The ProComm logo depicts the dynamic nature of marketing communications Steve Toms has been teaching the MBA marketing course since 2005

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Marketing in the News | previous posts

As noted on your syllabus, to earn all 200 participation points,
you are required to submit 2 postings for Marketing in the News
by the final lecture.

A posting must contain the following information and a source,
and is submitted as an email (no attachments).

If you do not get a "RECEIVED" response within 24 yours, resend.

Email posting format

Your posting is an email message, sent to Steve.
Cut and paste the following into the body of your email.
Do not attach a Word file.

(First line)
Type the source/location of the article. If a web article, give the full web address; if a magazine, the name of the publication, date, and title of the article. Steve will create a hyperlink to the source as noted in the examples below..

(Second paragraph)
(Your first name and initial of last name) + 1-2 sentences about the topic/subject of the article (why it's of interest to the class). Do NOT copy the extra wording of the article.

(Third paragraph)
From the marketer's perspective: Apply marketing terms to the article. Type them in bold. Hopefully you will be able to apply several.

(Fourth paragraph)
From the consumer's perspective: (Here's your chance to share opinions and reactions. Tell us why you liked/disliked it. Your opinion matters. Or have fun: pose a question, take a survey, or encourage others to comment.

Avoid colors, underlining, or adding more than one line return between paragraphs. Edit for efficacy; quality, not quantity.

 


Past postings:

Andrea J. - Small businesses are utilizing planned activities and events as a new and cheaper method of advertising

These gatherings include poetry and employee fashion shows at a local lingerie shop, and comedy segments at a futon store.

From the marketer's perspective: The local businesses described below are increasing its reach into the target audience by offering social gatherings that will draw in buyers that normally would not visit the store. 

This is a different approach to advertising that increases exposure for the stores. 

From the consumer's perspective: There is a risk that is associated with this type of advertising.  Businesses can lose money if the target audience is not interested in participating in the events.

Utilizing activities and events to increase consumer traffic in small businesses is risky. The business owner must make sure that the activity or event meets the wants of the consumer.  Have you been to an event or activity at a store used to increase consumer traffic?



Juanna B. looks into the new wireless reading device, the future of book reading.  Amazon’s Kindle is a wireless electronic reader that holds over 200 books.  It is convenient, portable, and lightweight.

From the marketer’s perspective:  With gaining popularity of internet, email, and other services available on cellular phones, marketers are targeting consumers that are accustomed to reading on digital devices. 

Amazon differentiates its e-reader product with other products by having wireless capability that the competition such as Sony’s e-reader lacks. By having Amazon behind the product, consumers can readily purchase the product and really enhance the product form utility as well as possession utility.   

Oprah Winfrey and other well known artist have endorsed the products which in turn can increase the profit margin of the product.  The down-side of that is the author of the Harry Potter books refuses to have an electronic version of the book, which in turn can also hurt the profit as well. 

From the consumer’s perspective: I feel this is a great investment for avid book lovers.  However, with the economy in the state that it is $360 is pretty expensive to the average consumer. As a consumer that has tons of books at home collecting dust and taking up valuable space, this product could solve that problem. I also like the fact that I do not have to wait for the product to be shipped to me. 

One thing that bothers me about the product: after you reach your capacity will you have to purchase another e-reader?  If so, that is not very enticing as a consumer with the current product price.  I wonder if they have thought of storage solutions. 


Sheila W.  Netbooks are $300 mini computers that can do basic computer tasks. They were marketed to be used in conjunction with laptops and PCs, but are cannibalizing them instead.

From the marketer's perspective: The target market was intended to be current PC and laptop owners. Since the economic downturn, consumers are choosing to buy the netbooks instead of the larger PCs and laptops, essentially cannibalizing the larger computers.

As a result, profits from PCs and laptops are down which has already caused companies to lower prices on those products to compete.

From a consumer's perspective: Consumers on a budget will love this product. 

It will be interesting to see if companies revise their marketing strategy to increase larger computer sales, or shift focus to increasing netbook sales to try to compensate for lost profits. If you were the CEO, what would you do?


Tim L: General Electric retools to design and manufacture large appliance appealing to 75+ age group demographics. That group represents the highest discretionary income ($25b) group in the US. as their new target market during the economic down turn.

From the marketer’s perspective: GE's young design team is sensitize to the issues their customers face, on the front end of the product development cycle through the use of the “empathy sessions” and behavior research process.

From the consumer’s perspective: Safety and ease of use features to increase utility are being incorporated, such as; easier to open doors, burners that automatically shut off, new burners that do not boil over, easier to read dials, reduced bending over and increase ease of use, decrease arthritic discomfort associated with using appliances and many more.

From the marketer’s perspective: Producers of Daimler's subcompact Smart car have identified a niche market with unmet consumer needs. The car produced has features consumers desire with economical utility and pleasing to drive, making it appealing at a price a consumer will pay, even though they could afford more luxurious cars.

