instructor newsletter -...
TRANSCRIPT
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INSTRUCTOR NEWSLETTERCONTENTS
FIRST PERSON
Marketing Author Bill Rudelius: Teaching Lessons I’ve Learned—Part 1
FOX BUSINESS VIDEO CLIP
Live TV in Your Car (CH03)
MARKETING VIDEO CLIPS & TV ADS
Want to Know Your Genome? (CH03)
MARKETING ARTICLE SYNOPSES
The Perfect Business (CH02)
Chief Executive: How Effective is Your Senior Team? (CH02)
BusinessWeek: Social Entreprenuers Turn Business Sense to Good (CH02)
Pew Internet & American Life: Adults and Social Network Websites (CH03)
LinkedIn: The Professional’s Social Network (CH03)
Chief Executive: Gauging New Media’s Impact (CH03)
BusinessWeek: PNC Lures Gen Y with Its ‘Virtual Wallet’ Account (CH03)
Business Week: Advertisers Adjust to Market Luxury in a Recession (CH03)
Advertising Age: Starbucks Surprise Success—Oatmeal (CH05)
Brandweek: Is Talk Cheap? How Cheap? (CH05)
Reuters: Not Buying American and November Trade Gap Shrinks on Record Import Plunge (CH07)
SPOTLIGHT ON MARKETING
Marketing Author Roger Kerin: Alternatives for Using the Videos Tied to the End-of-Chapter Video Cases
Kathryn Schifferle: My Experience with Visually-Enhanced Test Questions—Part 2
CONTACT US
Welcome to the Spring 2009, Issue #1 of the Instructor Newsletter, developed for adopters of Marketing and Marketing: The Core! This newsletter is devoted to providing you with innovative resources to help improve student learning, offer timely marketing examples, and make your class preparation easier. These resources include:
• A new feature, called First Person, which discusses a topic passionately held by one of the co-authors of Marketing and Marketing: The Core (see pages 2–3).
• Access to marketing-related video clips from our exclusive partner, Fox Business News (see page 4).
• Links to other resources that provide video clips and selected TV ads (see page 5).
• Synopses of marketing-related articles with In-Class Discussion questions where appropriate (see pages 6–17).
• Spotlight on one or more pedagogical features of Marketing and/or its supplements (see pages 18–19).
This issue corresponds to Chapters 1–7 of Marketing and Marketing: The Core to facilitate your class preparation. Each newsletter is archived on our website, which is located at www.mhhe.com/kerin.
We hope that you will find these newsletters an invaluable resource. If you have any suggestions regarding future articles, resources, and/or improvements, please contact us. Have a great Spring term!
www.mhhe.com/kerin
SPRING 2009 ISSUE 1
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How we teach those dozens of college students does matter and does effect student learning! Let’s focus here on making classes better. The ideas presented below arise from four decades of observing my professors, colleagues, and students in the classroom. Not all may appeal to your particular teaching style—which we all have to discover on our own—but please, still give these ideas some thought.
• Getting to Class Early. I’ve learned to get to class 10 minutes early to focus and put my notes (using today’s classroom technologies) in place. The first principle I learned as a student in a huge freshman chemistry lecture at Wisconsin is to write a 10-point or 12-point outline (or “advanced organizer”) on the left or right panel at the front of the classroom before the class starts. This (1) gives the students a roadmap for the day and (2) forces me to be clear in my own mind about what the day’s key takeaways are. The time allotted to each topic is does not have to be the same length; it can vary by the quality of the class discussion. However, the outline of the topics to be covered does tell the class where we’re headed. Perhaps only 10 percent of classes I’ve sat in use this advanced organizer. Also, I’ve learned to handle most special student problems after, and not before the class, when I’m trying to get organized.
• Starting the Day’s Class. During my first years of teaching, I spent the opening five minutes of the class making announcements, handling classroom trivia, and the like. Dumb! Really dumb!! Colleagues have taught me to start off with what I think is really an important attention-getting example or story related to the key topic(s) for the day. For the past 15 years, I’ve spent a lot of time teaching in eight Eastern European countries—from Russia and Poland to Bulgaria and Ukraine. You’ll be embarrassed for me when I say that probably 90 percent of the time in the U.S. or abroad I start off with our “better mousetrap” in-class activity (ICA 1-2 in our Instructor’s Survival Kit)—whether the audience is students, instructors, or businesspeople. The example is attention-getting, perhaps outrageous and silly; but it focuses on key marketing ideas. And in those 20 minutes it ends with what I believe is the single most useful analytical device—market-product grids (Chapter 9 in the textbook)—in all of marketing. Save the announcements for the middle or end of class.
• Setting the Ground Rules. Halfway through class on Day 1, I hand out and discuss the syllabus, all the housekeeping rules, and so on. Then I try to make two key points—mostly taken from colleagues--with roughly these quotes:
– The textbook. “You are responsible for reading and understanding the assigned chapters in the textbook. I will not go over these in detail except under one of three circumstances: The topic is especially (1) important, (2) difficult, or (3) fun (like silly new product failures or silly ads).”
