Deck 1: Marketing: Creating Customer Value and Engagement

Question 1

With a classmate, choose a U.S.-based company whose products you think will do well in certain overseas markets. The company can be anything from a music group to a clothing retailer-anything that interests you. Suggestions include Papa John's Pizza, Zumba, StubHub, Katy Perry, or Bass Pro Shops. Then write a plan for how you would target and communicate with overseas markets.

Answer 1

Plans which aim and communicate with overseas market:
The following are the plans which aim and communicate with overseas market
• The exporter has to research about the export marketing objective before targeting the overseas market.
• Once the exporter researched about the export market, they need to collect information about demand for the specific products, competitors for the product, potential consumers, export policies, and regulation.
• The exporter has to analyze about the likes and dislikes of consumer, buying patterns.
• After analysis about the market, the exporter has to choose the market which would provide good return on investment for long term.
• The exporter should visit the selected overseas market for detailed investigation. Detailed investigation consists of competitors for the product, demand for the specific product, government rules and regulation, patents and trade mark of the products
• The exporter even has to analyze about the market which has a high inflation rate, instable government policies, high trade barriers and the exporter has to eradicate such overseas market.
• The exporter has to produce the products to the selected overseas market.
• At last, the exporter has to review about the market performance; if they find any problems then they need to resolve the problems or exit from the market that does not provide profit return.

Question 2

How do ethics and social responsibility help a firm achieve marketplace success?

Answer 2

Ethics:
The process that deals with the moral principles or values of behavior expected by a society is called as ethics.
Social responsibility :
Social responsibility is a marketing philosophy that comprises of strategy, procedure to boost the society benefits and help to grow the company business, satisfy the consumer needs and wants, and make the consumer buy the products in future.
Role of ethics and social responsibility in achieving marketplace success:
• Ethics and social responsibility help in the growth of the organization and brand image of the products.
• The socially responsible organizations concern about the employees, consumers and stockholders and enhancement of the market share.
• Organizations reduced the operating cost, as the recycling plan cut the waste disposal price and generated income by selling the recycling resources.

Question 3

Define relationship marketing, and describe how it fits into the marketing concept.

Answer 3

Relationship Marketing :
The marketing strategy crafted to promote the customer loyalty and long term value added relationship, to build a strong link with customers by satisfying their needs, is called as relationship marketing.
Marketing Concepts :
The marketing concept is constructed to meet consumer satisfaction with a set of goals and objectives of achieving long term success.
Justification:
Relationship marketing fits into the marketing concept by constructing a long term relationship between the supplier and consumer in order to satisfy the customer.

Question 4

What motivates firms to develop sustainable products?

Question 5

Why is utility such an important feature of marketing?

Question 6

At a local coffee shop you run into a friend who works for a social media firm that competes with yours. After a brief conversation he remembers an errand he has to run, and he rushes off with a hasty good-bye. As you gather your things to leave a few minutes later, you realize your friend left a file folder on the chair; inside is a report about a client. Your company is very interested in doing some work for this client in the future.
When you return the folder to your friend, would you mention the report and offer your own commentary on it? Why or why not?

Question 7

Sustainability. Johnson Johnson engages in a major effort to incorporate sustainability into its wide-ranging business activities. Visit the website listed here and read about the firm's recent activities. How does Johnson Johnson promote sustainability? What are some specific examples? www.jnj.com/connect/caring/environment-protection
Note: Internet Web addresses change frequently. If you don't find the exact site listed, you may need to access the organization's home page and search from there or use a search engine such as Google or Bing.

Question 8

Identify the four types of utility, and give an example of each.

Question 9

Choose a company that interests you from the following list or select one of your own. Research the company online, through business magazines, or through other sources to identify the scope of its business. Write a brief description of the company's current scope of business. Then describe strategies for avoiding marketing myopia, expanding the company's scope of business over the next ten years.
a. FedEx
b. Walt Disney World
c. General Electric
d. E*Trade
e. Intel

