Week of February 18, 2009
Dawn is not the only brand that is having difficulty marketing a new line extension. Is the new hand renewal soap for dishes or your hands? Will it take off? Others dealing with similar issues is Trident gum attempting to market products that strengthen your teeth. One way to get new ideas out is called viral marketing. This occurs when a company produces a unique video that catches the attention of viewers so much so that they are compelled to send it to everyone they know. It has similar effects as a chain letter. In Trident's case, they tried to show the strength of a man, Jerry's, teeth and made the video look like it was for a TV show called That's not fake. The show investigated the situation and reported that Jerry used the new Trident Xtra Care chewing gum. However, it appears that the marketing attempt is not going anywhere...so much for viral marketing.
http://online.wsj.com/services/article/SB123439670534574971-search.html?KEYWORDS=Trident&COLLECTION=wsjie/6month
The American auto industry is falling to pieces. GM and Chrysler claim that $17.4 billion was not enough to help them and all thier suppliers. Their justification for what they did get was that bankruptcy would end up costing tax payers a lot more money. Both companies submitted recovery plans that showed how they would trim expenses and boost sales. The biggest effort, cutting make on brand names. Reporters found that suppliers do not solely count on the Detroit 3 though, and ship many products to Asian manufacturers. The ultimate decision will rest with President Obama and he is not expecting anything cheap.
http://www.economist.com/business/displaystory.cfm?story_id=13145718
Saturday, February 21, 2009
Week 4 - Mixing it up
Week of February 12, 2009
Even the rich folks are cutting back, as shown when sales of expensive designer clothes slowed last year. Vera Wang was advised to go commercial. She started designing bridal gowns 19 years ago, and recently expanded into clothing lines. She's cutting costs by not having a huge fashion runway show, and cutting back on the creative side and opting for a more practical style. Many other high fashion designers have followed suit. Focus is not selling people items they need, not just style.
http://online.wsj.com/services/article/SB123517153386836823-search.html?KEYWORDS=product+mis&COLLECTION=wsjie/6month
Pricing is the trickiest part of marketing. You want to make money off your products, but you also want customers to buy them and this requires boosting perceived value. In these hard economic times, P&G is trying to bolster their bottom line by raising prices with some retailers. Some retailers refused and suspended shipments of products in late December. P&G doesn't seem to care, they are not after mindless share and volume growth. P&G thinks increased prices will work, but others are skeptical.
http://online.wsj.com/services/article/SB123508966388628145-search.html?KEYWORDS=product+mix&COLLECTION=wsjie/6monthWednesday, February 11, 2009
Week 3 - One in every color, as long as its black
Week of February 5th, 2009
Mass Customization
Companies such as Dell and Lands End have enacted a differentiated value proposition using "mass customization." This essentially is an ability to efficientl produce customized products. It is only possible through such innovative measures as just-in-time inventory and complicated websites. Many consumers have come to appreciate similar efforts from other companies to allow for personalization. Next on the list of demands, according to Network World, is the operating systems for computer networks. Every company requires different functionality for their systems. Many have invested billions into IT personnel and the latest tech gadgets to achieve this level of customized functionality. Many Linux users are leaning toward a JeOS or just enough operating system. It's is limited to the ability to run a few key applications. Because it's Linux, you still get the tech support and hardware that you need.
http://www.networkworld.com/news/tech/2009/012109-tech-update.html?page=1
Market Segmentation
Car manufacturers are attempting to gain marketshare in the BRIC emerging economies. These segments consist of Brazil, Russia, India and China. In the Economist, China's methods on breaking into the industry are discussed. Customs taxes were too high to make the foriegn automobiles appealing to locals. China only allowed foreign car manufacturers into their country through joint venutres with Chinese manufacturers. The first was Volkswagen, who created the Santana (much like the Passat, but fully Chinese made). Then came GM pushing brands such as Buick, which sold twice as well in China than it did in America. When the auto market is divided by geographic segments, the American segment seems to be over saturated with choices. It is very appealing for manufacturers to get into the developing countries to establish their brands early. Automakers in Brazil have free reign, no such joint venture requirements exist there. The Russian market is held back by high oil prices. And India is dominated by the early bird Suzuki, who formed a joint venture with Maruti in the 1980's. The market for automobiles has grown considerably since Ford created the assembly line in Michigan. Now cars are designed, not only with optional colors, but with optional assemblers as well.
http://www.economist.com/specialreports/displaystory.cfm?story_id=12544905
Market Positioning
Mass Customization
Companies such as Dell and Lands End have enacted a differentiated value proposition using "mass customization." This essentially is an ability to efficientl produce customized products. It is only possible through such innovative measures as just-in-time inventory and complicated websites. Many consumers have come to appreciate similar efforts from other companies to allow for personalization. Next on the list of demands, according to Network World, is the operating systems for computer networks. Every company requires different functionality for their systems. Many have invested billions into IT personnel and the latest tech gadgets to achieve this level of customized functionality. Many Linux users are leaning toward a JeOS or just enough operating system. It's is limited to the ability to run a few key applications. Because it's Linux, you still get the tech support and hardware that you need.