– What’s important. I used to be bothered by students frantically writing notes on things that didn’t much matter and daydreaming when I said things that did. So my current line is: “When I pull my right ear, stop daydreaming and make notes on the thing that’s coming.” This even reaches the students in the back row sneaking looks at the student newspaper.
• Using Class Time by Having Students “Do Marketing.” Effective use of classroom time is obviously essential. Some thoughts are:
– Find ways to have students “do marketing.” Because I kept bread on the table in grad school by doing stress analysis on the first Discoverer spy satellite, I had never taught for a single minute before my first class at Minnesota. So, after teaching for a decade, I signed up for a how-to-teach a course.
Editor’s Note: Presented below is a commentary from one of our authors of Marketing, which will appear periodically in this newsletter.
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FIRST PERSON
Author: Bill Rudelius, University of Minnesota.
Teaching Lessons I Think I’ve Learned—Part 1
SPRING 2009 ISSUE 1
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The brilliant opening example in Robert Mager’s book* that was assigned was, “Suppose you take a course to learn to ride a unicycle. The final exam consists of a four-question, pencil-paper test starting with Question #1: Define unicycle.” What’s wrong with this picture? The final exam should have been: “Climb on a unicycle and ride it for 100 yards without killing yourself.”
– Apply the “do-marketing” lesson. The takeaway from this “do unicycling” example is that I should be having my students “do marketing.” I threw out two-thirds of my lecture notes because they were so goofy or theoretical. This means you see “doing marketing” in the teaser examples within the textbook chapters, in the videocases and Appendix D cases, and in-class activities from our Instructor’s Survival Kit. This is stressed in our Instructor’s Resource Manual.
– Teach to the important learning objectives. Also, try to tie them to “do-marketing” activities. Stress the ones you see as critical. All of those in our textbook are not equally important. (I’m ashamed to say I had taught for six or seven years before hearing the phrase “learning objective.”)
• Making Class Time More Exciting. Whether your marketing principles class has 25 or 250 students, the instructor’s classroom role in this world of video games, iPods, and TV has changed from a generation ago. The class is now, perhaps, 80 percent content and 20 percent “theater”. More thoughts:
– Have students “do marketing” with in-class presentations. One way, not feasible with huge lecture classes, is to use “7-5-3 presentations” (see the Instructor’s Resource Manual) by student teams who give elements of their written marketing plans. Other ways are with presentations of case or videocase recommendations or sharing collaborative learning ideas from teams.
– Illustrate key topics with powerful stories. At Penn, I had a remarkable professor, Morris Hamburg, who made his statistics—yes, statistics!—course fascinating using what he called his “nonviolent war stories.” These always tied to a basic statistics concept that the nonviolent war story clarified in a memorable way. Thank you, Professor Hamburg, for a phrase—and teaching concept—I’ve borrowed and used for years.
– Humanize marketing. Marketing isn’t statistics! So, it’s easier for marketing instructors to find real marketers who made brilliant marketing decisions that students can relate to. And these need to provide role models for the diverse cross section of students in today’s marketing classes.
– Make sure your PowerPoint slides include key figures. If many students are not attempting to read and understand important tables and graphs in the textbook, ensure that the key ones are covered carefully as PowerPoints in your lecture.
– Teach “up and down,” not “flat.” A while back, I heard writer Kurt Vonnegut give a lecture on writing. He diagrammed Goldilocks and the Three Bears on the blackboard—time on the horizontal axis and excitement/involvement on the vertical one. An absolutely brilliant example! So, in the classroom, consider teaching up and down—varying examples from brilliant marketing programs or ideas to absolutely ridiculous ones. Where possible, we try to do this in textbook chapters, such as Chapter 10 that opens with Steven Jobs and his Apple new product innovations (the “up”) and moves to ridiculous new product disasters like “Avert Virucidal” tissues or “Hey! There’s a Monster in My Room” spray (the “down”).
* Robert F. Mager, “Measuring Instructional Intent or Got a Match?” (Belmont, CA: Lear Sigler, Ins./Fearon Publishers, 1973), pp. 1-2.
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FIRST PERSON
Teaching Lessons I Think I’ve Learned—Part 1 (Continued)
SPRING 2009 ISSUE 1
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SPRING 2009 ISSUE 1
Source: CES 2009: Fox Business News—January 9, 2009 (TRT 3:02). Click the “Go Big” icon to expand the size of the video screen.
Issue: Connell McShane interviews Winston Guillory of AT&T CruiseCast on satellite TV in the car.
Relevant Chapter(s): Chapter 3 (Technology) Marketing and Marketing: The Core.
Synopsis:
During the second week of January, Las Vegas hosts the International Consumer Electronics Show (CES), which is the largest consumer electronics tradeshow in the world that can demonstrate where technology trends are likely to occur. Over 2,700 exhibitors were featured at the 2009 CES, which was held January 8-11. Most of the global consumer electronics manufacturers (Sony, Panasonic, Microsoft, etc.) exhibit at the show. Some of the notable technology products that debuted at previous CES events include the video cassette recorder (1970), the compact disc player (1981), the DVD (1996), High Definition Television or HDTV (1998), among others.
