In Chapter 3, we describe components of the external market environment which includes: (1) economic environment, (2) technological environment, (3) political and legal environment, and (4) cultural and social environment. These environments can influence marketing strategies but cannot be controlled by marketing managers. Consequently, marketing managers monitor the external environments most likely to influence the success of a marketing strategy. The evolution of the technological environment can be swift—and it influences more than just tech companies. Each spring, Mary Meeker (partner at Kleiner Perkins Caufield & Byers, one of the world’s largest venture capital firms) provides an annual “Internet Trends [Continue Reading …]
Meat is an important source of protein. However, there are problems with meat—particularly beef. It can be a source of unhealthy cholesterol. Cows are a major source of methane, which contributes to global warming. As people in developing countries income rises, their demand for meat has steadily grown. In these trends, some companies see opportunity. Impossible Meat and Beyond Meat are two companies working on plant-based burgers which they claim taste like beef without many of the drawbacks. Despite their similar product, the two companies are using different marketing strategies to generate sales. You can learn more in this article [Continue Reading …]
The Chapter 1 opener discusses Nike–a very successful sporting goods company. Recently though, Adidas has been the strongest of the “Big 3”–showing larger sales growth than Nike and Under Armour. This video and an accompanying short article “ Why Nike Is Down and Adidas Is Up .,” Fortune, June 12, 2017 provide insights. Chapter 1 introduces the concept of customer value. How might Adidas be providing more value to customers than Nike? What marketing tactics are Nike and its retailers using to fight back in the short-term?
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?