Rohit Bhargava (external blog) brought up a good point about treating retail workers well this holiday season. They have to deal with brands trying to communicate endless streams of information having to do with promotions. In a scramble to promote, are these retail stores treating their employees well?
Here’s the link to the article and what my thoughts were:
http://www.rohitbhargava.com/2013/11/how-to-be-kinder-to-retail-workers-this-holiday-season.html
I didn’t know what to expect.
I was assigned into a group with 5 strangers and we immediately formed a bond while going out for dinner. This bond eventually drove us to succeed.
First assignment- The Situation Analysis. What situation were we put in? Each of us capitalized on our strengths and we became focused on the task at hand. However, we could never find a time where we could all physically meet so everything was done through Skype. There was a lot of cross-editing done and we picked up each others slack.
Second Assignment- STP. I remember staying up late for this one. The challenge was in coordinating everything through Skype. We each did our part on a Google Doc and we had designated editors to edit and format everything. However there was a deep group discussion prior to this assignment. We learned the importance of time-management as we had busy schedules.
Third Assignment- Video. This is where the fun begins. Through teamwork and determination, we made self-sacrifices and set aside one day where we could all meet. Mark did most of the Visual Media work as he was the most technology savvy. We each specialized in a specific marketing mix while collectively working on the recommendations for the whole company. I learned that planning everything beforehand really helped when it came time to meet.
Reviews:
Wow, plenty of positive feedback! The experience with the peer feedback definitely made us feel good about ourselves. We definitely had a strong hook that was able to engage the audience, however, most of our actual content ended up being repetitive. We could have worked on creativity throughout the video as well.
Demand for university textbooks is generally inelastic. How do I know? I am a student. There is no substitute for the content in textbooks that are required for some university courses. That partly explains why university textbooks can be priced so high. Also, research has shown that “The publishing industry is dominated by five companies that dominate upwards of 85 percent of the market.” This is an example of oligopolistic competition. The publishing industry colludes in keeping the price of textbooks high in order to maximize profits (profit orientation). However, there are different kinds of substitutes emerging.
Many textbooks now come in bundles that include CD’s, study guides, and other content. Bundling saves costs for the company as well as the customer. This could be considered consumer oriented pricing as it maximizes the value for the consumer. However, there is another substitution for textbooks that further maximizes value for consumers- eBooks. Through purchasing eBooks, consumers get the same content of textbooks but at a much more affordable price. Ebooks are imperfect substitutes since some consumers prefer having a hard copy to highlight. However, the same core benefits of a regular textbook are still provided.
Currently, eBooks are still in the infancy stage. Demand for eBooks may not be high since it can be considered an innovation. Physical books have been around for centuries, so the idea of an electronic book may need some time for consumers to get used to. But as more and more people realize the convenience of eBooks, more and more people will adopt this program. Especially in this technology savvy generation, hardcopy textbooks may become obsolete in the future.
Links:
http://www.nbcnews.com/business/required-reading-textbook-prices-soar-students-try-cope-8C11140099
Many companies have started developing their brands in order to appeal to more target segments to capture more market share. Aeroplan’s loyalty program is a good example of this; their rewards now include tuition.
In the past, Aeroplan loyalty points were only used to pay for flights. Nowadays, points can pay for necklaces, song downloads, as well as tuition. In an attempt at extending their product life cycle, Aeroplan is constantly trying to find new users and reasons for consumers to continue using their program. By including tuition in their package, Aeroplan is able to effectively target students. Students are at a young age where brand loyalty is still developing. Aeroplan has taken this into consideration, but also saw that none of their competitors were targeting this consumer segment.
Market development is a good way of testing potential target segments without much risk. Aeroplan has identified a consumer need; students nowadays are having trouble paying for their high tuition rates. Although Aeroplan points may not pay for a student’s full tuition, students feel that “every little bit helps.” A study showed that 90% of Canadians were enrolled at least one loyalty program. By targeting consumers at an earlier age, Aeroplan is able to develop brand loyalty and attract new potential advocates to strengthen their future brand presence.
