Monday, April 14, 2008
Week 8 – Hitwise
I really liked the Hitwise site. Five key offering: 1.) Ranking – great category choices, 2.) Charting – tool for comparing two websites, 3.) Clickstream – shows the path taken to a site, 4.) Search intellignce – What words are used to find the site – good for developing search engine key words, and 5.) Demographics & Lifestyle – always key to identifying your target customers.
Week 8 – Chapter 19 Review & Application: 1.1, 4.1
1.1) The six components of Customer Relationship Management (CRM): 1.) Identify Customer Relationships with the company, which means identifying who the customers are and what they are buying; 2.) Understand the Interactions with Current Customers, which means collecting data on the contact that the customers have with the company; 3.) Capture Customer Data based on Interaction, which means after identifying the customer contacts that they then devise some qualifiers to distinguish what information groups they want to analyze; 4.) Store & Integrate Date, which means using information technology to record and store the interaction data; 5.) Identify the Best Customers by analyzing the integrated data. Analyzing the integrated data helps to determine what customers like, don’t like and what benefits and features are most sought after in your product or service; and 6.) Leverage the Information by disseminating the analyzed data through out all areas of the company. This allows each department the opportunity to add value to the product or service at every level.
4.1) www.hardrockcafe.com
4.1) www.hardrockcafe.com
Week 8 – Chapter 18 Review & Application: 1.1, 2.1, 3.5, 5.1
1.1) The marketing manager is making a mistake with a pricing strategy that sets the price for the antique style computer desk below comparable product pricing. Although he states that he is doing this to increase the quantity they sell, he is not taking several factors into consideration. First, if they are selling a desk made of high quality materials and that has several special features, the price should reflect that. However, most importantly, he is not taking into account the style of the product and that this is the type of product that is a one time purchase. This is not a generic laminated type desk – this is a specific style that may not appeal to the mass market (antique, roll top). Many people would not buy this product, even with a low price because of the style. Additionally, once a computer desk is purchased, it is not likely a consumer would make another purchase of the same product for quite some time.
2.1) If charged under the Robinson-Patman Act, a seller has three defense options. The first option involves price. If there is a manufacturing or quality discount a company can sell at a different price to different customers. The second option involves market conditions. A different price to different customers is allowed under certain conditions such as if the product is perishable or the seller is closing their business. The final legitimate defense to the Robinson-Patman Act is relates to competition. If a competitor quotes an undercut price then the seller can lower their price as well.
3.5) The information age is changing pricing in two main ways. First, because of a consumer’s ability to purchase many products over the internet that they previously had to purchase from a retailer, many middlemen have been cut out of the market channel. This usually has a direct impact of pricing. Next, because consumers have a much easier time in comparing product features and pricing on the internet, many companies have been forced to become much more competitive with their pricing.
5.1) This is a tough question to answer because I would use different pricing strategies during a recession to gain or maintain market share based on what the product or service I was selling. I think that service industries often times have the best advantage during a recession because it is easiest to bundle and/or unbundled services over products. You can work with compatible service providers to increase your offerings to consumers or scale back the current services offered.
2.1) If charged under the Robinson-Patman Act, a seller has three defense options. The first option involves price. If there is a manufacturing or quality discount a company can sell at a different price to different customers. The second option involves market conditions. A different price to different customers is allowed under certain conditions such as if the product is perishable or the seller is closing their business. The final legitimate defense to the Robinson-Patman Act is relates to competition. If a competitor quotes an undercut price then the seller can lower their price as well.
3.5) The information age is changing pricing in two main ways. First, because of a consumer’s ability to purchase many products over the internet that they previously had to purchase from a retailer, many middlemen have been cut out of the market channel. This usually has a direct impact of pricing. Next, because consumers have a much easier time in comparing product features and pricing on the internet, many companies have been forced to become much more competitive with their pricing.
5.1) This is a tough question to answer because I would use different pricing strategies during a recession to gain or maintain market share based on what the product or service I was selling. I think that service industries often times have the best advantage during a recession because it is easiest to bundle and/or unbundled services over products. You can work with compatible service providers to increase your offerings to consumers or scale back the current services offered.
Week 7 – Chapter 14 Review & Applications: 3.1, 4.1, 5.1, 5.2
3.1) Understanding the target market is a crucial aspect of the communication process because the marketers are trying to inform, persuade, or remind the market about their product or service. To do this effectively, they have to understand the target market so they can determine where, how and what message to communicate.
4.1) Persuasion is generally designed to get a consumer to buy a product or service or take some kind of action and is usually used in the growth stage. This means that consumers already are aware of the product or service and the producer is trying to get the consumer to choose their particular brand. This is also true for mature products. Fast food restaurants are a good example of companies that use persuasive promotions.
5.1) AIDA: Attention, Interest, Desire and Action: the process of meeting promotional goals to get consumers to buy a product or service. Three part process: thinking, feeling and doing. Advertising and PR is most effective in the attention and interest stages; sales promotion most effective in the desire stage; and personal selling is most effective in the interest, desire and action stage.
