Aooooo

Tns rcdesisnetJ Llvcs' four-pack package. ACTIVITY-BASED COST ACCOUNTING Todays companies iry lo adapt their oilers and terms to different buyers. A manufacturer, for example, will negotiate different terms with different retail ehains. One re tinier may want daily delivery (to keep inventory lower) while anntiier tnav accept twice-a-week delivery in order to get a lower price. The manufacturer's costs will differ with each chain, and so will its profits, 'lo estimate the real profitability -of...

Bmv lMlMchaetipli Hiewd WbHd Brotan 1 inlt

UViss, Tii Ik f boui to lie. inerii mi Demogmiihics (ScptemiiL'r 23-36. 32. Andrcw rttm. VV1II ili SiicU HnyltT RHSiness 2.0, May 003, H i. I 3U Siolnn l'ltCKHil .mil L)riliik(i Slitroii ii' luyitUi i Gen Y Guirible Nm St itin I ilitf nSurv Is E ij iv ISin up Eorfj' Siwn As Y itfh Shun > atl's * jflttry. Watt Sirva Jannur , July 3 ), v ii ki'ii i Xn jriitolt, H p tu Be wji in . VnuaduPKflt. f tiober lt 21 M 2r pp. 50-55 SuiNih Allis iii iih (.ailtis Tejada.Mr., Mi> Mei'l Mr....

Experiential marketing

Columbia University's Bemd Schtniu nas developed ihe concept of Customer Experience Management iCEI.lt the process ol strategically managing a customer's entire experience witti a product or contpany. According to Sctimitt, brands can hetp to create live diiierent types of experiences 11 Sense, (3) feel, (3J Tti ink, (A) flcl. 5) Relate. In each rase, Sch mitt d sting Dishes between hard-wired and acquired experiential response levels. He mainiains thai...

Global Markets

With faster communication, transportation, and financial flows, the world is rapidly shrinking. Products developed in one country Gucci purses, Mont Blanc pens, McDonald's hamburgers, Japanese sushi, Chanel suits, German BMWs are finding enthusiastic acceptance in others, A German businessman may wear an Armani suit to meet an English friend at a Japanese restaurant, who later returns home to drink Russian vodka and watch an American soap on TV, Consider the international success of Red Bull....

General Electric Company

Rather than striving for larger market share. GE'spn'.vsr systems unit focused oil winning (i larger percentage of eat h customer's expenditures. The unit asked ils top 100 customers whal services were most critical to them and li nv GE could provide or improve them. Tlie answers prompted Ifie company to cut its response lima for replacing eld or damaged parts irom 12 weeks to 6. It began advising customers en the nuances ol dq ng business in the diverse environments of Europe and Asia and...

Flving Fish Brewing Co

Flelcic he staled his company, founder Gene Muller senl Pentagram Design Company a case ol Deer Dottles with blank labels and a note that said. litis space available tor good design. He told Pentagram partner Michael Beirut lhat he wanted sgmeihir.g breed apart from the usual mguntnin-range melif rhemes that everyone else seemed to be doing, Tne Peniagram design Muller lited rpost and picked tor his start-up vras a fish -hone propeller plane. Ftying Fisti Brewing Company was bom, Not only has...

How To Derive Fresh Consumer Insights To

In discovering Mew v. nts ol ftillerenlotion. Ian C. MacM Ian and Rita QunUher McGralh ar ita mat ill companies examina customers' inline experience with a product or service (he consumption Chain Ihgy can uncover opportunities > 0 position their offerings in ways that neither they nor their compel ittvrs Ihought possible MacMillan and McGralh lisl 3 set ol questions markelers can use to help item identify rter.v, ccnsinuer-based (Minis 01 differentiation. Kon-v do people become aware oi...

Designing And Managing Services

As companies find it harder and harder to differentiate their physical products, they turn to service differentiation. Many books point out the significant profitability of companies that manage to deliver superior service,1 Companies seek to develop a reputation for superior performance in on-time delivery, better and faster answering of inquiries, and quicker resolution of complaints. Service becomes the mantra. Perhaps the most dramatic example of how the growth of services has changed the...

1

Joseph Wcbct''lPtJbllcTVfc Identity Crista,h Si'pU'iiilji'r 30.2M'l, pp. fiS-Wfc lue Mim. PBS Tbkcsftct of Commercial Peer Think Voting, Witlt Street Joumrd. March 27. 2 02, pp. 01. B4. 2. KortneyStringei, Hard Lesson Learned Premium and No-Frills Donl Min. Wall Street Journal. rtoVeniber3,2003, p> .-B 1. J, Al Ries and Jack Trout, RositHfflittg Hn- Battiefor YourMdtoffNcw York Vitamer Boots, 1002). 4. Alice M,Tybotiian,d Brian Stofiithai, Brand Positioning in Kfrfbggrau Mnrkcfiiig. edited...

Analyzing Business Markets

Business organizations do not only sell they also buy vast quantities of raw materials, manufactured components, plant and equipment, supplies, and business services- There are over 13 million buying organizations in the United States alone. To create and capture value, sellers need to understand these organizations' needs, resources, policies, and buying procedures, German software company SAP has become a leading seller to fhti business market by specialising in software to automate business...

Disney Channel

After being considered an unprovable slepchiltl el (tie Disney empire, ine Disney Channel hgs become fie coiri' pane's cash cow solely from its ability to reach tiie undersefved tween marker tie 29 million to 14-year-olds and Leverage its success throuQtt Disney olt.er divisions In 2000, on the loofoout for hip programming lliat wotfd appeal lo berth tweeng and their parenls, the Disney Channel casi < 1 then-ob-score 12-year-oW in the title role of a new weekly series. Lizzie McGttire. Ibis...

Hong Kcdng

F ng Kong 'a trademark, gry.'izdn rJrnc on wilh Itie laqliru Asia's wtjdd ci y. f ng Kong 'a trademark, gry.'izdn rJrnc on wilh Itie laqliru Asia's wtjdd ci y. decision making or influence other attributes in the process C'Ef it is French, it must be styl-Ish'J. Tile rbkte fact that a brand is perceived as being successful nn a global stage may lend credibility and respect.Several studies have found die following '1-5 People are often ethnocentric and favorably predisposed to their own...

