Perceptual mapping and the definition from Wikipedia, is a tool for spotting a perception of a product or service. It starts by an ‘X and Y axis’ chart being drawn up, and criteria, is then added, from both ends of the spectrum. Such as value being up and down (X), and conservative and liberal (Y) views going across, on a product. This can be an aide to marketers to show where public perception of one’s product may lay.
On the VALS test, I was found to be an Innovator, and Achiever. I like to take charge and desire achievement. I enjoy a challenge and manage risk.
Monday, March 30, 2009
Chapter Nine Review & Application
2.1 Break into groups. Can we classify each of the following products into category, convenience, shopping, specialty, unsought- that they think fits best from their perspective as consumers. Coca Cola, car stereo, winter coat, shoes, life insurance, blue jeans, fast food hamburgers, shampoo canned vegetables, curtains.
Coca Cola- shopping Shoes- shopping Life insurance-unsought Blue jeans-shopping
Car stereo-specialty Winter coat-shopping Fast food-convenience Shampoo-shopping
Canned vegetables-convenience Curtains-specialty
4.2: How does Hormel use its web site to promote its store brands? Is the site designed more to promote the company or its brands? Check out the Spam Web site. How do you think Hormel is able to successfully sustain this brand that is often the punch line to a joke?Hormel went for branding over company promotion. Hormel neatly separated its brands by refrigerated or pantry products. It focused on meal making by using an interactive kitchen.
The Spam.com site is fantastic. They first go for recipes, then fun and games, returning back to different Spam products. I think the more people hear about taste Spam and internet spam the more the product is marketed. The old slogan has been said, any marketing news is good news.
5.1 Find a product at home that has a distinctive package. Write a paragraph evaluating that package based on the four functions of packaging discussed in the chapter.
I went with Trader Joe’s Quick Cook Steel Cut Oats. The oatmeal is packaged in a resealable and recyclable can with a label going completely around. The product label features a photo of a breakfast meal consisting of simple oatmeal with fruit and cinnamon on top and a glass of milk. In addition, the nutritional facts, cooking directions, ingredients and UPC code are printed. Oatmeal, by itself, is a bit dull. By adding brown sugar, fruit, and/or granola, it becomes a healthy and tasty breakfast. The meal takes a convenient eight minutes to prepare. The oatmeal meets all four requirements: to hold and protect its contents, promote how the product is used, convenience and the ability to be recycled when finished.
6.1 List the countries to which Levi Strauss and Co. markets through the web site. How do the product offerings differ between the U.S. and European selections?
The first thing you notice is Quentin Tarantino’s style rock and roll playing on the Deutschland Levi site. In comparison, the USA site has no music going. The USA site features soft spring colors and relaxed clothes. The German site has an industrial theme, with black and dark grey colors. It’s a little edgy.
The American site had three main areas: destructive washes, dark side and capital E. The destructive side featured worn out jeans. The dark side featured the original heavy denim and regular jeans. The capital E featured an upscale line or premium jeans.
The Deutschland Levi site featured four areas. The first area featured is the regular jean area. Next was a link to a hip hop selection of jeans. The third part featured an urban, city mix of jeans and clothes. Lastly, one could click on an area featuring traditional western jeans.
Coca Cola- shopping Shoes- shopping Life insurance-unsought Blue jeans-shopping
Car stereo-specialty Winter coat-shopping Fast food-convenience Shampoo-shopping
Canned vegetables-convenience Curtains-specialty
4.2: How does Hormel use its web site to promote its store brands? Is the site designed more to promote the company or its brands? Check out the Spam Web site. How do you think Hormel is able to successfully sustain this brand that is often the punch line to a joke?Hormel went for branding over company promotion. Hormel neatly separated its brands by refrigerated or pantry products. It focused on meal making by using an interactive kitchen.
The Spam.com site is fantastic. They first go for recipes, then fun and games, returning back to different Spam products. I think the more people hear about taste Spam and internet spam the more the product is marketed. The old slogan has been said, any marketing news is good news.
5.1 Find a product at home that has a distinctive package. Write a paragraph evaluating that package based on the four functions of packaging discussed in the chapter.
I went with Trader Joe’s Quick Cook Steel Cut Oats. The oatmeal is packaged in a resealable and recyclable can with a label going completely around. The product label features a photo of a breakfast meal consisting of simple oatmeal with fruit and cinnamon on top and a glass of milk. In addition, the nutritional facts, cooking directions, ingredients and UPC code are printed. Oatmeal, by itself, is a bit dull. By adding brown sugar, fruit, and/or granola, it becomes a healthy and tasty breakfast. The meal takes a convenient eight minutes to prepare. The oatmeal meets all four requirements: to hold and protect its contents, promote how the product is used, convenience and the ability to be recycled when finished.
6.1 List the countries to which Levi Strauss and Co. markets through the web site. How do the product offerings differ between the U.S. and European selections?
The first thing you notice is Quentin Tarantino’s style rock and roll playing on the Deutschland Levi site. In comparison, the USA site has no music going. The USA site features soft spring colors and relaxed clothes. The German site has an industrial theme, with black and dark grey colors. It’s a little edgy.
The American site had three main areas: destructive washes, dark side and capital E. The destructive side featured worn out jeans. The dark side featured the original heavy denim and regular jeans. The capital E featured an upscale line or premium jeans.
The Deutschland Levi site featured four areas. The first area featured is the regular jean area. Next was a link to a hip hop selection of jeans. The third part featured an urban, city mix of jeans and clothes. Lastly, one could click on an area featuring traditional western jeans.
Viva Las Vegas
1. What bases does the LVCVA use for segmenting its target market?
LVCVA uses a multilevel promotion strategy for a broad swipe of visitors including targeting Canadians, cities that allow gambling by using a national television and even Hispanic speaking commercials.
2. Does the LVCVA use an undifferentiated, a concentrated, or a multi segment targeting strategy? Why? Should the LVCVA be concerned with cannibalization?
I found LVCVA goes after almost every group: families, older Americans, and the wedding scene. The catchy national advertising is a cost savings without the disadvantage of bland product offerings. Therefore, the targeting strategy seems undifferentiated. However, they also go after concentrated groups such as Hispanics, convention goers, and target cities that already have gambling. However, the multi segment is also used. For example: LVCVA targets bachelorette partiers and families at the same time.
Should Vegas be concerned about cannibalization? Yes, very much so. A pyramid shaped hotel to a visitor, a decade ago, may have been a favorite. However, there are bigger and brighter hotels every year, and visitors may feel the need to branch out to brighter casinos leaving past hotels in the dust.
3. Think of the many reasons a person might want to travel to Las Vegas. Given a target market of all U.S. citizens aged 18-75, speculate how you might segment that market by lifestyle.
I would go after the northern climate crowd, such as Canadians, northern state Americans, and even Scottish, and have a curling bonspiel. Make a rink in a hotel. Have the game colors match casino chips. Have the winner take all, and televise it. Boxing, cage fighting, magic and animal acts have all been done before. A big curling event would be new, inviting and culturally minded. Plus, curling is a lifetime sport for all ages and genders. The game is prided on no arguing, and that filters down. So, there wouldn’t be as much need for additional security.
4. What do you think makes the LVCVA so successful?
LVCVA makes inroads because they hit the ground running at all levels. They use a multi-level promotional approach, hitting broad to narrow spectrums of potential visitors. On top of that, they use a grassroots approach to marketing and relationship building style. Then they monitor changes in visitor segments. With the information, they make changes in their marketing –adaptive. LVCVA doesn’t just sit around Vegas marketing; they promote their dusty town all over.
LVCVA uses a multilevel promotion strategy for a broad swipe of visitors including targeting Canadians, cities that allow gambling by using a national television and even Hispanic speaking commercials.
2. Does the LVCVA use an undifferentiated, a concentrated, or a multi segment targeting strategy? Why? Should the LVCVA be concerned with cannibalization?