Question 10

Perhaps it's not entirely marketing expertise that has made Oreo reportedly the most popular cookie in the world. After all, it also tastes good, and it's fun to eat. But marketing has certainly helped the beloved chocolate wafer sandwich sail past competitors to celebrate its 100th birthday.
Successful early advertising pushed Oreos ahead of Hydrox, its nearest (and now defunct) rival. Wise strategizing led Oreo's producer Kraft Foods to tailor the creme and wafers to different consumer tastes in China, Japan, Indonesia, and Argentina, and later to switch to a trans-fat-free formula. Innovative marketing led to partnerships with Burger King, Carl's Jr., and the Cheesecake Factory, all of which now promote their use of Oreos as ingredients in their dessert offerings. Oreos have gone digital, too. The cookie racked up the most Facebook "likes" ever in a single day and now has 23 million Facebook fans. So it's understandable that 70 million cookies are eaten globally every day, earning $2 billion a year for the Nabisco brand. But perhaps the most elaborate marketing plan of all is the year-long global birthday party.
Kraft (which owns Nabisco) is celebrating with live events, prizes, promotions and public relations efforts around the world, plus a special ad campaign and online happenings, all tied to the theme, "Celebrate the kid inside." Fans can post photos, stories, and videos to a special Facebook gallery and qualify to be a "Birthday of the Day" celebrant on their own special day. "Flash" birthday parties in the United States will culminate in a multinational celebration in New York. China will host a fireworks display, a playground for all ages is opening in Indonesia, and there will be party games and cake in Dubai and piñatas in Venezuela. Fans in 200 countries can watch these events in real time on Facebook, too. Television ads will showcase adults and kids sharing Oreos and milk, print ads will commemorate iconic moments of the last 100 years, and the company website will feature games and recipes. There's even a special birthday variety of the treat in stores around the world, with rainbow candy sprinkles.
QUESTIONS FOR CRITICAL THINKING
1. How do Oreo's birthday celebration activities meet the definition of marketing?
2. What accounts for Oreo's popularity on Facebook, and is Kraft using this factor to the best marketing advantage?

Question 11

Why do not-for-profit organizations need to engage in marketing efforts?

Question 12

How does an organization create a customer?

Question 13

What benefits-monetary and nonmonetary-do social responsibility programs bring to a business?

Question 14

At a local coffee shop you run into a friend who works for a social media firm that competes with yours. After a brief conversation he remembers an errand he has to run, and he rushes off with a hasty good-bye. As you gather your things to leave a few minutes later, you realize your friend left a file folder on the chair; inside is a report about a client. Your company is very interested in doing some work for this client in the future.
Would you take a quick look inside the folder before you return it to your friend? Why or why not?

Question 15

With a classmate, choose one of the following not-for-profit organizations. Then come up with a for-profit firm with which you think your organization could form a strategic alliance. Create a presentation-an ad, a poster, or the like-illustrating and promoting the partnership.
a. Humane Society
b. The Water Project
c. Habitat for Humanity
d. National Multiple Sclerosis Society
e. World Wildlife Fund

Question 16

Marketing terminology. Like many subjects, marketing appears to have a language of its own. Visit the website of the American Marketing Association. Click on "Resources" and then "AMA Dictionary." Define the following terms: A/B testing, dating, never-out list, and will-call.www.ama.org

Question 17

Give an example of how the National Highway Traffic Safety Administration's "Click it or Ticket" campaign could use one or more of the nontraditional marketing techniques to promote the cause in a state that is newly adopting it.

Question 18

Consider each of the following firms and describe how the firm's goods and services can create different types of utility. If necessary, go online to the company's website to learn more about it. You can do this alone or in a team.
a. American Express, Visa, or MasterCard
b. Flickr or other online digital photo service
c. Club Med
d. Amazon.com
e. SuperValu supermarkets

Question 19

Why is determining the lifetime value of a customer an important analysis for a company to make?

