Review and Applications
1.1 – Identify the six components of the CRM process.
The first step is to identify customer relationships. This could include learning who the customers are, where they are located, or even what products or services they are using. The second step is that the company should understand the interactions with the current customers. A company can complete this step by collecting data on all types of communications a customer has had with the company. The third step would involve the company capturing relevant customer data on interactions. The company can collect relevant information such as when the customer last had contact with the company and how often they make purchases, etc. The fourth step is to store and integrate customer data through information technology. It would be useful for the company to collect high quality, actionable data from many sources. The fifth step would be identifying the best customers. A company can do this with the information it has collected on the customer. The sixth step would be to leverage the customer information. The company would want to send that customer information to all areas of the company to improve the relationship with the customer.
4.1 – Comment on the types of customer data the Hard Rock Web site is designed to capture, and explain how that data would benefit your local Hard Rock operation.
You can purchase products such as clothing and other memorabilia in which the company would gain access to your demographic information. You can also join as a member of their three different clubs where you receive coupons and other things, which also gives the company your demographic information. You can reserve tables for a group over twenty in which you have to give out your business or group information. You can fill out a survey on the restaurant visit from the number on the bottom of your receipt. This would give them specific information on what your party ordered. You can also reserve hotel rooms online. All of these can help identify target markets and specific customer information. If customers are joining the membership groups then they probably visit the restaurant or hotels frequently and you would be able to tell if this would include your local operation.
Sunday, April 19, 2009
Chapter 18
Review and Applications
1.1 – A manufacturer decides to produce antique-style rolltop desks. They will be charging a low price and plan on a high volume to reduce their risks. Comment.
I think the company should use the price skimming strategy in which they charge a high introductory price coupled with heavy promotion. This strategy is usually used for new products that the target market perceives as having unique advantages. The antique rolltop desk would have unique advantages. It would be a modern computer desk mixed with the antique style. By using the price skimming strategy they can try to attract the consumer that would be willing to buy the product at the higher price. If that doesn’t work the company can always lower the price. If the company starts at a lower price first, then they may not gain market share and fail because it would be considered a cheap product. The company may also face losses from producing a high volume that will not sell.
2.1 – What are the three basic defenses that a seller can use if accused under the Robinson-Patman Act?
*Cost – a company can charge a different price to different customers of the prices represent a manufacturing or quantity discount savings.
*Market conditions – the company can have price variations if they are to meet fluid product or certain market conditions.
*Competition – the company can reduce the price if trying to stay in competition with other companies.
3.5 – How is the “information age” changing the nature of pricing.
With the information age people can now go onto the internet and shop around for the cheapest price on a certain product. Sometimes the company may even lower the price of a product if it is purchased on the internet. If companies aren’t watching their prices compared to the competition on the internet they could be losing out on sales.
5.1 – During a recession, what pricing strategies would you consider using to gain or maintain market share? Explain your answer?
I would use either value-based pricing or the bundling strategy. The value-based pricing would stress to consumers that they are getting a good value for their money on a certain product. It would show that the company has a better price than its competitors. The bundling strategy would stress to consumers that they are getting a better value than a competitor. A company may put together a package that is a better deal then purchasing each item separately.
Websites
Web Stats from ClickTracks
One solution for an entire marketing team.
Useful for running an online marketing campaign,
You can fix deliverability before sending.
There is a team calendar and message board.
You can see what visitors are doing on your site.
Google Analytics
This function can help tell your company how people find your site, how they navigate through it, and how they become customers.
Detailed reports are only a click away and they use segmentation menus.
The company can tell the value in geographic areas and the highest target markets.
The company can also tell how the design and layout of the site affects their bottom line.
Comparison
I found the Google site to be more informative and easier to navigate through. They gave a lot of information and even went into the process of how you can sign up. If I had to choose one of these programs I would definitely choose Google Analytics. It also was easier to understand and they did have helpful hints on how to read and analyze each report.
1.1 – A manufacturer decides to produce antique-style rolltop desks. They will be charging a low price and plan on a high volume to reduce their risks. Comment.
I think the company should use the price skimming strategy in which they charge a high introductory price coupled with heavy promotion. This strategy is usually used for new products that the target market perceives as having unique advantages. The antique rolltop desk would have unique advantages. It would be a modern computer desk mixed with the antique style. By using the price skimming strategy they can try to attract the consumer that would be willing to buy the product at the higher price. If that doesn’t work the company can always lower the price. If the company starts at a lower price first, then they may not gain market share and fail because it would be considered a cheap product. The company may also face losses from producing a high volume that will not sell.
2.1 – What are the three basic defenses that a seller can use if accused under the Robinson-Patman Act?
*Cost – a company can charge a different price to different customers of the prices represent a manufacturing or quantity discount savings.
*Market conditions – the company can have price variations if they are to meet fluid product or certain market conditions.
*Competition – the company can reduce the price if trying to stay in competition with other companies.
3.5 – How is the “information age” changing the nature of pricing.
With the information age people can now go onto the internet and shop around for the cheapest price on a certain product. Sometimes the company may even lower the price of a product if it is purchased on the internet. If companies aren’t watching their prices compared to the competition on the internet they could be losing out on sales.
5.1 – During a recession, what pricing strategies would you consider using to gain or maintain market share? Explain your answer?
I would use either value-based pricing or the bundling strategy. The value-based pricing would stress to consumers that they are getting a good value for their money on a certain product. It would show that the company has a better price than its competitors. The bundling strategy would stress to consumers that they are getting a better value than a competitor. A company may put together a package that is a better deal then purchasing each item separately.
Websites
Web Stats from ClickTracks
One solution for an entire marketing team.
Useful for running an online marketing campaign,
You can fix deliverability before sending.
There is a team calendar and message board.
You can see what visitors are doing on your site.
Google Analytics
This function can help tell your company how people find your site, how they navigate through it, and how they become customers.
Detailed reports are only a click away and they use segmentation menus.
The company can tell the value in geographic areas and the highest target markets.
The company can also tell how the design and layout of the site affects their bottom line.
Comparison
I found the Google site to be more informative and easier to navigate through. They gave a lot of information and even went into the process of how you can sign up. If I had to choose one of these programs I would definitely choose Google Analytics. It also was easier to understand and they did have helpful hints on how to read and analyze each report.
Saturday, April 18, 2009
Chapter 17
Review and Applications
2.1 – Give an example of each major type of pricing objective.
The three pricing objectives in the text were profit-oriented pricing, sales-oriented pricing, and status quo pricing. An example of the profit-oriented pricing would be the target return on investment. This would be the net profit of a company after taxes are divided by total assets. Menards would be an example of a profit oriented company. An example of sales-oriented pricing would be market share. The sales-oriented pricing objectives are based on market share, which using the company’s product sales as a percentage of the total sales in that industry. An example of a sales oriented comapany would be a Costco or Walgreens. The status quo pricing would be maintaining the company’s existing price or changing the price to meet the competitor’s prices. An airline or gas station would be an example of a status quo princing company.
3.1 – Explain the role of supply and demand in determining price.
First the company would have to make a demand curve and a demand schedule. The lower the price the higher the demand. This would tell the company the quantity demanded at which price. The company would then have to create a supply curve and a supply schedule. The higher the price the higher the supply. This would tell them the quantity supplied at a certain price. When you combine the demand and supply curve you come up with an equilibrium price. This price would tell the company at price at which demand and supply are equal and when they would make the most profit.
3.2 – If a firm can raise its total revenue by raising its price, should it do so?
Yes, because it would be considered an inelastic demand, which means the increase in price does not significantly affect the demand for the product. If the company can raise the price on a product and consumers will still buy it they should. It would have to be a product that is already relatively inexpensive.
3.3 – Explain the concepts of elastic and inelastic demand? Why should managers understand these concepts?
Elastic demand happens when consumers buy more or less of a product when the price of that product changes. An increase in total revenue when the price falls indicates that the demand is elastic. Demand tends to be elastic if consumers can easily find substitutes. Inelastic demand happens when an increase in or decrease in the price of a product does not affect the demand for that product. An increase in total revenue when the price increases indicates that the demand is inelastic.
Websites
E-mail Marketing Constant Contact
- The e-mail marketing would make it easier to tell who has read your e-mails and followed your links.
- You get a free 60 day trial to see if it works for you or not.
- You can keep a contact list and have people sign up to get added to list and to get newsletters.
- They give you sample e-mail templates to use to help in the design of certain e-mails.
- They help manage other lists of things.
2.1 – Give an example of each major type of pricing objective.
The three pricing objectives in the text were profit-oriented pricing, sales-oriented pricing, and status quo pricing. An example of the profit-oriented pricing would be the target return on investment. This would be the net profit of a company after taxes are divided by total assets. Menards would be an example of a profit oriented company. An example of sales-oriented pricing would be market share. The sales-oriented pricing objectives are based on market share, which using the company’s product sales as a percentage of the total sales in that industry. An example of a sales oriented comapany would be a Costco or Walgreens. The status quo pricing would be maintaining the company’s existing price or changing the price to meet the competitor’s prices. An airline or gas station would be an example of a status quo princing company.
3.1 – Explain the role of supply and demand in determining price.