Delivering Value

Total promotion budget has weakened iftcir brand equity. The endless stream of brand extensions eh id line extensions has blurred brand identity and led to a confusing amount of product proliferation. Manufacturers have reacted to the private label threat. In partt by spending substantial amounts of money on consumer-directed advertising and promotion to maintain strong brand preference. The prices have to be somewhat higher to cover the higher promotion cost- At the same time, mass...

Competitor Centered Companies

A coHipctitoi-CL'iih'ivilcanipaitysais its course as follows SilLlEltiOtl n Cpitipet itor W is ing all dli I lo c r u sh us u i M ia m i. Competitor X is improving its distribution coverage in Houston and hurting Bur sales. Competitor Y has cut its price in Denver, eh id we lost three share points, d Competitor Z has introduced a new service feature in New Orleans, arid tvcaie losing sales. m Wc will withdraw from the Miami market because we cannm afford to fight Hiis buttle. d We will increase...

Defining Brand Equity

II rami equity i* the added value endowed tri products and services. This value may be reflected in how consumers think, feel, and act with respect to the brand, as well as the prices., market sha re, and profitability that the brand commands for the firm. Brand cquiiji is an important intangible asset that has psychological and Financial value to the firm. Marketers and researchers use various perspectives to study brand equity.11 Customer-based approaches view brand equliy from the...

Celebrity Em Dors Eme Nts As A Strategy

A weir-Chosen celebrity can dra'.'f attention to a product Or brand, as when Sarah. Caches of better known as Fengie showed' how st'ic slimmed down thanks to Weigh* Watetisii or. (he tslehrtyis mystique Can tracer to Ihe branrl fell Cosby enlenains a group trf feds vjbto eating a bowl ol Jau-G. The choice ol the celebrity is criiical. The celebrity should have high recognition, high positive affiecl. aurl h gh appropriateness lo ihe product. Britney Spears has high recognition but negative...

General Electric

GE Jan amazingly large company made up of 11 major divisions thaiofferee n areas as diverse as home aDpliances, jet engines, security systems, wind turbines, ana financial services The company is so lar s (2003 revenues 01S13J b 11 i)) thai even if each of its. 11 business uniis were ranked separably. all would appear en the Fortune 5(J ) list. II GE were its own country, it would be one el lie M largest and waild rank ahead o Finland, Israel, and Ireland, GE became the acknowledged pioneer in...

Clairol Herbal Essences

Yes, Yes, Vss. actresses exclaim as tiiey simulate sexual ecstasy while washing their hair ana enioying wttal the lap Fine du bs. 'A Truly (1 rcjan ir Eaper ie nee. Same omen find the ad's coy double eritend re deniEam ng. The Advertising Women Of New York Club even gaws the ad The Grand Ugly Avrard However. Proclor S Gamble, which acquired Clairol m 2M)2, credits the ad with tiring ng Uie near-dead Brand Hack to lile. Heibal Essences became one ol the fastest-growing brands in the wortd,...

University Games

Bnh Moog, ires'denl and founder of University GairiEs, says his company's international sales strategy feJies heavily on third-party distributors and has a fair degree of itexibilily. identify the international markets we Want to penetrate, says Moog, 'and Ihen form a business venture vrilh a local tJisiriljufor that will give us a large degree of control, (n Australia, we expect to run a print if 5,000 beard games, These we will manufacture in he United Slates. II we neach a run of 25.0WJ...

Marketing Memo

What women want FROM CUSTOMER SERVICE 1. Start at the end speed up the cliecKout. Don't tempt a .voflian to walk out ty wasting tier to. Whole foods guaran-tecs a maximum iourrrniuie wnil at ils supermarket. National Ca' Rental has eliminated waiting in line hy allow. ng customers to reserve Iheir vehicles online. So think a minu e Whai are yon doing for your big order cusi nos while the 10 item dab-tilers whisk right Through Ihe tumslile 3. Assign patrolling customer-care watchdogs on the...

Chapter Is

Television Ads Television is generally acknowledged i* die most powerful advertising medium a nil reaches a hroad Spectrum of ennsumers. The wide reach translates to low cost per exposure. From a brand-building perspective, TV adi verging hits twq particularly iniportaiu strengths 3rtrsl, it can he an effective means of vividly demonstrating product attributes and persuasively explaining their corresponding consumer benefits. Sccond, TV advertising carl he a compelling nie ans fur dram Et tic...

Identifying Market Segments And Targets Chapter 3 241

ThflMod 1 Her-, - i '.- s ii firsl bo mass-market automobiles.- Rmj mass-produced Ei assembly line, mass-disirijuieo ttitgugli testers. a d mass-prormyeitCHie prodjci for ail buyers < a ii b Uiese. i lowever, even a segment Is partly a fiction, in ihat not everyone wants exactly the same tiling Anderson and Natus have urged marketers to present flexible market offerings to all members of a segment.5 A Hrsilile market offering consists of two parts a naked solution contai ni n ihe product and...

Developing Effective Communications

Figure L 7.4 shows (he eight sleps in developing effective communications. U'e begin with the basicsr identifying the target audience, determining the objectives, designing the communications, selecting the channels, and establishing the budget, ' he process must start with a clear target audience In mind potential buyers of the company's ptoducts, curie ne users, deciders, or Influence individuals, groups, particular publics, or the general puhEic. The target audience is a critical influence...

Institutional and Government Markets

Out discussion has conccntrtlcd largely on (he buying behavior of profit-seeking companies. Much tit' what we Ivave said also applies to tbe buying practices of institutional and govern mem organizations. However, we warn to high fight certain special features pf these markets. The Institutional market consisisof schools, hospitals, nursing homes, prisons, and other institution* thai hftust provide goods and services to people in their care. Many of these organizations are characterized by low...

Levels of Market Segmentation

The sinning point for discussing segmentation is mass marketing. In mass marketing, the Seller engages in the mass production, mass distribution, and mass promotion of one product for aII buyers. I lenry Jrord epitomized ibis strategy when lie offered the Model-TForct In one color, black. Coca-Cola also practiced mass marketing when it sold only one kind of Coke in a fj.fi-ounce ho)tie, The argument for mass marketing is that it creates the largest potential market, which leads to the lowest...

