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Comm296

It’s FREE… But What’s the Catch?

If you love freebies say I, “I”!

But what’s the catch with freebies? Do companies really want to give away free products without any benefits? Of course not, every action has a purpose and companies provide free samples, coupons, etc. as a source of advertisement. For example, during Business Week people asked me where I got my cotton candy from and I directed them to Enterprize’s booth.  Unfortunately, freebies attract a lot of unprofitable consumers, that is, consumers who only want the free product but do not buy the product later and I am (not proud to be) one of them!

Categories
Comm296

Bankruptcy Brand Damage

Side note: everyone will probably be writing about Steve Jobs, but I won’t! Oh wait, I just wrote about him!!!

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Rock & Republic jeans use to be a fashionable brand sold at upscale stores until the recession hit, sales plummeted, and eventually Rock & Republic had to file for bankruptcy protection. During the recession, consumers did not spend as much on Rock & Republic jeans due to the high costs so Rock & Republic launched a recession line which sold at a fraction of the normal line of jeans; however, this attempt did not work and Rock & Republic had to file for bankruptcy protection. Today, you will no longer see Rock & Republic in upscale stores but rather at large distributors such as Costco and Zellers.

Rock & Republic’s brand image has been immensely damaged due to the bankruptcy claim and the changes. People use to buy their jeans because they were “high-end” and popular. Since Rock  & Republic is now sold at stores like Costco, the perceived value of their jeans have significantly dropped and once loyal consumers no longer want to associate with Rock & Republic because it does not fit their social norms of wearing high-end fashion.

 

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Comm296

The “Marketing” in Me

I am a manager at McDonald’s fast food restaurants and It has never occurred to me that everyday that I have worked, I have been involved with marketing. Before Comm 296, I always thought of marketing as advertising,  promotions and attracting customers to a business for sales. To my surprise, marketing is beyond attracting customers, but rather it is “creating and capturing customer value”. Customer service is an important factor at work so I would like to dedicate this blog post to analyzing McDonald’s and the marketing in me.

 

http://www.lilith-ezine.com/articles/health/images/im-fat-and-lovin-it-09.jpg

 

McDonald’s vision is to be the world’s best quick service restaurant experience. One core value to achieve this vision is that McDonald’s is dedicated to providing guests unparalleled levels of Quality, Service, Cleanliness, and Value.  Every month a “mystery shopper” will anonymously grade the quality (food), service (speed, accuracy, and friendliness), and cleanliness of a McDonald’s restaurant. A grade from a mystery shopper informs a restaurant if they are providing an exceptional experience for their customers, and thereby building a profitable long term relationship with them.

 

http://www.gx94radio.com/blogs/afternoons/wp-content/upLoads/mcdonalds-characters.jpg

 

Now what does my role at McDonald’s have to do with marketing? Plenty! However, lets look at it from the perspective on the 5 step marketing process:

step 3: Implement – Construct an integrated marketing program that delivers superior value

step 4: Monitor/Control – Build profitable relationships and create customer delight

step 5: Equity – Capture value from customers to create profits and customer equity

My job is to ensure that all crew are providing fast and friendly service and food is hot, fresh, and neat (implement). When needed I coach crew on proper procedures and handle customer complaints (monitor/control). With an excellent plan in place, we are able to “deliver superior value” to our customers (equity). Without even knowing it, I have discovered the marketing in me.

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