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 The site is out of date but provides the ability to print out informative handouts in PDF format – a plus for the site.
Monday, March 10, 2008
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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