The Team Meeting
The managers and staff from all of Pat Skene's Consumer Credit departments were chatting about Bankware II around the boardroom table as Pat arrived. The agenda for the team meeting had been set for weeks. See Exhibit 3. In attendance were Warren Wood Rosemary Naltchadjian Michelle Thomas Denise Fawcitt Vice President, Consumer Credit General Manager, Retail Lending Senior Manager, Personal Loan Portfolio Product Manager Product Manager Secretary to Pat Skene Manager, Marketing Consumer Credit
Global Expansion of Major Retailers
Retailers with unique formats and strong brand positioning are increasingly moving into other countries. Many are expanding internationally to escape mature and saturated home markets. Over the years, some giant retailers, such as McDonald's, have become globally prominent as a result of their marketing prowess. Others, such as Wal-Mart, are rapidly establishing a global presence. Wal-Mart, which now operates more than 3,000 stores in 13 countries abroad, sees exciting global potential. Its...
High School And College Advertising
For the small to medium-sized company, advertising opportunities include posters on gym boards and other news and information station bulletin boards, ads in college papers, and messages on newspaper distribution racks. More ambitious efforts include preprinted book covers and class schedule booklets, even custom publications, often tailored to and given free for use in specific courses. With the exception of college publication advertising, in-school and on-campus promotions probably require...
Keys To Longterm Market Leadership
The question of wtat accounis or tie success of loftg-lasting, successful comjjanbes. was addressed in a six-year study by Collins and Ponras called Built to Last. The Staniord researchers identified Wfb companies in each ol t8 industries, one Ihatlheyca'led a-visioiiasy company1 and one thai iney called a 'comparison company. The visionary companies were aftowledged as the industry leaders and widely admired they set ambitious goals, conrmtmicated Hiam 10 Heir employees, and embraced a h gn...
III Devising a Branding Strategy
The branding strategy for a firm reflecis iben timber and nam re of common and distinctive brand elements applied 40 the different products sold by the firm. In oilier words,, devising a branding strategy involves deciding the nature of new and existing brand elements to be applied to new and Existing products. The decision as to how to brand new products, 'is especially critical. When a firm introduces a n jw product, it lias three main choices I, It can develop new bland elements for the new...
How Good Is an Association Rule
Association rules start with transactions containing one or more products or service offerings and some rudimentary information about the transaction. For the purpose of analysis, the products and service offerings are called items. Table 9.1 illustrates five transactions in a grocery store that carries five products. These transactions have been simplified to include only the items purchased. How to use information like the date and time and whether the customer paid with cash or a credit card...
Background Analysis Of Nike And Reebok
Of the 1200 U.S. brands tracked annually by advertising agency Young amp Rubicam, Nike ranks in the top 10, among such brands as Coca-Cola, Disney, and Hallmark Lane, 1996 . The Nike swoosh is so familiar that sneakers and other company products no longer need to carry the name, just the logo. Phil Knight, CEO and founder of Nike, has made sneakers a disposable consumer good and transformed them into a status symbol. He makes shoes that are cool and makes it cool to be a Nike consumer Lane,...
Psychological And Theoretical Background
In this section we review the literature on risk-taking behavior. This literature is divided into two types. First, we review papers on the psychological determinants of risk-taking Zuckerman, 1983a, 1983b, 1984 . Second, we discuss and synthesize the hedonic aspects of consuming risky sports Celsi et al., 1993 . Subsequent to each building block of our model, we discuss the findings of our research. Figure 4.1 provides a model of risky sport consumption behavior, which is based on the two...
Tracking Satisfaction
Kevin tossed the mail on the passenger's seat and drove up the driveway. Once inside his house, he opened the Enterprise letter to find that it was a survey to determine how satisfied he was with his rental. The survey itself was only one page long and consisted of 13 questions see exhibit . Enterprise's executives believed that the company had become the largest rent-a-car company in the United States in terms of number of cars, rental locations, and revenue because of its laserlike focus on...