AT&T CruiseCast (www.cruisecast.com) introduced the world’s first in-car satellite TV viewing system at the 2009 CES. Only installed for viewing by back seat passengers, the system retails for $1299 for the antenna and $28 per month for the programming, which currently consists of 22 TV channels (Disney Channel, Bravo, Nickelodeon, CNBC, among others). The service also offers 20 satellite radio channels as well. AT&T CruiseCast is scheduled to launch in the spring of 2009.
VIDEO CLIP
SPRING 2009 ISSUE 1
In-Class Discussion Questions:
Question #1: What do you think of viewing satellite-delivered TV in your car (a service similar to SiriusXM Satellite radio)?
Question #2: Would you buy the technology for $1,299 and pay the monthly $28 subscription fee for the service? Why or why not?
Question #3: What do you think of the reasons cited as to why consumers would purchase this service?
“Live TV in Your Car”(Click on this title to view the video clip)
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Synopsis:
Founded by Anne Wojcicki and Linda Avey, 23andMe (see www.23andme.com) provides its customers with their personal genetic information using the latest advances in DNA analysis and web-based interactive tools. The “23” in the corporate name signifies the 23 chomosomes that each of us has in our genome. The “Me” indicates that each of us has a unique set of 23 chomosomes consisting of about 20,000 genes in total. Our genes define who we are—what characteristics (hair color, cancer risk, type of ear wax, and other quirky traits) we have.
To analyze your genome, all you have to do is to go to the 23andMe website and order the $399 kit. When you receive the kit, there is a tube that you spit into. Return the tube to 23andMe. In about eight weeks later, you can login into the website and start exploring your genome. 23andMe currently provides data on about 90 different traits and diseases—more are added each month. One popular feature involves an analysis of a person’s pharmacogenomics—how one reacts to specific medications, such as pain relievers like ibruprofen (Advil). 23andMe also provides a primer (many topics have videos) on genetics (see www.23andme.com/gen101) so that consumers can better understand its service.
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SPRING 2009 ISSUE 1
In-Class Discussion Questions:
Question #1: What do you think of the concept of knowing your personal genetic make-up? Do you think there is a trend for this type of service?
Question #2: Would you buy the service for $399? Why or why not?
MARKETING VIDEO CLIPS & TV ADSPresented below is a video clip or TV ad designed to illustrate a marketing issue and/or a product.
Source: Emily Singer, Technology Review—November/December 2008(TRT 6:29).
Issue: Anne Wojcicki and Linda Avey, founders of the personal-genomics company 23andMe, talk about their goals for the company and the drive to personalize medicine.
Relevant Chapter(s): Chapter 3 (Technology) Marketing and Marketing: The Core.
“Want to Know Your Genome?”(Click on this title to view the video clip)
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Synopsis:
Richard Russell, editor of Dow Theory Letters, the leading U.S. and global economics and investment newsletter that has been published since 1958, once asked a friend what was the single best business he’d ever come across? The friend answered, “I have a client whose sole business is manufacturing a chemical that is critical in making synthetic rubber. This chemical is used in very small quantities in rubber manufacturing, but it is absolutely essential and can be used in only super-refined form.
My client is the only one who manufactures this chemical. He therefore owns a virtual monopoly since this chemical is extremely difficult to manufacture and not enough of it is used to warrant another company competing with him. Furthermore, since the rubber companies need only small quantities of this chemical, they don’t particularly care what they pay for it—as long as it meets their very demanding specifications. My client is a millionaire many times over, and his business is the best I’ve ever come across.”
Here are several criteria for what I’ve termed the IDEAL BUSINESS. Obviously, the ideal business doesn’t exist and probably never will. But if you’re about to start a business, join someone else’s business, or if you want to buy a business, the following list may help you. The more of these criteria that you can apply to your situation, the better off you’ll be.
• The ideal business sells the world, rather than a single neighborhood or even a single city or state. In other words, it has an unlimited global market.
• The ideal business offers a product that enjoys an “inelastic” demand. Inelastic refers to a product that people need or desire— almost regardless of price.
• The ideal business sells a product that cannot be easily substituted or copied. This means that the product is an original or at least it’s something that can be copyrighted or patented.
• The ideal business has minimal labor requirements (the fewer personnel, the better). Today’s example of this is the much-talked about “virtual corporation.” The virtual corporation may consist of an office with three executives, where literally all manufacturing and services are farmed out to other companies.
•The ideal business enjoys low overhead. It does not need an expensive location; it does not need large amounts of electricity, advertising, legal advice, high-priced employees, large inventory, etc.
• The ideal business does not require big cash outlays or major investments in equipment. In other words, it does not tie up your capital (incidentally, one of the major reasons for new-business failure is under-capitalization).