I found LVCVA goes after almost every group: families, older Americans, and the wedding scene. The catchy national advertising is a cost savings without the disadvantage of bland product offerings. Therefore, the targeting strategy seems undifferentiated. However, they also go after concentrated groups such as Hispanics, convention goers, and target cities that already have gambling. However, the multi segment is also used. For example: LVCVA targets bachelorette partiers and families at the same time.
Should Vegas be concerned about cannibalization? Yes, very much so. A pyramid shaped hotel to a visitor, a decade ago, may have been a favorite. However, there are bigger and brighter hotels every year, and visitors may feel the need to branch out to brighter casinos leaving past hotels in the dust.
3. Think of the many reasons a person might want to travel to Las Vegas. Given a target market of all U.S. citizens aged 18-75, speculate how you might segment that market by lifestyle.
I would go after the northern climate crowd, such as Canadians, northern state Americans, and even Scottish, and have a curling bonspiel. Make a rink in a hotel. Have the game colors match casino chips. Have the winner take all, and televise it. Boxing, cage fighting, magic and animal acts have all been done before. A big curling event would be new, inviting and culturally minded. Plus, curling is a lifetime sport for all ages and genders. The game is prided on no arguing, and that filters down. So, there wouldn’t be as much need for additional security.
4. What do you think makes the LVCVA so successful?
LVCVA makes inroads because they hit the ground running at all levels. They use a multi-level promotional approach, hitting broad to narrow spectrums of potential visitors. On top of that, they use a grassroots approach to marketing and relationship building style. Then they monitor changes in visitor segments. With the information, they make changes in their marketing –adaptive. LVCVA doesn’t just sit around Vegas marketing; they promote their dusty town all over.
Chapter Seven Review & Application
7.2 Go to the Web site of JCPenny.com and Target, and compare the presentation of women’s fashions at the web sites. What are the major differences? Which site is more designer focused, and which is more brand focused? Which company’s approach do you think will appeal more to the ‘holy grail’ target market of 25-35 year old women?
Mind you, I’m a past iron worker. I found the JC Penny.com site to have more fashion orientation. They had a runway show plus an area to meet the designers. It had more - styles, sizes and features. On the opening page of the site, a lady appeared to have on clown makeup which I thought was strange.
The Target.com site was a bit relaxed. It had some designers on it that I hadn’t heard of. Target featured some “bargainistas and fashionistas”, which means some nice clothes for the right price. There was a fashion video that featured unbelievable prices. “Expect more pay less “was the motto at Target.
Between the two sites, who will hit the big market of 25-35 year olds? That is a good question. I’ve shopped at Target, and I see a lot of that demographic there. The JC Penny site had a wider selection that included a broad market segmentation. For example, there was an area where one could learn which clothing items fit appropriate body types. If it were a site to site comparison, JC Penny would have it. However, from my own eyes and the current economy, Target is the winner.
9.1 Choose a product category (pickup trucks) and identify at least three different brands and their respective positioning strategies. How is each position communicated to the target audience?
Among the big American truck makers, Ford, Chevrolet and Dodge, there are three different market strategies aimed at buyers. The blue oval, blue collar Ford F-150 was selling the work aspect with a Hollywood handyman actor. The F series went after a buyer who was looking for innovative features, capabilities, engineering, interior and safety.
Hey, does that thing have a hemi? Dodge has a new 1500 Ram that is aiming for those interested in discount. The high horsepower hemi upgrades are free this month. The motto at Dodge is: “All guts. All glory”. The Dodge.com site did feature an area that had the recent awards for the new Ram.
The bow tie beauty, Chevrolet’s recently redesigned Silverado, is aiming for a buyer looking for fuel economy and dependability. Chevy is touting new trucks that can run on the marginalized E-85 fuel. The low cost of ownership may appeal to past fuel shocked customers.
Mind you, I’m a past iron worker. I found the JC Penny.com site to have more fashion orientation. They had a runway show plus an area to meet the designers. It had more - styles, sizes and features. On the opening page of the site, a lady appeared to have on clown makeup which I thought was strange.
The Target.com site was a bit relaxed. It had some designers on it that I hadn’t heard of. Target featured some “bargainistas and fashionistas”, which means some nice clothes for the right price. There was a fashion video that featured unbelievable prices. “Expect more pay less “was the motto at Target.
Between the two sites, who will hit the big market of 25-35 year olds? That is a good question. I’ve shopped at Target, and I see a lot of that demographic there. The JC Penny site had a wider selection that included a broad market segmentation. For example, there was an area where one could learn which clothing items fit appropriate body types. If it were a site to site comparison, JC Penny would have it. However, from my own eyes and the current economy, Target is the winner.
9.1 Choose a product category (pickup trucks) and identify at least three different brands and their respective positioning strategies. How is each position communicated to the target audience?
Among the big American truck makers, Ford, Chevrolet and Dodge, there are three different market strategies aimed at buyers. The blue oval, blue collar Ford F-150 was selling the work aspect with a Hollywood handyman actor. The F series went after a buyer who was looking for innovative features, capabilities, engineering, interior and safety.
Hey, does that thing have a hemi? Dodge has a new 1500 Ram that is aiming for those interested in discount. The high horsepower hemi upgrades are free this month. The motto at Dodge is: “All guts. All glory”. The Dodge.com site did feature an area that had the recent awards for the new Ram.
The bow tie beauty, Chevrolet’s recently redesigned Silverado, is aiming for a buyer looking for fuel economy and dependability. Chevy is touting new trucks that can run on the marginalized E-85 fuel. The low cost of ownership may appeal to past fuel shocked customers.
Monday, March 23, 2009
Chapter Six Questions and Answers
2.1 How could you use the Web site www.brobonlin.com to help define a target market and develop a marketing plan?
I found Brobonlin’s site challenging. McDaniel, Lamb and Hair (2008) did a better job defining online marketing firms. The successes of these new firms were based on new applications that can locate a market. This was followed by improving efficiency, lowering cost, helping out the supply chain and keeping the customers coming back. What I found interesting on B to B’s site was vertical marketing. The example featured was on a new automotive product for an upcoming show and how B to B developed a plan to get the buzz out on the new automotive product which aided in the success.
3.1 Why is relationship or personal selling the best way to promote in business marketing?
Relationship selling is the challenge in business today. Internet sales are price sensitive. Face to face sales are where the profits and relationships are. Customers have demanding needs and the competition is fierce. Loyal customers make companies lots of money. The long term customer is what businesses want. What business often lose sight of is that when the environment changes, so does the customer base.
5.1 Explain how a marketer can use the Web site www.census.gov/epcdwwwnaics.html and convert SIC date to the NAICS.
Standard industrial classification (SIC) is the old system of grouping goods and services. The new system is North American business establishments (NAICS). The system is designed to work with NAFTA (trade) and for business marketers. NAICS is a tool for classifying what economic sector goods or services belong to by using numbers/digits. SIC classification only provided a limited amount of information. The new system allows marketers to have direct multi-country data of what goods and services are being moved. The downside is: as the number of digits grows, so does confusion.
5.2 Pick a product and determine its NAICS code. How easy was it to trace the groups and sectors?
I randomly chose 3111, and it turned out to be Animal Food Manufacturing.
I didn’t find the government site easy to use at all. I used a search engine versus the government site for the marketing information. I found that the projection for animal food forecasted steady growth. In 2006, there were 28,000 animal food businesses, and there have been some mergers occurring. Note: I retried the search on the site and found clicking on the buisness link on the site, and then entering the NAICS code unleashed a ton of information.
I found Brobonlin’s site challenging. McDaniel, Lamb and Hair (2008) did a better job defining online marketing firms. The successes of these new firms were based on new applications that can locate a market. This was followed by improving efficiency, lowering cost, helping out the supply chain and keeping the customers coming back. What I found interesting on B to B’s site was vertical marketing. The example featured was on a new automotive product for an upcoming show and how B to B developed a plan to get the buzz out on the new automotive product which aided in the success.