Test Market
From August to October 1990 Ballygowan test marketed Kisqua as a pasteurized drink in 250 ml glass bottles. The test was conducted in the Dublin area using Ballygowan's main independent distributor serving 250 GTNs combined confectioner, tobacconist and newsagents , delicatessens and petrol stations. The results were discouraging. Most of the negative reaction centred on the pack and retailers not knowing where to position the range in their store. Ballygowan's management now faced a difficult...
Psychodrama
This is also called the 'fantasy situation'. Respondents are asked to imagine that they are products or services themselves, and to describe their feelings about being used. Examples commonly quoted are motor cars, lawnmowers or boxes of chocolates. This is intended to uncover people's attitudes toward the products whether using the lawnmower is an inconvenient chore, or an enjoyable fresh-air experience, for example. An alternative approach is to ask the individual to imagine that a particular...
External desk research
The Government is a major producer of all kinds of external research data. Useful external research data is also available from trade organizations, trade publications, banks and many official bodies. The acquisition and use of external desk research data are discussed in Chapter 4. Both internal and external desk research have limitations for decision makers. Internal desk research by definition is data confined to the organization's own activities. External desk research is characteristically...
Creating Competitive Advantages
After reading this chapter, you should be able to Explain the importance of developing competitive marketing strategies that position the company against competitors and give it the strongest possible competitive advantage. Identify the steps that companies go through in analyzing Discuss the competitive strategies that market leaders use to expand the market and to protect and expand their market shares. Describe the strategies that market challengers and followers use to increase their market...
Building equity in the brand
Brand value or brand equity is a measure of the intrinsic utility of a brand to customers. It is the outcome of long-term investments designed to build a sustainable, differential advantage for the company relative to competitors. The key components of brand equity are brand awareness and brand image. Awareness derives from the strength of the brand in the customers' memory which is reflected by the customers' ability to identify the brand under different conditions - familiar brands tend to be...
Matching Campaigns to Customers
The same response model scores that are used to optimize the budget for a mailing to prospects are even more useful with existing customers where they can be used to tailor the mix of marketing messages that a company directs to its existing customers. Marketing does not stop once customers have been acquired. There are cross-sell campaigns, up-sell campaigns, usage stimulation campaigns, loyalty programs, and so on. These campaigns can be thought of as competing for access to customers. When...
Margaret Getchell Of Macys Department Store
Furthermore, according to customer behaviour expert Michael LeBeouff, when a customer has a bad experience with a seller, they tell an average of 20 other people about their painful experience. On the other hand, satisfied customers very often tell nobody else, and sometimes, just two or three other people about a good experience. There's just something about getting insulted, ripped off, or cheated that makes a person want to get the experience off his or her chest by telling it to other...
Reducing Exposure to Credit Risk
Learning to avoid bad customers and noticing when good customers are about to turn bad is as important as holding on to good customers. Most companies whose business exposes them to consumer credit risk do credit screening of customers as part of the acquisition process, but risk modeling does not end once the customer has been acquired. Assessing the credit risk on existing customers is a problem for any business that provides a service that customers pay for in arrears. There is always the...
Yahooligans
Even better than filtering your children's Internet usage, why not give them their own kids-safe start page to use when they're surfing Yahool provides just such a page called Yahooligansl Yahooligansl www.yahooligans.com is a kids-oriented directory that is part of the Yahool network of sites. Each site listed in the Yahooligansl directory has been carefully checked by an experienced educator to ensure that the site's content is appropriate for children aged 7 to 12. As you can see in Figure...
Questions for marketers
gt People, process and physical evidence 245 The re-launched Napster changes the music marketing mix 248 Key questions for marketing managers related to this chapter are How are the elements of the marketing mix varied online What are the implications of the Internet for brand development Can the product component of the mix be varied online How are companies developing online pricing strategies Does 'place' have relevance online
Step 2 Verify That Apples WWDR Certificate Is Installed
When you initially signed up for the iPhone Developer Program online, one of the first things you might have done was download and install Apple's Worldwide Developer Relations certificate. If so, then you can skip ahead to step 3. If you don't yet have Apple's WWDR certificate in your Mac's Keychain, then you'll need to take care of that right now. Using your iPhone Developer ID and password, log into the iPhone Dev Center Once logged in, click the iPhone Developer Program Portal link in the...
