Daniel B. Kostiw
Bus 306
Chapter 2 Notes
1. If the company investors believe they face a once-in-a-lifetime opportunity, they
would need to evaluate the target market and competitors. If they notice that their
product is selling quickly and many other manufacturers are creating “knock-off”
products, they know that time is limited in capturing their market. In time, someone
will improve upon their idea and they will lose their opportunity. To better the
product, the group needs a mission statement. Considering most of the focus is
towards household women and dealing with rodents, the group should focus its
mission statement on mice problems and easy/safe traps. If I where to write this, I
would focus it around those points saying something along the lines of, “A mice-free
home is quick and easy”
2. Martha has identified a good target market for Trap-Ease; however there are other
markets to consider targeting. For example, many ranches, or out-door facilities
with cats and other small animals might want to consider this product. Maybe even
laboratories or testing facilities might be a unique and different target. They could
capture live specimens for testing the safety of medication.
3. Trap-Ease has positioned itself in the way of being a one-time, safe, easy, and “clean”
buy that focuses on a consumers desire rather then need. The company could
position the product to be more of a family need. Prioritizing the re-useable,
recyclable, and sustainable functions of the product. Focusing the product around
the marketing strategy of being “good”, “safe”, and “sustainable” would lead to
diversifying the market mix.
4. As of now, the current market mix is slim. The company does little to focus its
marketing strategy around the “Four P’s” (Price, Product, Place, Promotion). There
is no price range for the product, only one fixed cost with no promotions, which
could be listed on in magazine, newspapers, or super markets. The places that the
product is sold are limited and not where many at home women would go on a daily
basis. Though the product is well manufactured, it could include some more
biodegradable materials so the mouse along with the trap could decompose
together. In short, the market mix is poorly managed.
5. In the ways of a clean and “mess-free” mousetrap, there are really little competitors.
However, in the mousetrap business there are many. Poison pills, mousetraps,
professional exterminators, or even a household cat could be justified as a
competitor to Trap-Ease. However, many of these alternatives are either extremely
dangerous, costly, or simply not a possibility for all consumers.
6. If I where to change Trap-Ease’s marketing strategy, I would first begin to focus on
the market mix. I would evaluate the price and promotions the company offers. I
would recommend that the company place more promotional advertisements and
initial price details in their current marketing catalogs. I would advise Trap-Ease to
consider moving much of its promotions and advertising to online sources and have
advertisements on websites. It is more likely then not that the women who would
buy these are using the web on a daily basis as opposed to leaving to hardware and
discount chains. Also, women would not be the only focus group. Men go to many
hardware and trade shows, innovation and ease-of-use are grate to anybody. I
would bet, if a man saw this, he would mention it to his wife as an alternative she
would appreciate. The product could be re-worked to become more environmental
and sustainable in the event people dispose of the trap rather then re-use it. I
believe that the whole point is to avoid seeing a dead mouse, if this is the case many
would throw away the trap and not re-use it. Therefore, a recyclable container
would go a long way to promote and improve the product. I believe that some
operating and strategic control systems would be need in making these changes.
Closely track the number of sales after each type of marketing change. Begin slow
and move to online sources, then, if needed, create discounts. After that, change the
product around; this would increase costs but could also lead to increased sales.
Operation control will help track this. Strategic control would assess the overall
recognition of the product. Are more people talking about it? How is word
spreading? The company already has a strong start with receiving first place in
trade and hardware shows. I say use this to the companies advantage; publicize its
success and use it as a selling point for why it is better then every other alternative.
Chapter 20 Notes
1. International Paper (IP) defies common social criticisms for marketing by managing
natural resources, reducing their environmental footprint, and creating strategic
partnerships. Typically, social critics claim that marketers “created an endless cycle of
mass consumption…”(Pg. 588). IP defies this initial criticism by promoting the replanting of trees that are used to create their paper. The company also is responsible for
much of the innovation in recycling and reusing of old paper and carbon emissions. IP
has managed to recover and reuse 38,000 pounds of steam per hour (Pg. 607). Social
critics also argue that marketing leads to an overselling of private goods that lead to the
consumption of public resources and services. However, by creating strategic
partnerships IP manages the level of consumption and production based by business and
consumer demand. They then create new products to positively improve upon old ones.