Organizational Arrangements

Once ti company litis carefully segmented the market, chosen its target customers, identified their needs, and determined its market positioning, it is better able to develop new products. Many companies today use customer-driven engineering to design new products. Customer-driven engineering attaches high Importance to incorporating customer preferences In the final design. New-product development requires senior management to define business domains, product categories, and specific criteria....

The Rature of Services

The Bureau of Labor Statistics reports thai the service-producing sector will continue to be (he dominant employment generator in the economy, adding 20.5 million jobs by 2010. Employment in the service -p rod ne I ug sector is expected to increase by percent over the 20CJQ-2UIU period, whereas manufacturing employment is expected to increase by only 3 percent. In fact, manufacturing's share of total jobs is expected to decline from 13 percent In 2000 toll percent in 20 to.-1 These nil in hers...

The Scope oi Marketing

To prepare to be a marketer, you need lo understand tvhat marketing is, how ii works, what is marketed, and who does the marketing. Marketing deals with identifying and meeting human and soqla.1 needs. One of the shortest definitions of marketing is meeting needs profitably. When elJay recognized that people ti PART 1 NDER& 1 iMDINtj VARK.- 1 NG MANAGEMENT f. Htjw can wc S mi h J ctioose Ibe ngh market segmentis 9. Htr.v can we keiip our cu lcifn rs loyal for tangcr f. Htjw can wc S mi h J...

Ill Analyzing Competitors

On eta company identifies its primary competitors, it must ascertain their strategics. objec lives. sircngihs, and weaknesses. A group of Tiritis fallowing the same strategy in it given target market is called a strategic group,M Suppose a company wants to enter the major appliance Industry. What is its strategic group It develops the chart sbnwn in Figure 11.3 and discovers four strategic groups based on product quality and level of vertical integration. Group A has one competitor (Maytag)...

Ill Building Brand Equity

Marketers build brand equity by creating the right brand knowledge structures with the right consumers. This process depends on all brand-related contacts whether marketer-Initiated or not. From a marketing management perspective, however, there are three main sels of brand cfjaiiy clriivrs 1. The initial f tiiicci far the brand elements nr identifies making up he brand (e.g., brand names, URLs, logos, symbols, characters, spokcapeOple, slogans, jingles, packages, and signage). Ok Spicc uses...

Ill Internal Records and Marketing Intelligence

Marketing managers rely on internal reports on orders, sales, prices, casts, inventory levels, receivables, payables, find so on, analyzing tliis information, they can spot important opportunities and problems. Thi heart of tile iniertsal records system is the order-m-payment cycle. Sales repr sent mes* dealers, and customers send orders to the firm. The sales department prepares invoices and transmits copies to various departments. Out-of-stock items are back ordered, Shi * Items are...

Ill Managing Product Support Services

Thus far we have focused on service industries. Xu less injporlant re product-based industries that must provide a service bundle, Manufacturers of equipment small appliances, office machines, tractors, mainframes, airplanes all have to provide pmrirui support services. Product sufjjHjri service is becoming a major bai(Le koiuid for competitive vantage. Chapter I2 described IhtM products could be augmented with key service differentiators ordering case, delivery, installation cgfetomer...

Image Credits

2 Courtesy of The Image Works 5 Courtesy of the Boston Beer Company. Samuel Adams Utopias > 5 a registered trademark of B6C Brands LLC. 7 Courtesy of ftaintr Stratmann for Lexus- 9 Courtesy U-S-Department of Transportation, This ad was created pro bono on behalf of the Ad Council's Drunk Driving Campaign, 12 Courtesy o CorbisV& ettmann 14 Courtesy of Shiseido Co Ltd, Tokyo, Japan. 23 Courtesy of the Avon Foundation. Courtesy of Volvo Cars of North America, LLC. 34 Courtesy of HGM, Hennes a...

Info

To create elective neient'an programs, markeling managers need to 2. Does retention vary by eliice. region, sales representative, or itleolify customer deletion patterns. Ttiis analysis snould Slart wiDi distributor inlernal records, sucrt as sales logs, pricing records, and customer 3i Wha1 s ,he benvefln retention rates and dianges m survey results. Tiie ne*t step is lo e Tend defection reseaicVi lo oui- prices side sources, stich as benchtnaikintf studies and statistics Irom flrade ,.,___,...

Initiating and Responding to Price Changes

Companies often face situations where they may need to cut or raise prices. In tiating Price Cuts Several circumslEtnces might lead a firm m cut prices. One is excess plant capacity The firm needs additional business and cannot generate it through increased sales cflott, product improvement, or other measures. H may resort to aggressive pricing, but in initiating a price cut, the company may iriggera price war. Companies sometimes initiate price cuts in a drive to dominate he market ffirough...

Intel

Processor was both a safe and technologically sound choice. Between tggo and 15KK3, Inid irvested ever S500 million in athiertising and pnomctional pro grams designed to build us brantf ajuity. By 1593. FitWic& l ViMJ estimaied the Intel Drand to be worth Si 7,8 billion. Intel contin es ils integrated campaigns to this day. For example, whan launch ng ils Centrino mobile platform. Intel began r lhTV adstttala red in 1he Lirided Slstes and 11 attief countries. Tfiese ads Incfttde 3hn Climated...

Introducing New Market Offerings

Companies need to grow their revenue over time by developing new products and expanding into new markets. Mew-product development shapes the company's future improved or replacement products will maintain or build sales. Some companies put product innovation at the forefront of all they do. 3M Company, one of the most innovative U.S. companies, puts tremendous emphasis on new products,1 3M mates more than 50,000 products, including sandpaper, adhesive*, optical films, and fiber-optic...

Ioblaw

Since I9S4. when, its President's Choree line of foods made its debul. it nas been difficult to say private la be Hilfiout LoDlaw and President's Choice coni ng instantly to mind. Toronto-based Lohlaw'g Uecadcnt Choco'ale Chip Cookie quickly became a Canadian leader and showed how innovative store brands could compete effectively with national brands by matching or eyen exceeding their quality. A imely toned brand strategy involving ils premium President's Clioce line and na-frills,...