5.2) http://www.kohler.com/
4.1) Persuasion is generally designed to get a consumer to buy a product or service or take some kind of action and is usually used in the growth stage. This means that consumers already are aware of the product or service and the producer is trying to get the consumer to choose their particular brand. This is also true for mature products. Fast food restaurants are a good example of companies that use persuasive promotions.
5.1) AIDA: Attention, Interest, Desire and Action: the process of meeting promotional goals to get consumers to buy a product or service. Three part process: thinking, feeling and doing. Advertising and PR is most effective in the attention and interest stages; sales promotion most effective in the desire stage; and personal selling is most effective in the interest, desire and action stage.
5.2) http://www.kohler.com/
Week 7 – Chapter 12 Review & Applications: 2.1
2.1) Some part of all marketing channels could conceivably be performed over the internet; transactional functions, logistical functions and facilitating functions. Producers could sell directly to consumers via the web. Retailers use the web for orders from consumers, where all functions of the order process such as product selection and payment processing are all performed on the internet. Additionally, transit can also be scheduled and monitored through the internet. As more and more people become computer savvy, the use of the internet also increases, although branding may be more difficult. The internet has had the most impact on supply chain management and electronic distribution in particular. This can be seen in products ranging from computer software to music and video.
Week 6 – Chapter 11: Activity 1, 2, 3
100% Physical Good 100% Service Good
I-------------------------------------------------------------------------------------I
J C T E O D H
Easy to Assess Quality Difficult to Assess Quality
I-------------------------------------------------------------------------------------I
J D H C O E T
In general, it is easier to assess service; you can often see the immediate result of a service, such as a hair cut or dry cleaning. However, some services are harder to assess, such as an oil change. The effect of an improper oil change may not immediately be apparent or traceable. The same can be said for products. You can immediately see the quality of designer jeans, but a problem with a new car may not present itself for a long time after the actual purchase.
I-------------------------------------------------------------------------------------I
J C T E O D H
Easy to Assess Quality Difficult to Assess Quality
I-------------------------------------------------------------------------------------I
J D H C O E T
In general, it is easier to assess service; you can often see the immediate result of a service, such as a hair cut or dry cleaning. However, some services are harder to assess, such as an oil change. The effect of an improper oil change may not immediately be apparent or traceable. The same can be said for products. You can immediately see the quality of designer jeans, but a problem with a new car may not present itself for a long time after the actual purchase.
Week 6 – Chapter 11 Review & Applications: 1.1, 2.1, 3.1
1.1) www.bls.gov/bdm/home.html
2.1) This question makes me wish I had been in class this night so that I could ask questions about service intangibles. The main one that I see in banking is the attitude and demeanor of the tellers or phone representatives. Sometimes people just rub you the wrong way and it is impossible to define. A perceived good experience would improve customer’s view of the bank and a perceived bad experience would detract from the opinion of the bank.
3.1) I love this question!!!!! I recently went to a Subway sandwich shop for dinner. The only positive thing I can say about the experience is that the store appeared to be clean and that it looked just like all other subways. The rest of my experience was a nightmare. I expected the purchase of a sandwich to take relatively little time – its fast food, and when I entered, I was the only customer in line and there were two workers behind the counter. As I ordered my sandwich, I noticed a sign that offered a reduced price on a bowl of soup with the purchase of a 6 inch sub or a value meal; I ordered the soup. One employee proceeded to slowly make my sandwich. After I paid I realized that I had not been given the reduced price on my soup. It was just over a dollar difference but I would not had ordered the soup if it had not been offered at a discount, so I ask for a refund. The kid working proceeded to “flip out” and start screaming at the other kid that the soup was only for a value meal. I pointed to the sign and told him “No, the other kid is right. The sign clearly states a 6 inch sub OR a value meal”. That’s when the swearing started – I was completely shocked. Never in a million years would I have guessed that a kid at Subway would think it appropriate to say “sh*t, fu*k, and mother f*ck” in front of a customer. At that point I told the kid that I no longer wanted the soup and just to give me my money back. This started a whole new run of cursing because neither of the kids knew how to make a refund on the cash register. While one struggled to work the cash register, the other one continued to argue with me about the soup and “threatened” to call his manager. I of course laughed out loud and told him he should call his manager as I intended to as soon as I left the shop. He calls his manager who promptly tells him that I am right and to give me my money back for the discounted soup. The manager hung up on him which left us with the same problem of making a refund. Finally, I figured it out for him and received my refund. The actual sandwich and soup were good but the service quality missed on all 5 fronts.
2.1) This question makes me wish I had been in class this night so that I could ask questions about service intangibles. The main one that I see in banking is the attitude and demeanor of the tellers or phone representatives. Sometimes people just rub you the wrong way and it is impossible to define. A perceived good experience would improve customer’s view of the bank and a perceived bad experience would detract from the opinion of the bank.