First the company would have to make a demand curve and a demand schedule. The lower the price the higher the demand. This would tell the company the quantity demanded at which price. The company would then have to create a supply curve and a supply schedule. The higher the price the higher the supply. This would tell them the quantity supplied at a certain price. When you combine the demand and supply curve you come up with an equilibrium price. This price would tell the company at price at which demand and supply are equal and when they would make the most profit.
3.2 – If a firm can raise its total revenue by raising its price, should it do so?
Yes, because it would be considered an inelastic demand, which means the increase in price does not significantly affect the demand for the product. If the company can raise the price on a product and consumers will still buy it they should. It would have to be a product that is already relatively inexpensive.
3.3 – Explain the concepts of elastic and inelastic demand? Why should managers understand these concepts?
Elastic demand happens when consumers buy more or less of a product when the price of that product changes. An increase in total revenue when the price falls indicates that the demand is elastic. Demand tends to be elastic if consumers can easily find substitutes. Inelastic demand happens when an increase in or decrease in the price of a product does not affect the demand for that product. An increase in total revenue when the price increases indicates that the demand is inelastic.
Websites
E-mail Marketing Constant Contact
- The e-mail marketing would make it easier to tell who has read your e-mails and followed your links.
- You get a free 60 day trial to see if it works for you or not.
- You can keep a contact list and have people sign up to get added to list and to get newsletters.
- They give you sample e-mail templates to use to help in the design of certain e-mails.
- They help manage other lists of things.
Friday, April 17, 2009
Chapter 14
Review and Applications
3.1 – Why is understanding the target market a crucial aspect of the communication process?
Marketers need to understand their target market so they know the best way to communicate with them and to be able to develop the appropriate message. The marketers need to know how to inform and persuade certain target markets so they purchase goods and services. If the marketers know their target market the communication can be two way communication.
4.1 – Why might a marketing manager choose to promote his or her product using persuasion? Give some examples of persuasive promotion.
Persuasive promotion is designed to motivate a purchase. It emphasizes the products competitive advantages, which sometimes appeals to people’s emotional needs. Persuasion can help products that are in their mature stage and the can also make customers switch from their common brand.
5.1 – Discuss the AIDA concept. How do these different stages of consumer involvement affect the promotional mix?
AIDA is the model used to show stages of consumer involvement within the message. The acronym stands for attention, interest, desire, and action. It is the steps involved when a customer is buying a good or a service. When using the promotional mix and the AIDA concept it is easy to tell when they elements of promotion (advertising, public relations, sales promotion, and personal selling) are most useful. An example would be in the attention stage of the AIDA models it is good to use either sales promotion or personal selling.
5.2 – How does a Web site’s ease of use affect its ability to create attention, interest, desire, and action? Visit the kitchen and bath pages of Kohler’s Web site and determine how successful the company is at moving consumers through the AIDA process.
Websites that have a higher ease of use will have more customers looking at it, therefore getting their information out to the customers.
Attention – Kohler uses innovative products and puts pictures of them on their Website. You can also design and create your own kitchen or bathroom. They also had a link to all new products.
Interest – When looking at certain products it tells their features and benefits. Also, there was a link to a video about saving water and other videos about Kohler and their products.
Desire – Not only does Kohler offer bath products, but also kitchen products. If a customer was looking to remodel both they would only have to look in one place.
Action – They have good advertising on their Website and they send out newsletters to e-mails if the customer chooses that option.
3.1 – Why is understanding the target market a crucial aspect of the communication process?
Marketers need to understand their target market so they know the best way to communicate with them and to be able to develop the appropriate message. The marketers need to know how to inform and persuade certain target markets so they purchase goods and services. If the marketers know their target market the communication can be two way communication.
4.1 – Why might a marketing manager choose to promote his or her product using persuasion? Give some examples of persuasive promotion.
Persuasive promotion is designed to motivate a purchase. It emphasizes the products competitive advantages, which sometimes appeals to people’s emotional needs. Persuasion can help products that are in their mature stage and the can also make customers switch from their common brand.
5.1 – Discuss the AIDA concept. How do these different stages of consumer involvement affect the promotional mix?
AIDA is the model used to show stages of consumer involvement within the message. The acronym stands for attention, interest, desire, and action. It is the steps involved when a customer is buying a good or a service. When using the promotional mix and the AIDA concept it is easy to tell when they elements of promotion (advertising, public relations, sales promotion, and personal selling) are most useful. An example would be in the attention stage of the AIDA models it is good to use either sales promotion or personal selling.
5.2 – How does a Web site’s ease of use affect its ability to create attention, interest, desire, and action? Visit the kitchen and bath pages of Kohler’s Web site and determine how successful the company is at moving consumers through the AIDA process.
Websites that have a higher ease of use will have more customers looking at it, therefore getting their information out to the customers.
Attention – Kohler uses innovative products and puts pictures of them on their Website. You can also design and create your own kitchen or bathroom. They also had a link to all new products.
Interest – When looking at certain products it tells their features and benefits. Also, there was a link to a video about saving water and other videos about Kohler and their products.
Desire – Not only does Kohler offer bath products, but also kitchen products. If a customer was looking to remodel both they would only have to look in one place.
Action – They have good advertising on their Website and they send out newsletters to e-mails if the customer chooses that option.
Chapter 12
Review and Applications
2.1 – What kind of marketing channel functions can be performed over the Internet? Why do you think so?
Parts of the transactional functions such as contacting potential customers, promoting products and soliciting orders. All of the logistical functions can be performed over the internet. The research part of the facilitating function could be performed over the internet.
3.1 – Describe the most likely marketing channel structure for each of these consumer products: candy bars, Tupperware products, nonfiction books, new automobiles, farmers’ market produce, and stereo equipment. Now, construct alternative channels for these same products.
Candy bars – uses the wholesaler channel, an alternative channel would be selling the candy bars through a catalog for a fundraiser or even a specialty candy store that makes their own candy.
Tupperware – uses the retailer channel such as Wal-Mart selling Tupperware. Tupperware is also sold directly to consumers through people having parties to sell Tupperware.
Nonfiction books – uses the retailer channel, an alternative channel would be the bookstores on the internet selling directly to the consumer.
New automobiles – uses the retailer channel, an alternative channel would be a company purchasing a large number of new cars and buying directly from the producer.
Famers’ market product – uses the direct channel, an alternative would be the farmers selling their produce to natural, organic co-op food stores.
Stereo equipment – uses the retailer channel, an alternative channel would be catalog and selling on the Internet.
2.1 – What kind of marketing channel functions can be performed over the Internet? Why do you think so?
Parts of the transactional functions such as contacting potential customers, promoting products and soliciting orders. All of the logistical functions can be performed over the internet. The research part of the facilitating function could be performed over the internet.
3.1 – Describe the most likely marketing channel structure for each of these consumer products: candy bars, Tupperware products, nonfiction books, new automobiles, farmers’ market produce, and stereo equipment. Now, construct alternative channels for these same products.
Candy bars – uses the wholesaler channel, an alternative channel would be selling the candy bars through a catalog for a fundraiser or even a specialty candy store that makes their own candy.
Tupperware – uses the retailer channel such as Wal-Mart selling Tupperware. Tupperware is also sold directly to consumers through people having parties to sell Tupperware.
Nonfiction books – uses the retailer channel, an alternative channel would be the bookstores on the internet selling directly to the consumer.
New automobiles – uses the retailer channel, an alternative channel would be a company purchasing a large number of new cars and buying directly from the producer.
Famers’ market product – uses the direct channel, an alternative would be the farmers selling their produce to natural, organic co-op food stores.
Stereo equipment – uses the retailer channel, an alternative channel would be catalog and selling on the Internet.
Sunday, April 5, 2009
Chapter 11
Review and Applications
1.1 – To keep track of how service employment is affecting the US economy, go to http://www.bls.gov/bdm/home.html. Look at the right side bar which gives the latest numbers for Business Employment Dynamics. What trends do you see? Do the numbers support the information from the chapter?
The trends show a high number of jobs being in the service sector. This matches what the book says about the service industry.
2.1 – Assume that you are a manger of a bank branch. Write a list of the implications of intangibility for your firm.
The services of the bank can’t be touched, seen, tasted, heard, or felt. It is harder for the customers to evaluate the quality of services because of the fewer search qualities. It would also be harder for marketers to communicate the benefits of the service customers will receive from the bank.
3.1 – Analyze a recent experience that you have had with a service business in terms of your expectations and perceptions about each of the five components of service quality.
The experience I had was at Ruth’s Chris Steakhouse. I went there for the first time and had a great experience.
Reliability – The service at the restaurant was great. Not only from the waiter, but from all the other service workers at the restaurant.
Responsiveness – The service was quick and the waiter was at the table every time we needed something. We conveniently made reservations online so our table was ready right when we got there.
Assurance – The waiter went through the options of meals we were considering. He did this because we had never been there. He also suggested wines to pair with different dinner courses.
Empathy – The waiter talked to us throughout the meal to make sure everything was good and meeting our expectations. We even received a post card from the waiter in the mail a couple days after our dinner thanking us for coming into the restaurant.
Tangibles – The interior of the restaurant was very nice. The wait staff was dressed in white shirts and ties, which looked very nice.