Take for example the “ecotainer”, which transformed the old plastic lining disposable
cups into biopolymer or in other words, plant products. Marketing has been described as
cultural pollution; however, IP is hardly known in the public sector. The company
focuses operations on businesses and is “a company that most people know little
about”(Pg. 607).
2. International Paper is successful in applying concepts of sustainability due to the
companies “three pillars” of operations: managing natural resources, reducing
environmental footprints, and building strategic partnerships. Through these three pillars
IP manages to not only defy social criticisms, but also manages to apply the concepts of
sustainability. As mentioned prior, the company replants trees that create an infinite
supply of raw materials; they also reduce, reuse, and recycle old paper, and lastly, reduce
the waste of steam and fossil fuel consumption. Through their transparency with
customers, the company also cut its global greenhouse gas emissions by up to 40%.
Lastly, in building strategic partnerships, the ecotainer transformed the way companies
use disposable packaging by now making it biodegradable and “environmentally
friendly”.
3. In comparison to the Environmental Sustainability Portfolio, IP manages to implement
the greening of today and tomorrow through both internal and external elements of
production. The company maintains environmental sustainability and market
sustainability simultaneously. In pollution prevention, IP focuses on the greening today
by reducing the need for steam and coal use; in return, they eliminate the need for fossil
fuels before they are used. While focusing on internal production the company considers
the life cycle of their production (as shown through the ecotainer example) by producing
goods that can be recycled either by the company, or by compost. IP creates
environmental sustainability of tomorrow by constantly striving to create new and
innovative ideas and methods of production through new skills, research, and
development. In the long term, through replanting trees and raw materials used, IP creates
a sustainable vision for the future and manages a strategic framework for future external
impacts of production.
4. International Paper does practice enlightened marketing. Enlightened marketing is a
philosophy that a company would create the most optimal long-term performance based
on the consumers oriented market, social marketing, companies innovation, value, and
mission. International paper is consumer oriented by creating leading products to benefit
the consumer and eliminate external costs of production and maintains a sustainable
vision. The company clearly states that their values are in sustainability and as
demonstrated through their improvements of production and innovative product design.
The three pillars of operations are an example of all these elements combined together.
5. If IP where not to focus on social responsibility I do not believe the company would be
more financially successful. As we learned in prior classes, building a company around
shareholder wealth continually fails in the long run and never accommodates some of the
recently learned principles of marketing such as environmental sustainability or
marketing sustainability. Focusing on stakeholders leads to long-term benefit for the
company. Happy consumers, employees, and business partners creates a healthy,
symbiotic relationship within investors, producers, and consumers. I believe, that with the
current mission and operations of IP, there would be no better form of financial success
Chapter 3 Notes
7. Microenvironmental factors are the actors close to a company that affects that company’s
ability to serve customers. In the case of Xerox, many microenvironmental factors where
affected since the companies performance in the 1990’s. Initially, the company outsourced
most of its labor leading to nearly half the employee union being laid off dropping from
100,000 to 55,000. Second, the Xerox had to redefine its mission statement; the company
redefined whom it served and how it was going to continue to serve them. They reorganized
their market intermediaries; Xerox saw that copiers needed to be changed into faster, easier,
and more efficient machines that helped build “document management technology”. To make
this change, Xerox purchased Affiliated Computer Services (ACS) to help further developed
their IT presence and expand another microenvironmental factor, the public. With purchase
of other companies, they “resulted in a broad portfolio of customer-focused products,
software, and services…”
8. Macroenvironmental factors are large societal factors that affect a company causing
microenvironmental changes. For example, Xerox reorganized their market intermediaries,
due to a large societal shift in the demand for technology. Consumers needed multipurpose
hardware to create digital images of documents, relay information electronically, and yes,
still make copies. The change and large demand for equipment with these technological
advancements as well as internet capabilities lead to large demographic, technological, and
cultural changes that Xerox was frankly not prepared for. However, the company has since
changed and now focuses on the future; as stated in an annual report, “Macrofactors such as
globalization, emerging technologies, and, most recently, depressed financial markets bring
new challenges every day to businesses of all sizes”
9. Xerox has pursued the best strategy in focusing on the business services industry. Within this
industry there is much change. It provides major insight and creates significant changes in all
macroenvironmental factors. In considering this, Xerox has many opportunities to regain
their position of “top-dog”. With a refocused mission statement and significant
microenvironmental changes. Though there is much to learn from the private and public
sectors; I believe many of these trends start in business industries, or if not start, then develop
into larger projects. I believe Xerox has pursued the best business strategy available.