From the consumer’s perspective: Attractions such as good gas economy (33 to 41 mpg), price, increased utility while retaining their self image all make it a hit with consumers. I would not want one.

(Steve wants a Smart car to jut around town doing errands. It's just a matter of time.)


Chiquita H. shares the Whole story.

Whole Foods Market has stepped up its plans to contribute to the “Go Green” movement and will begin reusing its canola cooking oil as fuel in order to generate electricity in its plants.

From the marketer’s perspective: Consumers around the world are beginning to gravitate toward companies who are emphasizing the importance of a more Eco-friendly environment. As a hugely customer centric chain, Whole Foods’ marketing strategy is to target these consumers and demonstrate its efforts to contribute to the cause.

In addition to the new plan, Whole Foods Market further appeals to the “conscious” consumer with similar programs such markets that run on cell powers and wind turbines.

From the consumer’s perspective: By seemingly taking the initiative to create and implement a futuristic means for generating electricity, Whole Foods has broadened its business savvy as well as its customer base. It showed that Whole Foods has a purpose higher than just its profits.

I think the chain has found a nifty way to further differentiate its brand from its competitors. And I love it.


Timisha J. Houston Comets falls from grace. Failing economy sees newest victim.

The WNBA has announced the Houston Comets will be shut down by league officials.

From the marketer's perspective: From a marketers view, this organization had no room to expand. The efforts put into advertising did not boost the number of tickets sold. A city this large needed a male and female professional basketball team. This team was the motivation too many young girls therefore trying to remedy these ailing times were significant.

From a consumer's perspective: As a former season ticket holder for the Houston Comets, I am saddened to hear the team has been disbanded. I think there should have been more focus on a partnership with the both professional basketball teams.


Chiquita H. shares a whopping find.

Burger King’s on line “Whopper-Virgin” ads chronicle a campaign to create Whopper lovers in remote parts of the world.

From the marketer’s perspective: Internet advertising is a profitable way to engage in the direct marketing of an organization’s product. With the viral nature of most internet ads, promotion through this medium is usually very successful. The goal of any organization that wishes to sustain its business should be to keep up with the lifestyle trends in its environment.

By venturing into the mountains of Thailand, the Romanian hills, and the tundra of Greenland, Burger King sends a clear message that they will leave no stone unturned when marketing their trademark item.

From the consumer’s perspective: I think Burger King has created a very innovative way to expand their brand name within communities that may otherwise have never heard of their product.

In an effort to differentiate themselves from their chief competitor the ads encourage the participants to try a McDonald’s hamburger and then chose the one they believe to be the best. Of course each participant chose Burger King’s Whopper, however this particular marketing concept is a very crafty way to advertise.

(Steve encourages you to watch the video. Does Pepsi Taste Test come to mind?_


Vivian A. I'm not sure if Recaldent brand gum is available outside Japan.

A quick search of the Net shows that the ingredient Recaldent is being used in toothpastes and gums elsewhere, but Japan may be the only place where both ingredient and brand name are one in the same, at least as far as gums go. 

From the marketer's perspective: Using the active ingredient as the actual name to market a product speaks directly to your target market.

Unlike most products, the active ingredient is usually listed on the side of the box. This company targets its markets through penetration and product development. The most recently released variant, a citrus-berry flavored variant being marketed under the sub-branded name "Smart Time," is also supposed to satiate your hunger.

From a consumer's perspective: Eating gum is optional and to eat a gum that claims to have a little bit of liquid in each tablet which is supposed to quell your growling stomach is a great marketing strategy.

How could anyone not buy this gum? Bring it on, I will be buying.



Sandra C. is head over heels on  Buyology: Truth and Lies About Why We Buy by Martin Lindstrom,

The article discussed a lab in England, where a neuroscientist teamed with a market researcher to scan the brainwaves of subjects watching commercials. Lindstrom was thrilled that unbiased access to the consumer brain was finally available.

A difficulty of standard marketing research, Lindstrom says, is that people will not
— or cannot — provide accurate information about their mental states. When asked why they prefer a brand of soft drink, or how a warning label affects them, most people cannot give a straight answer. This, Lindstrom says, is the great advantage of brain waves.

Learn more in the book:

  • Warning labels on cigarettes don't work.

  • Traditional advertisements no longer create lasting impressions

  • Product placement only works when fully integrated.

  • Subliminal advertising can be highly effective

  • ...and more

(This book is on Steve's holiday reading list,
along with Malcolm Gladwell's Outliers.)


Kourtney T. In today's tough economy, parents are pleading with toy marketers to stop running toy ads that unfairly target kids. Parents say they just can't afford the toys their kids see on TV.

From the marketer's perspective: The toy industry needs the ads in order to make their target market, children, aware of new products available this holiday season.

