Website Visit: Constant Contact
1. I have used constant contact on many occasions and was very happy with the service. The tour and tutorial are very accurate and do not over-hype this great product.
2. The price is very affordable for all sizes of businesses and nonprofit organizations.
3. The tour is very persuasive and left me with an “I can’t live without this product” feeling.
4. The voice is clear and the narrator does a great job in generating interest in the product.
5. My only criticism is that many people, especially those who are at work (arguably their target market), would not listen to the voice over. Additionally, their images are small and hard to read in the window of the tour. They should have done a better job in their tour to make it easier for someone who wished to view the tour without sound.
Monday, April 7, 2008
Chapter 17, Question 3.3:
Chapter 17, Question 3.3: Explain the concepts of elastic and inelastic demand. Why should managers understand these concepts?
Elastic demand is a situation in which consumer demand is sensitive to changes in price. Inelastic demand is a situation in which an increase or a decrease in a price will not significantly affect demand for the product.
Managers should understand these concepts when determining price. If demand is elastic and they choose to significantly increase price, they could lose customers. Conversely, if demand is inelastic, the manager could increase revenue by raising prices without affecting demand.
Website Visit: Constant Contact
Elastic demand is a situation in which consumer demand is sensitive to changes in price. Inelastic demand is a situation in which an increase or a decrease in a price will not significantly affect demand for the product.
Managers should understand these concepts when determining price. If demand is elastic and they choose to significantly increase price, they could lose customers. Conversely, if demand is inelastic, the manager could increase revenue by raising prices without affecting demand.
Website Visit: Constant Contact
Chapter 17, Question 3.2:
Chapter 17, Question 3.2: If a firm can increase its total revenue by raising its price, shouldn’t it do so?
Yes, especially if demand is inelastic price should be increased. However, if demand is elastic, an increase in price could actually lead to a decrease in revenue. If overall costs are high and fixed, price should be set to where the maximum number of sales can equal a profit.
Yes, especially if demand is inelastic price should be increased. However, if demand is elastic, an increase in price could actually lead to a decrease in revenue. If overall costs are high and fixed, price should be set to where the maximum number of sales can equal a profit.
Chapter 17, Question 3.1:
Chapter 17, Question 3.1: Explain the role of supply and demand in determining price.
The price marketers set for a product depends mostly on two factors: the demand for the good or service and the cost to the seller for that good or service. When pricing goals are mainly sales oriented, demand considerations usually dominate.
If there is no demand for a product, the manufacturers and retailers will likely reduce the cost to reduce inventory. If supply is low and demand is high, the price could potentially increase but would definitely at least stay constant until demand begins to decline. Price equilibrium occurs when demand and supply are equal.
The price marketers set for a product depends mostly on two factors: the demand for the good or service and the cost to the seller for that good or service. When pricing goals are mainly sales oriented, demand considerations usually dominate.
If there is no demand for a product, the manufacturers and retailers will likely reduce the cost to reduce inventory. If supply is low and demand is high, the price could potentially increase but would definitely at least stay constant until demand begins to decline. Price equilibrium occurs when demand and supply are equal.
Chapter 17, Question 2.1:
Chapter 17, Question 2.1: Give an example of each major type of pricing objective.
Profit-Oriented: Firms like Apple are examples of profit-oriented companies. When the ipod came to the market, it was a new product and there was no competition to speak of in the MP3 player industry. Apple was and, because of quality and a relative monopoly, is able to set prices high in order to maximize profit.
Sales-Oriented: Coffee sales between Folgers and Maxwell House are an example of sales oriented pricing. Both companies set price as a means to control a larger share of the market.
Status Quo-Oriented: Air-travel is an example of status quo pricing. Across the board, airlines closely monitor their prices in comparison to other airlines in the same market. When an airline reduces its price between two markets, the competitors usually follow suit.
Profit-Oriented: Firms like Apple are examples of profit-oriented companies. When the ipod came to the market, it was a new product and there was no competition to speak of in the MP3 player industry. Apple was and, because of quality and a relative monopoly, is able to set prices high in order to maximize profit.
Sales-Oriented: Coffee sales between Folgers and Maxwell House are an example of sales oriented pricing. Both companies set price as a means to control a larger share of the market.
Status Quo-Oriented: Air-travel is an example of status quo pricing. Across the board, airlines closely monitor their prices in comparison to other airlines in the same market. When an airline reduces its price between two markets, the competitors usually follow suit.
Chapter 14, Question 5.2:
Chapter 14, Question 5.2: How does a website’s ease of use affect its ability to create attention, interest, desire, and action? Visit www.kohler.com and determine how successful they are at moving customers through the AIDA process.
A website is great for generating attention, interest, build a compelling case or desire, and command an action. Building attention starts with a compelling headline and layout – commanding the reader to continue viewing. Generating interest on a website is also key and answers the reader’s question, “what’s in it for me?” Desire on a website is created through testimonials, ratings, studies, etc. The placement of these facts on the site will help generate desire for that specific product. Action is where you close the deal. Making purchasing the product easy is key to having an effective website. If the product is only available at a certain store, the site should have direct links to where the product can be purchased.
Kohler’s website is very nice. The homepage is simplistic and it is very clear what they sell and they do a great job in generating attention to their product. When you click on kitchen and bath, you are re-directed to a flash site that brings you further through the AIDA process. Interest is generated through great pictures, and shows the depths of their product mix. Desire is also created through pictures and persuasive language. Action is made simple with an online store that makes it easy for the customer to design and purchase the product.
A website is great for generating attention, interest, build a compelling case or desire, and command an action. Building attention starts with a compelling headline and layout – commanding the reader to continue viewing. Generating interest on a website is also key and answers the reader’s question, “what’s in it for me?” Desire on a website is created through testimonials, ratings, studies, etc. The placement of these facts on the site will help generate desire for that specific product. Action is where you close the deal. Making purchasing the product easy is key to having an effective website. If the product is only available at a certain store, the site should have direct links to where the product can be purchased.
Kohler’s website is very nice. The homepage is simplistic and it is very clear what they sell and they do a great job in generating attention to their product. When you click on kitchen and bath, you are re-directed to a flash site that brings you further through the AIDA process. Interest is generated through great pictures, and shows the depths of their product mix. Desire is also created through pictures and persuasive language. Action is made simple with an online store that makes it easy for the customer to design and purchase the product.
Chapter 14, Question 5.1:
Chapter 14, Question 5.1: Discuss the AIDA concept. How do these different stages of consumer involvement affect the promotional mix?
The AIDA concept is a model that outlines the process for achieving promotional goals in terms of stages of consumer involvement with the message; the acronym stands for attention, interest, desire, and action. This model proposes that consumers respond to marketing messages in a cognitive (thinking), affective (feeling), and conative (doing) sequence.
Advertising is very effective in creating attention and interest and somewhat effective in creating desire for a product. However, advertising is not exxective in creating action. Public relations, is very effective in creating attention, interest and desire for a product but not effective in creating action. Sales promotion is very effective in creating desire for a product, not effective in creating action and somewhat effective in creating attention and interest for a product. On the other hand, personal selling is very effective in creating action desire and interest for a product and only somewhat effective in creating attention as it only person-to-person.
The AIDA concept is a model that outlines the process for achieving promotional goals in terms of stages of consumer involvement with the message; the acronym stands for attention, interest, desire, and action. This model proposes that consumers respond to marketing messages in a cognitive (thinking), affective (feeling), and conative (doing) sequence.
Advertising is very effective in creating attention and interest and somewhat effective in creating desire for a product. However, advertising is not exxective in creating action. Public relations, is very effective in creating attention, interest and desire for a product but not effective in creating action. Sales promotion is very effective in creating desire for a product, not effective in creating action and somewhat effective in creating attention and interest for a product. On the other hand, personal selling is very effective in creating action desire and interest for a product and only somewhat effective in creating attention as it only person-to-person.
Chapter 14, Question 4.1:
Chapter 14, Question 4.1: Why might a marketer choose to promote his or her product using persuasion? Examples of persuasive promotion?
Persuasive promotion is designed to stimulate a purchase or an action. Examples of this would be encouraging making the switch to MAC from PC, telling consumers to eat more Doritos, or the lifestyle enhancements of HDTVs from Phillips.
Persuasive promotion is designed to stimulate a purchase or an action. Examples of this would be encouraging making the switch to MAC from PC, telling consumers to eat more Doritos, or the lifestyle enhancements of HDTVs from Phillips.
Chapter 14, Question 3.1:
Chapter 14, Question 3.1: Why is understanding the target market a crucial aspect of the communication process?
