand company (e.g. Unilever). Corporate design makes the corporate identity visible  Logo. The image or symbol that people use to optimally identify a brand at first glance, even if the name cannot be seen. ...  Typography. ...  Color scheme. ...  Imagery style. ...  Design grid. ...  Icons. Corporate branding is a vital aspect of a company's overall marketing strategy. Branding consists of a number of tactics, actions and guidelines that establish the identity and unique values of a particular company and its products. However, a corporate brand transcends what many people may think of as branding that simply uses a logo, a tagline or a particular color scheme. Successful corporate brands also reflect the company's core values, personality and mission in every point of contact a company has with its prospective, existing and past customers. Marketing and branding experts often formulate their preferred definitions of corporate branding in varying ways. Sometimes the differences between popular definitions are slight, but on occasion they can be quite significant. One working definition from Business Dictionary.com is: “The process involved in creating a unique name and image for a product in the consumers' mind, mainly through advertising campaigns with a consistent theme.” But no matter how you define the phrase, the objective of corporate branding is differentiation. In other words, the overarching purpose of a branding strategy is always to help distinguish the company or product in question from other potential solutions and direct competitors in the marketplace. 76 CU IDOL SELF LEARNING MATERIAL (SLM)

5.5 BRAND VISION ARCHIECTURE Brand Architecture is a system that organizes brands, products and services to help an audience access and relate to a brand. A successful Brand Architecture enables consumers to form opinions and preferences for an entire family of brands by interacting or learning about only one brand in that family. Brand architecture refers to the organizational structure of brands, products, and services within a company. ... The purpose of brand architecture, however, goes beyond putting your brand extensions in the right places. It's about the consolidation of assets in a way that clearly maps out your brand's intentions. Brand architecture is an organized structure of the company’s portfolio of brands, sub-brands, and other offerings. In simple terms – It shows how the brands, sub-brands and other offerings of the company are organized and how they relate to each other. Fig. 5.1 Brand architecture is just like the family tree you used to create for your school projects. You specify the master brand (the grandparent) and move downwards by drawing its relations with other brands and their interpersonal relations as well. Everyone on that tree is related, but everyone is still unique. Components of Brand Architecture Brand architecture includes a master brand, brand extensions and sub-brands (and even sub- sub-brands). Here’s a brief explanation of what these brand architecture components are: Master Brand – it’s the top-level corporate brand, also called the parent brand, which encapsulates all the offerings of the company. Usually, the parent company’s brand name forms the master brand. 77 CU IDOL SELF LEARNING MATERIAL (SLM)

Sub-brand – a sub-brand is a product or service brand which is affiliated with the parent brand but has its own brand name and identity. Brand extension – brand extension refers to the process of using an established brand name on new products to increase sales. Fig. 5.2 Importance of Brand Architecture Brand architecture is how the brands within an organisation are related and how they interact with each other. It is created by keeping the target market’s perspective in mind. Brands need to create brand architecture as it helps them to –  Stay organised internally – looking at the brand with the eyes of the customers helps to find out the loopholes in organisation structure and the communication strategies and helps the brand to stay organized internally.  Manage perception – Developing brand architecture makes it easier to manage the outside perception about the brand, its offerings, and their relations with each other.  Create Synergy – Having an organised brand architecture creates a synergy among the child brands and the parent brand and help the organisation deliver against a larger brand promise. The Benefits of a Strong Brand Architecture As a general rule, if a brand has more than one offerings which have their own identity, developing a brand architecture will have numerous benefits. Following is the list of such benefits of brand architecture –  Clarity in the marketplace – Having a well-structured brand architecture increases the clarity of brands offered and their relation with each other. This not only clears 78 CU IDOL SELF LEARNING MATERIAL (SLM)

many doubts of the internal audience but it also helps in making better decisions to inform the marketplace about what the company’s communication strategy originally lacked.  Synergy among brands – Brand architecture lists the relationships between different sub-brands and the master brands which eventually creates a synergy among the offerings and help the company communicate about combined solutions and how these brands complement each other (cross-selling).  Target specific customer segments – Brand architecture effectively segment the target market and makes it clear what offering serves which segment. This often helps the company in making effective marketing strategies for brands which seem similar.  Clarity in positioning and communication – It’s easier to develop positioning and communication strategies for each sub-brand and brand extension if the company has a well-structured brand architecture.  Enhance consumer awareness – Brand architecture requires the company to look with the eyes of the customers. During the brand architecture process, the problems in the present marketing and communication strategies can be pointed out and customers can be made aware of the offerings they didn’t know were offered by their favourable brand.  Build & enhance brand equity – Brand architecture also helps the company make strategies to build and enhance the brand equity of its sub-brands. It also lets the organisation lend its corporate brand equity to its offerings. 5.6 ROLE OF BRAND EQUITY Role of Brand Equity in Marketing Brand equity is very critical for the success of a company. When a company enjoys brand equity, it means that it has successfully differentiated itself from its competition by offering excellent product quality, customer service and also rolled out an attractive marketing campaign. Brand Equity is the value of a brand, or can be summarized as the perceived value by consumers over other products. The equity of your brand is important because, if your brand has positive brand equity, you can charge more for your products and services than the generic products or other competitors. Brand Equity is an essential component of your business’ identity. Just like the equity accumulated in your home has monetary value, the equity of your brand is valuable too. It determines many aspects of your business, including profitability. So what is brand equity? Brand Equity is the value of a brand, or can be summarized as the perceived value by consumers over other products. The equity of your brand is important because, if your brand has positive brand equity, you can charge more for your products and services than the 79 CU IDOL SELF LEARNING MATERIAL (SLM)

