Examples for MAR Midterm

positioning statement.

"To busy multitaskers who need help remembering things, Evernote is a digital content man- agement application that makes it easy to capture and remember moments and ideas from your everyday life using your computer, phone, tablet, and the Web."

customer-perceived value

what's a cooler worth—one of those insulated containers you take camping or haul to a picnic or tailgate party? If it's a YETI cooler, you can expect to pay from $229 to as much as $1,300 for the top-of-the-line Tundra model.

total market strategy

An example is general-market commercials for Cheerios and Swiffer that feature interracial families.

Marketing implementation

At John Deere, for example, marketing implementation for the company's residential, commercial, agricultural, and industrial equipment requires day-to-day decisions and actions by thousands of people both inside and outside the organization.

economic environment

For ex- ample, until fairly recently, American consumers spent freely, fueled by income growth, a boom in the stock market, rapid increases in housing values, and other economic good fortunes. They bought and bought, seemingly without caution, amassing record levels of debt. However, the free spending and high expectations of those days were dashed by the Great Recession of 2008-2009. Target: "Expect More, Pay Less"

Gender segmentation

For example, Dove's Men+Care line calls itself "The authority on man maintenance." The brand provides a full line of body washes ("skin care built in"), body bars ("fight skin dryness"), antiperspirants ("tough on sweat, not on skin"), face care ("take better care of your face"), and hair care ("3X stronger hair").5

income segmentation

For example, Fifth Avenue Club members have access to a Saks Personal Stylist. The fashion-savvy, well-connected personal consultant gets to know and helps to shape each client's personal sense of style, then guides her "through the maze of fashion must-haves." The Personal Stylist puts the customer first. For example, if Saks doesn't carry one of those must-haves that the client covets, the personal stylist will find it elsewhere at no added charge.7

age and life-cycle segmentation

For example, Kraft's Oscar Mayer brand markets Lunchables, convenient prepackaged lunches for children. To extend the substantial success of Lunchables, however, Oscar Mayer later introduced Lunch- ables Uploaded, a version designed to meet the tastes and sensibilities of teenagers. Most recently, the brand launched an adult version, but with the more adult-friendly name P3 (Portable Protein Pack). Now, consumers of all ages can enjoy what is rapidly becoming one of America's favorite noontime meals.

Local marketing

For example, Marriott's Renaissance Hotels has rolled out its Navigator program, which hyper-localizes guest experiences at each of its 155 lifestyle hotels around the world:21

differentiated marketing

For example, P&G markets at least six different laundry detergent brands in the United States (Tide, Gain, Cheer, Era, Dreft, and Bold), which compete with each other on supermarket shelves. Then P&G further segments each detergent brand to serve even narrower niches. For example, you can buy any of dozens of versions of Tide—from Tide Original, Tide Coldwater, or Tide Pods to Tide Free & Gentle, Tide Vivid White + Bright, Tide Colorguard, Tide plus Febreze, or Tide with a Touch of Downy.

Digital and social media marketing

For example, Petco's Pet Talk Place site is a place where pet lovers can "connect, share, and learn" via discussions boards dedicated to dogs ("the bark"), cats ("the purr"), fish ("the splash"), birds ("the chirp"), reptiles ("the hiss"), and other types of pets.

Online social networks

For example, Red Bull has an astounding 46 million friends on Facebook; Twitter and Facebook are the primary ways it communicates with college students. JetBlue listens in on customers on Twitter and often responds; one consumer recently Tweeted "Thanks for taking me home for the holidays @JetBlue. And thanks to the crew in Austin for giv- ing me a row to myself so I can sleep!" JetBlue Tweeted back "You're most welcome, Nancy! Thanks for letting us be your ride! Happy Holidays to you and your family! #VIPTreatmentForNancy."

market offerings

For example, San Diego recently launched a $9 million "Happiness Is Calling" advertising campaign that invites visi- tors to come and enjoy the city's great weather and good times—everything from its bays and beaches to its downtown nightlife and urban scenes.

Marketing

For example, Walmart has become the world's largest retailer—and the world's largest company—by delivering on its promise "Save Money. Live Better." Coca-Cola has earn a 49 percent global share of the carbonated beverage market—more than twice Pepsi's share—by fulfilling its "open happiness" motto with products that "spread smiles and open happiness every day all across the world." Facebook has attracted more than 1.4 billion active Web and mobile users worldwide by helping them to "connect and share with the people in their lives."

concentrated marketing

For example, Whole Foods Market has little more than 400 stores and about $14 billion in sales, compared with goliaths such as Kroger (more than 2,600 stores and sales of $98 billion) and Walmart (more than 11,000 stores and sales of $476 billion).18 Yet, over the past five years, the smaller, more upscale retailer has grown faster and more profitably than either of its giant rivals. Whole Foods thrives by cater- ing to affluent customers who the Walmarts of the world can't serve well, offering them "organic, natural, and gourmet foods, all swaddled in Earth Day politics." In fact, a typical Whole Foods customer is more likely to boycott the local Walmart than to shop at it.