Ionwec kg with customers

Eirong bwds and reiaticflsriips between firms depend 1 men perceived credibility. Corporate credibility refers to Ihe eitlent 10 which CuSlCHHtsrs believe mata linn can design and deliver prMkBds and services that satisfy their needs and wants. Capora-jeifediMlty relays to Die reputation that a 1.rm nas achieved in the marketplace and is the foundation 'or < 1 strong retalionslilp, It is difficult for a firm to dewlap shuny ties '.v.lii iin her ftnii unless it is seen as hglii1,' credibte....

It W

Illinois Tool Works (ITW) manufactures thousands of products, including rails, screws, ptas'ic six-pack holders for soda cans, bicycle helmets, backpacks, plastic Duckies for pet collars, resealattle food packages, and more, Since the late lftSOs. the company has made bel.veen 30 and 40 acquisitions each year, which added new products to the product line. ITW has more Uian 500 highly autonomous and decentralized business uni1 . When one division commentialises a now product, the product and...

J

PtrectjMirchnshtg. fineness buyers often buy directly bom manufacturers rather linn through Intermediaries, especially items that nrc technically complex or expensive (such els in ai nframes or drera t). The business buyer faccs many decisions In making n purchase. I he number of decisions depends un the buying situation complexity of the problem being solved, newness of the buying requirement, number of people involved, and lime required. I'atrit-k Hobinson and other s distinguish three types...

J A Paw And Indonesia

The Indonesi an government requested brds to bui d a cement factory near Jakarta. A U. S. firm matte a proposal lhal iof utlctl choosing this siie, es gnirr the cement lactoiy, friing the construction crsvjs. H3ssinfc. hg Hie materia and equipment, and tunning over (he f nishep factory lo the Indonesian government. A Japanese firm, in outlining its proposal. iratutled all of these services. p us liiring and traiaiiig ttie waiters to run the (acln y, exportiivt Ihe cement through ils liad ing...

Fart

Need, is consistent wiih other trends in the society, satisfies societal norms and values, and does nut exceed (echnoinglcal limits as ii develops,311 Erads are fashions thai come quickly into public view, are adopted with great zeal, peak early, and decline very last. Their acceptance cycle is short, and they tend to attract only a limited following of those who are searching for excitement or want to distinguish themselves from others. Fads do not survive because they do not normally satisfy...

Jamestown Container Co

Wfcal could tiE harrier lo diKerenliate than corrugated cardboard Yfel. Jamestown Container Company, the lead supplier ol corrugated prodocls for companies such as 3M, has formed strategic parttlSrSHipS iVtlh area manti-laclurefs to provide every part of we shipping system, It not only provides cores, but also otiers tape, shtink-map. and everything else needed either 10 display or to ship a customer s Imai product It's a (ttmbiteHon lot survival,* says the company's Chief Operating Officer....

Jetblue

Jel& lue Airways, founded in Mb1 ,' York m 1535,. siqmiitantly raised customer expectations of low-fate carriers With its hraad new Airbus jets, comly leather seals, live satellite TV, tree wireless Internet access, and a consumerfriendly policy of never bumping a passenger, it iias inspred lots of low-fare liiglvservice copiycats. Like pioneer Southwest, where JetBlue's CEO David tJeeleman tried out his wings, JeiBlue finds employees wlKr know hijW to keep customers coring back tie asks...

Joie De Vivre

Joie de Viwe Hospilality Inc., operates a chain of bouJique hotels, restaurants. and resorts in the San Francisco area. Each property's unique d cor, 'quirky amenilies, and thematic style are often loosely based on popular mag-aiines. For example, itie Motel del Sol a cenverled moiel hearing a yellow exlenpr and surrounded by palm trees wrapped wilh festive lights -is described as kind ot MariOS & fWitiUvkig meets Islands magazine. Two Silicon valley h ters offer guests high-speed Internet...

Jomes Soda

Petervan Stolk founded Jones Soda on the premise tliat Gen V consumers ivould be more accepting o a new soft-drink brand it they felt Ihey discovered it themselves. Jones Soda initially was sold only in simps that sell surlbaardg, snowboards, and skateboards, The Jones Soda Web site encourages fans So scad in personal photos for possible use on Jones Soda labels. Although only maybe 40 or so are picked annually from die lens ol thousands ol enlites, the approach helps to create relevante sad an...

Kiehl

KieTil is a stria'I, t53-year-c1d company thai makes and sells Yiair and skin products, such 3S Kiel's iosewaler igciai fresiieoef-toner and pineapple papaya facial serub- its marketing practices defy normal wisdom, it does not advertise, lis packaging is bland and the text is di fficull to read. It refuses to be carried by mast stores, malinn excepiipng inly lor higli-priced stores such as Saks Fill In Avenue, Neiman Marcus, and Barney's. giviE away vast amounts ol free samples lo anyone...

Krispy Kreme

Doughnut Theater is a bit ol snow business thai drams customers into the baking experience and makes them feel Irke they are a pari ol the process. Anolher aspeel of show business is producl placements on hit shows like 7 Sopranos and WWi ( race and movies, ike ( fuce Almighty. Finally, in'ernatkinal expansion is lueled by cetotolies like Dick Clarli, Hank Aaron, and Jimmy Buffet, who clamored for Krispy Kreme franchises ol their own, Krispy Kreme doesn't uSE gran) IranclliSc righls to anyone....

Kx Vi

Chapter 21 Tapping into Global Markets 66 Competing on a Global Basis 663 Deciding Whether to Go Abroad 669 Deciding Which Markets to Enter 670 How Many Markets to Enter 670 Developed versus Developing Markets 671 Regional Free Trade Zones 673 Evaluating Potential Markets 673 Deciding How to Enter the Market 674 Indirect and Direct Export 674 Using a Global Web Strategy 675 Licensing 676 Joint Ventures 676 Direct Investment 677 Deciding on the Marketing Program 677 Product 678 MARKETING INSIGHT...

Kyocera Mita Corporation

In 2D03, Kyocera Mita America commissi one d J.O. Power and Associates to develop a program to survey Kyocera Mita dealers' customers and certify those dealers thai met or exceeded national benchmarks for sales and service customer satis& tion. Certification is based en customer alisfaction with an office equiffit ment dealer's product knowledge, expertise in machine operation, ability 1c advise customers about their spe-cilic needs, and timely delivery of the equipment. Additional areas...