Currently, Aeroplan’s biggest challenge is in finding corporate partners as well as universities that will endorse this program. However, Aeroplan’s value-based marketing will certainly attract potential partners. Universities care about their students. That’s why they provide financial aid and scholarships. Aeroplan’s loyalty program can be seen as a type of financial aid that will make a student’s life much easier. As a student that shops for his own groceries, I feel like this program would definitely benefit me.
Mingchi brought up a good point about ethics regarding competition between small and large firms.
Research is perhaps one of the most crucial aspects of what makes marketing effective. However, does it ever get to the point where research just becomes another name for “invasion of privacy?” Although some consumers may be appalled by the way some companies invade their privacy, gathering information by “any means necessary” certainly seems like the future of marketing.
Bell Canada is planning to use information from its customers’ accounts to customize ads specifically to each customer. This is achieved by looking through customers’ internet activity, television viewing habits, and phone app usage. Lately, many companies such as Bell and Target have started analysing the behaviour of individual consumers in order to better forecast individual consumers’ future buying behaviours and then implementing effective marketing strategies to accommodate.
Companies such as Bell and Target are able to efficiently accumulate tons of internal secondary data with little costs associated; they are certainly making use of this strength. Data mining allows companies such as Bell and Target to measure trends in consumers’ values, lifestyles, and interests. This framework is key in developing an effective marketing plan. The data they accumulate, allows them to segment consumers based on different segmentation factors, then differentiate their targeting strategies. Through differentiation, these companies are able to control large portions of the market share.
The challenge with having many differentiated target segments, is finding a position that corresponds to the values of all these different segments. Having customized ads really does seem to be the future of marketing. But in this generation, we are taught to question. My question is, “Do stalkers have many close friends?”
Related Links
http://www.nytimes.com/2012/02/19/magazine/shopping-habits.html?_r=
With the rise of technology and social media, advertisements have become part of our daily lives. No matter where we go, there is always an advertisement ready to pop-up in our faces. However, how long does it take for your average consumer to start drowning out the noise? Companies are always looking for new and innovative ways to grab your attention.
Rogers Communications Inc. is planning to launch a new service that will let advertisers know whenever a roger’s user is near their own store. This service will allow advertisers to send promotions, via text, to lure consumers into their store. However, the question is whether this service will be effective or not.
Would text messaging change a consumers behaviour? Texting has, after all, become part of our daily lives. If there was an alternative homogeneous store nearby, would it deter the consumer from dropping by? If this service gained enough momentum, would every store start using it? If so, would the consumer start “drowning out the noise” of advertisements again? Consumers’ feelings about a particular company certainly does shape a consumer’s buying behaviour. And this service certainly has allowed companies to become more intimate with their consumers. In a way, this service has been a useful tool in building relationships and maybe even in creating lifelong customers. However, if all companies started using it, would it still be effective? Consumers would still go through the same buying process. If the choice of alternatives were offered, consumers would definitely evaluate other choices. This service is useful in making consumers feel like there is only one alternative. However, a competitive advantage in marketing doesn’t last forever.
When do we draw the line in Marketing? Marketing is a tool used to promote a product or service. In order for marketing to be effective, it needs to be able to appeal to a person psychologically. So, is it ever a good idea to use tragedies such as 9/11 in order to sell more of your product? On the 12th anniversary of the World Trade Centre attacks, AT&T’s twitter account uploaded a photo of a hand taking a photo of the memorial at ground zero where the twin towers used to stand. If marketing is used to appeal to people’s emotions, would you want your product to be associated with a tragedy? What are people supposed to think about your product when it is advertised like that? How do you think they would feel? Obviously, AT&T needs to take a crash course in ethics. You can’t blame AT&T for trying; businesses these days are all trying to put on masks in order to show how “sensitive” or “sustainable” they are. In an attempt to relate to their consumer culture, AT&T has crossed the boundaries of Marketing etiquette. 
Related Links: