Marketing professional services

Professional service industries are faced with marketing themselves in a similar fashion to other businesses. The major difference is that services are more difficult to market due to the lack of specific goods. These individuals must distinguish their identities from other established companies in order to maintain a reputable name and overall image. When a service is considered inadequate, the industry may suffer, but not as drastically as the business itself. Common styles include minimalism, hard-selling, and professionalism; the most beneficial style for marketing professional services would be from a professional approach. It is designed to incorporate the company’s ethical standards into any project. It doesn’t oversimply the marketing process compared to a minimalistic style or develop a sales-oriented monster such as hard-selling techniques. Marketing strategies are an entirely client-based segment and “many professional firms see the key to growth to lie in expanding their services to existing clients” (Kotler & Connor, 1977, p. 73). All customers want to believe they’re receiving the best quality for what they pay for. The next major step would be to identify and cultivate potential clients. This would range from legitimate advertising strategies by the company to phone calls from prospective clients about any available services. Many other marketing strategies can be correlated to previous mentioned in some way.

Companies need to consider any vital procedures that are required in order to achieve success in marketing their professional services. Companies should rely on the expertise of a marketing team to conduct a formal and proper analysis. They would create a specialized marketing team, or department that would conduct research, present the findings, and advise companies of further action. Overall, company procedures are intended to offset customer-based strategies.

References:

Kotler, P., & Connor,Richard A.,,Jr. (1977). Marketing professional services. Journal of Marketing (Pre-1986), 41(000001), 71.  

Why is Public Relations Important?

Why is Public Relations Important?

PR or public relations is nothing but the practice of protecting as well as enhancing the reputation of any particular organization/firm or for that matter any individual. In today’s world of fierce competition, where every organization strives hard to work toward its brand image, public relations have become the need of the hour. It is essential for every organization to communicate well with its public/target audience. The correct flow of information is essential. Here comes the importance of public relations.

Public Relations can come in various forms and provide a specific task or general information.  Public relations examples can be as general as new ad campaigns, public announcements and to persuade the general public to vote for a candidate running for public office. Public Relations can be as simple as a department office in a company that deals with public image.  Usually when bad things happen, we tend to think of it as a public relations nightmare.

Public opinion IS the heart of what public relations is about.  The whole point of relating to the public is to maintain a positive opinion by the public.  Public opinion can vary and you will always get a wide range of opinion, it is the public relation department responsibility to find out what the public opinion is and to help sway that opinion depending on what the desired outcome is.

Publicity is powerful because for a brief moment, you have a captivated audience.  Restaurants are successful for a number of reasons, one of those reasons is because humans have to eat to survive, in essence you have a captivated audience.  When a customer walks in a restaurant, they are going to eat, just how much is when a professional server comes into play, but you are pretty much guaranteed a sale.  It is in our human nature to be social creatures, if a product is in the public eye, people are discussing it and it captivates our minds and helps make decisions.

It is considered unethical to expect to get something in return for a charitable contribution.  If ones actions are not pure, then the entire transactions is nothing more than a public relations ploy, a tactic that is playing on the minds of their customers, trying to get them to spend money in an effort that thinking their purchases is doing good in the world.

Factors that influence consumer buying behavior

Factors that influence consumer buying behavior

Based on the information you gathered and alternatives available on the company website you explored, which vehicle offering seems to be the most relevant to your needs? Explain why?

Based on the survey results which categorized me as a thinker and innovator, I would say that the Brand I would pick would be Cadillac.  This car represent class, emotional stability, a critical thinker, one that pays attention to detail and the style is very innovative.  Cadillac has always been mentioned as one of the more stylish cars with a brand that speaks of quality and is targeted towards the more affluent and successful business person.  It talks about dependability and relies on repeat customers rather than looking for the new buyer all the time.

Using the results of the VALS® survey, describe the accuracy of results and relate them to your vehicle choice.

With the results of the survey I would say that the choice fits me perfectly.  I am a self driven person with a personality of an entrepreneur.  I like to take calculated chances and I develop well thought out plans of execution.  I look for class whether in it is my home, my dress, or the way I carry and present myself.  I am a thinker and I never make snap decisions, or off the cuff remarks.  So my personality fits the brand and the brand represents my outlook on my life.

Select three of the forces discussed in Chapter 6 (Exhibit 6.3) that affect consumer behavior and explain why they would impact on your decision to buy the vehicle most relevant to your needs.