generic products or other competitors. Conversely, if your brand has negative brand equity, consumers will more inclined to pay more for generic products or products from your competition. Brand Equity breaks down into several components:  First is the tangible and intangible value of the brand. The tangible value of a brand includes revenue and higher pricing. Intangible value includes awareness of the brand and goodwill associated with the brand  The second component of brand equity is the monetary effects. The business itself, products, and services will all benefit positively or negatively based on brand equity. This is one of the primary reasons business like Coke, Pepsi, IBM and Apple, do brand updates to avoid looking stale or out of date  The third part is the perception your brand creates for quality. Again, higher quality translates to pricing and lasting value. Apple is a great example. If you have ever been to a crowded Apple store, it appears that they are giving away their products but in fact, Apple products are considerably more expensive that their competitors but their reputation for quality and ease of operation is well known.  Finally, the consumer is the most important aspect of brand equity, because consumers determine the value of a brand. Consumer loyalty is how brands are built and need to be a focus of your overall marketing strategy 5.7 BUILDING BRAND EQUITY Brand equity is the value of your brand for your company. It's based on the idea that a recognised brand that's firmly established and reputable is more successful than a generic equivalent. It's based on customer perception: customers will tend to buy a product they recognise and trust. Since brand equity is rooted in customer experience and perception, building it is much like building human relationships. Communication is key from the first initial encounter and throughout every touch point thereafter. That’s one reason brands like Amazon, Netflix, and Dove rank so highly among consumers. But you don’t need the resources of an international corporation to increase brand equity. The key is to simply listen to your customers, engage them no matter where they are on the buyer journey, and provide an incomparable experience — and watch your equity grow. Here are 3 ways to help build your brand equity  Invest in content marketing. Good content marketing should seek to educate the consumer, not just be a sales pitch for your product. ...  Cultivate relationships with industry bloggers. ...  Build an online community. 80 CU IDOL SELF LEARNING MATERIAL (SLM)

5.8 SUMMARY What Is Brand Awareness? Brand awareness is a marketing term that describes the degree of consumer recognition of a product by its name. Creating brand awareness is a key step in promoting a new product or reviving an older brand. Ideally, awareness of the brand may include the qualities that distinguish the product from its competition. How Brand Awareness Works Products and services that maintain a high level of brand awareness are likely to generate more sales. Consumers confronted with choices are simply more likely to buy a name brand product than an unfamiliar one. Consider the soft drink industry. Removed from their packaging, many soft drinks are indistinguishable. The giants in the industry, Coca-Cola and Pepsi, rely on brand awareness to make their brands the ones consumers reach for. Over the years, these companies have employed advertising and marketing strategies that have increased brand awareness among consumers, and that has directly translated into higher sales. This higher rate of brand awareness for dominant brands in a category can serve as an economic moat that prevents competitors from gaining additional market share. Special Considerations Regarding Brand Awareness As of 2019, Internet users spent approximately 38 minutes per day on Facebook, 26 minutes on Snap chat, and 27 minutes on Instagram. Not surprisingly, companies are now spending a great deal of energy promoting brand awareness on these platforms. This has led to new forms of promotion in which consumers themselves generate discussions about products and services that they like and use. Targeted ads on Facebook and Instagram account for a large majority of brand awareness tactics used, especially among Millennial and Gen Z audiences. Inevitably, consumers also share unfavorable experiences, and marketers are adapting to that reality. It has become crucial for a company to respond to negative reviews and offer a solution to the customer's problem, in real-time. But as consumers view and interact with social media posts and updates, brand awareness will increase. For brand awareness to be most productive, consumers should be able to connect to the company's website seamlessly from the social media platform. Other Ways to Create Brand Awareness Print media is not the force it once was, but there are still consumers who read newspapers and magazines. Advertisements placed strategically, such as in targeted locations in the 81 CU IDOL SELF LEARNING MATERIAL (SLM)

appropriate section of a newspaper or in specialized publications, can attract the viewer’s attention and create brand awareness. For example, a new company that will be trading on the forex (FX) may advertise in a magazine that focuses on global trade and currencies in order to create brand awareness among investors. Advertising in physical locations such as inside stores is also used to create brand awareness. Impulse purchase products are well-suited for in-store distribution and advertising. A company marketing a new candy bar may distribute the product at a point-of-sale (POS) location to create brand awareness. Event sponsorship is another effective way to create brand awareness. Charitable events, sporting events, and fundraisers allow for prominent visibility of a company's name and logo. For example, a health insurance company may distribute complimentary company-branded health packs at a charity marathon. This associates the brand with an act of goodwill and community feeling. Awareness of the brand has increased, and its image has been burnished. 5.9 SUMMARY  Brand architecture is the organizational structure of a company’s portfolio of brands, sub-brands, products, and/or services.  Effective brand architecture includes an integrated system of names, symbols, colours, and visual vocabulary informed directly by the consumer thought process.  This is because key to brand architecture is your customer’s mental organization— how they conceptualize your business and its portfolio of offerings, and how each offering satisfies their needs.  Brand architecture defines both the breadth and depth of your brand.  Not only does it provide clarity around the organization of your offerings and how they are understood by consumers, it also influences customer behaviour by maximizing the transfer of brand equity between your brands and sub-brands.  If a customer has an existing relationship or positive association with a master brand, for example, they are much more likely to try one of its sub-brands.  Brand architecture is ultimately about managing perception.  Externally, it helps your customers and other stakeholders make sense of a multifaceted organization.  Internally, it can serve as a valuable tool for optimizing marketing efficiency and Brand equity refers to a value premium that a company generates from a product with a recognizable name when compared to a generic equivalent. Companies can create 82 CU IDOL SELF LEARNING MATERIAL (SLM)

brand equity for their products by making them memorable, easily recognizable, and superior in quality and reliability,performance. But the benefits don’t stop there. 5.10 KEYWORDS  Brand Architecture: - isa system that builds & developsbrands, products and services to help target market for easy access and relate to a brand.  A corporate brand: -serves to describe an organization as a whole  Brand Equity: - is the value of a brand, or can be summarized as the perceived value by consumers over other products  Customer perception: - customers will tend to buy a product they recognise and trust.  Brand Positioning: -positioning of the brand as per customer segment.  Brand Architecture is a process of organizing brands, products and services to help customers& all middlemen to access and relate to a brand. A successful Brand Architecture helps consumers to form opinions and preferences to buy , recommend & build brand equity for an entire family of brands by interacting or learning about only one brand in that family.  Brand equity refers to a value additional price, extra premium that a company generates from a product with a reputed name & goodwill when compared to another brands or generic equivalent. Companies can create&maintain brand equity for their products by making them memorable, easily recognizable, and superior in quality perception and reliability. 5.11 LEARNING ACTIVITY 1. Define concept of Brand Architecture ___________________________________________________________________________ _____________________________________________________________________ 2. Explain is the process of Brand Architecture? ___________________________________________________________________________ _____________________________________________________________________ 3. Define the concept of Brand Equity? ___________________________________________________________________________ _________________________________________________________________ 5.12 UNIT END QUESTIONS A. Descriptive Questions 83 CU IDOL SELF LEARNING MATERIAL (SLM)

Short Questions 84 1. What is the role of Branding in Marketing? 2. Define Brand Architecture? 3. Explain different types branding? 4. What is the process of Brand Architecture? 5. Explain the process of Brand Architecture. 6. Identify the importance of Brand Equity. 7. Explain features of Brand Long Questions 1. What is role of Brand Architecture in Marketing? 2. Explain the importance of Brand Equity. 3. Explain the concept of Brand Equity. 4. Branding Helps for Advertising, is it true? 5. What is the step of developing Brand Equity? B. Multiple choice Questions 1. Branding Architecture is a feature of ____________ a. Packaging b. Product Identity c. Logo d. All of the these 2. Brandshould be ___________ a. Short & easy to remember b. Identifying colour of product c. More sampling d. Difficult to remember 3. Lifebuoy Gold is an type of ________ a. Family Brand b. Group Brand CU IDOL SELF LEARNING MATERIAL (SLM)

c. Brand Extension d. Private Brand 4. ____________ is very required for deciding on Brand Equity a. Sales Volume b. Market Report c. Cost sheet d. Analytical Reports of a Product 5. The main objectives of branding loyalty is _____________ a. Create goodwill b. After Sales Service c. advertising d. Customer loyalty Answers 1-b, 2-a, 3-c, 4-d, 5-d. 5.13 REFERENCES Textbooks  T1 Grigsby, M. 2115. Marketing Analytics: A practical guide to real marketing science, Its Ed., Kogan Page, India, ISBN: 978-0749474171.  T2 Winston, W. 2114.Marketing Analytics: Data Driven Technique using MS. Excel’s Ed. John Wiley & Sons, India, ISBN: 978-1118373439. Reference Books:  R1 Grigsby, M. 2116. Advanced Customer Analytics: Targeting, Valuing, Segmenting and Loyalty Techniques (Marketing Science). Ist Ed. Kogan Page. India. ISBN: 978-0749477158. Websites  https://springer.com  https://michaelpawlicki.com 85 CU IDOL SELF LEARNING MATERIAL (SLM)

 https://statisticshowto.com  https://stattrek.com  https://slideshare.com 86 CU IDOL SELF LEARNING MATERIAL (SLM)

