MKT 208 Blog

Intro

My name is Kris and I started this blog because I am involved in a marketing class at Northwood University. After the three classes I am taking this term, I will only have two more to be finished with my bachelor's! I served a short two year enlistment in the Army and now they're paying for my school. I work as a manager for the Habitat for Humanity ReStore and love every minute of it. I'm a huge sports fan and use football as a second religion. I'm into all kinds of music, except country, and love good art work.

marketing reality

This is a good one. You think reality tv shows are taking over your evening viewing? Well, this is guaranteed to reassure you that there is no end in sight. How about a cat reality tv show? This is the marketing promotion of Meow Mix cat food, orchestrated by Grand Central Marketing, Inc.. They call it the Meow Mix House. There's ten rescued cats that stay in this house together with hidden cameras in every room. Think 'Big Brother', only feline. They even have competitions, including the climb-a-thon and the purr-off. These people are nuts! Three minute clips are shown on animal planet and www.meowmix.com. Viewers vote for their favorite cat, and each week one gets voted out of the house (you'd think there would be some sort of law suit by 'Big Brother'). The cat that gets booted is adopted by a permanant family. This totally sounds fanatical to me, but I can see how it would work. Meow Mix is on the grocery lists of every cat lover who's heard of this promotion.

And yes, this ties in with ch 4 in that Grand Central Marketing just won the Best Entertainment Marketing Campaign in the World at the Diamond Awards  http://thediamondawards.org/. They are an awards program that honors Best Marketing Practices from all over the world.

http://www.theglobalmarketer.net/campaignnews/article.jsp?id=460

global marketing language

I’m reading this article which considers “touch” as a potential global language, and I can’t help but ask myself – “How could the feel of a product’s packaging encourage me to purchase or distinguish that brand from any other.” The article argues that because languages are so diverse that maybe we can use a different sense as our global language; ‘touch’ being the most popular choice. It sights the coca-cola bottle. The manufacturer wanted it to be recognized in the dark. ‘Touch’ being universal, people all over the world would potentially be able to recognize the product by feel. This was obviously a few years back (90 according to the article) because now there are so many competitor bottles which are almost identical this strategy couldn’t work.

It also sights shampoos and fragrances for trying to appeal to the consumer’s touch. My girlfriend is a hairdresser and I’ve seen some pretty strange shampoo bottles, and for the most part they clearly distinguish themselves from any other brand of shampoo. The thing is, most consumers are going to ‘see’ the bottles before they ‘feel’ them, so the bottle becomes more appealing to the sight rather than the feel.

The only example that truly made sense and holds water in my opinion, is the toilet paper. Even though the article discusses the packaging that’s used, and describes it as being soft and smooth, that’s not what makes the sense of ‘touch’ come into play. Think about it, if three different brands of toilet paper were line up in front of you, unmarked, and you were asked to choose one, you would choose the softest. No matter what brand it was, you know there is only one factor that matters – ‘touch’.

http://www.businessweek.com/innovate/content/feb2006/id20060224_135831.htm?chan=search

salespeople

There’s always the right salesperson for the right customer. Some customers need a salesperson with the gift of gab, some want a woman some want a man, others prefer one that’s assertive. But there’s always that one that makes you as a customer either feel confident and comfortable with a decision and one that makes you feel like you’ve got a gun pointed at your head the entire time. I disagree with our textbook, that effective sales leaders need to possess the seven key traits. It seems to me that it depends on the customer. A good salesperson is one that can read a customer right away. If the customer is laid back and taking their time, that’s most likely what they prefer out of a salesperson. If a couple comes in laughing hysterically and is generally loud speaking, they probably prefer a very sociable salesperson. One of the biggest mistakes a salesperson can do is be lacking in product knowledge. Whether a customer knows the specs of a product or not, the salesperson should always be there to support the decision with facts. The first time the customer knows more about the product than the salesperson, that customer should walk away and find someone who knows. If a customer can’t rely on the salesperson to guide them in the right direction and answer all their questions, who can they rely on? It all should depend on the customer; if the customer chooses to let the salesperson be in control that's their choice to make, the salesperson shouldn't make that choice for them.

New Market

Along with the rest of the bargain hunters who use the day after Thanksgiving to knock out some of their Christmas gift shopping, I was flipping through the mound of advertisements in the Star-Telegram when one in particular caught my eye. Maybe it didn’t catch my eye so much as it felt different from the rest. It was made out of the stiff, glossy magazine style paper. The ad was eight pages thick and advertised no more than three items per page. It reminded me of a Macy’s ad or a nice Dillard’s ad. On the front page is a photo of a sophisticated woman carrying a garment bag full of tulips – trench coat with garment bag $88.88. Turn the page and it’s a photo of stunning diamond earrings - $897.00. The third is two well dressed men discussing work over a drink – cashmere blazer $189.86, cashmere sweater $79.86. The ad goes on to advertise things like a laptop bundle, chocolates, a comforter set, designer fragrances, and flat screen tvs. On the last page it even invites you to a complimentary continental breakfast and includes a one-day guest pass. To my utter surprise this was a Sam’s Club ad (www.samsclub.com). I couldn’t believe it. You think of Sam’s as catering to a middle class, large family household, but this advertisement took their meaning of “club” to a whole different level. Almost every piece of merchandise in the ad cost over $100. It was an advertisement for a department store rather than a bargain depot. Plus, their icon and name only appeared twice in the ad, on the bottom of the front page and last page. It seems Sam’s was trying for a different audience this holiday season.

ch 18

When I shop for anything, the first thing I look at is the price. I was raised to be a determined haggler, otherwise known as cheap, penny pincher, frugal, and sometimes embarrassing. I learned these traits from my father, he was the world’s worst. But now that he’s at that age where he’s doing the midlife thing and feeling more comfortable or loose with his money, he’s changed to a degree. Now, instead of focusing on price first, he wants quality. “Quality above all else” has replaced “cheaper is better.” Since value has become so important to him, the consumer reports guide has become his best friend. http://www.consumerreports.org/cro/index.htm 

Consumer reports ranks merchandise based on almost anything you can think of but primarily quality. They are very reliable and even give advice on what the markets are doing and when the best time to purchase is.

My dad is not the only customer who shops this way. While selling electronics a few years ago, a gentleman came in to purchase a digital camera. I was supposed to be the expert and he was supposed to have a list of questions, turns out the gentleman knew far more than I did. Not only did he know every little detail about the two cameras he was comparing, but was quick to inform me about reviews and news he had read on both and competitors’ pricing. This is a good example of why value-based pricing can be so important for a retailer. With the use of the internet, the information is out there for consumers to find, and yes there is still a large percentage who want to speak to a knowledgeable sales person, but the need for them is becoming less and less. All that’s left for the retailer to do is stay below their competitors’ prices and the value shopping consumer will come to them.

As for product manufacturers, it is in the best interests of their company to put the information out for their customers to have easy access to. It would be a good idea to welcome reviews such as the ones done in consumer reports as well. If their product is the best, let it be known and proven by unbiased opinions.

PS3

I always thought that the price for these gaming consoles was way too high, so I’ve never purchased one brand new. We had a brief discussion about Sony and its PS3 in class, but this article took me by surprise to say the least. http://news.zdnet.com/2100-9584_22-6136204.html Sony loses between $240 and $310 on every console it sells. That’s a chunk of change! It almost seems like it would be impossible to get out of the red when you start out like this. But, there not the only ones, the Microsoft loses about $200 for every Xbox sold. Plus, we’re just talking manufacturing and parts costs, not even factoring in marketing costs.

When you think about it, does Sony really need to take such a huge hit? It’s not as if they don’t have enough demand for their product. In fact, they really have too much demand and not enough supply. Every year at Christmas, there’s thousands of kids waiting for their new playstation on back order. I mean these releases drive hundreds of thousands to stand in line all night at Wal-Mart just to be one of the first in line before they run out. In fact it’s become dangerous. Another article stated that a man was held up and shot while standing in line for one of these PS3’s. http://news.zdnet.com/2100-9595_22-6136556.html So, no I don’t think there’s a good enough reason to price that far below cost.

Having said that, you know these companies have a safety net. In this case it’s the games themselves. All they are is software. We all know how cheap it is to buy a pack of 100 blank cds or DVDs now days. That’s all they’re doing. Sony and Microsoft manufacture these games for nothing and sell them at $40-$60 a piece, that’s we’re the real rip-off is.

A Flatter World

The idea behind Friedman's "The World Is Flat", is that due to the world wide web, along with other factors, communication anywhere in the world is as easy as a click of the mouse. When it comes to supply chain management, the ease of ordering products from overseas has become that simple. Anyone can order the best quality, lowest cost, or most unique products from all over the world. But as stated in "Supply Chain Opportunities" by Scott Koegler, the actual process of shipping the merchandise to and from seperate countries has not kept pace. It's hard for me to believe how slow the process still is. At my job, when we order flooring from China it consistantly takes three months for one crate to arrive in Houston, TX and another couple weeks to reach Ft. Worth. With all the technology of today you would think that an order would be received in a matter of minutes, if not seconds, shipped out within a matter of days, and checked in with little wait or lag time. As stated in the article, the financial software isn't up to speed either. Time is money, and too much of it is being wasted by not implementing technology into the future of supply chains. The world is becoming flat, and trade between overseas countries is becoming more and more common, it's time for these software companies like Oracle to see that. There's no doubt that this technology will be implemented, and most likely is already in production, but it shouldn't have taken this long.

http://www.line56.com/articles/default.asp?ArticleID=7833&TopicID=2

Effects of Technology

It wasn’t too long ago when product replenishment or ordering new products was a painstakingly long and tedious process. The amount of time it took for an order to be justified, placed, received by the supplier, filled, shipped, and received by the customer/company once took months. Now, with the help of new technology and software like Oracle’s supply chain management package, things have changed drastically. Instead of the old paper trail, orders can be placed over the internet. Instead of fluctuating inventory levels, inventory is dept by a computer database of what’s come and gone.

One of the more important aspects of ordering merchandise is knowing where that merchandise is at all times. Whether the product was shipped, whether it was delayed, whether you received it, where it is, even whether it was actually ordered. Knowing this information allows a company to control and manage their inventory down to the penny. Oracle has implemented, along with other upgrades to their software, radio frequency identification (RFID). With this technology companies can track their entire inventory wirelessly. The information from the radio frequency tags added to each product is sent directly to Oracle’s supply chain management software.

Just one more step to a stress free supply chain.

http://news.zdnet.com/2100-9592_22-5298333.html

Cocaine

This is unbelievable!!!!!! Maybe I am a little behind the curve, but this is my first time to here of the new energy drink called Cocaine. Talk about marketing!!! It’s obvious this strategy blurs the lines of ethical marketing, but think about it. In a market that is flooded with up and coming products, they have found a way to make theirs stand out. Acclaimed to be three times as strong as a Red Bull, made with natural sugars, and references to the illegal drug like the numbing of your tongue, this product has caused a huge following. With their own MySpace, http://www.myspace.com/drinkcocaine, Cocaine has submerged themselves right into the belly of their target market (no pun intended). The outcry for the energy drink is crazy. If you visit their myspace, you’ll see what I am talking about. There’s obviously a black market for this completely legal energy drink, these people cannot get enough.

The marketing scheme is simple: an energy drink should give you a boost of energy comparable to speed or cocaine so why not give it a comparable name.

However, I am all too aware of the flip side so don’t start bashing me yet. Naming any type of substance kids can easily get their hands on after an illegal drug can only cause harm to those unaware. Kids already grow up way too fast in our nonstop, morally low society of today. They become aware of things they shouldn’t far before they even know the consequences, or for that matter consider them. Say a young boy knows nothing about the illicit drug cocaine and is offered this energy drink called cocaine. He drinks it and likes it. The next day someone offers him the real thing only you have to snort it. What do you think is going to happen then?!

I applaud the makers of this drink for their innovation and insightfulness of their market, but if they had given any thought to the consequences themselves, they would have found a better name or found their niche elsewhere.

www.drinkcocaine.com

http://appserver.marketingpower.com/blog/marketingnews/2006/09/high_and_dry.html#comments

PS: I would love to try it.

Computer Product Lines

I recently read an article about Lenovo and their recent addition of the C200 laptop and the J110 desktop computer to their product line. At first glance, it sounds like a normal product line extension, but it’s really not. You see Lenovo refers to these products as being new and innovative, when in reality it was based off a previous model.

This holds true for almost all electronic companies, but especially in the computer world. Manufacturers of computer technology are constantly increasing memory, power, and speed. A computer manufacturer is constantly replacing hard drives with more capable ones, old video cards with new enhanced graphics cards, even adding accessories like more USB ports. These are all examples of product modification. In the computer world, the consumer very rarely finds a new product that is actually useful to the vast majority. Generally, what we see are functional modifications; enhancements to products that are already on the shelf. Once the new and improved product arrives, within a couple months, its predecessor becomes obsolete; planned obsolescence.

Computer companies worry about two things: getting the enhanced versions on the shelf as soon as possible and making it look pretty. The style modification is what makes the new models appear so different and appeal more to the first time buyer. Computers used to be off-white or black, now they come in a variety of colors, even clear. An actual product line extension in the computer world is hard to find.

http://localtechwire.com/article.cfm?u=15422