“The Perfect Business”(Click on the title to go to the website)
Source: Richard Russell, Dow Theory Letters.
Relevant Chapter(s): Chapter 2 Marketing and Marketing: The Core.
MARKETING ARTICLE SYNOPSIS
SPRING 2009 ISSUE 1
Opening In-Class Discussion Questions:
Question #1: What is a “business?” What are some examples of businesses that you would want to work for or own? Why?
Question #2: What do you think the “perfect business” would be like? Identify and describe the criteria that you think would define this “perfect business?”
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Synopsis Continued:
• The ideal business enjoys cash billings. In other words, it does not tie up your capital with lengthy or complex credit terms or accounts receivable.
• The ideal business is relatively free of all kinds of government and industry regulations.
• The ideal business is portable or easily moveable. This means that you can take your business (and yourself ) anywhere you want—Nevada, Florida, Texas, Washington, etc. (no state income taxes) or hey, maybe even Monte Carlo, Switzerland, or the south of France!
• Here’s a crucial one that’s often overlooked: the ideal business satisfies your intellectual (and often emotional) needs. There’s nothing like being fascinated with what you’re doing. When that happens, you’re not working, you’re having fun.
•The ideal business leaves you with free time. In other words, it doesn’t require your labor and attention 12, 16 or 18 hours a day.
• Super-important: the ideal business is one in which your income is not limited by your personal output (lawyers and doctors have this problem). In the ideal business, you can sell 10,000 customers as easily as you sell one (publishing is an example).
This list may help you cut through a lot of nonsense and hypocrisy and wishes and dreams regarding what you are looking for in life and in your work. None of us own or work at the ideal business. But it’s helpful knowing what we’re looking for and dealing with. As a buddy of mine once put it, “I can’t lay an egg and I can’t cook, but I know what a great omelet looks like and tastes like.”
“The Perfect Business” Continued(Click on the title to go to the website)
MARKETING ARTICLE SYNOPSIS
SPRING 2009 ISSUE 1
Concluding In-Class Discussion Question:
Question #3: What do you think of Russell’s list for the “perfect business?” Which criterion do you agree or disagree with and why?
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Synopsis:
Most big companies today are not led exclusively by a CEO, but rather by a senior-level team that helps advise the CEO. There is a problem in many companies in regards to effectively using this senior-level team. Most CEOs have trouble getting the most out of their teams. Problems arise from several different reasons.
Senior-level advisors are typically strong-willed people who want to lead others. When they have meetings with their CEO, they can have trouble expressing their ideas in a constructive matter, failing to give in to superiors. Many members also perform individual roles for the team and then fail to share that work so that it’s beneficial for the team as a whole. On most teams, certain members, known as “derailers,” will attempt to undermine the team’s efforts in an attempt to get their own views implemented.
However, there are solutions for CEOs to manage their senior-level teams. The first is to clearly define the team’s purpose as a group. Let the members know what their jobs are and aren’t, and define what decisions the CEO will make on his or her own. Second, make sure the people on the team contribute to the team’s success. This means two things: (1) avoid having “derailers” on the team, and (2) avoid having a team that works well together but doesn’t accomplish anything. The key is to make progress. The last step is to set a good example. CEOs need to work the way they want their teams working, and to respect the team’s advice when it is asked.
“How Effective is Your Senior Team”
MARKETING ARTICLE SYNOPSIS
Source: Jennifer Pellet, Chief Executive, September/October 2008.
Relevant Chapter(s): Chapter 2 Marketing and Marketing: The Core.
SPRING 2009 ISSUE 1
In-Class Discussion Questions:
Question #1: Which of these problems have you experienced while working in groups? How did you solve them? What kinds of people do you work with best?
Question #2: Is it more important to have a compatible team or a strong-willed team?
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“Social Entrepreneurs Turn Business Sense to Good”(Click on the title to go to the website)
MARKETING ARTICLE SYNOPSIS
Source: Steve Hamm, BusinessWeek, December 8, 2008.
Relevant Chapter(s): Chapter 2 Marketing and Marketing: The Core.
SPRING 2009 ISSUE 1
Synopsis:
For years, nonprofit organizations have attempted to bring about social change to the world. This has proven to be quite a task, especially considering that the total investments made to social enterprises were roughly 1 percent of investments made to venture capitalist enterprises. Generally speaking, social organizations have had trouble getting significant funding for operations.
However, there is hope for social organizations, and it involves capital. Not-for-profit organizations have formed partnerships with other businesses, governments, and even banks. Many of them are even going “for-profit.” That is, they are operating more like capitalist enterprises, taking in money in order to run. The additional revenue has allowed them to remain in business for longer than they would have otherwise, and in turn have greater success initiating social improvements.
There are, of course, moral dilemmas to this capitalist revolution. The idea that companies are “profiting off the poor” has caused a bit of a backlash for social enterprises, especially since some social businesses are in fact taking advantage of their underprivileged groups instead of helping them. Overall, though, the capitalist movement of social entrepreneurs seems to be a positive approach in adjusting to a global shortage of funds. It reflects the notion that hope is indeed on the way for places with economic problems.