Learning

For example, a person's drive for self-actualization might motivate him or her to look into buying a camera. The consumer's response to the idea of buying a camera is conditioned by the surrounding cues. Cues are minor stimuli that determine when, where, and how the person responds. For example, the person might spot several camera brands in a shop window, hear of a special sale price, or discuss cameras with a friend. These are all cues that might influence a consumer's response to his or her interest in buying the product.

Customer satisfaction

For example, according to one Ritz-Carlton manager, if the chain gets hold of a picture of a guest's pet, it will make a copy, have it framed, and display it in the guest's room in whatever Ritz-Carlton the guest visits.

political environment

For example, aspirin products sold in Dallas are governed by both federal labeling laws and Texas state advertising laws. Moreover, regulations are constantly changing; what was allowed last year may now be prohibited, and what was prohibited may now be allowed. Marketers must work hard to keep up with changes in regulations and their interpretations.

consumer-generated marketing,

For example, at its My Starbucks Idea site, Starbucks collects ideas from customers on new products, store changes, and just about anything else that might make their Starbucks experience better. "You know better than anyone else what you want from Starbucks," says the company at the Web site. "So tell us. What's your Starbucks idea? Revolutionary or simple—we want to hear it." The site invites customers to share their ideas, vote on and discuss the ideas of others, and see which ideas Starbucks has implemented.20

production concept

For example, both personal computer maker Lenovo and home appliance maker Haier dominate the highly competitive, price-sensitive Chinese market through low labor costs, high production efficiency, and mass distribution. However, although useful in some situations, the production concept can lead to marketing myopia. Companies adopting this orientation run a major risk of focusing too narrowly on their own operations and losing sight of the real objective—satisfying customer needs and build- ing customer relationships.

natural environment

For example, during a recent cold winter—in which the term polar vortex gusted into the American vocabulary—sales suffered across a wide range of businesses, from florists and auto deal- ers to restaurants, airlines, and tourist destinations. In contrast, the severe weather boosted demand for products such as salt, snow blowers, winter clothing, and auto repair centers.

marketing concept

For example, even 20 years ago, how many consum- ers would have thought to ask for now-commonplace products such as tablet computers, smartphones, digital cameras, 24-hour online buying, digital video and music streaming, and GPS systems in their cars and phones?

Positioning

For example, from its founding, Southwest Airlines has positioned itself as "The LUV Airline," a positioning recently reinforced by the colorful heart in its new logo and plane graphics design. As recent Southwest advertising affirms, "Without a heart, it's just a machine." The airline has "always put Heart in everything it does."

Perception

For example, individuals are exposed to an estimated 3,000 to 5,000 ad messages daily. The cluttered digital environment adds 30 bil- lion online display ads shown each day, 500 million Tweets sent daily, 144,000 hours of video uploaded daily on YouTube, and 4.75 billion pieces of content shared on Facebook every day.23 People can't possibly pay attention to all the competing stimuli surrounding them.

Geographic segmentation

For example, many large retailers—from Target and Walmart to Kohl's and Staples—are now opening smaller- format stores designed to fit the needs of densely packed ur- ban neighborhoods not suited to their typical large suburban superstores. Target's CityTarget stores average about half the size of a typical Super Target; its TargetExpress stores are even smaller at about one-fifth the size of a big-box out- let. These smaller, conveniently located stores carry a more limited assortment of goods that meet the needs of urban residents and commuters, such as groceries, home essentials, beauty products, and consumer electronics. They also offer pick-up-in-store services and a pharmacy.2

cultural environment

For example, most Americans believe in individual freedom, hard work, getting married, and achievement and success. These beliefs shape more spe- cific attitudes and behaviors found in everyday life.

Occasion segmentation

For example, most consumers drink orange juice in the morning, but orange grow- ers have promoted drinking orange juice as a cool, healthful refresher at other times of the day.

competitive advantage.