Marketers are both senders and receivers of messages. As senders, marketers attempt to inform, persuade and remind the target market to adopt courses of action compatible with the need to promote the purchase of goods and services. As receivers, marketers attune themselves to the target market in order to develop the appropriate messages, adapt existing messages, and spot new communication opportunities. This two way communication is crucial to having a successful relationship with your target market.
Marketers are both senders and receivers of messages. As senders, marketers attempt to inform, persuade and remind the target market to adopt courses of action compatible with the need to promote the purchase of goods and services. As receivers, marketers attune themselves to the target market in order to develop the appropriate messages, adapt existing messages, and spot new communication opportunities. This two way communication is crucial to having a successful relationship with your target market.
Chapter 12, Question 3.1:
Chapter 12, Question 3.1: Describe the most likely marketing channel as well as an alternative channel for each of these consumer products:
Candy Bars: Wholesaler channel. The alternative would be retailer.
Tupperware: Direct channel. Alternative would be retailer.
Notification books: Retailer channel and the alternative is the wholesaler channel.
New automobiles: Retailer channel and the alternative could be the producer or the direct channel.
Farmers’ market produce: Direct channel and the alternative could be the wholesaler.
Stereo equipment: Wholesaler channel with the alternative being the retailer.
Candy Bars: Wholesaler channel. The alternative would be retailer.
Tupperware: Direct channel. Alternative would be retailer.
Notification books: Retailer channel and the alternative is the wholesaler channel.
New automobiles: Retailer channel and the alternative could be the producer or the direct channel.
Farmers’ market produce: Direct channel and the alternative could be the wholesaler.
Stereo equipment: Wholesaler channel with the alternative being the retailer.
Chapter 12, Question 2.1:
Chapter 12, Question 2.1: What kind of marketing channel functions can be performed over the Internet? Why do you think so?
I believe that all marketing channel functions can be performed over the internet. In fact, I think it’s probably easier to perform most of the channels via the internet. The infrastructure to promote, contact, deliver, finance, sort, negotiate sales of products is already in place and provides the marketer a much easier (one step) process to sell their products. Logistically, most products require an outside vendor to ship the product to the consumer and a warehouse to store and sort the product, some products like gift cards, photo enhancement, software, movies, and music are stored online and available to the customer directly.
I believe that all marketing channel functions can be performed over the internet. In fact, I think it’s probably easier to perform most of the channels via the internet. The infrastructure to promote, contact, deliver, finance, sort, negotiate sales of products is already in place and provides the marketer a much easier (one step) process to sell their products. Logistically, most products require an outside vendor to ship the product to the consumer and a warehouse to store and sort the product, some products like gift cards, photo enhancement, software, movies, and music are stored online and available to the customer directly.
Chapter 11 Application Exercise - Activities
Chapter 11 Exercise Activities
BONUS POINTS:
1. Is playbill a good, a service or both?
Playbill can be considered both a good and a service. Because it can be “possessed” it is a good - contradictory to the definition of service. However, this is obviously a service provided to companies who wish to advertise to a specific (affluent) group of people who attend theatre. Playbill is also a service, as it doesn’t cost the theatre or the theatergoer a single cent. They provide the audience information about the show such as cast bios, agenda, and other information about theatre in general. This service to the theatre, saves the box office money and time from printing and producing these materials in-house and allows them to keep costs low.
2. What is Playbill’s marketing mix?
Product: Playbill is a free program provided to theatre audiences all across the country at no charge.
Core and supplementary services: Their core service is to provide information about the show the audience is about to see as well as information about theatre regionally and nationally to the audience. Their supplementary service is to provide companies a way to reach affluent consumers very effectively. They also provide a service to box offices by producing the much needed programs to them and the audience at no cost.
Mass customization: Partnership with Sirius Satellite radio and providing exclusive content online.
Service mix: To be the one source of information about theatre in the United States. Programs, online, radio.
Promotion: Their main promotion strategy is in the box office where their programs are offered to the audience at no charge. They have worked to maintain a monopoly among information sources in this arena. They also promote their services online and through a partnership with Sirius Satellite Radio and through other partnerships with hotels, restaurants, and others.
Pricing: Free to the box office and audience. Obtains revenue through advertising.
3. How does the partnership with Sirius affect Playbill’s marketing mix? Will it increase demand for playbill’s service?
The alliance with Sirius is a great move for Playbill. Both companies are national communication entities and for playbill, the use of Sirius’ national audience will generate more interest in theatre and could boost attendance in theatres nationwide (increasing the demand for its product). This alliance will also dramatically increase Playbill’s brand recognition. Additionally, the cross-promotion of their services on the radio to generate website traffic could allow Playbill to generate more advertising revenue online.
BONUS POINTS:
1. Is playbill a good, a service or both?
Playbill can be considered both a good and a service. Because it can be “possessed” it is a good - contradictory to the definition of service. However, this is obviously a service provided to companies who wish to advertise to a specific (affluent) group of people who attend theatre. Playbill is also a service, as it doesn’t cost the theatre or the theatergoer a single cent. They provide the audience information about the show such as cast bios, agenda, and other information about theatre in general. This service to the theatre, saves the box office money and time from printing and producing these materials in-house and allows them to keep costs low.
2. What is Playbill’s marketing mix?
Product: Playbill is a free program provided to theatre audiences all across the country at no charge.
Core and supplementary services: Their core service is to provide information about the show the audience is about to see as well as information about theatre regionally and nationally to the audience. Their supplementary service is to provide companies a way to reach affluent consumers very effectively. They also provide a service to box offices by producing the much needed programs to them and the audience at no cost.
Mass customization: Partnership with Sirius Satellite radio and providing exclusive content online.
Service mix: To be the one source of information about theatre in the United States. Programs, online, radio.
Promotion: Their main promotion strategy is in the box office where their programs are offered to the audience at no charge. They have worked to maintain a monopoly among information sources in this arena. They also promote their services online and through a partnership with Sirius Satellite Radio and through other partnerships with hotels, restaurants, and others.
Pricing: Free to the box office and audience. Obtains revenue through advertising.
3. How does the partnership with Sirius affect Playbill’s marketing mix? Will it increase demand for playbill’s service?
The alliance with Sirius is a great move for Playbill. Both companies are national communication entities and for playbill, the use of Sirius’ national audience will generate more interest in theatre and could boost attendance in theatres nationwide (increasing the demand for its product). This alliance will also dramatically increase Playbill’s brand recognition. Additionally, the cross-promotion of their services on the radio to generate website traffic could allow Playbill to generate more advertising revenue online.
Chapter 11, Question 3.1:
Chapter 11, Question 3.1: Analyze a recent service provided in terms of expectations and perceptions about each of the five components of service quality.
Central Pediatrics:
Reliability: We may have an answer to our baby’s problem after one visit.
Responsiveness: This place is always open. Unlike most pediatric clinics, they have extended hours for urgent care 7 days a week and offer same day appointments. We never will have a problem getting our baby seen by our usual provider. The staff is also always on call
Assurance: Everyone who works there always has a smile on their faces. Our nurses and pediatrician seems genuinely interested in her care.
Empathy: The staff is extremely nice and they took the time to get to know us. The front desk staff knew our baby’s name (and ours) on the second visit and commented on how cute she is before we reintroduced ourselves.
Tangibles: The building is brand new, clean, well-lit, and smells great. VERY CONTEMPORARY. We left thinking our baby is healthy and her problem will get better.
Central Pediatrics:
Reliability: We may have an answer to our baby’s problem after one visit.
Responsiveness: This place is always open. Unlike most pediatric clinics, they have extended hours for urgent care 7 days a week and offer same day appointments. We never will have a problem getting our baby seen by our usual provider. The staff is also always on call
Assurance: Everyone who works there always has a smile on their faces. Our nurses and pediatrician seems genuinely interested in her care.
Empathy: The staff is extremely nice and they took the time to get to know us. The front desk staff knew our baby’s name (and ours) on the second visit and commented on how cute she is before we reintroduced ourselves.
Tangibles: The building is brand new, clean, well-lit, and smells great. VERY CONTEMPORARY. We left thinking our baby is healthy and her problem will get better.
Chapter 11, Question 2.1
Chapter 11, Question 2.1 Describe a bank branch manager’s list of implications of intangibility.
Curb appeal of the building.
Availability of parking
Weather barriers (snow removal, awnings to block from rain, etc.)
Physical appearance of staff
Cleanliness of the facility
Appearance of security and safety
Openess
Friendliness of staff
Décor
Lighting
Comfort of seating area
Speed of service
Organization of services (making sure that placement of services are logical).
Curb appeal of the building.
Availability of parking
Weather barriers (snow removal, awnings to block from rain, etc.)
Physical appearance of staff
Cleanliness of the facility
Appearance of security and safety
Openess
Friendliness of staff
Décor
Lighting
Comfort of seating area
Speed of service
Organization of services (making sure that placement of services are logical).
