Melody Han's Blog

Assignment 3 in the Marketing Plan Project was blast! Ever since high school, I’ve wanted to do something fun during presentations but was never allowed to deviate from suiting up and speaking in front of the class. My team chose Starbucks as our company to analyze and it was a lot of fun working with them because we all have a great personality. I think marketing requires a lot of creativity and presenting our original ideas innovatively is a great way to inspire people and magnify every team members’ strengths.

For instance, one of my group members is extremely good at using PowerPoint and Keynote. Another group member is detail-oriented and reminds us to follow the marking rubric when coming up with different ideas to put together the video. My other two group members are good at referencing and coming up with different ideas for evaluating the marketing mix for our chosen target market. On the other hand, I am good at speaking; therefore, I was in charge of speaking throughout the whole video.

Another reason why I really enjoyed assignment 3 is that I was able to learn about all the recording facilities available for students in the CLC. Using computers and creating videos is not my expertise; therefore, I am really happy to be able to learn about such important skills as part of my assignment requirement. I believe that forming groups with random classmates is a good way to make new friends and learn from each other. In conclusion, I enjoyed the Marketing Plan project as a whole, but especially assignment 3!

During class, we’ve discussed the five-step sales process model, which I found extremely useful and engaging because a couple of my previous employers trained employees to use a step from the same sales process. For example, I used to work in a clothing retail store in Hong Kong, where I was trained for two days on step three, which is presenting and handling objections. As a classmate mentioned, most retail employers tend to focus on step three and neglect the other four steps because in the short-term, step 3 is usually what turns consumers’ interest and desire into action.

During my work as a salesperson in a retail shop, my main tasks included presenting the functions of each product to the customers and try to turn all objections into acceptance. My employer did not mention anything about following up with a customer or having a good closing statement. After acquiring more knowledge about the other four steps in the process, I believe that all employers should take all five steps in the process seriously. Even if a sales person successfully delivers the products’ benefits and gains a sales transaction, it will eventually hurt the company if the consumer experiences buyer’s remorse.  Therefore, I think it is extremely important to follow up with customers for two main reasons. First of all, it will reduce any dissatisfaction that the customers may experience. Secondly, the company can gain additional information about their target market. For example, in the retail industry, it may be inconvenient to phone every customer about his or her purchase experience. However, the company can ask for consumers’ e-mail addresses upon purchase and send them a feedback form or provide an online chat forum for consumers on the company website.

Promotion is about getting the right message to the right audience and Obama’s promotion team definitely used integrated marketing communication in their promotion video. After learning in-class that the Obama Biden campaign won both the Titanium and Integrated Grand Prix in Cannes, I went to the Cannes Lions International Festival of Creativity website to browse other award-winning promotion videos. I came upon the 2010 Grand Prix winner video by Old Spice and it instantly captured my attention because the official UBC LipDub video has a similar concept.

Before taking Comm 296, I would have simply thought that the Old Spice video was interesting, but I wouldn’t be able to go any deeper than that. However, now I am able to tell that the Old Spice promotional video used a selective demand instead of a primary demand approach because it is persuading its viewers to purchase their product (body wash). I also believe that carefully followed the AIDA model.  Using an attractive male model in the video will first capture viewers’ attention and interest. Combined with the tech savvy effects of the video and what the model is conveying through his speech, consumers will generate the desire for the product, which will eventually lead them to purchase the product.

After watching the Old Spice video, I can fully understand why so many of my first year friends came to UBC after seeing the promotional video. I’ve always enjoyed the video and knew that it was helping to promote UBC, but I finally understood the concept behind the it.

Batman is a hero for many people, whether young or old, and it is not a surprise that Lamborghini branded itself as the Batmobile. Lamborghini offers one of world’s most luxurious sports cars so why not brand itself with a world hero? Hence, when people think of Batman, they will think of Lamborghini. What better way to increase value in their brand than to associate it’s powerful, and agile sports cars with an unconquerable figure like Batman?