3.1) I love this question!!!!! I recently went to a Subway sandwich shop for dinner. The only positive thing I can say about the experience is that the store appeared to be clean and that it looked just like all other subways. The rest of my experience was a nightmare. I expected the purchase of a sandwich to take relatively little time – its fast food, and when I entered, I was the only customer in line and there were two workers behind the counter. As I ordered my sandwich, I noticed a sign that offered a reduced price on a bowl of soup with the purchase of a 6 inch sub or a value meal; I ordered the soup. One employee proceeded to slowly make my sandwich. After I paid I realized that I had not been given the reduced price on my soup. It was just over a dollar difference but I would not had ordered the soup if it had not been offered at a discount, so I ask for a refund. The kid working proceeded to “flip out” and start screaming at the other kid that the soup was only for a value meal. I pointed to the sign and told him “No, the other kid is right. The sign clearly states a 6 inch sub OR a value meal”. That’s when the swearing started – I was completely shocked. Never in a million years would I have guessed that a kid at Subway would think it appropriate to say “sh*t, fu*k, and mother f*ck” in front of a customer. At that point I told the kid that I no longer wanted the soup and just to give me my money back. This started a whole new run of cursing because neither of the kids knew how to make a refund on the cash register. While one struggled to work the cash register, the other one continued to argue with me about the soup and “threatened” to call his manager. I of course laughed out loud and told him he should call his manager as I intended to as soon as I left the shop. He calls his manager who promptly tells him that I am right and to give me my money back for the discounted soup. The manager hung up on him which left us with the same problem of making a refund. Finally, I figured it out for him and received my refund. The actual sandwich and soup were good but the service quality missed on all 5 fronts.
Week 6 – Chapter 10 Review & Applications: 5.1, 5.2, 6.1
5.1) Trialability is most effective with convenience products such as toothpaste, shampoo and deodorant. These products are relatively inexpensive and usually consumer choices are based on brand loyalty. Since they are low in cost, consumers are more willing to try a different brand because it is easy and cheap to go back to their original brand if the new product is not preferred. However, more expensive products can also use Trialability. Often times car dealers will allow a potential buyer to try out a car for a few days prior to making a purchase.
5.2) I use all types of adoptive behavior depending on what the product or service is that I want to purchase. However, most often I use compatibility. I think this is because I am old enough that there are very few products or services that I haven’t previously purchased so I have already determined a preferred brand or features that are most important to me. So, I tend to look at how a different brand or alternate product compares to products I have previously purchased.
6.1) I think the main way that Cheerios is trying to promote their mature product is by advertising the health benefits of the product. They put a lot of effort into not just gearing the cereal towards kids but to their parents and grandparents. They have gone to whole grain and promote the product as a cholesterol reducer. This is important to an aging population.
5.2) I use all types of adoptive behavior depending on what the product or service is that I want to purchase. However, most often I use compatibility. I think this is because I am old enough that there are very few products or services that I haven’t previously purchased so I have already determined a preferred brand or features that are most important to me. So, I tend to look at how a different brand or alternate product compares to products I have previously purchased.
6.1) I think the main way that Cheerios is trying to promote their mature product is by advertising the health benefits of the product. They put a lot of effort into not just gearing the cereal towards kids but to their parents and grandparents. They have gone to whole grain and promote the product as a cholesterol reducer. This is important to an aging population.
Week 5 – Clarita Target Market
Claritas Target Market Research site offers free resources. From a marketing stand point, the five best features are: 1.) segmentation look-up, 2.) product trials, 3.) demographic data, 4.) lifestyle “index” and 5.) the propensity of customers to purchase.
Week 5 - Chapter 9 Review and Application: 2.1, 4.2, 5.1, 6.1
2.1) Group project.
4.2) http://www.hormel.com/ and www.spam.com
5.1) Angel Soft toilet paper has distinctive packaging. It is contained in a standard material of plastic (wrap) which is effective in containing the rolls and protective the paper from damage. It does a good job of promoting the product by having a cute baby on the front of the packaging. They are trying to tell the customer that the paper is soft enough for a baby OR that it is as soft as a baby’s skin, so that it is soft enough for your rear end. Storage and use is facilitated by the 12 rolls being stacked 3 wide by 4 high and then tightly sealed in the plastic wrap. I can easily open the top of the wrap and pull out the number of rolls I need and then fold the wrap back over and easily store the remaining rolls in my linen closet or under the sink. The packaging has one noticeable item related to “green”. It has a “blurb” on the front and the back of the packaging that indicates that it is “Septic Safe”, meaning that it is safe for septic tanks and sewer systems.
6.1) www.levi.com
4.2) http://www.hormel.com/ and www.spam.com
5.1) Angel Soft toilet paper has distinctive packaging. It is contained in a standard material of plastic (wrap) which is effective in containing the rolls and protective the paper from damage. It does a good job of promoting the product by having a cute baby on the front of the packaging. They are trying to tell the customer that the paper is soft enough for a baby OR that it is as soft as a baby’s skin, so that it is soft enough for your rear end. Storage and use is facilitated by the 12 rolls being stacked 3 wide by 4 high and then tightly sealed in the plastic wrap. I can easily open the top of the wrap and pull out the number of rolls I need and then fold the wrap back over and easily store the remaining rolls in my linen closet or under the sink. The packaging has one noticeable item related to “green”. It has a “blurb” on the front and the back of the packaging that indicates that it is “Septic Safe”, meaning that it is safe for septic tanks and sewer systems.