Chapter 11, Question 1.1:
Chapter 11, Question 1.1: Visit www.bls.gov/bdm. What trends to you see and do the numbers support the information from the chapter?
The trends show that job losses and job gains in the service sector represent about 80% of the workforce. What I thought was particularly interesting was how in the second quarter of 2007 that job losses and gains remained equal in the “goods-producing sector” but the job gains was significantly higher in the service sector than job losses. This trend shows that the percentage of service-producing jobs increased in the second quarter of 2007.
Gross Job Gains:
Total Private
History 7,644,000 in 2nd Qtr of 2007
Goods-Producing
History 1,622,000 in 2nd Qtr of 2007
Service-providing
History 6,022,000 in 2nd Qtr of 2007
Gross Job Losses:
Total Private
History 7,403,000 in 2nd Qtr of 2007
Goods-Producing
History 1,691,000 in 2nd Qtr of 2007
Service-Providing
History 5,712,000 in 2nd Qtr of 2007
Number of establishments gaining jobs:
Total Private
History 1,907,000 in 2nd Qtr of 2007
Goods-Producing
History 349,000 in 2nd Qtr of 2007
Service-Providing
History 1,558,000 in 2nd Qtr of 2007
Number of establishments losing jobs:
Total Private
History 1,938,000 in 2nd Qtr of 2007
Goods-Producing
History 383,000 in 2nd Qtr of 2007
Service-Providing
History 1,555,000 in 2nd Qtr of 2007
The trends show that job losses and job gains in the service sector represent about 80% of the workforce. What I thought was particularly interesting was how in the second quarter of 2007 that job losses and gains remained equal in the “goods-producing sector” but the job gains was significantly higher in the service sector than job losses. This trend shows that the percentage of service-producing jobs increased in the second quarter of 2007.
Gross Job Gains:
Total Private
History 7,644,000 in 2nd Qtr of 2007
Goods-Producing
History 1,622,000 in 2nd Qtr of 2007
Service-providing
History 6,022,000 in 2nd Qtr of 2007
Gross Job Losses:
Total Private
History 7,403,000 in 2nd Qtr of 2007
Goods-Producing
History 1,691,000 in 2nd Qtr of 2007
Service-Providing
History 5,712,000 in 2nd Qtr of 2007
Number of establishments gaining jobs:
Total Private
History 1,907,000 in 2nd Qtr of 2007
Goods-Producing
History 349,000 in 2nd Qtr of 2007
Service-Providing
History 1,558,000 in 2nd Qtr of 2007
Number of establishments losing jobs:
Total Private
History 1,938,000 in 2nd Qtr of 2007
Goods-Producing
History 383,000 in 2nd Qtr of 2007
Service-Providing
History 1,555,000 in 2nd Qtr of 2007
Chapter 10, Question 6.1:
Chapter 10, Question 6.1: Visit Cheerios.com. What is Cheerios doing to compete successfully in its maturity stage?
In their maturity stage, Cheerios has done a great deal to try and attract new customers and retain old ones. Normally, cereal is considered a kid’s meal in the morning but the company is obviously communicating the health benefits for adults on its site to attract or bring back adults to its product line. On their site, they have three of their six images specifically directed at adult consumers (not necessarily adults with children). One is for adults and two are directly related to the heart health benefits that eating cheerios can have. Although many parents are concerned with their children’s heart health, that is not a marketing tactic that would appeal to younger consumers and would not have much of an impact on sales to children.
For parents, cheerios is definitely aiming to communicate that they have a product in their line that kids love and is good for them too. It is obvious that the company is trying to market to kids as much as they are to parents, as ultimately the children will end up driving the consumer decision made by the parents. As a new parent myself, I noticed how cheerios is talking to me about my infant’s health and when she can start sampling cheerios!
In reality, visitors to this site will unlikely be children so it is perfectly understandable that cheerios will market towards parents and adult consumers on their site.
In their maturity stage, Cheerios has done a great deal to try and attract new customers and retain old ones. Normally, cereal is considered a kid’s meal in the morning but the company is obviously communicating the health benefits for adults on its site to attract or bring back adults to its product line. On their site, they have three of their six images specifically directed at adult consumers (not necessarily adults with children). One is for adults and two are directly related to the heart health benefits that eating cheerios can have. Although many parents are concerned with their children’s heart health, that is not a marketing tactic that would appeal to younger consumers and would not have much of an impact on sales to children.
For parents, cheerios is definitely aiming to communicate that they have a product in their line that kids love and is good for them too. It is obvious that the company is trying to market to kids as much as they are to parents, as ultimately the children will end up driving the consumer decision made by the parents. As a new parent myself, I noticed how cheerios is talking to me about my infant’s health and when she can start sampling cheerios!
In reality, visitors to this site will unlikely be children so it is perfectly understandable that cheerios will market towards parents and adult consumers on their site.
Chapter 10, Question 5.2:
Chapter 10, Question 5.2: What type of adopter behavior do I typically follow?
I am very much an innovator. I am always looking to upgrade my cell phone, buy the newest computing technology, and more. I am completely obsessed with having the newest greatest products. I spend a ton of time researching products coming to the market and, if interested, I either find myself in line for that product on the day of its release or pre-order it online when that option is available.
Before hybrid cars were a big frenzy, I already had one. I have taken some risks with regard to my home and have shown many signs of being an innovator when it comes to investing into new technology that could increase our energy efficiency. I was the first of my friend group to have a high definition television and have since upgraded my televisions a few times to maintain a top of the line viewing and listening technology in my home. I never make it more than six months with a single cell phone and have never owned an automobile more than two years.
Hopefully I will grow out of this phase at some point but I don’t see that happening any time soon.
I am very much an innovator. I am always looking to upgrade my cell phone, buy the newest computing technology, and more. I am completely obsessed with having the newest greatest products. I spend a ton of time researching products coming to the market and, if interested, I either find myself in line for that product on the day of its release or pre-order it online when that option is available.
Before hybrid cars were a big frenzy, I already had one. I have taken some risks with regard to my home and have shown many signs of being an innovator when it comes to investing into new technology that could increase our energy efficiency. I was the first of my friend group to have a high definition television and have since upgraded my televisions a few times to maintain a top of the line viewing and listening technology in my home. I never make it more than six months with a single cell phone and have never owned an automobile more than two years.
Hopefully I will grow out of this phase at some point but I don’t see that happening any time soon.
Chapter 10, Question 5.1:
Chapter 10, Question 5.1: Describe how some product adoption rates are affected by…
Complexity: Blackberrys (my mom hasn’t figured out hers yet), Computer programs and operating systems, PCs, complex video games, etc. I rarely find any product complex.
Compatibility: Condoms, birth control pills,
Relative Advantage: High Definition Televisions, Digital Cameras, cell phones, hybrid cars, low interest-rate loans and credit cards,
Observability: ipods, cell phones, sunglasses, glasses, purses, strollers, jeans, shoes, etc.
Trialability: soap, toothpaste, candy, gum, soda, prescription drugs, non-prescription drugs.
Complexity: Blackberrys (my mom hasn’t figured out hers yet), Computer programs and operating systems, PCs, complex video games, etc. I rarely find any product complex.
Compatibility: Condoms, birth control pills,
Relative Advantage: High Definition Televisions, Digital Cameras, cell phones, hybrid cars, low interest-rate loans and credit cards,
Observability: ipods, cell phones, sunglasses, glasses, purses, strollers, jeans, shoes, etc.
Trialability: soap, toothpaste, candy, gum, soda, prescription drugs, non-prescription drugs.
Website: VALS Survey
Website: VALS Survey
1. Results from my survey:
Your primary VALS type is Innovator, and your secondary type is Experiencer.
The primary VALS type represents your dominant approach to life. The secondary classification represents a particular emphasis you give to your dominant approach.
2. The basic tenet of VALS is that people express their personalities through their behaviors. VALS specifically defines consumer segments on the basis of those personality traits that affect behavior in the marketplace. Rather than looking at what people do and segregating people with like activities, VALS uses psychology to segment people according to their distinct personality traits. The personality traits are the motivation—the cause. Buying behavior becomes the effect—the observable, external behavior prompted by an internal driver.
3. I found the results of my survey to be pretty much what I would expect. I learned nothing new about my behavior.
4. This information about me could be valuable to a marketer as they would know a great deal about my potential buying behavior and how to be my next product of choice.
5. I would be interested in learning more about this method and how a similar model could be used to assist my line of work in the nonprofit world.
1. Results from my survey:
Your primary VALS type is Innovator, and your secondary type is Experiencer.
The primary VALS type represents your dominant approach to life. The secondary classification represents a particular emphasis you give to your dominant approach.