Application Exercise
New car – physical good and difficult to assess.
Designer jeans – physical good and difficult to assess.
Oil change – service and easy to assess.
Dry cleaning – service and easy to assess.
Haircut – service and easy to assess.
Tax preparation software – both a good and a service and easy to assess.
College education – service, easy to assess.
The services were quicker to assess in terms of satisfaction, but services are more difficult to assess prior to purchase. People spend more time trying to search for a good product, but don’t know the benefits until they have already bought the product.
1.1 – To keep track of how service employment is affecting the US economy, go to http://www.bls.gov/bdm/home.html. Look at the right side bar which gives the latest numbers for Business Employment Dynamics. What trends do you see? Do the numbers support the information from the chapter?
The trends show a high number of jobs being in the service sector. This matches what the book says about the service industry.
2.1 – Assume that you are a manger of a bank branch. Write a list of the implications of intangibility for your firm.
The services of the bank can’t be touched, seen, tasted, heard, or felt. It is harder for the customers to evaluate the quality of services because of the fewer search qualities. It would also be harder for marketers to communicate the benefits of the service customers will receive from the bank.
3.1 – Analyze a recent experience that you have had with a service business in terms of your expectations and perceptions about each of the five components of service quality.
The experience I had was at Ruth’s Chris Steakhouse. I went there for the first time and had a great experience.
Reliability – The service at the restaurant was great. Not only from the waiter, but from all the other service workers at the restaurant.
Responsiveness – The service was quick and the waiter was at the table every time we needed something. We conveniently made reservations online so our table was ready right when we got there.
Assurance – The waiter went through the options of meals we were considering. He did this because we had never been there. He also suggested wines to pair with different dinner courses.
Empathy – The waiter talked to us throughout the meal to make sure everything was good and meeting our expectations. We even received a post card from the waiter in the mail a couple days after our dinner thanking us for coming into the restaurant.
Tangibles – The interior of the restaurant was very nice. The wait staff was dressed in white shirts and ties, which looked very nice.
Application Exercise
New car – physical good and difficult to assess.
Designer jeans – physical good and difficult to assess.
Oil change – service and easy to assess.
Dry cleaning – service and easy to assess.
Haircut – service and easy to assess.
Tax preparation software – both a good and a service and easy to assess.
College education – service, easy to assess.
The services were quicker to assess in terms of satisfaction, but services are more difficult to assess prior to purchase. People spend more time trying to search for a good product, but don’t know the benefits until they have already bought the product.
Chapter 10
Review and Applications
5.1 – Describe some products whose adoption rates have been affected by complexity, compatibility, relative advantage, observability, and and/or trialability.
- Complexity – the new Blu Ray DVD players would be an example of a product affected by complexity. These players are more technologically advanced and require the purchase of a higher definition cable that connects to the television.
- Compatibility – prescription drugs would be a product that is affected by compatibility. Some people might not believe in prescription drugs, but have no other choice if they want to keep living.
- Relative advantage – a hair straightener would be superior to the old way of fixing hair with a curling iron. Straighteners can add volume and even curl hair.
- Observability – the Croc brand of shoes and sandals that came out a few years ago would be an example of observability. They are very popular, but are also very comfortable shoes.
- Trialability – the shampoo and lotion samples that are given away in women’s magazines are examples of trailability products. People try them and if they like the new or existing product they are likely to buy them next time they visit a store.
5.2 – What type of adopter behavior do you typically follow? Explain.
I usually follow the early majority behavior. I don’t like to buy new products right away because of the price, but also because eventually there will be a new a better product. At the same time I like to have the new technology like everyone else.
6.1 – What is Cheerios doing to compete successfully in the maturity stage? Go to its Web site http://www.cheerios.com to find out.
They have catered to different ages on their website giving more of a market share. Cheerios has also started targeting adults who need to lower their cholesterol. They use the bee to cater to children. In the children section on the Web site they can download screensavers and wallpapers. They can also play games on the Web site. The company is also coming out with new flavors of cheerios. This will help target consumers who like a variety of cereals and not plain cheerios.
Web Site
The tipping point – WikiSummaries
- The children’s shows today still helping children to develop literacy.
- Cleaning up dirty areas of the city reduced crime.
- The book helped to initiate paradigm shifts in different fields.
- Gladwell identifies three key factors that play a role in whether a particular trend will tip. The factors are the Law of the Few, the Stickiness Factor, and the Power of Context.
- The reasons some trends fail have been thought to be mysterious.
5.1 – Describe some products whose adoption rates have been affected by complexity, compatibility, relative advantage, observability, and and/or trialability.
- Complexity – the new Blu Ray DVD players would be an example of a product affected by complexity. These players are more technologically advanced and require the purchase of a higher definition cable that connects to the television.
- Compatibility – prescription drugs would be a product that is affected by compatibility. Some people might not believe in prescription drugs, but have no other choice if they want to keep living.
- Relative advantage – a hair straightener would be superior to the old way of fixing hair with a curling iron. Straighteners can add volume and even curl hair.
- Observability – the Croc brand of shoes and sandals that came out a few years ago would be an example of observability. They are very popular, but are also very comfortable shoes.
- Trialability – the shampoo and lotion samples that are given away in women’s magazines are examples of trailability products. People try them and if they like the new or existing product they are likely to buy them next time they visit a store.
5.2 – What type of adopter behavior do you typically follow? Explain.
I usually follow the early majority behavior. I don’t like to buy new products right away because of the price, but also because eventually there will be a new a better product. At the same time I like to have the new technology like everyone else.
6.1 – What is Cheerios doing to compete successfully in the maturity stage? Go to its Web site http://www.cheerios.com to find out.
They have catered to different ages on their website giving more of a market share. Cheerios has also started targeting adults who need to lower their cholesterol. They use the bee to cater to children. In the children section on the Web site they can download screensavers and wallpapers. They can also play games on the Web site. The company is also coming out with new flavors of cheerios. This will help target consumers who like a variety of cereals and not plain cheerios.
Web Site
The tipping point – WikiSummaries
- The children’s shows today still helping children to develop literacy.
- Cleaning up dirty areas of the city reduced crime.
- The book helped to initiate paradigm shifts in different fields.
- Gladwell identifies three key factors that play a role in whether a particular trend will tip. The factors are the Law of the Few, the Stickiness Factor, and the Power of Context.
- The reasons some trends fail have been thought to be mysterious.
Sunday, March 29, 2009
Chapter 9
Review and Applications
2.1 – Classify each of the following products into the category (convenience, shopping, specialty, unsought) that you think fits best from your perspective as a consumer: Coca-cola, car stereo, winter coat, pair of shoes, life insurance, blue jeans, fast-food hamburgers, shampoo, canned vegetables, curtains.
Coca-cola – convenience
Car stereo – unsought
Winter coat – shopping
Pair of shoes – shopping
Life insurance – specialty
Blue jeans – shopping
Fast-food hamburgers – convenience
Shampoo – convenience
Canned vegetables – convenience
Curtains – unsought
4.2 – How does Hormel use its Web site http://www.hormel.com to promote its store brands? Is the site designed more to promote the company or its brands? Check out the Spam Web site at http://www.spam.com. How do you think Hormel is able to successfully sustain this brand that is often the punch line to a joke?
Hormel has establishes a product identification distinguishing itself from other products. Hormel has high brand equity because its products have high awareness and have a perceived quality. A lot of consumers have a brand loyalty to Hormel because of the quality and different products they offer. They have a very creative and eye catching Web site. The Web site has an interactive kitchen where you can click on a certain area of the kitchen and it shows the products available in that area. They have a very impressive Web site. I think the Web site promotes both the company and the products. Hormel can sustain the Spam brand because of its brand equity and brand loyalty. There really is no other product like Spam so they have a small amount of competition.
5.1 – Find a product at home that has a distinctive package. Write a paragraph evaluating that package based on the four functions of packaging discussed in the chapter.
I picked the Seventh Generation Natural Dish Liquid.
- Containing and Protecting Products – the dish liquid is in a solid, white plastic bottle. The firm plastic package protects the liquid from leaking out.
- Promoting Products – since this product is a natural dish liquid it has a green label with lavender flowers on it. There is also a bright pink sticker on the front of the bottle that states you have the right to know the ingredients in this product. On the back of the bottle there is a tear off sticker that shows the other products made by the Seventh Generation Company. This was helpful because I didn’t know what else they made.
- Facilitating storage, use and convenience – the package is easy to handle and the shape of the bottle with ridges helps out when you have slippery hands. There is an easy top that snaps when closed.
- Facilitating recycling and reducing environmental damage – the bottle was made of 25% recycled plastic and it also has the recycle symbol on the bottle. There was a paragraph on the back label that said if every household in the U.S. replaced one bottle of 25 oz petroleum-based dishwashing liquid with their plant derived liquid we could save 86,000 barrels of oil. Also the motto for the company was ‘In our every deliberation, we must consider the impact of our decisions on the next seven generations’.
6.1 – List the countries to which Levi Strauss & Co. markets through the Web site http://www.levi.com. How do the product offerings differ between the U.S. and European selections?