Question 20

Geoffrey B. Small is a leading avant-garde fashion designer who wants you to think about your clothes-but not the style or color of the outfit you are wearing today, not what a great bargain it was, not the brand name, not which celebrities wear the same design. He wants you to dig deeper than that, thinking about the quality and origin of fabrics you wear, their impact on the environment, and your own view of social responsibility as a consumer. Even if you can't afford his clothes (created in one- or two-of-a-kind, limited editions), you can take away his messages about quality, value, service to the customer and community, and the importance of activism.
Now based in Italy-with easy access to the Paris fashion shows-Small began his career selling jeans at The Gap in Boston. Today, he shrugs off the marketing tactics of the large, name-brand clothing designers and retail outlets, which he believes do little or nothing to create utility for the consumer, because they hide the true cost of the clothes they are selling. "Corporate advertising has made people unaware of what they're really spending their money on, and what things are really costing them," says Small. Cheap fabrics, poor construction, and lack of attention to detail all add up to low prices and nearly disposable garments-costing consumers more money in the long run. "We have to re-educate a lot of consumers because what they think is cheap is not cheap at all," asserts Small. "It's the most expensive."
Small's clothing designs provide form utility by creating the highest-quality garments. Although customers often have to wait months for these hand-made garments, Small believes this is an asset. "Fifty years ago, machine-made products were perfect, new and exciting," explains Small. That's no longer the case. "We don't care how long it takes," he insists. "We don't care what it costs. What we care about is that it's the very, very best it can possibly be"- which is what his customers want. Consumers may view Small's clothes in motion at runway shows or at a select group of exclusive retail shops, or they may communicate with him directly. When they take ownership of a suit or coat, they have a highly individualized piece of clothing that some might call a work of art. "Customers are screaming for something personal and special," Small points out, "something that has a bond between one human being and another."
Small views his relationships with customers as critical to his success, referring to them as the "best and only financial backers" a designer should have. Since his clothes are made to last decades-25 to 30 years-he looks toward developing customer relationships that will survive just as long. "We're in a field where you normally do a lot of marketing," he observes. "I think it's more important to focus on great product, great service, value to the customer, and communicating with the customer honestly." That honest communication-about his products and his beliefs-has built Small a devoted following.
It would be easy for Small to hide in his design studio sketching clothes for a few high-end customers who want the novelty of something edgy and different to wear, which could lead him into the quicksand of marketing myopia. But that's not Small's style. He looks for new ways to satisfy customers without compromising his ideals-in fact, he stitches his ideals right into the fabrics of his clothing. Small is a genuine activist for social causes as well as environmental sustainability, which has proved to be an effective tool for connecting with the people who appreciate his designs. Customers see his activism, and when they make a choice about where to spend their money, they choose his brand. "That's where we want to be positioned," says Small. "We want to do more than just supply clothes. We want to play a role in the community."
Looking forward, Small believes it is his company's responsibility to set an example for other businesses. "The biggest challenge now is not to compromise," he admits, but "to focus on one piece at a time and make it the absolute best it can be."
Questions for Critical Thinking
1. Why is the link between relationship marketing and social responsibility so important to Small's business success?
2. Geoffrey B. Small is an avant-garde designer and unconventional businessperson. What examples does he set, and what might marketers for large corporations learn from his views and practices?

Question 21

Research one of the following electronics companies, or another of your choosing, and study its efforts to improve the sustainability of its products, particularly their safe disposal. What does the company do well in this area? What could it do better?
a. Toshiba
b. Nintendo
c. Microsoft
d. Fujitsu
e. Samsung

Question 22

What condition in the marketplace gave rise to the need for a consumer orientation by businesses after World War II?

Question 23

What might be some of the benefits of mobile marketing for firms that use it to reach out to consumers?

Question 24

How can marketers use interactive and social marketing to convert needs to wants and ultimately build long-term relationships with customers?

Question 25

Why is it important for a firm to establish high ethical standards for sustainability? What role do you think marketers play in implementing these standards?

Question 26

At a local coffee shop you run into a friend who works for a social media firm that competes with yours. After a brief conversation he remembers an errand he has to run, and he rushes off with a hasty good-bye. As you gather your things to leave a few minutes later, you realize your friend left a file folder on the chair; inside is a report about a client. Your company is very interested in doing some work for this client in the future.
Would you share any information in the report with anyone in your office? Why or why not?

Question 27

Describe the significance of the shift from transaction-based marketing to relationship marketing. When does relationship building begin?

Question 28

Event marketing. The Westminster Kennel Club runs the nation's largest dog show. Go to the event's website. Review the website and prepare a brief report relating what you learned to the material on event marketing in the chapter. Make sure to describe sponsor tie-ins and other joint marketing efforts. www.westminsterkennelclub.org

Question 29

How has social media, such as Twitter and Facebook, changed marketing communications?