Therefore, toy companies cannot and will not stop advertising to kids.

Research has shown that targeting ads to children works. Even through rough financial patches, parents have always found a way to get what their children want.

From the consumer's perspective: It is difficult for parents to say no to their children, especially during the holiday season. Children don't understand financial hardships and it is difficult to explain it to them. One man in the article urges families to scale down their gift-giving and spend more time playing tighter.

I agree. I think this is a perfect time to teach your kids about the non-material side of Christmas.


Mary D. shares how research reduces risk.

From the marketer's perspective: The marketing concept: Frito Lay Japan introduced “twisted Doritos in different favors 3-4 years ago and now they plan to introduce and new “Honey Butter” Doritos.

Fritos has never caught on in (right product) Japan but the twisted Doritos most favored in Japan, mostly the savory favors, BBQ, sour cream and onions, etc.

Marketing Strategy: the target market was guesstimated to be female Japanese because they are more apt to go for the non-savory brands. Japanese consumers are use to getting mixed signals. Thus introducing sweet and savory under the same name would be nothing new (Product development).

From the consumer's perspective:  Assumption: Frito Lay Japan made a lot of assumptions here.

As a consumer I would not purchase the product. I know the sugar content of the product and because I am diabetic would not purchase for myself, though I know several friends that love them.  The concept is a good one but with the latest healthy eating wave it may not do as well in the USA.

top  | question?


Julie L. - A new anti-energy drink, Drank, created in Houston is causing an outcry over how it is being marketed and the ingredients.

From the marketer's perspective: Dranks unique selling proposition is "slow your roll". The marketers took a risk in naming this product Drank as it specifically aims the target market for this drink to young teens up to young 30's who want to be hip and embrace the hip hop lifestyle.

The drink contains calming agents that have been helpful for people suffering from insomnia and stress-related illnesses.   

From the consumer's perspective: I thought this was an interesting article and can see why this has caused a stir from the readers perspective.

If I was a parent, I would make sure my child did not consume this product and mix with anything that would make a lethal combination. I think that youth will be drawn to the packaging and pure curiosity of the drinks effects.

Julie wonders what you think?


Amanda J. Target supports St. Jude Children's Hospital Thanks and Giving Campaign and The Salvation Army.  This holiday season, designated proceeds resulting from items included in the 'Nice Twice.

From the marketer's perspective: Public relations efforts may be beneficial during difficult economic times, where organizations and individuals are affected. 

Target realizes its social responsibility and chooses to contribute through "strategic philanthropy".  Target utilized the proceeds of product mix in order to contribute to organizational and individual needs

From the consumer's perspective: I believe that giving satisfies a want and a need to belong (to contribute to community) as listed on Maslow's Hierarchy of needs.  Target's efforts have a positive effect on my personal perspective, because they realize that their profit may be best used to assist others.

(Steve adds: And how about esteem -- feeling good or better about yourself?)

Amanda J. shares more.

American Honda will introduce the new Ecological Drive Assist System, an interactive, gasoline-electric hybrid automobile. The Eco Assist product updates and alerts driver's performance/information and its effects on the environment.

From the marketer's perspective: The Eco Assist creates a competitive advantage.  Honda realizes that customers want to contribute to "go green" and environmental efforts.  Public relations efforts to introduce Hondas new, upcoming product, create awareness and an early appeal to environmentally conscientious individuals.

From the consumer's perspective:  Consumers may view this product as a want, as they wish to be environmentally accommodating, or need, as the environment continues to be negatively affected by society. 

I believe that consumer knowledge and product pricing are important factors affecting consumer purchases for hybrid automobiles.

top  | question?


Sheila W.  For families that prefer to go out of town for the holidays, now seems to be the time.  The cruise industry is offering some great deals to help generate consumer interest and increase profit.

From the marketer’s perspective: The current marketing strategy of the cruise industry is to increase affordability by offering deals to their customers

In the current economic climate consumers are more cautious; discounts offers can motivate shoppers to buyDemographics for typical passengers are 49 years and older with an income of more than $104,000 per year. However, cruise lines are looking to expand their target market by advertising bigger and better ships.

From the customer’s perspective: When I read the article and realized they were advertising a 4-day trip for only $149, it made me seriously consider it. 

I hear of more and more families that want to “get away” and yet spend more time together at the holidays. Carnival Cruises at least, has offered an affordable way for families to do that. The industry is interesting in reaching a broader market and decreased pricing will have a definite appeal.

Lower cost can sometimes scare consumers because they are afraid of getting “less”.  However, Carnival is known to be a reliable brand which would soothe the fears of buyers. Either way, a cruise to Cozumel for $37.25 a day is pretty hard to beat.


Sandra C. comments on Cyber Monday:

From a marketer's perspective: To profit from Cyber Monday, companies are motivated to change their marketing strategy. They realize that they must focus on better advertising. Cyber Monday offers retailers the opportunity to reach customers unwilling to fight the crowds of Black Friday.