6.1) www.levi.com
Week 5 – Chapter 7 Review and Application: 4.3, 7.2, 9.1
4.3) Fitness water…Whole Foods store: people that are active and value health and nutrition. Proactiv Solution…infomercial exercise equipment: people that are interested in improving their appearance and shop on the TV. Alienware…a guitar shop: dorky boys who think they are “Badass” as Alien’s site says. Specialty luggage tags…airport car rental: for people that travel regularly.
7.2) jcpenny.com and target.com
9.1) Talk Shows: Regis & Kelly, Oprah, Maury. Regis & Kelly’s positioning strategy is geared towards woman with children that do not work outside of the home and “empty nest” woman. It is marketed as an upbeat, friendly, and light show. This is demonstrated by their format, time slot, guests/topics and commercial advertisements. The show always starts off with banter between the two hosts. One host is an older man that has been married for 40+ years and the other is a late 30’s female with 3 small children. The show is on in the morning, usually from 8 to 9am. This is after the kids are off to school but before most stores are open (drug store, dry cleaners, Target, etc.). Topics and guests center on popular culture and the entertainment industry. Commercial advertisements center on daily home products, children and the health of an aging population (laundry detergent, diapers and snack foods, vitamin supplements). Oprah’s positioning strategy is geared toward woman, self-improvement and social causes. This is demonstrated by the format and guests/topics. The show has a single host that relays personal stories and experiences and a very probing interview style. Generally the topics center on improving the situation of the guest or illustrate how the guest overcame some kind of traumatic experience. Each show usually is some kind of journey and is the basis of some kind of life lesson for the audience to draw upon to improve their life or their community. Maury’s positioning strategy started off similar to that of Oprah’s strategy. Apparently that was not that effective. There was a brief time that Maury was off the air. When the show returned, it worked to reposition itself. It is now geared towards the more voyeuristic audience that is looking to “peek” into other people’s lives at their worst moments or during a traumatic event. My friends and I jokingly call it the “Who’s your daddy?” show.
7.2) jcpenny.com and target.com
9.1) Talk Shows: Regis & Kelly, Oprah, Maury. Regis & Kelly’s positioning strategy is geared towards woman with children that do not work outside of the home and “empty nest” woman. It is marketed as an upbeat, friendly, and light show. This is demonstrated by their format, time slot, guests/topics and commercial advertisements. The show always starts off with banter between the two hosts. One host is an older man that has been married for 40+ years and the other is a late 30’s female with 3 small children. The show is on in the morning, usually from 8 to 9am. This is after the kids are off to school but before most stores are open (drug store, dry cleaners, Target, etc.). Topics and guests center on popular culture and the entertainment industry. Commercial advertisements center on daily home products, children and the health of an aging population (laundry detergent, diapers and snack foods, vitamin supplements). Oprah’s positioning strategy is geared toward woman, self-improvement and social causes. This is demonstrated by the format and guests/topics. The show has a single host that relays personal stories and experiences and a very probing interview style. Generally the topics center on improving the situation of the guest or illustrate how the guest overcame some kind of traumatic experience. Each show usually is some kind of journey and is the basis of some kind of life lesson for the audience to draw upon to improve their life or their community. Maury’s positioning strategy started off similar to that of Oprah’s strategy. Apparently that was not that effective. There was a brief time that Maury was off the air. When the show returned, it worked to reposition itself. It is now geared towards the more voyeuristic audience that is looking to “peek” into other people’s lives at their worst moments or during a traumatic event. My friends and I jokingly call it the “Who’s your daddy?” show.
Monday, April 7, 2008
Week 5 - SRIC-BI VALS Survey
I'm fascinated by the VALS survey - it's almost creepy how accurate it can be. SCANS helps companies to recognize emerging markets, recognize and understand changes in existing markets by analyzing the areas of education, health, retail and IT. They have a global reach and can help researchers to understand consumer motivators and buying habits.
Week 7 - Email Mktg: Constant Contact
At first I was a little overwhelmed by the amount of information on this sight. However, I was quickly able to get to the free "take a tour" and it became more manageable. They offered both video and audio tours. I liked the availability of multiple templates for sending out emails or for creating newsletters. They also offered means to organize your contacts and track responses. They offered solutions and support for websites and how to best use mass emails for advertising, promotion or informing a given market. Overall, I think this is a good tool and would be help for people not familiar with mass emailing or with limited experience.
Monday, March 24, 2008
Week 5 - Viva Las Vegas 1, 2, 3, 4
1.) Based in the provided information, the LVCVA is generally using demographics and geography for segmenting its target market. They looked at emerging markets based on income (Portland and Atlanta) and race/ethnicity (African-American and Hispanics). Additionally, they targeted groups from Canada, as they were losing market share for this area. 2.) The LVCVA uses a multisegment targeting strategy because of the huge volume of visitors that travel to the city and for the many variety of reasons for doing so, ranging from leisure, gambling, private parties/weddings, entertainment, and conventions. The LVCVA does need to be concerned with cannibalization particularly in times of recession. People traveling to gamble or see the entertainment may find similar options closer to home. More and more casinos are opening throughout the country and other cities will be increasing their efforts to gain convention business. Additionally, in the 1990’s Las Vegas had worked to reposition itself as “family friendly” but now appear to be repositioning itself again back to the “Sin City” of the past. This may cause some families to look at other options such as Disney World or Universal Studios. 3.) I would choose the following lifestyle segments: young/single/partiers, married/no kids, married/with young kids, single or married/with grown kids, retired. NOTE: I need to come back to this after class discussion. I need clarification on “lifestyle”. 4.) The LVCVA was successful for several reasons. They took the time to understand the cultural differences between the Anglo, African-American and Hispanic cultures and marketed directly to those groups. Also, they invested time and personal contact in the lagging Canadian market.