The countries that Levi markets to are: U.S., Canada, Belgium, Czech Republic, Denmark, Deutschland, Spain, Finland, France, Greece, Hungary, Ireland, Italy, Netherlands, Norway, Osterreich, Poccna, Polaska, Portugal, Schweiz, Sweden, UK, Argentina, Brazil, Centro America, Chile, Colombia, Ecuador, Mexico, Paraguay, Peru, Uruguay, Venezuela, Australia, China, Hong Kong, India, Indonesia, Japan, Korea, Malaysia, New Zealand, Pakistan, Philippines, Singapore, and Taiwan. I thought the products were different between the U.S. and Europe in that the Europe products were more trendy and stylish.
Websites
VALS Survey
The VALS survey is useful for research because it tells about each type of consumer and their dominant approach to life. For instance, I was an innovator and one of the characteristics was that image was important to innovators. This would help marketers know what I would be looking for. I was also an achiever, which said I was active in the marketplace. If a company was looking to market a new or current product they could target the achiever type.
Chapter 7
Review and Applications
7.2 – Go to the websites of JCPenney, http://www.jcpenney.com and Target, http://www.target.com. Compare the presentation of women’s fashions at the Web sites. What are the major differences? Which site is more designer focused, and which is more brand focused? Which company’s approach do you think will appeal more to the “Holy Grail” target market of 25- to 35- year old women?
I thought JCPenney’s Web site was a little easier to navigate through. Target’s Web site was really busy. Most 25-35 year old women use the internet so Target’s Web site wouldn’t be a problem for them, but for older women who aren’t familiar with the internet, it could be a little tricky for them. The JCPenney Web site was more designer focused. They had “meet our designers” right in the middle of the page for women. The Target Web site was more brand focused because they had the different clothing categories toward the bottom of the page with the brands right on their first page. Being in the age range of 25-35 years old I found the JCPenney Web site easier and more clean looking than the Target Web site.
9.1 – Choose a product category (e.g., pick-up trucks), and identify at least three different brands and their respective positioning strategies. How is each position communicated to the target audience?
I chose women’s running shoes as a product category. The three brands I looked at were Nike, Addidas, and New Balance. I looked these three brands up on their Web sites. Nike’s Web site was very global friendly. They had the Web site in many different languages and set up for different countries. The options were all laid out in a neat fashion, which was easy to navigate through. They had the shopping section broken down by sport. They also had a Nike + running section where there was information about events and training tips. Nike used attributes, price, quality, product user, and emotion as their some of their positioning bases. When shopping you could see all the prices and they have a wide range of pricing, making it easy for anyone to afford their shoes. Nike also had a wide range of products for all age types and with all of their “extras” on their Web site makes the customer feel they can go to the Web site for things like the training tips and event information. The Addidas store also laid out the Web site by sport. They also had the prices on the Web site, which would fall under the price and quality positioning base. Addidas also uses the product user positioning base because they cater to different age ranges. Their Web site, however, was not as flashy as the Nike Web site. The New Balance Website was very flashy. They also used the price and quality positioning base. They had prices listed on the Web site with a range of prices. They also used the product user positioning base because they had products for different ages and gender. You could also look up the products by narrowing your choices by areas like technology and features.
Case Study/Application Exercise
Viva Las Vegas
1. What bases does the LVCVA use for segmenting its target market?
The LVCVA uses geographic segmentation by going to different areas of the US and Canada. They also used income segmentation by doing research on median household incomes. The LVCVA used ethnic segmentation by doing research and then advertising to the different ethnic groups that frequently visited Las Vegas. They also used benefit segmentation by advertising the benefits visitors would receive from visiting Las Vegas.
2. Does the LVCVA use an undifferentiated, a concentrated, or a multisegment targeting strategy? Why? Should the LVCVA be concerned with cannibalization?
I think the LVCVA uses the multisegment targeting strategy because they choose different market segments and develop a different marketing mix for each. They use different marketing mixes for the ethnic groups versus the business people they advertise to. I don’t think the LVCVA should be concerned with cannibalization because I don’t think there will be another city like Las Vegas built in the US any time soon.
3. Think of the many reasons a person might want to travel to Las Vegas. Given a target market of all US citizens aged 18 to 75, speculate how you might segment by lifestyle.
I would segment by dividing the age groups into three sections. I would then use different marketing mixed for each group. For the younger age group I would market more of the party and club atmosphere Las Vegas offers. For the middle aged group I would market the shows, restaurants and more of the casino gambling. For the older group I would market more of the hotel amenities and shows.
4. What do you think makes the LVCVA so successful?
I think the LVCVA is successful because they do so much research on their customers and then design a different marketing mix for each group. They have a wide range of groups they advertise to helping bring in more visitors. The LVCVA thinks outside the box when it comes to marketing.
Websites
Wikipedia
7.2 – Go to the websites of JCPenney, http://www.jcpenney.com and Target, http://www.target.com. Compare the presentation of women’s fashions at the Web sites. What are the major differences? Which site is more designer focused, and which is more brand focused? Which company’s approach do you think will appeal more to the “Holy Grail” target market of 25- to 35- year old women?
I thought JCPenney’s Web site was a little easier to navigate through. Target’s Web site was really busy. Most 25-35 year old women use the internet so Target’s Web site wouldn’t be a problem for them, but for older women who aren’t familiar with the internet, it could be a little tricky for them. The JCPenney Web site was more designer focused. They had “meet our designers” right in the middle of the page for women. The Target Web site was more brand focused because they had the different clothing categories toward the bottom of the page with the brands right on their first page. Being in the age range of 25-35 years old I found the JCPenney Web site easier and more clean looking than the Target Web site.
9.1 – Choose a product category (e.g., pick-up trucks), and identify at least three different brands and their respective positioning strategies. How is each position communicated to the target audience?
I chose women’s running shoes as a product category. The three brands I looked at were Nike, Addidas, and New Balance. I looked these three brands up on their Web sites. Nike’s Web site was very global friendly. They had the Web site in many different languages and set up for different countries. The options were all laid out in a neat fashion, which was easy to navigate through. They had the shopping section broken down by sport. They also had a Nike + running section where there was information about events and training tips. Nike used attributes, price, quality, product user, and emotion as their some of their positioning bases. When shopping you could see all the prices and they have a wide range of pricing, making it easy for anyone to afford their shoes. Nike also had a wide range of products for all age types and with all of their “extras” on their Web site makes the customer feel they can go to the Web site for things like the training tips and event information. The Addidas store also laid out the Web site by sport. They also had the prices on the Web site, which would fall under the price and quality positioning base. Addidas also uses the product user positioning base because they cater to different age ranges. Their Web site, however, was not as flashy as the Nike Web site. The New Balance Website was very flashy. They also used the price and quality positioning base. They had prices listed on the Web site with a range of prices. They also used the product user positioning base because they had products for different ages and gender. You could also look up the products by narrowing your choices by areas like technology and features.
Case Study/Application Exercise
Viva Las Vegas
1. What bases does the LVCVA use for segmenting its target market?
The LVCVA uses geographic segmentation by going to different areas of the US and Canada. They also used income segmentation by doing research on median household incomes. The LVCVA used ethnic segmentation by doing research and then advertising to the different ethnic groups that frequently visited Las Vegas. They also used benefit segmentation by advertising the benefits visitors would receive from visiting Las Vegas.
2. Does the LVCVA use an undifferentiated, a concentrated, or a multisegment targeting strategy? Why? Should the LVCVA be concerned with cannibalization?
I think the LVCVA uses the multisegment targeting strategy because they choose different market segments and develop a different marketing mix for each. They use different marketing mixes for the ethnic groups versus the business people they advertise to. I don’t think the LVCVA should be concerned with cannibalization because I don’t think there will be another city like Las Vegas built in the US any time soon.
3. Think of the many reasons a person might want to travel to Las Vegas. Given a target market of all US citizens aged 18 to 75, speculate how you might segment by lifestyle.
I would segment by dividing the age groups into three sections. I would then use different marketing mixed for each group. For the younger age group I would market more of the party and club atmosphere Las Vegas offers. For the middle aged group I would market the shows, restaurants and more of the casino gambling. For the older group I would market more of the hotel amenities and shows.
4. What do you think makes the LVCVA so successful?
I think the LVCVA is successful because they do so much research on their customers and then design a different marketing mix for each group. They have a wide range of groups they advertise to helping bring in more visitors. The LVCVA thinks outside the box when it comes to marketing.
Websites
Wikipedia
- Helps easily identify perceptions of customers.
- Helps display the consumer's ideal points.
- Helps when a company is considering a new product.
- Information that comes from the consumer.
- Helps with competition.
Sunday, March 22, 2009
Chapter 6
3.1 – Why is relationship or personal selling the best way to promote in business marketing?
A lot of countries like to get the relationship part of business down before they will actually make a purchase or decision. When companies build relationships they have a competitive advantage over other companies selling the same product or service. If a company decides to create relationships with other companies they have to work at that relationship to maintain it. When companies create these relationships there is a mutual trust formed between the two companies.
5.1 – Explain how a marketer can use the Web site www.census.gov/epcd/www/naics.html to convert SIC data to the NAICS.
The marketer can use the NAICS update process fact sheet if there is a company that needs to update their NAICS number. They would have to find the specific NAICS definition of their company, which they can find under the tools section.