I would say that the category Cultural Factors would definitely be one area that would influence my buying habits. One of the things I have mentioned about this particular brand is that they target their marketing to a certain sector of the population.  It would definitely fit under the heading of social class.  Not only is the Cadillac known for class but it speaks to a certain social class. It speaks to the well informed, and the successful entrepreneur. Also it speaks to the desired culture and values of a person, in as much as the Cadillac is known to carry its value in resale.  But it speaks also to the values you carry as a person.  This is not a hot rod that a younger person would be drawn to.  It is for a family man that is more reserved and usually has children. 

There are also social factors that come into play also such as statue.  There are psychological factors that are involved in this process also.  I think you might call this keeping up with the Joneses.  The individual factor is that, “People’s value systems have a great effect on their consumer behavior. Consumers with similar value systems tend to react alike to prices and other marketing-related inducements.” (Lamb, 2012) So this purchase is often made with those factors at play.  That may be a bad way to make a decision, but they are made with those thoughts in mind every day. 

There are also individual factors too.  This brand as I have said before would not be for generation Y or X.  It would target the Baby Boomer generation.  They would target age as a criterion for their marketing strategy.  There is also a certain lifestyle associated to the brand. It speaks to the desired lifestyle which is how they would direct their marketing strategy.

References

Lamb. (2012). Mktg 5. Mason Ohio: South-Western Cengage

Walmart's use of RFID Technology

For Walmart, the use of strategic control systems is imperative to monitor their operations, and change their strategy as needed. The purpose of the strategic control is to watch a strategy as it is being implements, and to make essential alterations to that strategy (Pearce & Robinson, 2016). The use of RFID can help them to not only track the products through the supply chain, but also to determine the different consumers of different products (Bonson & Fenlon, 2007). This technology is better than a typical UPC code, which is a read-only technology and does not collect any data that would be useful for Walmart.

At Walmart, there are multiple ways that they use strategic surveillance, special alert control, and implementation controls.  Strategic surveillance would include monitoring both inside and outside of the company, special alert control is a sudden event that causes the strategy to change, and implementation control is assessing if the strategy should be changed depending the result on smaller actions (Pearce & Robinson, 2016).  For Walmart, some examples of the strategic surveillance would include not only watching their customers through surveillance cameras, but also security measures at the exits of the store. There are employees that physically check receipts to ensure that the items are paid for, and the alarm system at the door that prevent stolen goods. The use of RFID technology could create a smooth shopping experience, where consumers can skip the checkout and have the money automatically come from their bank accounts (Bonson & Fenlon, 2007).

Also, for Walmart, there must be controls in place for inventory coming in on trucks to ensure that the goods are received, and in the appropriate amounts. RFID allows for Walmart to indirectly monitor the incoming inventory. Special alert controls that Walmart may deal with are if there is a recall of a product, or inclement weather that effects the stores operations. This causes them to change their strategy to deal with those sudden issues. With implementation control, managers are given an objective, or different projects, that will help the company reach their overall strategic goal (Pearce & Robinson, 2016). An example of this would be when the managers hold meetings with the different departments to explain what needs to be completed each day/week/month. The results of the small projects will determine if the strategy of Walmart would need to change.

Improvements to suggest to the COO would include improving systems to track inventory, ensuring employees and the entire supply chain are as efficient as possible, and that all projects align with the overall strategy of the business. Aside from the usual use of surveillance cameras in areas of the store with the most thefts, the store could also ensure that employees on the floor are constantly monitoring consumers.  These employees could notify upper management if a consumer is stealing. Another thing would be to constantly check progress of projects to determine if the strategy needs to change. This includes comparing Walmart to their competition to create new ideas of how to remain relevant in a challenging market.  Just recently, Walmart began offering free 2-day shipping and even a discount for ordering online and picking up the items at the store. If Walmart were able to utilize RFID to its full potential, they would be able to easily track and monitor their inventory, collect data from the products, and implement new strategies based on the information provided by the products.

References
Pearce, J., Robinson, R. (2016-01-02). Strategic Management, 13th Edition. [Kaplan]. Retrieved from https://kaplan.vitalsource.com/#/books/0077807634/
Bonsor, K. & Fenlon, W. (2007). How RFID works. Retrieved from  http://electronics.howstuffworks.com/gadgets/high-tech-gadgets/rfid.htm

Destination Marketing in Travel and Hospitality

Travel and Hospitality Assignment

Instructions:

Imagine that you are a meeting planner who has been invited to work on planning a future convention for one of the organizations below. To prepare yourself for this opportunity, you need to look through information about an upcoming conference.

