Analyzing and recommending solutions for a conglomerate the likes of Zara, in a video setting, was a great learning experience. As a student aspiring to specialize in finance, marketing was always an after-thought. However, the marketing plan assignments have made me realize what an impact marketing has on the success, and terminal value of an enterprise, which has everything to do with finance. Namely, recommending solutions to cloud out competitors in a competitive retail clothing industry has made me realize what a difficult task implementing an effective marketing plan really is. Conceiving a promising marketing plan is not enough, as there are always the external factors that a company must consider – for example, if the marketing plan can be easily imitated by competition. As well, the marketing assignments have reiterated my initial misunderstanding that marketing was merely advertising, because it is so much more than that. While all firms can create elaborate advertisements in the form of commercials and billboards, not all firms are able to bestow the kind of value that consumers may be seeking. In Zara’s case, the value that younger, time-sensitive consumers seek is convenience and up-to-date products; yet, it is only Zara that can provide this value due to its strong, vertical integration.

This project has also reiterated the notion to always stay positive. While my team encountered difficulties in submitting our assignment #2 on time, we did not put the blame on any single member, but instead, agreed that we would compensate for our misstep by submitting our best work for assignment #3. With that in mind, we were able to create a video that was a complete group effort, and one that we are very proud of. Learning from experience, I will triple-check that the right file is attached when submitting assignments in the future.

I’m also very appreciative that assignment 3 gave me a chance to develop my video editing skills. I always believed that video-making would be a complicated task, and while it is by no means a-walk-in-the-park, it was something that my group was able to tackle despite our video-making novelty, and is definitely a field that I look to improve in in the years to come.

For anyone looking to delve into video-making with iMovie, below are very helpful tutorials:

http://www.apple.com/ca/findouthow/movies/#enjoy

A teenager’s first car, or any big-ticket item really, is often chosen at the discretion of his parents. It appears ludicrous for any big-brand manufacturer to promote its luxurious products through mediums that pertains to primarily a teenage audience; yet, Toyota has done just that, in recently buying coveted advertising space in Teen Vogue magazine. The audience has been responsive, and the story has earned front page on “The New York Times.” The story can be read at the following:

http://www.nytimes.com/2013/03/29/business/media/automotive-industry-ad-campaign-focuses-on-young-drivers.html?_r=0

This advertisement is unconventional to begin with. The ads bear the Toyota logo, yet it is not merely promoting Toyota’s “entry-price cars like the Toyota Yaris or the Prius C.” Rather, the ads encourage teenagers to be safe drivers, and appear to be much more of an institutional ad that benefits the entire automobile industry. During a time of economic inactivity, it is surprising that Toyota is not focusing its efforts in further promoting its products in an already saturated market. However, further analysis determines that Toyota’s latest strategic move is not simply for the goodwill of its consumers.

The advertisement strengthens Toyota’s proposition of providing safety in its products, and emphasizes the company’s concern of driver education and safe teen driving. In fact, Toyota has devoted an entire website to safe-teen-driving. In effect, Toyota is establishing a brand image of providing safe, entry-level cars for teenagers that families will remember and consider when making inevitable automobile purchasing decisions for a maturing generation Z. This ad serves as a public relations tool in promoting the Toyota brand and associating it as the solution to a concern that is almost unavoidable in every teenage parent. This strategic move is surely to benefit the company’s brand image now, and in the future.