3.1 Why is relationship or personal selling the best way to promote in business marketing?
Relationship selling is the challenge in business today. Internet sales are price sensitive. Face to face sales are where the profits and relationships are. Customers have demanding needs and the competition is fierce. Loyal customers make companies lots of money. The long term customer is what businesses want. What business often lose sight of is that when the environment changes, so does the customer base.
5.1 Explain how a marketer can use the Web site www.census.gov/epcdwwwnaics.html and convert SIC date to the NAICS.
Standard industrial classification (SIC) is the old system of grouping goods and services. The new system is North American business establishments (NAICS). The system is designed to work with NAFTA (trade) and for business marketers. NAICS is a tool for classifying what economic sector goods or services belong to by using numbers/digits. SIC classification only provided a limited amount of information. The new system allows marketers to have direct multi-country data of what goods and services are being moved. The downside is: as the number of digits grows, so does confusion.
5.2 Pick a product and determine its NAICS code. How easy was it to trace the groups and sectors?
I randomly chose 3111, and it turned out to be Animal Food Manufacturing.
I didn’t find the government site easy to use at all. I used a search engine versus the government site for the marketing information. I found that the projection for animal food forecasted steady growth. In 2006, there were 28,000 animal food businesses, and there have been some mergers occurring. Note: I retried the search on the site and found clicking on the buisness link on the site, and then entering the NAICS code unleashed a ton of information.
Chapter Five Questions and Answers
4.1 Describe the three categories of consumer decision-making behavior. Name typical products for which each type of consumer behavior is used.
Buying goods or services starts with a few steps. The first step is that a need for the product or service must occur. This is followed by some sort of knowledge of an item or service, and, if things are right, a purchase occurs. A need is a void in a state of mind where a product could fit the bill. A consumer may buy in a split second, or it may take some time as the consumer learns about a product and the competition. Furthermore, the time it takes to make a decision is related to past product knowledge and to the size of the purchase. Big purchases, such as a car or home, typically take more time. Another example would be when a product or service is known to or perceived to fill gap, a purchase occurs.
A good example of consumer decision making is at a sporting event, where there are limited choices and consequences. For example, a sports fan may attend a basketball game and visit the concession stands and purchase a Budweiser. The beverage may cost five dollars (double the normal price), and the consumer thinks nothing of it. The choices often are Bud or Bud light and this decision occurs rapidly. The fan may enjoy the beverage and realize that may cause him to visit the rest room more often (missing part of the game).
Another consumer decision making example process is buying a car. High fuel prices have sent traditional truck buyers seeking fuel efficient cars (the need). A buyer will look at amenities, fuel efficiency, and style among a number of brands and seek out what would fit best (obtaining knowledge). If the moon and the stars are aligned, a purchase occurs. A buyer may regret the purchase if the fuel price drops, or he realizes the car doesn’t fit with one’s lifestyle.
4.2 Describe the level of involvement and the involvement factors likely to be associated with buying a new computer. Do you think Apple’s Web site simplifies or complicates the process for the average consumer? Explain.
Purchasing involvement is the time, effort, or human toll of evaluating what to buy. Generally speaking, the lower the cost of something, the less time it takes to purchase. Typically, low cost decisions are done quickly. Subsequently, the product is evaluated later. Let’s take a look at pricey Apple computers (price normally adds time to making purchase decisions). Now, if one is not familiar with computers, it may take a longer amount of time to make a decision.
I’m an average computer owner. I found the Apple site easy to navigate. The terms were easy to understand. I learned why Apples perform better by visiting apple.com. That is the principle of least resistance flowing through the computer, compared with typical computers. There were tabs to click on to aide in obtaining information that would help a consumer to make a buying decision. I liked the tab allowing one to speak with technical experts. To answer the above question, yes, it was easy to navigate and understand the maverick computer company.
6.1 Family members play many different roles in the buying process: initiator, influencer, decision maker, purchaser, and consumer. Identify the person in your family who might play each of these roles in the purchase of a dinner at Pizza Hut, a summer vacation, Fruit Loops breakfast cereal, an Abercrombie and Fitch sweater, golf clubs, an internet service provider and a new car.
On the subject of consumer roles, often times I influence my wife that ordering a pizza is much easier than making dinner, and, at times, in a car choices. My wife is the initiator when it comes to vacations, breakfast cereal and clothing. My wife is the decision maker of internet service and cable TV. We both would decide which golf clubs would be best, depending on who they are for.
8.1 How do beliefs and attitudes influence consumer behavior? How can negative attitudes toward a product be changed? How can marketers alter beliefs about a product? Give some examples of how marketers have changed negative attitudes about a product or added or altered beliefs about a product.
An individual belief is a set pattern of facts or information that one holds dear. Oftentimes, different cultures feature unique consumer behaviors such as how one would purchase goods. For example, Germans prefer paying for their purchases with franks while Italians prefer credit cards. On a different note, a consumer oftentimes gets familiar with a certain brand by use. For example, by using a hard working Ford truck, a brand image is formed. The rugged truck brand image influences an attitude of the consumer.
Attitude is a repeated behavior or manner that is consistent toward a given item or product. Attitudes are ingrained with one’s value system, like knowing right from wrong. Attitudes are known to last longer than beliefs and are complex.
Now that we touched upon beliefs and attitudes, the question is, “How can we, as marketers, change product views?” Increasing information about a product will raise awareness of the product. If a product is doing well in the market, such as a Toyota Camry, oftentimes just reinforcement will be needed by marketers. If big change is needed, there are three ways change can occur; changing relative importance, changing attributes or adding new beliefs to a product.
Buying goods or services starts with a few steps. The first step is that a need for the product or service must occur. This is followed by some sort of knowledge of an item or service, and, if things are right, a purchase occurs. A need is a void in a state of mind where a product could fit the bill. A consumer may buy in a split second, or it may take some time as the consumer learns about a product and the competition. Furthermore, the time it takes to make a decision is related to past product knowledge and to the size of the purchase. Big purchases, such as a car or home, typically take more time. Another example would be when a product or service is known to or perceived to fill gap, a purchase occurs.
A good example of consumer decision making is at a sporting event, where there are limited choices and consequences. For example, a sports fan may attend a basketball game and visit the concession stands and purchase a Budweiser. The beverage may cost five dollars (double the normal price), and the consumer thinks nothing of it. The choices often are Bud or Bud light and this decision occurs rapidly. The fan may enjoy the beverage and realize that may cause him to visit the rest room more often (missing part of the game).
Another consumer decision making example process is buying a car. High fuel prices have sent traditional truck buyers seeking fuel efficient cars (the need). A buyer will look at amenities, fuel efficiency, and style among a number of brands and seek out what would fit best (obtaining knowledge). If the moon and the stars are aligned, a purchase occurs. A buyer may regret the purchase if the fuel price drops, or he realizes the car doesn’t fit with one’s lifestyle.
4.2 Describe the level of involvement and the involvement factors likely to be associated with buying a new computer. Do you think Apple’s Web site simplifies or complicates the process for the average consumer? Explain.
Purchasing involvement is the time, effort, or human toll of evaluating what to buy. Generally speaking, the lower the cost of something, the less time it takes to purchase. Typically, low cost decisions are done quickly. Subsequently, the product is evaluated later. Let’s take a look at pricey Apple computers (price normally adds time to making purchase decisions). Now, if one is not familiar with computers, it may take a longer amount of time to make a decision.
I’m an average computer owner. I found the Apple site easy to navigate. The terms were easy to understand. I learned why Apples perform better by visiting apple.com. That is the principle of least resistance flowing through the computer, compared with typical computers. There were tabs to click on to aide in obtaining information that would help a consumer to make a buying decision. I liked the tab allowing one to speak with technical experts. To answer the above question, yes, it was easy to navigate and understand the maverick computer company.
