Chapter 1: Marketing: Creating and Capturing Customer Value Topic: Stew Leonard’s, the world’s largest dairy storecompany, creates customer value by providing a unique in-store sensory experience and exceptional customer service interacting with each customer. Learning Objectives: 1. Discuss customer relationship management and identify strategies for creating value for customers and capturing value from customers in return. Video Title: Stew Leonard’s Link: http://media.pearsoncmg.com/ph/bp/bp_mylabs/akamai/template/video720x480.php?title=Stew %20Leonards&clip=pandc/bp/2012/MKTG/Stew_Web__Complete.mov&caption=bp/bp_mylabs/akamai/2012/MKTG /xml/Stew_Web__Complete.adb.xml Classroom Application: The video highlights the increasing trend for companies to go to great lengths to delight (and not just satisfy) their customers. The chapter emphasizes that delighting your customers creates their loyalty to your company. Students should pick a company that they would be very interested for which to work after they graduate. Have students then go on the internet to discover if the company’s customer base is satisfied, delighted, both, or dissatisfied. Students should brainstorm promotions and strategies to delight their chosen company’s customers. That is, what should the respective company do to better delight their customer base? Synopsis Stew Leonard’s is the world’s largest dairy store company, with annual sales of over $300 million. Customers love shopping there for the unique, non-grocery store experience (i.e., described by one customer as “a feast for the senses”). The company creates customer value with its “show and sell” perspective, which shows in-store customers the freshness of its food products (e.g., breads baked, cheese made, and foods prepared right in front of the customers). The company’s first rule is that the customer is always right, and its management philosophy is to “take good care of your people, and they’ll take care of your customers.” The company leveraged its dairy store brand equity into its very successful creation of wine stores in New Jersey, New York, and Connecticut. Its wine stores employ certified wine specialists to serve their customers and emphasize “interaction over transaction,” building strong and loyal customer relationships. Discussion Questions 1. “Rule #1” for Stew Leonard’s is that the customer is always right. Do you believe that this rule helps or hurts a company’s ability to build customer relationships and satisfaction? Explain your answer. Students will have various opinions and discussion points in response to this question. Obviously, adhering to this rule has created great success for Stew Leonard’s. Perceived customer value for this store may, in fact, be based partly or fully on this first rule. This rule directly relates to the following chapter passage regarding customer satisfaction: “Outstanding marketing companies go out of their way to keep important customers satisfied. Most studies show that higher levels of customer satisfaction lead to greater customer loyalty, which in turn 1 results in better company performance.” As shown in the video, Stew Leonard’s seems to “go out of its way” to please their customers. 2. Discuss the various ways (as depicted in the video) that Stew Leonard’s creates customer delight. The first example of customer delight is seen in customer testimonials about the company’s unique in-store sensory experience (e.g., “smells great,” is welcoming, always has something to taste, and puts you in a good mood)—the store is described as a “feast for the senses!” The second broad category of examples is made up of exceptional customer service, as the company’s wine stores have certified wine specialists ready to serve each customer as they walk in the door. As the chapter suggests, delighted customers lead to loyal customers. 3. The chapter emphasizes the trend of companies incorporating interactive approaches to build relationships with customers. How is this trend toward interaction with customers depicted in the video? As highlighted in the video, Stew Leonard’s wine stores adopt an “interaction over transaction” emphasis with their customers. They strive to create a “family feel” by getting to know each and every customer via exceptional customer service. In particular, the owner specified that getting to know each customer’s palate via interaction with customers builds customer loyalty. Quiz 1. Stew Leonard’s provides: A. satellite radio service. B. dairy products and wine. C. shampoo. D. financial advising. Answer: B. Explanation: This is a simple, straightforward question designed to assess whether or not students paid attention to the video (instead of daydreaming). 2. Stew Leonard’s “show and sell” in-store system is designed to: A. show the freshness of its products. B. highlight product demonstrations. C. entertain customers with in-store concert performances. D. encourage customers to bring in their own home recipes. Answer: A. Explanation: Breads are baked, cheeses are made, and foods are prepared right in front of the instore customers. 3. Stew Leonard’s management philosophy is: A. “The ends justify the means.” B. “We’ll fire any employee who doesn’t delight our customers!” C. “Take good care of your people, and they’ll take care of your customers.” D. “Quality is Job One.” 2 Answer: C. Explanation: Such a philosophy has landed the company on Fortune magazine’s “100 Best Companies to Work For” list. 4. Stew Leonard’s “Rule #1” is: A. Treat others as you would want to be treated. B. The customer is always right. C. Satisfaction guaranteed! D. Work hard each and every day. Answer: B. Explanation: Management treats all customers as “good and honest.” 5. Which of the following was done or put in place when creating Stew Leonard’s wine stores? A. The company studied the wine industry. B. The company hired the finest wine experts. C. Every customer is greeted at the door with a “Can I help you?” D. All of the above Answer: D. Explanation: Stew Leonard’s now has nine wine stores in three states (NJ, NY, & CT) Chapter 2: Company and Marketing Strategy: Partnering to Build Customer Relationships 3 Topic: Live Nation is a music concert promoter that connects fans and artists Learning Objectives: 1. Explain company-wide strategic planning and its four steps. 2. Discuss how to design business portfolios and develop growth strategies. Video Title: Live Nation Link: http://media.pearsoncmg.com/ph/bp/bp_akamai/kotler/Live_Nation.html Classroom Application: The video provides a good introduction to a company’s mission statement and growth strategies. A good exercise in class would be for students to discuss Live Nation’s mission statement of connecting fans and artists. Is this a mission that will work over many years in the future or will Live Nation need to expand their mission in order to survive? In answering this question, students might want to research other music companies’ mission statements to compare and contrast with Live Nation’s mission. Synopsis Live Nation’s mission is to connect music fans and artists through promotion of live concerts. As technology develops, Live Nation has expanded its core service of promoting the live music experience by providing alternative touch points such as merchandise and online music/concerts. The Web site, LiveNation.com, is a ticket and merchandise outlet which also provides customers with consumer promotions in order to make concerts accessible to all fans. Discussion Questions 1. Live Nation’s mission statement is to connect musical fans and artists. With this in mind, answer the following questions for Live Nation: (1) What is our business? (2) Who is the customer? (3) What do consumers value? (4) What should our business be? Does its mission statement answer these four questions soundly? Live Nation’s original core focus was to develop concerts and shows to provide the best live music experience for fans and artists. In terms of its customers, Live Nation considers both the music fans and the artists as being its customers—both of these sets of customers value the best musical experience that Live Nation can promote and develop. Finally, Live Nation does believe that it should provide the best musical experience for fans and artists. With these considerations in mind, it appears as if Live Nation’s mission statement is a sound one. 2. How is Live Nation’s mission statement more “market oriented” (and not myopically defined)? Although Live Nation’s original core focus was to develop live musical concerts and shows, this was not its broad mission—as technology developed, much more live music has been accessed on the Web. Live Nation’s mission of connecting fans and artists is broad enough to encompass these technology trends, and thus it is “market oriented” and defined in terms of satisfying basic customer needs (connecting fans and artists). 3. Use the product/marketing expansion grid in Figure 2.3 of the chapter to identify growth opportunities for Live Nation in the future. 4 Students should brainstorm ideas for all four types of growth opportunities: market penetration, market development, product development, and diversification. Market penetration involves making more sales without changing its original product. Market development involves identifying and developing new markets for its current products. Product development involves offering modified or new products to current markets. Diversification involves starting up or buying businesses beyond its current products and markets. Students are creative and are particularly knowledgeable about live music and associated technology—they will generate lots of ideas for growth! Quiz 1. Live Nation provides: A. satellite radio service. B. live music experiences. C. product designs for brands. D. financial advising. Answer: B. Explanation: This is a simple, straightforward question designed to assess whether or not students paid attention to the video (instead of daydreaming). 2. Live Nation’s mission is: A. to distribute music online. B. to develop the most accessible music technology. C. to pamper the music artist. D. to connect music fans and artists. Answer: D. Explanation: Their original core focus is the development of concerts and shows. 3. In the video, a marketing executive for Live Nation states that its competition includes: A. musical artists. B. music fans. C. non-concert experiences. D. online music subscription services. Answer: C. Explanation: Live Nation strives to differentiate itself as providing the best musical experience out there. 4. Which of the following services does Live Nation provide? A. merchandise B. online music C. ticket sales D. All of the above Answer: D. Explanation: As technology changes, Live Nation strives to develop its offerings to music fans and artists. 5 musical experiences B. Explanation: Live Nation perceives this as being their core benefit serving both fans and artists. Live Nation strives to differentiate itself as providing the best __________ out there: A. Chapter 3: Analyzing The Marketing Environment 6 . concert tickets Answer: A. merchandise C. online music D.5. They tend to research products before they consider a purchase. The video suggests that TOMS shoes are primarily bought and valued by a younger generation. A great activity for students after watching the video would be for them to brainstorm cause-related marketing ventures in the same spirit as TOMS shoes. By purchasing a pair of TOMS shoes. the Gen Xers are a more skeptical bunch. Synopsis TOMS shoes delivers one pair of shoes to a person in need in a third-world country for every pair of shoes bought by a customer—a business that is specified in the video as a “one-to-one” model.S. and relationships • Are still the wealthiest generation in U.pearsoncmg. prefer quality to quantity. they are less materialistic • They prize experience. and tend to be less receptive to overt marketing pitches. history • Generation X • Although they seek success. young people get a chance to participate in supporting a charitable cause. The owner views his business more as a beneficiary that sustains this charitable cause. This practice facilitates TOMS shoes vision of creating a movement of young people for making a better tomorrow. • Millennials 7 . Generation X. and the Millennials. responsibilities. Video Title: TOMS Shoes Link: http://media. Explain the key changes in the political and cultural environments. Discussion Questions 1. not acquisition • For many of the Gen Xers who are parents. TOMS shoes takes volunteer customers with them to deliver the shoes to people in third-world countries. Discuss how each of the following generational groups might react to TOMS shoes: the baby boomers.com/ph/bp/bp_akamai/kotler/TOMS_Shoes. Of course. • From a marketing standpoint. student opinions will vary. The following factors in the chapter for each generational group seem relevant to this discussion: • Baby boomers • Are rethinking the purpose and value of their work. 2.html Classroom Application: TOMS shoes is an innovative for-profit model that uses its business as a sustainable means to help people without shoes in third-world countries.Topic: TOMS Shoes is a company that ships one pair of shoes to those in need for every pair of shoes bought by its customers Learning Objectives: 1. Explain how changes in the demographic and economic environments affect marketing decisions. family comes first—both children and their aging parents—and career second. students may have differing opinions when discussing this question. high school students C. 2. The chapter states that we “use products. TOMS is not a nonprofit organization. Therefore. B. Explanation: This is a simple. At this early stage in its existence. As stated in the video. financial advising.” How do you think TOMS shoes does with respect to this controversial line? Because TOMS shoes is a decidedly for-profit business. college students B. One obvious answer to this discussion question is that the business of TOMS shoes represents socially responsible values and traits. but it does utilize a business model designed to create sustainable support for its philanthropic cause. and services as a means of self-expression. all signs point toward its cause-related marketing approach being sincere to its philanthropic goal to help people in third-world countries. live musical experiences.” Associate this idea with TOMS shoes. 