Answer the following four questions.

1. Choose a conference for a professional organization in the travel and hospitality industry. What is the conference that you chose? Highlight your answer.

• Destination Marketing Association International Annual Conference (http://www.iacvb.org/)
• Professional Convention Management Association Annual Meeting (http://www.pcma.org)
• Travel Internet Marketing Strategy Conference (http://hsmai.org)
• International Association for Exposition Management: Expo! Expo! IAEE's Annual Meeting & Exhibition (http://www.iaee.com)

2. Briefly describe the facilities being used for the conference or annual meeting. What factors should you take into account when looking at meeting facilities?

           

            The IAEE’s Expo! Expo! 2010 is being held in New Orleans, Louisiana.  The facility being used is the New Orleans Morial Convention Center.  The host hotels will include: Hilton New Orleans Riverside, Sheraton New Orleans, and Marriott New Orleans.  The Morial Convention Center has been recently renovated, and offers 1.1 million square feet of exhibit space.  As the 6^th largest convention facility in the United States, it is a great location for large expositions and conferences.  The facility offers three floors of conference space as well as the New Orleans Theater/Conference Auditorium and two ballrooms (Morial Convention Center, 2010).

            As a meeting planner, it is important to carefully consider the facility being used for your meeting or conference.  First, you must consider if the facility will be large enough to accommodate the number of guests expected to attend the meeting.  The facility will also need to have enough space for the types of events that are being planned.  For example, for a large exposition like the one being planned by IAEE, the facility would need to have a large enough space for the vendors to set up their booths, as well as large conference rooms for the meetings/training programs that will be held.  The second consideration would be the cost.   The budget of the corporation that is hosting the event must be able to afford the cost of hosting an event at a particular facility.  It would be important to consider other information as well, such as the location of the facility, the availability of dining options, and the type of security provided on-site (Angelo & Vladimir, 2007).      

3. Create a to-do list or timeline that explains the tasks of a meeting planning.

List 10-15 items total separated into three parts or phases: planning the meeting itself, choosing a location, and choosing a facility.

Planning the Meeting

1. Determine the purpose of the meeting: business, educational, or social
2. Determine how long the event should last (the number of hours, days, etc.)
3. Pick dates for the event that will be appropriate for all those involved.
4. Plan the schedule of events that will occur during the meeting (i.e. the order of events, start and end times, break times, workshop schedules, and so on). 

Choosing the Location

1. Where will the meeting be held?  Consider where guests will be traveling from.
2. Will the selected location be compatible with the type of meeting being held?
3. Determine whether transportation will be available to and from the facility.  What types of travel will be available.  Is the facility located near an airport, but terminal, or train station?

                                                                                                                         

Choosing the Facility

1. Determine the size of the facility that will be needed to accommodate guests.  If using a hotel, determine if there will be an adequate number of guest rooms.
2. Determine the types of rooms needed for the planned events.  Find out if the facility offers banquet halls, theaters, classrooms, exposition space, or any other type of room needed for the event.
3. Determine if the facility will offer the technological necessities of the meeting (i.e. internet, sound systems, projectors, lighting).
4. Find out what types of amenities or activities are available in and around the facility.  Will guests have things to do during their down time?
5. Call the facility and get a quote on the price of renting the facility.  Does the price meet the budget restrictions of the corporation or group?  Would another location be more cost effective? 

References

Angelo, R., & Vladimir, A.  (2007). Hospitality Today: An Introduction. (Sixth Ed.). 

            Lancing, MI: American Hotel & Lodging Educational Institute. 

Morial Convention Center website. (2010). Retrieved on June 8, 2010 from:

            http://mccno.com. 