http://www.networkworld.com/news/tech/2009/012109-tech-update.html?page=1
Market Segmentation
Car manufacturers are attempting to gain marketshare in the BRIC emerging economies. These segments consist of Brazil, Russia, India and China. In the Economist, China's methods on breaking into the industry are discussed. Customs taxes were too high to make the foriegn automobiles appealing to locals. China only allowed foreign car manufacturers into their country through joint venutres with Chinese manufacturers. The first was Volkswagen, who created the Santana (much like the Passat, but fully Chinese made). Then came GM pushing brands such as Buick, which sold twice as well in China than it did in America. When the auto market is divided by geographic segments, the American segment seems to be over saturated with choices. It is very appealing for manufacturers to get into the developing countries to establish their brands early. Automakers in Brazil have free reign, no such joint venture requirements exist there. The Russian market is held back by high oil prices. And India is dominated by the early bird Suzuki, who formed a joint venture with Maruti in the 1980's. The market for automobiles has grown considerably since Ford created the assembly line in Michigan. Now cars are designed, not only with optional colors, but with optional assemblers as well.
http://www.economist.com/specialreports/displaystory.cfm?story_id=12544905
Market Positioning
If you can't beat 'em, join 'em. This is Pfizer's thinking in attempting to buy out competitor Wyeth. Wyeth's most profitable drug is Lipitor, but the patent will run out soon. With no new medicinal innovations in its cauffers, they will be very vulnerable in the current economic conditions. Pfizer is the number one drug company in the world. Between purchasing their number two competitor and the aging baby boomer generation, their position as such will certainly continue indefinitely. However, as more drug makers consolidate, what will that mean for the cost of medicine?
http://www.economist.com/business/displaystory.cfm?story_id=13007939
Wednesday, February 4, 2009
Week 2 - The Widget Factory
Week of January 29, 2009
I am not a tool.
In class, we had a lengthy discussion on whether students are their teacher's customers. The conclusion we arrived at is that students are a resource/product of the university and the professor is the tool/machinery. In an article from the National Association of Scholars, the role of students in the educational system is discussed. Peter Wood says that students are just students. The relationship of students to teachers is one that cannot and should not be morphed to fit a metaphorical mold. He supports his argument by referencing Socrates "The Clouds." Generally, he feels that the attitude customers take is that they are in control of the situation. This is a bad situation for the teacher. However, it is important that students exercise judgment over their professors.
In our discussion, students were compared to pieces of steel to be molded. We are customers of the university, but not the teacher. The argument supporting this idea is that only a small portion of tuition dollars goes to the professors. However, you would think that any monetary amount would qualify it as a market exchange. So, if students are resources...the teacher must be a tool. Or rather the method the university takes to add value to the resource. Who are the customers then? Society. Especially for state institutions that get a lot of funding from taxes.
http://www.nas.org/polArticles.cfm?Doc_Id=320
I am not a tool.
In class, we had a lengthy discussion on whether students are their teacher's customers. The conclusion we arrived at is that students are a resource/product of the university and the professor is the tool/machinery. In an article from the National Association of Scholars, the role of students in the educational system is discussed. Peter Wood says that students are just students. The relationship of students to teachers is one that cannot and should not be morphed to fit a metaphorical mold. He supports his argument by referencing Socrates "The Clouds." Generally, he feels that the attitude customers take is that they are in control of the situation. This is a bad situation for the teacher. However, it is important that students exercise judgment over their professors.
In our discussion, students were compared to pieces of steel to be molded. We are customers of the university, but not the teacher. The argument supporting this idea is that only a small portion of tuition dollars goes to the professors. However, you would think that any monetary amount would qualify it as a market exchange. So, if students are resources...the teacher must be a tool. Or rather the method the university takes to add value to the resource. Who are the customers then? Society. Especially for state institutions that get a lot of funding from taxes.
http://www.nas.org/polArticles.cfm?Doc_Id=320
Target Markets
A target market is a focused effort of a company to marekt their product to specific individuals, ignoring all others. As the economic situation worsens, many marketers are finding that creativity is even affected by budget constraints. So, marketers have to put on their accounting hats and do some cost-benefit analysis of different marketing channels. The Wall Street Journal article titled "More Web Ads Improve Their Aim" addresses the concept that more and more people are absorbing advertisments through the internet. Yahoo is one company that provides added value for this marketing method. The performance-based media they use also provides a means of tracking the effectiveness of the internet advertisements, giving them a lot of value for the shrinking advertising dollar.
http://online.wsj.com/article/SB123379182761749823.html
Value Proposition
Companies with a differentiation marketing strategy seek loyal customers that are willing to pay a premium for a product. Communicating value to potential customers, in order to convince them your product is worth it, can be costly. In fact, new small-time entrants to some markets are resorting to give-a-ways. Experts say doing this could send the message that your product is cheap, rather than showing its immeasurable value. Others, like Vaillant, have gone to free installation with no up front costs to gleam more customers. None of these innovative methods have proved to work yet.
http://online.wsj.com/article/SB123378641759849447.html
Week 1 - What is Money?
Week of January 22, 2009
What is money?
Briefly mentioned in class discussion was a five part video entitled “Money as Debt” available on YouTube.com. The origins of money were originally based on trade. Something of value was exchanged for another item of value. This evolved into precious metals molded into standard coins. Eventually, it became burdensome to lug around many coins, and people would store their gold coins with the goldsmith in return for a slip of paper called a claim ticket. At some point in time, the goldsmith started to loan out the use of the coins to other people. Then he discovered that he can loan out more money than he actually has on hand, provided everyone does not come claim their money at once. Eventually interest became an additional way for the goldsmith to gain funds, and he accumulated wealth. This system of loaning more money than actually exists is called a fractional reserve system. Today, governments around the world have adopted this system and allow banks to create money according to a standardized ratio. The paradox of this system is that you constantly have to feed debt into the system to keep the money supply available. The debt is based on things of value like houses, cars, business production. Ultimately, banks control all the resources and the system promotes overuse of resources. In the fifth segment, the creator suggests some ways to overcome this.
This concept has never crossed my mind before. I always thought banks were limited to loaning only the amount of their deposits. The realization of this monetary system makes me fear the future. It is only a matter of time before something of this nature collapses. I only hope that Barrack Obama has seen this…hahaha.
http://www.youtube.com/watch?v=vVkFb26u9g8
Total Quality Management and Edward Deming
Edward Deming was hired by Japan after World War 2 to rebuild their industrial system. He came up with many valuable quality management theories, starting a wave of quality obsession. This fad has since declined, after businesses realized that 100% quality is unattainable at reasonable costs. The result was a mutation into Six Sigma efforts. The government requires a certain level of quality in manufactured goods, so does the consumer. So quality is a very important aspect of operations management. An article from PR Newswire discusses the Six Sigma approach to quality management. http://sev.prnewswire.com/advertising/20090128/DA6369228012009-1.html
Also, many companies are responding more responsibly to quality lapses. See this article from the Wall Street Journal about Toyota: http://online.wsj.com/article/SB123318164275026113.html
American Auto Industry
We discussed the failing US Auto Industry in class. Many American cars are not even made in America any more. In fact, America even gave up on the Industry by not providing a bailout. Now, the UK is offering to step in. Not only will the components be foreign, but the financing as well. This article in the Wall Street Journal discusses their offer. http://online.wsj.com/article/SB123307576867520133.html
What is money?
Briefly mentioned in class discussion was a five part video entitled “Money as Debt” available on YouTube.com. The origins of money were originally based on trade. Something of value was exchanged for another item of value. This evolved into precious metals molded into standard coins. Eventually, it became burdensome to lug around many coins, and people would store their gold coins with the goldsmith in return for a slip of paper called a claim ticket. At some point in time, the goldsmith started to loan out the use of the coins to other people. Then he discovered that he can loan out more money than he actually has on hand, provided everyone does not come claim their money at once. Eventually interest became an additional way for the goldsmith to gain funds, and he accumulated wealth. This system of loaning more money than actually exists is called a fractional reserve system. Today, governments around the world have adopted this system and allow banks to create money according to a standardized ratio. The paradox of this system is that you constantly have to feed debt into the system to keep the money supply available. The debt is based on things of value like houses, cars, business production. Ultimately, banks control all the resources and the system promotes overuse of resources. In the fifth segment, the creator suggests some ways to overcome this.
This concept has never crossed my mind before. I always thought banks were limited to loaning only the amount of their deposits. The realization of this monetary system makes me fear the future. It is only a matter of time before something of this nature collapses. I only hope that Barrack Obama has seen this…hahaha.
http://www.youtube.com/watch?v=vVkFb26u9g8
Total Quality Management and Edward Deming
Edward Deming was hired by Japan after World War 2 to rebuild their industrial system. He came up with many valuable quality management theories, starting a wave of quality obsession. This fad has since declined, after businesses realized that 100% quality is unattainable at reasonable costs. The result was a mutation into Six Sigma efforts. The government requires a certain level of quality in manufactured goods, so does the consumer. So quality is a very important aspect of operations management. An article from PR Newswire discusses the Six Sigma approach to quality management. http://sev.prnewswire.com/advertising/20090128/DA6369228012009-1.html
Also, many companies are responding more responsibly to quality lapses. See this article from the Wall Street Journal about Toyota: http://online.wsj.com/article/SB123318164275026113.html
American Auto Industry
We discussed the failing US Auto Industry in class. Many American cars are not even made in America any more. In fact, America even gave up on the Industry by not providing a bailout. Now, the UK is offering to step in. Not only will the components be foreign, but the financing as well. This article in the Wall Street Journal discusses their offer. http://online.wsj.com/article/SB123307576867520133.html
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