8 . it’s a way of life Rather than having mass marketing messages pushed at them. TOMS goal is to create a movement of young people for making a better tomorrow. TOMS provides: A. young people D. The chapter mentions the potential for controversy related to cause-related marketing: companies that engage in such practices walk “a fine line between increased sales and an improved image and facing charges of exploitation. 3. TOMS specifies that ____________ comprise its largest customer base A. The chapter states that TOMS shoes customers “see themselves as part of the broader world community. brands. and (we) buy products and services that match (our) views of (ourselves).” Quiz 1. Answer: B. All of the above Answer: D Explanation: The owner explains that TOMS was created with the young person in mind who traditionally does not get a chance to participate in giving to charities. shoes. straightforward question designed to assess whether or not students paid attention to the video (instead of daydreaming). customers may feel that showing off their TOMS shoes to others (and to themselves) communicates their own socially responsible values and traits. D. they prefer to seek out information and engage in two-way brand conversations 2.• • They don’t just embrace technology. C. product design. 4. B. The owner of TOMS stated that his business model: A. Explanation: For each pair of shoes sold to a customer. A.” Answer: D. The company’s name in the video is taken from: A. the word “tomorrow. Explanation: The owner views his company as more of a movement of young people for making a better tomorrow. C. C. is profit-driven. the owner’s first name. 9 . is market share-driven. wealthy customers D. 5. relies on consumer promotions. Explanation: Relying on the business to sustain the charitable donations of shoes to third-world countries is better than relying on donors for support. Answer: C. churches Answer: A. government aid C. TOMS delivers a pair of shoes to a person in need in a third-world country. his business B.3. is “one-for-one. D. the owner’s last/family name.” D. B. the book Tom Sawyer. The owner of TOMS stated that _____________ is/are more sustainable than relying on donors/beneficiaries for supporting his cause. php? title=Radian6%20(Intro%20to%20Global %20Marketing)&clip=pandc/bp/2011/keegan/Radian6_Intro. and complaints.xml Classroom Application: This video would be a very nice springboard for activities and discussion regarding the use of social media communities in forming and monitoring the strength of one’s brand. After watching the video.com/ph/bp/bp_mylabs/akamai/template/video640x480.e. Video Title: Radian6 Link: http://media.pearsoncmg. analyze..mov&caption=bp/bp_mylabs/akamai/2011/ke egan/xml/Radian6_Intro. ideas. . engage in initial discussions of if and how your students bring brands into their conversations on social media Web sites like Facebook. Explain the importance of information in gaining insights about the marketplace and customers. needs.adb. 3. and engage with their consumers.Chapter 4: Managing Marketing Information to Gain Customer Insights Topic: Using online social communities to listen. How and when is it appropriate to do so? You can then assign them the task of “listening to” (i. Discussion Questions 1. more timely customer insights at lower cost. What unique benefits do social media Web sites provide regarding information in gaining insights about the marketplace and customers? The following statements in the chapter are applicable to this question: • “Each one (social media Web site) has contributed to a growing tidal wave of “bottomup” information that individuals volunteer to each other and to organizations. monitoring and searching) conversations about brands on social media Web sites. “Radian6 helps companies to keep track of almost any relevant online conversation” about various brands. Explain how companies analyze and use marketing information. analyze. Radian6 collects brand conversations online via social media Web sites in order to allow companies to listen. 2. Define the marketing information system and discuss its parts. Organizations able to . Synopsis As the textbook states in this chapter. The video emphasizes both the need for a company to think global right out of the gate and the importance of listening to one’s customers in order to form meaningful and profitable relationships with them. . 10 . and engage in brand conversations with consumers Learning Objectives: 1. • Social media make it easier than ever for people to share—to have conversations and express their opinions. elicit and use such [volunteered information] will be able to gain much richer. Explanation: A main idea in the video was that technology has rendered a borderless world and marketplace. Radian6 provides: A. build up over time into breaking into the global market. remain local.In addition to these ideas. how would brand conversations on social media Web sites be related to customer relationship management (CRM)? In the video. This service provides a unique and objective way to assess and track the consumer environment. C. competitors’ actions. online travel agency bookings. In analyzing and using marketing information. assume global demand immediately. 2. A social media Web site is an important customer touch point to gather important information from your profitable customers. and early warnings of opportunities and threats. D. tracking of online conversations. A company can understand their customers and competitors by tracking brand conversations on social media Web sites. then go global. shown slow and steady growth over a period of many years. start local. CRM is a tool companies use to identify profitable customers using touch points and understand their needs in building relationships with them. In the video. cell phone service. D. B. Radian6 has: A. Quiz 1. the day they provide their services online. executives at Radian6 emphasizes the importance for companies to: A. not reached profitability yet. then go national. straightforward question designed to assess whether or not students paid attention to the video (instead of daydreaming). As a company. social media Web sites promote sincere word-of-mouth (WOM) promotion among community members. Answer: B. C.” 2. financial advising. B. Radian6 talks a lot about forming meaningful relationships with your customers and being part of their online communities. Explanation: This is a simple. shown about 25% quarter-over-quarter growth since they started the company. None of the above. C. Answer: C. An executive in the video mentioned that for many companies. As the video mentions. D. 3. Relate Radian6’s service to competitive marketing intelligence. this WOM promotion provides a company a sincere form of feedback on a brand if monitored without bombarding its customers with too much “marketing goop. 3. B. there will be instant global demand. 11 . local and homegrown. Explanation: An executive in the video characterizes Radian6’s progress as a company as “rocket ship growth. Dachshund dog lovers) and not by their borders. For example. B. Answer: A. Answer: D. you are not going to be dissuaded by the fact that the online community started among people living in Germany. as an American. In order for a company to generate consumer interest in an online community. D. B. the company set up a Facebook page and post advertisements for customers. being based on borders.Answer: D. the company develop relationships with their customers by sharing with/learning from them. as opposed to blitzing them with continuously “marketing goop. exclusive and territorial. D.” 4. being based on interests. Radian6 talks about communities as: A. In the video. if you like Dachshund dogs and want to join a Facebook community of such dog lovers. communities are defined by their interests (e.. C. Explanation: The video emphasizes developing real connections and relationships with their customers. the company hire many customer service agents to encourage online customers to call them over the phone. Explanation: In the video.” 12 . 5.g. C. Radian6 suggests that: A. create many consumer promotions for such customers. 2. Social. What demographic segment of consumers is Wild Planet targeting? Student responses may vary. age and lifecycle are going to affect how people buy toys. But Wild Planet sells more than just toys. The case discusses the role of peer pressure (reference groups) in the buying decision of toys. Kids today are more savvy and sophisticate. Today’s kids are growing up in an entirely different culture than did children 25 years ago. It sells positive play experiences. Personal. it is recognized that even at young ages. To better understand those experiences. There are two very clear customer segments that Wild Planet is targeting: 13 . they should be quality learning tools and help children develop various skills. Also. Also.html Wild Planet markets high quality.com/ph/bp/bp_akamai/ebert/Wild_Planet. This is a good case to show the complexities of defining the customer. They value being asked about their opinions. nonviolent toys that encourage kids to be imaginative and creative and to explore the world around them. Reference is made to the “trendsetters” (roles and status). Wild Planet is built around the idea that toys should be not only fun. the company conducts a tremendous amount of consumer research to delve into consumer buyer behavior. This can be explained by the impact of self-concept. Parents who agree are more likely to be drawn to Wild Planet products. They have always been in a world where the Internet exists. Questions and Answers 1. Explain how each of the four sets of factors affecting consumer behavior affects the consumer purchase process as it relates to toys from Wild Planet. Below are some examples of how each factor could affect the consumer purchase process for Wild Planet toys: Cultural. This is a very broad question and student responses will certainly vary. But more importantly. many kids want to be the first to have the latest and greatest toy. List and define the major types of buying decision behavior and the stages in the buyer Video Title: Wild Planet Link: http://media. nonsexist. the case highlights how the beliefs and attitudes of girls (that their rooms should be decorated and accessorized) are different than those of boys (that toys should be for playing with).Chapter 5 Consumer Markets and Consumer Buyer Behavior Topic: Description of local delivery service based on online and its operations/strategies Learning Objectives: 1. Psychological. This is true for the primary customer (the child) as well as the secondary customer (the parent). Students should identify the four broad categories of factors affecting consumer behavior as found in figure 5. the case discusses the role of gender and gender perceptions at length. Obviously. Beliefs and attitudes play a major role in buying toys.2.pearsoncmg. Visit the Wild Planet Web site at www. Each product sub-site has a link to the Wild Planet online toy store where purchases can be made. Within those broad segments. Teaching Ideas 1. the site does not seem to facilitate easy comparisons of different products. 14 . How does the Web site help consumers through the buyer decision process? Students should be able to identify something from this website in at least the first four steps of the buyer decision process: Need recognition. Dino-Mites or Purse Pals).g. Are they more likely to patronize the company in ten years? Fifty years? 