Charrysah Tabaosares - Case Study

LICEO DE CAGAYAN UNIVERSITY
Rodolfo N. Pelaez Boulevard, Kauswagan

Cagayan de Oro City
ASSIGNMENT IN
COMPUTER 2
Submitted By:
Charrysah T. Tabaosares
BSBA-MM2
Submitted To:
Ana Maria S. Cortes, MM
Date Submitted:
November 14, 2018
TABLE OF CONTENTS
CASE TITLE Page

CASE 1.1: Oreos Turn 100 Year Young 2
VIDEO CASE 1.2: Geoffrey B. Small Is Big on Quality Customers, Community 4
CASE 2.1: Panera’s Pay-What-You-Can-Cafés 8
VIDEO CASE 2.2: Zapos Employees do more than sell shoes 10
CASE 3.1: Pepsi-Cola gets a boost from healthier beverages 14
VIDEO CASE 3.2: Ski Butternut offers thrills-not spills 16
CASE 4.1: Samsung and the gamification of marketing research 22
VIDEO CASE 4.2: Gaga Sherbetter forecasts hot sales, cold flavors 26
CASE 5.1: Cruise companies learn how to cater to distinct market segments 31
VIDEO CASE 5.2: Nederlander targets theatergoers everywhere 34
CASE 6.1: United and Continental merge their services 39
VIDEO CASE 6.2: Boltbus gives bus travel a jump start 42
CASE 7.1: Scorebig: Name your price for live events 46
VIDEO CASE 7.2: Ski Butternut: Great prices for winter fun 48
CASE 8.1: Who needs the U.S. penny? 53
VIDEO CASE 8.2: Boltbus: Ride for the right place 55
CASE 9.1: Natural disasters disrupt the global supply chain 59
VIDEO CASE 9.2: Geoffrey B. Small keeps marketing channels tight 61
CASE 10.1: Costco play catch-up in online sales 66
VIDEO CASE 10.2: Gaga Sherbetter: Coming to a market near you 68
CASE 11.1: THE RICHARDS GROUP: A UNIQUE ADVERTISING AGENCY 71
VIDEO CASE 11.2: Pepe’s pizzeria delivers every day 74
CASE 12.1: SELLING A TENNIS STAR’S IMAGE 79

VIDEO CASE 12.2: Hubways rollsout partners and promotions 81
Page
CHAPTER 1
Marketing: The Art

and Science of
Satisfying Customers
CASE 1.1 Page
OREOS TURN 100 YEARS YOUNG
Oreos tastes good. Marketing helped sail past competitors to celebrate 100 years existence
to market.
Wise strategizing led Oreo’s producer Kraft foods to tailor the crème and wafers to
different consumer tastes in china, japan, Indonesia and Argentina and later to trans-fat-free
formula. Burger King, Carl’s Jr., and cheesecake factory partnership to led innovative marketing.
Oreos gone digital in terms of marketing too. Oreos having 23 million Facebook fans. But yearlong
global birthday party is the most use marketing plan.
Fans post photos, stories and videos to Facebook gallery and qualify to be “birthday of the
day” celebrant on their special day. Fireworks display, party games and cake in area held by Oreos.
200 countries watch these events real time on Facebook. Television ads showcase adults and kids
sharing Oreos and milk, prints ads will commemorate iconic moments of the last 100 years.
QUESTIONS FOR CRITICAL THINKING Page
3
1. How do Oreo’s birthday celebration activities meet definition of marketing?
ANSWER:
Oreos 100thbirthday celebration meets the marketing definition by promoting Oreo’s all
around the world in many different ways. The company used kid friendly activities and
made it where the adults would have the experience of being a kid with their kids, thus
bringing families together. They communicated with the fans about what their likings and
preferences were so that the company would have an idea of how they could have done
better. They produced many different flavors that satisfied everyone’s needs. The company
merged with other companies such as Burger King, Carl Jr., and the Cheesecake Factory
for a partnership to promote the company and other groups of people. These promotions
have helped the Kraft Company and also the companies that use Oreos in their foods.
2. What accounts for Oreo’s popularity on Facebook, and is Mondelez using this factor to
the best marketing advantage?
ANSWER:
With Oreo being on Facebook, it gives people the ability to like, comment, share, and
follow them. It gives the opportunity to keep up with any updates and changes within the
company. They can comment on a post that the company posted to their “wall” or “news
feed” about new flavors, a giveaway, and the ability to tag friends to pass the page to more
people giving them a bigger audience. I do believe that Mondelez is using this factor to the
best marketing advantage. Facebook is a well-known social media site and it makes it easier
for a company to promote and communicate with the people all over the world.
VIDEO CASE 1.2 Page
Geoffrey B. Small Is Big on Quality Customers,