L

Being a supplier of choice for the nation's schools ur hospitals means big business CARDINAL HEALTH A spinoff of Baxter Healthcare Corporation, Cardinal Health has become the largest supplier of medical, surgical and laboratory products ir (tie Un ted Stales The company's slockless inventory program, known as ValueLink. was tiled as a 'best practice by Arthur Andersen's business consulting practice. Currently in service at over 1acute-care hospitals in the united States, this program supplies...

Labeling

The label may be a simple tag attached to the product or an elaborately designed graphic that is pari of the package The label mi ht carry only the brand name or a great deal of information, Even if the seller prefers a simple label, the law may require additional information. Labels perform several functions, first, the label identifies (lie product or brand for instance, the name Siinldst stamped on oranges. The kibe I might also grade the product tanned peaches...

Lego Group

LEGO Group, me Danish toy company, ertjoyed a 72 percent 91 otoaI market share 01 the construction-toy market but children were spending more of Ihelf spare time with video games, computers, and television and less time with traditional toys, Logo recognized the need to change or expand its market space, it rede -lined its ruarkel space as family edutainment, which included toys, education, interactive technology, soU-ware, computers, sad consumer eteclrc-nics. All involved exercising the mind...

Lessons For Newproduct Success

Gorgoniola Cheese dressing was everytli ng (hat Lours Sherry, raw for its rich candies and ice cream, should not be sugarless. cheese, and salad dressing. Me-toO marketing is the number-one killer of new products. Pepsi is one of ihe few survivors among dozens ol other brands itiat have challenged Coke for more ihan a century, Ever hear of foca-Colo Cooo-Cola Yum-Yum Cola French Wine of Cola How about King-Cola, 'the royal drink People usually do not buy products that remind them ofthdt...

Linow

Mp 7--i ti* * ** wH fl* dp Wnw rt Pv B-vii -C - i i.Iii, ,'-1*r i U .In Erclilai Jfj t-i-l , r '-.-fc-l Isrf K< I I h f* V -*' CJW'i I ii nfmtfi i uj-fcwkr 'i - t ' '- sd J mjpwirf AMI V L< IUi IM y-i r NiA h tm. kAtut Mil wwr * - * 1 UI t W H.I.U wy v L*st -fcS Bjn-ii' f Sf'-sll O'l is a vertically ifltegfat6d Brtt) Hiat is also today becnmnig an environ mentaUy Iriendy firm. Tina sd is ene o a eres n a camp gn io spotlight Shell's sustainable dftiBtopfnefU...

Lockheed Martin

Defense Contractor Lockheed Martin. '.-.Ti uh Spends 313.2 billion annually, Crenied a Strategic SOurciny SoluhcrtJ Gtoup lo cenlraM tne company's purchasing functions across divisions and consolidate redundancies. Tne group is comprised ol 52 employees with cross-lunclional experience, and their mission is to be an integrated, leading edge team thai provides iiKiuslry-recegnved supply cha n intelligence and in nova live snurctng slraie-gies. Willile fully oplimijing customer value. As an...

Logitech International

Logilech has became a SI-3 billipn global success- story by making every variation of computer reuse 'mag inabie, The company turns out mice for left- and right-handed people, cordless mi that use radio waves, mice shaped like real mice lor children, and 3-D m ce that let the user appear to move behind screen objects, ft sells to OfMs as wall as via its Owtt brand at retail, its global douiiriauce in lite mouse category enabled ihe company to expand into other computer peripherals, such as PC...

Loh As

Consumers who worry afcoul the environment, want products to DC produced in a sustainable way, and speed money to advance itieir personal development and potential have been namfd LOHAS * Ttte name is an acronym siandirfl far lifestyles of heatM and sustainMly. The market for L0HA products encompasses Ihings like organic foods, energy-efficient appliances and sonar panels, as well as alternative medicine, yoga tapes, and ecoloyrism. Taken togeliier. they accounted for a S230 billion market in...

Lose 10 Pounds

E ai rj for tiff Si-l - UjI G -t' Ore& nt tC'Ai FI irfl en Wifl A it 23 fc-J a 6 Ht I- *dr -i 7-ta t.-.tu fustd ip BrFPyriU* FREE riiwiis-tfi Ai e you hyri hi u h y Vif l l t Pli* I Cwi I Frr,iHf FviV'( AlUAl I I > J Us lin dn T J AM5 I nil IIEY-II. T fiS E ai rj for tiff Si-l - UjI G -t' Ore& nt tC'Ai FI irfl en Wifl A it 23 fc-J a 6 Ht I- *dr -i 7-ta t.-.tu fustd ip BrFPyriU* FREE riiwiis-tfi Ai e you hyri hi u h y Vif l l t Pli* I Cwi I Frr,iHf FviV'( AlUAl I I > J Us lin dn T J...

Lotus

Sales of the original IBM-PC were driven by Lotus 1-2-3, which combined an accounting spreadsheet with a prograat fiat could turn tows of numbers into chartsand graphs. Vet Lotus ultimately did not keep pace as the PC evolved, and missed opportunities with Appie Macintosh, Microsoft Windows, and suite appiieat.ons. Ful lowing IBM's acquisition of the company in 1995, Lotus capital red on the growing popularity of corporate e-mail systems vfth its flotea software, but Mvcrosoifs ability (a tie...

M

Employee welcomes customers o a Las Vegas WaMu bank Washington Mutual prides iisali an being customer-friend y to ptay. The bank's format, known as its Occaslo style, which is Latin for favor- fable opportunity, is carefully designed to facilitate cross-selling of products. This Is important, because when customers buy muftrple products, they are more likely to remain a customer of the bank and are far more profitable. After four years, the average customer who opens a free checking account and...

Maddtm I Hwliu Pickard CO WWwhpcoi Hlof August t2tmt pp 123

31 liolirrt Hii'lji'ii'r.TIuiiiilk li. ki-lh. i i(l Chides Kjetlemiin, iii'sl Pntctlces Baitdjug Ytinr Business nidi Customer-IbettSed Solttlions (Ml' VorfcAnhurAinltTsen Siipoii Sciiuster, ttH iii, pp, 122-124. 32. mw - 1 tilt i i in i ' 11 i 11 i pp I ier (J ual i i y -Si i my, hacitrisiug. January 1995, p. V1. 33. Dwid . t Lint.Robert II. Wwidraff. aiv.t Sur.iti t islwrCardial. i > Lpl j ri n > i til-1 J i fu luik'ih n i of Customers' I esltod-v Jue CluLng*. in bi...

