Chapter 9 describes the product life cycle. Let’s examine the evolution of the electric car product-market. This market has been slow to take off. Did you know the first electric cars were produced more than 100 years ago? Learn more in “ The fascinating evolution of the electric car ,” (Business Insider February 15, 2017), which describes the various efforts over the last century to develop an electric vehicle. These days the electric car market is changing more quickly thanks in large part to Tesla, an outsider. This new competitor has motivated traditional automakers to put more resources behind electric cars. We are already seeing lower cost [Continue Reading …]
Marketing is most interesting when you can see many of the concepts you learn tied together. This article, “ Philly Cream Cheese’s Spreading Appeal ” (Bloomberg Businessweek, December 12, 2011) shows how some of the different elements you have been learning about in marketing can be tied together – with successful results. Sales of Philadephia brand cream cheese were pretty much flat (mature or decline stage of the product life cycle) for most of the last decade. Then Kraft researchers (market research) noticed that heavy users of the product were using cream cheese (consumer behavior) as an ingredient in their cooking — not simply as [Continue Reading …]
Growth can be a major challenge for a successful firm in a mature market. Facing this challenge, one strategy Starbucks used was based on the Seattle’s Best brand that it acquired eight years ago. Starbucks doesn’t appeal to many customers. This article “ Starbucks Targets Folks Who Shun Starbucks ” (Bloomberg BusinessWeek, April 21, 2011) and some recent television commercials for Seattle’s Best offer some insights about its marketing strategy. Compare the strategies of the two firms – what is the target market, price, product, promotion, and place strategy for Seattle’s Best and Starbucks.
A disruptive innovation “improves a product or service in ways the market does not expect, typically by being lower priced or designed for a different set of consumers” ( Wikipedia – Disruptive Technology ). This Wall Street Journal article “Using the iPad to Connect” (October 13, 2010) describes such an innovation in working with special needs kids. The iPad plus a $190 software package might replace devices costing from $2500 – $15,000. Smart phones have an amazing amount of computing capability in a small device — as does the iPad. Many smart phone users rarely talk on the device – and instead use them [Continue Reading …]
We love the LEGO story! The LEGO turnaround (as recently as 2002 the company was losing money) was stimulate by a number of brilliant marketing moves — including creative use of social media and design. This article focuses on design – something we discuss in the Product chapters in our books. See “How LEGO Revived Its Brand,” (Bloomberg Businessweek, July 23, 2010).