Community
Geoffrey B. Small is 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 or 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 in 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 runaway shows, at a select
group of exclusive retail shops, or communicate with him directly. When they take ownership of
a suit or coat, they have 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 view his relationships with the customers as critical to his success, referring as the
“best and only financial backers” a designer should have. Since his clothes are made to last deaces-
25 to 30 years-he looks toward developing customer relationships what 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 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 Page
customers who want the novelty of something edgy and different to wear. Doing so could lead him
into the quicksand and marketing myopia. But that’s not Small’s style. He looks for new ways to 5
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 the 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 business. “The biggest challenge now is not to compromise,” he admits; “to focus on one
piece at a time and make it the absolute best it can be.”
6
1. Why is the link between relationship marketing and social responsibility so important to
Small’s business success?
ANSWER:
The link between relationship marketing and social responsibility is important to Geoffrey
Small’s business because his customer base is built partially on his reputation for activism.
“We use fashion as a platform to do more than just sell clothes,” says Small. His customers
know this, and choose to spend their money on his clothes because they support his activism.
Through his alliance with certain causes, Small also establishes and strengthens his relationship
with customers—who then become loyal purchasers of his clothes—and vice versa.
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?
ANSWER:
Large corporations can learn from Geoffrey B. Small’s belief that businesses should
produce the highest-quality goods and services possible—instead of rolling out as many
pieces as cheaply as possible. They can decide to trust the intelligence of their customers
and convey honest messages to them about cost, processes, and quality. They can also
look for ways to use their organizational power in socially responsible ways, whether to
promote environmental sustainability or any other cause.
Page
CHAPTER 2
The Marketing
Environment, Ethics
and Social
Responsibility
CASE 2.1 Page
PANERA’S PAY-WHAT-YOU-CAN-CAFÉS
You may have heard there’s no such thing as a free lunch, but at three Panera Bread Co.
restaurants in Michigan, Missouri and Oregon there is.
After seeing how demoralizing it can be for a person waiting for a handout, Panera’s
president Ron Shaich converted three stores into separate nonprofit operation. The Menu is the
same as elsewhere in the popular salad and sandwich chain, but a donation box and the honor
system replace the cash register in what Shaich calls “nonprofit community cafés of share
responsibility.” These nonprofit Paneras do not charge for meals. Instead, customers get receipts
with their orders that explain what the meal would cost in a conventional Panera store.
About 60 percent of customers leave the suggested amount; 20 percent leave more; and the
remainder pay less or nothing. Customers are requested to come no more than once a day to the
pay-what-you-can cafés. Those who come in a few times a week to have meal are asked to
volunteer in the store, in keeping with posting signs reading, “We are not about a handout. We are
about a hand up for those who really need it.”
The pay-what-you-can cafés are breaking even, and Panera recently announced that it will
open at least two more store.
9
1. One critic called Panera’s pay-what-you-can model “a marketing ploy.” Do you agree?
ANSWER:
The pay-what-you-can model was not a marketing ploy. It was not a clever tactic at all.
You were not force to pay the foods that you have taken in fact it’s just depends on how
you pay it. In line with my explanation, I will elaborate the meaning of a Marketing Ploy
base on my research.
Marketing Ploy - is essentially a clever tactic used by marketers to raise awareness and
drive more purchases of a specific product or service for a company. The word "ploy"
implies that the marketing tactic is an attempt to trick or outwit a consumer, so some people
are wary of marketing ploys.
2. Panera donates millions in cash and food each year but feels the cafés allow a direct
connection to those in need. Why would that matter?
ANSWER:
Chairman & Co-CEO Ronald Shaich envisioned a way to stay connected to the community,
in-stead of just writing a big cash check to charity. The disparity of food became a topical
issue, due to the lasting price inflation since 2006 and got accentuated by the financial
turmoil of 2008. The US was confronted to the alarming statistic of one American out of
six being food insecure. Panera knew that they had an important role to play to not only
promote and support the cause against hunger in America but to take a step forward to
drive the change. Mr. Shaich recalls the story of one of the people that used to take his
family to eat at Panera, but once he lost his job found himself struggling to make ends
meet. He points out that this is also an opportunity to help people get back on their feet
during the harsh times of someone's life. The initiative offers the regular customers a
chance to support a cause that is important to the American public. It empowers the
customers to share their values, and be a part of an experience that satisfies one’s hunger
and the other’s self-esteem. In return, Panera establish an emotional bond with their
customers that goes beyond serving and enjoying good food. On one hand, Panera gains
from raising awareness about hunger in America, turning the customers to advocates of the
cause. On the other hand, customer satisfaction increases by making their purchase more
meaningful to them. In result, it creates a virtuous cycle, where each party influence the
other.
VIDEO CASE 2.2 Page
10
ZAPOS EMPLOYEES DO MORE THAN SELL

SHOES
It’s hard to imagine not being able to buy a pair of shoes online. It’s even harder to imagine not
owning a pair of shoes at all. The founders and employees at Zappos are familiar with both
situations. Co-founder and CEO Tony Hsieh got Zappos of the ground in 1999 when he and other
investors realized that nowhere on the Internet could consumers find a real selection of shoes. You
know how successful Zappos has become since then, despite subsequent competition-but you
might not be aware of the company’s effort to give back to its community, including giving shoes
away to the children in need.
Zappos engages in social responsibility initiatives because “we feel that it’s the right thing
to do,” explains Shannon Roy, the company’s Happiness Hippie (her job title). The company
develops relationship with charitable organizations that are similar to those it builds with
customers and vendors, looking for ways that employees can interact directly with the community
through these organizations. Some of the broad areas in which Zappos offers assistance and
poverty and education, cancer research and care, and pets and nature. Specific efforts include
partnerships with charitable organizations, such as Goodie Two Shoes, a foundation that provides
new shoes and stocks to children in crisis or need. Through its Goodie Two Shoes Giveaway each
year, the organization teams up with Zappos and other firms to donate and distribute thousands of
footwear products to children who need them. “It’s giving to the community,” says Shannon Roy,
who adds that Zappos employees feel driven to participate. “It’s part of our being, part of our
culture, it’s very inherent in what Zappos is all about.” Working at Zappos is “grander than the 9
to 5 job. It’s doing something for the greater good.”
It would be easy for an online retailer like Zappos to set up shop anywhere and ignore its
surroundings. But that’s not Zappos. Instead, the firm made a deal to renovate the vacant Las
Vegas City Hall for $40 million, bringing about 2,000 employees to downtown Las Vegas-an area
that could use an economic and social boost. CEO Tony Hsieh admits that originally he thought
about building a “dream corporate campus,” much like those Apple, Google, and Nike. But when
the Las Vegas opportunity came along, Hsieh and other Zappos managers thought: “Let’s not be
like the other companies. Let’s not be insular and only care about our employees. We want to help
contribute and help build a community and really integrate into a company around our campus.”
City officials predicted that the economic impact to the downtown area could top $336 million,
bolstering real estate, health care, restaurants and hotels, and other business. “I think is part of
what our brand is about,” observes Matt Burchard, senior director of marketing, photo, and video.
“We’ve added a core tenet of what we stand for, and that’s community.”
Burchard notes that Zappos is committed to investing in things beyond its core business, Page
like the infrastructure of downtown Las Vegas. Recently, The Downtown Project (founded by
Hsieh and others) partnered with Venture for America to attract new college graduates for two- 11
years stints to help startup business get off the ground of Las Vegas properties, such as an old
Motel 6, a 7-eleven building, and numerous condominiums for demolition or renovation. The idea
is to revitalize the entire area-both economically and socially.
Zappos fulfills the four levels of the social responsibility pyramid: economic, legal, ethical,
and philanthropic. The company is stable and profitable, giving it a solid platform from which to
launch social responsibility initiatives. It operates with a strong legal and ethical base. Recently,
when Zappos became the target of a cyberattack that gained access to its internal network (and the
accounts of 24 million users), the firm acted fast, putting nearly every employee to work assisting
in its response to the breach. Even though the breach did not reach complete credit card numbers
or other critical data, the company notified its customers and reset all their passwords. Zappos also
warned customers to be on lookout for phishing emails and other scams. Finally, Zappos is
generous in its philanthropic efforts, donating money, shoes, and employees time to it various
causes. “We don’t overanalyze it,” says Rob Siefker, director of the customer loyalty team. “We
just know who we are and who we want to be. We act on that.”
12
1. Describe how the economic environment may influence Zappos’ Marketing efforts.
ANSWER:
The economic environment influence Zappos’ marketing in many ways. It could influence
their strategy in a positive or in a negative way. One of the most important factors that could
be influence by the economic environment is prices. If the economy is not doing well then that
would change Zappos’ marketing strategy; they would then start a marketing campaign
advertising lower prices and discounts. On the other hand if the economy is doing well then
that would also change their marketing strategy; they would then start a marketing campaign
advertising their latest design and their high in designs.
2. Explain how Zappos’ move into downtown Las Vegas fulfills the four levels of the social
responsibility pyramid.
ANSWER:
Zappos’ fulfills the four levels of the social responsibility pyramid; economic, legal,
ethical, and philanthropic environment. Economic environment influenced Zappos’ to
create a marketing strategy with the community in mind. It helps them to identify who they
are and who they want to be. They also take into consideration the economy around them
to not only price their products but to also help the community in any way they can. They
fulfilled the economic environment part by creating millions of jobs throughout the
country.
Philanthropic: they fulfilled this level of the social responsibility by investing in Las Vegas
City Hall renovation. Another way that they fulfilled this part of social responsibility is by
donating money, shoes, and employee’s time to various causes. This shows that the
company cares about the community.
Ethic: they fulfilled the ethics part by informing customers of potential breach in their
company and by sending out warnings about potential scams. They also make sure that
they are always doing right by their customers.
Legal: They fulfilled this aspect of social responsibility by keeping up with compliance
and customer services issues. They follow the guide lines of legal business operations and
encourage employees to report any wrong doing. Not only that but they also have open
policy when it comes to customers; they allow the customers to return items if they’re not
happy with it or if there are any issues with the product
Page
13
CHAPTER 3
Consumer Behavior
CASE 3.1 Page
14
PEPSI-COLA GETS A BOOST FROM HEALTHIER