Major Marketing Weaknesses

Deadly Sin The company's marketing planning process is deficient. The marveling plan ipima does no have lhe right components, there is no way to estimate the linancia 1 indications 0 dilterent strategies, there is 110 contingency planning Sotutions Establish a standard formal including situational analysis, SWOT, major issues, objects, slraiegy. ladies, budgets, ana controls ask marketers what changes Uicy would make if the were given 20 perCent more or less Itudgei ran an annual marketing...

Managing Brand Equity

Effective brand management requires a long-term view of marketing decisions, because consumer1 responses to marketing activity depend On what ilicy know and remember about a brand, short-term marketing actions, by changing brand knowledge, necessarily increase or decrease die success Of future marketing actio its. Additionally, a long-term view results in proactive strategies designed lo maintain and enhance customer-based brand equity over time in (he face of external changes in the marketing...

Managing Service Brands

Some of the world's strongest brands are services consider financial service leaders such as Citibank, American Express, J I' Morgan, I ISfiC, and Goldman Sachs, Several hospitals have attained ' megabrand- reputations for being the best in their Held, such as the Mayo Clinic, Massachusetts Gijperal, and Sloan-Kettering- These hospitals could open clinics in other cities and attract patients on the strength of theft brand reputation. As with any brand, service brands must be skillful ai...

Managing the Development Process Ideas Idea Generation

The new-product development process starts with the search for Ideas. Some marketing experts believe ihat the great est opportunities and highest Leverage with new products are found by uncovering the best possible ser of un m ei customer needs nr technological in novation -1 New-product Ideas can come from interacting with various groups and from using e& jvitygenerating techniques. (See ''Marketing Memo Ten Ways to Great Nei Product Ideas. Ideas Tor new products can conic from many...

Managing the Integrated Marketing Communications Process

As defined by the American Association of Advertising Agencies, integrated marketing tom-inilti catlo n s IM O i s fl concept qf nlarfcet Ing cornmujiicalions pinnnitig that teeognizes the added value of a comprehensive plan. Such a plan evaluates tht strategic roles of a variety uf communications disciplines for example, general advertising, direct response, sales promotion and public relations and combines these disciplines to provide clarity, consistency, and maximum impact through the...

Market Evolution

Hecatise lite PIC focuses on what is happening to a particular product or brand rather than on what is happening to the overall market, it yields a prod net-oriented picture rather than a market-oriented picture. Hirrns need to visualize a nutrfcet's evolutionary path as it is affected by new needs, competitors, technology, channels, and other developments.1* In the course ofa product's or brands existence, its positioning musl change to keep pace with market developments. Consider the case of...

Market Follower Strategies

Some years ago, i heodore Levitt wrote an article emitled Innovative Imitation. in which lie argued that a strategy of product imitation might be as profitable as a straiegy of product innovation.tflThe innovator bears the expense of developing the new product. getting it into distribution. and informing and educating the market, ' 'lie reward for nil this work and risk is normally market leaders hip. However, another firm can come along and copy or Improve tin the new product. Although it...

Marketing and Customer Value

Marketing involves satisfying consumers' needs and wants. The task of any business is to deliver customer value ai a profit. In a hypcrcompetitjve economy with increasingly rational buyers fated vlth abundant choices, a company can win only by fine-tjbreingi the value delivery process and choosing, providing, and communicating superior value. The traditional View of marketing is thai the firm makes something and then sells it (Figure 2,1 a ). In litis view, marketing lakes place in ihe sccund...

Marketing Debate How Different is Businessto Business Marketing

Many business-to-business marketing executivr* lament the challenges of business-10-business marketing, maintaining that many traditionsi marketing concepts and principles do not apply, for a number pf reasons, they assert that selling products and services to a company is fundamentally diff rent from selling to individuals. Others disagree, claiming that marketing theory is still valid and only involves some adaptation in the marketing tac ties- Take position Business-to-business marketing...

Marketing Decisions

We ivill examine retailers' marketing decisions in llie areas of target market, product assort* in cm and procurement, services and sime ainmsphore, price, communication, and toca-lion. (Set also Marketing Memo i lelping Si ores tu Selk) e a retailer's tnosi thportum decision concerns the iEirj> ei market. Until the target mar& t is defined and profiled, ihc retailer cannot make consistent decisions on product assortment, store decor, advertising messages and media, price, and service...

Marketing Insight

CONDUCTING llV FOHMATlV FOCUS GROUPS Focus groups alto masters to Observe Irw and Why copswmers accipt or Tt Ect concepts. ideas, or any specific notion. The hey to using iKuii groups HiOOfcssluilY is in fisted II is critical So eliminate biases as much as possible. Aithot.gh many useiol insights can emerge trom lboiigltitfuliy run focus groups, There can bt questions as Id tkir validity, especially in lod& y's marketing Bfonrwmeni. Some researchers tjelievft lhat consumers fcive been so...

Marketing Management Video Gallery 2006

PH lias updated tile Marketing Managcmerii video library for the 12th Edition. Using today's popular newsmagazine format, students are taken on location and behind closed doors, ilacb news story profiles a known or up-and-coming company leading the way in its industry. More than luvrify rieir t'itlm Clips accompany ihis edition, covering key topics using leading companies sucli as American Express, Song Airlines, (lie NFL, Batan, and Wild Ranet. Issue-focused...

Marketing

Pegasus marketing mis ts comprised of the following approaches to pricing, distribution, advertising and promotion, and ctssiomer service. a Pricing- This 'ill be based oit a per-product retail price, n Distribution, lit it ally, Pegasus will I use a direct-to-consumer distribution model. Over lime, il will use retailers as we I, Advertising nud Promotion. Several different methods will be used for the advertising effort. Customer Service. Pegasus will strive to achieve bent fini arked levels...