2. Evaluation of alternatives. The toy store can also be accessed from the home page.children and parents. Websites such as the Wild Planet site are loaded with product information. Information search. Have students list the characteristics they possess that make them more or less likely to shop at Wild Planet. Even within the Wild Planet portfolio. Wild Planet certainly segments in more detail. Customers can easily gather information on any product of choice. thus taking advantage of the strengths of the Internet. This may spark a need in the consumer’s mind if they do not have those types of toys. Then have them consider how those characteristics will change over the next ten years. Browsing customer may be struck with how Wild Planet toys are designed to help foster relationships with certain toys (e.com to learn more about the company. Other demographic characteristics include gender and opinion leadership. Assisting in this phase is subtle at best. Have the students think about a hypothetical new toy: How might they come up with an idea for the new toy? How will they know if the product will sink or swim? Use this discussion as a lead-in to understanding Wild Planet’s research program—what it does well and how it might improve. enabling potential customers to compare features. Purchase decision.wildplanet. The Wild Planet site is not set up for comparison of toys for other brands. 3. One of the first things stated by Tom Schneider is that the Eaton brand is trusted as a quality product. knowledgeable clients to create total solutions that meet their needs. List and define the steps in the business buying decision process. However. Eaton markets to sophisticated. 18 wheelers safer to drive. 15 .xml Video Summary Eaton is one of the world’s largest suppliers of diversified industrial goods. Mike Longmen specifically addresses three positions or levels of customer that Eaton interacts with: • • Engineers who are designing things Operations people who are running things. The buying center establishes that there are various individuals and even departments within companies that have a vested interest in any given purchase. The true Eaton value proposition evolves throughout the case and is summarized best by Mike Longman toward the end of the video. There may be a tendency for students to focus on this as the value proposition. But the full answer to this question should revolve around the concept of the buying center in the text. 2. buyers.Chapter 6: Business Markets and Business Buyer Behavior Topic: Eaton belives in working closely with customers to develop better products Learning Objectives: 1. and airliners more fuel efficient.adb. and gatekeepers. Identify the major factors that influence business buyer behavior. So the company partners with its sophisticated. These include influencers. 2. Eaton’s products make cars more peppy. Video Title: Eaton Link: http://media. There are far too many companies that claim that they stand for “quality” when it isn’t really clear what that term means. discriminating customers. that Eaton solves problems its customers by solving problems for the end customer. this is rather generic.mov&caption=bp/bp_mylabs/akamai/2012/MKTG/xml/Ea ton_Web__Complete. deciders. Questions and Answers 1. What is Eaton’s value proposition? This may be a challenging question for students to answer. Who are Eaton’s customers? Describe Eaton’s customer relationships.php?title=Eaton %20&clip=pandc/bp/2012/MKTG/Eaton_Web__Complete.pearsoncmg. At Eaton.com/ph/bp/bp_mylabs/akamai/template/video720x480. It does this by providing innovative solutions that are applied across multiple levels of the distribution channel. In the video. B2B marketing means working closely with customers to develop a better product. users. That is. The executives even speak of how they view “things going wrong” as their chance to shine. Chances are. Some of this relationship management is rooted in things that are discussed in the other two questions. The customer knows what’s needed. One other important elements of customer relationship management addressed in the video is the fact that the Eaton is aware that it manages multiple customer “touchpoints.” 3. Do any marketers make both lists? Ask students to think about the enormity of the b-to-b market as compared to the b-to-c market. it is imperative that all such interactions are managed as though Eaton is one representative. dependable customer service and product support.• General managers who are focused on the broader scope of value that can be added. Eaton solves problems for its customers by solving problems for the end customer. It has to be innovative. Eaton has expertise that its customer do not have and shares it. Eaton’s success depends on its ability to provide high quality. Eaton works multiple levels of channels that interact with each other. and helps add value to its products. and there are so many representatives from Eaton that interact with such. Give them an additional two minutes to list all of the business-to-consumer marketers they can. The video specifically addresses the strength that Eaton has in managing relationships with its customers. Eaton knows what’s possible. Why aren’t they more aware of b-to-b marketers? 16 . Eaton recognizes that it can not sell the same product every year. because there are so many levels to the customer. one of the principle aspects is that Eaton has a competency in resolving situations that go wrong. Customers come to trust Eaton as it reacts in ways that demonstrate that it has the best interest of the customer in mind.” In other words. Through service and support. Discuss the different ways that Eaton provides value beyond what companies can provide for themselves. be worth paying a price for. However. Eaton develops a clear understanding of consumer needs and builds stronger relationships with clients. Alexander Cutler had a quote that illustrates Eaton’s understanding of customer relationship management: “People buy from people they want to buy from. Some of the specific ways that Eaton adds value as per the video are as follows: • Eaton has gone from component provider to solutions provider. • • Teaching Ideas Give students two minutes to list all of the business-to-business marketers they can recall. the list of b-to-c marketers is considerably longer. But to say that this drives Meredith’s segmentation strategy would be far too broad. Geographic/Demographic – The case describes how Meredith creates different versions of their bigger magazines (e. Explain how companies identify attractive market segments and choose a market targeting strategy. But the amazing thing is that they have done this by focusing on only half of the population…the female half. differentiated.g.com/ph/bp/bp_akamai/ebert/Meredith. 17 . 3. Questions and Answers 1. The case mentions life events like having a baby. Meredith clearly targets several market segments and designs separate offers for each.pearsoncmg. By focusing on core categories of home. “Better Homes and Gardens”) across different demographic and geographic segments.. and positioning. Meredith clearly pursues a differentiated strategy. Other possibilities include getting married or buying a first home.html Video Summary The Meredith Corporation has developed an expertise in building customer relationships through segmentation. This factor is more like the starting point for cutting out half the market. The case specifically discusses Meredith’s ingenious method (Passion Points) of gauging a customer’s level of interest in a given area such as cooking. 2. Clearly. or getting ready for retirement. a special version of BHG has been offered in the past to subscribers of a particular income range. Meredith has developed a product mix designed to meet various needs of women. targeting. Passions – this could be considered an extension of interests and hobbies. Learning Objectives: 1. 2. Discuss how companies differentiate and position their products for maximum competitive advantage.Chapter 7: Customer-Driven Marketing Strategy: Creating Value for Target Customers Topic: The Meredith Corporation has developed an expertise in building customer relationships through segmentation. and personal development. For example. Of the four main targeting strategies covered in the text (undifferentiated. and micromarketing). this is the greatest area of focus. What are the main variables that Meredith has focused on to segment its markets? Gender. and positioning. Which target marketing strategy do you think best describes Meredith’s efforts? Support your choice. concentrated. Life stage/Life events – this one really stands out as a factor that breaks the female market down into groups that are specific enough to have their own product or product line. sending kids off to college. List and discuss the major bases for segmenting consumer and business markets. family. Video Title: Meredith Corporation Link: http://media. targeting. Meredith’s deep portfolio allows for adapting with customers as their needs change within a given interest area. For example. The idea is not just to sell a person one magazine. and be have diabetes. Meredith’s extensive database gathers as much information as possible about a customer so that various customer needs can be met. but meet different needs depending upon life stage. Thus. There is a Meredith magazine for each and every one of those characteristics. instructors might research the Meredith publication websites to discover what Meredith is already doing in that area. Meredith publishes hundreds of titles. have students categorize the various magazine titles according to segmentation variables. 3. How does Meredith use its variety of products to build relationships with the right customers? Meredith’s efforts to build relationships with customers are very closely tied to its segmentation activities. For example. a prospective parent might become a Meredith customer by subscribing to “American Baby. 2. Have them comment and speculate on the future of this industry. In conjunction with the first discussion question. “American Baby” (prenatal). love to cook.For its print magazines alone.” and then progress through the other publications. Lead the class in a discussion about the future of print magazines. remaining a Meredith customer for life. Also. Teaching Ideas 1. “Parents” (postnatal). but to create a link with a customer and then become the go-to source for multiple interest areas. Overall. For further supplements. Each of these is crafted to appeal to a certain kind of customer. 18 . Small groups could generate recommendations for a company like Meredith and how it might adapt to the changes in culture and technology. one person may be looking at remodeling their home. Have students visit the Meredith website. and “Family Circle” (teens and tweens) are all designed to appeal to parents. 2. Discussion Questions 1.” right? The only way to begin to answer this question is to conduct marketing research. solving a need for which consumers were asking.” being fun to eat with “a little bit of attitude” for the tweens segment. a yogurt tube designed for kids over six years old. The chapter states that “when designing products. and product mixes. Describe the decisions companies make regarding their individual products and services. Synopsis General Mills has a long tradition of providing food products to consumers looking for solutions to needs in their daily lives. Discuss branding strategy—the decisions companies make in building and managing theirbrands. GoGurt was first introduced in the marketplace in 1999 as a yogurt tube targeted to children over the age of six. Define product and the major classifications of products and services.mov&caption=bp/bp_mylabs/akamai/2012/MKTG /xml/GoGurt_Web_Complete. Video Title: Gogurt Link: http://media.xml Classroom Application: The need for brand repositioning efforts to revive a struggling product in the marketplace is the main “take-home message” in this video. Certainly. so have students team up in small groups to do such an activity and report their results to the class.com/ph/bp/bp_mylabs/akamai/template/video720x480. Students can get a very nice glimpse of the work a brand manager does by interviewing mothers in the marketplace (they can start by interviewing their own and their friends’ mothers!) regarding tube yogurt. product lines. but perhaps they can extend their efforts to appeal to consumers others than mothers and tweens.adb.Chapter 8: Product.pearsoncmg. and Brands: Building Customer Value Topic: GoGurt.” What is the core customer value that GoGurt provides consumers? 19 . it repositioned the GoGurt brand in 2009 to reach the “back-toschool” segment by targeting mothers’ needs for a “freeze and thaw” yogurt. repositioned itself in 2009 to appeal to “back-to-school” mothers’ needs for “freeze and thaw” yogurt. 