BEVERAGES
Pepsi recently dropped to third in the U.S. carbonated beverage market, behind Coke and Diet
Coke. With declining sales and a flat shared price, PepsiCo wants to engineer a change in its
corporate fortunes in the North American beverage market.
In addition to trimming costs, the firm is adding $500 to $600 million to its beverage
advertising and marketing budget, it has hired new Pepsi spokespeople, including actress Eva
Longoria and rapper Nicki Minaj, and it introduced a mid-calorie Pepsi called Pepsi Next. But for
several years U.S. consumers have been turning away from carbonated soft drinks and choosing
healthier beverages including juices, teas, flavored water, and sport drinks. So PepsiCo wants to
leverage that behavioral change by bumping up its Gatorade brand.
Gatorade was associated for years with male-dominated team sports at the youth level.
Now PepsiCo will link it to the wider range of consumers, including women, and a broader
spectrum of other athletic activities, including skateboarding, surfing, tennis, and dance, each
represented by a professional athlete. The company recently introduced the G Series, a product
extension that offers Gatorades for three phases of athletic activity, Prime, Perform, and Recover.
Relying on marketing research revealing that high school and college athletes spend more on
clothing and equipment than they do on nutrition products, PepsiCo is also unveiling a new
Gatorade marketing campaign featuring prominent athletes like Usain Bolt and Abby Wambach
that stresses the importance of what you put in your body, as opposed to what you put on it.
Some Gatorade ads will carry a hashtag, to help PepsiCo monitor social media buzz in its
new Gatorade Mission Control centers in the United States, the United Kingdom, and Latin
America. The company will also send out a special sales and marketing team called G-Force,
which includes many former college athletes, to foster marketing relationships with the local
retailers. “It’s an aggressive, grass-roots effort,” says Gatorade’s president.
15
1. How can PepsiCo capitalize on what it has learned about the buying behavior of young
athletes?
ANSWER:
Seeing the fact that over the years PepsiCo has been losing on market share against its
archival, it stressed on a deeper research of the target market. This revealed that the market
has long shifted away from having carbonated drinks to healthier options like juices and
sports drink.
The research has also revealed the buying behaviors and patterns of the young sportsmen.
It was found that they spend more on the sports dresses and accessories rather than on the
sports drink.
2. Gatorade’s president says, “We probably know more about who on Twitter is the most
influential influencer of end user athletes than Twitter does, because we’ve made it out
business to know that.” What can social media tell PepsiCo about the market for
Gatorade?
ANSWER:
Externally, social media is useful for steering customer behavior and looking for trends.
Gatorade, arguably the world’s largest sports-linked consumer brand, follows its every
visible reference Facebook, Twitter, and Internet chat rooms. It has hired experts in certain
sports to speak on its behalf in places like this, trying to steer the Gatorade image away
from hangover cure to essential nutrition (which people will keep drinking if the booze
wears off or their money runs short.) Now only 20% of the online conversations about
Gatorade are about things like flavor and hangovers, down from 50%.
The Gatorade “War Room,” though much ballyhooed by Bough and others, may matter
less long term. On a recent visit, two outside employees casually noted a spike in activity
around a Gatorade joke that had attracted a total of 148 followers. Tweets about the
competition they followed were equally ephemeral. Twitter may be useful for
information velocity – it is useful as a way of telling whether online Gatorade
conversations are about hangovers or sports, but it’s not clear that it does much to effect
deep consumer change.
It’s worth the trouble to follow the active people in every form, Bough argues. “There
is a new category in the business, ‘Influencer Relationship Management,’” he says. “You
find your biggest advocate, people who are online talking about you, and you offer them
content – nutrition information, graphics – they can use on their blogs.”All the .jpegs, .pdfs,
videos, and documents the company provides are tagged. That way providers like Pepsico
can see who is looking at what these Influencers produce, and use that information in
marketing.
“The influencers get content, and we get audience information,” Bough says. “It’s
the next big wave.”
VIDEO CASE 3.2 Page
16
SKI BUTTERNUT OFFERS THRILLS-NOT SPILLS
“Ski Butternut is a true family mountain,” says Matt Sawyer, director of marketing for ski and
snowboarding resort nestled in the Berkshire Mountains of western Massachusetts. Smaller than
the peaks of Colorado or even the crags of the Green Mountains of Vermont and White Mountains
of New Hampshire, Butternut is what Sawyer refers to as “Soft Mountain”-one that beginners can
enjoy while they grow comfortable on skis or snowboards. In fact, through extensive surveying
and data collecting (as well as 50 years of experience), Ski Butternut has been able to identify
exactly who its customers are-and what they want when they came to a mountain like Butternut.
A number of factors influence consumer’s decision to try Butternut, ranging from