6.1 Family members play many different roles in the buying process: initiator, influencer, decision maker, purchaser, and consumer. Identify the person in your family who might play each of these roles in the purchase of a dinner at Pizza Hut, a summer vacation, Fruit Loops breakfast cereal, an Abercrombie and Fitch sweater, golf clubs, an internet service provider and a new car.
On the subject of consumer roles, often times I influence my wife that ordering a pizza is much easier than making dinner, and, at times, in a car choices. My wife is the initiator when it comes to vacations, breakfast cereal and clothing. My wife is the decision maker of internet service and cable TV. We both would decide which golf clubs would be best, depending on who they are for.
8.1 How do beliefs and attitudes influence consumer behavior? How can negative attitudes toward a product be changed? How can marketers alter beliefs about a product? Give some examples of how marketers have changed negative attitudes about a product or added or altered beliefs about a product.
An individual belief is a set pattern of facts or information that one holds dear. Oftentimes, different cultures feature unique consumer behaviors such as how one would purchase goods. For example, Germans prefer paying for their purchases with franks while Italians prefer credit cards. On a different note, a consumer oftentimes gets familiar with a certain brand by use. For example, by using a hard working Ford truck, a brand image is formed. The rugged truck brand image influences an attitude of the consumer.
Attitude is a repeated behavior or manner that is consistent toward a given item or product. Attitudes are ingrained with one’s value system, like knowing right from wrong. Attitudes are known to last longer than beliefs and are complex.
Now that we touched upon beliefs and attitudes, the question is, “How can we, as marketers, change product views?” Increasing information about a product will raise awareness of the product. If a product is doing well in the market, such as a Toyota Camry, oftentimes just reinforcement will be needed by marketers. If big change is needed, there are three ways change can occur; changing relative importance, changing attributes or adding new beliefs to a product.
top 5 observation wk 4
Visiting the Census Bureau Home page and looking up NAICS, what is it?
NAICS is the North American Industrial Classification System. This replaced the old SIC or standard industrial classification. The new system is in conjunction with NAFTA (North American Free Trade Association). The new system keeps tabs on what business is doing. That is what direction goods and services are going, forecasts, trends and employment that can be useful to marketers.
What else about this above site?
You can enter the business type code in the site and by clicking on business and enter the code. A ton of information on the type of business appears. Such as geography of the applicable business's, statistics, employment, ect. Beyond these codes, the Census site has information on small businesses, information on annual capital expenditure surveys. There is a link for information on research and development, which can focus on trends and upcoming changes in the market.
NAICS is the North American Industrial Classification System. This replaced the old SIC or standard industrial classification. The new system is in conjunction with NAFTA (North American Free Trade Association). The new system keeps tabs on what business is doing. That is what direction goods and services are going, forecasts, trends and employment that can be useful to marketers.
What else about this above site?
You can enter the business type code in the site and by clicking on business and enter the code. A ton of information on the type of business appears. Such as geography of the applicable business's, statistics, employment, ect. Beyond these codes, the Census site has information on small businesses, information on annual capital expenditure surveys. There is a link for information on research and development, which can focus on trends and upcoming changes in the market.
Saturday, March 21, 2009
Cirque du Soleil
Cirque du Soleil’s competitive advantage:
1. Superior brand management achieved through product integrity, exclusivity, and prestige makes Cirque one of the most sought-after entertainment tickets in the world.
2. Cirque has superior breadth and depth of human resources in all key areas.
3. Strategic partnerships cut costs and provide powerful support; they have a vested interest in Cirque’s future successes.
4. Cash flow—Cirque’s incredible profitability allows it to reinvest its money into product development for what is already a market leader in terms of quality and value.
5. General business management and the preservation of the company’s original culture keep priorities aligned and unify movement toward Cirque’s objectives.
1. Superior brand management achieved through product integrity, exclusivity, and prestige makes Cirque one of the most sought-after entertainment tickets in the world.
2. Cirque has superior breadth and depth of human resources in all key areas.
3. Strategic partnerships cut costs and provide powerful support; they have a vested interest in Cirque’s future successes.
4. Cash flow—Cirque’s incredible profitability allows it to reinvest its money into product development for what is already a market leader in terms of quality and value.
5. General business management and the preservation of the company’s original culture keep priorities aligned and unify movement toward Cirque’s objectives.
World Products?
Is there such a thing as a global or world product? This means the same "marketing mix" (product/price/distribution/promotion) regardless of geographic location. By this strict definition, there is no such thing as "one-world" product.
Promoting standardized products globally offers significant advantages including economies of scale in manufacturing and promotion. However, global marketing standardization appears to have significant limitations as well. Few, if any, products have been marketed successfully without at least minor modifications to the marketing mix. Although world markets do seem to be becoming more alike, many substantial differences in culture, lifestyle, and taste still exist among nations.
Hi Jim, from the text book reading, my answer is No there is no perfect world product, similar yes. Well, unless you use water as a product??
Promoting standardized products globally offers significant advantages including economies of scale in manufacturing and promotion. However, global marketing standardization appears to have significant limitations as well. Few, if any, products have been marketed successfully without at least minor modifications to the marketing mix. Although world markets do seem to be becoming more alike, many substantial differences in culture, lifestyle, and taste still exist among nations.
Hi Jim, from the text book reading, my answer is No there is no perfect world product, similar yes. Well, unless you use water as a product??
Opportunity?
Can you see how the opportunity you listed does not meet the criteria for SWOT? Opportunities are external to the company, they exist independent of the company, and they are not tactics or decisions. How would you re-word this to reflect an opportunity in the SWOT sense?
I went back through Cirque Du Soleil assignment and revised my post, a couple SWOT answer didn't reflect the internal and external criteria.
I went back through Cirque Du Soleil assignment and revised my post, a couple SWOT answer didn't reflect the internal and external criteria.
Sunday, March 15, 2009
Marketing Miscue Chapter Four- Crazy for You
Vermont Teddy Bear Company
1. Did Vermont Teddy Bear Company violate the requirements of corporate social responsibility? Why or Why not?
Corporate social responsibility is a company’s apprehension for society. This is a golden rule; companies who show good judgment with a product or service over the long run increase the likelihood of success. This is not with out critics, that focus on the market will right all woes. Or companies should not have this type of responsibility or in other words free markets should prevail.
Vermont Teddy Bear had a catchy idea with a restrained bear. Love can be a crazy thing, just read Shakespeare’s Romeo and Juliet. However, for much of the United States mental health has a negative stigmatism. Yes, the idea violated some social norms and the CEO Elisabeth Robert should have thought about giving some profits to charity. By giving some of the profits to charity, the company would have shown some social responsibility and perhaps silenced some critics.
2.Was the controversy a positive or negative for the company? For Robert?
Vermont’s motto is ‘freedom and unity’ and the Vermont Teddy Bear Company pushed it to the furry limit. The Crazy for You’ bear did sell out and was a success for the company. However, the company failed in public relations. The company did have a way out of the controversy by donating some of the profits to charity and did not.
The outcome for the company was a mixed bag. Yes, in the short term the company has been profitable. It has put a mark on the CEO which had a stellar performance until the incident. However, the public litmus test with the ‘Crazy for You’ bears is on EBay and they are fetching a premium.
1. Did Vermont Teddy Bear Company violate the requirements of corporate social responsibility? Why or Why not?
Corporate social responsibility is a company’s apprehension for society. This is a golden rule; companies who show good judgment with a product or service over the long run increase the likelihood of success. This is not with out critics, that focus on the market will right all woes. Or companies should not have this type of responsibility or in other words free markets should prevail.