Week 4 - Census Bureau Home Page
When you type in NAICS into the census bureau home page it takes you to a great spot that describes the NAICS, which is a numbering system (similar to the SIC) developed to unify Canadian, American and Mexican businesses and manufacturing process. The site can be used to find out a variety of information about particular industries such as size, number, number of employees, etc. It was most important in my last job because I was responsible for importing products from Japan and exporting products to Canada, Mexico and Hungary. There are numerous other "codes" that the NAICS page provides that enable businesses to do this legally. It is not super easy to use at first - it takes some practice. It also helps to be logical and have a good understanding of the industry in which you are seeking information.
Week 4 – Chapter 6 Review and Application: 2.1, 3.1, 5.1, 5.2
2.1) I thought this was a hideous website. It is confusing and not easy to use. I suppose had I taken more time I might have been able to track down resources for purchasing marketing information. Is it was, I did not understand how this site could be used to develop a marketing plan. I hope were review this in class.
3.1) Relationship/personal selling is important to business marketing because of the huge explosion of competition within all industries and as consumers become more sophisticated. Long-term customer relationships allow businesses to explore and develop competitive advantages that cannot be duplicated quickly by other businesses and can facilitate value added quantum leaps.
5.1) www.census.gov/epcd/www/naics.html convert SIC data to NAICS. This was developed to embrace NAFTA in the late 1990’s to unify Canadian, American and Mexican coding. The site is easy to use and easily converts SIC codes to NAICS-assuming you have an SIC code.
5.2) Manufacturers of resistors: Manufacturingà Computer and electrical products 334à resistors 334415 (SIC3676). Easy
3.1) Relationship/personal selling is important to business marketing because of the huge explosion of competition within all industries and as consumers become more sophisticated. Long-term customer relationships allow businesses to explore and develop competitive advantages that cannot be duplicated quickly by other businesses and can facilitate value added quantum leaps.
5.1) www.census.gov/epcd/www/naics.html convert SIC data to NAICS. This was developed to embrace NAFTA in the late 1990’s to unify Canadian, American and Mexican coding. The site is easy to use and easily converts SIC codes to NAICS-assuming you have an SIC code.
5.2) Manufacturers of resistors: Manufacturingà Computer and electrical products 334à resistors 334415 (SIC3676). Easy
Week 4 – Chapter 5 Review and Application: 4.1, 4.2, 6.1, 8.1
4.1) The three types of consumer buying decisions are routine, limited and extensive. Routine decisions are made for products/services that are purchased frequently, are low-cost and are readily available. Brand loyalty often is the main factor in these decisions. Routine products/services could include the following: toilet paper, soda pop, a convenience store, and fast food restaurants. Limited decisions are made for products/services that are not bought as frequently and are more moderately priced. The consumer may still be familiar with the product/service but not necessarily the current brands or options available. Limited products/services could include the following: small electronics (zip drive, alarm clock), and clothing/shoes. Extensive decisions are made for products/services that are not frequently purchased, are expensive, and that the consumer has limited knowledge. Extensive products/services could include automobiles, large electronics (TVs, home appliances) and furniture. Many generalizations can be made about each of the three categories. However, it is important to be mindful of other factors that influence consumer buying trends: culture and values, subcultures and social class. These factors directly affect how products/services are marketed and to which targeted group.
4.2) Computer purchases could fall into the Limited and the Extensive decision making categories depending on the consumer. There is such a wide range of consumer technical ability and knowledge. Many people would find it an easy, non-time consuming process; spending the majority of their decision making time simply finding the best deal on the product that they know they want and that they have purchased several times in the past. For others, this would be considered a major purchase, requiring extensive time to research all available brands and product options for an item that they have not purchased in the past or may have purchased so long ago that the technology is not familiar (for example: someone in their early to mid twenties will most likely have a different approach than their grandparents). www.apple.com
6.1) Pizza Hut: influencers would be the most important factor. The influencer would be me, as I am most particular about the brand of pizza I eat and would never order a Pizza Hut pizza. Summer Vacation: purchasers would be the most important factor. The purchaser would be my father, as he is paying for the vacation he would have the most impact on the decision. Fruit Loops breakfast cereal: consumer would be the most important factor. The consumer would be my nieces. This is an inexpensive product and the people eating the product would have the most impact on the decision. Abercrombie & Finch sweater: consumer would be the most important factor. This is a somewhat inexpensive product and the person wearing it would have the most impact on the decision. Golf clubs: influencer would be the most important factor. The influencer would be my father, as he is a serious golfer with extensive knowledge of the sport and related products. If I were buying golf clubs, I would defer to him for the brand and type to buy. Internet service provider: consumer would be the most important factor. This is an inexpensive product and the person using the product would have the most impact on the decision. New car: influencer, purchaser and consumer all would share responsibility. If I were buying a new car, as the consumer I would have major impact on the decision. However, my father, as an experienced new car buyer and the person I would probably borrow money from would also have a major impact on the decision.