3.php? title=GoGurt&clip=pandc/bp/2012/MKTG/GoGurt_Web_Complete. Services. It first positioned itself to mothers and kids as the first brand of yogurt that kids could “grab and go. GoGurt’s brand repositioning efforts proved very successful in 2009. These repositioning efforts proved to be wildly successful. problem-solving benefits or services that consumers seek. Learning Objectives: 1. As competition in this category increased and General Mills lost its strong share of this market. The name “GoGurt” does not necessarily have to bring to mind a product for tweens—other consumer segments can enjoy yogurt “on-thego. marketers must first define the core. pay-as-you-go cell phone service. with “a little bit of attitude. specialty product D. Describe the benefits that the packaging of GoGurt provides consumers. The chapter states that “a brand has positive brand equity when consumers react more favorably to it than to a generic or unbranded version of the same product. It should be pointed out to students that General Mills has one hundred brand in more than one hundred countries—keeping in mind the intensity of numerous competitors in any product category and marketplace. A. In 1999. shopping product C. 3. The tube packaging was also designed for mothers to be able to freeze it for eventual thawing during their kids’ lunchtimes at school. calcium and vitamin D) and because it can be freezed and thawed for their kids’ lunches. entertainment. unsought product Answer: A.” Students will voice various opinions on General Mills. Explanation: This is a simple. GoGurt was the very first brand of yogurt to provide a tube for its packaging. B. In 1999. D. B. Kids (particularly tweens) like GoGurt because it’s fun to “eat on the go” and has “a little bit of attitude. GoGurt provides: A.The answer to this question can be divided up by the end-user (kids) and the influencer/purchaser (mothers). Answer: B.” Mothers like it because it provides their kids over the age of six healthy benefits (e.” in a tube package. This revolutionized the yogurt category. GoGurt revolutionized the yogurt category by providing yogurt: that was fun to eat. 2. C. tube yogurt. Do you feel that General Mills has strong brand equity? Brand equity is defined in many different ways by many different theoretical frameworks. Explanation: Convenience products are usually low priced and are bought frequently. straightforward question designed to assess whether or not students paid attention to the video (instead of daydreaming). sustaining more than a hundred brands all over the world points to the incredible strength of General Mills brand equity! Quiz 1.. Which of the following best labels the GoGurt product? A. convenience product B. C. 3. transportation and limousine services. targeted for the mature market. D.g. as now kids over the age of six (particularly tweens) could eat healthy on-the-go. 20 . 2. During a break in focus groups. C. What was the initial spark/insight behind the successful brand differentiation described in Question #4 above? A. creating new “fun to eat” flavors. Interviews with tweens indicated an opportunity in the marketplace for a entirely new “rebellious” yogurt product. Explanation: Although answer choices A. B. creating a new “freeze and thaw” advertising and promotions campaign. D. Focus groups communicated less of a need for yogurt when school starts back up after the summer months. Explanation: GoGurt’s brand repositioning efforts here were wildly successful. focusing less on the “back-to-school” market segment and more on the baby boomer market segment. D. C. Telephone survey results showed a significantly amount of apathy among consumers towards GoGurt’s current flavors. & B. 4. but it wasn’t until after this focus group insight that the brand realized the importance of this benefit to the “back-toschool” market segment. GoGurt achieved brand differentiation by: A. above were part of the brand positioning strategy. 21 . Explanation: GoGurt was originally designed to be freezed and thawed. Answer: D. Answer: A. the tube packaging started the whole “grab and go” craze for yogurt. In 2009.Answer: C. communicating “a little bit of attitude” to its target segments. B. mothers talked about the solution of freezing GoGurt. 5. ” Describe Fiber One’s efforts in the video to evolve with their consumers. Describe the various merits and limitations of the outlined promotional budget for launching Fiber One’s new chewy bar outlined in the video. Discussion Questions 1. Synopsis Fiber One. The chapter states that “Although many products in the mature stage appear to remain unchanged for long periods. a General Mills food brand. 2. Describe the stages of the product life cycle and how marketing strategies change during a product’s life cycle. Grocery stores would be an excellent source of inspiration for this assignment—require students to visit grocery stores to generate ideas here. Learning Objectives: 1. To evolve and meet their consumers’ needs for good taste. Video Title: Fiber One Link: http://media. Fiber One recognized this finding as an opportunity to extend its product life cycle and create a wildly successful chewy bar product that blended the health of fiber with the indulgence of great taste. most successful ones are actually evolving to meet changing consumer needs.Chapter 9: Developing New Products and Managing the Product Life Cycles Topic: General Mills breathed new life into its mature Fiber One brand by identifying an opportunity to improve the taste of its healthy food products. In 2006. it tested and developed a chewy bar that provided 35% fiber with the indulgence of phenomenal taste.com/ph/bp/bp_mylabs/akamai/template/video720x480. was in danger of becoming stagnant in the marketplace around 2006. Considering General Mills philosophy of reinventing mature brands instead of letting them decline.php? title=FiberOne %20&clip=pandc/bp/2012/MKTG/FiberOne_Web__Complete.xml Classroom Application: Fiber One recognized its need to reinvigorate its mature brand by developing a new chewy bar that capitalized on the recent growth of the fiber craze. Fiber One conducted a segmentation study to uncover the barriers of consumption among its target consumers and discovered that consumers did not want to make the bad taste of Fiber One’s products a part of their daily lifestyles.adb.pearsoncmg. Students should form their own small “R&D” groups to develop ideas in revitalizing a current mature product/brand. 22 .mov&caption=bp/bp_mylabs/a kamai/2012/MKTG/xml/FiberOne_Web__Complete. 2. List and define the steps in the new-product development process and the major considerations in managing this process. a segmentation study for the barriers of consumption discovered that consumers did not want to make the bad taste of Fiber One’s products a part of their daily lifestyles. Although students will generate various merits and limitations of these promotional strategies. occupational therapy.e. What was the key barrier to consumption on which Fiber One based their product redesign efforts? A. B. limited availability in grocery stores B. Why was the term “cross-promotions” used at the end of the video? Link this term with its mature products. Explanation: This is a simple. refreshments in marketing mix. C. and honing messaging to consumers. lumber. Therefore. straightforward question designed to assess whether or not students paid attention to the video (instead of daydreaming). it developed the following promotional budget for this new product: • 50% of the budget went towards couponing in the first four months of the product launch. They “cut their losses” as quickly as possible and remove mature brands out of the marketplace. What is General Mills philosophy about the decline stage in the product life cycle? A. English muffins. unattractive brand packaging and labeling 23 . They don’t believe in the decline stage—there is always a way to reinvigorate mature brands. health insurance. None of the above Answer: C. expensive price points C. Fiber One has expanded its product offerings to include cereal. D. They like to ride out the mature brand as long as possible until none of their target consumers buy it at all. D. there is no denying that their product launch was wildly successful! 3. Fiber One likes to use its existing tools and resources to help out its products on the tail end of the product life cycle. and ready-to-eat breads. muffin mix. C. • The rest of the budget went towards targeted messaging to consumers online. Explanation: General Mills likes to reinvent their products annually with improvements in product design. Fiber One provides: A.After developing its new chewy bar. 2. healthy food products. B. Fiber One realized the importance of driving consumers to immediate trial. pancake mix. The brand uses cross-promotions (i. Quiz 1. 3. yogurt.. Answer: B. • One-third of the budget went towards providing samples of the new product to consumers. promotions that include and link its various products) to bring its core users to these expanded and new products and when its products are in more mature product life cycle stages as well. targeted messages to consumers online. couponing. Chapter 10: Pricing Strategies: Understanding and Capturing Customer Value 24 . 75% Answer: B. The largest part of Fiber One’s budget to launch its new chewy bar into the marketplace as devoted to: A. 35% C. Explanation: This level of fiber in the new chewy bar provided motivation for consumers to buy it but also allowed Fiber One’s R&D group to make it taste phenomenal. Explanation: In 2006. generating sales of $100 million in the first year. D. Which of the following levels of fiber in a chewy bar tested out to be the target of Fiber One’s new product design? A. 20% B. Answer: A. bad taste Answer: D. sampling. the fiber category exploded. 4. B. Explanation: The new chewy bars were wildly successful. 45% D. C. billboards.D. 5. so Fiber One conducted a segmentation study to take a hard look at their Fiber One brand. thus improving lifestyles. and informal. Video Title: IKEA Link: http://media. “to create a better life for the many people. clean. but it has been in the IKEA catalogue of products since the early 1980s without any major design change. but is really the same sofa as before. About one minute in to the video. that this will make more things available to more people. strangely enough. 25 .Topic: IKEA creates quality. quality does not stop at durable or reliable.pearsoncmg. It is modern.” With such a magnanimous vision. The discussion of this question should center around the promise-of-value as defined in question 1. and angular. But IKEA defines this mission further as “quality at low price. the looks of the sofa can be changed from time to time for the customer. not trendy: The sofa is sleek and stylish. modern.” 2. quality. For IKEA.” This is the “IKEA concept” and defines how it achieves its mission. Identify and define the other important external and internal factors affecting a firm’s pricing decisions.com/ph/bp/bp_akamai/kotler/IKEA. Note however that in accordance with the IKEA concept. “We design the price tag first. It also means that IKEA can come out with a sofa that looks up-to-date.” Each of these could be discussed in depth as to how it relates to product quality. Referring to the Klippan sofa.” This is a very idealistic mission statement for a furniture company. Identify the three major pricing strategies and discuss the importance of understanding customer-value perceptions. there is a set of phrases displayed.html Video Summary IKEA’s vision is. Questions and Answers 1. casual. One of the other things that has given this sofa longevity is that it has a removable slipcover. illustrate how IKEA delivers its promise of value to consumers. These include. simple. • Reflecting Swedish style: The basic design of this sofa is simple. That means. company costs. and functional furniture and household items around a low price point. the central phrase on that particular screen is. One other note that should be made is the definition of “quality” as far as IKEA and its customers are concerned. The main mission of the company is “To create a better life for the many people. It is also a bit broad. What is IKEA’s promise of value? There are two possibilities here. IKEA’s core focus on price.” and “Reflecting Swedish lifestyle. 2. It believes that if it can design stylish. and functional furniture at low prices Learning Objectives: 1. “People-focused and child-friendly. and competitor strategies when setting prices. The quality component of the IKEA concept can be noted as follows: • Modern.” “Modern not trendy. then determines a price. Thus.” It can really seat three comfortably. then iterations are performed between design and marketing to determine if anything can be revised. distributing. not the seller’s cost. Teaching Ideas Contact IKEA ahead of time and get a copy (or multiple copies) of the IKEA catalogue. it designs the product. If the slipcover ever becomes stained or damaged. does IKEA employ a value-based pricing approach or a cost-based pricing approach? Support your answer. and put back on with little trouble. have the class make some conclusions about how IKEA makes life better “for the many people. Specifically. this sofa is very durable (this note is being prepared by a Klippan sofa owner with two small children). but even years after the product is purchased. This is conducive to lounging and relaxing. Such companies are left with the challenge to communicate to the customer the value of the product at that price. IKEA’s pricing strategy is very clearly value-based. Cost-based pricing involves setting prices based on the costs for producing. That includes not only things such as function and style. as the key to pricing. It should be evident from the video that this is not the way that IKEA operates. Because of IKEA’s relentless focus on costs. figures out all the costs.2. 