interpersonal to personal determinants. The mountain’s marketers, including Matt Sawyer and
advertising consultant Ed Brooks, use various methods to tease out these factors in an effort to
attract and keep customers. Cultural influences, such as the desire for quality recreation and leisure
time, is one factor that drives people to a mountain resort; but there are plenty of such mountains
scattered around New England and upstate New York. How does Ski Butternut compete? First, it
focuses on families and the core value of spending time together. Matt Sawyer observes that
Butternut’s typical customers are families with young children and “by capturing them early, we
get to have them for a long time.” Second, it reaches out to other subgroups, including senior
citizens and those in the teen-to-25 age range. Senior citizens may want to perpetuate the image of
themselves as physically active while enjoying membership in a group, while high school and
college students want the thrills of challenging terrain. Other target groups for Ski Butternut
include beginning skiers and those who race. Beginners aspire to be part of the skiing population,
while racers aspire to reach achievement goals. Third, via social media, Ski Butternut engages
customers and develops programs designed to keep them coming back for more.
Through more than 1,000 surveys across ski areas in the region as well as out west (and on
its own mountain), Ski Butternut has amassed a comprehensive database that helps pinpoint who
its customers are and what they want. “Ski Butternut believes in knowing as much as we can about
our guests,” explains Matt Sawyer. For example, Ski Butternut collects data during the equipment
rental process. When a guest rents a pair of skis or a snowboard, that person provides standard
information, such as name, address, and phone number. But the guest is also asked questions about
age and ability to ski or snowboard, as well as the names of other winter resorts he or she has
visited. The mountain complies both individual and family profiles. In fact, says Sawyer, the
average family skiing at Butternut has two children and one parent on the mountain (Ski Butternut
offers day care for the youngest ski bunnies). All of this information helps Matt Sawyer, Ed
Brooks, and other devise strategies designed to compete with other mountains in the region, such
as beginner ski programs and three distinct racing programs-each targeted for a different level of
interest in competition.
While the data show that first-time skiers generally keep their allegiance to the mountain Page
on which they learn for about seven visits, Sawyer notes that the toughest group to capture
is the teen-to-25 age range. A decade ago, this group (along with younger kids) was drifting off to 17
other mountains that had more challenging terrain. So Ski Butternut built a terrain park-with a half
pipe, jumps and other obstacles-to lure them back. Sawyer points out pride that Butternut is now
the pre-eminent terrain park in the region covering southern New England and New York.
Another Strategy for reaching this group is price discounts. Deciding where to spend
recreation dollars falls in the high involvement category for most of this group, with limited
problem solving. So Ski Butternut decided to offer them an incentive -$20 off ticket prices on
weekends and holidays (virtually unheard of the industry). They marketed the offer mostly through
social media-and the students “came in car loads,” recalls Sawyer. With this group in mind, the
company also recently updated its Web and mobile sites.
Looking for ways to draw consumers to the mountains for different reasons and at different
times of the year, Ski Butternut also hosts weddings and banquets during the spring, summer, and
fall. Thus, the ideal Butternut customers will get married on the mountain in the fall, honeymoon
on the slopes during the winter, and return with their children for years after.
18
1. Describe the social influences that might affect the decisions that consumers make about
where to spend their winter recreation time and dollars.
ANSWER:
Recreation is a fully-fledged industry now, and recreation on mountains with skis and
snowboards is ever increasing. A desire for quality recreation and very good healthy leisure
time, along with gaining the health bonus and the expertise over a highly fashionable
adventure sports push the consumer’s hardest to go for mountains.
The following social influences affect the decisions of customers
• Time for family: The time spent by the family members together influences the decision
on spending for recreation. Due to increase in complexity in life in these days, many
customers are taking vacations for spending time with their family.
• Influence of children: Marketers are targeting children these days as these days. Children
influence the decisions of a family to a large extent. When it comes to recreation, children
show more interest to spend.
2. The evaluation of alternatives is an important step in the buying decision for consumers
who are considering whether to visit Butternut or some other Mountain. What would be
some evaluation criteria in this decision, and why?
ANSWER:
The consumer decision-making process represents a general five-step process that
moves the consumer from recognition of a need to the evaluation of a purchase decision. It is
a guideline for studying how consumers make decisions.
Might end without a purchase decision.
Five steps of consumer-decision making process

1) Need Recognition
2) Information Search
3) Evaluation of alternatives
4) Purchase
5) Post-purchase behavior
1. Need Recognition
- 1st stage of the consumer decision making process
- Helps consumers recognize an imbalance between present status and preferred state.
- External and internal stimuli affect need recognition: Advertising and sales
promotion typically.
Page
2. Information Search 19
- 2nd stage of consumer decision making process
- can occur internally, externally, or both.
- Consumers search for information about the various alternatives available to satisfy
their need/want.
- The set expands and changes as we seek information from peers, reviewers,
retailers, the brand, and competitors.
3. Evoked Set
"Consideration Set"
-Group of brands, resulting from an information search, from which a buyer can choose
-Consumers will further evaluate the alternatives and make a choice.
4. Evaluation of alternatives and products

Ways to make a decision:
1) Analyze product attributes
- pick an important attribute, and exclude all products that don't have that attribute.
2) Use cutoff criteria
- minimum or maximum levels of an attribute that an alternative must have.
(Usually price)
3) Rank attributes by importance
- The goal of the marketing manager is to determine which attributes have the most
influence on a consumer's choice, and design a marketing mix that stresses those
attributes to the consumer.
- A single attribute, such as price, may not always explain a consumer's evaluation of
products. Attributes that the marketer may consider important are not always important to the
consumer.
- Brand names, such as Johnson & Johnson, have a significant impact over the choice
of products.
5. Purchase
1) Whether to buy
2) When to buy
3) What to buy (product type and brand)
4) Where to buy (type of retailer, specific retailer, online or in store)
5) How to pay Page
20
Marketing determines what are the most important factors in influencing a
consumer's choice?
Purchase paths
1) Funnels
-32% of purchases
-Open to anything
-Narrow down
-Purchase
2) Spindle
-31% of purchases
-Open to anything
-Add more options
-Change mind 3 or 4 times
-Make a purchase
3) Tunnels
-37% of purchases
-I know what I want
-I find it
-I buy it
-Best purchase path because they are brand loyal
6. Post-purchase behavior
Consumers reduce dissonance by:
-Seeking information that reinforces positive ideas about the purchase
-Avoiding information that contradicts the purchase decision
-Revoking the original decision by returning the product
Marketing can reduce dissonance by:
-Through effective communication with consumers, such as follow-up notes
(follow-up notes, advertising, and guarantees)
-Want consumers to enjoy, advocate, and bond.
Page
21
CHAPTER 4
Marketing Research
and Sales Forecasting
CASE 4.1 Page
22
SAMSUNG AND THE GAMIFICATION OF