From the consumer's perspective: Companies have to change their marketing strategy, making it easier for people to shop and judging the sales discount. With rising gas prices and economic hardship, consumers are trying to save money.

I  must admit that though I do not look for deals on Cyber Monday, I like the concept of shopping from home. I think it is a creative way to help those who otherwise could not get around to doing their holiday shopping.


Candace H.  says that AT&T’s exclusive New Blackberry Bold is the fastest and the most powerful Blackberry ever on the 3G network.

From the marketer’s perspective: AT&T is positioning and marketing this new product as the fastest, most powerful Blackberry ever, based on the AT&T 3G network.

In today’s society consumers want everything fast so AT&T is making use of current technology by making the already popular Blackberry faster.

Packaging as sleek and elegant; it complements the high resolution and ultra-bright display.

From the consumer's perspective: I myself am a Blackberry user and love it.

Compared to the Blackberry Curve and the Blackberry Storm (which is not offered by AT&T) it is faster and more powerful.

The 2-year contract price is $399, which I think is a little expensive in these economic times. Some may feel it is a small price to pay for more power and more speed or is it?


Vivian A. heads east to find Yamazaki-Nabisco premiers Japan-only Ritz Cheese Crackers

This new "cheese sandwich" style Ritz Crackers were recently introduced to the Japanese market. One features Camembert cheese sprinkled with black pepper; another with Cheddar and Gorgonzola cheeses. Each pack contains nine sandwiches (388 calories). At a local convenience store they are priced at 158 yen (about $1.63).

From the marketer's perspective: Nabisco new idea of Market Development and Diversification is warranted in the current economy today to make a profit.

Making a product that is Targeting the right market is a positive marketing move. RITZ crackers are sold in the USA. Name recognition in a Japanese market will warrant a product package written in Japanese, and containing additional ingredients for the Japanese market. This will improve its marketability. The price of the crackers is comparable to what we pay in the USA.

From the consumer's perspective: Having a cracker with Japanese flare added to it signifies the uncontrollable variables like “Socio Cultural” that were taken into account during this product development.

The consumer is more likely to purchase this product because of the name recognition in Japanese, its form as presented to the consumer.

top  | question?


Arquella H. asks: Is Circuit City’s marketing strategy working?

Circuit City filed for bankruptcy, closing hundreds of stores, being delisted from the NYSE, and still continuing to market and advertise.  

From the marketer’s perspective: For the holiday season, sales normally increase. The guarantee is for any order $24 and up, and the shipping is free. If shipment not received within 24 hours, the consumer receives a $24 gift card to Circuit City – guaranteed.

This seasonal promotion not only will meet the needs of the target market, but the Circuit City brand will also continue to be in the forefront, despite the Company’s challenges at this time to keep it competitive in the retail industry, especially during this holiday season.

From the consumer’s perspective: Yes, we are officially in a recession, but consumers are still purchasing merchandise from retailers like Circuit City.

When I saw the advertisement/commercial for Circuit City, my interest peeked at the $24. I say, give Circuit City a chance. The economic situation is looming over them.  Try out the $24 in 24 hours deal.


Mindy L. – A New York-based company that installs advertising displays was preparing for a downturn in business due to the economic struggles facing the retail industry. Instead they found no shortage of advertisers and were able to convince landlords to turn vacant storefronts into advertising space that would generate revenue.

From the marketer’s perspective:  Inwindow Outdoor is able to offer the perfect marketing mix, with the variables being not only controllable, but serendipitously supported by the tough economy. 

The product, a floor to ceiling 25 to 30 ft. wide high-definition vinyl overlay offers the purchaser an advertising opportunity to become the largest retailer in a mall. The price for a four-week rotation, at a flat rate based on the ad size. This represents advertising dollars spent at the most meaningful place, the point of sale.

The retailer’s exposure is selective in that it reaches the target audience of potential customers already walking along those streets or in that mall.

From the customer’s perspective:  For the shopper, the ad message can motivate the customer to think about the retailer, and the positive perceptions created by the graphics are a greater stimulus to shopping than rows of dark and empty stores.

The messages can be designed to appeal to distinct group of buyers frequenting a specific location.  Marketing strategies designed to speak to the different needs, characteristics, or behaviors of a market segment is likely to be more successful. 

I love the logo and the clever tag lines.


Susan B. takes to the street. The Sanyo Electric Co. is launching a new electric hybrid bicycle that enables riders to climb hills easier.

Sanyo hopes to increase its market position in power-assisted bicycles, demand for which has almost doubled over the past eight years.

From the marketer’s perspective: The hybrid bicycle is marketed to those individuals with a growing interest in tackling global warming. The bike can travel 1.8 times faster than a conventional bike. 