3. have students browse the catalogue (or sections of it) to come up with as many examples as possible of products the reflect IKEA’s promise of value. washed in a standard washing machine. not only at the point of purchase. If the product cannot be designed within that cost structure. but it includes price. it follows good-value pricing concepts. and selling the product PLUS some margin that allows for making a profit. a new one can be purchased. But it is “big. marks it up.• • People-focused and child-friendly: The basic Klippan sofa is a two-seat sofa. The illustration of this is Figure 10. The removable slipcover is also people-focused because it allows for customization. However. If not. What is the customer willing to pay for a product such as ____________? Once that is established. a true cost-based pricing strategy is dictated by a “product forward” process. As a follow-up to question 2. As far as child-friendliness is concerned.” 26 . Answering this question may lead to a lively debate among students in the class. Low price: The basic Klippan sofa is less than $250 with a basic single-color slipcover. then a cost structure is determined and the product is designed. Additional slip covers can be purchased for as little as $35. Value-based pricing uses buyers’ perceptions of value. the concept is shelved as something that wouldn’t work. Based on the concepts from the text. IKEA starts with the customer and an understanding of what the customer values. As these examples are compiled. In other words. it is somewhere in between a loveseat and a full-sized sofa. The removable slipcover is also perfect because it can be taken off. it would be very easy to jump to the conclusion that IKEA has a cost-based pricing strategy. So. Discuss the key issues related to initiating and responding to price changes. For example. Video Title: SmashBurger Link: http://media.Chapter 11: Additional Pricing Considerations Topic: Smashburger provides a quality burger for a premium price Learning Objectives: 1. Discussion Questions 1. there don’t seem to be too many upscale restaurants that focus on burgers—is there a reason why? Synopsis Recognizing a gap in the “burger joint” marketplace. most college students are very accustomed to buying combo meals from fast-food restaurants.com/ph/bp/bp_mylabs/akamai/template/video720x480. 2.xml Classroom Application: Smashburger recognized a gap in the marketplace and designed their business and product around filling that gap.pearsoncmg. Explain how companies find a set of prices that maximizes the profits from the total product mix. 3. table service and upscale serving baskets). but most students (and consumers in general for that matter!) expect discounts from time to time. They seek to steal consumers who like to go to casual dining restaurants (e.adb. Discuss how companies adjust their prices to take into account different types of customers and situations. and they provide an environment and service that justifies their premium price point (e. Smashburger provides a quality burger with quick service for premium prices. Students will obviously have various opinions. Combo meals at fast-food restaurants are a great example of product bundle pricing. A fun exercise for students would be for them to attempt to identify gaps in the burger restaurant industry and brainstorm product concepts to fill those gaps. Smashburger says in the video that they do not offer any discounts to customers. which the chapter defines as offering a bundle of products at a reduced price.. Do you prefer to order your food at restaurants this way? Would Smashburger’s a la carte pricing scheme turn you off or attract you more? Explain. Applebees) and spend ~$12 per meal. 27 . They aim to provide the speed of McDonald’s in serving their gourmet quality burgers and side dishes to achieve their premium pricing strategy.g. How much value or discount do they perceive they get from buying a combo meal? 2. Do you think this is a good strategy for them? Students will obviously have various opinions.g.php? title=Smashburger&clip=pandc/bp/2012/MKTG/Smashburger_Web__Complete.. but in all likelihood. The price range for a burger and gourmet side at Smashburger is $8 to $10.mov&caption=bp/bp_mylabs/akam ai/2012/MKTG/xml/Smashburger_Web__Complete. Smashburger states in the video that they wanted to initiate their products with high starting prices because they thought it would be too difficult to raise prices down the line if they started with low prices. 28 . Explanation: This is a simple. D. $1 to $3 B. a lukewarm response. D. drive-in deliver format D. Explanation: Concept testing before a new launch increases your odds for success. C. C. a desire among respondents for a chicken club sandwich. None of the above Answer: A. Smashburger realized the following gap in the “burger joint” marketplace: A. Answer: B. premium burgers and sides. 100% “top-box” satisfaction levels among respondents. 3. $4 to $7 C. $8 to $10 D. cheap fast food B. when prices increase. What is your opinion of this strategy? The chapter indirectly references the price-quality heuristic in talking about buyer reactions to price changes. B. Smashburger uses: A. B. they discovered: A. Smashburger provides: A. Explanation: This price range provides a valued alternative to casual dining restaurants such as Applebees. soda. fast food. consumers typically associate such increases with better quality in the product (and vice-versa). When Smashburger tested their new concept before they opened. 2. That is. Smashburger’s price range for a meal was mentioned in the video to be: A. $15 to $20 Answer: D. premium-priced burgers served as quick as McDonald’s Answer: D. 5. straightforward question designed to assess whether or not students paid attention to the video (instead of daydreaming).3. Explanation: A gap in the marketplace presents great opportunity for new businesses. Happy Meals for kids. 4. a gourmet burger restaurant in which reservations were required C. a la carte pricing. Do students believe this effect would happen with burger joints? Quiz 1. Answer: A. D. Explanation: Debundling menu items allows customers to customize their orders.B. 29 . combo pricing. market-penetration pricing. everyday low pricing. C. pearsoncmg.html Video Summary Progressive has grown into the third-largest auto insurance group in the country. For example. In this case. Questions and Answers 1.Chapter 12: Marketing Channels: Delivering Customer Value Topic: Progressive attains the status of the third largest auto insurance group in the country. and flexible pricing for products. One approach that students might take for this is to list out the possible participants in the supply chain. Whereas most insurance companies distribute their products to consumers via intermediary agents or direct-to-consumer methods. by not only focusing on growth. and final consumers. Video Title: Progressive Link: http://mediadev. product information. Some of Progressive’s most innovative moves have involved its channels of distribution. sketch out as many channels for Progressive as you can. and related information among suppliers. Progressive was one of the first companies to recognize the value in doing both. but also by focusing on innovation. Identify the major channel alternatives open to a company. Using the model of consumer and business channels found in the chapter. financial incentives (commissions). For Progressive’s direct channel. Various features are given through this medium for customers to become educated about Progressive’s products. none that are mentioned in this case). As per chapter 10. the concept of supply chain management deals with “managing upstream and downstream value-added flows of materials. Progressive supplies these resellers with training. the company. Explain why companies use marketing channels and discuss the functions these channels perform. With respect to its agent channel. attaining its status by not only focusing on growth but by focusing on innovation. then discuss the extent to which each applies to Progressive.com/ph/bp/bp_akamai/armstrong/Progressive. Learning Objectives: 1. Direct customers can then interact with the company and purchase product in two ways.” This concept is probably much more easily applied to examples involving tangible products. 2. 2. final goods. the company communicates to customers through mass-media advertising (this has also had an incidental effect on increasing brand awareness for customers shopping through agents). Progressive is creating and distributing an intangible service. there really are no suppliers for Progressive’s insurance products (at least. by telephone or through the Internet. It also communicates through its website. Progressive has nurtured these relationships for over 40 years. How does each of these channels meet distinct 30 . Apply the concept of the supply chain to Progressive. The company manages the flow of “product” and related information with its agents as well as directly to its customers. resellers. customer needs? 31 . Cross-shopping customers also may be even more attracted to this channel as cross-company comparisons are made readily available as clearly and easily as if shopping for a consumer good through a shopping engine. • provide text messaging bill reminders. As discussed in the first question. they never have to talk to a representative of the company. • offer online claims services. note: some students may include more than one channel for direct to consumer. How might Progressive’s direct strategy have clashed with the agency network? 32 . a good class discussion may focus around the concept of channel conflict. They also may want to go to a source that has multiple options in terms of companies to choose from. Such customers can also access the company and even make purchases any time of day from any location. This customer may not be Internet savvy. • include a “call me” button on the website to speak with a representative. Progressive distributes through two main channels: ProgressiveAgents Consumer segment 1 The customers in this segment need more hand’s on help from someone in determining the type of policy and coverage that they might need. the agency channel still comprises 65% of Progressive’s business and is much larger than it was pre-Internet. Discuss the various ways that Progressive has had an impact on the insurance industry. If they choose. 800-call centers are one channel with the customers calling in. Lead a discussion that centers on the synergy achieved through promoting the direct-to-consumer channels with mass-media advertising. Responses here should focus on the innovations that Progressive has pioneered in this industry.3. Progressive was the first insurance company to: • start a website. Be sure that the discussion touches upon how choosing to go with a dual-channel strategy could produce significant channel conflict. • sell an insurance product on the Internet. • put response vehicles on the road. and the Internet is another channel. How did this benefit the agency channel? One point that should be brought out is that even after selling online for over 10 years. • provide concierge claim processing. 4. • provide an easy comparison to competing company’s products. Progressive Consumer segment 2 Customers in this segment are looking for benefits of control and convenience. Teaching Ideas In addition to the concepts covered in the discussion questions. The customer is in control of the process from start to finish. 33 . 1 “Major Store Retailer Types” in the chapter to discuss what type of retailer Zappos is. and other products. 2.mov&caption=bp/bp_ mylabs/akamai/2010/management/xml/zappos_comp_strat_2010.php? title=Zappos:%20Competitive %20Strategy&clip=pandc/bp/2010/management/zappos_comp_strat_2010. and handbags. 2. handbags. Zappos has experienced success and growth to the point where Amazon. the company states the desire to expand their offerings into hotels and an airline. clothing.Chapter 13: Retailing and Wholesaling Topic: Zappos.xml Classroom Application: After watching the video. Discuss the major trends and developments in retailing. Discussion Questions 1. However. strives to provide world-class customer service Learning Objectives: 1. The video mentions an 800-number to call day or night to talk to a knowledgeable and entertaining employee who is empowered to help. Zappos strives and focuses to be a full-service retailer. In terms of amount of service shown in the video.pearsoncmg. how would you characterize Zappos: a selfservice. The company’s founder has designs on opening hotels and an airline someday. clothing. 