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?
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 …]
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 …]
This article in Wired magazine highlights “ The Most Innovative Objects of 2016 (That You’ll Actually Want to Use) ” (December 28, 2016). Look through and read this list of innovative new products. In the “New-Product Planning,” section of chapter 9, we define three categories of new products: continuous innovations, dynamically continuous innovations, and discontinuous innovations. Categorize each of the “Most Innovative Products” in the Wired article using one of these three categories. If necessary, click through to learn more about each. Explain the logic for your classification of each.
The chapter-opening case for Bonus Chapter 2 focuses on the cross-functional relationships at IKEA. The case demonstrates how the global retailer’s functional areas (finance, production/operations, accounting, information systems and human resources) interact with marketing to increase its effectiveness. Cross-functional coordination may be most important in IKEA’s new-product development. This Wired article “ Behind the scenes at Ikea’s top-secret furniture lab ” (September 24, 2015) provides a great look into innovation and new-product development at IKEA. From the article, explain three examples that show how different functional areas of IKEA work with marketing to develop new products.
As you know from chapter 9, identifying and developing new-product ideas — and effective strategies to go with them — can be key to a firm’s success and survival. So what do you do if your main product is a sports drink first developed 50 years ago by a team of scientists at the University of Florida after a request from the football coach (the football team is nicknamed the Gators — hence the name Gatorade)? After years of focusing on new flavors and packaging, Gatorade is using technology to personalize its contribution to athletic performance. Read more about Gatorade’s “smart cap” [Continue Reading …]
Marketing practices — and laws that govern those practices — are always changing. Chapter 8 discusses food product labels. Recently the Food and Drug Administration made changes to the nutrition facts label that appears on the side of packaged foods. The new label reflects the latest scientific information on how foods — in particular sugar — contribute to an unhealthy diet. For full details, we refer you straight to the U.S. Food and Drug Administration website, “ Changes to the Nutrition Facts Label ” (May 20, 2016). Review the press release at the FDA website (link above). List three changes to the label that help it [Continue Reading …]
This article, “ How Japanese Marketing Secrets Sparked The American Ramen Revolution ” (Fast Company, February 23, 2015) describes how ramen has become the latest hot cuisine. And more interesting to those of us teaching marketing, the article highlights the role of marketing in this fad. This might be a fun example to discuss when you cover Product — new product development or fads (is it a fad or here for the long haul?).