Vermont Teddy Bear had a catchy idea with a restrained bear. Love can be a crazy thing, just read Shakespeare’s Romeo and Juliet. However, for much of the United States mental health has a negative stigmatism. Yes, the idea violated some social norms and the CEO Elisabeth Robert should have thought about giving some profits to charity. By giving some of the profits to charity, the company would have shown some social responsibility and perhaps silenced some critics.
2.Was the controversy a positive or negative for the company? For Robert?
Vermont’s motto is ‘freedom and unity’ and the Vermont Teddy Bear Company pushed it to the furry limit. The Crazy for You’ bear did sell out and was a success for the company. However, the company failed in public relations. The company did have a way out of the controversy by donating some of the profits to charity and did not.
The outcome for the company was a mixed bag. Yes, in the short term the company has been profitable. It has put a mark on the CEO which had a stellar performance until the incident. However, the public litmus test with the ‘Crazy for You’ bears is on EBay and they are fetching a premium.
Chapter four Review &Application
CH. 4 Questions 2.1, 4.2, 4.3, 4.4, and 5.3
2.1 Rubbermaid, the U. S. manufacturer of kitchen products and other household items, is considering moving to global marketing standardization (GMS). What are the pros and cons of this strategy?
The pros of global marketing standardization (GMS) are like Ford making the model T. GMS allows for lower production, marketing costs and increased profits. This may work well with Rubbermaid, for its products such as bins come in many sizes and colors. Often companies may take on a GMS strategy and still make a few tweaks to product or marketing. A downside is some cultures prefer a slightly different taste or different name to the product. For example, the Chevy Nova in Spanish means ‘no go’. Again, Rubbermaid could mean robot helper in French.
4.2 Explain how the U.S. Commercial Service can help companies wanting to enter the international market.
The U.S. Commercial Service that is within the Department of Commerce is an aide in promoting trade. The service has staffing in 150 posts around the world. The Commercial Service staff aides those just starting out in business and the veterans in trade. The service helps in market research, finding suitable buyers, partners and they also do some consulting. Often this service can lead a business to find a buyer for export, export broker or export agent.
4.3 What are some of the advantages and potential disadvantages of entering joint venture?
Joint venture, and often international joint venture, has many advantages. It can gain a company in expertise, speed, and cost. The downside is often they fail, or subject one side to a take over or disagreement.
4.4 Why is direct investment considered risky?
A firm takes all the risk or all of the profits. Sometimes the investment is as a minority interest or controlling interest. In international affairs, treaties, laws and governments play a role and they can and do change which could cause problems.
5.3 Explain how exchange rates can affect a firm’s global sales.
Prices for Japanese-made Toyotas can increase in cost if the dollar decreases in value in the U.S. Prices move up and down (floating exchange rates) based on demand of currency, economic strength of a country. If Brazil imports steel to the U.S. and can’t find a buyer, they may lower the price until a buyer is found which is termed as (steel) dumping.
2.1 Rubbermaid, the U. S. manufacturer of kitchen products and other household items, is considering moving to global marketing standardization (GMS). What are the pros and cons of this strategy?
The pros of global marketing standardization (GMS) are like Ford making the model T. GMS allows for lower production, marketing costs and increased profits. This may work well with Rubbermaid, for its products such as bins come in many sizes and colors. Often companies may take on a GMS strategy and still make a few tweaks to product or marketing. A downside is some cultures prefer a slightly different taste or different name to the product. For example, the Chevy Nova in Spanish means ‘no go’. Again, Rubbermaid could mean robot helper in French.
4.2 Explain how the U.S. Commercial Service can help companies wanting to enter the international market.
The U.S. Commercial Service that is within the Department of Commerce is an aide in promoting trade. The service has staffing in 150 posts around the world. The Commercial Service staff aides those just starting out in business and the veterans in trade. The service helps in market research, finding suitable buyers, partners and they also do some consulting. Often this service can lead a business to find a buyer for export, export broker or export agent.
4.3 What are some of the advantages and potential disadvantages of entering joint venture?
Joint venture, and often international joint venture, has many advantages. It can gain a company in expertise, speed, and cost. The downside is often they fail, or subject one side to a take over or disagreement.
4.4 Why is direct investment considered risky?
A firm takes all the risk or all of the profits. Sometimes the investment is as a minority interest or controlling interest. In international affairs, treaties, laws and governments play a role and they can and do change which could cause problems.
5.3 Explain how exchange rates can affect a firm’s global sales.
Prices for Japanese-made Toyotas can increase in cost if the dollar decreases in value in the U.S. Prices move up and down (floating exchange rates) based on demand of currency, economic strength of a country. If Brazil imports steel to the U.S. and can’t find a buyer, they may lower the price until a buyer is found which is termed as (steel) dumping.
Chapter 3 Review & Applications
Ch 3. Questions 2.4, 5.1, 9.3
2.4 Do you think a code of ethics will actually influence an employee’s behavior? Why or why not?
Currently many businesses are expanding ethics training. McDaniel, lamb and Hair (2008) found that 33 percent of big companies in the past seven years have now including ethics resources (p. 71). Having a code of ethics can reduce uncertainty in decision making. Many companies are taking a proactive approach to ethics versus having the government regulate questionable decisions. Starting at the top, good ethical decisions trickle down throughout a company.
On the downside to stating ethics is companies that have vague or hard to understand book or statement can lead to confusion. If top management doesn’t get on board, it can seem like an empty promise.
5.1 Baby boomers in America are aging. Describe how this might affect the marketing mix for the following:A. Bally’s Health Club
I went to Bally’s web site http://www.ballyfitness.com/discover-bally/our-member-success/robert-story.aspx and found Robert’s story. A few years ago, Robert had a goal to climb a few mountains. Now at the age of 60, he’s in top shape and climbing fast. The story went into Robert’s successful career, past military background and his self discipline. Robert’s profile fit right in with the notions of baby boomers breaking traditional molds. They want to remain physically active and enjoy traveling. Bally’s site explained in detail and in bullets how this Boomer accomplished his tasks with the help of the gym.
B. McDonald’s
I visited http://www.mcdonalds.com/usa/eat/nutrition_info.html and found this restaurant chain is focusing on nutrition, saving time, familiar surroundings and balance. McDaniel, lamb and Hair (2008) found boomers are “looking for balance” (p. 81). Boomers are busy people and they enjoy products and services that save time and some express little interest in upscale dining.
C. Whirlpool Corporation
I visited http://www.whirlpool.com/catalog/new_products.jsp and found some relatable marketing towards baby boomers. Whirlpool focused on kitchen convenience. For example, the new Cabrio top loader washing machine uses a third less water. Being a top loader, one doesn’t have to bend down to load the machine with clothes. Top loaders are very traditional which would fit well into product placement and promotion to baby boomers.
D. The state of Florida
I found an article on senior living that focused on the growing Florida baby boomer market. In the Senior Journal.com-Senior citizen’s information and news: Retirement market booming, boomers to keep it hot for decades found that the “top ranking retiree markets are:
● Ocala, Florida with the highest percentage of retired adults (36%)
● Fort Myers- Naples, Florida (34%)
● Daytona Beach, Florida (33%)
● West Palm Beach, Florida (31%)
● Melbourne-Titusville-Cocoa, Florida (29%)”
Florida is the number one market for baby boomers. I found numerous state sponsored, media articles and advertising for anything from vitamin supplements for baby boomers, to driving programs for older drivers, all being a part of the marketing mix for boomers.
E. Target Stores
I visited http://weeklyad.target.com/target/default.aspx?action=entryflash&site=weeklyad.target.com and found a host of marketing towards all demographic groups. This week’s ad at Target featured many dollar items that could fit in with Boomers looking for balance and value is important.
5.2 You have been asked to address a local Chamber of Commerce on the subject of ‘Generation Y.” Prepare an outline for your talk.
Introduction: Dear Chamber we are missing out on business opportunities with a younger generation or what is called generation Y.