34 .com/ph/bp/bp_mylabs/akamai/template/video640x480. Use Table 13. Explain the role of retailers in the distribution channel and describe the major types of retailers. limited-service. Students can report their findings in a presentation format. Video Title: Zappos Link: http://media. Such customer service representatives have no scripts or call-time limits and offer free overnight shipping and postage-paid returns to their customers. the best characterization of the company would be a specialty store at this point in their life cycle—the specialize in shoes.adb.com recently purchased the company based on its shared goal of world-class customer service. have students go on the Zappos Web site and search for evidence that Zappos truly does deliver world-class customer service. or full-service retailer? Despite their online status as a retailer. Synopsis Zappos is an online retailer of shoes. Even though Zappos is an online service. Compare and contrast similar Web site retailers with Zappos to determine if Zappos holds a competitive advantage for customer service. Its primary mission is to deliver world-class customer service in order to hold a distinctive edge over its competitors. an online shopping retailer. It is arguable that Zappos strives to become a superstore retailer. All of the above Answer: D.” As a consumer. C. What is Zappos’ core competency? A. B. customer service Answer: D. 2.3. luxury shoes B. online shopping. Students will have various opinions regarding the online retailing experience. Answer: C. Zappos chose long-term sustainability over shortterm profits to ensure this core competency. Whenever you call Zappos’ 800-number day or night. empowered-to-help D. A. Online shopping provides a great information-search consumer experience. D. whereas going to the actual store to physically experience the tangible product is typically a necessary step in the alternative evaluation and purchase decision stages. entertaining C. Would you make an extremely importance purchase solely as an online buy without holding the product in your hands? Quiz 1. clicks” debate. Amazon B. grocery stores. straightforward question designed to assess whether or not students paid attention to the video (instead of daydreaming). you talk to a(n) _____________ employee. Which of the following companies recently purchased Zappos? A. low prices D. high-end. 3. There are obvious trade-offs for consumers that decide between doing their shopping online vs. knowledgeable B. The chapter suggests that online and physical retail shopping is used in conjunction with one another to achieve the unique benefits of both. effective supply chain management C. The chapter states that “Americans are increasingly avoiding the hassles and crowds at malls by doing more of their shopping by phone or computer. Explanation: As a consumer. Google 35 . going to a traditional brick-and-mortar store—the classic “bricks vs. Zappos provides: A. satellite radio service. a diet and food-delivery service. discuss the advantages and disadvantages of online retailing. can you claim to have such an experience with other online retailers? 4. Explanation: Early on in its life as a company. Explanation: This is a simple. Send you a gift certificate B. Recommend one of their competitors C. Microsoft Answer: A. Explanation: Both Zappos and Amazon share the same goal of world-class customer service. What does Zappos do when they can’t find what you want to buy? A.C. Send you a “rain-check” Answer: B. 36 . Apologize D. Explanation: The video mentions that Zappos has a “Zen-like” focus on bringing happiness to their customers. Facebook D. 5. the culture – people who work at CP+B are workaholics. b. they have defined events.pearsoncmg. But because CP+B has become so adept at thinking outside the box. d. print. a campaign that shaped the agency and changed the nature of social advertising forever. it does point out various things that make CP+B unique and therefore differentiate it from others. apparel. size – it is a big agency that thinks and functions like a small one. Crispin has worked miracles for companies like Virgin Atlantic Airways and BMW’s MINI by executing non-traditional campaigns designed to work within limited budgets. c.Chapter 14: Communicating Customer Value: Integrated Marketing Communications Strategy Topic: Crispin Porter + Bogusky has been working over time to prove that it is the most innovative firm at truly integrating marketing promotions. it employs various non-traditional media. Thus. 2. Alex Bogusky once said. These include: a..” What does this means? How is CP + B demonstrating this mantra? When most people think of an “ad”. Questions and Answers 1. and websites as ads. but because they feel that they are part of something truly unique. non-traditional approach – many agencies are focusing on integrating marketing communications across different media. 2. “Anything and everything is an ad. In what ways has CP + B differentiated itself from other advertising agencies? While this case does not discuss other agencies specifically.html Video Summary Crispin Porter + Bogusky has been working over time to prove that it is the most innovative firm at truly integrating marketing promotions.g. video games. truly different. they think of the traditional media such as broadcast. Learning Objectives: 1. billboards). and outdoor (e. Not for the common workaholic reasons. CP+B’s philosophy is that any message communicated through a medium of any kind can be an ad. Video Title: Crispin Porter + Bogusky Link: http://media. Outline the communication process and the steps in developing effective marketing communications. rallies. taking on the impossible – CP+B is at its best when signing up for something that others in the industry say can not be done. Crispin’s unique capability to balance strategy with creativity is what produced such ground breaking efforts as the “Truth” campaign.com/ph/bp/bp_akamai/ebert/CP_B. 37 . But CP+B has a knack for employing things that are totally out of the norm. Discuss the changing communications landscape and the need for integrated marketing communications. “Truth” campaign is the only basis for example in this case. it is apparent that the strategy was to create a message that would communicate the idea of rebelling against the “man. apparel. It then employed one of its greatest strengths…creating ideas. or a secretary. Thus. those ideas can come from anywhere…a creative director. The key is that the company doesn’t just throw darts and do something zany because it is zany. The “Truth” campaign is only one of them. This strategy also involved creating a brand with which the target market could identify. Big Tobacco. rallies.” or. print. 38 .3. Teaching Ideas Crisping Porter + Bogusky has created some really ground breaking campaigns. Presenting this material in class along side the video case will combine to make a truly informative as well as entertaining presentation. Give some examples as to how CP + B balances strategy with creativity. It looks for ways to communicate a message that fall in line with the established strategy. This portion of the process could be considered CP+B’s definition of the problem. This is what takes CP+B into employing tradition (ads and PR) as well as non-traditional (events. gear. CP+B used this strategy as an umbrella. and broadcast ads from other campaigns such as CP+B’s efforts with Burger King over the past few years. In examining this campaign. everything from the apparel to the ad “Body Bags” communicated the strategic message of rebelling against Big Tobacco. After having defined the problem. an intern. websites) methods. As stated in the case. Gather information. Students should be encouraged to use Table 15. You might also want to separate them into small groups for a creative exercise in brainstorming new ideas for E*Trade ads..html Classroom Application: Running a commercial during the Superbowl is an extremely expensive and risky proposition.g. persuade. The talking baby in the ads 39 . right? Synopsis E*Trade allows consumers to easily invest and trade by themselves on its Web site platform. Discuss the three main advertising objectives from the chapter implied in this model approach. Video Title: E*Trade Link: http://media.” The general message communicated in these E*Trade set of ads was that investing and trading on E*Trade’s Web site is easy to do (so easy that a baby can do it!) and it is inexpensive (thus saving the baby enough money to rent a clown!). ads with a talking baby) and directed consumers to their Web site. a do-it-yourself investment and trading Web site. Describe the major decisions involved in developing an advertising program. the “talking baby” ads cannot run forever. The chapter specifies three main advertising objectives: to inform.. Desire. the company had enjoyed enormous success from running commercials during the Superbowl that have generated great buzz (e. broke through the clutter with its popular baby ads during the Superbowl Learning Objectives: 1. 2.1 “Possible Advertising Objectives” in the chapter to identify specific objectives that E*Trade’s commercials seem to have accomplished. E*Trade’s AIDA model by way of its series of commercials in the video essentially accomplishes all three specified advertising objectives in the chapter. and remind. effectively taking control from the banks and placing it in the hands of consumers for an inexpensive price. Airtime for a 30-second ad during the 2011 Superbowl cost upwards of 3 million dollars. The video describes E*Trade’s AIDA model approach to advertising. Discussion Questions 1. For about a decade now.Chapter 15: Advertising and Public Relations Topic: E*Trade.com/ph/bp/bp_akamai/kotler/ETRADE.e.pearsoncmg. a theory-building exercise). and Action. Interest. What was the message strategy for the “talking baby” ads? Message strategy is defined in the chapters as “the general message that will be communicated to consumers. E*Trade’s “talking baby” ads have enjoyed a near-decade long run during each of the Superbowls played during this span. That is. AIDA stands for Awareness. Get your students to discuss their own explanations for why these “talking baby” ads have been extraordinary in breaking through the clutter (i. C. and Allowance B. 40 . E*Trades “AIDA” model stands for: A. AIDing Accounts C. Answer: D. ease of use. The chapter emphasizes the importance of measuring advertising effectiveness and the return on advertising investment. sports celebrities. Accounts. None of the above Answer: C. 3. the video does compare the cost of the commercials to air during the Superbowl vs. it is reasonable to assume given E*Trade’s decade-long run of Superbowl ads that they have associated increased sales and profits with their Superbowl ads. fireworks. D. etc. B. Interest. online furniture swapping among consumers.represented the creative concept to bring the message strategy to life in a distinctive and memorable way. 3. D. Quiz 1.” In terms of communication effects. E*Trade provides: A. E*Trade’s “talking baby” commercials effectively communicated its: A. B. the risk assumed on ROI (Return On Investment). Diversification. Additionally. Investments.” with “tens of thousands” of new consumers checking out their Web site. the video mentioned that E*Trade’s commercials generated tremendous buzz and “water cooler chatter. 2. Answer: B. Explanation: 4. Awareness. a talking baby. Explanation: The goal for their model is to engage the consumers in their brand by way of great advertising. outdoor outfitter products. the “talking baby” ads are some of the most viewed videos on YouTube. Even though no sales or profit statistics were mentioned in the video. do-it-yourself online investing. E*Trades most popular commercials involve: A. What evidence is presented in the video that E*Trade’s Superbowl commercials have been effective for the company? The chapter states that “advertisers should regularly evaluate two types of advertising results: the communication effects and the sales and profit effects. C. straightforward question designed to assess whether or not students paid attention to the video (instead of daydreaming). and Action D. online shopping for shoes. As highlighted in the video. Desire. In terms of sales and profit effects. horses. Explanation: This is a simple. handbags. C. D. Neither A. 5. not effective enough to pull consumers in. & B. C. Answer: C. located in NYC. Explanation: This set of commercials are among the most viewed ads on YouTube.B. D. its Web site. 41 . on the first floor of its corporate headquarters. nor B. The video mentions that E*Trade’s storefront is: A. Explanation: E*Trade’s mobile platform on its Web site allows consumers to take control over their portfolios. ability to save consumers money. B. Answer: A. Both A. Identify and explain the six major sales force management steps. Discuss the role of a company’s salespeople in creating value for customers and building customer relationships. The results of these changes included negotiating more consumer interruptions throughout grocery stores and increased sales and in-store brand promotions. Explain how sales promotion campaigns are developed and implemented. 