A Traditional Toyota Mass Media Advertisement:

https://www.youtube.com/watch?v=iymBRSUfz9U

Traditionally, the reason that firms have employed and put such a large emphasis on the roles of salespeople is because they add value to a transaction. Before computers and the Internet became a necessity, knowledge of different products was conveyed through salespeople as the only medium. However, Tema Frank argues in her blog post, Death of a Salesman … Let Prospects Sell Themselves, that the utilities of a human sales fleet can be duplicated and refined by computers, and at a lower cost too. She uses the company Calgary’s Optimum Energy Products Ltd. as an example, and outlines the profitability and growth of the company over the last decade despite lack of any outside sales staff. Her main arguments are outlined below:

• Humans make more mistakes than computers do. By automating the boring tasks you free up staff to spend time on things computers don’t do well, like understanding and solving unusual customer problems.
• Make sure your website provides information relevant to both the end user and the person who’s going to pay. These may not be the same people, especially in the B2B world.
• Make everything SEO (search engine optimization) friendly. That includes your catalogues, photos, videos and web pages.
• What customers really want is: knowledgeable staff, speed, convenience, and a good flow of information between you and them. Automation can help you deliver all of these well.

I argue that it does not make sense for every business to eliminate an outside sales staff, and depend its business operations solely on e-commerce and sales automation. The benefits of human personal selling are often intangible. Sure, you can measure the sales revenue generated by each salesman individually, but a lot of the benefits reaped from personal selling is difficult to measure on paper. While the educating and providing advice, and increasing convenience for customers aspects of personal selling can be replicated through computers, the aspect of salespeople building long-term relationships with customers is difficult to reproduce. Not only do salespeople in stores improve convenience for customers by assessing inventory, setting up displays for visuals, and writing orders, but their most important contribution by far is relationship selling, which is focusing on maintain a relationship over a long-term horizon and investing in mutually beneficial opportunities. Without the human element, there is nothing enticing consumers to be loyal to your firm. In terms of generating leads, and the pre-approach process using CRM systems, there is definitely value in incorporating computers. However, sealing the deal is best left to Homo sapiens.

The Importance of a Sales Pitch:

Target Corp. expanding into different Canadian regions is a textbook example of segmenting a broader overall market, and meticulously positioning your products in a way that is relatable to that specific market. The article can be read at the following:

http://www.theglobeandmail.com/report-on-business/industry-news/marketing/target-take-note-quebec-market-tricky-for-outsiders/article9259193/

Consumer attitudes in Quebec have always been distinct relative to the rest of the nation. Patriotism has obviously been a perennial concern of the French-speaking province, and that same brand loyalty applies when residents are making purchase decisions. There is an “intense resistance to switching brands, and Québécois are also far less welcoming of things that are considered foreign. However, with challenges come opportunities. Scrupulous research conducted concluded that Québécois put a much larger emphasis on “taking measures to simplify life,” and Target has realized that traditional marketing value propositions of telling a company’s entire story just will not work in Quebec. Rather, make your message simple and maybe they will pay attention.

My question is, do the benefits of expanding into the French-speaking province outweigh the costs? Geographic and demographic segmentation was taken into consideration, but the psychographic and behavioral aspects of Québécois also differ from the rest of Canada to such an extent that Target Corp may need to tailor its offering and marketing initiatives specifically for Quebec. Even if so, the loyalty and lifestyle differences of Québécois may make Target’s marketing initiatives futile. Target is displaying locational excellence in opening stores all over Canada, but is pursuing a French-speaking province that is likely to reject your offering anyway really worth it? Give me your thoughts below.

In response to Christy Tang’s blog post regarding McDonalds McCafe, I completely agree with her viewpoint that the quality and taste of McDonalds coffee is subpar relative to other brands, yet, I don’t believe it was ever McDonalds’ intention to create a premium blend coffee that will out-rival the eminence of competition such as Starbucks Coffee Company in the coffee industry.