For example, online shoes and accessories seller Zappos' "powered by ser- vice" positioning would ring hollow if not backed by truly outstanding customer care. Zappos aligns its entire organization and all of its people around providing the best possible customer service. The online seller's number-one core value: "Deliver WOW through service."30

Benefit segmentation

For example, people buying bicycles are looking for any number of benefits, from competitive racing and sports performance to recreation, fitness, touring, transportation, and just plain fun. To meet varying benefit preferences, Schwinn makes affordable, quality bikes in seven major benefit groups: cruisers, hybrid, bike path, mountain, road, urban, and kids. Bike path bikes are "Perfect for riders who want a comfortable and easy-riding bike with convenient fea- tures for casual riding over all surfaces."

Psychographic segmentation

For example, retailer Anthropologie, with its whimsical, "French flea market" store atmosphere, sells a Bohemian-chic lifestyle to which its young women customers aspire. And VF Corporation of- fers a closet full of more than 30 premium lifestyle brands that "fit the lives of consumers the world over, from commuters to cowboys, surfers to soccer moms, sports fans to rock bands."8

mission statement

For example, social scrapbooking site Pinterest doesn't define itself as just an online place to post pictures. Its mission is to give people a social media platform for collecting, organiz- ing, and sharing things they love. And Chipotle's mission isn't to sell burritos. Instead, the restaurant promises "Food with Integrity," highlighting its commitment to the immediate and long-term welfare of customers and the environment. To back its mission, Chipotle serves only the very best natural, sustainable, local ingredients.

product concept

For example, some manufacturers believe that if they can "build a better mousetrap, the world will beat a path to their doors." But they are often rudely shocked. Buyers may be looking for a better solution to a mouse problem but not necessarily for a better mousetrap. The better solution might be a chemical spray, an exterminating service, a house cat, or something else that suits their needs even better than a mousetrap.

motive (or drive)

For example, starving people (physiological need) will not take an interest in the latest hap- penings in the art world (self-actualization needs) nor in how they are seen or esteemed by others (social or esteem needs) nor even in whether they are breathing clean air (safety needs). But as each important need is satisfied, the next most important need will come into play.

cause-related Marketing

For example, the P&G "Tide Loads of Hope" pro- gram provides mobile laundromats and loads of clean laundry to families in disaster-stricken areas—P&G washes, dries, and folds clothes for these families for free. Shake Shack runs an annual Great American Shake Sale: If you donate at least $2 at the reg- ister to Share Our Strength's No Kid Hungry program dedicated to ending child hunger in America, you get a $5 shake free on your next visit. And AT&T joined forces with competitors Verizon, Sprint, and T-Mobile to spearhead the "It Can Wait" campaign, which addresses the texting-while-driving epidemic by urging people of all ages to take the pledge to never text and drive. The campaign's cause-related message: "No text is worth the risk. It can wait."42

subcultures

For example, the U.S. Forest Service and the Ad Council recently joined forces to create the "Discover the Forest" public service campaign to raise aware- ness among families of the benefits for children of getting outside and enjoying nature. One round of the campaign specifically targeted the parents of African American tweens:4

diversification

For example, the com- pany recently expanded into the digital personal health and fitness tracking market by acquiring three fitness app companies—MapMyFitness, MyFitnessPal, and Endomondo. Under Armour might also consider mov- ing into nonperformance leisurewear or begin mak- ing and marketing Under Armour fitness equipment.

product development

For example, the company added athletic shoes to its apparel lines in 2006, and it con- tinues to introduce innovative new athletic-footwear products, such as the recently added Under Armour SPEEDFORM line. Sneaker sales rose 44 percent last year yet still account for only about 13 percent of total sales, again leaving plenty of growth potential.

Culture

For example, the cultural shift toward greater concern about health and fitness has created a huge industry for health-and-fitness services, exercise equipment and clothing, organic foods, and a variety of diets.

technological environment

For example, what would you think about having tiny little transmitters implanted in all the products you buy that would allow tracking of the products from their point of production through use and disposal? Or how about a bracelet with a chip inserted that would let you make and pay for purchases, receive personalized specials at retail locations, or even track your whereabouts or those of friends? On the one hand, such technology would provide many advantages to both buyers and sellers. On the other hand, it could be a bit scary. Either way, with the advent of radio-frequency identification (RFID) transmitters, it's already happening.