10. In responding to the first signs of declining revenues and profits Xerox should have began
making microenvironmental changes. At that point the company should have chosen to
recognize the societal and cultural changes around them. The company had blinders up and
failed to recognize the opportunities around them. In response, the company should have
implemented more diverse services with their copiers. Even if they failed, it would have been
a step towards maintaining a popular demand. However, at the time, the company would
have had enough money to put into public relations along with research and development.
11. I would recommend that Burns remembers what brought Xerox to the situation it was in over
a decade ago. With technology advancing to smartphones and tablets I believe one thing is
guaranteed, “just as e-mail and desktop software killed photocopying, smartphones and
tablets are killing inkjet and photo printers.” Pay attention to this, Now is a time to invent
something new. Create a way to combine these elements digitally, move past copy and photo
printers to look at the new thing…However, on a side note, I know that many people have a
demand to scan written text into a word processing format. This would be a way to add value
to software and hardware packages. This aside, I would put major research in the
macroenvironemntal changes within society.
Chapter 4 Notes
12. Meredith’s marketing information system contains a significant amount of secondary market
research with a little primary market research. The company conducts secondary market
research through creating and maintaining an internal database that collects purchasing and
personal information for nearly 80 percent of home owners -- primarily women -- as well as a
large portion of non-home owners (130). The secondary market research watches purchases,
subscription, and incentives that consumers follow. Following the secondary market
research, Meredith conducts its primary research as well. They begin to analyze the
consumers attitude towards information, why do they buy and what is happening in
someone’s life are all variables that are analyzed and viewed as influences towards a
customers purchasing decision. Yet, Meredith’s marketing information fails to fully dive into
the competition. It appears that the company -- though it has a large percentage of the market
-- doesn’t view the competition as a possible area of interest. However, there are reasons that
people are going to the competition; Why is this the case? It appears that this is an important
question to analyze.
13. Impersonal data points can result in meaningful relationships with customers. This is best
explained through an example of a company that does it successfully; take Amazon as a
company that is successful in this matter. The company analyzes your transactions then
builds a database around your interests. After purchasing a transaction, a survey is sent to
your email to verify that all conditions where perfect when the product arrived. If not, then
there is room for improvement and a custom return label gets sent to you. Amazon
accommodates all the needs for the consumer. Similarly, Meredith does its best to
accommodate the needs of women. It is best described by the companies efforts to crosspromote different magazines, “based on what it knows about specific customers” (131).
14. Merediths marketing information expertise does transfer into other media and products; this
was proven when the text explained that, “its strength in managing marketing information
has also resulted in numerous partnerships with leading companies such as Home Depot,
DirectTV, Chrysler, and Carnival Cruise Lines” (131). None of these other products or
services operate the same way as Meredith. Home Depot may be the closest as it still
advertises with paper adds in the newspaper. However, other companies like Chrysler and
Carnival Cruise Lines do not do this -- at least not to what I have noticed --. Therefore, other
means of media that they may market through such as TV or the Internet can prove to benefit
by following the same means as Meredith.