5.2 – Pick a product and determine its NAICS code. How easy was it to trace the groups and sectors?
I work in healthcare so I decided to look up clinics. I thought it was very easy to determine its NAICS code. Itwas easy because I already knew the industry and type of healthcare facility I was looking for.
Websites
United States – Basic Counts – American FactFinder
There are more females than males in the US.
The average mortgage payment was high.
The time it takes to get to work on average is 25 minutes.
The average income per household was 50,000.
The population of the US.
A lot of countries like to get the relationship part of business down before they will actually make a purchase or decision. When companies build relationships they have a competitive advantage over other companies selling the same product or service. If a company decides to create relationships with other companies they have to work at that relationship to maintain it. When companies create these relationships there is a mutual trust formed between the two companies.
5.1 – Explain how a marketer can use the Web site www.census.gov/epcd/www/naics.html to convert SIC data to the NAICS.
The marketer can use the NAICS update process fact sheet if there is a company that needs to update their NAICS number. They would have to find the specific NAICS definition of their company, which they can find under the tools section.
5.2 – Pick a product and determine its NAICS code. How easy was it to trace the groups and sectors?
I work in healthcare so I decided to look up clinics. I thought it was very easy to determine its NAICS code. Itwas easy because I already knew the industry and type of healthcare facility I was looking for.
Websites
United States – Basic Counts – American FactFinder
There are more females than males in the US.
The average mortgage payment was high.
The time it takes to get to work on average is 25 minutes.
The average income per household was 50,000.
The population of the US.
Chapter 5
Review and Applications
4.1 – Describe the three categories of consumer decision-making behavior. Name typical products for which each type of consumer behavior is used.
The first category is the routine response behavior. This would involve consumers purchasing goods or services frequently that are low cost and don’t require decision or search time. An example of this would be shampoo or soap. The second category is limited decision making. This category would involve more time to gather information and decide on a new or unfamiliar brand within a product category you are familiar with. This could include products that you frequently use like laundry detergent or dish soap. If the store is out of your regular product you would need to find a similar product to use. The third category is extensive decision making. This is when a consumer buys a product that they’re unfamiliar with and that they rarely purchase. It tends to be more on the expensive side. An example of a product in this category for most people would be buying a car. Since I don’t buy cars everyday it would be a product where I would want to do a lot of research and price shopping.
4.2 – Describe the level of involvement and the involvement factors likely to be associated with buying a new computer. Do you think Apple’s Web site simplifies or complicates the process for the average consumer? Explain.
I would say the level of involvement would be the limited decision making. I think most consumers today are familiar with computers, but might not know all of the available brands and features that are out there. Some of the involvement factors would include:
· Previous experience – if the consumer has previous experience with a certain brand of computer than they will more than likely buy that same brand. If the consumer is not familiar with computers they will be more involved in the purchase.
· Interest – if the consumer is interested in the new computer for a specific reason then they will more likely be involved versus if they’re just looking for a computer to play around with.
· Perceived risk of negative consequences – if the consumer feels the financial risk, the social risk, and the psychological risk the more involved they will be in the purchase.
· Situation – if the consumer feels they need to change the decision because of a certain situation they more they will become involved in the purchase.
· Social visibility – if the consumer feels the computer would be on social display then they would become more involved.
I think the Apple Web site was very easy to navigate through and choose which computer you would like to purchase. You could also pick all of the features you wanted. I think it would be an easy web site to use for everyone no matter the experience with the internet.
6.1 – Family members play many different roles in the buying process: initiator, influencer, decision maker, purchaser, and consumer. Identify the person in your family who might play each of these roles in the purchase of a dinner at Pizza Hut, a summer vacation, Froot Loops breakfast cereal, an Abercrombie & Fitch sweater, golf clubs, an Internet service provider, and a new car.
Since I’m not married I chose my family growing up to use for this example. I have three sisters, one older and two younger.
- Dinner at Pizza Hut – sister #3 or sister #4 would be the initiators in this situation. They were the pickiest eaters so we basically had to go wherever they would eat something. My mom would have been the influencer because she would want to watch the price. My dad would have been the decision maker and purchaser. The whole family would have been the consumers.
- Summer vacation – mom and dad would have been the initiators in this situation. My sisters and I would have been the influencers. My parents usually let us have a say in where we wanted to go. My parents would be the final decision makers and purchasers because they had the money. We all were the consumers.
- Froot loops – sister #3 would have been the initiator for this situation. She really like cereal and when we went to the grocery store she let everyone know what cereal she wanted. My mom would have been the influencer (depending on price), the decision maker and the purchaser. Sister #3 would have been the consumer along with anyone else that ate the cereal.
- Abercrombie & Fitch sweater – I probably would have been the influencer on this one in my family. I was the sister who was into clothes. The reality of this situation would have been my mom being the influencer and finding out the cost and I wouldn’t be able to buy the sweater so there wouldn’t be a purchaser or consumer in my family.
- Golf clubs – my parents would be all of the above on golf clubs because they’re the only ones that golf in the family.
- Internet service provider – since everyone has moved out of my parent’s house, they would be responsible for all of the roles again in this situation.
- New car – if the car was for my parents they would make all of the decisions. When they bought us our first car we were usually the initiators, but they took on the rest of the roles.
8.1 – How do beliefs and attitudes influence consumer behavior? How can negative attitudes toward a product be changed? How can marketers alter beliefs about a product? Give some examples of how marketers have changed negative attitudes about a product or added or altered beliefs about a product.
Beliefs are knowledge that each individual holds to be true in their world. For example a consumer may believe that the brand of a product they’re currently using is the best brand in that category. Those beliefs will shape the consumer’s attitude for that product. If the belief is strong for a certain brand then the attitude will be positive. To change negative attitudes toward a product would have to start with turning that negative attitude into a positive attitude. This may include the company changing things around and making the product more convenient. To change beliefs the company may have to add new products or emphasize the importance of some beliefs over others. An example of how marketers have changed beliefs about a product was the Nabisco Company changing the belief that they only sell junk food. They came out with the new 100 calorie packs suggesting they can cater to a public trying to lose or watch their weight.
4.1 – Describe the three categories of consumer decision-making behavior. Name typical products for which each type of consumer behavior is used.
The first category is the routine response behavior. This would involve consumers purchasing goods or services frequently that are low cost and don’t require decision or search time. An example of this would be shampoo or soap. The second category is limited decision making. This category would involve more time to gather information and decide on a new or unfamiliar brand within a product category you are familiar with. This could include products that you frequently use like laundry detergent or dish soap. If the store is out of your regular product you would need to find a similar product to use. The third category is extensive decision making. This is when a consumer buys a product that they’re unfamiliar with and that they rarely purchase. It tends to be more on the expensive side. An example of a product in this category for most people would be buying a car. Since I don’t buy cars everyday it would be a product where I would want to do a lot of research and price shopping.
4.2 – Describe the level of involvement and the involvement factors likely to be associated with buying a new computer. Do you think Apple’s Web site simplifies or complicates the process for the average consumer? Explain.
I would say the level of involvement would be the limited decision making. I think most consumers today are familiar with computers, but might not know all of the available brands and features that are out there. Some of the involvement factors would include:
· Previous experience – if the consumer has previous experience with a certain brand of computer than they will more than likely buy that same brand. If the consumer is not familiar with computers they will be more involved in the purchase.
· Interest – if the consumer is interested in the new computer for a specific reason then they will more likely be involved versus if they’re just looking for a computer to play around with.
· Perceived risk of negative consequences – if the consumer feels the financial risk, the social risk, and the psychological risk the more involved they will be in the purchase.
· Situation – if the consumer feels they need to change the decision because of a certain situation they more they will become involved in the purchase.
· Social visibility – if the consumer feels the computer would be on social display then they would become more involved.
I think the Apple Web site was very easy to navigate through and choose which computer you would like to purchase. You could also pick all of the features you wanted. I think it would be an easy web site to use for everyone no matter the experience with the internet.
6.1 – Family members play many different roles in the buying process: initiator, influencer, decision maker, purchaser, and consumer. Identify the person in your family who might play each of these roles in the purchase of a dinner at Pizza Hut, a summer vacation, Froot Loops breakfast cereal, an Abercrombie & Fitch sweater, golf clubs, an Internet service provider, and a new car.
Since I’m not married I chose my family growing up to use for this example. I have three sisters, one older and two younger.
- Dinner at Pizza Hut – sister #3 or sister #4 would be the initiators in this situation. They were the pickiest eaters so we basically had to go wherever they would eat something. My mom would have been the influencer because she would want to watch the price. My dad would have been the decision maker and purchaser. The whole family would have been the consumers.
- Summer vacation – mom and dad would have been the initiators in this situation. My sisters and I would have been the influencers. My parents usually let us have a say in where we wanted to go. My parents would be the final decision makers and purchasers because they had the money. We all were the consumers.
- Froot loops – sister #3 would have been the initiator for this situation. She really like cereal and when we went to the grocery store she let everyone know what cereal she wanted. My mom would have been the influencer (depending on price), the decision maker and the purchaser. Sister #3 would have been the consumer along with anyone else that ate the cereal.