8.1) Beliefs and attitudes are knowledge a consumer believes to be true and how they respond to a specific product or brand of product based on their learned values. Changing negative beliefs can be most difficult. It often involves modifying a consumer’s perception of the product, changing the perception of how the product can benefit them or adding new beliefs about the product. Examples: ???????
NOTE: Can we talk about this in more detail in class? I found this section of the reading to be extremely vague with regards to defining how this is done and so it is difficult for me to come up with examples. I was disappointed in this section of the text.
4.2) Computer purchases could fall into the Limited and the Extensive decision making categories depending on the consumer. There is such a wide range of consumer technical ability and knowledge. Many people would find it an easy, non-time consuming process; spending the majority of their decision making time simply finding the best deal on the product that they know they want and that they have purchased several times in the past. For others, this would be considered a major purchase, requiring extensive time to research all available brands and product options for an item that they have not purchased in the past or may have purchased so long ago that the technology is not familiar (for example: someone in their early to mid twenties will most likely have a different approach than their grandparents). www.apple.com
6.1) Pizza Hut: influencers would be the most important factor. The influencer would be me, as I am most particular about the brand of pizza I eat and would never order a Pizza Hut pizza. Summer Vacation: purchasers would be the most important factor. The purchaser would be my father, as he is paying for the vacation he would have the most impact on the decision. Fruit Loops breakfast cereal: consumer would be the most important factor. The consumer would be my nieces. This is an inexpensive product and the people eating the product would have the most impact on the decision. Abercrombie & Finch sweater: consumer would be the most important factor. This is a somewhat inexpensive product and the person wearing it would have the most impact on the decision. Golf clubs: influencer would be the most important factor. The influencer would be my father, as he is a serious golfer with extensive knowledge of the sport and related products. If I were buying golf clubs, I would defer to him for the brand and type to buy. Internet service provider: consumer would be the most important factor. This is an inexpensive product and the person using the product would have the most impact on the decision. New car: influencer, purchaser and consumer all would share responsibility. If I were buying a new car, as the consumer I would have major impact on the decision. However, my father, as an experienced new car buyer and the person I would probably borrow money from would also have a major impact on the decision.
8.1) Beliefs and attitudes are knowledge a consumer believes to be true and how they respond to a specific product or brand of product based on their learned values. Changing negative beliefs can be most difficult. It often involves modifying a consumer’s perception of the product, changing the perception of how the product can benefit them or adding new beliefs about the product. Examples: ???????
NOTE: Can we talk about this in more detail in class? I found this section of the reading to be extremely vague with regards to defining how this is done and so it is difficult for me to come up with examples. I was disappointed in this section of the text.
Monday, March 10, 2008
Week 3 - The CAN-SPAM Act
The CAN-SPAM Act: I’m not really sure what to think about this. The title indicates that it was basically developed to prevent people from sending unsolicited pornographic advertisements. However, it does not actually specifically address that issue within the text. Also, it seems that it would severely limit legitimate companies from mass marketing. How come those guys can mass mail crap to my house (and I know they bought my address from someone) all the time but not email it to me? Is there a way to stop those pesky credit card people from sending me unsolicited advertisements? Additionally, this was definitely written by a lawyer and could probably be described in more user-friendly terms on the site to encourage people to take action. The “how to file a complaint” section was super tiny and located at the very bottom of the site – you would have to actually make it through the whole thing to find it. It was interesting to see that a physical mailing address is required to send a legitimate email advertisement. So know virtual companies can send electronic advertisements? I’m not a fan of SPAM, but I do think that the Act as described does not match-up with the name and the intention.
Week 3 - Vermont Teddy Bear: 1, 2
Vermont Teddy Bear (VTB) did violate the requirements of corporate social responsibility as outlined by the four components of the pyramid of corporate social responsibility. VTB met the requirements of economic responsibilities (they were profitable) and legal responsibilities (they did not break the law). However, they may have violated the ethical responsibilities of doing what is right and avoiding harm. This is a really grey area. Who is the judge of what is right? Although there were some individuals and groups that protested the sale of the “Crazy for You” bear, there were also many consumers that purchased the product. If companies only sold products that nobody had a problem with, there would be no products to sell – there is at least one person out there that is offended by every product in existence. Where VTB missed the boat is in there failure to meet the philanthropic responsibilities of social responsibility. Although they decided that they would continue selling the “Crazy for You” bear, they missed the opportunity to placate many of their opponents by not making a contribution to a mental health group. The controversy was both negative and positive for the company and Robert. The product sold out and the media attention exposed the company to many new consumers or potential consumers. On the other hand, they may have lost some potential customers because of their own personal feelings regarding the “Crazy for You” bear. I believe the Robert showed herself to be a strong leader that would not buckle under outside pressure. However, her stance did cost her a position on a local hospital board.