15. Though Meredith is still heavily rooted in print, the company is focused on sustainable media
marketing methods. The paper and print industry is hurting, the text states that “magazine
advertising has been decreasing for years…” if Meredith chooses to maintain its course on
printed marketing, there is risk for a decline in sales. However this is not the case, as
mentioned earlier, “Meredith’s core competency of managing customer information is not
exclusive to print…” they go on to mention “it is something that will fuel the company’s
expansion…” (131). With the mindset of using printed marketing as a foundation to new
ventures it is difficult to find an issue with Meredith’s marketing strategies.
16. If I where to make a recommendation to Meredith, I would start by advising further research
into competitor marketing strategies. How do they manage to eliminate 20 percent of the
target market? I would feel that some more primary research would need to be conducted for
this experiment to be successful. The company has an overabundance of secondary
marketing information. With researching competition, Meredith could use more primary
market research to improve on their methods.
Chapter 6 Notes
1. The demand and market structure for Cisco’s products are placed around technology and
the advancing of telecommunications. As businesses plan to compete and grow on a
global scale, there needs to be ways to discuss new investments, methods, and structure
within a company or job. Arguably, Cisco’s market structure influences globalization
while also allowing for environmental, economical, and sustainable processes. As
opposed to sending individuals overseas or across a given country, telecommunications
allows for users to interact as if in person from miles away. Telecommuting has become a
popular form of work, and according to Cisco’s research, workers appreciate it so much
that they would work for less. Ultimately, this saves money for businesses, reduces
carbon emissions, and creates a healthier lifestyle for individuals.
2. Cisco’s business follows primarily systems, solutions, and new task selling situations
though their new ventures’ focusses heavily on systems selling. The company’s older
products where routers and other wireless networking devices. These components are
treated as a new task buy for consumers or businesses. I would argue that the lifespan for
such products is low enough that each time an order is placed, Cisco could account for it
as a first time buy for that customer. However, with the telecommunication solution
Cisco can focus new business strategies around selling a service or system.
3. The primary benefits come from Cisco’s telecommunication services, on page 187 in our
text the case study explains that, “telecommuters have higher job satisfaction”.
Continuing on, “people like working from home so much that they would be willing to
work for less pay.” In an example provided, a china relief worker explained the positive
impacts telecommunications had on diagnosing trauma patience by using the
communications to network with specialists in Maryland.
4. The customer buying process for a Cisco product follows the steps listed on page 176.
Industries are recognizing problems in communication and employee moral. These
companies have a need to make money, these factors negatively impact its ability to do
so. Product specifications and supplier searching show Cisco’s success in this market.
However, it is not to say the company could not go with other alternatives, this is when
companies spend much time researching for alternatives. Moving on, proposals and
selections are placed and the company continues to either make routine or variant orders.
In buying a Cisco product, you get the services and technical expertise from the company
to go with it. If a company chose to purchase their own broadband router or use a
competitor’s service, they would risk not getting enough help or services when needed.
5. The collaborative culture and products offered by Cisco is a something that could work
for all companies. Large businesses and smaller conglomerates can benefit from the
specialized services and personalized technical support Cisco offers. However, the depth
to which a business will use Cisco’s services would change. It is unlikely a small
business would use telecommunications as frequently as a larger, more global, business.
P&G for example would use these services to negotiate many global market transactions
inside, and outside of the U.S. Telecommunication offers a quick way to negotiate
between parties that have busy schedules and are unable to meet in person. However the
routers and internet services would be more beneficial than competitors.
Chapter 7 Notes
1. Darden focuses the sit-in dining through all the segmentations in different ways. Offering
a variety of meal-types with different atmospheres addresses the psychographic,
occasional, benefit, income, and behavioral segments. For example, Olive Garden offers
an Italian big-family atmosphere while offering their food at a reasonable price. Red
Lobster follows the white-collar workers and a fancier environment but also with a
unique wood-grilled taste. Darden focuses on expanding its business across the whole
U.S. therefore covering much of the geographic segments. With their casual and semiformal environments they reach all age and life-cycle segments as well as demographic.