- Abercrombie & Fitch sweater – I probably would have been the influencer on this one in my family. I was the sister who was into clothes. The reality of this situation would have been my mom being the influencer and finding out the cost and I wouldn’t be able to buy the sweater so there wouldn’t be a purchaser or consumer in my family.
- Golf clubs – my parents would be all of the above on golf clubs because they’re the only ones that golf in the family.
- Internet service provider – since everyone has moved out of my parent’s house, they would be responsible for all of the roles again in this situation.
- New car – if the car was for my parents they would make all of the decisions. When they bought us our first car we were usually the initiators, but they took on the rest of the roles.
8.1 – How do beliefs and attitudes influence consumer behavior? How can negative attitudes toward a product be changed? How can marketers alter beliefs about a product? Give some examples of how marketers have changed negative attitudes about a product or added or altered beliefs about a product.
Beliefs are knowledge that each individual holds to be true in their world. For example a consumer may believe that the brand of a product they’re currently using is the best brand in that category. Those beliefs will shape the consumer’s attitude for that product. If the belief is strong for a certain brand then the attitude will be positive. To change negative attitudes toward a product would have to start with turning that negative attitude into a positive attitude. This may include the company changing things around and making the product more convenient. To change beliefs the company may have to add new products or emphasize the importance of some beliefs over others. An example of how marketers have changed beliefs about a product was the Nabisco Company changing the belief that they only sell junk food. They came out with the new 100 calorie packs suggesting they can cater to a public trying to lose or watch their weight.
Tuesday, March 10, 2009
Chapter 4
Review and Applications
2.1 – Rubbermaid, the U.S. manufacturer of kitchen products and other household items, is considering moving to global marketing standardization. What are the pros and cons of this strategy?
Pros – Some consumers from different countries might have seen the Rubbermaid products and they would like to try them out as they had seen them in the U.S. Some countries look at the U.S. as a leader and try to follow the things we do and the products we use. This would be an example of a different country wanting to use the same product as the U.S. Some other countries may use the same products that Rubbermaid sells in the U.S. and they would be able to get them at a cheaper price if Rubbermaid sold the products in their country. It would also be beneficial to Rubbermaid because they could possibly save on production and marketing costs. Rubbermaid may also carry products, in which there are no similar products that can’t be found in other countries.
Cons – Other countries might not use the same products Rubbermaid sells, which would not help Rubbermaid’s profit in that new country. Rubbermaid might have to modify the products for different countries and that could cost more than it’s worth. The countries Rubbermaid is planning to sell in may have a market that has many similar products causing Rubbermaid to not gain much market share.
4.2 Explain how the U.S. Commercial Service can help companies wanting to enter the international market.
The U.S. Commercial Service offers help to companies look at increasing their business by exporting. It also helps companies that are currently exporting to increase their business. They offer help through the use of trade specialists strategically placed throughout the U.S. and other countries. The primary services they offer to companies are marketing research, trade events, consulting, and locating qualified buyers and partners. The U.S. Commercial Service has recently added a website in which companies can go to get one-on-one export counseling and can complete a questionnaire that helps lead to exporting in global markets. They also promote and protect U.S. commercial interests abroad.
4.3 What are some of the advantages and potential disadvantages of entering a joint venture?
Advantages – Joint ventures are a quick and easy way to bring your company into a global market. It is also an inexpensive way to go global. The products that are created from the joint venture may become great, which increases company profit.
Potential disadvantages – Many joint ventures fail. One company may become a victim to takeover by the other company they have joined with. The joint venture partners may not agree on the aspects of running a business such as management and policies causing the joint venture to fail.
4.4 – Why is direct investment considered risky?
Direct investment is risky because there are sometimes national differences in the way businesses are run. The policies, management, currencies, culture and geography might be different from the home country. The domestic company must make sure they’re investing in a company that will increase the profits. Transferring resources to the new investment may also be tricky for a domestic business.
5.3 – Explain how exchange rates can affect a firm’s global sales.
If the currency in the country that is exporting products depreciates, it will cost more for their residents to buy products from other countries. Then these other countries can now buy products from the exporting country at a lower price. If the currency in the country that is exporting products appreciates, it will be cheaper for their residents to purchase products from other countries.
Case Study/Application Exercise
Marketing Miscue: Vermont Teddy Bear
1. Did Vermont Teddy Bear Company violate the requirement of corporate social responsibility? Why or why not?
Part of the definition of corporate social responsibility is the company taking responsibility for the impact of their activities on the consumers and the community. The Vermont Teddy Bear company did not take responsibility. They kept selling the bears with the straitjackets even though the public was upset. They also did not take ensure their adherence to ethical standards. The company did not think of the mentally ill when creating the straitjacket, but even when it was brought to their attention they kept promoting their product.
2. Was the controversy a positive or negative for the company? For Robert?
I think the controversy was both positive and negative for the company. It made the company more popular increasing their sales, but it also gave the company a bad rapport. The controversy was negative for their CEO, Robert. She was asked to give up her seat on the board of one of Vermont’s largest hospitals for her perceived belittling of the mentally ill. Robert seemed to be more concerned with the profit of the company versus the feelings of the community.
Websites
The CAN-SPAM Act
- Long
- Informational
- Legal
- Boring
- Protection
Look-Look
· Bright
· Large
· Looks like an eye
· Looks like a cd
· Modern looking
2.1 – Rubbermaid, the U.S. manufacturer of kitchen products and other household items, is considering moving to global marketing standardization. What are the pros and cons of this strategy?
Pros – Some consumers from different countries might have seen the Rubbermaid products and they would like to try them out as they had seen them in the U.S. Some countries look at the U.S. as a leader and try to follow the things we do and the products we use. This would be an example of a different country wanting to use the same product as the U.S. Some other countries may use the same products that Rubbermaid sells in the U.S. and they would be able to get them at a cheaper price if Rubbermaid sold the products in their country. It would also be beneficial to Rubbermaid because they could possibly save on production and marketing costs. Rubbermaid may also carry products, in which there are no similar products that can’t be found in other countries.
Cons – Other countries might not use the same products Rubbermaid sells, which would not help Rubbermaid’s profit in that new country. Rubbermaid might have to modify the products for different countries and that could cost more than it’s worth. The countries Rubbermaid is planning to sell in may have a market that has many similar products causing Rubbermaid to not gain much market share.
4.2 Explain how the U.S. Commercial Service can help companies wanting to enter the international market.
The U.S. Commercial Service offers help to companies look at increasing their business by exporting. It also helps companies that are currently exporting to increase their business. They offer help through the use of trade specialists strategically placed throughout the U.S. and other countries. The primary services they offer to companies are marketing research, trade events, consulting, and locating qualified buyers and partners. The U.S. Commercial Service has recently added a website in which companies can go to get one-on-one export counseling and can complete a questionnaire that helps lead to exporting in global markets. They also promote and protect U.S. commercial interests abroad.
4.3 What are some of the advantages and potential disadvantages of entering a joint venture?
Advantages – Joint ventures are a quick and easy way to bring your company into a global market. It is also an inexpensive way to go global. The products that are created from the joint venture may become great, which increases company profit.
Potential disadvantages – Many joint ventures fail. One company may become a victim to takeover by the other company they have joined with. The joint venture partners may not agree on the aspects of running a business such as management and policies causing the joint venture to fail.
4.4 – Why is direct investment considered risky?
Direct investment is risky because there are sometimes national differences in the way businesses are run. The policies, management, currencies, culture and geography might be different from the home country. The domestic company must make sure they’re investing in a company that will increase the profits. Transferring resources to the new investment may also be tricky for a domestic business.
5.3 – Explain how exchange rates can affect a firm’s global sales.
If the currency in the country that is exporting products depreciates, it will cost more for their residents to buy products from other countries. Then these other countries can now buy products from the exporting country at a lower price. If the currency in the country that is exporting products appreciates, it will be cheaper for their residents to purchase products from other countries.
Case Study/Application Exercise
Marketing Miscue: Vermont Teddy Bear
1. Did Vermont Teddy Bear Company violate the requirement of corporate social responsibility? Why or why not?
Part of the definition of corporate social responsibility is the company taking responsibility for the impact of their activities on the consumers and the community. The Vermont Teddy Bear company did not take responsibility. They kept selling the bears with the straitjackets even though the public was upset. They also did not take ensure their adherence to ethical standards. The company did not think of the mentally ill when creating the straitjacket, but even when it was brought to their attention they kept promoting their product.
2. Was the controversy a positive or negative for the company? For Robert?
I think the controversy was both positive and negative for the company. It made the company more popular increasing their sales, but it also gave the company a bad rapport. The controversy was negative for their CEO, Robert. She was asked to give up her seat on the board of one of Vermont’s largest hospitals for her perceived belittling of the mentally ill. Robert seemed to be more concerned with the profit of the company versus the feelings of the community.
Websites
The CAN-SPAM Act
- Long
- Informational
- Legal
- Boring
- Protection
Look-Look
· Bright
· Large
· Looks like an eye
· Looks like a cd
· Modern looking
Sunday, March 8, 2009
Chapter 3
Review and Applications
2.4 – Do you think that a code of ethics will actually influence an employee’s behavior? Why or why not?
