Consumers around the world want lower prices for everything. In response to consumer wants and needs, many clothing brands and clothing retailers manufacture garments in low labor cost countries like Bangladesh. This article in Bloomberg Businessweek, “ Clothing Keeps Getting Cheaper, and Factory Workers Are Paying the Price, ” (October 27, 2016) describes how keeping costs low makes it difficult for factories to meet employee safety requirements. After reading the article, do you feel unsafe working environments are just part of the cost of doing business? Should importing countries like the United States regulate safety in other countries? Should clothing brands demand safer workplaces? Even if it means their costs will [Continue Reading …]
ClassPass is a startup that offers a monthly subscription service to fitness classes in more than 30 cities around the world. The company has struggled to find the “right price” for its services. ClassPass was offering a $100 per month subscription for unlimited fitness classes. This pricing, ClassPass attracted workout warriors – who got the best deal from this pricing, but their usage rate hurt ClassPass’s margins. In April 2016, ClassPass raised the price for its unlimited product to $180 – and not surprisingly lost customers. Learn more about ClassPass’s pricing issues by first reading this article at TechCrunch “ ClassPass sacrifices 10% of customers in pursuit of healthier margins, ” (September 27, [Continue Reading …]
While chapter 19 is mostly about businesses acting ethically and socially responsible, a section at the end of the chapter discusses how societies “Need socially responsible consumers.” This little article/game describes the challenges facing consumers pointing out that “ Ethical Shopping is Even Harder Than You Thought ” (Bloomberg Businessweek, December 26, 2016 – January 8, 2017). Click through the article/game and re-read the section of the text “Need socially responsible consumers.” Is it fair to expect consumers to jump through so many hoops to be socially responsible? What role should government play in regulating industries so that we all behave more ethically? Explain and justify your [Continue Reading …]
Bonus chapter 1 provides analysis tools to aid in implementation and control of marketing plans. Companies engage in sales analysis to better understand supply and demand. In this article, “’ Hamilton’ Brings Over a Million Dollars Less Than Las Week ,” (New York Show Tickets” (December 7, 2016) about the very popular Broadway show uses sales analysis and dynamic pricing (see chapter 17) to optimize revenue and profits. Dynamic pricing raises prices when demand is high and drops prices when demand is low. Based on what you learned in Bonus Chapter 1, what other analysis could you recommend to the producers of “Hamilton?”
Bonus chapter 2 examines how marketing interacts with other functional areas of the business. One of these areas is production and operations and another is information systems and computer technology. This article in Bloomberg Businessweek, “ These Cows Will Text You When They’re in Heat ,” (November 3, 2016) describes new technology used by dairy farmers. Read bonus chapter 2 and this article. Explain how the marketing for a dairy could benefit from this technology?
I have enjoyed the wit and wisdom of the marketoonist (AKA Tom Fishburne). In the two cartoon’s you see here (scroll down for second cartoon) along with his commentary, you can see how important it is for marketing managers to provide financial justifications for marketing investments. Unfortunately, this is not always easy for marketing managers to do — recall our coverage of measuring advertising effectiveness in chapter 15. Bonus Chapter 1 digs into the importance of sales analysis, performance analysis, and cost analysis — you can also review Appendix B to read about return on investment (ROI). Explain how three concepts from bonus chapter 1 tie into the [Continue Reading …]
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.
I have a soft spot in my heart for Fargreen. The startup that emerged from the Colorado State University Global Social and Sustainable Enterprise MBA program (full disclosure, Colorado State is my employer and I served for many years on the advisory board for this program). I also know Fargreen’s founder, Trang Tran. She developed a great idea to help Vietnamese farmers while also lowering carbon emissions. What is not to like? After winning several business plan competitions, Trang is now moving her business forward. This brandchannel article “ Yale on Purpose-Driven Startups: Fargreen — Going Far By Going Green ” (May 2, 2016) is one in a series with Yale MBA students. Read the article about Fargreen. Explain how Fargreen ties [Continue Reading …]