2. The basic tenet of VALS is that people express their personalities through their behaviors. VALS specifically defines consumer segments on the basis of those personality traits that affect behavior in the marketplace. Rather than looking at what people do and segregating people with like activities, VALS uses psychology to segment people according to their distinct personality traits. The personality traits are the motivation—the cause. Buying behavior becomes the effect—the observable, external behavior prompted by an internal driver.
3. I found the results of my survey to be pretty much what I would expect. I learned nothing new about my behavior.
4. This information about me could be valuable to a marketer as they would know a great deal about my potential buying behavior and how to be my next product of choice.
5. I would be interested in learning more about this method and how a similar model could be used to assist my line of work in the nonprofit world.
Website: Claritas Target Market Research
Website: Claritas Target Market Research
1. The site is very cluttered and has too much information on the main page.
2. The amount of information offered at no cost is astounding. I would normally expect to have to pay for this amount of information.
3. The information is frighteningly specific. I clicked on many zip codes and found the site to be spot on in the information it provided.
4. I liked their value statement and found it to be very appealing: “To be trustworthy, unbiased, collaborative, insightful and passionate in everything we do. To serve clients by providing simple, open and integrated solutions.”
5. I also liked that they offer the customer the ability to speak to a live rep by clicking on the link online. That makes their service a lot more personal than most websites offering a product for sale.
1. The site is very cluttered and has too much information on the main page.
2. The amount of information offered at no cost is astounding. I would normally expect to have to pay for this amount of information.
3. The information is frighteningly specific. I clicked on many zip codes and found the site to be spot on in the information it provided.
4. I liked their value statement and found it to be very appealing: “To be trustworthy, unbiased, collaborative, insightful and passionate in everything we do. To serve clients by providing simple, open and integrated solutions.”
5. I also liked that they offer the customer the ability to speak to a live rep by clicking on the link online. That makes their service a lot more personal than most websites offering a product for sale.
Chapter 9, Question 6.1:
Chapter 9, Question 6.1: Levis.com. List the countries it markets to. How do the product offerings differ between the US and European markets?
USA, Europe, Latin America, Asia, and Canada. In America, they offer standard products and promote their long-held brand identity as the standard bearer of jeans in the US. In Europe, their products are more hip and younger with a designer appeal.
USA, Europe, Latin America, Asia, and Canada. In America, they offer standard products and promote their long-held brand identity as the standard bearer of jeans in the US. In Europe, their products are more hip and younger with a designer appeal.
Chapter 9, Question 5.1:
Chapter 9, Question 5.1: Discuss the packaging of a product at home.
I chose to evaluate cool whip in the can. I bought this product because I love cool whip but also love the ease of canned whipped topping and have always hated the alternatives until cool whip came to the market. The product looks like ready whip and is sealed in its packaging with plastic and a cap to ensure freshness. The design of the can says new and is designed very similar to the tub of whip I used to buy. The packaging promotes the ease of use with a simple finger touch to extract the topping and on the side explains how to recycle the aluminum after use has completed.
I chose to evaluate cool whip in the can. I bought this product because I love cool whip but also love the ease of canned whipped topping and have always hated the alternatives until cool whip came to the market. The product looks like ready whip and is sealed in its packaging with plastic and a cap to ensure freshness. The design of the can says new and is designed very similar to the tub of whip I used to buy. The packaging promotes the ease of use with a simple finger touch to extract the topping and on the side explains how to recycle the aluminum after use has completed.
Chapter 9, Question 4.2:
Chapter 9, Question 4.2: How does Hormel use its website to promote its store brands? Is the site designed more to promote the company or its brands. Check out Spam’s website – How doe you think Hormel is able to successfully sustain this brand that is often the punch line to a joke?
Right on the homepage it has all of its brand’s images ready to be clicked on and they encourage the viewer to learn more about each brand. The site is designed to both promote the company and its brands. I honestly don’t know how Hormel is able to still sell SPAM. It’s gross. They seem to use testimonials and the longevity to promote the product and obviously still have a market for their product by offering a great deal of depth to that product line.
Right on the homepage it has all of its brand’s images ready to be clicked on and they encourage the viewer to learn more about each brand. The site is designed to both promote the company and its brands. I honestly don’t know how Hormel is able to still sell SPAM. It’s gross. They seem to use testimonials and the longevity to promote the product and obviously still have a market for their product by offering a great deal of depth to that product line.
Chapter 9, Question 2.1:
Chapter 9, Question 2.1: Classify each of the following into the following category – convenience, shopping, specialty, unsought.
Coca-cola: specialty
Car stereo: specialty
Winter coat: shopping
Pair of shoes: specialty
Life insurance: unsought
Blue jeans: shopping
Fast-food hamburgers: convenience
Shampoo: convenience
Canned veggies: convenience
Curtains: specialty
Coca-cola: specialty
Car stereo: specialty
Winter coat: shopping
Pair of shoes: specialty
Life insurance: unsought
Blue jeans: shopping
Fast-food hamburgers: convenience
Shampoo: convenience
Canned veggies: convenience
Curtains: specialty
Chapter 7: Viva Las Vegas
Chapter 7: Viva Las Vegas
1. What does the LVCVA use in segmenting its target market? Geographic and ethnic. They try to find where their customers are from and what background they have.
2. Does the LVCVA use an undifferentiated, a concentrated, or a multisegment targeting strategy? Why? Should the LVCVA be concerned with cannibalization?
They use a multisegment targeting strategy. By doing so they can focus on multiple segments of the population as their product has universal appeal to all groups but the reasons for the appeal to the product differ substantially between segments.
The LVCVA should not be concerned with cannibalization. They have nothing to lose by using a multisegment strategy and by promoting their product to various segments they would not cut into the sales of their existing products.
3. Think of the many reasons a person might want to travel to Las Vegas. Given a target market of all US citizens aged 18-75, speculate how you might segment that market by lifestyle.
Young people will be attracted to the nighlife, the sinfulness of the city, drinking and gambling. For many young people it’s a great inexpensive way to take a three to four day trip. Middle aged folks might be attracted to Vegas’ new family friendly atmosphere, romantic attractions, gambling, and shows. Older crowds would be attracted to the golfing, warm weather, shows and gambline.
All in all, there is a part of Vegas that interests almost every target market.
4. What do you think makes the LVCVA so successful?
They are selling Las Vegas! Everyone loves to go there for a multitude of reasons and the city is only getting better. They will continue to be successful as long as they continue their work to attract new customers and keep their existing ones.
Just reading this article made me want to head back there soon!
1. What does the LVCVA use in segmenting its target market? Geographic and ethnic. They try to find where their customers are from and what background they have.
2. Does the LVCVA use an undifferentiated, a concentrated, or a multisegment targeting strategy? Why? Should the LVCVA be concerned with cannibalization?
They use a multisegment targeting strategy. By doing so they can focus on multiple segments of the population as their product has universal appeal to all groups but the reasons for the appeal to the product differ substantially between segments.
The LVCVA should not be concerned with cannibalization. They have nothing to lose by using a multisegment strategy and by promoting their product to various segments they would not cut into the sales of their existing products.
3. Think of the many reasons a person might want to travel to Las Vegas. Given a target market of all US citizens aged 18-75, speculate how you might segment that market by lifestyle.
Young people will be attracted to the nighlife, the sinfulness of the city, drinking and gambling. For many young people it’s a great inexpensive way to take a three to four day trip. Middle aged folks might be attracted to Vegas’ new family friendly atmosphere, romantic attractions, gambling, and shows. Older crowds would be attracted to the golfing, warm weather, shows and gambline.
All in all, there is a part of Vegas that interests almost every target market.
4. What do you think makes the LVCVA so successful?
They are selling Las Vegas! Everyone loves to go there for a multitude of reasons and the city is only getting better. They will continue to be successful as long as they continue their work to attract new customers and keep their existing ones.
Just reading this article made me want to head back there soon!
Chapter 7, Question 9.1:
Chapter 7, Question 9.1: In a product category, identify at least three different brands and their respective positioning strategies. How is each position communicated to the target audience?
I chose computers – particularily Apple, IBM and Dell. Apple has positioned itself as the choice for hip, young consumers. They promote their ease of use and highlight the differences/advantages to their product versus PCs. Most notably, Apple’s comparison commercials to PCs are humorous and generally appealing to younger audiences. Dell also aims to be hip but affordable. They are arguably the best quality, low cost manufacturer of computers. Dell reaches consumers through effective television and Internet advertising and does not offer its products in retail stores. IBM remains the standard bearer of computing technology and positions itself as the matriarch of the computer industry. They go for high use consumers who demand workhorse machines. IBM relies on brand identification and brand loyalty.