I think it depends on the company and the code of ethics. If the company and top management support the code of ethics and follow it too it could be successful in a company. If the management is stressing frequently the importance of the code employees are more likely to follow the code of ethics. Also, if the code of ethics is helpful, not too vague or too detailed, the employees will be more likely to use it. I think employees would use it to minimize confusion about a decision that needs to be made and what the company would think about the decision. I know I have been in that situation where you just want to look at a guideline or checklist that has been used in the past to make similar decisions.
5.1 – Baby boomers in America are aging. Describe how this might affect the marketing mix for the following:
a. Bally’s Health Club – I think this category will be divided pretty equally with people wanting to go to they gym if they’re not already, or people leaving the gym or not wanting to go at all. There will either be the people who want to do something about their health to avoid future medical costs so they will join a gym, or you will have the total opposite. These people will not want to work out or will just physically not be able to work out at a gym. The company would have to specifically promote to an older population and the products that would help out the older population.
b. McDonalds – The product will probably not change with the aging of the baby boomers. Price would have to be kept as low as possible because the baby boomers will be on a fixed budget. Promotion will work equally well as it does now. Since there a number of restaurants around the world the place would be just as convenient as it is now.
c. Whirlpool Corporation – They will have to make new products to make life easier or current products would have to become more efficient. Prices would have to stay as low as possible with the baby boomer’s fixed budget. Place would be equally effective as it is now and they could change the promotion to the easier to use appliances.
d. The state of Florida – I think the state of Florida will see more people permanently moving down there, moving down there during seasonal times, or just more people visiting. With half of the baby boomer liking travel and staying busy they will likely spend some time in Florida. The tourism industry should try to keep the price of travel to Florida as low as possible.
e. Target Stores – The pharmacies and grocery sections will likely be busier with the aging baby boomers. They would have to keep the same high quality of goods at their affordable prices. Place is convenient because of the many Target locations and they could maybe promote to an older population.
9.3 – What topics are currently receiving attention in FDA news? What affect has the attention had on market share?
- There is a current shortage of the drug Oxycodone. This shortage is due to two different pharmaceutical companies, KV Pharmaceutical and Actavis, calling large scale recalls on the product. This is going to cause the market share of these two companies to tremendously drop. The other three companies listed in the article; Mallinckrodt, Xanodyne Pharmaceuticals and Vintage Pharmaceuticals will most likely gain market share.
- A bill has been introduced to allow pharmacists and wholesalers to import prescription drugs from Australia, New Zealand, Japan, Switzerland, and other EU countries. This would increase market share to the companies in these other countries and would decrease the market share in the companies customers are currently buying their prescription drugs through.
- Testing of contact lenses and cleaning solutions could become more stringent when the FDA revises its guidance for the products. A panel of experts met with the FDA last month to discuss the stricter standards to evaluate the antimicrobial activity of some of the products. This would affect market share if they do not follow the new guidelines.
2.4 – Do you think that a code of ethics will actually influence an employee’s behavior? Why or why not?
I think it depends on the company and the code of ethics. If the company and top management support the code of ethics and follow it too it could be successful in a company. If the management is stressing frequently the importance of the code employees are more likely to follow the code of ethics. Also, if the code of ethics is helpful, not too vague or too detailed, the employees will be more likely to use it. I think employees would use it to minimize confusion about a decision that needs to be made and what the company would think about the decision. I know I have been in that situation where you just want to look at a guideline or checklist that has been used in the past to make similar decisions.
5.1 – Baby boomers in America are aging. Describe how this might affect the marketing mix for the following:
a. Bally’s Health Club – I think this category will be divided pretty equally with people wanting to go to they gym if they’re not already, or people leaving the gym or not wanting to go at all. There will either be the people who want to do something about their health to avoid future medical costs so they will join a gym, or you will have the total opposite. These people will not want to work out or will just physically not be able to work out at a gym. The company would have to specifically promote to an older population and the products that would help out the older population.
b. McDonalds – The product will probably not change with the aging of the baby boomers. Price would have to be kept as low as possible because the baby boomers will be on a fixed budget. Promotion will work equally well as it does now. Since there a number of restaurants around the world the place would be just as convenient as it is now.
c. Whirlpool Corporation – They will have to make new products to make life easier or current products would have to become more efficient. Prices would have to stay as low as possible with the baby boomer’s fixed budget. Place would be equally effective as it is now and they could change the promotion to the easier to use appliances.
d. The state of Florida – I think the state of Florida will see more people permanently moving down there, moving down there during seasonal times, or just more people visiting. With half of the baby boomer liking travel and staying busy they will likely spend some time in Florida. The tourism industry should try to keep the price of travel to Florida as low as possible.
e. Target Stores – The pharmacies and grocery sections will likely be busier with the aging baby boomers. They would have to keep the same high quality of goods at their affordable prices. Place is convenient because of the many Target locations and they could maybe promote to an older population.
9.3 – What topics are currently receiving attention in FDA news? What affect has the attention had on market share?
- There is a current shortage of the drug Oxycodone. This shortage is due to two different pharmaceutical companies, KV Pharmaceutical and Actavis, calling large scale recalls on the product. This is going to cause the market share of these two companies to tremendously drop. The other three companies listed in the article; Mallinckrodt, Xanodyne Pharmaceuticals and Vintage Pharmaceuticals will most likely gain market share.
- A bill has been introduced to allow pharmacists and wholesalers to import prescription drugs from Australia, New Zealand, Japan, Switzerland, and other EU countries. This would increase market share to the companies in these other countries and would decrease the market share in the companies customers are currently buying their prescription drugs through.
- Testing of contact lenses and cleaning solutions could become more stringent when the FDA revises its guidance for the products. A panel of experts met with the FDA last month to discuss the stricter standards to evaluate the antimicrobial activity of some of the products. This would affect market share if they do not follow the new guidelines.
Chapter 2
Review and Applications
2.1 – How can a new company best define its business mission statement? Can you find examples of good and bad mission statements in the internet? How might you improve the bad ones?
When writing a mission statement the new company should analyze the benefits required by the present and potential customers. The company should also analyze the existing and anticipated environmental conditions. The statement should focus on the markets the company is going to serve not necessarily the product they will be offering. The mission statement also creates boundaries for decisions, objectives, and strategies.
I found a couple good mission statements online. This one is from Southwest Airlines; the mission of Southwest Airlines is dedication to the highest quality of Customer Service delivered with a sense of warmth, friendliness, individual pride, and Company Spirit. This shows the company is committed to customer service and that is ok to be different from the other companies in that same industry. The other mission statement was from the Hershey company; bringing sweet memories of Hershey happiness to the world everyday. I think this mission statement focuses on all customers and on all Hershey products. One of the mission statements I found that I didn’t think was very good was from AutoNation; to be America’s best run, most profitable automotive retailer. I thought this was very company focused and not customer focused. How would customers realize the benefits of this company?
4.1 – Perform a mini-situation on one of the companies listed below by stating one strength, one weakness, one opportunity, and one threat.
I chose the United States Postal Service (USPS). I thought there were many benefits when going to the website that I never knew existed. There is a shipping online section where you can do everything from start to finish. You can change your address online through USPS now if you move. You can also track your packages and even buy stamps online. I think a weakness of the USPS would be the man hours used to deliver the mail to every address everyday and the wide area it covers. The competitors of USPS only deliver packages sporadically. Also, the image of USPS being an old and slow delivery service doesn’t help any. An opportunity of the USPS is that they receive revenues from direct to consumer advertising through “junk mail”. One of their main threats would be the competitors such as UPS and FedEx. These companies only deliver packages on a needed basis saving on delivery costs.
Case Study/Application Exercise
Cirque Du Soleil
1. Outline a rudimentary SWOT analysis for Cirque du Soleil.
Some strengths for Cirque du Soleil would be the popularity and the profit that this company makes. They use creative employees to help keep new ideas coming. I think the image the company has as a fun, exciting show would also be a strength for them. A weakness for this company would be the costs dealing with production of the shows. Some of the opportunities of the company would be the partnering with the casinos. This helps the company by the casinos sharing in some of the costs. The number of people they have on hand that could be hired is another opportunity for them because they would be able to hire qualified people at any given moment. A threat for the company would be the competition of the other shows in Vegas and the Broadway shows.
2. List and describe at least three keys to Cirque du Soleil’s competitive advantage.
I think the image of Cirque du Soleil is one of its key competitive advantages. Many people believe it’s one of the most successful entertainment companies in the world. The fact that the company makes a profit also shows it is superior to some of the other shows going on. Partnering with the casinos and places like Disney World also help to promote the company and help cover some of the production costs. Another unique feature of this company would be the two men who run the company. They have come up with a lot of great ideas and have even use the ideas of the creative employees for the shows. Putting the shows on the television has also given the company a competitive advantage. This would bring on customers that can’t attend a live event.
3. Explain how Cirque du Soleil implements, evaluates, and controls the elements of its marketing plan.
I think the elements of Cirque du Soleil’s marketing plan are known by everyone in the company. This happens because they use the employee’s ideas and let them be involved in decisions. They have a great product (the different shows) and they market the product in many different places such as the television, Disney World, traveling world tours and casinos, which helps in gaining new customers. The promotion of the shows can be seen by many. It seems at though the company also evaluates and controls their marketing plan by coming with new shows and performing all over the world. The creativity of the company helps their strategic planning to be effective.