Sanyo, which rebranded itself as a purveyor of green technology, hopes to improve its market position.  The bicycle sells for around $1,430 dollars and will be available in stores in Japan in February 2009.  There are plans to launch the bike in other countries in the future. 

From the consumer’s perspective: This new technology may entice consumers who would not normally be interested in using a bicycle to try this form of transportation

It remains to be seen how successful a product such as this would be in a country such as the United States. What do you think?

top  | question?


Timisha J. comments on our continuing Blackberry discussion.

From the marketer's perspective: The number of consumers fascinated with Blackberry devices is overwhelming. Exposure created by Verizon Wireless convinced users this would be the better device. This product was not marketed for any specific demographic.

From the consumer's perspective: The idea of having a touchscreen is sophisticated, to stay the least. Several of my friends have purchased this phone and all have expressed dismay with this device.

Are you satisfied with your Storm?


Valerie C. first responds to Kimberly W. regarding her One Sentence Persuasion Course posting.

(Edited from Kimberly's posting)
The sentence was convincing
but I consider myself a pretty smart
consumer and I didn't buy it. 
Techno-jargon does not sway me...

I actually have been convinced using simpler methods of advertising, such as the corniest infomercial and scrubbing bubbles in a shower.

For me it is more visual than techno-jargon; therefore, the article still holds a burden of proof on some of the most savviest consumers.

Valerie says: I beg to differ. Although Mr. Warren did not use many examples, his message is clear: Relay a concise message that captures the essence of what you want the listener to grasp and what the listener will gain from listening, all in one short sentence.

While television advertisements might be laden with motion effects, using your example with the scrubbing bubbles, it is not the picture of the scrubbing bubble that makes me want to purchase the product, it is the slogan, "We work hard, so you don't have to," that makes me want to try it.

(Steve comments: It's most interesting to note value in both responses when each is coming "from the consumer's perspective." Kimberly's experience is totally valid -- for Kimberly. Now read Valerie's take below. Let's see if anyone disagrees with her.)


Valerie C. makes her own comment about the One Sentence Persuasion Course.

From the consumer's perspective: I believe concept truly works. I have a short attention span, especially at corporate meetings -- especially if I figure out there's nothing to gain or learn.

However if a summation of what the presenter is expecting to convey, and how the message will be beneficial to me, is emphasized at the beginning of the speech, I will be more apt to listen.

I recently had a meeting with the CEO of my corporation to review a 526 page data analysis. Her secretary allotted 20 minutes for this meeting: it turns out that most of the CEO's meetings are given about that same time frame.

This, the secretary informed me, is because the CEO is too busy to sit for hours; she expects everyone to be prepared to deliver the synopsis of one's review,  how the corporation can improve, and what steps might get the corporation to the desired outcomes.

From the marketer's perspective: Hence the slogans and jingles we hear on the radios and television. Many commercials use this tactics, L'Oreal says, "...Because you are worth it." Lakewood Church says, "...Discover the champion in you." JIF says, "...Moms like you choose JIF."

If it is a trick, like the illusion of magic, it works.

Advertising,  such as these examples, not only serve the purpose to make the consumers aware of the product, it helps in positioning and differentiating the product from its competitors, and pushes the listener or consumer to try the product.

In crucial conversations it is not the length that holds the attention of the listener, it is how succinctly put together the message is.


Betty E. catches up to The Paper Chasers:

Xerox is hoping to make a profit by teaching other companies how to cut back on its use of paper. Yes, you heard me right, Xerox is talking "Green"!

From the marketer's perspective: Xerox has invented a new technology called erasable paper, which allows companies to be able to reuse previously used paper instead of throwing it away. The newly-blank paper can be placed back into the printer to use again and again. Over time, Xerox believes that its latest technology will save millions of dollars in paper costs–and thousands of acres of trees.

Xerox is pushing solid ink, blocks that melt once placed into the printer. And a new kind of toner that requires 25 percent less energy to produce.

From the consumer's perspective: This is really good news for all you proud "green" folk. I applaud Xerox’s efforts to cutback on the needless waste of our planet’s energy and natural resources. Moreover, I believe that consumers will be impressed by the company’s latest move to cut back on paper consumption. Other companies may want to take notice.


Ticki V. adds to Andrea's previous posting on Nike's social networking:

Here's where you can find out more about Nike’s social network; it's up and "running."

Nike is winning a new marketing game than other older corporations such as Coke, Verizon or General Motors. It has built brand loyalty through online technology. 

The technology tracks data of every run and connects runners around the world. Nike has built a “legion” of fans just in August 800,000 runners logged on and signed up to run in a 10K race sponsored by Nike.

What's next? How about promoting promoting basketball shoes?


Fredalina P. feels that Black Friday sales are not worth it.

It's too stressful to face that mob of crazy people. I usually go a couple of days later, but this year: forget it! I'm shopping for the remaining gifts
online.