UNIT 6: CUSTOMER LIFETIME VALUE, CALCULATING CUSTOMER VALUE STRUCTURE 6.0 Learning Objectives 6.1 Introduction of Customer Life Time Value (CLTV) 6.2 Important of Customer Value 6.3 Elements of Customer Value 6.4 Advantages of Customer Value 6.5 Importance of Customer Value 6.6 CLV Model 6.7 CLV Formula 6.8 Summary 6.9 Key Notes 6.10 Learning Activity 6.11 Unit End Questions 6.12 References 6.0 LEARNING OBJECTIVES Upon successful completion, students will have the updates:  CLV will help you find balance in terms of short-term and long-term marketing goals and demonstrate a better understanding of financial return on your investments. CLV encourages better decision making by teaching marketers to spend less time acquiring customers with lower value.  Customer lifetime value is an asset to a business of a customer for the whole period of their relationship. It's an important factor as it costs less to keep existing customers than it does to acquire new ones, so increasing the value of your existing customers is a big way to drive growth.  CLV is at the strong in terms of financiallyassets of ecommerce businesses that can grow consistently. CLV is long-term process with repeating the benefits of better ROI and better customer satisfaction. It is an entirely different strategy than going for short-term sales. The problem is acquisition-based growth needs constant marketing spending. 87 CU IDOL SELF LEARNING MATERIAL (SLM)

Customer lifetime value helps to keep customer retention, satisfaction and brand loyalty. It is the financial advantages of having repeat customers. Ecommerce businesses with high CLV helps to grow to more & more independently of ad costs and enjoy a stable cash flow. 6.1 INTRODUCTION OF CUSTOMER LIFE TIME VALUE (CLTV) Customer lifetime value is the total worth to a business of a customer over the whole period of their relationship. It's an important metric as it costs less to keep existing customers than it does to acquire new ones, so increasing the value of your existing customers is a great way to drive growth. Customer lifetime value (CLV) is one of the key stats likely to be tracked as part of a customer experience program. CLV is a measurement of how valuable a customer is to your company with an unlimited time span as opposed to just the first purchase. This metric helps you understand a reasonable cost per acquisition. CLV is the total worth to a business of a customer over the whole period of their relationship. It’s an important metric as it costs less to keep existing customers than it does to acquire new ones, so increasing the value of your existing customers is a great way to drive growth. If the CLV of an average coffee shop customer is $1,000 and it costs more than $1,000 to acquire a new customer (advertising, marketing, offers, etc.) the coffee chain could be losing money unless it pares back its acquisition costs. Knowing the CLV helps businesses develop strategies to acquire new customers and retain existing ones while maintaining profit margins. CLV is distinct from the Net Promoter Score (NPS) that measures customer loyalty, and CSAT that measures customer satisfaction because it is tangibly linked to revenue rather than a somewhat intangible promise of loyalty and satisfaction. CLV can be measured in the following way: 1. Identify the touch points where the customer creates the value 2. Integrate records to create the customer journey 3. Measure revenue at each touch point 4. Add together over the lifetime of that customer At its simplest, the formula for measuring CLV is: Customer revenue minus the costs of acquiring and serving the customer = CLV 88 CU IDOL SELF LEARNING MATERIAL (SLM)

6.2 IMPORTANCE OF CUSTOMER VALUE Customer lifetime value is important because, the higher the number, the greater the profits. You'll always have to spend money to acquire new customers and to retain existing ones, but the former costs five times as much. When you know your customer lifetime value, you can improve it. The Importance of Customer Lifetime Value Your customers aren’t just worth the amount of money they spend on your business today. They have future value if you’re able to retain them as customers. In the example above, we took advertising into account. It cost us $5 to attract one customer who wound up spending more than $700 in our fictional e-commerce store. But what if we sold those 70 pairs of socks to 70 different customers? We’d have to spend $5 per customer to acquire them, which would reduce our profits considerably. Plus, our brand loyalty would take a huge hit. Customer lifetime value is important because, the higher the number, the greater the profits. You’ll always have to spend money to acquire new customers and to retain existing ones, but the former costs five times as much. When you know your customer lifetime value, you can improve it. Work on retaining your existing customers through email marketing, SMS marketing, social media marketing, and more. You still want new customers, but don’t forget about the old ones. This average customer lifetime value formula requires several data points:  Average monthly transactions  Average amount spent per transaction  Average number of months your customers remain loyal  Average gross margin Multiplying these numbers together will give you the predictive CLV. Advantages of CLV:  management of customer relationship as an asset  monitoring the impact of management strategies and marketing investments on the value of customer assets, e.g.: Marketing Mix Modeling simulators can use a multi- year CLV model to show the true value (versus acquisition cost) of an additional customer, reduced churn rate, product up-sell  determination of the optimal level of investments in marketing and sales activities  encourages marketers to focus on the long-term value of customers instead of investing resources in acquiring \"cheap\" customers with low total revenue value 89 CU IDOL SELF LEARNING MATERIAL (SLM)