2.1 – How can a new company best define its business mission statement? Can you find examples of good and bad mission statements in the internet? How might you improve the bad ones?
When writing a mission statement the new company should analyze the benefits required by the present and potential customers. The company should also analyze the existing and anticipated environmental conditions. The statement should focus on the markets the company is going to serve not necessarily the product they will be offering. The mission statement also creates boundaries for decisions, objectives, and strategies.
I found a couple good mission statements online. This one is from Southwest Airlines; the mission of Southwest Airlines is dedication to the highest quality of Customer Service delivered with a sense of warmth, friendliness, individual pride, and Company Spirit. This shows the company is committed to customer service and that is ok to be different from the other companies in that same industry. The other mission statement was from the Hershey company; bringing sweet memories of Hershey happiness to the world everyday. I think this mission statement focuses on all customers and on all Hershey products. One of the mission statements I found that I didn’t think was very good was from AutoNation; to be America’s best run, most profitable automotive retailer. I thought this was very company focused and not customer focused. How would customers realize the benefits of this company?
4.1 – Perform a mini-situation on one of the companies listed below by stating one strength, one weakness, one opportunity, and one threat.
I chose the United States Postal Service (USPS). I thought there were many benefits when going to the website that I never knew existed. There is a shipping online section where you can do everything from start to finish. You can change your address online through USPS now if you move. You can also track your packages and even buy stamps online. I think a weakness of the USPS would be the man hours used to deliver the mail to every address everyday and the wide area it covers. The competitors of USPS only deliver packages sporadically. Also, the image of USPS being an old and slow delivery service doesn’t help any. An opportunity of the USPS is that they receive revenues from direct to consumer advertising through “junk mail”. One of their main threats would be the competitors such as UPS and FedEx. These companies only deliver packages on a needed basis saving on delivery costs.
Case Study/Application Exercise
Cirque Du Soleil
1. Outline a rudimentary SWOT analysis for Cirque du Soleil.
Some strengths for Cirque du Soleil would be the popularity and the profit that this company makes. They use creative employees to help keep new ideas coming. I think the image the company has as a fun, exciting show would also be a strength for them. A weakness for this company would be the costs dealing with production of the shows. Some of the opportunities of the company would be the partnering with the casinos. This helps the company by the casinos sharing in some of the costs. The number of people they have on hand that could be hired is another opportunity for them because they would be able to hire qualified people at any given moment. A threat for the company would be the competition of the other shows in Vegas and the Broadway shows.
2. List and describe at least three keys to Cirque du Soleil’s competitive advantage.
I think the image of Cirque du Soleil is one of its key competitive advantages. Many people believe it’s one of the most successful entertainment companies in the world. The fact that the company makes a profit also shows it is superior to some of the other shows going on. Partnering with the casinos and places like Disney World also help to promote the company and help cover some of the production costs. Another unique feature of this company would be the two men who run the company. They have come up with a lot of great ideas and have even use the ideas of the creative employees for the shows. Putting the shows on the television has also given the company a competitive advantage. This would bring on customers that can’t attend a live event.
3. Explain how Cirque du Soleil implements, evaluates, and controls the elements of its marketing plan.
I think the elements of Cirque du Soleil’s marketing plan are known by everyone in the company. This happens because they use the employee’s ideas and let them be involved in decisions. They have a great product (the different shows) and they market the product in many different places such as the television, Disney World, traveling world tours and casinos, which helps in gaining new customers. The promotion of the shows can be seen by many. It seems at though the company also evaluates and controls their marketing plan by coming with new shows and performing all over the world. The creativity of the company helps their strategic planning to be effective.
Chapter 1
Review and Applications
1.1 – What is the AMA? What does it do? How do its services benefit marketers? The American Marketing Association (AMA) is a professional association for individuals and organizations that are involved in the practice, teaching and studying of marketing worldwide. It benefits marketer’s everyday by allowing them to turn to the AMA for information, resources, education, training, and networking. The AMA stays current with the future market trends and is also a source for the field’s top magazines and journals.
2.2 – Donald E. Peterson, former chairman of the board of Ford Motor Company, remarked, “If we aren’t customer driven then our cars won’t be either.” Explain how this statement reflects the marketing concept.
The marketing concept says the justification for an organization’s existence is the satisfaction of customer’s wants and needs while meeting organizational objectives. I think Donald Peterson was saying that if his company isn’t customer driven, looking for the customer’s needs and wants, then they won’t be selling the cars leading to the company not making a profit and probably not existing anymore. The company needs to focus on the customer and their perceived value of the product versus what the company thinks is important.
2.3 – Give an example of a company that might be successfully following a production orientation. Why might a firm in this industry be successful following such an orientation?
An example of a company that would be product oriented would be a gas company like BP. This kind of company knows that they can produce a product that customers need no matter what other types of product they have. This industry is very successful with product orientation because they have a product that customers will always have a need for.
Case Studies/Application Exercises
Netflix Case
1. Describe the elements of the exchange process as they occur between Netflix and its customers.
For an exchange to take place there has to be five conditions that are met. The first one is that they must be at least two parties. In this case it would be the company Netflix and the customers. Second each party must have something that would be of value to the other party. Netflix has the DVDs that customers want to watch and the customers have money to pay for them. They also have DVDs that need to be returned to Netflix after watching them. Each party has to be capable of communication and delivery. Netflix has 34 strategically placed warehouses it uses to ship out the DVDs. They also have live operators to help out if there are any questions. The customers receive a paid packaging from Netflix to return the DVDs to the company. Each party has to be free to accept or reject the exchange offer. The customers can call the operators if they feel they haven’t received good service. The customers also have a choice of which subscription plan they would like to choose. Finally each party believes it’s desirable to deal with the other party. Netflix has a lot of options for their customers making them easy to work with.
2. Which marketing management philosophy does Netflix subscribe to?
I think Netflix uses empowerment as a management philosophy. They give a number of operators the ability to call the customers back and find out about the problem that occurred and how they can fix the problem. This gives the customers a feeling of customer satisfaction because of the attention they received from the company.
3. How does Netflix’s approach to relationship marketing increase customer satisfaction?
Netflix focuses on improving relationships with current customers by coming out with new features that the customers have requested. Customers can generate multiple lists for one address and can also share their lists with friends that they choose to be in their network. Netflix is also looking toward the future and different features that might be popular.
1.1 – What is the AMA? What does it do? How do its services benefit marketers? The American Marketing Association (AMA) is a professional association for individuals and organizations that are involved in the practice, teaching and studying of marketing worldwide. It benefits marketer’s everyday by allowing them to turn to the AMA for information, resources, education, training, and networking. The AMA stays current with the future market trends and is also a source for the field’s top magazines and journals.
2.2 – Donald E. Peterson, former chairman of the board of Ford Motor Company, remarked, “If we aren’t customer driven then our cars won’t be either.” Explain how this statement reflects the marketing concept.
The marketing concept says the justification for an organization’s existence is the satisfaction of customer’s wants and needs while meeting organizational objectives. I think Donald Peterson was saying that if his company isn’t customer driven, looking for the customer’s needs and wants, then they won’t be selling the cars leading to the company not making a profit and probably not existing anymore. The company needs to focus on the customer and their perceived value of the product versus what the company thinks is important.
2.3 – Give an example of a company that might be successfully following a production orientation. Why might a firm in this industry be successful following such an orientation?
An example of a company that would be product oriented would be a gas company like BP. This kind of company knows that they can produce a product that customers need no matter what other types of product they have. This industry is very successful with product orientation because they have a product that customers will always have a need for.
Case Studies/Application Exercises
Netflix Case
1. Describe the elements of the exchange process as they occur between Netflix and its customers.
For an exchange to take place there has to be five conditions that are met. The first one is that they must be at least two parties. In this case it would be the company Netflix and the customers. Second each party must have something that would be of value to the other party. Netflix has the DVDs that customers want to watch and the customers have money to pay for them. They also have DVDs that need to be returned to Netflix after watching them. Each party has to be capable of communication and delivery. Netflix has 34 strategically placed warehouses it uses to ship out the DVDs. They also have live operators to help out if there are any questions. The customers receive a paid packaging from Netflix to return the DVDs to the company. Each party has to be free to accept or reject the exchange offer. The customers can call the operators if they feel they haven’t received good service. The customers also have a choice of which subscription plan they would like to choose. Finally each party believes it’s desirable to deal with the other party. Netflix has a lot of options for their customers making them easy to work with.
2. Which marketing management philosophy does Netflix subscribe to?
I think Netflix uses empowerment as a management philosophy. They give a number of operators the ability to call the customers back and find out about the problem that occurred and how they can fix the problem. This gives the customers a feeling of customer satisfaction because of the attention they received from the company.
3. How does Netflix’s approach to relationship marketing increase customer satisfaction?
Netflix focuses on improving relationships with current customers by coming out with new features that the customers have requested. Customers can generate multiple lists for one address and can also share their lists with friends that they choose to be in their network. Netflix is also looking toward the future and different features that might be popular.
Subscribe to:
Comments (Atom)