2. Discussion Questions 1. supply chain. 3. Video Title: Nestle Waters Link: http://media. sales execution. resulting in more sales and better in-store promotions Learning Objectives: 1.mov&caption=bp/bp_mylabs /akamai/2012/MKTG/xml/Nestle_Web__Complete. Does one have to be “bull-headed” to succeed in this type of situation? Is this a “hard-sell” situation? What “give-and-take” gestures would be appropriate? 2. making their sales team a much more cohesive force. Poland Spring. Would you be up to this type of challenge? Students will generate many different responses to this question. and whole organization.php? title=Nestle&clip=pandc/bp/2012/MKTG/Nestle_Web__Complete.pearsoncmg. Students should be encouraged to discuss what types of personality traits are necessary in such negotiations. what’s your guess as to how Nestle Waters structures their sales force? 42 . Synopsis Nestle Waters is a bottled water producer of such brands as Perrier. and Nestle Pure Life. a good pre-discussion exercise of sales force management would be to have students jot down their thoughts about a possible career as a sales force rep. a bottled water producer. The role of the Nestle Waters’ sales force in the video seems focused on heavy and intense negotiations with grocery store managers for shelf space and consumer promotions around the store. They may exhibit different desires for such positions based on the industry for which one is a sales force rep.xml Classroom Application: After watching the video. many are interested in being a pharmaceutical sales representative (particularly because of how lucrative it can be as a career!). centralized their sales force. Deer Park. The company’s reaction was to centralize its sales force and align its marketing. For example. Bottled water sales started to slow down as the economic recession started in 2008 and backlash from consumer environmentalist groups increased.Chapter 16: Personal Selling and Sales Promotion Topic: Nestle Waters. while many students do not actively voice their desire to sell soap. Given the information supplied in the video.adb.com/ph/bp/bp_mylabs/akamai/template/video720x480. The chapter lists three formal sales force structures: territorial-based. product location/shelf space D. Explanation: This is a simple. Nestle Waters manufactures: A. C. B. What was the nature of the backlash against bottled water mentioned in the video? A. Explanation: Competition for shelf space between bottled water brands is apparently fierce! 4. Nestle Waters is one product in a line of products provided by its parent company. water filtration systems. it is also likely that it might be a part of a broader product sales force structure or a customer sales force structure (or a combination of the two). Poland Spring. Quiz 1. D. The most likely choice is the territorial sales force structure: from the information in the video. swimming pools. store employees B. The week leading up to the Superbowl is exciting for grocery store brands of food. Explanation: Their Perrier brand really started the bottled water craze that we see today. Do you enjoy such displays? Do they influence you to consider and/or purchase the brand? Students will voice various opinions to this question. C. However. 3. Answer: D. Nestle. The video focuses on the challenge for sales reps to negotiate which of the following with store managers? A. chocolate. All of the above Answer: D. B. Deer Park. sweatshop manufacturing 43 . environmental footprint B. and customer-based. as many are planning their snacks and parties for the big game. D. price Answer: C. product-based. Nestle Waters sells only one product line to one industry with customers in many locations. Nestle Waters provides: A. 3. The video shows large point-of-purchase (POP) promotion displays associated with the Superbowl in grocery stores. Perrier. store customers C. therefore. bottled water. straightforward question designed to assess whether or not students paid attention to the video (instead of daydreaming). 2. 5. product placement around the store. None of the above Answer: B. Explanation: Consumer environmentalist groups started to promote tap water around the same time when the economic recession hit in 2008. D. sales reps putting the “hard-sell” on grocery store customers. deceptive advertising Answer: A.C. Explanation: Centralizing the sales force directly resulted in negotiating more consumer interruptions for the product in the stores. The term “consumer interruptions” mentioned in the video refers to: A. greedy CEOs D. C. B. 44 . customer complaints. Direct retailer Zappos. easy. Discuss the benefits of Zappos as a direct marketing retailer for both the buyer and the seller. handbags. 2.7 million shoes. including: • For buyers. and private. direct marketing is convenient.xml Classroom Application: Zappos’ whole culture and philosophy hinge on two-way communication between employees and customers. clothing items.php? title=Zappos %20ch11&clip=pandc/bp/2011/armstrong/Zappos_ch11.com/ph/bp/bp_mylabs/akamai/template/video640x480. Define direct marketing and discuss its benefits to customers and companies.Chapter 17: Direct and Online Marketing: Building Direct Customer Relationships Topic: Zappos. Synopsis Zappos is an online retailer of mostly fashion products (shoes. A key consequence of its culture is its extraordinary customer service provided to its customers. The company prides itself on a two-way communication process between its employees and its customers to build trust and comfortable transactions. handbags. Its ten core values empowers its customer service representatives to provide extraordinary customer service. apparel).com stocks more than 2. Video Title: Zappos (Direct and Online Marketing) Link: http://media. • Direct marketers can offer an almost unlimited selection to customers almost anywhere in the world. Encourage students to call up Zappos’ customer service representative to act as mystery shoppers (if not actual shoppers!) to see if this culture and philosophy shines through in the interactions between students and customer service representatives.300 brands. and customers don’t have to trek to and through stores to find products. Explain how companies have responded to the Internet and other powerful new technologies with online marketing strategies. Direct marketers never close their doors.mov&caption=bp/bp_mylabs/akamai/20 11/armstrong/xml/Zappos_ch11. Discussion Questions 1. an online marketing retailer. The chapter provides a list of various benefits for both parties that are directly exhibited in the video. Encourage students to test Zappos’ willingness to engage in lengthy conversations with its customers. focuses on two-way communication between its employees and its customers Learning Objectives: 1. 45 . Students should present their findings to the class. and accessories from more than 1.pearsoncmg. humble Answer: D. clicks” marketing discussion. For sellers. 3. B. and consumer-to-business (C-to-B)? The obvious relevant domain is B-to-C: businesses selling goods and services online to final consumers. and questions. Explanation: This is a simple. consumer-to-consumer (C-to-C). This is the classic “bricks vs. Explanation: “Be humble” is one of the ten core values of Zappos listed in the video. Zappos does not have a brick-and-mortar component to its company—ask students if this will eventually put them at a disadvantage compared to “click and mortar” companies. Which of the following four major online marketing domains can you apply to Zappos: Business-to-consumer (B-to-C). 3. Zappos: 46 . driven D. products. business-to-business (B-to-B). to the extent that the customer is given more power in the eyes of the company. 2. a diet and food-delivery service. Zappos certainly values their customers’ opinions. direct marketing is immediate and interactive: Buyers can interact with sellers by phone or on the seller’s Web site to create exactly the configuration of information. grocery stores. extroverted C. Quiz 1. 2. Zappos likes to specifically hire ______________ employees. Finally.• • • Finally. as this company is an e-retailer. Direct marketing gives sellers access to buyers that they could not reach through other channels. the chapter labels brick and mortar retailers that have now embraced the online sales channels as “click and mortar” companies. straightforward question designed to assess whether or not students paid attention to the video (instead of daydreaming). or services they desire and then order them on the spot. However. The C-to-C domain does not seem to apply to Zappos. and their Web site solicits as such from them. C. suggestions. The chapter provides the label of “click-only companies” for e-retailers such as Zappos. direct marketing is a powerful tool for building customer relationships. Zappos provides: A. Answer: C. Do you enjoy the process of clicking your mouse to purchase your fashion items? Students will have various opinions to this question. confident B. online shopping. The video does not highlight any B-to-B interaction. satellite radio service. the C-to-B domain applies. A. but that is not to say that Zappos does not or cannot exist in this domain. D. Deliver wow through service B. Answer: B. lets its customer service reps talk as long as a customer wants to talk. 47 . All of the above Answer: D. B. D. C. Do more with less D. Which of the following is a core value of Zappos? A. B. None of the above Answer: C. extensive customer service experience. 5. Explanation: They don’t have to untrain employees bad customer service habits if they have no such experience. Zappos likes to hire applicants with: A. a moderate amount of customer service experience. focuses on selling a product during the customer service experience. Build open and honest relationships with communication C. Explanation: Zappos feels that two-way communication between its employees and customers is the best way to build its base. C. D.A. 4. no customer service experience. markets itself every chance it gets. great recommendations from previous employers. Explanation: The video lists 10 different core values for Zappos. ” 48 . What design elements are highlighted in the video that create an experience in which customers want to hang out and stay awhile? The design space of the bank resembles less of a traditional bank and more of a nice hotel lobby with a large space outfitted with comfortable chairs. and stay awhile in the beautiful space. Discuss the need to understand competitors as well as customers through competitor analysis. You certainly don’t expect to linger.pearsoncmg. and surf the internet at a traditional bank! UMPQUA Bank believes that their competitive advantage in design leads to “a different kind of customer experience. Discussion Questions 1. a restaurant with good service.” Their business model focuses on differentiating the design of the bank “store. Learning Objectives: 1. The video implies that UMPQUA Bank uses its design to create a competitive advantage in the marketplace. Explain the fundamentals of competitive marketing strategies based on creating value for customers. and WiFi. drink coffee. 2. The company strives to replicate the experience of a nice hotel. surf the Web.Chapter 18: Creating Competitive Advantage Topic: UMPQUA Bank creates “a different kind of customer experience” with its nontraditional banking design elements. WiFi. Video Title: Umpqua Bank Link: http://media.” Do all companies that provide such unique experiences succeed in creating competitive advantage? Synopsis UMPQUA Bank strives to be “the world’s greatest bank” by providing “a different kind of design” and “a different kind of customer experience. and a fine retailer. UMPQUA Bank deviates from the traditional banking industry model. Students can be encouraged to apply this same business model to other traditional service industries in order to create “a different kind of customer experience. As such.com/ph/bp/bp_akamai/kotler/UMPQUA_Bank. coffee stations. and comfortable chairs).html Classroom Application: UMPQUA certainly seems like a different and unique banking experience with its nontraditional banking design elements (coffee.” with large spaces for customers to hang out. enjoy coffee. • Product leadership: The company provides superior value by offering a continuous stream of leading-edge products or services. While elements in the video may point to a number of different strategies above. UMPQUA provides: A. Which of these strategies do you feel characterizes UMPQUA’s approach? Students may have various opinions about which of the seven strategies apply to UMPQUA. 