 implementation of sensitivity analysis in order to determinate getting impact by spending extra money on each customer  optimal allocation of limited resources for ongoing marketing activities in order to achieve a maximum return  a good basis for selecting customers and for decision making regarding customer specific communication strategies  a natural decision criterion to use in automation of customer relationship management systems  Measurement of customer loyalty (proportion of purchase, probability of purchase and repurchase, purchase frequency and sequence etc.)[ 6.3 ELEMENTS OF CUSTOMER VALUE There are four elements to customer value in logistics, which are: cost, quality, service, and time. Let's look at each element in turn: Quality stands for the product features to the functionality, good performance and technical specification of the offered product, which meets customer requirements. Far too many marketers overlook the fact that cultivating a customer base means tracking the behaviors of those customers for … well, forever. The time invested in building a relationship with a given customer should optimize all phases of that customer’s life to maximize value and ultimately generate revenue. Translated, that relationship doesn’t just end. It takes a business very long time to ensure your customers stay your customers& consumers. A Sr. adviser Debbie McGee suggests ameasuring customer value in terms of four unique elements: 1) Received value: profits already received and used as points of comparison (for measuring period-to-period performance, for instance) 2) Projected value: the expected profit received from selling existing products plus the expected revenue from, among other things, upsells and cross-sells 3) Lifetime value: the realized value plus the projected value 4) Potential value: lifetime value plus future profits to be generated by products that have yet to be marketed. Of course, there is no formula to gauge customer value precisely, but looking at specific test results and business models will reflect returns on individual promotions. “It is important that you make sure product marketing strategies are focusing on the right &highest value customers for that product,” McGee says. Understanding what your customers truly value helps you differentiate your offering and helps you grow, gain share, and price at a premium. Elements of Value identify what matters most and helps you deliver it effectively. 90 CU IDOL SELF LEARNING MATERIAL (SLM)

6.4 ADVANTAGES OF CUSTOMER VALUE The 5 Benefits of Customer Lifetime Value  Save Money. It's cheaper to retain old customers than find new ones. ...  Better Marketing. Customer Lifetime Value leads to marketing that focuses on your customer. ...  Encourage Brand Loyalty.  Gain More Sales. You've already warmed up your customer from all that regular contact. ... Customer lifetime value is a primary metric for understanding your customers. It's a prediction of the value your relationship with a customer can bring to your business. This approach allows organizations to demonstrate the future value they can generate from their marketing initiatives. The Benefits of Customer Lifetime Value When you emphasize customer lifetime value, you can cultivate a base of loyal customers to ensure steady returns on a regular basis. This strategy will secure your market presence for decades to come. Cultivating customer lifetime value:  Is Cost-Effective: Convincing a new customer to make a purchase is an expensive process. It costs advertising dollars and requires sales people and sometimes even the collaboration of several different teams. By simply keeping the customers you already have, you avoid paying these expenses a second time.  Fosters Brand Loyalty: Customers with high customer lifetime value have proven their loyalty, and loyal customers are likely to spread good word-of-mouth about your brand and evangelize online. This provides unsolicited testimonials, which potential customers see as highly credible, and improves your brand reputation.  Saves Time: Knowing each customer’s customer lifetime value helps you identify where your customer success team’s efforts are most likely to pay off and who would benefit from an upsell. High customer lifetime value clients already have a track record of bringing in strong revenue, so go straight to this group when looking for growth areas.  Predicts Churn: Customers with high lifetime value are less likely to churn. They have a track record of success with your product and aren’t likely to leave unless something changes dramatically. 91 CU IDOL SELF LEARNING MATERIAL (SLM)

Of course, the higher your customers’ lifetime value is, the more your company will profit. So, the more work you put into raising customer lifetime value, the more revenue you’re likely to bring in. If you want your business to last, you need to prioritize customer lifetime value, too. To succeed in today’s customer-centered economy; you can’t simply focus on attracting new customers. After all, there are plenty of competitors to choose from, and customer expectations are higher than ever. Instead, view each customer in terms of their lifetime value, meaning the total amount they may spend long-term if you retain them. For companies willing to evolve, the benefits of customer lifetime value are many. By cultivating customers who have a high lifetime value, you can ensure stable revenue for years to come. But first, you have to know how to retain them. 6.5 IMPORTNACE OF CUSTOMER VALUE TO YOUR BUSINESS Creating Customer Value increases customer satisfaction and the customer experience. ... Creating Customer Value (better benefits versus price) increases loyalty, market share, and price, reduces errors and increases efficiency. Higher market share and better efficiency leads to higher profits. Product and price are inseparable in the sales equation; however, selling on these attributes alone will not support longer-term sales growth. Prospects and customers are motivated to seek value. A well supported sales team is able to generate consistent experiences of value. Here are five reasons why customer value is the most important aspect in acquiring and developing profitable customer relationships. 1. Prospective Customers Are Not Looking for Your Products or Services Prospective customers are not specifically on the lookout for your products or services. If, in their search for answers to their questions or issues you are fortunate enough to be engaged with them you should try to be on the same wavelength. And that perspective is how you can help them with insights, perspectives or solutions to their specific needs. In most cases, prospects believe that they know what they are looking for. The quickly become impatient with a good consultive discovery process and try to compress the discussion to get the information that they are after. This makes it difficult to have a meaningful discussion where you can understand their situation so that you are able to customize a solution of real value for their consideration. The sales rep needs to be armed with an approach to reframe the prospects framework so that they can become a more trusted advisor and can more easily uncover the insights required to ultimately present a competitive solution. Be patient. Respond to questions. Don't talk about your solutions too early. Have specific challenges ready at hand and plan to introduce opportunities to access valuable assets, 92 CU IDOL SELF LEARNING MATERIAL (SLM)