I chose computers – particularily Apple, IBM and Dell. Apple has positioned itself as the choice for hip, young consumers. They promote their ease of use and highlight the differences/advantages to their product versus PCs. Most notably, Apple’s comparison commercials to PCs are humorous and generally appealing to younger audiences. Dell also aims to be hip but affordable. They are arguably the best quality, low cost manufacturer of computers. Dell reaches consumers through effective television and Internet advertising and does not offer its products in retail stores. IBM remains the standard bearer of computing technology and positions itself as the matriarch of the computer industry. They go for high use consumers who demand workhorse machines. IBM relies on brand identification and brand loyalty.
Chapter 7, Question 7.2:
Chapter 7, Question 7.2: Compare how women’s clothes are markets on Target and JCPenny’s websites. Which site is more designer focused and which is more brand focused? Which company’s approach will appeal to the 25 – 35 age group?
Targets website is cooler and much more hip than JCPenny’s website and they seem to offer women more choices. Target is definitely much more designer focused and JCPenny’s site has more of a focus on brand. I believe that Target would have a better chance to appeal to the 25-35 age group.
Targets website is cooler and much more hip than JCPenny’s website and they seem to offer women more choices. Target is definitely much more designer focused and JCPenny’s site has more of a focus on brand. I believe that Target would have a better chance to appeal to the 25-35 age group.
Chapter 7, Question 4.3:
Chapter 7, Question 4.3: Is it possible to identify a single market for two distinctly different products? Ex. How substantial is the market comprised of consumers who use Apple and drive VWs? Other product combinations that would interest a single market?
Yes, it is possible to identify a single market for two very different products. Members of a market might hold similar beliefs and interests and the products they buy define their market. For example, a consumer of thrift store clothing and hot pink hair coloring might also be a target market for a vegan bakery.
Consumers of Propel fitness water could also be a target market for New Balance Shoes.
Proactiv Solution skin care products could also be a target market for Covergirl makeup
Alienware computers Outerspace phones?
Specialty luggage tags high-end neckties
Yes, it is possible to identify a single market for two very different products. Members of a market might hold similar beliefs and interests and the products they buy define their market. For example, a consumer of thrift store clothing and hot pink hair coloring might also be a target market for a vegan bakery.
Consumers of Propel fitness water could also be a target market for New Balance Shoes.
Proactiv Solution skin care products could also be a target market for Covergirl makeup
Alienware computers Outerspace phones?
Specialty luggage tags high-end neckties
Census Bureau Website Observation:
Census Bureau Website Observation:
1. Website is very stale. Nothing on the site is exciting and appealing. It is obviously a government website!
2. There is too much information on the homepage. I personally respond better to less text and fewer images.
3. The color scheme is predictable (red, white and blue but mostly blue).
4. One great feature on the site is the population clocks. I found that to be quite interesting.
5. I also thought the site had a ton of information and everything seemed to be laid out well and easy enough to find. There is nothing complicated or edgy about their arrangement of information – usual for a government site.
1. Website is very stale. Nothing on the site is exciting and appealing. It is obviously a government website!
2. There is too much information on the homepage. I personally respond better to less text and fewer images.
3. The color scheme is predictable (red, white and blue but mostly blue).
4. One great feature on the site is the population clocks. I found that to be quite interesting.
5. I also thought the site had a ton of information and everything seemed to be laid out well and easy enough to find. There is nothing complicated or edgy about their arrangement of information – usual for a government site.
Chapter 6, Question 5.2:
Chapter 6, Question 5.2: Pick a product and determine its NAICS code. How easy was it to trace the groups and sectors?
Potato Chips: 422450. I could not locate the groups and sectors.
Potato Chips: 422450. I could not locate the groups and sectors.
Chapter 6, Question 5.1:
Chapter 6, Question 5.1: Explain how a marketer can use the website www.census.gov/epcd/www/naics.html to convert SIC data to the NAICS.
To view the conversion visit: http://www.census.gov/epcd/ec97brdg/ a marketer can also download information for converstion at http://www.census.gov/epcd/naics02/
To view the conversion visit: http://www.census.gov/epcd/ec97brdg/ a marketer can also download information for converstion at http://www.census.gov/epcd/naics02/
Chapter 6, Question 3.1:
Chapter 6, Question 3.1: Why is relationship or personal selling the best way to promote in business marketing?
For many items, especially high-risk and high involvement decision products, it is preferable to use relationship marketing or personal selling to market products. These methods are also great for business marketing as it allows the marketer to build longer-term relationships that can contribute to return business. This approach also allows the marketer to address questions, concerns, doubts, and would stand a better chance to close the sale.
For many items, especially high-risk and high involvement decision products, it is preferable to use relationship marketing or personal selling to market products. These methods are also great for business marketing as it allows the marketer to build longer-term relationships that can contribute to return business. This approach also allows the marketer to address questions, concerns, doubts, and would stand a better chance to close the sale.
Chapter 6, Question 2.1:
Chapter 6, Question 2.1: How could www.btoonline.com help define a target market and develop a marketing plan?
The site is packed with information and resources to help marketers define their target market and develop a marketing plan. With the presence of blogs, the marketer would have access to others in the field to discuss new trends and tactics to also aid in these areas.
Other than that, I don’t believe the site would be all that helpful to a marketer.
The site is packed with information and resources to help marketers define their target market and develop a marketing plan. With the presence of blogs, the marketer would have access to others in the field to discuss new trends and tactics to also aid in these areas.
Other than that, I don’t believe the site would be all that helpful to a marketer.
Chapter 5, Question 8.1:
Chapter 5, Question 8.1: How do beliefs and attitudes affect 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 altered beliefs about a product?
Beliefs and attitudes are closely linked to values. Changes in attitude tend to grow out of an individuals attempt to reconcile long-held values with a constant stream of new information. This change can be accomplished by changing beliefs about a brand’s attributes, changing the relative importance of the beliefs, and/or adding new beliefs. Kentucky Fried Chicken attempted to change their image by promoting the healthy lifestyle that fried chicken can offer during the Atkins craze (this was later rebuked by the FCC). Bayer Aspirin changed their image by promoting the heart health benefits of their product and effectively repackaged their product as an agent taken once daily to prevent heart attacks.
Beliefs and attitudes are closely linked to values. Changes in attitude tend to grow out of an individuals attempt to reconcile long-held values with a constant stream of new information. This change can be accomplished by changing beliefs about a brand’s attributes, changing the relative importance of the beliefs, and/or adding new beliefs. Kentucky Fried Chicken attempted to change their image by promoting the healthy lifestyle that fried chicken can offer during the Atkins craze (this was later rebuked by the FCC). Bayer Aspirin changed their image by promoting the heart health benefits of their product and effectively repackaged their product as an agent taken once daily to prevent heart attacks.
Chapter 5, Question 6.1:
Chapter 5, Question 6.1: Initiator, influencer, decision maker, purchaser, or consumer. In your family who is the above in the following products?
Pizza Hut: Initiator = Me if I don’t cook, influencer Chris, decision maker = Me , purchaser = Chris and me, and consumer = both of us.
A summer vacation: Initiator = Chris, influencer = Chris, decision maker = Me, purchaser = Me, and consumer = Both of us
Fruit Loops: Initiator = Chris, influencer = Chris, decision maker = Chris, purchaser = Chris, and consumer = Chris
AnF Sweater: Initiator = me , influencer = me, decision maker = me, purchaser = me, and consumer = me
Golf clubs: Initiator = me, influencer = me, decision maker = Me and Chris, purchaser = me, and consumer = me
ISP: Initiator = me, influencer = me, decision maker = me, purchaser = me, and consumer = both of us
New Car: Initiator = me, influencer = me, decision maker = both of us, purchaser = both of us, and consumer = both of us.
Pizza Hut: Initiator = Me if I don’t cook, influencer Chris, decision maker = Me , purchaser = Chris and me, and consumer = both of us.
A summer vacation: Initiator = Chris, influencer = Chris, decision maker = Me, purchaser = Me, and consumer = Both of us
Fruit Loops: Initiator = Chris, influencer = Chris, decision maker = Chris, purchaser = Chris, and consumer = Chris
AnF Sweater: Initiator = me , influencer = me, decision maker = me, purchaser = me, and consumer = me
Golf clubs: Initiator = me, influencer = me, decision maker = Me and Chris, purchaser = me, and consumer = me
ISP: Initiator = me, influencer = me, decision maker = me, purchaser = me, and consumer = both of us
New Car: Initiator = me, influencer = me, decision maker = both of us, purchaser = both of us, and consumer = both of us.
Chapter 5, Question 4.2:
Chapter 5, Question 4.2: Describe the level of involvement and the involvement factors likely to be associated with buying a new computer. Does Apple’s website simplify or complicate this process for the average consumer?