MARKETING RESEARCH
There’s no stopping a good idea. As millions of avid fans enjoy online games like Farmville,
businesses are responding with similar games on corporate websites, but their purpose isn’t to
amass virtual goods or defeat alien armies. Rather, these games are designed to build customer
relationships, reward loyalty, and not incidentally, gather market research data.
Samsung Nation rewards users who post comments on the company’s website, answer
other user’s question, and link to Samsung.com from their Twitter accounts. Although a television
set was offered as the top prize, players reaching higher levels in Samsung Nation enjoy only
virtual rewards like colored badges and titles like “Connoisseur.” They also spend more time on
the company’s site, share more product information, and let Samsung track their online behavior.
The CEO of Badgeville, a start-up that designs corporate games like Samsung’s, says his client
companies “use gamification to measure and influence user behavior to meet their business goals.”
Increased site activity impresses potential customers; positive user comments can increase sales
with the lower marketing costs; and peer reviews are seen as highly trustworthy. For marketers,
who also get to swell their customer databases, gamification is win-win strategy.
Corporate games attract some unexpected demographic groups, like women in their late
30s who don’t fit the typical gamer profile. That boosts companies’ confidence that the data they’re
gathering accurately reflects their target segments. Sears, Groupon, the USA Network, Warner
Brothers, and Verizon Wireless have adopted gaming techniques to draw more users to their
websites and extend the time they spend there. Badgeville’s CEO says some companies track
hundreds of actions by millions of people.
Gamification is even growing within firms. The Big Four accounting firm Deloitte runs a
game app called “Who, What, Where” on its internal social network Yammer. Employees are
rewarded with status and virtual badges for sharing information with colleagues, nurturing client
relationships, and completing training. Says one 25-year-old employee who values the program’s
visibility with upper management, success in the game “could be the difference between being
known as an up-and-comer or not.”
23
1. Critics says marketing games manipulate customers into giving away an increasing
amount of personal information without the real thrill of game playing. Do you agree?
Why or why not?
ANSWER:
New media technology theory began around the same time as the introduction of the
computer. The trend of these theories is to examine the interplay of traditional and
new media and to discuss the cultural impact of new media. The interplay and
associated new developments is referred to as media convergence. Marshall
McLuhan, an early theorist, said new forms of media result from the integration of
multiple media [1]. Similarly, Fidler [2] said that traditional forms of media change
in response to emerging new media. New media improve upon or remedy prior
technologies [3]. Existing media are mixed and repurposed into new forms; media
converge. Moreover, media development today is the convergence of different media
industries and digital technology to produce multimedia [2].
Additionally, new media technology has changed the flow of communication from
a linear to a three dimensional form of information. The roots of this philosophy lie
in hypertext, which is a method of organizing and presenting information on a
computer in an order at least partially determined by electronic links (hyperlinks) the
user chooses to follow [3]. Thus, mass media grows from one way communication to
incorporate interactive communication. Interactivity allows feedback to enter the system
as every stage of the communication process, from acquiring and processing to storing
and distributing. “As our ways of storing manipulating, and retrieving information
change, so too do our perceptions of the world [4].” Much of our perception of the
world is determined by our access to information.
New media technology introduced two major differences in media access. Time and
geographic distance are insignificant with satellite and computer networks. The same
hardware offers limitless channels of distribution that come without centralized control.
These technological changes initiate new culture. McLuhan described this as the “global
village” in which electronic communication would break down the barriers and obstacles
encountered in traditional media by allowing people to see, experience, and understand
more [2]. Similar to McLuhan, Bolter and Grusin explain that we define ourselves
through our media. In traditional media, the audience understands the content from
the producer’s point of view. Interactivity allows the user to have controls over how and
what content is viewed. Note how even the role of the audience has changed as
reflected by the term “user.” This operational freedom is significant to our culture because
it corresponds, “to various attitudes about the role and value of the individual [3].” While
media do not determine cultural or individual identity, the technology influences how we
see ourselves and the world we live in.
2. Banks say they are cautious about adopting gamification techniques because of Page
concerns about keeping the collected data secure. Are they right? Why or why not?
24
ANSWER:
While foreign banks are beginning to launch gaming initiatives in their digital
channels, U.S. banks have been hesitant to follow suit. But any bank that's serious
about customer experience will have to take a hard look at the growing trend.
Although gamification is talked about a great deal in banking circles, few U.S. banks
have been willing to give the concept a try. The hesitation is understandable given
that banks have little experience in designing digital games and - as with any new trend
- banks may be questioning how best to approach and implement a gamification
initiative. But outside of the U.S. many banks are diving into gamification and are
already showing direct benefits from it.
U.S. banks may have been slower to adopt gamification so far because they have a more
cautious attitude toward digital interaction with their customers, says Stessa Cohen,
research director at Gartner, an analyst firm. "U.S. banks are a little more reticent.
Look at how they use Facebook. They use it to push info; they don't engage [with
customers]," she points out. But Cohen predicts that banks here will have to take a
serious look at gamification and how banks in other countries are using games as they
try to outdo each other in digital customer experience. "I think we will definitely see
more banks incorporating gamification. The focus [U.S.] banks are putting on customer
experience will definitely take them there," she says.
The Spanish bank BBVA is one of the foreign banks that have already gotten into
gamification with last year's release of BBVA Game, a game that gives customers
points for using the bank's website. The bank wanted to improve its customer
retention and online customer experience, says Bernardo Crespo Velasco, BBVA's
head of digital marketing in Spain and Portugal. Since its launch last June BBVA Game
has added 75,000 users, Velasco relates, and the customer feedback has been
overwhelmingly positive. The game is made up of challenges that include watching
videos on financial education, making simple banking transactions and using the bank's
mobile app. One of the challenges is a poll where game users get to rate the game and its
impact on the website's user experience. Customers have called BBVA Game "addictive"
and said that they're "in love with the bank's website," Velasco reports, and the website's
overall satisfaction among the game's users is 4.14 out of 5. BBVA Game users earn points
and medals that can be used to enter sweepstakes for prizes such as tickets to Spanish
soccer games.
The bank grew interested in gamification because it was looking at new avenues to
increase use of its website, Velasco says. The bank found that many customers simply
felt more secure in going to the branch to do their transactions, he reports. "We can offer
security certificates for our website but some people just won't use it. So we said, 'Let's
move on to another perspective. Why not move on to something fun and enjoyable?'" he
says. The bank has been so impressed with the results that it wants to get all of its online
customers involved in the game by June of this year, Velasco says. "We're going to make
it an integral part of our bbva.es. It will be part of the value of our website," he says.
Simply hoping to improve customer experience can be a difficult goal to measure Page
concretely, Gartner's Stessa Cohen says, and that may be another reason that U.S. banks
have been shy about gamification. She suggests that banks directly tie their gamification 25
initiatives to increased use of specific products and services, such as opening new accounts
or paying off a loan.
VIDEO CASE 4.2 Page
26
GAGA SHERBETTER FORECASTS HOT SALES,