Believe me when I tell you I had a horrible experience last year at Walmart on Black Friday...not to mention losing sleep just to wake up at 3:15 AM to get in line. I refuse to deal with that drama.

So, Candace H. offers an alternative...

Cyber Monday refers to the Monday immediately following "Black Friday." It is the "unofficial" kick-off of the holiday on-line shopping season of the U.S. between Thanksgiving Day and Christmas.

From the marketer's perspective: "Cyber Monday"  is a marketing strategy created by shop.org that positioned itself as a busy day for on-line retailers. The premise is that consumers would return to their offices after "Black Friday" weekend, making purchases on-line that they were not able to make in the stores.

"Cyber Monday" has evolved into a significant marketing event, in which on-line retailers promote low prices and promotions. With on-line retailers advertising free shipping and satisfying the consumer needs and wants by offering different financing options which enhances possession utility, sales may remain steady.

From the consumer's perspective: I do not really do a whole lot of on-line shopping except for a book for class every now and then. But, if the same deals are offered on-line as opposed to dodging long lines, dealing with nasty salespeople and having the convenience of shopping from your own home, then I think it is a great idea.

People who may have not gotten into the "Black Friday" getting up at 4 and 5 in the morning can just click on their computer and find some of the same good deals without dealing with the chaos.


Monieek H.  As the country’s financial crisis continues, consumers look for ways to save money and stretch their grocery budgets anyway they can. The Hormel Food Corporation reports a sharp increase in the sale of SPAM.

From the marketer’s perspective: Hormel Foods Corporation produces a variety of meat and food products, and markets those products throughout the US and abroad. In addition to pork and turkey, The Company manufactures and distributes branded, value-added consumer items.

Hormel’s marketing campaign includes web, print and television advertising with the slogan and USP, “Hormel Since 1891”. The company strives to position itself in the marketplace and offer products that are high in quality, affordable and tasty.

From the consumer’s perspective: With competition from Smithfield Foods and other food producers, Hormel must continue its marketing strategy by expanding is physical distribution and penetrating other market groups. Knowledgeable, savvy consumers who are in tune with their needs and wants will continue to demand high quality, value-added and delicious products.

Note: Did you know that 13 restaurants in Austin, Minnesota (home of Spam) have Spam on their menus (see image above)?


Though dating back to October, Monieek H. shares this article that helps us better understand these marketing terms.

Earlier this year, Starbucks released a list of 600 company-operated stores scheduled to close across the United States.

From the marketer's perspective:  Facing a slumping economy that threatens to cut into its customers' coffee budgets as well as increased competition from McDonald's and Dunkin Donuts, Starbucks is testing the marketing concept of offering a bottomless eight-ounce cup of coffee priced at $1.

The Starbucks Corporation expanded its demographic by further penetrating the market and building outlets in new housing developments (the suburbs).

The coffee giant wanted to satisfy the needs and wants of its target market and increase profits by reducing customer wait time To reduce wait time, Starbucks built additional outlets on opposite corners.

From the consumer's perspective: As Americans tighten their budgets and brace for an economic downturn, Starbucks' customers may have less money for discretionary purchases. As competition increases among vendors to satisfy needs, concerned consumers have become increasingly price-conscious and marginally less concerned with staying loyal.


Arquella H. checks out the latest on an Apple product that’s going green. Not only are they dominating the market with the iPhone and iPods, their laptops are green. Yes, they have environmentally friendly laptops. Check it out (video on Utube).

From the marketer’s perspective: Apple’s marketing concept was motivated by the consumer’s desire to “go green” in every aspect of their lifestyles: “highly recyclable…energy efficient…designed with the environment in mind.”

In addition, the “Green Laptop” has no toxins (like the others on the market), and packaged in smaller boxes for shipping (which is also good for the environment). It continues to live up to its brand of products and its unique selling proposition – “We provide a lifestyle with our products.”

From the consumer’s perspective: “Going Green” is music to my ears.

Apple is standing by its brand and USP for providing for my lifestyle with their products. This is a selling point for me! The Green MacBook will position Apple as a leader in this area as they continue to market, especially placing ads on sites like You Tube.

Any company that develops a product to ensure the environment is safe is where I want to spend my money.


Kimberly W. unconvinced by content in the One Sentence Persuasion Course article.

From a consumer's perspective, this article could have almost been true if the writer would have provided more substantial examples. 

The sentence he provided was convincing but I consider myself a pretty smart consumer and I didn't buy it.  Techno-jargon does not swayme, although I know several people that could easily be swayed. He writes this article as if mostconsumers fall prey to this style of advertisement.

His example of the magic store did not help either as I have never wanted to know the secrets behind magic.

In my reflection of this article, I actually have been
convinced using simpler methods of advertising,
such as the corniest infomercial and scrubbing
bubbles in a shower.