Coffee’s line-up of McCafe products essentially increases the product mix breadth of the brand. As a study states that “54% of Americans over the age of 18 drink coffee everyday,” obviously gaining market share in the coffee industry is a substantial market opportunity. However, I believe the decision to establish the company’s own coffee line was primarily stimulated by the goal of increasing sales of McDonalds’ more traditional items. What establishing a coffee-line essentially does is diversify McDonalds’ offering, in attracting a larger, broader target market, as well as increase the value of its offerings to consumers. By offering a variety of coffees that rival competitors in selection, McDonald’s has become a single hub that satisfies all consumer cravings of a fast-meal as well as caffeine, increasing convenience for a time-sensitive population, and in effect, increasing the value of its offering. From my own experience, prior to the introduction and revamp of the McCafe line-up, I know that when I was under time-constraints in the morning, I would stop at Starbucks for a coffee and rush to wherever I was headed with an empty stomach. With the introduction of the McCafe line, I am now able to pick-up food and caffeine in the same amount of time. Essentially, a coffee-line has translated to an increase in sales of the company’s food items, which would otherwise be forgone. While coffee-supremacy in terms of quality can be a contentious topic, it can be agreed upon that offering coffee in its stores definitely increases the convenience to consumers.

The company “True&Co” has devised a clever, alternative method of promoting and selling bras online.

The company targets customers who are extremely difficult to fit, or those who are time-sensitive. True&Co’s strategy, with the clever usage of algorithms, is to put a batch of bras into customer custody that will potentially fit, and allowing those customers to return those that don’t, free of charge. While bras are considered “among the most personal items someone can buy” and a necessity traditionally purchased in-store after considerable scrutiny of different alternatives, True&Co’s business model has proven to be very lucrative thus far. The company certainly does not have first mover advantage in terms of selling lingerie online, yet True&Co boasts a healthy conversion rate (two purchases for every five fitted) that other online and offline retailers are envious of. The story can be read at the following link: http://www.nytimes.com/2013/02/24/business/bra-selling-web-site-uses-algorithm-to-determine-fit.html?ref=business&_r=0

I believe True&Co’s success can be attributed to its marketing scheme and its ability to effectively reduce post-purchase dissonance. Its business model is very similar to Zappo’s e-commerce shoe business, another company that has experienced unprecedented success selling traditionally store-bought goods online. The option for consumers to return bras that don’t fit, free of charge, is appealing for time-sensitive women, as well as those who feel uncomfortable shopping in brick and mortar lingerie stores. That opens the companies to an entire new target segment, whom traditionally did not and could not afford time spent in-store picking lingerie. As well, the lenient return policy improves post-purchase dissonance as consumers are assured, in the end, they will have paid for a product that fits perfectly. True&Co’s precise algorithm fitting method has put many smiles on consumers. It turns out math is, after all, applicable in real life.

          Nowhere were mixed emotions more prevalent than in the executive offices of the Livestrong enterprise following former cancer-victim, Lance Armstrong’s, confession of doping, throughout his illustrious cycling career. For the executives who saw the bigger picture, concerns for Lance’s emotional wellbeing was only secondary to the negative implications that the publicly televised confession would bestow on the non-profit organization. Information regarding the Livestrong foundation’s objectives and workings can be found here. The realization that the marketing face behind a lucrative business that the public has grown to worship was merely a hoax, is a classic example of a marketing-related ethical issue. The debate is whether Livestrong’s marketing scheme of using Lance Armstrong’s grit and success, despite being achieved through illegitimate means, to promote the sale of its products is ethical.

My personal thesis: it was perfectly ethical. The Armstrong endorsers knew nothing of his doping activities so they are clearly not at fault, but let us disregard that for a second. If they had known, would it then be unethical? I still think the contrary. Countless successful marketing campaigns that have made companies incredibly lucrative have all been centered on mistruths. What comes to mind immediately is the Old Spice commercials. It is intuition that using their body wash is not going to transform you into the romantic, millionaire alpha male that the protagonist in the advertisement is, yet we have become socially accepting of this fraud because it is seems relatively harmless, and somewhat amusing. What about the young scrawny me who actually bought Old Spice products based on their false premise? Whether based on legitimacy or not, Lance Armstrong’s Livestrong brand fosters hope in our population. In a society that has become cohesively socially accepting of false advertising, why should we treat this case differently?

Related Articles:

http://www.businessweek.com/articles/2012-10-24/can-livestrong-live-without-lance

http://abcnews.go.com/US/lance-armstrong-confesses-doping/story?id=18244003

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