In-Class Discussion Questions:
Question #1: Do you think it is wrong to make money instituting social programs?
Question #2: What are the benefits of not-for-profit agencies taking capitalist approaches to business?
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Synopsis:
Compared to eight percent four years ago, thirty-five percent of U.S. adults who go online use social networking sites, such as MySpace, Facebook or LinkedIn, the Pew Internet & American Life Project reported this week. Compare this to the sixty-five percent of online teenagers 12 to 17 using these sites, and three-quarters of Internet users between 18 and 24. Just 7 percent of Internet users who are 65 and older are on these websites.
Although men and women were equal in use, the survey found that those with lower incomes were more likely to use social networks, which may have contributed to the differences when it came to race. About thirty-one percent of white Internet users said they have a profile on at least one social network website, compared with forty-three percent of black and forty-eight percent of Hispanic adults.
Even though more companies are creating a presence on social networking sites, the main reason for logging on for eight-nine percent of adults is friendship. Only twenty-eight percent said they used it for work-related contacts. The median ages of MySpace and Facebook users were 26 and 27 years old, respectively. At the career-focused LinkedIn, it was 40 years old. The “grown-up” demographic, people over 30, is the fastest-growing of all.
“Adults and Social Network Websites”(Click on the title to go to the website)
Source: Amanda Lenhart, Pew Internet and American Life Project, January 14, 2009.
Relevant Chapter(s): Chapter 3 (Social) Marketing and Marketing:The Core.
MARKETING ARTICLE SYNOPSIS
SPRING 2009 ISSUE 1
In-Class Discussion Questions:
Question #1: How many of you use Facebook? MySpace? Other social networking websites?
Question #2: Why do you use (or NOT use) these social networks?
Author: Kathryn Schifferle, Marketing Professor, California State University—Chico.
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Synopsis:
As many Internet websites, LinkedIn has started out in the living room of one of its co-founders. The website launched on May 5, 2003, when the five founders invited 300 of their most important contacts to join. Six years later, LinkedIn has become an interconnected network of professionals from all over the world, representing 170 industries from accounting to computer games to market research to telecommunications. Over 34 million members (as of January 2009) exchange ideas and collaborate on projects, find new business opportunities and potential partners, post job listings, and gather data.
When you join LinkedIn, you create your professional profile: your experiences, accomplishments, education, and so on. This profile is available to your network which consists of your direct connections (1st degree), your connections’ connections (2nd degree), and their connections (3rd degree). As a LinkedIn member, you can stay in touch with your classmates and colleagues as well as be introduced and connect to other professionals.
LinkedIn offers a place to share expertise with others in your field. You can ask questions and post answers in general Q&A areas (such as Marketing or Professional Development) or you can join alumni and industry groups and gain new insights from discussions with people who share your interests.
When an employer posts a job listing on LinkedIn, you can find whether someone in your network works at this company and can introduce you. Or you may be interested in a specific career (for example, as a marketing analyst or brand manager) and want to learn more about job functions. Then you can request an informational interview from a fellow member who holds a similar position. Or you may be interested in a specific company and you can find inside connections there through your network.
“The Professional’s Social Network”(Click on the title to go to the website)
Source: LinkedIn website.
Relevant Chapter(s): Chapter 3 (Social) Marketing and Marketing: The Core.
MARKETING ARTICLE SYNOPSIS
SPRING 2009 ISSUE 1
In-Class Discussion Questions:
Question #1: How many of you have heard of LinkedIn?
Question #2: Why would professionals use such a social networking website?
Author: Marina Avdyukhina.
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Synopsis:
A new generation of websites is taking over the World Wide Web due to an increase in customer control over the Internet. More than ever before, Internet users are taking advantage of online products and services, and the companies that can best provide these products and services are profiting big time. For example, the website Trivop.com offers video tours of hotels around the world, so that customers can view a hotel before reserving a room. Another website, Uber.com, allows users to share songs and slideshows and post comments. Online video is also becoming extremely popular. The once-struggling company Akamai has resurrected itself by using innovative software to provide online video faster than ever.
As online video becomes more readily available to consumers, television programs are spreading to the Internet. The television industry must increasingly respond to consumer demands, because if a viewer isn’t satisfied by the industry, he or she can simply turn to the Internet to watch commercial-free shows at no cost. What’s more, the Internet provides a medium through which television viewers can express their opinions about television shows. The company eMarketer is taking advantage of the increased importance of the Internet by collecting and analyzing sources of Internet research. According to eMarketer, large
media networks must provide content in as many forms as possible—on both television and the Internet—if they want to adapt to the rise in customer control.
“Gauging New Media’s Impact”
MARKETING ARTICLE SYNOPSIS
Source: Joe McCarthy, Chief Executive, September/October 2008.
Relevant Chapter(s): Chapter 3 (Social) Marketing and Marketing: The Core.