Buying a new computer would likely fall into the extensive decision making category. A computer is a high-end purchase with a great deal of risk and requires advanced knowledge to compare and contrast the items versus other items on the market. Consumers who do not normally stay up to date on technological trends would also need to research the changing market since their last computer purchase to ensure they are matching their needs with the products currently offered.
Apple.com’s website is not the most user-friendly site for purchasing computers – primarily because they sell and promote so many other products (ipod, itunes, AppleTV, iphone, etc). When visiting the site, it is difficult to even locate where computers are sold. However, when you get to the computer store, they make the information easily available for consumer education for purchasing the right product.
Buying a new computer would likely fall into the extensive decision making category. A computer is a high-end purchase with a great deal of risk and requires advanced knowledge to compare and contrast the items versus other items on the market. Consumers who do not normally stay up to date on technological trends would also need to research the changing market since their last computer purchase to ensure they are matching their needs with the products currently offered.
Apple.com’s website is not the most user-friendly site for purchasing computers – primarily because they sell and promote so many other products (ipod, itunes, AppleTV, iphone, etc). When visiting the site, it is difficult to even locate where computers are sold. However, when you get to the computer store, they make the information easily available for consumer education for purchasing the right product.
Chapter 5, Question 4.1:
Chapter 5, Question 4.1: Describe the three categories of consumer decision-making behavior. Name the typical products for which each type of behavior is used.
Extensive: Extensive decisions are very complex. This type of decision making is usually associated with buying an unfamiliar, and/or very expensive product. This requires extensive research and deliberation. Examples of this would be a new computer, cell phone, high end items and luxury goods.
Limited: Decision making that requires a moderate amount of time for gathering information and deliberating about an unfamiliar brand in a familiar product category. Examples would include switching brands of toothpaste when your product is out of stock, finding a generic subsititue for a cold or allergy remedy, buying a new pair of jeans, etc.
Routine: The type of decision making exhibited by consumers buying frequently purchased, low cost goods and services. Requires little research and decision time. Examples of this would be pencils, pens, paper plates, paper towels, towels, soap, hand lotion, etc.
Extensive: Extensive decisions are very complex. This type of decision making is usually associated with buying an unfamiliar, and/or very expensive product. This requires extensive research and deliberation. Examples of this would be a new computer, cell phone, high end items and luxury goods.
Limited: Decision making that requires a moderate amount of time for gathering information and deliberating about an unfamiliar brand in a familiar product category. Examples would include switching brands of toothpaste when your product is out of stock, finding a generic subsititue for a cold or allergy remedy, buying a new pair of jeans, etc.
Routine: The type of decision making exhibited by consumers buying frequently purchased, low cost goods and services. Requires little research and decision time. Examples of this would be pencils, pens, paper plates, paper towels, towels, soap, hand lotion, etc.
Monday, March 10, 2008
Website: CAN-SPAM Act
CAN SPAM ACT WEBSITE OBSERVATIONS:
1. The home page is well laid out, has nice images but is very text heavy in the body.
2. The graphical links on the home page work very well for the site.
3. The website is hard to find. It appears at number two on the google search and the URL is complex (should be something like www.canspam.com).
4. The subsequent pages are very informative, direct and succinct. The font colors for the text, headers and embedded links are too similar and are not easy on the eyes.
5. The site is out of date but provides the ability to print out informative handouts in PDF format – a plus for the site.
1. The home page is well laid out, has nice images but is very text heavy in the body.
2. The graphical links on the home page work very well for the site.
3. The website is hard to find. It appears at number two on the google search and the URL is complex (should be something like www.canspam.com).
4. The subsequent pages are very informative, direct and succinct. The font colors for the text, headers and embedded links are too similar and are not easy on the eyes.
5. The site is out of date but provides the ability to print out informative handouts in PDF format – a plus for the site.
Chapter 4: Vermont Teddy Bear Questions
Vermont Teddy Bear
1. Did Vermont Teddy Bear act socially irresponsible?
Yes, as Vermont’s Governor pointed out, the “Crazy for You” teddy bear was very insensitive and it stigmatized those suffering from mental health problems. The company could have acted more responsible by donating a portion of the profits to increase mental health awareness.
2. Was the controversy a positive or a negative for the company?
A positive. Although some people may have been turned off by the bear, it increased visibility for the company. It is unclear, however, if their initial profit boom from their insensitive campaign will continue to add to growth for the company or if the negatives from this controversy will outweigh the positives.
1. Did Vermont Teddy Bear act socially irresponsible?
Yes, as Vermont’s Governor pointed out, the “Crazy for You” teddy bear was very insensitive and it stigmatized those suffering from mental health problems. The company could have acted more responsible by donating a portion of the profits to increase mental health awareness.
2. Was the controversy a positive or a negative for the company?
A positive. Although some people may have been turned off by the bear, it increased visibility for the company. It is unclear, however, if their initial profit boom from their insensitive campaign will continue to add to growth for the company or if the negatives from this controversy will outweigh the positives.
Chapter 4: 5.3
5.3: Explain how exchange rates can affect a firm’s global sales.
If a country’s currency depreciates relative to the foreign company’s currency, the consumers will have to pay a higher price to buy the foreign goods. As their currency depreciates, the demand for imports declines. Conversely, as a country’s currency depreciates, their exports are sold much cheaper and thus increases demand for their products in markets where their currency is appreciating in comparison.
If a country’s currency depreciates relative to the foreign company’s currency, the consumers will have to pay a higher price to buy the foreign goods. As their currency depreciates, the demand for imports declines. Conversely, as a country’s currency depreciates, their exports are sold much cheaper and thus increases demand for their products in markets where their currency is appreciating in comparison.
Chapter 4: 4.4
4.4: Why is direct investment considered risky?
Direct investors have either a controlling interest or a large minority interest in a firm. This gives them the greatest potential reward as well as a great deal of risk. Direct foreign investors are usually highly regulated by their host country as the income from the company flows in and out of the country and has a profound impact on their economy.
Direct investors have either a controlling interest or a large minority interest in a firm. This gives them the greatest potential reward as well as a great deal of risk. Direct foreign investors are usually highly regulated by their host country as the income from the company flows in and out of the country and has a profound impact on their economy.
Chapter 4: 4.3
4.3What are some of the advantages and disadvantages of entering into a joint venture?
- Advantages:
- Quick and relatively inexpensive way to go global and to gain needed expertise.
- Shared Costs, Shared losses
- Disadvantages:
- Joint Ventures can be very risky
- Many joint ventures fail
- Many fall victim to takeover
- Often times, joint venture partners cannot agree on management strategies and policies.
- Advantages:
- Quick and relatively inexpensive way to go global and to gain needed expertise.
- Shared Costs, Shared losses
- Disadvantages:
- Joint Ventures can be very risky
- Many joint ventures fail
- Many fall victim to takeover
- Often times, joint venture partners cannot agree on management strategies and policies.
Chapter 4: 4.2
4.2: Explain how the US Commercial Service can help companies wanting to enter the international market.
- The US Commercial Service in an entity within the Department of Commerce and provides more than 100 US cities and 150 overseas offices to help new exporters. It also helps those already in the international market place. Their primary services are marketing research, locating qualified buyers, trade events and global business consulting.
For counseling and advocacy, the US Commercial Service will help support government-government relations and will advocate on your behalf to allow your entry into the market. They provide advice and consulting support to ensure that your company has the information it needs to succeed. They will also help identify markets, launch products, develop major product opportunities, resolve market entry questions and receive assistance on regulatory matters.
The USCS provides a great deal of market research. Companies get access to a library of information on new regulations currency fluctuations, business trends and government-financed projects. Additionally, they obtain specific intelligence on export prospects their products or services in potential markets. And they get low-cost logistical and administrative support while on business travel.
The USCS finds qualified international buyers, or agents without traveling overseas. They also link you up with agents, distributors, association and government contracts, sales representatives licensing or joint venture partners and other strategic partners in your targeted export market. Companies are also given access to promote their products and services to more than 400,000 internation buyers in 145 countries by appearing in the agency’s “Commercial News USA” product catalog. Lastly, they provide low-cost credit checks or due diligence reports on international companies to help them avoid costly mistakes.
The government agency also promotes many trade events and related services. Trade shows at trade pavilions are a great way to show off your new product in new markets. Companies can also get easier access to international trade shows by participating in the trade fair certification program. The USCS also arranges meetings with international buyers by recruiting more than 125,000 new international buyers and distributors to 32 top US Trade Shows per year. Also, the USCS provides support for trade missions to help maximize contact with qualified distributors, sales reps or partners in one to four countries. The USCS also provides the International Catalog Exhibition program to help a company showcase their potential products and services.