History: Y’ers are known for having deep pocket and have the ability to stimulate the economy under the right conditions. For example towns with Wi-Fi and lots of generation Y’ers business do very well.
Proposal: Making Wi-Fi publicly available to all, including the tech savvy generation Y
Here is the benefit:
• Retailers by locally advertising specials (Y’ers manage time well and like specials now)
• Gas stations could advertise their price right into cars (Y’ers are street smart)
• Electronic sales would likely increase
Summary: Catering to generation Y’ers and making Wi-Fi publicly available has the history of business success. This proposal will help the town, the tax base and business.
2.4 Do you think a code of ethics will actually influence an employee’s behavior? Why or why not?
Currently many businesses are expanding ethics training. McDaniel, lamb and Hair (2008) found that 33 percent of big companies in the past seven years have now including ethics resources (p. 71). Having a code of ethics can reduce uncertainty in decision making. Many companies are taking a proactive approach to ethics versus having the government regulate questionable decisions. Starting at the top, good ethical decisions trickle down throughout a company.
On the downside to stating ethics is companies that have vague or hard to understand book or statement can lead to confusion. If top management doesn’t get on board, it can seem like an empty promise.
5.1 Baby boomers in America are aging. Describe how this might affect the marketing mix for the following:A. Bally’s Health Club
I went to Bally’s web site http://www.ballyfitness.com/discover-bally/our-member-success/robert-story.aspx and found Robert’s story. A few years ago, Robert had a goal to climb a few mountains. Now at the age of 60, he’s in top shape and climbing fast. The story went into Robert’s successful career, past military background and his self discipline. Robert’s profile fit right in with the notions of baby boomers breaking traditional molds. They want to remain physically active and enjoy traveling. Bally’s site explained in detail and in bullets how this Boomer accomplished his tasks with the help of the gym.
B. McDonald’s
I visited http://www.mcdonalds.com/usa/eat/nutrition_info.html and found this restaurant chain is focusing on nutrition, saving time, familiar surroundings and balance. McDaniel, lamb and Hair (2008) found boomers are “looking for balance” (p. 81). Boomers are busy people and they enjoy products and services that save time and some express little interest in upscale dining.
C. Whirlpool Corporation
I visited http://www.whirlpool.com/catalog/new_products.jsp and found some relatable marketing towards baby boomers. Whirlpool focused on kitchen convenience. For example, the new Cabrio top loader washing machine uses a third less water. Being a top loader, one doesn’t have to bend down to load the machine with clothes. Top loaders are very traditional which would fit well into product placement and promotion to baby boomers.
D. The state of Florida
I found an article on senior living that focused on the growing Florida baby boomer market. In the Senior Journal.com-Senior citizen’s information and news: Retirement market booming, boomers to keep it hot for decades found that the “top ranking retiree markets are:
● Ocala, Florida with the highest percentage of retired adults (36%)
● Fort Myers- Naples, Florida (34%)
● Daytona Beach, Florida (33%)
● West Palm Beach, Florida (31%)
● Melbourne-Titusville-Cocoa, Florida (29%)”
Florida is the number one market for baby boomers. I found numerous state sponsored, media articles and advertising for anything from vitamin supplements for baby boomers, to driving programs for older drivers, all being a part of the marketing mix for boomers.
E. Target Stores
I visited http://weeklyad.target.com/target/default.aspx?action=entryflash&site=weeklyad.target.com and found a host of marketing towards all demographic groups. This week’s ad at Target featured many dollar items that could fit in with Boomers looking for balance and value is important.
5.2 You have been asked to address a local Chamber of Commerce on the subject of ‘Generation Y.” Prepare an outline for your talk.
Introduction: Dear Chamber we are missing out on business opportunities with a younger generation or what is called generation Y.
History: Y’ers are known for having deep pocket and have the ability to stimulate the economy under the right conditions. For example towns with Wi-Fi and lots of generation Y’ers business do very well.
Proposal: Making Wi-Fi publicly available to all, including the tech savvy generation Y
Here is the benefit:
• Retailers by locally advertising specials (Y’ers manage time well and like specials now)
• Gas stations could advertise their price right into cars (Y’ers are street smart)
• Electronic sales would likely increase
Summary: Catering to generation Y’ers and making Wi-Fi publicly available has the history of business success. This proposal will help the town, the tax base and business.
Monday, March 9, 2009
Chapter 2 Cirque du Soleil Question 1, 2, 3
Entrepreneurship Case
Cirque Du Soleil: The Fire Within
1. Based on what you have read in the case, outline a rudimentary SWOT analysis for Cirque du Soleil.
The strengths include a large pool of talent to pull from. Along with that, they have talent scouts on the look out. The show is virtually completely under one tent. That is they don’t rely on others to produce costumes and such. The company has to sides that run the show, a creative and a business side which appears to be a formula for a long and profitable running show.
The weaknesses could be the success doesn’t fit a traditional business models and if a bank were to have a look internally into the company for a loan, it may not match similar companies in terms of assets.If the business side of the show would run the creative side, there would be a possiblitiy of failure.
The opportunities of the company include a proven track record of success. Markets for the shows have expanded.
Threats of the show can only be speculated. A lack of patronage to Las Vegas could potentially lead to problems or cable tv suscribers flocking to internet tv.
2. Explain how Cirque du Soleil implements, evaluates, and controls the elements of the marketing plan.
The company attempts to communicate with the audience by performing and that is a part of marketing. For example in doing some flips, the goal isn’t to do the best flip, rather connect with the ticket holder. The names of the shows are a bit exotic, creating a bit of a stir to fans. The shows are live and also featured on television. Now how is this marketing evaluated and controlled? This is not exactly stated from the text, ch.2. Creativity is a part of it, and it has been profitable and the casinos have a role in the show. Thus, the formal controls over marketing and the show are a bit of a mystery.
3. List and describe at least three keys to Cirque du Soleil’s competitive advantage.
First way is using the art of creativity. Second, a division between the performing and business side leads to an advantage. Thirdly, a big part of the show is done in house, with out having to rely on outside influences.
Cirque Du Soleil: The Fire Within
1. Based on what you have read in the case, outline a rudimentary SWOT analysis for Cirque du Soleil.
The strengths include a large pool of talent to pull from. Along with that, they have talent scouts on the look out. The show is virtually completely under one tent. That is they don’t rely on others to produce costumes and such. The company has to sides that run the show, a creative and a business side which appears to be a formula for a long and profitable running show.
The weaknesses could be the success doesn’t fit a traditional business models and if a bank were to have a look internally into the company for a loan, it may not match similar companies in terms of assets.If the business side of the show would run the creative side, there would be a possiblitiy of failure.
The opportunities of the company include a proven track record of success. Markets for the shows have expanded.
Threats of the show can only be speculated. A lack of patronage to Las Vegas could potentially lead to problems or cable tv suscribers flocking to internet tv.
2. Explain how Cirque du Soleil implements, evaluates, and controls the elements of the marketing plan.
The company attempts to communicate with the audience by performing and that is a part of marketing. For example in doing some flips, the goal isn’t to do the best flip, rather connect with the ticket holder. The names of the shows are a bit exotic, creating a bit of a stir to fans. The shows are live and also featured on television. Now how is this marketing evaluated and controlled? This is not exactly stated from the text, ch.2. Creativity is a part of it, and it has been profitable and the casinos have a role in the show. Thus, the formal controls over marketing and the show are a bit of a mystery.
3. List and describe at least three keys to Cirque du Soleil’s competitive advantage.
First way is using the art of creativity. Second, a division between the performing and business side leads to an advantage. Thirdly, a big part of the show is done in house, with out having to rely on outside influences.
Chapter 2 Review & Application 2.1, 4.1
2.2 Thinking back to question 1.2, (creating a company w/out a mission statement) write a business mission statement for Shur Snak. What elements should you include? Evaluate the mission statement you wrote against some of those you found online in question 2.1.