SPRING 2009 ISSUE 1
Opening In-Class Discussion Question:
Question #1: What are five of the most popular websites today? Five years ago, how many of these websites had you heard of?Answer #1: Yahoo!, Google, eBay, MSN, and Live.com.
Concluding In-Class Discussion Question: SHOW THE ATTACHED EMARKETER POWERPOINT SLIDE
Question #2: According to eMarketer, when did the year-to-year growth (actual and projected) in online advertising spending peak? Why do you think each year’s decline is less than the previous year after 2007?Answer #2: 2007. The reasons may be that (1) Saturation of people owning/using computers beginning to be achieved; (2) Many people may now NOT want to view online ads; (3) Effectiveness of online ads may be waning; and (4) others as identified.
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“PNC Lures Gen Y with Its ‘Virtual Wallet’ Account”(Click on the title to go to the website)
MARKETING ARTICLE SYNOPSIS
Source: Burt Helm, BusinessWeek, December 8, 2008.
Relevant Chapter(s): Chapter 3 (Social) Marketing and Marketing:The Core.
SPRING 2009 ISSUE 1
Synopsis:
While most banks attract new customers by increasing interest rates, Pittsburgh-based PNC Bank is doing it another way: with a user-friendly online product called “Virtual Wallet.” The online service allows consumers to view their accounts all on one screen, and to drag money from one account to another. It shows people their expected cash flow in calendar form, and even sends updates via text messaging. The result: 70% of their consumers are from Generation Y.
PNC’s introduction of the Virtual Wallet all started with research. In 2007, the company hired consultants to study 18-34 year olds and their banking habits. The conclusions were that (1) 18-34 year olds find bank websites confusing, and (2) 18-34 year olds don’t manage their money well. Because of these findings, PNC set out to create a user-friendly website that would attract younger prospective buyers even without higher interest rates. In fact, the numbers on the checking and savings accounts are well below the national average.
Nevertheless, PNC has managed to sign up more than 20,000 Virtual Wallet customers this year, and it expects to break even after only two years. The early success of the banking system suggests that interest rates aren’t the only feature that affects buying motives, and that banks can profit off of user-friendliness. Especially since PNC is attracting customers from Generation Y that could become long-term customers, it will be interesting to see if other banks follow their user-friendly example and promote simplicity over interest rates. Only time will tell if this is the case.
In-Class Discussion Questions:
Question #1: Would you use Virtual Wallet accounts over other banking accounts? Why or why not? What factors is this decision based on?
Question #2: How does Virtual Wallet reflect PNC’s target market?
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“Advertisers Adjust to Market Luxury in a Recession”(Click on the title to go to the website)
MARKETING ARTICLE SYNOPSIS
Source: Burt Helm, BusinessWeek, November 10, 2008.
Relevant Chapter(s): Chapter 3 (Economic) Marketing and Marketing: The Core.
SPRING 2009 ISSUE 1
Synopsis:
In light of the recent economic recession, many companies that sell luxury products are changing their sales pitch. These companies must convince consumers that even though their products are expensive, they are smart purchases in the long run. General Electric, for example, recently started selling its Profile washer and dryer set for $3,500. GE’s advertising campaign focuses on the fact that the Profile set minimizes the amount of water, soap, and electricity per load, and will therefore save money in the long term. The Swiss skin-care company, La Prairie, has also changed its advertising strategy, highlighting the idea that even though its ointments are expensive, they are still far more affordable than similar prescription products. The car company Lexus is emphasizing the fact that Lexus cars have the “lowest cost of ownership,” meaning that they are some of the most fuel-efficient, durable cars in the market. Another car company, Hyundai, has recently developed its first luxury cars. Hyundai hopes to gain customers during the recession by pointing out that its cars are similar to other luxury cars but far less expensive.
All four of these companies are trying to sell luxury products at a time when even the wealthiest market segment is concerned about the state of the economy. To succeed, they must adopt a new advertising pitch that stresses practicality, rather than luxury.
In-Class Discussion Question:
Question #1: Would you expect Lexus sales to increase or decrease during an economic recession? Why?
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Synopsis:
Starbucks’ oatmeal has sold extremely well recently, and it is now the company’s best-selling food product. Throughout the United States, even in warm weather, oatmeal has especially gained popularity with the millennial generation (Americans born in the 1990’s and 2000’s), women, and seniors. Even though oatmeal takes at least three minutes to prepare, Starbucks has been able to successfully market the product by (1) focusing on the health benefits of oatmeal and (2) saving customers the trouble of buying coffee and oatmeal at two separate locations. A high percentage of Starbucks’ oatmeal sales go to existing
buyers of their coffee, rather than to new customers. To further promote the product, Starbucks offered free oatmeal to 1.5 million rewards-program members in September 2008.
Quaker’s oatmeal sales have also changed dramatically in the past year. While the total number of oatmeal sales over the past year was about the same as the previous year, certain types of oatmeal have shown considerable growth. Quaker’s Simple Harvest Oatmeal has increased its sales by almost 800% to $20 million, and its Weight Control Oatmeal has grown 6% to $29 million.