- The US Commercial Service in an entity within the Department of Commerce and provides more than 100 US cities and 150 overseas offices to help new exporters. It also helps those already in the international market place. Their primary services are marketing research, locating qualified buyers, trade events and global business consulting.
For counseling and advocacy, the US Commercial Service will help support government-government relations and will advocate on your behalf to allow your entry into the market. They provide advice and consulting support to ensure that your company has the information it needs to succeed. They will also help identify markets, launch products, develop major product opportunities, resolve market entry questions and receive assistance on regulatory matters.
The USCS provides a great deal of market research. Companies get access to a library of information on new regulations currency fluctuations, business trends and government-financed projects. Additionally, they obtain specific intelligence on export prospects their products or services in potential markets. And they get low-cost logistical and administrative support while on business travel.
The USCS finds qualified international buyers, or agents without traveling overseas. They also link you up with agents, distributors, association and government contracts, sales representatives licensing or joint venture partners and other strategic partners in your targeted export market. Companies are also given access to promote their products and services to more than 400,000 internation buyers in 145 countries by appearing in the agency’s “Commercial News USA” product catalog. Lastly, they provide low-cost credit checks or due diligence reports on international companies to help them avoid costly mistakes.
The government agency also promotes many trade events and related services. Trade shows at trade pavilions are a great way to show off your new product in new markets. Companies can also get easier access to international trade shows by participating in the trade fair certification program. The USCS also arranges meetings with international buyers by recruiting more than 125,000 new international buyers and distributors to 32 top US Trade Shows per year. Also, the USCS provides support for trade missions to help maximize contact with qualified distributors, sales reps or partners in one to four countries. The USCS also provides the International Catalog Exhibition program to help a company showcase their potential products and services.
Chapter 4: 2.1
2.1 What are the pros and cons of Rubbermaid’s strategy?
Pros:
- They could save on costs by producing and marketing the same products all across the world instead of having several different product lines for each market.
- This strategy will lead to an increase in profits and their overall global market share.
- They will be able to tap into untapped markets.
Cons:
- Kitchens across the world are very different. A market standarzation strategy will be very difficult to achieve. Fridges, for example, are much smaller in Europe than here and some of their products that sell well in the USA won’t sell in Europe.
- It is unlikely that they will be able to offer the same products in each market.
Pros:
- They could save on costs by producing and marketing the same products all across the world instead of having several different product lines for each market.
- This strategy will lead to an increase in profits and their overall global market share.
- They will be able to tap into untapped markets.
Cons:
- Kitchens across the world are very different. A market standarzation strategy will be very difficult to achieve. Fridges, for example, are much smaller in Europe than here and some of their products that sell well in the USA won’t sell in Europe.
- It is unlikely that they will be able to offer the same products in each market.
Chapter 3: 9.3
9.3: What topics are currently receiving attention in FDA news? What effect has the attention had on market share?
“Pfizer’s Camptosar Faces Generic Competition”
– Pfizer’s Chemotherapy agent, Camptosar, lost it’s patent last month and opens the door for competition. This will potentially reduce Pfizer’s share of the market as generic drug manufacturers can now bring the same product to the market at a much reduced rate. Overall, this will bring the cost of this specific drug down.
“UK’s MHRA Calls for Quicker Clinical Trial Safety Reporting”
– This will make the drug companies in the UK more accountable for reporting the safety signals to UK consumers. This can potentially drive the cost of drugs up worldwide but will, undoubtedly, increase the safety of new drugs as they come to the market. In addition, this increased safety make put more consumers at ease in the long run and actually strengthen consumer confidence in their brand.
“Solvay Gets Good and Bad News From Partners”
– The good news for Solvay was that the FDA approved two new drugs to treat various mental illnesses. This will increase supply of these types of pharmaceuticals in the market and drive up competition for consumers. The bad news for them was that they lost a $20M partnership from Wyeth to develop two new treatments for other mental illnesses. This will be a blow to the company and will hurt future operations but will not immediately have much impact on the market.
“Pfizer’s Camptosar Faces Generic Competition”
– Pfizer’s Chemotherapy agent, Camptosar, lost it’s patent last month and opens the door for competition. This will potentially reduce Pfizer’s share of the market as generic drug manufacturers can now bring the same product to the market at a much reduced rate. Overall, this will bring the cost of this specific drug down.
“UK’s MHRA Calls for Quicker Clinical Trial Safety Reporting”
– This will make the drug companies in the UK more accountable for reporting the safety signals to UK consumers. This can potentially drive the cost of drugs up worldwide but will, undoubtedly, increase the safety of new drugs as they come to the market. In addition, this increased safety make put more consumers at ease in the long run and actually strengthen consumer confidence in their brand.
“Solvay Gets Good and Bad News From Partners”
– The good news for Solvay was that the FDA approved two new drugs to treat various mental illnesses. This will increase supply of these types of pharmaceuticals in the market and drive up competition for consumers. The bad news for them was that they lost a $20M partnership from Wyeth to develop two new treatments for other mental illnesses. This will be a blow to the company and will hurt future operations but will not immediately have much impact on the market.
Chapter 3: 5.1
5.1: How are the following corporations going to continue growth as the baby boomer generation continues to age?
A: Bally’s Health Clubs:
- they may begin promoting the benefits of physical fitness to an older crowd.
- They may begin offering classes specifically designed for baby boomers.
- They could offer reduced rates for specific hours of entry that would have broader appeal to baby boomers as they retire (e.g. 8-12 PM memberships, etc.).
B: McDonald’s:
- Could offer time specific discounts for older people (e.g. discount from 7-12).
- Might offer new products specific to older consumers
- Maybe they could even offer a McPharmacy within their stores??
C: Whirpool Corp:
- They may introduce programs for older Americans to purchase their products at a reduced rate or with financing incentives.
- They could bring more new, age-specific products to the market designed specifically for the older generation.
- Use brand preference in their age specific marketing plan.
D: The State of Florida
- They will continue to make Florida the nation’s hotspot for retirees.
- They would need to remake their image as a place for old people. This would help them attract younger retirees who view Florida negatively.
- They could offer new attractions and programs specifically designed for the baby boomers impending boom to Florida.
- Heavily invest in infrastructure – roads, buildings, public transportation, city services, etc. to offset the potential influx of new residents.
E: Target Stores:
- Build many new stores in Florida!
- Offer baby boomer conveniences (drive thru pharmacies, in-store clinics, etc.).
- Provide discount days for seniors (10% on Tuesday mornings).
A: Bally’s Health Clubs:
- they may begin promoting the benefits of physical fitness to an older crowd.
- They may begin offering classes specifically designed for baby boomers.
- They could offer reduced rates for specific hours of entry that would have broader appeal to baby boomers as they retire (e.g. 8-12 PM memberships, etc.).
B: McDonald’s:
- Could offer time specific discounts for older people (e.g. discount from 7-12).
- Might offer new products specific to older consumers
- Maybe they could even offer a McPharmacy within their stores??
C: Whirpool Corp:
- They may introduce programs for older Americans to purchase their products at a reduced rate or with financing incentives.
- They could bring more new, age-specific products to the market designed specifically for the older generation.
- Use brand preference in their age specific marketing plan.
D: The State of Florida
- They will continue to make Florida the nation’s hotspot for retirees.
- They would need to remake their image as a place for old people. This would help them attract younger retirees who view Florida negatively.
- They could offer new attractions and programs specifically designed for the baby boomers impending boom to Florida.
- Heavily invest in infrastructure – roads, buildings, public transportation, city services, etc. to offset the potential influx of new residents.
E: Target Stores:
- Build many new stores in Florida!
- Offer baby boomer conveniences (drive thru pharmacies, in-store clinics, etc.).
- Provide discount days for seniors (10% on Tuesday mornings).
Monday, March 3, 2008
Chapter 2 Questions
Question 2.1
How can a new company best define its mission statement? Can you find good and bad mission statements on the Internet? How might you improve the bad ones?
A new company’s mission statement should focus on the market or markets the organization is attempting to serve rather than on the good or service offered. They should avoid stating their mission too narrowly as well as too broadly. The goal would be to make sure their mission statement can stand the test of time.
Good:
• "To enable people and businesses throughout the world to realize their full potential."—Microsoft
• "Organize the world's information and make it universally accessible and useful."—Google
Bad:
• "Provide society with superior products and services by developing innovations and solutions that improve the quality of life and satisfy customer needs, and to provide employees with meaningful work and advancement opportunities, and investors with a superior rate of return."—Merck
--Their mission statement seems very generic. Unlike the two above, Merck’s mission could be used with any company and doesn’t even remotely describe what they do.
Question 4.1
Competition in the private courier sector is fierce. UPS and Fedex dominate but other companies, such as DHL and even the USPS, still have a decent chunk of the express package delivery market. Perform a mini-situation analysis on one of the companies listed below by stating one strength, one weakness, one opportunity and one threat.