For me it is more visual than techno-jargon; therefore, the article still holds a burden
of proof on some of the most savviest consumers.

(Steve wonders: Do you agree with Kimberly?)


Maija M. shines the light on HP finds a new niche to penetrate the software and electronic computer market.

It's a display! It's a Notebook! It's HP's TouchSmart tx2 Tablet PC! It's the tx2, a consumer-oriented multi-touch tablet PC.

From the marketer's perspective: The tx2 allows the consumer to use their fingertips to breeze through websites and files. It gives the user the option to draw and write directly on the screen. The screen swivels, will lay flat and even fold over. And it's a "go-green" product.

From the consumer's perspective: For most high tech products I am usually in the "late majority" to "laggards" percentile of consumers to purchase.  However the advertising, publicity, articles and consequently the knowledge I now have about the tx2 as given me enough motivation to push me into the  "early adopters."

 I would be an "innovator" but I have to utilize the birthday/Christmas present push in order to complete the transactions to obtain the tx2.  The tx2 upon initial review is competitively priced starting at $1149.

(Steve adds: This example also helps us better appreciate the Hierarchy of Effects.
It took knowledge for Maija to move from knowing to liking!)


Shanna L. found the article about garage sale popularity: some people are reporting purchasing gifts for others this year!

Garage sales also provide extra money to purchase gifts from more mainstream retail markets.

From the marketer’s perspective: The marketing strategy is to create an appealing showcase for pre-owned merchandise, earning valuable cash in these uncertain economic times.

One seller noted that many of the garage sale shoppers or consumers seem to be new to garage sales and are still paying the ticket price.  Advertising for garage sales varies from street signs to newspaper ads.

From the consumer’s perspective: Families are trying to prepare for any looming economic crisis and don’t want to pay top dollar for merchandise so this is a viable alternative. For the newer garage sale consumers they are part of a target market created by the current economic situation.


Grace C. reports on the “Invasion of Netbooks”, the new craze, it is portable, inexpensive and works like a PC.

From a marketer’s perspective: This NEW Netbooks manufactured by Acer and Dell was geared towards a specific niche of consumers “ the traveler”. The advertising focuses on the needs and wants of traveling consumers who want to travel light and keep in touch with emails and internet access.

Cannibalization is projected to be occurring in about 8-10% of the market. To combat the competition Acer and Dell companies would have to increase sales of their Netbooks in order to make profit in the early stages. 

From a consumer’s perspective: With the changes in computer technology these days, it seems to me that most consumers want to spend less money for a good product because in the next 6 months the computer would be outdated.

The Netbook appeals to the consumer when faced with a choice of buying a computer that is heavy and expensive.

As a consumer, if you were faced with buying a computer today in this economy what would be your choice? 


Tim L. finds that Marketing Myopia is alive and well in the United States healthcare provider system for outpatient/clinic services.

Although the baby boomer demographic is coming more frequently to healthcare systems for services with higher acuity needs, it is a mature market, not a growth cycle as some CEOs may believe.

The healthcare provider system as a whole has not attended to the buyer/patient needs in the delivery of their product. The product in this case is the buyer/patient wishes to feel better and/or to have a medical situation corrected if possible with best outcomes and minimum hassle. The hospitals within the healthcare provider system need to change from being a “provider” to a “deliverer” of this product, which is shifting from seller to marketer of their product(s).

Niche markets have evolved within the health care provider system outpatient/clinic services. This has come about to attended the unmet needs of patients as they relate to the 4-P’s in delivery of services; product, place, promotion and in some cases price. Examples of these niche markets are: IV therapy, dialysis, physical therapy and various other outpatient care/treatment in their home.

From the marketer's perspective: Hospitals could increase their brand recognition in going from “provider” to “deliverer” of medical services to patients, which is a major paradigm shift.  Marketing strategies must be incorporated during the planning stages for new out patient clinics relating to location, access, proximity of the building and services delivered (especially in new building projects).

Expanding the concept to the next step, health “delivery” services would be in the same area minimizing/eliminating patient movement and long waiting periods for an enhanced experience by the patient and better throughput for the system. Finally, taking the delivery of services directly to the home or being an agent for other care providers systems will enhance their product mix and utility.

From the consumer's perspective: The ease of home care when possible is the most sought-after delivery mechanism. The next choice would be to go to remote locations where; parking is easier/less costly/closer to treatment, waiting times are 15 minutes/none, doctor’s visit/lab work/diagnostic imaging/pharmacy are all in the same immediate area under “1” appointment opposed to many.

All of this reduces the time I loose seeking the services and enhances the interaction between my “providers” and I. The potential to attain the services outside of M/F, 8/5 with expanded hours/days to help me as a consumer seeking services would be positive. All of this will enhance my experience while meeting my needs, when I am truly feeling bad to begin with, and everything is amplified due to the illness!