The planning cycle
The frequency of the planning cycle is probably greater in the fashion industry than any other because of its seasonal nature. Changing customer preferences ensures a perpetual drive for change. Volatility in terms of the seasonal variety of products offered and the speeds of change in fashions require skill, creativity, a propensity for risk taking and in-depth knowledge of end-user requirements in order for companies to plan effectively, and implement and control what is being offered in any...
Profit Impact Of Marketing Strategy Pims
In 1960, the vice president of marketing services at GE authorized a large-scale project called PROM, for profitability optimization model to examine the profit impact of marketing strategies. Several years of effort produced a computer-based model that identified the major factors responsible for a great deal of the variation in return on investment. Because the data used to support the model came from diverse markets and industries, the PROM model is often referred to as a cross-sectional...
The relaunched Napster changes the music marketing mix
The element of the marketing mix that involves the methods and procedures companies use to achieve all marketing functions. The element of the marketing mix that involves the tangible expression of a product and how it is purchased and used. This case about online music subscription service Napster illustrates how different elements of the mix can be varied online. It also highlights success factors for developing an online marketing strategy since Napster's proposition, objectives, competitors...
Tree Ring Diagrams
Another clever representation of a decision tree is used by the Enterprise Miner product from SAS Institute. The diagram in Figure 6.15 looks as though the tree has been cut down and we are looking at the stump. Figure 6.14 Often a simple line or curve cannot separate the regions and a decision tree does better. Figure 6.14 Often a simple line or curve cannot separate the regions and a decision tree does better. Figure 6.15 A tree ring diagram produced by SAS Enterprise Miner summarizes the...
Promotion Decision
Retailers use any or all of the promotion tools advertising, personal selling, sales promotion, public relations, and direct marketing to reach consumers. They advertise in newspapers, magazines, radio, television, and on the Internet. Advertising may be supported by newspaper inserts, catalogs, and direct mail. Personal selling requires careful training of salespeople in how to greet customers, meet their needs, and handle their complaints. Sales promotions may include in-store demonstrations,...
Otis Elevator Company
AC a typical bank of elevators in an oflice beilding lobby, you press Ihe up button and take the lirsl elevator that comes, with no idea how many slops there will be until you get ta your floor, how Otis has developed a smart elevator. You key in your Hour on a cenlratized panel. The panel tells you high elevator is going to lake you to your floor. Ydyr elevator takes you right lo your Horn and races back to the looby, With this simple change. Otis has managed to turn every elevator into an...
ChiSquare Test 1
As described in Chapter 5, the chi-square X2 test is a test of statistical significance developed by the English statistician Karl Pearson in 1900. Chi-square is defined as the sum of the squares of the standardized differences between the expected and observed frequencies of some occurrence between multiple disjoint samples. In other words, the test is a measure of the probability that an observed difference between samples is due only to chance. When used to measure the purity of decision...
Corporate Rebranding From Andersen Consulting To Accenture
''The name 'Accenture' is, after all, an empty vessel. ' We know what they say about empty vessels making most noise. And there has been a lot of noise surrounding the launch of the new brand - following the shotgun divorce between the accounting and management consulting arms of Andersen. In some ways, launching the new brand at the beginning of the new millennium could be seen as serendipitous. Accenture sees itself as both a symbol and a catalyst of the new economy - and there is something...
Battling for Position in the Fast Lane
In the late 1980s, Europe dominated the world luxury car market. Germany reigned with Mercedes, BMW and Audi followed by Sweden's Saab and Volvo. Rover's re-entry into the crowded luxury car market contained a clue to the future. Realizing that it did not have the scale to design and buiid a range of cars by itself, Rover made a deal with Honda. For Rover it was to be the 800, a replacement for its SD1 for Honda, the Legend. Both firms intended to sell them in the North American market. Rover...
Seven Bridges of Knigsberg
One of the earliest problems in graph theory originated with a simple challenge posed in the eighteenth century by the Swiss mathematician Leonhard Euler. As shown in the simple map in Figure 10.4, K nigsberg had two islands in the Pregel River connected to each other and to the rest of the city by a total of seven bridges. On either side of the river or on the islands, it is possible to get to any of the bridges. Figure 10.4 shows one path through the town that crosses over five bridges...