Two takes, Coke and Pepsi

Announcer: Until recently many Americans had not thought of the rest of the world as their marketplace. Perhaps this can be expected because of the size and traditional importance of the U.S. However, while we were looking at our domestic market so was the rest of the world. Business competitors from around the globe targeted our relatively free and wealthy markets and American businesses found themselves facing foreign competitors,..especially from Western Europe and Japan. Such competitors as Mercedes from Germany, Shell from Holland, and Sony from Japan. And recently globalization of the marketplace has accelerated due to the advancements of telecommunications and transportation. We must respond to these competitive threats by seeing and seizing the opportunities in the world market. As we look to the global marketplace we will notice that by 1997, consumer s in 12 countries have higher incomes than we do. When we think of the U.S. as having only 5% of the world’s consumers, we can see the other 95% of the world’s population as an immense opportunity. Many U.S. firms are already in the world market, for instance McDonalds is a successful U.S. company that has been able to see and seize opportunities in Europe and Asia as well as the former Soviet Union. The question marketing managers have to ask is, what do we have to do differently to market goods and services internationally? First, because there are more than 175 different countries, and most firms have limited resources, we have to start with a global market assessment to match firm and product strengths with market opportunities in order to target markets with the best prospects. Next, we have to develop an understanding of which aspects of the 4 P’s can be standardized across countries and which have to be adapted for some or all countries. In domestic marketing we tend to focus on the managing the 4 P’s, price, product, place and promotion with less consideration of environmental variables because these are similar for our home markets. However, in the international markets the differences is in the political, economic or cultural variables from country to country may require the marketing managers to adapt some or all of the marketing mix. Observe how two familiar and successful U.S. corporations have responded differently to this issue of global standardization versus cross national adaptation. Coca-Cola is an example of a truly global company. Coca-Cola leads in sales of soft drinks around the world. IT outsells its closest competitor Pepsi-Cola by more than 3 to 1 outside the United States. For instance consumers in the United Kingdom, France and Germany have made Coke their most frequently purchased soft drink. Since Coke enjoys global appeal, it lends itself to a standardized global marketing strategy. For instance, Coke’s secret formula is used globally and its theme “Can’t beat the feeling” is now a familiar theme in many countries. While Coke is sold in most countries with few changes in its packaging, government legislation in Taiwan and Korea, require Coke to use the national language on all Coke products. The image on Coke’s products varies in markets. For instance, Coke uses the strategy in some countries which promotes the product as an “all occasion” drink to be shared

among friends and family. In others Coke uses a different appeal, [showing of ads here]. Sometimes Coke uses popular teen idols from the foreign country to promote its products in that country [shows ads here]. The Spanish TV ad features Angel Ferreira, while the second ad recently shown in Guatemala, features a Latin American star. Coke uses a very different approach in Thailand. Rather than stressing the familiar themes from other countries, their ad shows young people dreaming about a modern future for Thailand and themselves. The message at the end of the ad means, “from our hearts , Coca-Cola for Thailand”. Japan is also a major market for Coke. The company now has 70% of the Japanese Cola market with its flagship brand and 20% for Coca-Cola Light. Initially, Diet Coke did not sell well in Japan. Japanese women do not want to drink anything clearly labeled as a Diet product. Sales finally took off after Diet Coke was reformulated and repositioned as Coke Light. Contrary to what some people may think, American culture is very popular with young people in Japan. In this ad Coke offers its Cola as a link between Japanese youth and popular American culture. Many firms, such as Coca-Cola’s closest competitor Pepsi-Co Incorporated choose to form strategic alliances, such as joint ventures in international markets. They form these alliances with foreign nationals in order to gain local experience, to deal with different legal, political, economic and cultural environments. While Coke has much higher sales than Pepsi globally, the situation is reversed in Russia, where Pepsi has such an alliance. [Black and white news footage of then President Khrushchev and then U.S. President Nixon cutting an opening ceremony ribbon] Voice of announcer, “1959, the Moscow Trade Fair , Soviet citizens have their first taste of Pepsi-Cola, a soft drink from the USA [President Khrushchev drinking Pepsi at the Fair] among them Premier Nikita Khrushchev who finds Pepsi most refreshing. Donald M. Kendall, then Pepsi-Cola International President knew this event represented something larger. For the next 14 years he dedicated himself to establishing a new kind of bond between the Soviet and the American people. In 1973, the world press announces a unique breakthrough in International Cooperation, Pepsi and the Soviet Union signed an historic counter trade agreement. It opens the huge American consumer market to Soviet vodka exports and establishes the first production and sales of an American consumer product in the Soviet Union. From the Start, the Soviet Pepsi partnership has been dedicated to quality and technological innovation. Pepsi helps Soviet bottling plants arrange financing for the latest equipment to expand production, quality and quantity. [Speaker: Gulyam- Kadir A. Adylov- Bottling Plant Manager Uzbekistan on screen] Adylov (translation): “Pepsi helps us with quality control and we don’t let down the Pepsi trademark”. Pepsi product development experts and their Soviet partners are creating a full line of new soft drinks to meet consumer demand. Pepsi’s lemon soda, Fiesta, developed specifically for Soviet bottlers has become immensely popular with the Soviet public. Soviet bottlers have begun producing “Tanis” a new orange flavored soft drink with Soviet grown white grape juice as a key ingredient. Diet Pepsi marks the Soviet Union’s first production of a sugar- free soft drink. And Pepsi pioneered entertaining commercials on Soviet television. Translation of Anatoly Belichenko, First Deputy Chief of Food Resources in the USSR: “Pepsi has been very flexible, and has helped us with the problem of the non-convertible ruble [Soviet currency]. They worked with us to find products to export from the Soviet Union and they helped us build Pepsi production in the Soviet Union by exporting vodka to the United States”.

