Monday, March 9, 2009

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.