Validate Assumptions
Using simple cross-tabulation and visualization tools such as scatter plots, bar graphs, and maps, validate assumptions about the data. Look at the target variable in relation to various other variables to see such things as response by channel or churn rate by market or income by sex. Where possible, try to match reported summary numbers by reconstructing them directly from the base-level data. For example, if reported monthly churn is 2 percent, count up the number of customers that cancel...
Other elements of the communication mix
Some international firms attempt to standardize their communication mix advertising, sales promotion, packaging in all of the countries where they operate. These firms aim at an international product and company image, based on the standardization of their communication mix, or at transferring their profitable national communication mix to international markets. A standardized mix can increase the contacts with the brand name and the trademark. Advertising standardization has qualities similar...
Using secondary data
Whenever secondary data sources are being used a number of points need to be checked. a. Who is producing the data This is a relevant question because, particularly with information from trade associations, the possibility of bias is present. An association which exists on members' subscriptions, with the objective of furthering members' interests, is unlikely to publish data that is against those members' interests. This is not to say that they will publish false data, but simply that they may...
Data Mining to Choose the Right Place to Advertise
One way of targeting prospects is to look for people who resemble current customers. For instance, through surveys, one nationwide publication determined that its readers have the following characteristics 59 percent of readers are college educated. n 46 percent have professional or executive occupations. n 21 percent have household income in excess of 75,000 year. n 7 percent have household income in excess of 100,000 year. Understanding this profile helps the publication in two ways First, by...
Preliminary research
Preliminary research is often necessary before a final statement and definition of a problem can be agreed on. For example, someone may come up with the idea for a new service. Preliminary research may concern such matters as whether the market for such a service is regional or national who would use the service and what substitute services people use. Answers to these kinds of question can help to define the nature and scope of more complete research. A review of earlier research may be...
Diversification Strategy
Diversification refers to seeking unfamiliar products or markets or both in the pursuit of growth. Every company is best at certain products diversification requires substantially different knowledge, thinking, skills, and processes. Thus, diversification is at best a risky strategy, and a company should choose this path only when current product market orientation does not seem to provide further opportunities for growth. A few examples will illustrate the point that diversification does not...
Products services and service
Change each word in bold type to a related word which fills the gap in the sentence correctly. 1 We sell a very large range of goods, including fast moving consumer goods such as canned foods, cleaning materials and cassettes. 2 Of course, we also sell J_goods like milk, cheese and meat, which need to be sold within a short time. a very short shelf life. Fashion items quickly become out of date. systems and TVs, we provide an after-sales service. duration An important aspect of marketing goods...
Check Out This Cool App Tell a Friend with InApp Email and Social Networking
Similar to the concept of a Rate This App button, you can also include a Tell A Friend button in your app, enabling your customers to recommend your app to their friends and family. This is good old-fashioned grassroots marketing. By supplying your users with convenient options to talk about your app, it's a proactive step in the hopes of increasing your app's exposure and sales through the proven power of word of mouth. Nothing helps sell a product more effectively than recommendations from...
Seeking Competitive Advantage
To outperform competitors and to grow despite them, a company must understand why competition prevails, why firms attack, and how firms respond. Insights into competitors' perspectives can be gained by undertaking two types of analysis industry and comparative analysis. Industry analysis assesses the attractiveness of a market based on its economic structure. Comparative analysis indicates how every firm in a particular market is likely to perform, given the structure of the industry. Every...
Harmonize mergers and acquisitions
E-learning can be a powerful tool for streamlining harmonization after a merger or acquisition. Too often the process of harmonization drags on for months or years. Synchronous e-learning virtual classes, Web casts, peer-to-peer collaboration and asynchronous learning self-paced courses, archived virtual classes and Web casts deliver clear consistent messages about the new entity without delay. Because time and distance don't pose barriers to learning, the business benefits from a new shared...