Lamborghini’s main target market is affluent individuals who want a taste of speed and adventure. It is different from other sports car brands as mentioned in Cody Malloy’s blog, which target mainly “classy” men because most Lamborghinis look flamboyant with their bright colors and doors that open to look like wings.

As a female and a huge fan of Batman, I am no-doubt crazy about his Batmobile. Every since I watch the movies, I fell in love with Lamborghinis. I may not be Lamborghini’s primary target market, but I can associate myself being in one, either driving or in the passenger seat. It is totally reasonable for Lamborghini to price their sports cars so high because they provide top-quality products and created value for their brand. In class, we discussed that brand equals trust and I believe that by product placing its sports cars in Batman movies, Lamborghini is promising their customers at a deeper level.

Packaging plays a vital role in marketing for manufacturers, retailers, and consumers. Each group has different concerns. For example, manufacturers would care about how the product looks and whether the packaging was practical or not. As for retailers, they would emphasize more on issues such as how to avoid theft and whether the packaging is disposable. Consumers, on the other hand, would care more about how disposable or convenient is the packaging. Manufacturers package its products in hard plastic that is difficult to open for various reasons. Firstly, it prevents theft but most importantly, it avoids fragile products from breaking. As I read an external blog post that debates about the pro and cons of having such hard-to-open packaging.

Personally, I have purchased numerous products, from scientific calculators to toys for my cousins, where I experience huge problems trying to open the packaging. My scissors nearly broke from trying to cut the strong plastic open. After I successfully slit the packaging, I had to force it open with my hands. As a consumer, I like to see fancy and secure packaging when I am purchasing a product because it gives me a sense that the product is in good condition and is high quality. However, after I attempt to open them, I experienced a bit of buyer’s remorse because there were a couple of times where I injured my hand. Therefore, I would not purchase the same product in the future.

Elaine’s blog post reminded me of Jeff’s question of whether we would take $100 today or $100 in later years. Elaine argues that she would take $100 today instead of waiting for a couple of years because she believes that prices of products will increase meaning that she can buy more with $100 now than in the future.

I totally agree with Elaine’s point of view. According to an article on Daily Reckoning, monetary inflation is our future. The article mentions that $100,000 50 years ago is considered a huge sum of money and the chances of people paying a loan that large are skim. However,  $100,000 is a payable amount today and this is all because of monetary inflation over the past 50 years.

The existence of monetary inflation discourages people from saving money. I believe that the portion of the class similar to Elaine and I who chose to spend $100 today considers money to be less valuable in the future. Hence, we prefer to spend it now. A counter argument could be if $100 is put into the bank, it would be more than $100 in future years due to the interest rate. However, I believe that even if interest rate help increase the amount, monetary inflation will still cause $100 to be worth less than today.

Works Cited:

Saxena, Puru. “Monetary Inflation Is Our Future.” Daily Reckoning. Web. 24 Nov. 2011. <http://dailyreckoning.com/monetary-inflation-is-our-future/>.

Janice Yeung’s blog post commenting on tradition versus social enterprises caught my attention. I recently blogged about a similar topic regarding the key features of social enterprises and how it is different from traditional enterprises or NGOs. However, Janice’s blog post brought up the question: can a social enterprise always stay as a social enterprise? Body Shop was used as an example in her blog because it was purchased by L’Oreal, a company that is more profitmaking based.

I would like to add on to her blog by saying that it is difficult for a company to stay as a social enterprise because unlike NGOs, social enterprises still need to make profit. Hence, Body Shop could have merged with L’Oreal due to overriding financial benefits. It is important to magnify their importance since a lot of social enterprises merge into traditional enterprises. Social enterprises help improve the well-being of society in general.

Video: Committee for Democracy in Information Technology 

CDI is a social enterprise started by Rodrigo Baggio that encourages poor people to learn how to use computers. This will aid in an increase in employment and social well being in poor countries. It can also impact future generations and the economy.