The Pepsi- Soviet partnership is a countertrade agreement which protects Soviet hard currency reserves.
Pepsi-Cola is imported as a concentrate for manufacturing into soft drinks by Soviet plants. And concentrate is countertraded for Stolichnaya Vodka, the first Soviet consumer product ever sold in the United States. And in the United States, where Stolichnaya is more commonly known as “Stoli”, consumer response to Soviet Vodka has been excellent. Stolichnaya sales have increased more than 800% since 1972 [until 1989 as shown on graph beginning in 1972 with sales of 20,000] and now exceed over one million cases a year. Donald M. Kendall, the man who brought Pepsi to the Soviet Union: 

“ Well, one thing about the Soviets which I think a lot of people don’t understand is that first of all when you are negotiating with them, they do their homework, so you better make sure you do your homework and better know what you are talking about and what you want to do. The other thing you will find with the Soviets is that they are extremely loyal to companies and people that they deal with. If you establish a long term relationship with the Soviets, they live up to those agreements and contracts. I fact there have been periods where we have operated in the Soviet Union where we had no written agreement”. 

Today, Pepsi-Co has 85 joint ventures scattered throughout the former Soviet Union and other communist and formerly communist countries. It is also a global company, rooted in the Pepsi- Cola international family, Pepsi’s local partners in 150 nations. 

We have seen that one key to success in international marketing is to understand that the environmental variables may interact with the marketing mix differently from country to country, thus requiring some adaptation. Conversely, in some markets, or with some products, similarities may overshadow local differences, allowing for standardization. For instance, Coca- Cola is able to use its secret formula in almost every country, leading to economies of scale. With more than 175 countries in the world, we cannot know in advance of all these environmental variables, and how they will interact with the 4 P’s in each market. But, based on the experiences of Coke and Pepsi, we see that marketing managers have to be sensitive to the important political, economic, cultural or other environmental differences affecting the marketing mix. Discovering the similarities and differences of people and nations around the world, makes international marketing a most interesting and rewarding career. If you are willing to grasp the complexities of the global marketplace, you will be able to help your firm grow, create jobs and make money and friends around the world.

Real estate know your product

One of the primary responsibilities of a Realtor is to know their product.  The Realtors product are homes and properties.    With technology, one can view homes with a click of a button from the comfort of your home or on a smartphone or tablet.  Yet nothing compares with actually going to see the property in person.  It is the Feet-on-the-Street observations gained with experience.  Just doing a drive by tells volumes about the nature of the neighborhood and house. 

Another strong aspect of inventory knowledge involves prospecting for future business.  When viewing homes a professional Realtor can think of someone in their database who might be in the market to buy a home in that area or with those specifications.  Furthermore if you have past clients in the area it is a great "warm" call to pop by and touch base and gain opportunities in inquiring if they happen to know anyone in the market to buy or sell.

The actual knowledge of inventory keeps the agent current on the market and with comparables.  Professional Realtors upgrade their knowledge, skills and abilities to stay abreast of the market and industry changes when they have their Feet-on-the-Street.

There will always be business for Realtor's who are true neighborhood specialists and posses strong market expertise.

PREVIEW HOUSES TO STAY KNOWLEDGABLE ON INVENTORY AND FOR BUSINESS DEVELOPMENT !