2. I believe that Red Lobster, Olive Garden, and Longhorn Steakhouse demonstrate a large
spread in Darden’s positioning of brands. The company has effectively reached to
different psychographic, lifestyle, geographic, and behavioral segments in creating these
brands. From a geographic perspective, Longhorn is primarily based in the east coast, but
offers the ability to expand westward. Olive Garden is national, and offers a relaxed
environment and provides an experience unique for the customer therefore relaying the
psychographic segment. Red Lobster, along with the others, creates a lifestyle and
behavioral atmosphere for customers
3. The “Darden Standard” across brands could potentially backfire for the company because
it jeopardizes the uniqueness and separation between each of their sit-in restaurants. The
software and processes are great for running the businesses but they need to make sure
that the environment is different between each restaurant.
4. Though most sit-in restaurants are seeing decreasing sales in the market, Darden
restaurants will continue to dominate the market. This is because Darden has a large
presence already, they have great purchasing power – or so I assume without looking at
their financials – which allows them to buy-out any direct competition. The company has
shown that they are willing to make changes to how a given restaurant is operated to meet
the customer expectations. For example Olive Garden changed its atmosphere, Red
Lobster changed its cooking methods, and Longhorn Stakehouse is in the process of
making renovations to meet the “Darden standard”. The company has been around for a
long time, this helps in the company’s future performance.
5. I would advise Darden to be cautious on using similar operations with other stores. As
discussed in question three, the company runs a risk of merging stores together once it
adopts a similar “standard”. I would advise that Darden also takes a look at how it can
segment to higher incomes and cross-markets. The sit-in dining is great, but as noted in
the case study, more Americans are looking for a quick-dine place. I would advise that
Darden focus on using its standards to create a quick sit-in or take-out restaurant. Maybe
something along the lines of a Panera would be a model to research and further develop.
Chapter 8 Notes
1. Zipcar has taken a unique approach to their benefit orientation with customers. The
background behind Zipcar is that the company offers rental cars to everyday people.
These rental cars accommodate the customers by eliminating the costs of car payments
and paying for gas. Ultimately, Zipcar eliminates much travel time and strives to
streamline transportation in highly dense areas such as New York, Boston, San Francisco,
Los Angeles, etc. The unique positioning behind Zipcar is that it is completely loyal to its
customers. It fills a niche market of people who want to save money, and protect the
environment. Zipcar offers lines of vehicles that function towards lessoning fuel and
carbon emissions. The company strives to make their vehicles easily accessible and
custom for each consumer.
2. The benefits and values fall in line with the companies benefit oriented positioning.
Zipcar’s brand image focuses on efficiency and economy. As displayed by their
marketing strategies of “we <3 earth” and the subliminal messaging of their green logo to
follow, it is apparent how important these beliefs and values are to the company. Zipcar
makes things convenient for consumers by offering low and affordable prices, allowing
consumers to “save 67 percent on vehicle costs”. Subsequently, the company also
increases physical fitness; what initially may seem like an inconvenience, consumers
have to walk – no more than – ten minutes to get to their vehicles therefore leading to
weight loss, or so the company claims. All of this falls under the Zipcar’s ability to
promote their beliefs and values within their brand image.
3. The benefits based on beliefs focus towards changing the way society functions. It takes
the marketing strategy to a larger, more social focus arguably changing many of the
macroenvironmental forces surrounding the company. The benefit positioning saves the
consumers money. It helps them to believe that their decisions are the right ones. They
make a smart investment and choose to make a positive environmental, financial, and
personal decision. Ultimately, I believe that positioning based on benefits is a quick way
to gather followers for Zipcar. Showing the immediate benefit for their product helps to
get initial, positive, attention. In the long run, what keeps a company alive is their beliefs
and values. If Zipcar continues to meet the needs of consumers, create an environment
where they feel special and a part of a nice market, then Zipcar has a stronger belief and
value positioning then their benefits could ever amount to.
Not much competition lies in front of Zipcar. Car rental companies like Hertz, Avis, and Thrifty
are the only ones who pose a real threat to Zipcar. However, Zipcar is the only company that
creates an environmental and lifestyle association with their product. As Zipcar begins to change
the way society functions, car rental companies only provide a service without the personal
identification. In the future, I view Zipcar as the Netflix of automobiles. With the right
customization, personal touch, lifestyle change, and socio cultural norms, Zipcar could be an
extremely profitable company. If they choose to partner with other electronic fuel vehicles –
such as Tesla – , there would be a bigger increase in interest as those who might not be able to
afford such cars, would have the luxury to experience what it is like behind the wheel of one.
Chapter 9 Notes
1. A typical idea generation and new product development cycle begins in the idea
generation phase, most of the idea generation starts internally. These Ideas move on to
screening, concept development and testing, marketing strategy, business analysis,
product development, test marketing, and eventually commercialization. In a typical
company, the first four processes of new-product development are heavily analyzed and
much time is spent processing the information given. It takes a great deal of time for a
product to get to the test market, as at this point it takes a lot of money to get to. With
Google, all of their new-product ideas move extremely fast through the first two-thirds of
the new-product development phase and go immediately into the test market. For a
couple main reasons this process occurs. First, this helps Google avoid spending time on
a product that would eventually fail. Second, it encourages creativity and ambition within
the company to find the next big thing.
2. Google’s product-development process is customer centered more than anything. With a
focus on getting customers insight to new ideas before spending time on systematic and
team building efforts, the company essentially “cuts to the chase”. The early test
marketing is evidence to this. As explained in the first question Google skips many of the
steps used in the product development. This is solely to get the best product for the
consumer.
3. Google faces a couple challenges with managing its product portfolio. With new productdevelopment happening at a rapid pace and creating short lifecycles for these products, it
would be difficult for Google to account for all the ideas created within the company. In
addition, managing the costs of their new-product portfolio would be extremely difficult.
Most of Google’s ideas fizzle and die out quickly, with many ideas rushing to the test
market, the company faces difficulties also managing its processes. While a company
who is more “structured” spends the time to develop an idea, they have the capability to
track the ideas progress. There is a harm in both processes; not one is necessarily better
than the other.
4. There is no limit to how big Google’s product portfolio can grow. The company states
that, “anytime you cram some 20,000 of the world’s smartest people into one company,
you can expect to grow a garden of unrelated ideas.”(pg 286). With this, new idea
development is sure to occur. In addition, the “Solve for X” conferences help to create a
horizontal communication between departments. This allows for different ideas to flow
and create a collaborative ideas to develop; leading to expansions on new product
development. In addition, Google creates a mission for its employees making each one
responsible for innovation; in return, Google looks past an individual’s success or fail
rate, instead, their mindset focuses around another idea given and a possibility to spark a
new idea for someone else.
5. Google has proven to be a powerhouse in many markets. Recently the company has
expanded – successfully – in the app and mobile device markets. Because of their success
here, it process the company can expand its market. Google+ is still new, there are
hesitancies and a large competitor to deal with. However, competitors sometimes expand
too far or mess up, it is at this point that Google can snatch some of the market. A classic
example is Facebook taking over MySpace. Google’s quick determination to be
innovative, trendy, stylish, and unique drive the company towards success.
Chapter 10 Notes
1. Burt’s Bees does differentiate its pricing strategy from its competition. The competition
in lip-balm products tends to place its pricing strategy on a cost-based formula. However,
Burt’s Bees prices its products on value. It markets its portfolio of products based on
health, wellness, organic, and “green” or even sustainable production.
2. As stated in question one, Burt’s Bees executes a value-based pricing strategy. This is
because the company has perceived the value consumers are willing to pay for a product.
There is no competition that offers products similar to Burt’s within the lip balm market.
This even extends into their other product lines of hair and skin care. Though some
competition is presented, their rates are significantly lower than Burt’s and do not create
much competition.
3. Burt’s Bees has taken products past its lip-balm. Body lotions, oils, and other “natural
homemade goods” used for personal care all follow similar guidelines to their lip-balm.
Though the company sold itself to Clorox, the company maintains its independence while
creating each different product to the companies’ minimal “99 percent natural” standard.
This is important to Burt’s because it drives its pricing strategy and creates value to the
consumer.
4. Burt’s Bees could have been successful as a natural product if it employed a low-price
strategy, However, I do not think the company’s success would be as great as it is today.
There would be some success because people would purchase a product advertised as
“natural” over a product that was not at the same price. However, what really drives the
company’s success in its marketing and therefore its pricing is the fact that the added
value creates customer curiosity…as our text described this lead to a more diverse
demographic to purchase the company’s product(s). As the company began to show the
“value” in their product, it became more convincing to customers that this was not just an
average “run-of-the-mill” lip-stick, it was something more, and worth the extra price.
5. Burt’s pricing is sustainable. Their pricing strategy provides a future benefit to the
business. Their consumers see a future benefit because it is natural and good for them.
Burt’s product also fulfills the current “needs” – maybe more wants – from consumers.
Bus 306
Chapter 11 Notes
1. No, consumers might have the online websites to compare their lower overall price
among different products however, each company has created exposure and deals that
lead to lower than advertised pricing. Walmart might not have the same low price as is
advertised in their retail stores. In addition, Amazon Prime accounts (that you actually
pay for) lead to savings, but calculating the savings across different accounts and orders
is not “easy” for consumers. Maybe this is a point or Amazon to advertise the benefits of
a prime account?
2.
It is more important for the companies to have the perception of lower prices. As our text
described having a low price is a double-edged sword. “Reckless price cutting may do
more damage than good to both Walmart and Amazon” (Kotler, Pg. 336). I question if
eventually, Walmart will cannibalize business from its retail stores with the process of
actually cutting prices too low. The perception of lower prices allows for companies to
make a profit and not become the “loss leaders” of the industry.
3. In accordance to figure 11.1 on page 316 of our text, I believe that Amazon and Walmart
should take their pricing strategy by optional product pricing. Consumers will look for
the lower rate, buy essentially upselling them on a good that is of higher quality say for
example standard DVD to Blu Ray could bolster sales. At this point, lower costs are
perceived as well as meeting the needs of consumers. Continuing with the example, if
consumers do not have a Blu Ray player, the companies can target them with product
bundle pricing. Now, put that Blu Ray dvd with this Blue Ray player for another all-time
low costs. Show the savings; consumers like this,
4. Low pricing is important, but in comparison to the other things a business needs to do
(like make money) it shouldn’t be taken to the extreme of hurting their profits. While I
(foolishly) view Walmart and Amazon as being smart enough not to make such decisions,
they already are. Understanding consumers perceived value and their value-based
payment price is quintessential to finding the appropriate all time conceived low cost to
gain their sale.
Chapter 12 Notes
Music Composer
1.
Producer
Label Company
Pandora
Streaming Platforms
and Networks
Consumer
Intermodal
Transportation
Products
Businesses
2. Horizontal conflict impacts Pandora by the number of alternative radio streaming companies
and “players” available to the market. Because the radio market is no longer a closed loop
network that is dictated by area codes or other geographic locations, Pandora risks losing its
listeners among the competitors like Spotify, the radio, online streaming, iTunes, or even
YouTube. The Vertical conflicts impacting Pandora are the licensing to songs, the audio quality
available to the company, the effectiveness of channels to stream their music, their intermodal
transportation networks, Pandora’s add-free listening with contracts could bolster their listening
audience, but also impact their profits due to the loss in advertising sales. However, these two
conflicts impact Pandora’s profits, quality, and exposer to the consumers
3. Through different distributor factors Pandora adds value for customers strictly through their
distribution factors by partnering with pioneer and alpine radio. This is an added value because it
includes customized radio though cars automatically. In addition, Pandora has created its
distribution to be customizable by the customer. They can create and change playlists based on
what they want, or Pandora will do it for them.
4. Pandora could be successful in the long term. I believe that the customization of music
playlists will keep customers wanting to use their radio systems. In addition, the free networking
isn’t bad (I know because I use it). There are few interruptions by advertisements and even then
the advertisements feel like they are marketed towards the stations I listen to. Partnering with
radio companies bolsters the company’s visibility and further helps keep the company
recognizable. The concern I have is their loss of revenue if customers continue to pay only $36 a
year for add-free radio. I wonder if the amount already given is enough to cover any loss in sales
from radio. As more listeners come there will be more plays of songs (as the article states) so if
an idividuals $3.00 a month is enough to listen to over 40 hours of music that means Pandora
plays for one person 2,400 minutes of music, averaging each song to 4 minutes that leaves 600
songs. Divide that by the amount a month, the company must be paying record companies less
than $.005 per song played…I don’t think people would like that kind of return on music.
Chapter 12 Notes
1. Dollar General has a unique pricing and retailing strategy. In according to the chapter,
Dollar General would be an off-price retailer. This is due to the companies extremely low
prices of $1.00 and revenue made up from large volumes of sales. The company stocks
limited supplies and only has the necessities which fits into the company strategy and
model. Furthermore, this makes the company function like a convenience store due to its
size and geographic placements.
2. The Dollar General has a unique strategy in segmentation, targeting, differentiation, and
positioning. The company segments too many suburban areas and selects locations based
on income levels. Surprisingly, not just low-income families shop at these locations,
Dollar General mentioned that incomes even over $50,000 come in to make purchases
and buy products on a regular basis. Spending behaviors and saving money won’t “go out
of style”. So the company then targets the wants and needs from consumers that need
quick, speedy, in and-out service to get the items that they really just need. Dollar
General provides these products at a low rate. The company further differentiates itself
from competitors and positions itself in such a way that it allures people to change their
shopping methods and ultimately “shift where they shop”.
3. Dollar General has been successful over the past 40 years due not only to its low price
but ability to supply the necessities and quality products in an environment that is easy to
get in and out of. “Save time. Save money. Every day.” Truly shows how the company
has managed to stay successful. “Keep it real and keep it simple”, “hassle-free
experience”, a large product mix, and small store footprint lead to the savings the
company advertises.
4. The Dollar General offers a different approach to selling then the brick-and-mortar
retailers. Because of this I think that the store will be successful despite the brick-andmortar stores. I say this because the savings and the time in-and-out of the store are
unobtainable at a brick-and-mortar location.
5. Against the online retailers, the Dollar General will succeed. This is because they poffer
many simple necessities that customers can get immediately. It is hard to believe that
consumers would be willing to pay and wait for shipping times to obtain groceries, toilet
paper, soap, etc. At this point, stores such as Dollar General will have the upper hand.
However, in the competition for other products and services for the consumers I would
not believe that Dollar General will be a better choice.
Chapter 16 Notes
1. The innovation from salesforce.com caused sales reps to interact better with customers by
creating an online method for communication. When it came to unique requirements for
different products and ideas, sales forces could customize practices that fit the individual
needs. It further eliminated customers need to download software and allowed access to
be quick and easy between them and sales reps. Additionally the salesforce.com team
was able to “dramatically improve customer relationships with advertisers”.
2. Salesforce.com made a difference in NBCU and GE Capital in different ways. For NBCU
the website helped with cross selling, the tools needed to sell new inventory, improved
customer relations, lastly, it gave them the ability to take chances. For GE Capital,
salesforce.com helped them the ability to receive better information more quickly, it gave
them the means to communicate with individual customer needs. Salesforce allowed for
lateral teamwork and communication from CEO’s and CFO’s.
3. In the selling process, salesforce.com addresses each process. They have teams that meet
directly with companies to create a preapproach to the marketplace and then help to
manage the actual approach as a product is being sold in the market. Furthermore, the
presentation and handling of the sales is worked to meet their customer’s desires. Followups with how products are selling and areas of growth are discussed with their customers
once a sale has been executed.
Looking forward, salesforce.com will have to develop products that help to manage the
flow of inventory and reordering process’s. Using RFID’s and barcodes to create a
database for each customer. When working with feedback and improvements, the
company currently creates, forums and customer satisfaction surveys are gathered for the
company’s performance feedback. Ultimately the company tries to maintain an effective
productivity process