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

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.

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.

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.

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.

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)

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.

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.