Shur Snak is committed to providing superior brand of snacks with the highest quality. Shur Snak is committed to its customers, environment and society with the utmost in integrity and responsibility. Our shareholders, stakeholders and stockholders will share the gain by having the highest integrity and people in the industry.
I compared Shur Snak with Frito Lay’s mission statement. I wasn’t familiar with Shur Snak and made up the mission statment to go along with the homework. What Frito Lay acknowledged in there mission statement included the size of the company, vision, age, environmental concerns and having fun, while looking forward to the future.
4.1 Explain the components of a situation analysis (SWOT). Perform a mini-analysis on UPS, FedEx, DHL and USPS.
UPS- Strength size, Weakness- rigid labor force, Opportunities-EBay sales and companies going under, Threats- economy faltering
Federal Express- Strength on-time performance and diverse levels of the company. Such as FedExHome, Ground, Air. Weakness- unknown markets, Opportunities-Ebay sales, home based workers are growing. Threats-gas prices
DHL-international logistics, Weaknesses- size, Opportunities- global economic sales, Threats- competitive market
United States Postal Service- Strengths-size and diversification, Weaknesses- labor structure (strikes) and offices only in the USA, Opportunities-endless, Threats- weather
Shur Snak is committed to providing superior brand of snacks with the highest quality. Shur Snak is committed to its customers, environment and society with the utmost in integrity and responsibility. Our shareholders, stakeholders and stockholders will share the gain by having the highest integrity and people in the industry.
I compared Shur Snak with Frito Lay’s mission statement. I wasn’t familiar with Shur Snak and made up the mission statment to go along with the homework. What Frito Lay acknowledged in there mission statement included the size of the company, vision, age, environmental concerns and having fun, while looking forward to the future.
4.1 Explain the components of a situation analysis (SWOT). Perform a mini-analysis on UPS, FedEx, DHL and USPS.
UPS- Strength size, Weakness- rigid labor force, Opportunities-EBay sales and companies going under, Threats- economy faltering
Federal Express- Strength on-time performance and diverse levels of the company. Such as FedExHome, Ground, Air. Weakness- unknown markets, Opportunities-Ebay sales, home based workers are growing. Threats-gas prices
DHL-international logistics, Weaknesses- size, Opportunities- global economic sales, Threats- competitive market
United States Postal Service- Strengths-size and diversification, Weaknesses- labor structure (strikes) and offices only in the USA, Opportunities-endless, Threats- weather
chap 1 Review & Application 1.1, 2.1, 3.3
1.1 What is the AMA? How do its services benefit marketers?
The American Marketing Association is a resource for exploring the field of marketing, job opportunities and new techniques. The benefits include learning about the new areas of marketing, such as using technology. A radio show topic on the site was, email marketing. What was interesting was for every dollar spent on email marketing, returned 45 dollars! And this wasn’t spam; it was subscribed to links such as Home depot or Crate and Barrel customers who subscribe to special online offers.
2.3 Give an example of a company that might be successfully following a production orientation. Why might a firm in this industry be successful following such as orientation?
Product orientation is building a product or service based on what you do best, or strengths. Build it and they will come is the motto. This is a bit presumptuous way of leading a company. General Motors for years built cars and hoped people would buy them. It lasted for a long time, and had some success. If there were no competition or gas prices remained low, GM would be doing great. However, this is not the whole story.
3.3 How does Phillip Morris ?(PM) handle the sensitive issues associated with marketing tobacco?
What kind of information does its Web site PM provide about smoking and its negative effects on health? How do you think PM is able to justify such marketing tactic? After checking around the site, do you think that approach makes the company more or less trustworthy?
PM claims to support sensitive issues in a multiple ways. It views the personal health aspect as a single view of the government’s claims of health issues. Plus it supports local, environmental and anti-tobacco for children campaigns.
PM has numerous warnings about using tobacco. They even go so far as claiming tobacco is addictive and it maybe difficult to quit. Responsibility is thrown around liberally and if one wants to smoke, be forewarned.
Today, PM has some integrity and is trustworthy. The approach is focused on setting their products apart by branding, leadership, a concern for society, adult choice and shareholder value.
The American Marketing Association is a resource for exploring the field of marketing, job opportunities and new techniques. The benefits include learning about the new areas of marketing, such as using technology. A radio show topic on the site was, email marketing. What was interesting was for every dollar spent on email marketing, returned 45 dollars! And this wasn’t spam; it was subscribed to links such as Home depot or Crate and Barrel customers who subscribe to special online offers.
2.3 Give an example of a company that might be successfully following a production orientation. Why might a firm in this industry be successful following such as orientation?
Product orientation is building a product or service based on what you do best, or strengths. Build it and they will come is the motto. This is a bit presumptuous way of leading a company. General Motors for years built cars and hoped people would buy them. It lasted for a long time, and had some success. If there were no competition or gas prices remained low, GM would be doing great. However, this is not the whole story.
3.3 How does Phillip Morris ?(PM) handle the sensitive issues associated with marketing tobacco?
What kind of information does its Web site PM provide about smoking and its negative effects on health? How do you think PM is able to justify such marketing tactic? After checking around the site, do you think that approach makes the company more or less trustworthy?
PM claims to support sensitive issues in a multiple ways. It views the personal health aspect as a single view of the government’s claims of health issues. Plus it supports local, environmental and anti-tobacco for children campaigns.
PM has numerous warnings about using tobacco. They even go so far as claiming tobacco is addictive and it maybe difficult to quit. Responsibility is thrown around liberally and if one wants to smoke, be forewarned.
Today, PM has some integrity and is trustworthy. The approach is focused on setting their products apart by branding, leadership, a concern for society, adult choice and shareholder value.
Wednesday, March 4, 2009
Week One “Value Innovation”
Explain and illustrate the differences between ‘conventional logic’ and ‘value innovation’ as defined in the Harvard Business Review ‘Value Innovation: The strategic logic of high growth’ by Chan, Mauborgne.
Conventional logic is when companies compete head to head. Companies slug it out and attempt to one up one another in the market place. Conventional way of thinking focuses on improving cost, or quality while often times not going after a larger unsuspecting market.
What sets ‘Value Innovation’ apart is it not concerned with traditional ways of doing business. The ocean is blue, and there are plenty of unexplored markets for a product. Value Innovation goes after opportunities in expanding a market, over what the traditional competition is seeking. For example: technology markets have a short life expectancy, software changes often. Thus, if one were to use a traditional product cycle marketing plan it may not be successful in the end, timing.
Describe the Value Curve
Are the standards and norms found in the market/service or product going across the board and then applied to a chart. Then the standards of a business, product or service’s are perceived through a consumer’s point of view. This is going vertical on a chart. Let’s get better picture by looking at a potential purchase of a Wave Runner. A customer may look at utility, comfort, hull design (wet ride or dry ride), speed, storage costs, trailer cost and guilt. Then the customer takes these factors into account and places a high or low value on these factors. Businesses can shift product or services to accommodate the market by viewing a value curve and factor the thoughts of the customer accordingly.
List the viewpoints that are challenged in a value innovation strategic approach and offer a brief explanation of each.
The points are this; in the value innovation way is taking a look at lets say a business, a market, and customers and seeing if there is some potential for improvement. The business is looked at inside and out, and they find what matters to the customer. What is overrated, underrated, overlooked, and not needed? Then this untraditional view is looked at the market. Why do these markets perform, decline, what assumptions a wide held and are they completely accurate or not? Add it all up and see if there maybe an opportunity to succeed.
What are the four basic questions underlying value innovation?
What can be improved on? Look at the business, the customer and the market and throw away traditional notions, assumptions and norms. Then graph what you find. The information can be found from surveys, experts, consumers. The knowledge you find can be applied back to the model and what is shows can be an opportunity or not.