The rise in oatmeal is expected to continue into the winter months, and relatively inexpensive foods such as oatmeal are often popular in times of economic recession. In the coming months, Starbucks aims to improve oatmeal’s image and market it mainly to health-conscious women. Starbucks makes more money per bowl of oatmeal than for most of its pastry products, so it stands to profit greatly from a further boost in oatmeal sales.
“Starbucks Surprise Success: Oatmeal”Source: Emily Bryson York, Advertising Age, October 13, 2008.
Relevant Chapter(s): Chapter 5 Marketing and Marketing: The Core.
MARKETING ARTICLE SYNOPSIS
SPRING 2009 ISSUE 1
In-Class Discussion Questions:
Question #1: How many of you drink Starbucks’ coffee? How many of you eat oatmeal? How many of you have eaten oatmeal at Starbucks? If you haven’t, would you?
Question #2: What are some advantages to Starbucks of complementing coffee sales by selling food products such as oatmeal?
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“Is Talk Cheap? How Cheap?”(Click on the title to go to the website)
MARKETING ARTICLE SYNOPSIS
Source: Todd Wasserman, Brandweek, November 10, 2008.
Relevant Chapter(s): Chapter 5 Marketing and Marketing: The Core.
SPRING 2009 ISSUE 1
Synopsis:
What is a consumer’s two cents worth to a marketer? About 50 cents on behalf of a given brand, according to Dave Balter, president at BzzAgent, a Boston-based word-of-mouth marketing agency.
The word-of-mouth marketing industry is proceeding towards a standardized ROI metric, but the W-O-M marketing industry’s trade group, the Word of Mouth Marketing Association, has yet to settle on one. The difficulty of establishing a metric, such as the TV industry’s CPM (cost per thousand), and a methodology to calculate word-of-mouth calls into question the true value of viral marketing.
“It's a very hot topic,” said David Bank, an analyst with RBC Capital Markets. “I might think I’m paying X amount for a CPM, but if virality is 30 times that, I’m paying so much less. If you have a 27 times virality rate, you really paid a 27th of that.”
If anything, word-of-mouth marketing—which is based on a viral model—is even tougher to quantify. For its part, BzzAgent measures the success of a W-O-M campaign by dividing sales by total conversations, which is how the company arrived at the 50¢ figure.
But measuring sales can be tricky, especially if a W-O-M campaign isn’t national. That’s why some W-O-M practitioners, like Procter & Gamble’s Tremor unit, measure success of a W-O-M effort by comparing areas where a campaign has run with places it hasn’t. But sales can also be affected by other factors, like an ad campaign. Nevertheless, some think W-O-M is measurable.
In-Class Discussion Question:
Question #1: What is a marketing metric and why is it an important tool for marketers?
Question #2: How would you measure word-of-mouth (WOM)? What is the value of such a ROI metric discussed in the article if it is so difficult and perhaps costly to measure?
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Synopsis:
U.S. exports declined for the past four months from August to November, 2008. Earlier in 2008, overseas demand for U.S. goods and services was stronger, which helped the U.S. economy. In October, U.S. imports fell, due in part to lower energy prices. However, exports fell even faster, causing the U.S. trade deficit to swell to a new record high.
In November 2008, the U.S. trade deficit shrank 29 percent—the largest drop in 12 years—due to a further weakness in consumer demand for goods and services as well as a significant drop in oil prices. For November, the trade deficit was $40.4 billion, down from $57.2 billion in October. This sharp drop does not bode well for December 2008 and 2009 as U.S. and foreign spending is forecasted to decline.
“Not Buying American” and“Nov Trade Gap Shrinks on Record Import Plunge”
(Click on the title to go to the website: abstract only; subscription may be required to view articles)
MARKETING ARTICLE SYNOPSIS
Source: “Nov Trade Gap: Doug Palmer, Reuters, January 13, 2009.
Relevant Chapter(s): Chapter 7 Marketing and(Marketing: The Core.
SPRING 2009 ISSUE 1
In-Class Discussion Question: SHOW THE ATTACHED “NOT BUYING AMERICAN” POWERPOINT SLIDE.
Question #1: Define the terms imports, exports, and trade deficit. What is there relationship to each other?
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Marketing provides instructors with a set of case analysis opportunities based on the end-of-chapter written cases and accompanying video cases. The videos provide special opportunities to enhance student learning and expose them to real-world marketing managers facing real-world marketing problems. Instructors can use the videos in a number of creative ways, both (1) in conjunction with the written textbook case and (2) independent of it, as discussed below.
Using the Videos in Teaching the Video Case
To our knowledge, Marketing, 1st Edition, was the innovator in using specially prepared videos tied to a specific marketing case. But, as discussed below, the videos are now being used in a number of creative ways beyond our “original video case model” described below.
• The Original Video Case Model. In Marketing, 1st Edition, this was the use of the video we envisioned as used in conjunction with the written video case:
– In one class period, the instructor asks students to read the case and be prepared to discuss the end-of-case questions. The instructor also may require answers in writing, assign presentations to specific teams, etc.