Week 3 - Chapter 4 Review & Applications: 2.1, 4.2, 4.3, 4.4, 5.3
2.1 Rubbermaid may benefit from global marketing standardization by increasing competition which in turn may improve the quality of the products they offer, increase the standard of living in newly penetrated markets and improve labor and environmental standards. However, global marketing standardization may also create an environment with their US operations that reduces the number manufacturing jobs, creates an environment of fear within the workforces and ultimately create a negative company image to US consumers.
4.2 The US Commercial Service can assist companies in translating their corporate materials into foreign languages, promote/display company materials, gather international sales leads and provide assistance with follow up to those leads.
4.3 A joint venture provides a fast and cheap way to enter the international market place and to combine company expertise and resources. A major drawback is that it opens each of the involved parties to take-over by the other. Often times this is the result of disagreement between the two parties’ top managers over the organizational chart, policies and operational and marketing strategies.
4.4 Direct investment is the risky of ways of entering the global marketplace because they have a controlling interest or a minority interest in the company, which means they have the most to lose if the company fails.
5.3 Fluctuating exchanges rates affect a firm’s global sales by making it more or less expensive to purchase a particular product in a specific country relative to another. If the US dollar is strong compared to Japanese yen, products from Japan cost us less and in turn products from the US cost the Japanese more. This in turn affects the amount of imports and exports to and from the US.
4.2 The US Commercial Service can assist companies in translating their corporate materials into foreign languages, promote/display company materials, gather international sales leads and provide assistance with follow up to those leads.
4.3 A joint venture provides a fast and cheap way to enter the international market place and to combine company expertise and resources. A major drawback is that it opens each of the involved parties to take-over by the other. Often times this is the result of disagreement between the two parties’ top managers over the organizational chart, policies and operational and marketing strategies.
4.4 Direct investment is the risky of ways of entering the global marketplace because they have a controlling interest or a minority interest in the company, which means they have the most to lose if the company fails.
5.3 Fluctuating exchanges rates affect a firm’s global sales by making it more or less expensive to purchase a particular product in a specific country relative to another. If the US dollar is strong compared to Japanese yen, products from Japan cost us less and in turn products from the US cost the Japanese more. This in turn affects the amount of imports and exports to and from the US.
Week 3, Chapter 3 Review & Applications: 5.1 9.3
5.1 a) Bally’s Health Clubs: gear more towards strength training, toning and health rather than hard core training; personal trainers that are educated in the health concerns of an aging population, for example arthritis and osteoporosis; b) McDonald’s: gear esthetics more towards an aging adult population, less towards the “McPlayland” crowd; continue to improve and increase the about of healthy food offerings; c) Whirlpool Corporation: gear advertising campaigns towards baby boomers that are downsizing, moving to condominiums or smaller homes, couples that have lived in the same home for 30 years and have never remodeled; d) The state of Florida: watch out Florida, you better start building more condominiums!!; e) Target Stores; gear more towards an aging population and less towards the Tween crowd; increase pharmacy services within stores, more mini “health” clinics and services.
9.3 www.fdanews.com The topic that most stood out on the FDA website is medical devices. This industry has been at the forefront of global marketing. Many companies have developed partnerships or subsidiaries outside of the US, in part due to the different regulatory limits between the US and other countries. Producing or manufacturing medical devices outside the US often allows companies to have quicker testing periods and quicker approval. Additionally, it promotes tougher competition worldwide.
9.3 www.fdanews.com The topic that most stood out on the FDA website is medical devices. This industry has been at the forefront of global marketing. Many companies have developed partnerships or subsidiaries outside of the US, in part due to the different regulatory limits between the US and other countries. Producing or manufacturing medical devices outside the US often allows companies to have quicker testing periods and quicker approval. Additionally, it promotes tougher competition worldwide.
Monday, March 3, 2008
Week 2 - Chapter 1 Review & Applications: 1.1, 2.3
1.1 The American Marketing Association (AMA) is a professional association comprised of approximately 38,000 members worldwide. "Improving...Promoting...Suppoting..." (mission statement, http://www.marketingpower.com/ marketing professions). They provide professional information resources and development through the study and practice of marketing practices to improve the skills of individuals and the benefits of marketing to individuals and organizations.
2.3 Private educational institutions are an example of a Production Orientated industry. Educational institutions can leverage existing facilities, staff and academic reputation to offer more specialty programs - focusing on what they do best at a higher cost than a public institution. One example is the College of St. Catherine. Although they offer a range of Liberal Arts degrees, they are still best known for their health care programs, in particular the nursing program. They have created a niche by focusing on what they know best. They are able to charge considerable more than would a public school nursing program.
2.3 Private educational institutions are an example of a Production Orientated industry. Educational institutions can leverage existing facilities, staff and academic reputation to offer more specialty programs - focusing on what they do best at a higher cost than a public institution. One example is the College of St. Catherine. Although they offer a range of Liberal Arts degrees, they are still best known for their health care programs, in particular the nursing program. They have created a niche by focusing on what they know best. They are able to charge considerable more than would a public school nursing program.