insights and knowledge. This will create the trust that is needed to uncover insights to be leveraged in a meaningful relationship sales engagement. 2. Customer Value Means Different Things to Different Customers When you are selling a product, the basic utility of that product does not dramatically change from customer to customer. It may be customized with add-ons, but the basic functionality remains the same. The customer value that you can deliver, on the other hand, may vary dramatically from one situation to another. For one customer, the value may be in the immediate delivery of a solution to a pressing need; for another, the value may be its returns over the long-term. Still other customers will interpret value in other ways. In this sense, customer value is more important than the product because value can be customized as necessary wherever there is a potential fit. 3. Uncovering Customer Needs Lets You Align Customer Value it is best practice to make every customer feel valued, but some customers may be more valuable than others – lifelong customers and customers who not only provide repeat business but high value referrals and references as well. Consider further that a product may be useful to almost any organization within a marketplace, but the true customer value behind the product may only support major sales for certain market segments. Understanding this allows targeted selling based on integral value points rather than product features and benefits, and leads to more high value sales from motivated prospects. 4. Customer Value Has a Timeframe that Creates Urgency If a prospect looks at a product as a potential solution without understanding the product’s value, it is all too easy for that prospect to delay buying; after all, a product will still be there when he or she is ready to buy. Customer value, on the other hand, creates a sense of urgency that moves sales forward by creating timeframes for key benefits to the prospect such as increased efficiency, lower downtime, higher production, and many more value points that have well-defined monetary results. This allows sales people to close more sales faster while benefiting the customer. 5. Sales People Are Responsible for Building Customer Value When a prospect looks at a product without the benefit of sales guidance, he or she will not be likely to pick out the customer value alone. Customer value is the result of a conversation between a sales person and a customer, wherein the sales person is able to determine the customer’s needs and goals and explain how a given product will create value by satisfying those requirements while generating benefits for the customer. Through a value-oriented sales person customer value can be customized and presented in ways that the product cannot, which leads to stronger sales relationships and more sales overall. I invite you to connect with me to discuss this important aspect and exploring how we can improve your sales performance. 93 CU IDOL SELF LEARNING MATERIAL (SLM)

Customer value is the phenomenon that keeps companies from teetering over the brink into bankruptcy and, instead, maintaining long-term relationships with existing customers and earning repeat business by providing an excellent customer experience. Customer value comes down to identifying what matters most to customers and delivering it, but this is often easier said than done. When business leaders fail to step up to the task of focusing on customer value, they find their organisations in a state of chaos, losing profits and market share at an accelerated rate as their clients find more favourable offerings. Read on to learn more about customer value, its importance within any growing organisation and how your company can enhance the value it offers those it serves. 6.6 CLV MODEL In marketing, customer lifetime value (CLV or often CLTV), lifetime customer value (LCV), or life-time value (LTV) is a prognostication of the net profit contributed to the whole future relationship with a customer. ... Early adopters of customer lifetime value models in the 1990s include Edge Consulting and Brand Science. Definition Customer Lifetime Value (CLV) is defined as the net profitability associated with a customer’s lifecycle with the company. Simply put, CLV is a projection for what each customer is worth to a business. It is important to note that CLV is a prediction – and the accuracy of this prediction is dependent on 2 primary factors: 1. Their current behavior and purchase patterns 2. Their projected behavior and patterns The projection, in turn, depends on your company’s technology stack and predictive analytics capabilities. The stronger your analytical powerhouse, the more accurate is your CLV. Unless you want to drive blind-folded, customer lifetime value is a critical metric for any organization’s capacity to remain or become profitable. This is because CLV enables businesses to plan their customer acquisition and retention strategy in such a way that the cost of acquiring/retaining a customer is less than the lifetime monetary value of the customer. It shows a comparison between the customer’s revenue value and the predicted customer lifespan and helps understand a reasonable cost per acquisition. CLV, however, is different from customer profitability (CP). CLV helps calculate the expected spends and individualized value of each customer; whereas CP is the analysis of just the past spends and does not attempt to predict future spends. 94 CU IDOL SELF LEARNING MATERIAL (SLM)