Marketing Nsight

Major acwwfi fatso called key accounts, national munis, global accoums, or house accounts) are typically sing'ed oui far pecrai attention. Importanl customers who have multiple divisions in many locations are oEt fed mjjgr amount wrtiwfls. vrtiich pro te uniform pricing and coordinated service for all custom divisions. A major account manager MAM) supervises field reps call.ng on cuslomer plants within thci territories- Large accounts are oiten handled by a strategic account management team...

Marketing Pan A Handbook 2nd edition with Marketing Plan

Marketing PlanPro is a highly rated commercial software program chat guides students through the entire marketing plan process. The software is totally interactive and features ten sample marketing plans. Step-by-step guides, and customizable charts. Customize your marketing plan to fit your marketing needs by following easy-to-use plan wizards. Follow the c I early Ou ti i tied s< eps from st ra tegy i o imp I eme n i ati on. CI ick to p rint, and you r test, s pread -sheet, and charts come...

Marketing Plam Criteria

Ts the plan realistic Are 1'ie sal s goals. orpenss budgets, jind milestone dates realistic Has a frank and iwesl selr-cntique been conoucled lo raise possible concerns and objections ts Sk plan compl te Usas it wfate all tte necessary dements Scarce tun Betcy arc Dcug Wrison, Osi Uigvi. Ihe fco* < xi MarteJ ng P ans tEuyens. OP Palo fJSa ajftwiTe, finance, and human resources, to ensure that the company can provide proper support for effective implementation. 'Itic marketing strategy should...

Marketing Spotlight

R.rcfOMll was founded in 1975. when Bill Gates dropped out of Harvard at age 19 to work with high school friend Paul Alloa on a version el Ihe (iASlC programming language. After moving Ihe company from Albuquerque to Seal tie in 1979. Gates and Allen began writing operating system software What has happened io the company since its iotrnding is a weH-krtqwn and (Mold story. Here are a few or the key strategies ftal enabled Microsoft to achieve such remarkable growth in the very competitive...

Marketing Strategies Growth Stage

The groivih stage is marked by a rapid climb in sales. Larly adopters like the product, and additional consumers start buying it. New competitors eitler, attracted by the opportunities. They in i reduce new product features and expand distribution. 'rices remain where they are or fall slight I v. de lending on how fast demand increases. Companies maintain their promotional expenditures at the same or at a slightly increased level 10 meet coi 11 je t itio n a nd 10 co n t i n ue 10 cd u ca e 1...

Marketing to Small Businesses

Small businesses, in particular, have become a Holy Grail for business marketers. w 111 the United States, small businesses are now responsible fur 3d percent of lhe gross national product, according u> Ihe U.S. Small Business Administration, and this segment is growing ill i 1 percent annually, three percentage points higher than the growth o Marge companies. I lure are two examples of companies focusing on small businesses. FOEfe'ifYING MARKET SEGMENTS ANO TARGETS CHAPTERS 259 1. industry-...

Maximizing Customer Lifetime Value

Ultimately marketing is (lie art of attracting and keeping profitable customers. According 10 James V rm ten ot American Impress. (lie best customers nul spend others by ratios of Hi to I in retailing, 13 in 1 in the restau mm business, 12 to 1 in ihe airline business, ami 5 to i in (lie hotel and motel industry,3' Vet every company loses money pn some of its customers, the well-knOwn 20-& 0 jijle says that the top 20 percent oft he cur turners may generate as much as ISO percent of I lie...

Measuring Communication Results

Menior managers want to know the out comes and revenues resulting from their communications investments, loo often, however, their communications directors supply only otiijjiifs and expenses press clipping counts, numbers of ids placed, media costs, in fairness, the communications directors try to translate outputs into iniermediaie outputs such as reach and frequency, recall and recognition scores, persuasion changes, and cost-per-thousand calculations. Ultimately, behavior-change measures...

Meoiamark Research

Mediamark Research interviews 26,000 Americans in thei' homes nn Hie kinds of media they use. the brands and products they use. arid their attitudes toward topics such as sports aiirt ponies. Up untfl 2*102. however. lite company had tended to exclude non-English-speaking Hispamcs Irom Ihe research. As ihe Hispanic population increased in numbers and buying power, Itie company recognised that it cotild no longer afford this limltlltfl and potentially biased approach. Mediamark recruited a...

Mew Balance

Oespile the fact lhat it has no cctahrily endarsets and does comparatively little advertising, New Balance has achieved more customer foyalty than any oilier athletic shoe brand. Its secret A truly distinctive product. New Balance offers customers athlelic shoes of varying widths. it targets the relatively neglected older market segment of fairly serious athletes age 25 to 45. kts low-key adveit.siiig appears in niche magazines like Outside, New England Runner, and Prevention, and on cable TV...

Microsoft

Ing system lor its new PCs, which led to the crea itm of Microsoft Disk Operalmg System (MS-DOS Because other computer manulacturors wanted compaiib -ity ih IBM machines. Micros was soon aucpieii as Hie standard PC operating system. flfand-Entension strategy Microsoft used its strong orand name lo launch iwv software products such as Microsoft v c. U M roso t Office, end Microsoft Internet Exjilorer In 1989, Microsoft became Ihe world's largest software seiar. boasling the broadest array ol...

Miller Lite

The initial advertising strategy tor Msllef Lite bsei Pad twogcals assuring par.ty with key competitors in lhe category by staling lant il tastes great, while at the same time oreal.ng a point-oF-diffenence h contained one-lhird less calories and vras ftius less filling tiian regular, lull-strength beers, As is oflen the case, 1 tie poinl-ol-partty and point-of-difference were somewhat conllicfint . as consumers lend to equate tas1 v.'ith calories.To overcome potential resistance, Milter...

Mo Ls On

Crispin, Potter. h Bogtisky's campaign tor Canadian brewer Molsonwon ActweeXs award far Media Plan of the Year spending less titan Si0 million CP * B was hired to revi1ali e Molson's brand m the United States and renew its relevance among its care target erf men ages 21 to 27 who are not necessarily sitting in front of Hie TV wailing for 30-second beer commercials. CP i-B made a radical suggest-on Don't spend more ad money dress up yeur beEr boltles. The CP1-6 team came up with the idea ot...