Week 2 - Cirqude Soleil 1, 2, 3
1.) S - in house engineering and designers; scouts; practice facility. W - huge staff (2700) speaking 27 different language may create communication problems; permanent tour locations. O - smaller venues throughout the US/Canada. T - economic recession that keeps people out of Las Vegas or Disney; what if there was a major terrorist incident in Las Vegas?
2.) COST: Every show has made a profit. Approximately 50% of profits paid to the hotels where they perform, hotels cover 75% of costs. PRODUCT/SERVICE DIFFERENCES: Not a traditional circus; exotic costumes and staging that often require employees to invent their own materials. NICHE STRATEGY: Not a touring circus; permanent locations, mainly in Las Vegas that have a built-in, ever rotating customer base.
3.) MARKETING PLAN - IMPLEMENTATION/EVALUATION/CONTROL: Business policy do not interfere with creative process. Production development is determined by the creative team and is not limited by budget. Ongoing popularity of the show provides evaluation (2 shows have been running continuously since 1993 and 1998). Also, all shows have been profitable. Established long-term, permanent locations in Las Vegas and Disney. (NOTE: I don't feel that the information provided in the case study was enough to make a good argument regarding their control practices)
2.) COST: Every show has made a profit. Approximately 50% of profits paid to the hotels where they perform, hotels cover 75% of costs. PRODUCT/SERVICE DIFFERENCES: Not a traditional circus; exotic costumes and staging that often require employees to invent their own materials. NICHE STRATEGY: Not a touring circus; permanent locations, mainly in Las Vegas that have a built-in, ever rotating customer base.
3.) MARKETING PLAN - IMPLEMENTATION/EVALUATION/CONTROL: Business policy do not interfere with creative process. Production development is determined by the creative team and is not limited by budget. Ongoing popularity of the show provides evaluation (2 shows have been running continuously since 1993 and 1998). Also, all shows have been profitable. Established long-term, permanent locations in Las Vegas and Disney. (NOTE: I don't feel that the information provided in the case study was enough to make a good argument regarding their control practices)
Week 2 - Chapter 2 Review & Application 2.1, 4.1
2.1 A new company can best define its business mission statement by first answering the question "What business are we in?" Anther key is to not define the products or services that they produce/sell, but rather focus on the market(s) being served and the benefits being sought by the customers. American Standard Company's mission statement is "Be the best in the eyes of our customers, employees and shareholders." This does not define the market(s) being served or the benefits to the customers. The AMA's mission statement is "The American Marketing Association is a professional association for individuals and organizations involved in the practice, teaching and study of marketing worldwide. Our principal roles are:
Improving - Advancing marketing competencies, practice and thought leadership.
Promoting - Being an advocate for marketing and promoting its importance, efficacy and ethics.
Supporting - Being an essential resource for marketing information, education/training and relationships". It clearly indicates what market is their focus and the benefits they provide.
4.1 United States Postal Service S - Well known public image. Volume of preexisting locations established. Only self-sufficient gov't entity. W - It is a gov't entity. Incredibly large and strong union. O - As a gov't entity they may have easier access to international locations during times of war or high terror alert. T - Terrorism, may be too visible a target for anti-US terrorist.
Improving - Advancing marketing competencies, practice and thought leadership.
Promoting - Being an advocate for marketing and promoting its importance, efficacy and ethics.
Supporting - Being an essential resource for marketing information, education/training and relationships". It clearly indicates what market is their focus and the benefits they provide.
4.1 United States Postal Service S - Well known public image. Volume of preexisting locations established. Only self-sufficient gov't entity. W - It is a gov't entity. Incredibly large and strong union. O - As a gov't entity they may have easier access to international locations during times of war or high terror alert. T - Terrorism, may be too visible a target for anti-US terrorist.
Week 2 - Netflix 1, 2, 3
1.) Two parties: Netflix / video rental consumer; Netflix has movies / consumer is willing to pay for subscription membership; Communication established through email and distribution established through USPS; Netflix can cancel membership and not send out any more videos / consumer can choose a different source for movie rentals; Subscriber pays monthly fee and chooses movies / Netflix send out movies / subscriber returns movies / repeat.
2.) Netfliz subscribes to the Market Orientation philosophy. According to the Netflix founder, the company was formed as a result of his personal dissatisfaction as a video rental consumer. Netflix focuses on the wants of the consumer. For example: no late fees; user friendly ordering system; fast delivery and return service. Also, they have a highly advanced integrated ordering/return order system. Order history, pending requests, reviews and recommendations are all linked. A bar code allows Netflix to immediately process pending orders as soon as returned items are received at the nearest warehouse (generally 1 day away from consumers). Long term goal concerns are addressed by the owner. He views diversity of products as the next step. This would include offering used DVD's and Internet downloads for purchase.
3.) Netflix is concerned with keeping their existing customers and in improving services to them. They actively listen to customer feedback and have implemented many new features to their ordering system based on this feedback. For example, they have allowed multiple "wish lists" on singular accounts. This caters to the needs of many of their customers who have families or multiple people sharing one location. Additionally, Netflix has highly customer focused service representatives, with 20% of these representatives authorized to make direct call-backs to customers who have entered a complaint. The main focus of the call is to determine how the problem could have been prevented, not just solved.
Tuesday, February 26, 2008
Subscribe to:
Comments (Atom)