– In the following class period, the instructor does four things:
a. Leads a discussion of the end-of-the case questions with the students.
b. Shows the video, introduced by words like, “Let’s see how marketing managers faced with many of these same issues have tried to address them.”
c. Asks students to assess what they have seen and heard on the video and tell if they agree or disagree and why.
d. Gives a final “retrospective” or “epilogue” wrap up if this is provided in the case teaching note or they’ve found new up-to-date information.
With class time at a premium, few instructors will probably have time to use more than half of all the video cases using this “model.”
• Other Ways to use the Video with the Video Case. Discussions with instructors and our own experiences have shown these additional ways in teaching the video case:
– Show the complete video before the class discussion. – Show only a segment of the video after the class discussion. – Show only a segment of the video before the class discussion. – Put the video on the student website and have students look at the video before coming to class.
Using the Videos Separate from the Video Cases
Either the complete video or segments of the videos can be used to enhance:
• Lectures and discussions, as instructors cover various topics through the book. For example, in discussing Chapter 9 segmentation, some or all of the Rollerblade video case might be shown.
• In-class activities (ICAs), as instructors lead these in their classrooms. For example, the Chapter 7 video case on CNS Breathe Right strips with the Breathe Right strips in-class activity (ICA 11-2).The videos provide opportunities for instructors to introduce real marketing issues into their classrooms.
Editor’s Note: Presented below is an article from one of our authors of Marketing, who discusses alternative uses of one of the supplements of Marketing: Video Cases.
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SPOTLIGHT ON MARKETING
Author: Roger Kerin,Southern Methodist University.
Alternatives for Using the Videos Tied to the End-of-Chapter Video Cases
SPRING 2009 ISSUE 1
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SPOTLIGHT ON MARKETING
SPRING 2009 ISSUE 1
In the Fall 2008, Issue #3 of the Instructor Newsletter, I mentioned that due to the success I experienced with visually-enhanced test questions, we planned to include them in our comprehensive final that is common to all sections of our Survey of Marketing course. The implementation of that plan, however, became a study in humility. Let me provide some background..
All of us that teach Survey of Marketing use the same set of “‘Marketing Models”: twelve figures that represent critical marketing concepts. These models are presented to the students throughout the semester in a variety of ways, such as a set of PowerPoint figures or as figures custom-inserted in the back of our Marketing, 9e. These figures are covered during the chapter in which that concept is introduced to provide consistency across all sections and to allow us to use a common final successfully.
The final had included figures with spaces to fill-in missing labels. This was in addition to 80 multiple-choice questions. There were two downsides to this: not only was this more time consuming to score, but it also made it more difficult to compare the results. Each semester, we measure the cumulative scores across all sections to monitor how well our learning objectives are achieved.
I had such good results during the semester with the visually-enhanced questions, that the committee decided to replace the 40 fill-ins on the final with 20 visually-enhanced multiple-choice questions. Since we had been using EZ Test to create the 80 multiple-choice questions already, it was very simple to select an additional 20 visually-enhanced test questions that specifically focused on the selected Marketing Model figures.
So, how did the students do? For 15 of the 20 questions, they scored an average of 4 percent better than the average of the 80 multiple-choice questions. On the other 5 questions that were based on one figure, students did much worse. Upon examination, we realized that we had selected a figure that had been moved to the last chapter in the new version of the text. As a result, we had not spent the same class time and focus on it as those linked to the other 15 questions. Moral: If instructors don’t teach it, students probably won’t learn it, no matter how visually-enhanced the topic is. Stay tuned for the end of this story: see what both instructors and students have successfully learned!
Editor’s Note: Presented below is an article from one of our adopters who discusses her experience with one of the supplements of Marketing: The visually-enhanced Test Bank.
Author: Kathryn Schifferle, Marketing Professor, California State University—Chico.
My Experience with Visually-Enhanced Test Questions—Part 2
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CONTACT US
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If you wish to contact us regarding any aspect of this newsletter, please send us an e-mail or call us using the contact information below:
• Marketing Co-Authors:
– Dr. Roger Kerin (Southern Methodist University)Telephone: (214) 768-3162E-mail: [email protected]
– Dr. Steven Hartley (University of Denver)Telephone: (303) 871-2144E-mail: [email protected]
– Dr. William Rudelius (University of Minnesota)Telephone: (612) 236-0723E-mail: [email protected]
• Marketing Instructor Newsletter Editor:
–Michael VesseyTelephone: (952) 681-2303E-mail: [email protected]
• McGraw-Hill Higher Education Personnel:
–Katie Mergen: Marketing ManagerTelephone: (630) 789-5035E-mail: [email protected]
–Technical SupportTelephone: (800) 331-5094Website: www.mhhe.com/support
SPRING 2009 ISSUE 1
CREDITSWe thank Kathryn Schifferle, Marketing Professor, California State University—Chico and Marina Avdyukhina for contributing to this issue of the Instructor Newsletter.