UPS:
Strengths: Global brand identification and a very strong distribution network
Weaknesses: Perception of ground delivery instead of overnight and large union representation.
Opportunities: Expansion of online shopping and the emergence of a new and strong international middle class.
Threats: Increasing Fuel Costs, Competitve Landscape (DHL, USPS, FedEx) and Potentially slowing global economy might slow the demand for shipping.
Cirque Du Soleil Questions:
1. Based on what you have read in this case, outline a rudimentary SWOT analysis for Cirque du Soliel.
Strengths – Shows are very profitable, partnerships with casinos, brand identification, creativity.
Weaknesses – Market saturation in Las Vegas, splits profits with casino partners.
Opportunities – International Marketplace
Threats – Imitation, slowing economy could slow profits.
2. List and describe at least three keys to Cirque du Soliel’s competitive advantage.
Many key in-house resources: Cirque’s team of 32 talent scouts and casting staff that recruits and cultivates performers from around the world as well as their over 300 seamstresses, engineers and makeup artists.
Casino Partnerships: Partnering with the casinos can offset as much as 75% of their production costs. In addition, the saturation in Las Vegas provides them with a constant stream of business of tourists from all over the world.
“Let the creative people run it.” Business policies do not interfere with the creative process.
3. Explain how Cirque du Soliel implements, evaluates and controls the elements of its marketing plan.
Cirque implements their marketing plan by designing shows with unique personalities that are intended to evoke awe, wonder, inspiration and reflection. This is possible as they have a staff dedicated to producing the best product and most of their material is produced in-house.
Evaluation of their marketing plan is likely numbers driven: Production costs, revenue from shows, audience reception, etc.
Control: They monitor the effectiveness of their marketing plan. It is Dragone and his team of creative and production personnel, not a predetermined budget, that defines the content, style and material requirements for each project.
How can a new company best define its mission statement? Can you find good and bad mission statements on the Internet? How might you improve the bad ones?
A new company’s mission statement should focus on the market or markets the organization is attempting to serve rather than on the good or service offered. They should avoid stating their mission too narrowly as well as too broadly. The goal would be to make sure their mission statement can stand the test of time.
Good:
• "To enable people and businesses throughout the world to realize their full potential."—Microsoft
• "Organize the world's information and make it universally accessible and useful."—Google
Bad:
• "Provide society with superior products and services by developing innovations and solutions that improve the quality of life and satisfy customer needs, and to provide employees with meaningful work and advancement opportunities, and investors with a superior rate of return."—Merck
--Their mission statement seems very generic. Unlike the two above, Merck’s mission could be used with any company and doesn’t even remotely describe what they do.
Question 4.1
Competition in the private courier sector is fierce. UPS and Fedex dominate but other companies, such as DHL and even the USPS, still have a decent chunk of the express package delivery market. Perform a mini-situation analysis on one of the companies listed below by stating one strength, one weakness, one opportunity and one threat.
UPS:
Strengths: Global brand identification and a very strong distribution network
Weaknesses: Perception of ground delivery instead of overnight and large union representation.
Opportunities: Expansion of online shopping and the emergence of a new and strong international middle class.
Threats: Increasing Fuel Costs, Competitve Landscape (DHL, USPS, FedEx) and Potentially slowing global economy might slow the demand for shipping.
Cirque Du Soleil Questions:
1. Based on what you have read in this case, outline a rudimentary SWOT analysis for Cirque du Soliel.
Strengths – Shows are very profitable, partnerships with casinos, brand identification, creativity.
Weaknesses – Market saturation in Las Vegas, splits profits with casino partners.
Opportunities – International Marketplace
Threats – Imitation, slowing economy could slow profits.
2. List and describe at least three keys to Cirque du Soliel’s competitive advantage.
Many key in-house resources: Cirque’s team of 32 talent scouts and casting staff that recruits and cultivates performers from around the world as well as their over 300 seamstresses, engineers and makeup artists.
Casino Partnerships: Partnering with the casinos can offset as much as 75% of their production costs. In addition, the saturation in Las Vegas provides them with a constant stream of business of tourists from all over the world.
“Let the creative people run it.” Business policies do not interfere with the creative process.
3. Explain how Cirque du Soliel implements, evaluates and controls the elements of its marketing plan.
Cirque implements their marketing plan by designing shows with unique personalities that are intended to evoke awe, wonder, inspiration and reflection. This is possible as they have a staff dedicated to producing the best product and most of their material is produced in-house.
Evaluation of their marketing plan is likely numbers driven: Production costs, revenue from shows, audience reception, etc.
Control: They monitor the effectiveness of their marketing plan. It is Dragone and his team of creative and production personnel, not a predetermined budget, that defines the content, style and material requirements for each project.
Chapter 1 Questions
Question 1.1:
What is the AMA? What does it do? How do its services benefit marketers?
With over 38,000 members worldwide, the American Marketing Association is a professional association for individuals and organizations involved in the practice, teaching and study of marketing worldwide.
The AMA’s principle roles are improving, promoting and supporting the profession of marketing.
• Improving - Advancing marketing competencies, practice and thought leadership.
• Promoting - Being an advocate for marketing and promoting its importance, efficacy and ethics.
• Supporting - Being an essential resource for marketing information, education/training and relationships.
The AMA benefits marketers by offering them opportunities for professional development to become a more effective marketer. Membership also provides marketers valuable networking opportunities and the ability to access thousands of others in the field of marketing. Finally members also gain valuable information about the field of marketing to include access to two publications, a library of case studies as well as a database of relevant articles in the field of marketing.
Question 2.3:
Give an example of a company that might be successfully following a production orientation. Why might a firm in the industry be successful following such an orientation?
Firms that follow a production orientation can be successful in following such an orientation because they focus on the internal capabilities of the organization rather than the desires and needs of the marketplace. Sometimes what a firm can best produce is exactly what the marketplace wants.
Netflix Questions:
1. Describe the elements of the exchange process as they occur between Netflix and its customers.
Customers of Netflix give up money in order to gain access to their services. They also give up the ability to get their movies instantly at the store as they have to wait for the movie to arrive by mail. Netflix offers its customers lightning fast delivery of its selection of over 60,000 titles and has 34 strategically placed distribution centers. Netflix also gives up gaining late fees in order to attract customers and both parties enter into a service contract that can be cancelled at any time.
2. Which marketing management philosophy does Netflix subscribe to?
Both the marketing concept and market orientation philosophies
3. How does Netflix’s approach to relationship marketing increase customer satisfaction?
Netflix is customer driven and responds to customer demands. They continuously add features and titles based on customer needs and do everything they can to continue to keep the customer and attract new ones.
What is the AMA? What does it do? How do its services benefit marketers?
With over 38,000 members worldwide, the American Marketing Association is a professional association for individuals and organizations involved in the practice, teaching and study of marketing worldwide.
The AMA’s principle roles are improving, promoting and supporting the profession of marketing.
• Improving - Advancing marketing competencies, practice and thought leadership.
• Promoting - Being an advocate for marketing and promoting its importance, efficacy and ethics.
• Supporting - Being an essential resource for marketing information, education/training and relationships.
The AMA benefits marketers by offering them opportunities for professional development to become a more effective marketer. Membership also provides marketers valuable networking opportunities and the ability to access thousands of others in the field of marketing. Finally members also gain valuable information about the field of marketing to include access to two publications, a library of case studies as well as a database of relevant articles in the field of marketing.
Question 2.3:
Give an example of a company that might be successfully following a production orientation. Why might a firm in the industry be successful following such an orientation?
One great example is one provided in the book, 3M. 3M produces products like post-it notes, scotch tape, etc. They provide these products regardless of marketplace demands. Their products are staples - like pencils, etc.
Firms that follow a production orientation can be successful in following such an orientation because they focus on the internal capabilities of the organization rather than the desires and needs of the marketplace. Sometimes what a firm can best produce is exactly what the marketplace wants.
Netflix Questions:
1. Describe the elements of the exchange process as they occur between Netflix and its customers.
Customers of Netflix give up money in order to gain access to their services. They also give up the ability to get their movies instantly at the store as they have to wait for the movie to arrive by mail. Netflix offers its customers lightning fast delivery of its selection of over 60,000 titles and has 34 strategically placed distribution centers. Netflix also gives up gaining late fees in order to attract customers and both parties enter into a service contract that can be cancelled at any time.
2. Which marketing management philosophy does Netflix subscribe to?
Both the marketing concept and market orientation philosophies
3. How does Netflix’s approach to relationship marketing increase customer satisfaction?
Netflix is customer driven and responds to customer demands. They continuously add features and titles based on customer needs and do everything they can to continue to keep the customer and attract new ones.
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