Surviving World War III
Between the two world wars (i.e. the 1920s and 1930s) there was a boom in the availability of consumer products - e.g. radios, automobiles - which in turn fed a hungry media. This saw the development of some ''in-house' capacity to churn out a healthy supply of material that became known as ''advertorial ' (sales promotional material dressed up as editorial copy). After the Second World War, many who had been dutifully employed in the art of propaganda looked to apply their well-honed skills to more explicitly commercial ends. (Interestingly, in the 17th century the Catholic Church created the word propaganda with its congregatio de propaganda fide which means ''congregation for propagating the faith.'')
In the jewellery quarter many businesses are engaged in buying, selling and repairing jewellery items, including watches. Charles' interest in the idea stems from his own experience as an amateur horologist and the skills he developed at college in working with gold and silver. He has been an avid collector of wrist-watches for the past 20 years and has a comprehensive collection of more than 500 wristwatches of different kinds. These range from modern-day quartz Swatches to First World War officers' wristwatches. He plans to offer many of these watches for sale as part of his opening stock. Naturally, there are three or four favourite ones that he plans to keep for himself.
The word system, as applied to products, is a post-World War II phenomenon. Two related forces were responsible for the emergence of this phenomenon (a) the popularity of the marketing concept that businesses sell satisfaction, not products and (b) the complexities of products themselves often call for the use of complementary products and after-sale services. A cosmetics company does not sell lipstick, it sells the hope of looking pretty an airline should not sell plane tickets, it should sell pleasurable vacations. However, vacationers need more than an airline ticket. Vacationers also need hotel accommodations, ground transportation, and sightseeing arrangements. Following the systems concept, an airline may define itself as a vacation packager that sells air transportation, hotel reservations, meals, sightseeing, and so on. IBM is a single source for hardware, operating systems, packaged software, maintenance, emergency repairs, and consulting services. Thus, IBM offers its...
Gillette patented the safety razor in 1904, but it was not until World War 1 that the product gained wide consumer acceptance. Gillette had the brilliant idea of having the military give a free Gillette razor to every soldier. In this manner, millions of men just entering the shaving age were introduced to the daily, self-shaving habit.
More recently, in marketing and communication literature word of mouth has taken on a more restricted meaning. It refers only to interpersonal communications about commercial entities. While the phenomenon of people talking about products had clearly been known throughout the first half of the 20th century, the concept of word of mouth only became a scientific term after the rise of positivist communication research in the US after World War II.6 A useful summary of this early research on word of mouth offered the following definition
Few dispute that the Japanese have performed an economic miracle since the Second World War, In a very short time, they have achieved global market leadership in many industries motor vehicles, watches, cameras, optical instruments, steel, shipbuilding, computers and consumer electronics. They have made strong inroads into tyres, chemicals, machine tools and financial services, and even designer clothes, cosmetics and food. Some credit the global success of Japanese companies to their unique business and management practices. Others point to the help they get from Japan's government, powerful trading companies and banks. Still others say Japan's success was based on low wage rates and unfair dumping policies.
Founded in 1928, Motorola introduced the first car radio - henee the name Motorola, suggesting 'sound in motion'. During the Second World War, it developed the first two-way radios ('walkie-talkies'), and by the 1950s, Motorola had become a household name in consumer electronics products. In the 1970s, facing intense competition mainly from Japanese firms, Motorola switched its focus from radios and televisions to advanced telecommunications and electronics products semiconductors, two-way radios, pagers, cellular telephones and related gear. However by the early 1980s, Japanese competitors were still beating Motorola to the market with higher-quality products at lower prices.
At the end of World War II, Freixenet began significant international expansion. Jose Ferrer, president and general manager, ravelled to various European countries searching for opportunities to sell his products. Fellow uava producers did not share his eagerness for international expansion. Jose Ferrer remembered 'One day, at a cwua producers' meeting, a colleague stated, This business of exports is a joke. What you like is to travel. Forget this business - outside of Spain you won't sell a single bottle. '
Understanding a competitor's products is obviously an essential step. It can be realized through reverse engineering, which means tearing down the machines of a competitor and then trying to rebuild them. Reverse engineering has been used for a very long time as a source of innovation notably by the Germans during World War I, and by the Japanese during World War II 19 . More recently, a low-cost Chinese company, Huawei, has reverse-engineered some Cisco routers and has put similar products at roughly 40 of the price on the American market, much to Cisco's dismay.
World War and is still the major classification system used today. The reason for its widespread use is that members of each social group or class show broadly similar patterns of behaviour, consumption, lifestyle, attitudes and media use in many situations. This can help to explain differences in use of, or response to, all kinds of products and services, and therefore gives a basis for comparison. It is also relatively easy to apply in research surveys and so is used in most surveys and marketing activity. However, the very fact that it is a prewar classification system highlights its current social grading deficiencies. Although the process of social change is slow (hence the system still has broad relevance in many situations), since the Second World War there has been considerable social change resulting in more social diversity. For many situations the system of social grading is no longer relevant and so cannot help in explaining or understanding consumer behaviour. The...
So first define the market at which you are aiming. It is estimated that as few as one percent of the bombs dropped in World War II actually hit their target. It is only recently, in the Iraq War, that this problem has been solved. You, too, need to define your target market with similar precision.
The style or design of a product is also very important and crucial for consumer high-tech products and services. Siemens is marketing its Xelibri mobile phones as fashion accessories, with radically different shapes and wearable designs. Similarly, to find success on the Internet, firms must present attractive interactive applications to digital customers. Today Web sites have to be designed simply, fast loading, and accessible to those using a variety of browsers, platforms, and monitor settings 9 . Successful products tend to have some specific design features thanks to the progress of ergonomics, a discipline introduced during World War II, when the need for a human interface component was recognized in the design of aircraft cockpits and other military hardware. Today high-tech products always go for more simplicity and ease of use, miniaturization, specialization and customization, and security. After World War II, IBM went through a turbulent transition from the punched-card...
In 1899, Sebastian Spering Kresge opened his first store in downtown Detroit. By 1912, Kresge had 85 stores with annual sales of more than 10 million. Kresge stores appealed to shoppers with the stores' low prices, open displays, and convenient locations. Inflation in the World War I era forced Kresge to raise prices to 25c, and in the mid-'20s, Kresge opened green-front stores to sell items at a dollar or less, often next to the red-front dime stores. Kresge went into the first suburban shopping center Country Club Plaza in Kansas City, Missouri in 1929. By 1930, variety-store chains had become commonplace because they provided a wide array of goods at low prices. Meanwhile, supermarket chains were introducing the public to self-service shopping. The Kresge Company launched its newspaper advertising program in the early 1930s. Radio promotions followed 20 years later, and television was added in 1968. Today, print ads still dominate Kmart's advertising program, with 72 million...
Throughout human history, people have tried to achieve specific purposes, and in this effort some sort of planning has always found a place. In modern times, the former Soviet Union was the first nation to devise an economic plan for growth and development. After World War II, national economic planning became a popular activity, particularly among developing countries, with the goal of systematic and organized action designed to achieve stated objectives within a given period. Among market economies, France has gone the furthest in planning its economic affairs. In the business world, Henri Fayol, the French industrialist, is credited with the first successful attempts at formal planning. Since World War II, technology has had a major impact on markets and marketers. Presumably, the trend of accelerating technological change will continue in the future. The impact of technological innovations may be felt in any industry or in any firm. Therefore, such changes need to be anticipated...
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