COLD FLAVORS
It's a blazing hot day, and all you can think about is the cold, sweet sensation of ice cream on
your tongue. Or maybe you prefer the tangy, icy taste of sherbet. GaGa SherBetter is both—or
neither, depending on how your taste buds react to the tart flavor and smooth texture of this
frozen confection. Less than a decade ago, Jim King decided to whip up a few batches of his
grandmother GaGa's lemon sherbet to see if anyone outside his family liked it. He peddled the
sherbet to grocery stores in Rhode Island before stopping at Munroe Dairy, where the owner fed
it to his dog—who lapped up the lemon dessert. “I'll take 500 pints,” said Munroe's owner.
Although this wasn't the most scientific way to test a market, the purchase put King and his wife
Michelle in business—and they've churned out thousands of pints ever since.
Despite the fact the product line has expanded from one flavor to seven (along with six novelty
bar flavors), consumers still aren't quite sure what GaGa SherBetter is—which is a challenge for
the Kings from a marketing standpoint. SherBetter is the Kings' own name for the product,
meaning “sherbet but better.” At only 160 calories and 4 grams of fat per serving, GaGa is
lighter than ice cream, but it packs a creamy punch in the mouth. So they've positioned their
product as the best of both: SherBetter. GaGa product cartons feature a tagline that spells it out:
“Smooth as ice cream, fresh like sherbet.”
Michelle King, now marketing director for the company, acknowledges, “We haven't had a very
scientific approach to marketing research. We've called upon our own resources, our family and
friends, and done a little bit of focus group research.” They have conducted taste tests that
confirm consumers' preference for GaGa over other products. At one taste test of nine frozen
dessert products, Gaga ranked first or second with every participant.
The Kings also rely heavily on sampling at markets and events to get the word out among
consumers and the products onto store shelves. Giving away the product “is the biggest way to
increase sales,” says CEO Jim King. If they are in a store, not only do people buy GaGa that day,
they tend to return for more later on, trying new flavors like key lime or toasted coconut. The
Kings track sales from these efforts to help forecast future potential sales and consumer
preferences.
From the beginning, the Kings knew they couldn't compete with ice cream giants like Hood or
Breyers. Sherbet accounts for only 4 percent of total ice cream sales, trimming the market even
further. So they targeted the higher-end ice cream makers, such as Ben & Jerry's and Haagen-
Dazs, but their product didn't fit there either. “The mistake we made was mis-marketing the
product, trying to market it as something it's not, because we thought it would be more appealing
to consumers,” admits Michelle King. Finally, they hired a company to conduct some marketing
research and received the advice they'd intuited all along: “Be true to ourselves.”
Page
The Kings would advise other young start-ups to conduct focus groups and other marketing 27
research “right out of the gate” instead of waiting as they did. They continue to do the best they
can with a tight budget, making the most of free marketing, such as sampling and social media.
But they believe that all consumers need to do is try a spoonful of GaGa, and they'll become
loyal followers. The dessert gets sweet reviews in the press and blogs, and it has made its way to
some regional and national chains like Shaw's, Wegmans, and Whole Foods. As for the name,
the Kings trademarked it long before Lady Gaga ever hit the stage. There's no research on what
Jim's grandmother would have thought about that.
28
1. How would you define the major problem faced by GaGa that a marketing research
program could resolve? How has this problem affected the marketing of the company’s
products? How might marketing research help?
ANSWER:
GaGa have not used scientific approach in conducting marketing research. They have
used their own resources like family, friends and a bit of focus group for evaluating
their product. They have conducted one taste test to confirm the consumer’s
preference about their product and decided to market it based on their gut feelings.
They wanted to collect data of how many customers enjoy their product by tracking
their sales of product in the stores. The future broadcast of consumer preference by
selling product without prior market research is expensive with little results. Sherbet
accounts for only 4 percent of total ice cream sales and this was the major problem
GaGa faced, which could resolve easily by marketing research program. Due to lack
of market understanding and desire to increase their sales, GaGa mis-marketed their
product SherBetter. SherBetter is lighter than ice cream, but it a creamy punch in the
mouth. It is not a perfect ice cream product and GaGa knew that they cannot beat ice
cream giants like Hood or Breyers. Although they intuited well about their product type,
they targeted itto the higher end ice cream makers, such as Ben & Jerry’s and Haagen-
Dazs. GaGa tried to market its product as something it’s not to appeal more its
customers. As their product was not that kind, it did not fit there. “In product’s
incorrect positioning, your messaging is wrong, but the customer pain point is real and
your product does solve the customer’s pain point. The fix in this case is to change your
messaging to better fit the customer pain point” (Thermond, J., 2014).
History of marketing research:

The concept of marketing research started with NWA, and later significant
development was made by CCP. CCP, an ad salesman, started as a marketing
researcher by counting the total number of soup cans dumped at the garbage in order
to identify the potential target market for C Soup Company.
Development of market research:
The advancement in technology has changed the nature of marketing research. The
marketing research function majorly depends on the structure of the company. Some
firms organize research units to gather information on different geographic areas, brands
or product lines. Few other organizations organize their research function according to the
types of research they require such as new-product development, sales analysis, sales
forecasting or advertising analysis.
Current status of market research:
In recent times, several companies specializing in marketing research have been setup.
These companies undertake marketing research functions for the companies that require
it, thereby helping the companies to cut cost and manage its resources effectively.
2. Identify the methods of collecting primary data, and give an example of how GaGa might Page
implement each method?
29
ANSWER:
“The principal methods for collecting primary data are observation, surveys and
controlled experiments” (Boone, G., & Kurtz, D., 2014). In observation method,
marketers are trying to identify consumer’s behavior in certain situations by people
meters, video tapping etc. GaGa company can observe their potential customers with
their health-conscious attitudes as the product is of low calorie and beneficial over
ice cream. They should observe people about their health consciousness by going to gym,
video tapping cooking habits and purchasing behaviors of healthy foods. The company
should carry out surveys by contacting their potential customers by telephonic interviews
about new substitute of ice cream with flavors. Personal interviews and mails should also
work out to gather data. They can ask to some health-conscious focus group of 8 – 12
individuals about their interest in low calorie healthy sherbet.GaGa can also ask the
individual groups about how they feel to have a tangy, icy taste of sherbet in a blazing
hot day and about their preference. They can also experiment the new flavorson proper
sampling of consumers to target their best liked flavors by test marketing. Test marketing
will be the common method which GaGa already used on its own family and
friends. However, for getting primary data they should carry out proper sampling of test
groups of real consumers with their product. By all this means, GaGa would
achieve the perfect primary data on market research about its product, which will
help it in boosting up its sales.
Page
30
CHAPTER 5
Market Segmentation,
Targeting and
Positioning
CASE 5.1 Page
31
CRUISE COMPANIES LEARN HOW TO CATER