Marketing intermediaries

For example, when Coca-Cola signs on as the exclusive beverage provider for a fast-food chain, such as McDonald's, Wendy's, or Subway, it provides much more than just soft drinks. It also pledges powerful marketing support:3

market development

For instance, the company recently stepped up its marketing to women consumers, with new products and a highly acclaimed $15 million women- focused promotion campaign called "I Will What I Want."

attitude

It can be hard selling children on the idea of eating onions. Onions have a strong smell, they can make you cry, and many kids simply refuse to eat them. So to help change these attitudes, the VOC employed Shrek, the famous ogre from the hugely popular animated films. The inspiration came from a scene in the first Shrek film, in which Shrek explains ogres to his friend, Donkey. "Onions have layers, ogres have layers," says Shrek. "Ogres are like onions. End of story." The result was a national now-classic "Ogres and Onions" marketing campaign, launched to coincide with both the onion harvest and the premiere of the latest Shrek film. The campaign featured giant Shrek placards in grocery store aisles alongside bags of Vidalia onions on which Shrek asked, "What do ogres and onions have in common?" At the VOC Web site, Shrek offered kid-friendly Vidalia onion recipes. The award-winning campaign soon had kids clamoring for onions, and surprised and delighted parents responded. Sales of bagged Vidalia onions increased almost 30 percent for the season.

Lifestyle

KitchenAid cultivates "Kitchenthusiasts"—a lifestyle community of "hosts with the most" who thrive on cooking and entertainment chal- lenges. Its Kitchenthusiast blog, Facebook pages, and 11 Pinterest boards are brimming with recipes, cooking challenges, tips and tech- niques, and coverage of the latest cooking lifestyle news and events by key contributors. KitchenAid's "There's So Much More to Make" marketing campaign highlights how the brand's appliances contribute to the lifestyles of passionate Kitchenthusiasts. Says one ad: "When enter- taining elates you, when every machine does incredible things, there's so much more to make."

product/market expansion grid

Less than 20 years ago, Under Armour introduced its innovative line of comfy, moisture-wick- ing performance shirts and shorts with the mission "to make all athletes better through passion, design, and the relentless pursuit of innovation." Since then, it has grown at a torrid pace. In just the past five years, Under Armour's sales have quadrupled. Its earnings have grown at a blister- ing rate of 20 percent in every quarter during that five-year period. Under Armour is now the nation's second-best-selling apparel brand behind Nike. Looking forward, the company must look for new ways to keep growing.

customer lifetime value:

Stew Leonard, who operates a highly profitable four-store su- permarket in Connecticut and New York, once said that he sees $50,000 flying out of his store every time he sees a sulking cus- tomer. Why? Because his average customer spends about $100 a week, shops 50 weeks a year, and remains in the area for about 10 years. If this customer has an unhappy experience and switches to another supermarket, Stew Leonard's has lost $50,000 in lifetime revenue. The loss can be much greater if the disappointed cus- tomer shares the bad experience with other customers and causes them to defect. To keep customers coming back, Stew Leonard's has cre- ated what has been called the "Disneyland of Dairy Stores," complete with costumed characters, scheduled entertainment, a petting zoo, and animatronics throughout the store. From its humble beginnings as a small dairy store in 1969, Stew Leon- ard's has grown at an amazing pace. It's built 30 additions onto the original store, which now serves more than 300,000 custom- ers each week. This legion of loyal shoppers is largely a result of the store's passionate approach to customer service. "Rule #1: The customer is always right. Rule #2: If the customer is ever wrong, reread rule #1."

market penetration

Under Armour offers an ever-increas- ing range of styles and colors in its original apparel lines. And it boosted its spending on advertising and professional athlete and team endorsements last year by 35 percent over the previous year. The company has also added direct-to-consumer distribution channels, including its own retail stores and sales Web sites. Direct-to-consumer sales have tripled over the past seven years and now account for some 30 percent of total revenues.

aspirational group

one to which the individual wishes to belong, as when a young basketball player hopes to someday emulate basketball star LeBron James and play in the NBA.

Market targeting

or example, Ferrari sells only 2,200 of its very-high- performance cars in North America each year but at very high prices—such as its Ferrari California model at $198,000 or the 740-horsepower F-12 Berlinetta at an eye-opening $318,000. Most nichers aren't quite so exotic. Profitable low-cost airline Allegiant Air avoids direct competition with larger major airline rivals by targeting smaller, neglected markets and new flyers. Nicher Allegiant "goes where they ain't." And small online-search startup DuckDuckGo thrives among privacy-minded users in the shadows of search giants Google and Microsoft's Bing

derived demand

or example, demand for Gore-Tex fabrics derives from consumer purchases of outdoor apparel brands made from Gore-Tex. And consumers buy Corning's Gorilla Glass only when they buy laptops, tablets, and smartphones with Gorilla Glass screens from producers such as Apple, Samsung, Lenovo, Dell, HP, Sony, and Microsoft. If consumer de- mand for these end products increases, so does the demand for the Gore-Tex fabrics and the Gorilla Glass they contain.

need recognition

pg. 177