Motel

Motel 6. the nation's largest budget molel chain, was founded in t < > fr2 when the 6 slood lor S6 a nigtit. Alter finding its business fortunes hitting bottom in 19& 6 with an occupancy rale nl only 66.7 percent. Motel 6 made a number of marketing changes. It included ttie launch Ota radro campaign of humorous < 30-second ads leading lolksy contractor-ntnred-writer Tom Boflett with Ihe clever lagline We'll leave the light on r& r jou.Ttte act i campavg is treated wltli a rise in...

Mp

P.edycfl the comirfexitf and cosi tosifing pjiir r- frwnftciMnct. C owjin* CWAeit Iftr& widc-S. ftfi iKr* jyp CML Plirtl-stove (a 'r.jd ti. .n.> OJ trarvsmiiMan. With the growth of consume online shopping, it s eo& y to lose sight Ol one of the most significant irends in e-commerce Ihe grcyy lh of business-to-business e-procuremeni, in addition to postingiheirown Weti pages on the internet, companies hpwe established intranets ior employee 10 communicate ih one another, sod ofranets to...

Muwaukee Electric Tool Corp

Milwaukee Electric Tool is a manufacturer of items ranging irom scret-idrivers to gaskets and drill toils to Heavy industrial machinery. For years, Elte company trad deployed a data platform itiat let it gather infermation on its d is-tribuiian. Financials, manufacturing sales, marketing, payables, receivables, and aiantifacluring operation. The company need ed a way to b ring al I the data together ana match trends. AFtcr the company changed to a new software package. Essbase XTD Analytic...

Nav I5ta R

H'avislar's operating company, International True and Engine Corporal or> , noted at one time that & percent of its d eaters were selling fewer than three or four truths a year. It cost me company more lo service Ihese dealers than me r sales I'iere worth, bul dropping these dealiis coulif have repEttussions on the system as a whnle. the unit costs of producing trucks would he Higher, heeaese the overhead would be spread over fewer trucks some employees and equipment would be idled some...

Nde

279-BO, 298 Aaker, Jennifer, 16 2 Aaron. Hank. 3-36 Ab I, Oerelt F., 262 Abraham Magid, 585 Adamion, Allen, 109 Aerosmith, 8 Agassi, Andre, 76 Agrawal, Manoj K., 283 Alahuhta, Matti, 662 Albrecht, Karl, 421 Alexander, Jan, 63s Allen. James, 68 Allen. Paul, 726 Ambler, Tim, 117, 113, 415 Anderson, Eric,, 437 Anderson. Erin, 487 Anderson, James C. 163, 225, 226, 241, 23 Anderson, Pam, 573 Ando, Kunitake, 135 Andru , Faula lyon, 178 Angwin, Julia, 222 Ansoff, Igor, Anthony, Ted, 638 Ariely, Dan,...

Netfmx

Back in 1997, villi le most people were slili fumb'irig wilh programming their VCRs. rietllix founder Reed Hastings became convinced that DVDs were liie home video medium of the full re. He raised SI 20 million, attracted hundreds of thousands of customers, and took the company public in 2002. gaining anoiner 90 million. Nelllix has distinctive capabiliHes that promise to keep the company on top even as competitor like Blockbuster and Wal-Mart try to muscle in on its twi. One of (he company...

Newlyweds

It has been estimated ihat newlywedsin Hie United States spend a total of S70 billion on the.r households in the first year atlsr marriage and they buy more in the first sin months of marriage than an established household does in I've years Marketers know that marriage often means 1hal two sets of shopping hatiis and brand preferences have to he Wended into on . Companies aitfi as Procter S Gamble. Clwoa. attfl Colgsle-PalfrioWe incite Itteit protects ia Newlywed Ms that are distributed wtien...

Nike

Crilics of Nike ollen complain that its siioes cost almost nothing lo make yet cwl tfie consumer so much. True, Die raw materials and manufacturing costs involved in the making of a sneaker are relatively cheap, bui marketing liie product lo the consumer is expensive. Malcrials. labor, shaping, equipment, import dtJliss. and suppliers'1 costs generally total less than S25 a pair. Compensating its sales team, its distttoulors, iJs adminislralion, and its endorsers, as well as paying for...

Nonexistent fipHtrtwl Consums nmy lie unaware or tinihterestedJn thepraduct

Latent eimtntl - Consumers may share a strong need that cannot he satisfied by an existing product. 4. Declining demand Consumers begin to buy the product less frequently or not at all. 5 irregular de rUfpd Consumer purchases vary on ll seasonal. monthly, weekly, daily, or even hourly basis. G, Fiili ilrmitnrf - Consunwis are adequately buying all products pin Into the marketplace, 7. Overfull demand More consumers would like to buy the product than can be satisfied. . tfiiwlwli'sttine...

Notes

( ii Sh.ipimnrd Hal R. r an, Vl'i Loii dk I he Smart Way to Sell Inroiinaiton. t mintputincss ficiinu'tNiriciriLiet-Dfvuttiber I BB) UK-1W. it. hNtin ft. Bnmdt. Dan m DUTetem, Chief ExecuttiY. May 009, pt> . a-i-sft. . i'JI l'v Itayporl ' ii*I ohri SviuMSi Mjimging in the Marketplace. Ilantird Business jJ U'jNovcnibcr-Dec niber 1991V 141-1 0. Ais f i tlu'ir 'ExploringtiieVirtual v'ahie t hain, ttqnwrf HuSiliesx lil > jV(ivpinbtr-l K4Plltr lHH 7S-A5, lu. Motia S whrej'i Seven Steps lo...

Notes r

Thf Man Wl Mooned Larry Ell son, Fon ut m, July T, 2003. pp. 71-74. 2. la row C. Anderson tiuf lain A. Narus, Bit si neu Marke r MrfitsftywfriJ Untlersl indina. f real ng arid PeliivriiJg Value, 2mA editfOit, (Upper Saddle Eiiviji. Premier Halt 20U H. t. I red crick i , Vifebsttt r, and Vriram Wind, Organizational Haying Jfafcwwr Upper Sathllc River, MJ 'reiitiix' Et il . p. 2. *l, JenniftT Ciltivri, Email biH Mighty. StlfriJ Marketing Management January 2(1U4.I 5, Miclwel Collins....