Domestic Manufacturing Pays Off
The same philosophy that has produced such good results for Zara has led parent company Inditex to diversify. Its other chains now include underwear retailer Oysho, teen-oriented Bershka and Stradivarius, children's Kiddy's Class, menswear Massimo Duti, and casual and sportswear chain Pull amp Bear. Recently, Inditex opened its first nonclothing chain, Zara Home. Each chain operates under the same style of vertical integration perfected at Zara. Making speed the main goal of its supply chain...
Managing Differentiation
Service marketers frequently complain about the difficulty of differentiating their services on more than price alone. Price is a major marketing focus in service industries such as communications, transportation, and energy, which have experienced intense Figure 4-6 Continuum of Evaluation for Different Types of Products Figure 4-6 Continuum of Evaluation for Different Types of Products price competition since deregulation. In a deregulated environment, the continued expansion of budget-priced...
Importance of properly defining target population
A sample should reflect the characteristics of the population of interest to the study - that is, the target population. It is essential to define the target population precisely since failure to do so is likely to lead to the ineffective solving of a research problem. A population needs to be defined in terms of elements, units and time. The population for a new TV quiz programme, for example, may be defined as aged between eight and eighty who have watched an existing quiz TV programme in the...
Discussing the Issues 1
I. Select a sports anil leisure footwear company. What micro environmental trends will affect the success of the company in the decade ahead What marketing plans would you make to respond to these trends Marketing Highlight 4.2 noted the growing importance of two demographic groups, the 'Third Agers' and 'Generation Xers'. If you were in charge of marketing in a consumer healthcare company, how would you deal with the potential opportunities presented hy these two consumer groups Pressure...
Preview Case Federal Express Losing a Packet in Europe
FEDERAL EXPRESS FEDEX , PIONEER OF the express-delivery industry as we now know it, has pulled out of the European market with a red face and an even redder balance sheet. Left to fight for Europe's express package deliveries market are Brussels-based DHL, Australian TNT and new US entrant, UPS United Parcel Service . Founded in 1973, EedEx got off to a slow start - educating the American public about the value of overnight delivery took time. However, building doggedly on the advertising...
VideoEgg
Like Quattro Wireless, VideoEgg participates in many of the mobile ad exchanges like AdWhirl and Mobclix, but it also provide its own iPhone SDK for directly embedding only VideoEgg ads into your app. Its AdFrame format looks like a typical, small mobile banner ad at first glance. But then tap on it, and a full-screen, rich-media ad rolls into view within your app see Figure 5-8 . VideoEgg is different from the other ad networks in that it's focused on delivering user engagement for its...
Procter Gamble How Many is Too Many
PROCTER amp GAMBIA is THE market leader in the United States and the European detergent markets. In the United Ktat.es it markets nine brands of laundry detergent Tide, Cheer, Gain, Dasb, Bold 3, Dreft, Ivory Snow, Oxydol and Era . The cultural and competitive diversity in Europe means that even more brands, such as Ariel, are used to serve that market. Why so many Besides its many detergents Procter amp Gamble sells eight brands of hand soap Zest, Coast, Ivory, Safeguard. Camay, Oil of Ulay,...
Advantages of Television
TV has numerous advantages over other media, including creativity and impact, coverage and cost effectiveness, captivity and attention, and selectivity and flexibility. Creativity and Impact Perhaps the greatest advantage of TV is the opportunity it provides for presenting the advertising message. The interaction of sight and sound offers tremendous creative flexibility and makes possible dramatic, lifelike representations of products and services. TV commercials can be used to convey a mood or...
Segmentation
The aim in segmentation is to find groups of people who are sufficiently alike in some way to make them a target market. There are broadly two ways of doing this. The first way is die a priori approach that splits a market by some predetermined criterion like age, sex or social class. This method works when products closely align with the a priori segments, but often they do not. A priori segmentation sometimes works in new markets, hut it becomes inadequate as the market becomes more...
Prospecting
Prospecting seems an excellent place to begin a discussion of business applications of data mining. After all, the primary definition of the verb to prospect comes from traditional mining, where it means to explore for mineral deposits or oil. As a noun, a prospect is something with possibilities, evoking images of oil fields to be pumped and mineral deposits to be mined. In marketing, a prospect is someone who might reasonably be expected to become a customer if approached in the right way....