How Many of you Read My Daily Emails

How Many of you Read My Daily Emails 

Although we had several agents on the call I asked 5 of the agents this question.   3 out 5 agents said they did not read the daily email.  One of the 3 even said I know enough about Real Estate that I really don't need to read them.  "WOW".  I must say that hit home..... One agent from the Miami District said that he would like to get them and only 2 agents said they read them daily and 1 has responded to the emails..... Hmmmmmm

Did you know that is exactly what happens when you send out your daily prospecting emails.  3 out 5 people will NOT read them.  Your sitting there waiting for a response, your frustrated and anxious for just one response.   A few of your leads may read them, some wont, a few will think it may not be beneficial and not even take the time to read it and others are hungry to get any information to help with their RE process but they don't get emails from you and only one may respond.  You know what my response to this is???  SO WHAT !

If I get only one agent to read my email and maybe respond it's a good day - I made a difference.  Same goes to you with your prospecting emails and phone calls -  SO WHAT !!!!  Finding that needle in the haystack is worth looking for it.

I will not give up on the team because your not reading the emails, you should not give up on your leads.......What if someone does respond, it will make your efforts worth it !

Procrastination is Self Sabotage

Procrastination is Self Sabotage

In sales, procrastination is your enemy. Procrastination is one of the most popular forms of self-sabotage because it's really easy.   There are many fun thing you can do in order to procrastinate, and there's no lack of other people who are totally psyched to procrastinate with you.

And while it can be super fun in the moment, eventually the naughtiness buzz wears off and your sitting there sometime later feeling like a loser, wondering why the heck you haven't gotten your act together.  And why are others are putting in deals and making money.

If your serious about changing your ways, you will find a way.  If you're not, you will find an excuse.

Remember DONE is better than PERFECT.   So get off your Seat (lol) and get started... NOW !

New Product Development Process

DEVELOPING AND MANAGING NEW PRODUCTS

New Product Development Process

Part 1:

Short Essay: Write a minimum 200 word discussion in response to each of your 3 essay questions using research from your textbook to help substantiate your understanding of products and the new product development process. Apply APA style referencing in your writing.  

1. With regard to consumer appeal, compare and contrast the GaGa's brand with the Sherbetter name of the product. Why did Jim King and his wife choose the GaGa's brand over the use of Sherbetter as the brand of the product?

ANSWER:

            Jim King and his wife chose to use the GaGa's brand over Sherbetter because they felt that GaGa was more memorable. Sherbetter could result in some confusion in the relationship to sherbert in the eyes of customers.  The health department approved the name of Sherbetter because GaGa's product is not a sherbert but is better.  Overall the ability to remember an iconic name like GaGa's won and became the brand.

2. Type the following phrase into your website browser: "Gaga Gourmet Frozen Dessert and Ice Cream." On the results page, identify retailer websites and social media websites that feature the Gaga's brand and product offerings. Explore these resources and identify a single Gaga Gourmet product offering. Discuss the following topics related to your chosen Gaga Gourmet product offering:

· Product Features

· Product Benefits

· Product Packaging

· Product Labeling

· Trademark

           

ANSWER:

            Several results pulled up in regards to "Gaga Gourmet Frozen Dessert and Ice Cream".  Some of these were Facebook, Star Market, Gluten Free Girl, and Twitter.  I chose Star Market for my review.

Product Features: Rainbow colored frozen dessert. 16 oz container with 4 servings per container.

Product Benefits: For a serving size of 0.5 cup there is only 160 calories, 4g total fat, and also provides 2g of protein.

Product Packaging: consists of a cardboard container with a lid

Product Labeling: Very plain with no over the top colors on the container.

Trademark: Contains the GaGa brand in the appropriate font and is clearly visible.

Part 2:

Defend Your Answer Challenge:

Step 1:Highlight your multiple choice answer in yellow.

Step 2: Write a 100 (or more) word discussion in defense of each of your answers to the multiple choice and true/false questions using research from your textbook to help substantiate your understanding of products and the new product development process. Apply APA style referencing in your writing.  