Knowing the CLV is imperative for the business to help strategize the business in a way that retains existing customers and acquire new ones. It is a primary metric to gauge what is working and what is not. For example, Panera Bread operates over 2,000 physical stores across the United States. It is important to know the sort of customers they are drawing, repeat customers as well as the customers they are losing to larger chains like Starbucks. CLV helps them understand the value of each customer taking into consideration overall factors like average spending, brand retention rate, etc. In the above example, calculating the CLV would help Panera to make timely tweaks to service levels, new product launches, gamified programs and overall increasing the satisfaction at the point of experience. This means that there is a marked difference in the way that each department is expected to operate. This is how different departments in an organization are impacted by calculating CLV:  Marketing: Are the current marketing spends and channels justified and relevant to bring in new customers as well as offer enough for existing customers? Does it help to advertise at a higher cost per acquisition if the lifetime cost supersedes the ROI on the current spend?  Sales: Is there a mechanism to tailor-make sales programs to be inbound or outbound centric depending on the lifetime value of each customer? How much more sales input and support would be required to increase the value of each customer?  Product/Service: Is the product/service relevant to existing customers and is the purchasing decision-making process reducing with the current product/service line? Is there a need to make tweaks to exceed customer expectations and in turn increase the value of the customer?  Customer Service: Do there need to be time and resources spent to manage customer satisfaction and customer experience? Will an increase in efforts for customer service increase the lifetime value of each customer? 6.7 CLV FORMULA This means, that while CLV is just one number, calculated by a few people in the company, its implications trickle down as guidelines for the whole organization to function as one. Much like how it takes a whole company to deliver on customer experience (CX) goals, the CLV is a reminder to every department – to not spend more than what can be reaped! For example, did you know that Facebook turned profitable in 2009? This means, from 2004 to 2008, for 4 years, the company focused on user acquisition because they knew that once they have enough users advertising on their platform, the net CLV for each customer will be much higher in the long term. Without this predictive understanding, Facebook would not have inclined towards investing in customer/user acquisition at a loss for 4 years. This 95 CU IDOL SELF LEARNING MATERIAL (SLM)

strategy was later followed by WhatsApp, Twitter, and Amazon and is the mainstay of well- funded startups. Why should you care about Customer Lifetime Value (CLV)? The 4 Key Benefits Fig. 6.1 Customer lifetime value was a term coined in 1988 and from the early 1990s; it has formed the ethos and DNA of many mature organizations. For example, CROCS used CLV to understand the customers with the highest churn and the customers that weren’t price- sensitive, to promote to them differently. This lead to a 10x revenue gain for high churn customers and a 2x revenue gain for loyal customers. Win-win and how! Whilst there are different metrics you should care about CLV and historically there have been multiple examples, these 4 key benefits apply to businesses no matter the organization type and size. 1. Tailor-made customer programs 96 CU IDOL SELF LEARNING MATERIAL (SLM)

If marketing and sales campaigns are developed invariant of the market demographics, customer base and without consideration for microeconomic financial milestones, the campaign would invariably end up being a dud. However, if the CLV is calculated and then the customer base is segmented for various marketing and sales programs, there is a higher chance of success of converting customers into sticky customers and brand advocates. For example, Abercrombie & Fitch has tailor-made programs for the heavy spenders as well as casual shoppers. This helps the brand to maintain a loyal base of shoppers as well as increase spends from casual shoppers that aids towards a higher dollar spend. 2. Appropriate spends & higher ROI CLV helps to identify the type of customers, the avenues where they convert as well as what appeals to them. This means that there could be localized campaigns, demographic-based campaigns, sales vs marketing campaigns and even in marketing campaigns, online vs offline marketing. It could also be a mix of the above but it helps derive the best avenues to spend and the programs that derive the highest ROI for the brand. For example, Starbucks provides a gamified platform for repeat customers and has full- blown programs to entice new customers with the promise of a better “experience” including the coffee roasts, quality merchandise, healthy bites and free Wi-Fi. 3. Increased customer retention value An important metric that CLV helps identify is the sticky and most loyal customers. It makes sense to identify and nurture such customer relationships because a brand can then co-create with them as well as they act as brand advocates. For example, Amazon Prime is a curated platform to make life easy for customers as well as provide entertainment experiences in the form of leisure items. The ethos of the brand is to create a loyal customer base and build on top of that so that these customers are advocates for the brand because of heightened experiences. 4. Reduced customer churn Where CLV helps the most is to retain existing customers and reduce the spending to bring on new customers. By identifying gaps in service/product delivery and optimal channels of customer liaison, CLV is a powerful tool to reduce customer churn. For example, Kimberley-Clark along with Nielsen identified that around $1000 is spent on diapers and baby wipes in the first two-and-a-half years of the baby’s life. This helped them to identify multiple touch points to deliver these products and attractive promotions with ease of access so that parents didn’t buy competitor products. All in all, CLV is a powerful tool that brands need to use to be customer-vigilant and profitable in thein general, there are two broad approaches to modeling the CLV problem: Historical Approach: 97 CU IDOL SELF LEARNING MATERIAL (SLM)