The Health care delivery systems cannot continue current practices in providing care for their consumers. Consumers are becoming more aware of who is more sensitive to their needs while providing the same/better quality of services at a lower cost.


Davetta Y. asks: Although retailers are lowering their sales prices, do you really want what is being sold? Can we afford the Christmas spirit of 5 or more years ago?

From the marketer’s prospective: Retailers research early before the season even hits. They have knowledge before-hand of what items they will place on sale for the holiday season. Because the economy is declining, retailers develop different marketing strategies to attract customers.

Macy’s Store current marketing strategy is its “Believe” campaign. Macy’s has placed Santa mail letterboxes and activity centers in its stores. They are also advertising “40% to 75% off plus and extra 20% off”.  To make a profit, retailers will have to place items on sale that are inexpensive and lower quality but, are made and  look just as good as a designer item to motivate  the bargain shoppers to buy more.

From the consumer’s prospective: This article is definitely an eye opener.  I have wondered what marketing strategy works to keep stores like Macy’s and Dillard’s open, while other chains are closing?  

I never thought that retailers were tricking me into buying the lesser brands because it’s on sale. After reading this article, I thought back: I haven't seen a cashmere sweater on sale, but I have seen plenty St. John’s Bay Sweater’s (JC Penney) on sale in multiple colors.

I am a devoted Marshall’s, TJ Maxx and Loehmann’s. For those who do not know, these stores carry often the same name brand items that your will find at Macy’s and Dillard’s--at a lower price.

By satisfying both needs and wants, a retailer will attract loyal customers that may not spend money anywhere else but that particular store.


Betty E. says: Blackberry's NEW "Storm" is set to give the competition a run
for its money
–Or will it?

From the marketer's perspective: The NEW BlackBerry Storm comes complete with messaging and a galore of multimedia features, along with a groundbreaking touchscreen. Measuring 4.4 by 2.4 by .55 inches and weighing 4.4 ounces the Storm has positioned itself somewhere between the iPhone and the G1 in terms of size and overall weight. The big draw to the Storm is its 3.25-inch touch display, its good looks, and affordability ($199 with a new 2-year contract).

From the consumer's perspective: It appears that Blackberry's new Storm has missed the mark in several notable areas. The Storm's coolest feature reveals one of its key weaknesses. By doing such a good job of replicating the old BlackBerry clickwheel with ClickThrough, the Storm essentially relies on the standard BlackBerry interface—complete with contextual menus and zillions of sub-menus that are easier to navigate with a jog dial than via touch.

In addition, options that Blackberry's RIM (Research in Motion) could have surfaced with touch controls (like "Send," for instance) must be accessed through the familiar Menu key.

I would recommend this phone to consumers, with a caveat that they should know and understand ALL the facts about this phone before agreeing to this 2 year contract.


Luci C. has more to say on this topic. She wonders: Is the Storm a real rival?

From the marketer's perspective:  Verizon Wireless and the makers of the BlackBerry brand of mobile phones, RIM (Research in Motion), launched the Storm in an effort to offer something new to BlackBerry devotees.  

From the consumer's perspective: As a brand loyal BlackBerry user, I was excited to learn about the new Storm and it's virtual keyboard feature. The company aired many advertisements and launched a massive public relations campaign which I heard about on radio and TV during the days leading to the launch.

I have been on the lookout for something to replace my old BlackBerry Pearl, but hadn't gotten any motivation to go with the ubiquitous iPhone, which seems to have incredible market penetration. It annoys me a bit the only distribution channel and provider is Verizon Wireless and that I will have to switch service providers if I decide to get a Storm. 


Omobola D. finds a cold approach to marketing.
Marble Slab also made use of facebook which now has more than 7000 members.

From the marketer's perspective: Marble slab's idea is great for Americans during the economic crunch by making use of technology. This type of marketing promotion will boost sales and number of customers that visit marble slab during the promotional period. According to the article, 

From consumer's perspective: I think the idea is to reach out to everyone where marble slab is located, especially targeting young to middle-aged individuals.

Consumers will be more willing to a buy a discounted product. With the economy so down, consumers want to be able to enjoy the things they used to, but at affordable prices. I think the use of technology is a better way of meeting the needs of Americans instead of coupons.

This means consumers are spending money to save money.


Steve T. is a member of the September EMBA marketing class.

He shares this with us. Porsche Presents First Photos of the Panamera Gran Turismo. Click the link to see the car.

Well, many of us know that Porsche’s unique selling proposition is being the best sports car in the world.  When you hear ‘Porsche’, you think “fast”, you think “hot,” you think “sexy,” you think “driver.”

Porsche's unique four-seater was conceived and designed as a four-door grand touring sports car. The Panamera designers have succeeded in positioning it as a brand-new and truly different model while retaining the looks of a typical Porsche. Also, it stands out in its market segment, in that it is wider and lower than comparable four-door models.