3. What type of consumer product is the Sherbetter bar?

a. Shopping Product

b. Convenience Product

c. Specialty Product

d. Unsought Product

ANSWER:

4. When GaGa’s developed Sherbetter Bars, what type of new product was that?

a. Repositioned product

b. Improvement on an existing product

c. Addition to an existing product line

d. New product line

ANSWER:

5. Performing which of the following steps in the new-product development process would have helped Jim King realize that the novelty bars and the pints of Sherbetter would not be shelved together?

a. Business Analysis

b. Development

c. Test Marketing

d. Commercialization

ANSWER:

 

6.  At which stage of the new product development process should GaGa’s have conducted its extensive focus groups and any research it needed before putting GaGa’s Sherbetter on the shelves?

a. Idea Generation

b. Development

c. Idea Screening

d. Business Analysis

ANSWER:

7. In what stage of the new product development process should GaGa's have introduced Sherbetter and the companies marketing program into the market to gauge consumer reactions?

a. Test Marketing

b. Target Marketing

c. Business Analysis

d. Commercialization

ANSWER:

8. In what stage of the product life cycle is Sherbetter?

a.   Introduction

b.   Growth

c.   Maturity

d.   Decline

ANSWER:

 

References

Lamb, C. W., Hair, J. F., & McDaniel, C. (2012). MKTG5. Mason, OH: South-Western, Cengage.

Antecedents of Target Marketing

Antecedents of Target Marketing

1.  In the first part of the video, Jen Mullin, the vice president of Marketing for Numi Organic Tea, clearly describes their typical customer. Using the information on segmentation you learned from reading Chapter 8 in Lamb, et al. (2014), discuss who the customer is and how the Numi marketing team figured that out?

ANSWER:  Market segmentation is when a market gets divided up into segments that are meaningful, identifiable and similar.  (Lamb, Hair & McDaniel, 2014).  Market segmentation helps companies to be able to focus their resources better and make it easier to define marketing objectives (Lamb, Hair & McDaniel, 2014). 

The market segments have to meet four criteria to be successful:  substantiality, identifiability and measurability, accessibility and responsiveness (Lamb, Hair & McDaniel, 2014).  Substantiality means that the market segment created must be big enough for it to make sense to create a special marketing mix for that particular segment (Lamb, Hair & McDaniel, 2014).  Identifiability and measurability means that  it is easy to identify certain characteristics of the segment and easy to collect and use data describing the segment and different demographic aspects about it (Lamb, Hair & McDaniel, 2014).  Accessibility means that the segment that is created should be made up of people who are easy to make contact with (Lamb, Hair & McDaniel, 2014).  Lastly, responsiveness means that separate marketing mixes should not be created if each segment would respond to one marketing mix the same (Lamb, Hair & McDaniel, 2014). 

Mullin describes the target customer as college-aged females and young mothers who are interested in the organic aspect of the tea.  Numi figured out that their customer was college-aged females and young mothers by demonstrating sampling to survey their customer base in a way.  Once people tasted the tea they were more apt to give their true opinions and allowed Numi to get honest feedback and collect data on who their target customer is.  This allowed them to break down the market into segments where they could better focus their resources and gain clear objectives. 

ANSWER:  Numi’s principle marketing plan is to target the college-aged females and young mothers who value the organic aspect of the tea.  To target this segment, they involve themselves in a lot of community events that give back, like breast cancer fundraisers and things of that sort, that the young mothers and college-aged females are likely to attend.  Numi also incorporates taste testing into their market strategy to get their customers to truly try their product, having confidence that once they do, they will really like it. 

Numi likes to partner with restaurants as well that sell food that is along the lines of their organic tea.  They think that if someone asks for a cup of tea there and they have a large variety and really like it, they will inquire about the brand and also look into where they can buy more.

Numi is a very high quality tea so their prices are higher than the average tea.  They are an organic product which makes it more expensive to begin with and also have a variety of flavors that suit most people’s tastes.  They are becoming the world’s largest brand for organic tea, so they will not be reducing their prices. 

Numi was surprised by how many larger retailers wanted to partner with them and carry their product as well.  They thought because their product was more expensive than what people are used to paying for tea, that they would not be accepted at larger retailers like Costco and such, but they found that there is a huge demand for their product and people really like seeing it on the shelves. 

a.  Geographic segmentation

b.  Demographic segmentation

c.  Ethnic segmentation

d. Psychographic segmentation     

ANSWER:  Describing the typical customer as female, college-educated tea lover is using psychographic segmentation.  Psychographic segmentation is when the market is segmented by using the whole picture rather than just one aspect or characteristic.  Psychographic segmentation incorporates personality, motives, lifestyle and geodemographics into the segmentation (Lamb, Hair & McDaniel, 2014).  The personality is the “eco-mom” personality of a female who is concerned about the environment and like to use organic products.  The motive is also the fact that the female is motivated to do better for the economy as well as for herself and use eco-friendly products.  The lifestyle is a college-educated woman who is knowledgeable of the product as well as other aspects of the company such as charitable community involvement. 