Name a company that has apparently followed a value innovation strategy, or one that could make good use of this strategy in today’s market.
One good example is Volkswagen’s Routan mini van. The critics hate the van, consumers love it and the sales prove this. There is a stigmatism with Chrysler mini vans out there and VW shattered the image with a costlier, similarly rebadged product. VW found a new market, with a little help from struggling Chrysler and some odd commercials with Brook Shields.
Conventional logic is when companies compete head to head. Companies slug it out and attempt to one up one another in the market place. Conventional way of thinking focuses on improving cost, or quality while often times not going after a larger unsuspecting market.
What sets ‘Value Innovation’ apart is it not concerned with traditional ways of doing business. The ocean is blue, and there are plenty of unexplored markets for a product. Value Innovation goes after opportunities in expanding a market, over what the traditional competition is seeking. For example: technology markets have a short life expectancy, software changes often. Thus, if one were to use a traditional product cycle marketing plan it may not be successful in the end, timing.
Describe the Value Curve
Are the standards and norms found in the market/service or product going across the board and then applied to a chart. Then the standards of a business, product or service’s are perceived through a consumer’s point of view. This is going vertical on a chart. Let’s get better picture by looking at a potential purchase of a Wave Runner. A customer may look at utility, comfort, hull design (wet ride or dry ride), speed, storage costs, trailer cost and guilt. Then the customer takes these factors into account and places a high or low value on these factors. Businesses can shift product or services to accommodate the market by viewing a value curve and factor the thoughts of the customer accordingly.
List the viewpoints that are challenged in a value innovation strategic approach and offer a brief explanation of each.
The points are this; in the value innovation way is taking a look at lets say a business, a market, and customers and seeing if there is some potential for improvement. The business is looked at inside and out, and they find what matters to the customer. What is overrated, underrated, overlooked, and not needed? Then this untraditional view is looked at the market. Why do these markets perform, decline, what assumptions a wide held and are they completely accurate or not? Add it all up and see if there maybe an opportunity to succeed.
What are the four basic questions underlying value innovation?
What can be improved on? Look at the business, the customer and the market and throw away traditional notions, assumptions and norms. Then graph what you find. The information can be found from surveys, experts, consumers. The knowledge you find can be applied back to the model and what is shows can be an opportunity or not.
Name a company that has apparently followed a value innovation strategy, or one that could make good use of this strategy in today’s market.
One good example is Volkswagen’s Routan mini van. The critics hate the van, consumers love it and the sales prove this. There is a stigmatism with Chrysler mini vans out there and VW shattered the image with a costlier, similarly rebadged product. VW found a new market, with a little help from struggling Chrysler and some odd commercials with Brook Shields.
Tuesday, March 3, 2009
For the love of the German Van
The College of Saint Scholastica
MGT 6412
Writing and Resources
Spring Term One
January 31, 2009
Instructor: Suzanne Nielson
For the love of the German minivan
James Hicks
From the beginning a few months ago, many who glanced at the Routan thought this was a fresh VW design. Many remember the VW Micro Bus with the air cooled Bug motor in back. It, too, was useful, efficient and odd. Early critics called the branding a crime against the automotive industry and the “sorriest example of brand abuse…” (Kitman, 2008). The commercials featured actress Brook Shields suggesting the public was buying the Routan for German engineering and giving them a reason to grow their family. The clever approach to selling underlining utility with a hip brand may have the automotive press taking a second look at who needs a people hauler.
Fuel prices have been all over the board. This has many families leary of gas guzzling sport utility vehicles and the associated environmental concerns. Volkswagen has had a limited line-up of small and mid-sized cars and a couple SUV’s. The minivan fills the gap for anti-establishment VW clientele which has been limited with automotive choices. Also, the overseas company wants to protect fluctuating currencies by fixing the line-up with a simple addition, with help from Chrysler in Canada.
Comparatively speaking, the Routan is selling for higher prices and less warranty than the comparable Chrysler minivan. Sales have been compounding each month since it was introduced (Vander Doelen, 2008). On socialstudiesblog.com, a woman made a comment regarding her Routan. “I might loathe my minivan in front of my friends, blaming my kids… but I secretly love it” (2008). The marketing is like Bernard Madoff’s technique of turning down potential investors - similar to odd catchy commercials saying people are having families for German engineering. This is not true, nor does Madoff turn down customers - causing customers to stew while creating the want to invest, or buy, even more. Crafty Volkswagen has found a marginalized market for the minivan and performed a u-turn toward success. Even though the Routan is not a critic’s choice, the increasing sales and customer reviews are proving them wrong.
Resources
Alterman, E. (2009). Behind the wheel. German engineers fail the paternity test. New York Times, January 25, 2009. Retrieved January 29, 2009 from http://www.nytimes.com/2009/01/25/automobiles/autoreviews/25routan.htlm?ref+autom
Socialstudiesblog.com (2008). A blog on interactive, emerging and social media: VW’s Routan baby more than a cute face. Retrieved January 29, 2009 from http://www.socialstudiesblog.com/2008/10/vws-routan-baby-more-than-cute- face.html?sh...
Vander Doelen, C. (2008). Critic hates it, but buyers like Routan. Windsor Star, December 23, 2008. Retrieved January 29, 2009 from http://www.windsorstar.com/story print.htlm?id+11077049
MGT 6412
Writing and Resources
Spring Term One
January 31, 2009
Instructor: Suzanne Nielson
For the love of the German minivan
James Hicks
From the beginning a few months ago, many who glanced at the Routan thought this was a fresh VW design. Many remember the VW Micro Bus with the air cooled Bug motor in back. It, too, was useful, efficient and odd. Early critics called the branding a crime against the automotive industry and the “sorriest example of brand abuse…” (Kitman, 2008). The commercials featured actress Brook Shields suggesting the public was buying the Routan for German engineering and giving them a reason to grow their family. The clever approach to selling underlining utility with a hip brand may have the automotive press taking a second look at who needs a people hauler.
Fuel prices have been all over the board. This has many families leary of gas guzzling sport utility vehicles and the associated environmental concerns. Volkswagen has had a limited line-up of small and mid-sized cars and a couple SUV’s. The minivan fills the gap for anti-establishment VW clientele which has been limited with automotive choices. Also, the overseas company wants to protect fluctuating currencies by fixing the line-up with a simple addition, with help from Chrysler in Canada.
Comparatively speaking, the Routan is selling for higher prices and less warranty than the comparable Chrysler minivan. Sales have been compounding each month since it was introduced (Vander Doelen, 2008). On socialstudiesblog.com, a woman made a comment regarding her Routan. “I might loathe my minivan in front of my friends, blaming my kids… but I secretly love it” (2008). The marketing is like Bernard Madoff’s technique of turning down potential investors - similar to odd catchy commercials saying people are having families for German engineering. This is not true, nor does Madoff turn down customers - causing customers to stew while creating the want to invest, or buy, even more. Crafty Volkswagen has found a marginalized market for the minivan and performed a u-turn toward success. Even though the Routan is not a critic’s choice, the increasing sales and customer reviews are proving them wrong.
Resources
Alterman, E. (2009). Behind the wheel. German engineers fail the paternity test. New York Times, January 25, 2009. Retrieved January 29, 2009 from http://www.nytimes.com/2009/01/25/automobiles/autoreviews/25routan.htlm?ref+autom
Socialstudiesblog.com (2008). A blog on interactive, emerging and social media: VW’s Routan baby more than a cute face. Retrieved January 29, 2009 from http://www.socialstudiesblog.com/2008/10/vws-routan-baby-more-than-cute- face.html?sh...
Vander Doelen, C. (2008). Critic hates it, but buyers like Routan. Windsor Star, December 23, 2008. Retrieved January 29, 2009 from http://www.windsorstar.com/story print.htlm?id+11077049
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