TO DISTINCT MARKET SEGMENTS
The typical cruise ship passenger may not actually exist. While the core target market for cruise
vacation is 25 or older, with a passport and household income of at least $40,000 who is likely to
have cruised at least once before, that description now covers more than 40 percent of the U.S.
population. That’s why cruise marketers no longer think in terms of an “average” customer. So
many different specialty cruises are springing up to appeal to different market segments that almost
anyone can find themselves in a target group.
What’s your passion? Whether you like to cook, quilt, tango, snorkel, listen to jazz, play
basketball, garden, watch movies, gaze at Impressionist art, explore investment strategies, hold a
family reunion, or engage in a host of other pursuits, there’s a themed cruise for you, with specific
on-board and on-shore activities, workshops, and seminars hosted by skilled instructors. Even if
you’re attending a business meeting or conference rather than enjoying a vacation, you may well
find yourself cruising for the occasion. Business managers find that meetings on cruise ships can
save as much as a third of the cost of land-based gatherings, once all cost factors like meals,
lodging, travel, and audio-visual equipment are taken into account. Besides, says the cofounder of
a company that plans such events, cruising “excites people.”
Passengers do fall into numbers of traditional demographic categories that cruise marketers
find useful. Analyzing factors like country of origin, language, economic status, and
psychographics, marketers have devised distinct market segments. “Explorers” are well-to-do
repeat customers, a small group that’s profitable but challenging to please. “Admirals” are older
and loyal; they appreciate a traditional experience. “Marines” are young professionals on the
lookout for a better experience each time; they’re eager to parasail, surf, and rock climb. “Little
Mermaid” are upper-middle-class families in search of a memorable vacation, while “Escapers”
just want to get away from the daily grind without worries or complications. Finally, “Souvenirs”
are in search of the best deal; price is their priority.
Marketers even have a term for those whose interest and income make them unlikely to
become cruise customers. They are “Adrift.”
32
1. Is segmenting customers as “Explorers,” “Admirals,” and the like a useful marketing
tool? Why or why not?
ANSWER:
Case synopsis:
Cruise line is a company that operates cruise ships. It is a passage ship used for pleasure
voyages. The core target market for cruise vacations is under the age level of 25 or older
with passport and a household income of at least $40,000.
• Step 2 of 5
The cruise marketers find potential passengers by categorizing according to the number of
traditional demographic. There are various factors to be considered in analyzing marketers
having devised distinct market segments. The factors are country of origin, language,
economic status, and psychographics.
• Step 3 of 5
There are two methods of segmenting customers like explorers and admirals. Explorers are
persons who participate in exploring the situations from the age group of 15-.20. This area
of segmentation helps to acquire profitability in the business. Admirals are customers with
most traditional experiences, older in age group category, and are loyal in nature.
• Step 4 of 5
Adrift is another type of marketers those who are interested and income factor is not the
category to become cruise customers.
• Step 5 of 5
Segmentation of customers as Explorers and admiral is useful marketing tool is explained
below:
There are two methods of segmenting customers like explorers and admirals. Explorers are
persons who participate in exploring the situations from the age group of 15-.20. This area
of segmentation helps to acquire profitability in the business. Admirals are customers with
most traditional experiences, older in age group category, and are loyal in nature.
Explorers have enough disposable income and take longer cruises in the market. It is the
best marketing tool as future opportunity to satisfy and retain their business. Admirals are
great cruise consumers, they tend to be older and good, loyal customer based. But offer
less opportunity for growth.
2. Which segments of the cruise market are most likely to be influenced by social media? Page
Why?
33
ANSWER:
I think that the segment explorers are most likely to be influenced by social media.
Explorers are always looking for a new adventure so they are bound to look for that perfect
adventure through social media. Social media are full of people who are curious, looking
for the next big thing going on, and will keep track of it. When you are trying to reach an
audience such as explorers there are multiple ways to market the cruises. You can do it
through the cruise company website, social network site, blogs etc. When you hear about
something through word of mouth you can’t help but to dig deeper and see what’s so
interesting about it. The most important thing is to get the explorer attention and to plan
the best possible cruise for them, rather if they are pleased or not we can only hope. The
social media network is also user-generated, user-organized, user-distributed and user-
regulated, giving more control and lending more credence to the consumer. For example,
within days of an attempted Somali pirate attack the "Online Cruise Brand Buzz" about
Oceania increased 6000%. There were 6,000 views of a Cruise Critic post on the subject.
VIDEO CASE 5.2 Page
34
NEDERLANDER TARGETS THEATHERGOERS