a. Geographic segmentation

b. Demographic segmentation

c. Benefit segmentation

d. Usage-rate segmentation

ANSWER:  Benefit segmentation is segmenting the market using the benefit the consumer expects to get out of the product (Lamb, Hair & McDaniel, 2014).  Numi segmented their customer base into the group of people who are looking for the benefit of an organic product which is that the product is good for the environment and good for the consumer’s health.  Consumers of Numi also want tea that is of better quality than most teas out there so they are willing to pay a higher price for it.  Numi consumers also want the tea that they buy to be fair-trade meaning that it is reasonably priced and the benefits are of equal value to the consumer. 

a. Family life cycle

b. 80/20 principle

c. Undifferentiated targeting strategy

d. Concentrated targeting strategy

ANSWER:   Family life cycle segmentation is a series of family stages that incorporate a combination of age, the presence or absence of children and the marital status of individuals (Lamb, Hair & McDaniel, 2014).  It is really important or Numi to pay particular attention to the family life cycle segmentation because as things change in people’s lives, their tastes and outlook on products may change as well.  For instance, if someone was buying the tea as a college student from their college café and then they graduate, get married, and have children, they might not have money to buy premium quality tea anymore and may have to settle for regular commodity tea. 

a. Age

b. Income

c. Ethnicity

d. Gender

ANSWER:  The CEO of Numi was very shocked to find out that the customers Numi was targeting at the high-end spas and fine restaurants were also shopping at Costco.  They realized that the consumer who would be going to high-end spas and fine restaurants shopped at Costco to save on packaging costs to buy groceries in bulk rather than paying for packaging to buy less of the product.  There was no real income difference in the customer because they were the same customer, just visiting very different places.  This makes it easy for Numi to not have to create another plan for another segment of customers. 

a.  Perceptual mapping

b.  One-to-one marketing

c.  Product differentiation

d.  Market segmentation

ANSWER:  Product differentiation is what a company uses to differentiate their product from the product of their competitors (Lamb, Hair & McDaniel, 2014).  Product differentiation can either be a real difference in two products or a perceived difference in two products (Lamb, Hair & McDaniel, 2014).  Numi’s product differentiation is a real difference in their product when comparing it with other commodity teas.  Their tea is organic and of premium quality because they use whole leaves.  Their raw ingredients are really expensive so their price is higher than their competitors, but not when you compare it to the quality of tea the consumer gets. 

a. Undifferentiated targeting

b. Concentrated targeting

c. Multisegment targeting

d. Niche targeting

ANSWER:   Numi found out that they had more than one target market.  Numi’s target market are eco-moms, college students and family travelers.   They target consumers who are at high-end spas as well as fine dining restaurants.  Their customers who are all there are also shopping at places like Costco, which gives them the benefit of mass selling their product without much effort to.  Multisegment targeting is when a company develops different marketing mixes for different segments (Lamb, Hair & McDaniel, 2014).  I think it would be irrelevant for Numi to incorporate multisegment targeting because, although they have more than one segment, there would not be a different reaction to marketing to any of the segments because they overlap and all go to the same places. 

a. True

b. False

ANSWER:   Optimizers are companies who carefully choose products because they solicit bids and study all proposals and consider a large number of companies before making their decision (Lamb, Hair & McDaniel, 2014).  Mullin knows that companies who seek Numi tea to go into gift baskets are optimizers because most of the time the gift baskets are consistent of all high quality products that are also organic and have the same quality that Numi tea does.  The promotional giveaways help Numi to market their product while it is beside other high quality and well-respected brands and products.

a. True

b. False

ANSWER:   Perceptual mapping is a way to graph the location, brands or groups of products that customers are thinking about (Lamb, Hair & McDaniel, 2014).  The channel conflict that exists for Numi is that they are marketing their tea at high-end spas and fine dining restaurants.  They are also selling their product at places like Costco and Target.  When the spas and restaurants find out that Numi’s tea is at “lower-end” stores like Costco and Target, there can sometimes be a conflict because they want high-end products that make their customers feel special.  Creating a perceptual map can help Numi to visually see where their product is being sold and what other products may be at the same location or may be bought by the same consumers.

References

Lamb, C. W., Hair, J. F., & McDaniel, C. (2012). MKTG5. Mason, OH: South-Western, Cengage.