Works Cited:

powerpoint: class 20, Social enterprise and non profit management, Nov 20th 2011

When investors invest in any company, they are buying stocks. This means that they are paying for the control right and power to decide, vote as well as future cash flow gains. The investors receive dividends, which is a way for companies to pay their investors.

Canadian bank stocks have been tumbling recently however they are paying high dividends. The average relative yield of dividends jumped from around 50% from 1980 – 2005 to above 100% after the financial crisis in 2008. Uncertainty is the reason behind the high dividend yields and Michael Goldberg, an analyst at Desjardins Securities, says that the main reasons behind this are the European debt crisis and a slower growth.

When discussing banks, high dividends equals confidence while low dividends reflects uncertainty. One may ask why did the dividend yields increase in times of uncertainty. This is justifiable because when the economy is unstable, people will more likely invest in banks because they are relatively more secure. Although some bank stocks will drop, other will increase leading to a higher yield of dividends.

Works Cited

Berman, David. “How Can Banks Remove Uncertainty? Dividend Hikes! – The Globe and Mail.” The Globe and Mail. Web. 24 Nov. 2011. <http://www.theglobeandmail.com/globe-investor/markets/markets-blog/how-can-banks-remove-uncertainty-dividend-hikes/article2247570/>.

Powerpoint: class 17, Finance, oct. 27

Social entrepreneurship is a topic that I find very interesting yet is a bit confusing. A social entrepreneur has a social mission. They are people who recognize social problems and uses entrepreneurial principles to organize, create, and manage a venture to make social change. The companies that social entrepreneurs create are called social enterprises.

An article on New York Times discuss what is important in a social enterprise. Some important points touched upon in the article include: moneymaking, venture capital, and hire creatively. I want to focus on moneymaking because this question aroused in class. The article mentions that moneymaking is not something to apologize for in a social enterprise. This also separates a social enterprise from an NGO. It is striving to complete a social mission while earning money at the same time. Some companies look like they are social enterprises but do not fall in the category of one. Tobacco giant Phillip Morris is not a social enterprise even though it donates money to social causes because it is not addressing any socioeconomic challenge.

Works Cited:

“A Fresh Look at Defining Social Entrepreneurship « Razesquire.” Razesquire. Web. 24 Nov. 2011. <http://razesquire.wordpress.com/2011/07/11/a-fresh-look-at-defining-social-entrepreneurship/>.

Moran, Susan. “Some Ways to Get Started as a Social Entrepreneur.” The New York Times. Web. <http://www.nytimes.com/2011/06/23/business/smallbusiness/23sbiz.html?pagewanted=all>.

Powerpoint: Class 20, Social enterprise and non-profit management, Nov 15

The Globe and Mail provides an article that discusses Lululemon’s current problem: stocks are dropping due to a shortage in supply. Over the past year there was a 28% increase in store sales and RBC retail analyst, Howard Tubin, estimated a 10-12% increase in the first quarter of 2011. However, in March 2011, the stocks dropped 4.4% on the Toronto Stock Exchange.

Lululemon is unable to supply its customers with enough yoga wear and combined with their increasing expenses of air transportation of products, their stocks dropped a considerable amount. Lululemon’s problem occurs frequently in many companies because it is difficult to get the product to the right place at the right time in accurate amounts.

I believe that Lululemon in unable to meet their demands because they are unable to deal with variability. Randomness is everywhere in business and demand is a variable; therefore, companies make mistakes. I think that Lululemon should construct a demand forecast using market research, analysis and prototyping. Since a forecast is the possible outcomes and the likelihood of those events happening, Lululemon should use this probability distribution to improve its supplied quantity to better meet customers’ demands.

Works Cited:

“Lululemon’s Problem? Customers Can’t Get Enough – The Globe and Mail.” The Globe and Mail. Web. 24 Nov. 2011. <http://www.theglobeandmail.com/globe-investor/lululemons-problem-customers-cant-get-enough/article1945253/>.

Powerpoint: Class 15, Supply chain operations 2, Oct. 27