Last June we introduced the 15th edition’s What’s Now? feature. We promised that twice a year we would update with recent blog posts tied to each chapter. We have just posted the latest round of posts. Enjoy! And Happy New Year! If you are interested in previous posts, just click the appropriate “Category” on the right. We are pleased to unveil a new feature with this edition of Essentials of Marketing. One of the challenges we face with writing a marketing textbook is offering students the most current examples. With this edition, we have added a new What’s Now? feature. A link at the end of [Continue Reading …]
Chapter 1 introduces the concepts of customer value the difference between the benefits a customer sees from a market offering and the costs of obtaining those benefits. As consumers place more value on experiences, some retailers are looking for ways to offer more than just the goods on the shelves. This article, “ Pizza, Parks, and Pet Spas: Shoppers Will Pay More for Retail Experiences, ” Bloomberg Businessweek, October 19, 2016) describes retailers that are delivering goods and experiences. Give three examples of experiential benefits that customers receive from retailers discussed in this article. How much more would you be willing to pay for each if it included each experience?
Frozen food offer consumers convenience, but don’t have a reputation for great taste. The category’s sales have declined in nine of the last ten years. That trend has not stopped some of the players in “Big Food” (the giant companies like Kraft Heinz and B&G that dominate this market). These companies – and some upstarts like Amy’s Kitchen (which uses natural and organic ingredients with great success) are targeting millennials in an effort to revive sales. You can read more about this market in “ Frozen Food Comes in From the Cold ” (Bloomberg, October 27, 2016). Review the marketing strategy planning process model in chapter 2. Give [Continue Reading …]
In chapter 3 we introduce the concept of different generations (for example, baby boomers, and Generation X, Generation Y – also called Millennials). This online article, “ From GenX to Baby Boomers, What Every Generation Loves to Buy ” (Bloomberg Businessweek, October 19, 2016) and the video below describe some of the buying patterns typical of each of these market segments – and some other segments based on income and family life cycle stage. Note that the birth years for Millennials and Generation X in this article differs slightly from what is in your textbook. The video and article describe buying behavior typical of five market segments. Three of these segments [Continue Reading …]
United Airlines has traditionally been a “full service” airline – targeting the middle of the market. Recently, United rolled out two additional classes of service. For those willing to pay more, United’s Polaris business class product offers spacious seats, fancy meals, a fancy lounge, and more. See an ad for Polaris below. A few months later, United introduced Basic Economy – a lower price fare without reserved seats and no carry-on bags. Basic Economy helps United battle low-cost competitors like Frontier and Spirit, which have taken market share by offering no frills and low prices. United Airlines’ CEO Oscar Munoz [Continue Reading …]
One of the challenges to understanding consumer behavior involves the paradoxes or inconsistencies in their individual needs and behaviors. While this article “ The consumer is a paradox “(The Hindu Business Line, December 15, 2016) describes consumers in India, the paradoxes might also resonate with consumers in many other countries. After reading this article, explain how one of the paradoxes does or does not fit with your experience. Can you think of other paradoxes within yourself or a friend or family member? Can you think of a brand not discussed in the article that sits at the junction of a paradox?
One of the changes going on in organizational buying is the next generation of organizational buyers. Many of these new buyers are Millennials who are much more comfortable with technology, the Internet, and social media. In the textbook and in this “What’s Now?” series, we have often identified characteristics of the Millennial consumer. This article, “ 8 Keys to Selling to the Millennial B2B Buyer ” provides insights about how this new generation or organizational buyers might behave. Chapter six’s opening case scenario describes Metokote’s B2B relationship with its customer, John Deere. Considering what you learned in this article and chapter 6, suggest three ways that Metokote might operate [Continue Reading …]
This article at Bloomberg, “ The Inventor of Customer Satisfaction Surveys Is Sick of Them, Too, ” describes challenges to measuring customer satisfaction using surveys. This article raises questions about “Interpreting the Data” – which is step 4 in our Five-Step Scientific Approach to the Marketing Research Process. Look through that section of chapter 7. Which of the bold key terms in that section relate to the problems discussed in this article? For a business that really wants to assess customer satisfaction, what could be done to minimize the issues raised in the article?
In chapter 8 we introduce several concepts and ideas around branding. For example, we define brand equity as “the value of a brand’s overall strength in the market.” We follow that up with an example of Coca-Cola. In 2016, we see that Coca-Cola’s brand equity, as measured by Interbrand, has fallen since we wrote this in the textbook. As sales growth has slowed for the soft drink giant, it decided on a new brand strategy, which it described in a press release as follows: Marking a significant shift in its marketing strategy, Coca-Cola today announced that for the first time, all Coke Trademark brands will be united in one global creative campaign: [Continue Reading …]