In Chapter 11, we take a closer look at supply chains, logistics, and customer service. The growth in e-commerce and online retailing has spiked demand for warehouses—see “ US warehouses are costly and hard to come by, as e-commerce demand picks up ,” (CNBC, June 14, 2017). Use this article to logically project how these trends will impact customer service levels and each of the different costs shown in Exhibit 11-2.
It is only recently that mattresses started to become available for sale at online retailers. For a long time, mattresses were only available at retail stores. Most were sold at department stores and specialty mattress stores. Recently, that has changed. In less than a decade, online mattress sales have grown to more than $1.5 billion annually. You can read more in this article, “ Online sales boom for mattresses squished into boxes ” (USA Today, May 8, 2017). Why were mattresses slow to be sold online? Who is the target market for online mattress sales? What changed in the market that made customers more willing to purchase mattresses [Continue Reading …]
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 …]
This blog post at Tim Calkins STRONGBRANDS blog, “ Beer and the Power of Branding ” (May 8, 2017), describes an anecdotal study that shows how advertising and branding influence how we perceive beer. Even after a blind taste test, where tasters were told which brand of beer they preferred, many stuck to their prior beliefs, built on advertising. Among the brands tested here, there seemed to be relatively little difference in taste, but much more significant preferences were exhibited for particular brands. What product categories are more likely to be perceived as different due to advertising and brand building actions? Explain your logic.
I really enjoy the Marketoonist (Tom Fishburne). These cartoons offer funny and insightful commentary on marketing practice. In this cartoon and accompanying commentary (June 18, 2017), Fishburne questions the validity of focus group research. What are some of the points made by the Marketoonist here (scroll down the linked page to see some of his previous cartoons dealing with focus groups)? When are focus groups most useful to marketing managers? Why are some marketing managers using them less often these days?
Many brands are using social media channels to communicate with consumers (B2C). Recently, some B2B firms have started using social media to reach out to organizational buyers and build a relationship and reputation among consumers or employees. A survey of marketing managers was recently published, “ 2017 Social Media Marketing Trends: Top B2B and B2C Networks and Paid Channels ” (MarketingProfs, June 6, 2017). Look at two major B2B firms Facebook pages – Cisco and GE . Review these pages and Chapter 6’s Model of Organizational Buying Behavior (Exhibit 6-4) and Major Sources of Information Used by Organizational Buyers (Exhibit 6-6). How are Cisco and GE using their Facebook pages? What do you think are [Continue Reading …]
Several artificial intelligence (AI) assistants have come on the market over the last few years. Many started on smartphones; for example, iPhone’s Siri and Google Now for Android respond to user questions and commands (“What will the weather be like today?”; “Add Dawn detergent to my shopping list.”; or “Play jazz music.”). More recently the AI assistant battle moved to the home where Amazon Echo, Google Home, and more recently, Apple HomePod have created speakers with built-in microphones and artificial intelligence. Amazon has been particularly aggressive, thinking that this might simplify shopping—resulting in more customers. They envision commands like, “Order [Continue Reading …]
To communicate with target customers marketing managers must make decisions about which media to use: television, radio, the Internet, magazines, social media, etc. Marketing managers will often keep a close eye on the media habits of their target customers. Media habits usually only modestly change from year-to-year. But the evolution of the Internet has resulted in faster change—especially among younger people. This article “ Have Media Habits Changed Among Millennials and Teens? ” eMarketer, June 19, 2017, reports the results of a recent survey of 1173 U.S. Internet users age 13-34. This article compares media usage for teens (age 13-17) and millennials (age 18-34). It also asked questions [Continue Reading …]