1. Aggregate Model — calculating the CLV by using the average revenue per customer based on past transactions. This method gives us a single value for the CLV. 2. Cohort Model — grouping the customers into different cohorts based on the transaction date, etc., and calculates the average revenue per cohort. This method gives CLV value for each cohort. Predictive Approach: 1. Machine Learning Model — using regression techniques to fit on past data to predict the CLV. 2. Probabilistic Model — it tries to fit a probability distribution to the data and estimates the future count of transactions and monetary value for each transaction. In this article, I will walk you through all the above-mentioned types except the “Machine Learning Model” (which, by the way, is modeling the CLV as a normal regression/classification modeling problem). This is going to be a long article, so brace you up and get ready. But, I can assure you that after reading this article, you will have a good understanding of the topic and various approaches to calculate Customer Lifetime Value. 6.8 SUMMARY  Customer lifetime value is the total worth to a business of a customer over the whole period of their relationship. It's an important metric as it costs less to keep existing customers than it does to acquire new ones, so increasing the value of your existing customers is a great way to drive growth. Top three benefits of customer lifetime value analysis  Know where each customer stands and market appropriately  The first step is to group customers based on their profitability and retention proclivity. This will give you a fair idea of where your customers stand. Although the whole idea of CLV measurement is to identify the star customers, it would be a huge mistake to ignore the customers on the lower rung of the ladder. The aim is to identify why the top customers are loyal and use those insights to capture and retain the mid- level and low-level customers. CLV can help marketers define customer-specific communication strategy with better segmentation of customers. Just by identifying the low and mid-level customers, targeted marketing strategies can be defined to turn them into long-term loyal ones. And similarly, the top cream of customers can be rewarded for their loyalty and enticed with the right offers. Another way to utilize CLV findings is to identify the past top customers that are now inactive so that you can build strategies to reactivate or remarket to those valuable customers. 98 CU IDOL SELF LEARNING MATERIAL (SLM)

Know the upper limit of spending on acquiring new customers  The advantage of CLV is that it gives a dollar figure for each customer. You can predict how much each customer will cost you and how much profit they might generate. This will also provide you a clear picture of how much money you can spend on acquiring, retaining and serving those customers. CLV calculations can help you allocate the right budgets for different types of customers in the value chain. The idea is not to close the eyes to the low-level customers, but to allot the right amount of money for marketing activities aimed at those customers. Another way companies use CLV numbers is for reducing customer deflection. For instance, it might not make sense for companies to invest in low-value customers that are about to deflect, but it might make sense to offer some incentive to high-value customers who are about to deflect.  Moreover, CLV calculations will also help you identify which channels of marketing are bringing in the best value customers. This will enable you to invest more on channels that work and reduce your spending on the channels that are bringing low- value customers. Forecast future revenues  Customer lifetime value calculations can help you focus on the long-term profits instead of acquiring cheap customers today. The “lifetime” of a customer varies for different businesses. For instance, a financial services company may have a lifetime of decades, but on the other hand, a fashion retailer might consider customer lifetime to be 3-5 years. By using advanced statistical models, analysts can calculate the proportion of purchase, the probability of purchase and repurchase, purchase frequency and sequence for individual customers and this might give you a clearer picture of the probable revenue that you can expect from your current customer base. To conclude  Beware; CLV is not the final answer to all your customer relationship management concerns. As Warren Buffet puts it, “The CLV formulas can be very helpful. They can help you make the right decisions to drive your business, but if you fall into the trap of believing that the formulas are the be-all and end-all to your business, that’s when it’s not going to work out so well.” 6.9 KEYWORDS 99  CLV (customer lifetime value) calculation of customer value. CU IDOL SELF LEARNING MATERIAL (SLM)

 4 elements to customer value: - logistics, which are: cost, quality, service, and time.  Projected value: the expected profit received from selling existing products  Lifetime value: the realized value plus the projected value  Potential value: lifetime value plus future profits to be generated by products that have yet to be marketed. 6.10 LEARNING ACTIVITY 1. Explain concept of Customer Life Time Value ___________________________________________________________________________ _____________________________________________________________________ 2. Explain the methods of calculating Customer Life Time Value? ___________________________________________________________________________ _____________________________________________________________________ 3. Explain the concept of Customer retention? ___________________________________________________________________________ _____________________________________________________________________ 6.11 UNIT END QUESTIONS A. Descriptive Questions 100 Short Questions 1. Define the purpose of Customer life time value 2. What is Customer & Consumer? 3. Explain advantages of Customer Lie Time Value. 4. Explain the process of Customer Life Time Value 5. Explain the process of Customer Lifetime Value Model 6. What is CLV Formula? Long Questions 1. What is scope of Customer Lifetime Value in your Business? 2. Explain the scope of Customer Value Time Value. 3. How to determine your Customer Lie Time Value. 4. What is the aim of assessing Customer Lifetime Value? 5. Explain CLV Model CU IDOL SELF LEARNING MATERIAL (SLM)