49 . it is evident that the following strategies do NOT apply to UMPQUA’s approach: overall cost leadership and middle-of-the-road. • Middle-of-the-road: Try to be good on all strategic counts (but end up being not very good at anything). The chapter provides the following information for the seven strategies: • Overall cost leadership: Here the company works hard to achieve the lowest production and distribution costs. • Focus: Here the company focuses its effort on serving a few market segments well rather than going after the whole market. 3.2. • Customer intimacy: The company provides superior value by precisely segmenting its markets and tailoring its products or services to exactly match the needs of targeted customers. However. in the video. • Differentiation: Here the company concentrates on creating a highly differentiated product line and marketing program so that it comes across as the class leader in the industry. The chapter outlines various competitive positioning strategies (seven strategies in all) that companies can follow.” UMPQUA obviously derived its current strategy by analyzing both what customers want in a banking experience and its competitor’s deficiencies in providing that experience. online investing and trading. soda. it is not totally clear whether UMPQUA’s design is more about what other banks don’t provide and less about what their customers want—notice that all of the following slogans/taglines highlight differentiation from competitors: • “Welcome to the world’s greatest bank” • “A different kind of service” • “A different kind of customer experience” • “The revolution is coming!” Quiz 1. Would you characterize UMPQUA Bank as a market-centered company? Discuss. It specializes in satisfying unique customer needs through a close relationship with and intimate knowledge of the customer. • Operational excellence: The company provides superior value by leading its industry in price and convenience. The chapter states that such companies pay “balanced attention to both customers and competitors. B. UMPQUA’s business model is to: A. C. unique financial advising. 5. turn the industry on its head. Getting you the answers you need fast. In the video. B. Banking made simple. Answer: B. “A different kind of design” in the video is represented by the bank’s: A. C. 2. ride on the coattails of bigger banks. Welcome to the world’s greatest bank. think local. Explanation: This is a simple.C. Answer: D. guitars. Answer: A. straightforward question designed to assess whether or not students paid attention to the video (instead of daydreaming). a fine retailer D. banking. Which of the following slogan’s highlights UMPQUA’s vision? A. go global. D. Explanation: The company strives to provide “a different kind of service” in the banking industry. Explanation: UMPQUA Bank’s goal is for people to hang out and stay awhile inside their “store. UMPQUA’s Bank is compared to which of the following? A. Making your money work for you. stock portfolio selection. D. a nice hotel B. C. B. All of the above Answer: D. D. B. Explanation: The company mentioned that they wanted to give people a reason to drive by other banks just to get to their location. blend into the banking marketplace.” 50 . public relations. a restaurant with good service C. 4. beautiful space. Answer: C. D. Explanation: 3. com&clip=pandc/bp/2011/armstrong/Monster.” Explain how Monster went about attempting to understand the cultural nuances of the Chinese markets. a global online career advancement service. China is a collection of smaller localized markets.pearsoncmg. global companies are now looking to expand into China. An interesting exercise would be for students to brainstorm or speculate about what American products would succeed vs.Chapter 19: The Global Marketplace Topic: Monster. and such an acquisition allowed Monster to better understand how to integrate what they did well into the local markets’ infrastructure. as the market potential there is enormous. The video mentioned the acquisition of “China HR” to adapt their product in the Chinese market. Synopsis Monster is a US-based company that now serves around 60 countries worldwide. Discuss how the international trade system and the economic.com/ph/bp/bp_mylabs/akamai/template/video640x480. The chapter states that “companies that understand cultural nuances can use them to their advantage when positioning products and preparing campaigns internationally.xml Classroom Application: As highlighted in the video. 51 . so encourage students to research the presence of such products in China. is now heavily focused on developing business in China Learning Objectives: 1. Discussion Questions 1. fail in local Chinese markets—it’s very likely that the products they talk about are successful in China already. Its current focus is to succeed in China. so Monster’s plan is to adapt its services in such a way as to conform and respect each local Chinese market’s customs and traditions.mov&caption=bp/bp_mylabs/akam ai/2011/armstrong/xml/Monster. which now represents the largest scale of market with the largest potential future growth. and cultural environments affect a company’s international marketing decisions. It is an online career advancement service that connects employers with today’s talented job seekers. political-legal. China HR had expertise in this market. Video Title: Monster Link: http://media.php? title=Monster. Monster also added some new talent in China who understand the marketing perspective nuances at a local market level. the internet Answer: D. the New York Times D. The video highlights the respect Monster has treated its development into local Chinese markets. 2. Explanation: The internet at the time of Monster’s early beginnings revolutionized the job placement and advancement industry. B. integrated marketing communications B. In time and with slow exposure. Many Chinese job seekers still use a transactional model—they desire a job search resource that just helps them find the right job. banking. Monster: 52 . straightforward question designed to assess whether or not students paid attention to the video (instead of daydreaming). Quiz 1. letting these markets on their own terms be successful while bringing the Monster brand to life in a consistent way. it is possible that the Chinese population may exhibit increasing interest in Monster’s extensive career management tools. Explanation: This is a simple. Explain the surprise Monster encountered with respect to how job seekers in local Chinese markets searched for jobs. USA Today C. there are retail outlets that have jobs on display in a sort of self-serve. Therefore. D. In the video. Monster recognizes that they just can’t take their US product and export it into the local Chinese markets—this would likely be interpreted by the Chinese population as culturally disrespectful. 3. Monster provides: A. the phrase “It’s the newspaper that anyone can read” is a reference to the early power of: A. There are often local market custom surprises for a global company that affect how a product will be accepted in a foreign market. Students will have different opinions. online career advancement development. many Chinese job seekers are not really looking for the extensive level of career management tools that Monster provides and its US customers expect. The video explains that when it comes to a job search in local Chinese markets. Answer: A. soda.2. a diet and food-delivery service. “Americanizing” foreign countries around the world is mentioned in the chapter to explain the impact of marketing strategies on global cultures. C. walk-on-by way. 3. Do you think Monster will be just another American country that facilitates the “Americanization” of China? Discuss. but it is also possible that their cultural traditions and perspectives may never fully accept Monster’s services that Americans come to expect and desire. Explanation: Going global was always the company’s goal. 5. A. The video highlights the need to _____________ if you want to be a “global player.” A. be in China C. 4. is really just a virtual bulletin board to this day. invest in customer relationship management Answer: B. only provides services for job seekers. works with employers to communicate their brand to job seekers. France Answer: A. Answer: C. Explanation: Monster connects companies with today’s talent. D. Canada B. The first country that Monster expanded into was ____________. invest in cutting edge technology B. 53 . Mexico C. B. and now the company is in around 60 countries worldwide. C. England D. have a strong Web site design D. does not really benchmark job seekers’ abilities and interests. as people work everywhere. Explanation: China’s immense scale of market and potentially quick growth renders it as the most powerful potential market in the world to global companies.A. and water consumption. Fittingly.Chapter 20: Marketing Ethics and Social Responsibility Topic: Land Rover is committed to environmentally friendly and sustainable business practices to serve the needs of its global consumers. Explain the role of ethics in marketing. To confirm and verify the take-home messages presented by Land Rover’s executives in the video. waste. 2. Learning Objectives: 1. Its vehicles were originally invented as a piece of agricultural equipment that could be driven on the land.html Classroom Application: “It’s easy ‘talk the talk.com/ph/bp/bp_akamai/kotler/Land_Rover. 3. use your preferred search engine to research credible and objective news articles/blogs that cover Land Rover’s practices. go on the internet to track Land Rover’s efforts and actions to follow an environmentally responsible and sustainable business model. Video Title: Land Rover Link: http://media.’ but can you ‘walk the walk?’” Such a line fits the current communications and practices of the global marketplace in relation to each company’s position on sustainable marketing. the company invests in sustainable and environmental technology projects around the world. Are you impressed with Land Rover’s efforts regarding environmental responsibility and sustainable business practices? The video outlines Land Rover’s many efforts in these regards.pearsoncmg. but certainly students may still be critical and cautious about the necessity of producing 4X4 luxury SUVs! 54 . Synopsis Land Rover attributes it great success to its environmentally responsible and sustainable business model and practices. Land Rover considers sustainability to be its biggest challenge it faces as a company. Define consumerism and environmentalism and explain how they affect marketing strategies. In addition to looking over their Web site. which is considered to be the essence of the company. Not only does Land Rover make every effort to reduce its carbon dioxide emissions. Define sustainable marketing and discuss its importance. Discussion Questions 1. 3. Speed. sustainability C. 2. motor vehicles. increasing competition saturating the marketplace Answer: B. assist in construction of buildings. According to Colin Green in the video. which of the following is the biggest challenge Land Rover faces as a company? A. Land Rover’s vehicles were initially developed to: A. In the video. D. traditional advertising efforts to break through the clutter B. flashy yet economical Answer: C. speed. this is the main take-home message in the chapter. customer relationship management (CRM) D. construction equipment. Explanation: Land Rover vehicles were first created over 60 years ago. 3. Explanation: This would be considered to be Land Rover’s unique value proposition. This will undoubtedly produce a very lively discussion! Quiz 1. but some students may be a bit cynical about this perspective. D. a piece of agricultural equipment that could be driven on the land D. C. Do you agree with this? Why or why not? Certainly. running shoes. Considering your response in Question #1 above. transport large amounts of people. Answer: A. helicopters. What is mentioned in the video as the essence of Land Rover? A. 4. assist in the working of the land. a luxury ride C. 55 . Explanation: This is a simple. and more speed! B. B. Land Rover provides: A.2. C. B. straightforward question designed to assess whether or not students paid attention to the video (instead of daydreaming). how interested do you think environmentally conscientious consumers are in buying Land Rover vehicles? Conscientious consumers might see Land Rover’s utility in a bit more favorable light considering their sustainability efforts and environmentally responsible mission. Julian Whitehead states that businesses need to be concerned with the environment if they want to stay in business. eclipse the record for speed. Answer: D. Explanation: Together with Jaguar. 5. C. England’s weather satellite projection efforts. Land Rover’s “climate care fund” mentioned in the video supports: A.Explanation: The company strives to build its product more efficiently and to explicitly communicate all its sustainability business practices to consumers. Land Rover has invested 700 million pounds on environmental technology. 56 . D. Answer: A. tropical vacations donated to underprivileged families. B. endangered animal species in desert climates. sustainable technology projects around the world.