EVERYWHERE
For marketers to send effective messages to customers, they need to know who those customers
are—and what they want. Nederlander Producing Company has been in the theater business for a
century, but its owners aren’t looking backward. Instead they’re focused forward, on the most
advanced ways to identify and serve their audiences. “Everything we do along the food chain of
the theater industry is about enhancing the customers’ feeling when they experience a Broadway
show,” says Nick Scandalios, executive vice president of the Nederlander Organization. To do
this, the company goes to great lengths to target exactly who those customers are.
Nederlander segments its audiences in a few ways: geographic, demographic, and psychographic.
The company also engages in some product-related segmentation by building brand loyalty to its
stable of theaters, productions, and concerts. Since Broadway is located in New York City, it’s
natural for Nederlander to market to consumers living within the tri-state area of New York, New
Jersey, and Connecticut. But Nederlander also owns theaters and produces shows in Chicago,
Detroit, Los Angeles, San Diego, Tucson, and Raleigh, among other cities—so the company
markets to consumers living around those areas as well. Then there are the tourists who live
elsewhere but travel to any of those cities—Nederlander makes sure to communicate with them
too. Thus, the geographic range extends nationwide. “Nederlander was the first such company to
develop a one-on-one digital interaction with all of the people who go to all of the Nederlander
houses across the country, called Broadway Direct,” says Scott Sanders, co-lead producer of the
revival of the Broadway hit musical Evita. “There are over 2.5 million people on that list. It’s a
very valuable list, these are very targeted theatergoers.”
Broadway Direct also helps Nederlander and its partners segment their audiences by demographics
and psychographics. For example, by tapping the digital list, says Sanders, “we sold more than
$500,000 to those customers, all at full price.” These are consumers who can afford premium seats
and performances and are willing to pay for them. They are people who enjoy the theater and make
it part of their entertainment lifestyle. All of the data gathered by Broadway Direct creates user
profiles that the company relies on for everything from deciding which shows to invest in or host,
to which consumers will most likely attend each show. “The more we know about audience
purchasing habits, the better we can become at serving them with the shows we think they’d find
most interesting,” notes Sean Free, vice president of sales and tracking at Nederlander.
The company doesn’t stop with an initial communication blast to more than 2.5 million
theatergoers. Instead, it follows up with what Free calls retargeting, which further identifies
audience members by their preferences. Each Broadway Direct newsletter contains opportunities
for consumers to click on different options for content. “We put these people in specific buckets,”
explains Free. For example, as Evita approached its launch, Broadway Direct sent theatergoers an
online newsletter containing feature articles, video, audio, a sweepstakes, and, of course, a “Buy
Tickets” button. Consumers had a seven-day window to purchase tickets at a lower price, after
which the price would go up. Those who clicked the button but didn’t follow through with a
purchase received a follow-up email from Broadway Direct a few days later, reminding them of
the opportunity. Free estimates that the second email generated an additional 15 to 20 percent in
sales.
Nederlander also carefully positions its offerings to differentiate itself not only from other theater Page
productions but also from other types of entertainment on which consumers might spend their
dollars. “We thought it was important to position Evita as an important event because it was the 35
first time in 30 years the show had been on Broadway,” notes Free. “So this was going to be a big
deal.” Nederlander and its partners treated it as such. When they landed Ricky Martin for the lead
role of Che, they immediately contacted Martin’s fan club and marketing team to launch a presale
for Martin’s fan base. These might not be regular theatergoers, but they wanted to see Martin on
stage. Then Nederlander marketers followed up with a presale to its Audience Rewards customers,
who are members of the company’s loyalty program. “Loyalty is key for any venue or any show,”
acknowledges Free. “People want to come back to see shows and they should be rewarded for
that.” An excited audience crammed the theater in New York to see the premiere of Evita. On
opening night, Ricky Martin and the cast got a standing ovation.
36
1. How does Nederlander achieve the three major criteria for effective market
segmentation?
ANSWER:
Nederlander fulfills the criteria for effective segmentation in such a way that it currently
remains a prominent business interest within the Broadway industry. First and foremost, it
fulfills the criteria of its market segment possessing measurable purchasing power and size
by utilizing their Broadway audience. When people want to watch a Broadway show, they
have and most certainly will pay for it if it is something they would to like view, even
coming to another country to watch it occur. Nederlander has recognized this instance of
their market’s interests, thus catering specifically to their needs and purchases by tracking
the behaviors of individuals who want more of what they have to offer. In doing so, they
are then capable of establishing loyalty amongst their customers towards Nederlander’s
Broadway services. Second, they need to promote their production in some way to appeal
to their target markets effectively, thus utilizing the fame of celebrities such as Ricky
Martin to motivate his fanbase into buying or pre-buying their tickets for his Broadway
debut. Finally, Nederlander realizes the fact that its customers are willing to pay almost
anything at full price to get what they would most certainly want. In the case of
Nederlander, individuals often purchase their seats at top price, be it a particular premium
seat or performance. In this particular instance, Nederlander furthers their services by
catering to this specific audience segment, introducing more shows that those individuals
would find most interesting and would most likely purchase premium seats for once again
2. Where would you place Evita’s audience members on the VALSTM framework? Explain
your choice. How might Nederlander use this framework to identify audiences for future
shows?
ANSWER:
"Evita is the celebration and condemnation of a powerful woman that uses music to
beautifully tell her life story," said Cowl. "The rehearsal process was a quick one, which I
appreciate. However with so much material to absorb the last thing you want on your mind
is the material. You want the time to explore and play freely. With that, one of the most
fun aspects has been researching and reading as much as possible about Eva Perón, and
swapping tidbits with our director who is as fascinated as I am."
One's perception of Perón depends, much like a jewel shifting in the sunlight, on one's
vantage point.
"Someone that ruined the lives of many can also be considered to others as their salvation,"
said Director Misty Megia. "It purely depends on your own personal views, ideals and
perspective. Interestingly, this show doesn't provide an ending that wraps everything up in
a nice bow or provide insights on how you should feel. Instead it provides an opportunity
to come to your own conclusion."
Evita is a show that leaves audience members hungry to know more. Who was Eva Perón?
What spell did she weave on the world during her meteoric life 70 years ago?
It helps to have a brief understanding of her life. Eva Duarte was born in 1919, the youngest Page
of five children, in the South American lowlands. In 1934 she moved to Buenos Aires to
pursue a career as a stage, radio and film actress. She met Colonel Juan Perón in 1944 and
37
married him the following year. In 1946, Juan Perón was elected the president of Argentina,
and for the following six years Eva Perón became powerful within the pro- Perónist trade
unions, primarily for speaking on behalf of labor rights. She also ran the Ministries of Labor
and Health and the charitable Eva Perón Foundation, and championed women's suffrage.
Evita, the affectionate Spanish diminutive of Eva, was destined to become a part of
international popular culture. She was said to be a "saint to the working class, reviled by
the aristocracy and mistrusted by the military." Yet in death, she would become a legend.
Evita the musical began as a rock-opera concert album in 1976. Its success led to
productions in London, where it won the Laurence Olivier Award for Best Musical, and on
Broadway a year later, where it was the first British musical to receive the Tony Award for
Best Musical.
The show’s music, by Andrew Lloyd Webber, covers an eclectic range of styles. Classical
music includes the opening choral piece "Requiem for Evita," a choral interlude in "Oh,
What a Circus," and instrumental passages throughout such as those in "Lament" and
"Don't Cry for Me, Argentina." Rhythmic Latinate styles are heard in "Buenos Aires,"
"And the Money Kept Rolling In (and Out)," and "On This Night of a Thousand Stars."
Ballads include "High Flying, Adored" and "Another Suitcase in Another Hall."
Headlining the cast with Ashley Cowl are David Sattler as Che, and Christopher Vettel as
Juan Perón – both outstanding as they deftly embody the characters and the times.
"I love the nuances that Misty has added to this production," said Cowl. "Her vision of
highlighting the parallels between our story and the current political climate is a choice
that's provocative and will have people talking."
And thinking. PCRT's Evita is a show that stays with attendees for days - edging back into
one's consciousness again and again, its haunting melodies and tragic conclusion luring the
mind back in attempts to understand what is not understandable.
Page
38
CHAPTER 6
Product and Service

Strategies
CASE 6.1 Page
39
UNITED AND CONTINENTAL MERGE THEIR

SERVICES
When United and Continental Airlines merged to form the new United, the world’s largest airline,
thousands of systems unique to each carrier had to change. Getting it right would take “several
years,” according to the new company’s CEO, “which I think is surprising to a lot of people.”
Determining which airline coffee service would prevails required months of meetings and
taste tests, for example. Managers also had to determine whether to offer first and business class,
whether to allow Jet Skis as baggage, which direction dog crates should face during loading, and
in what order passengers should board. The two carriers had to merge their flight information
services, which track speed, altitude, and arrival and departure times, and decide whether delayed
planes should fly faster or arrive late. Both are costly, and United and Continental each had
different algorithms for making that decision. Hundreds of employees worked on merging more
than 400 in-flight operations manuals to 260 Federal Aviation Administration approval.
Union negotiations related to the merger are still ongoing. United and Continental had two
different seniority scales, and two different sets of uniforms for male and female employees. Yet
to be determined are whether baggage handlers will wear steel-toed shoes, and how many different
shirt and tie styles male employees will choose from. A new pilots’ contract must also be ironed
out.
Then there were the two carriers’ passengers information systems, with two different
databases, websites, and loyalty programs. Although observers say the company’s careful planning
prevented a complete disaster when the integrated system recently went live, that aspect of the
merger was not entirely problem free. Some United employees had too little experience dealing
with the Continental system chosen for the merged carrier, and response time was slowed at the
same time that call volume was rising. United has since hired 400 new customer service people
and says service is back to normal. It’s also promising a more user-friendly interface for its agents.
40
1. The new United admits it may have hurt itself with customers by making too many
passenger-service-related changes at once, like reducing the free baggage allowance at
the same time it introduced the new passenger information system. Do you agree? Why
or why not?
ANSWER:
UA and CA Airlines were two major giants in aviation, which merged to form the NU,
largest Airlines. The merger experience was as chaotic as it was expected to be. Both had
thousands of processes, and millions of nitty-gritties, which needed to be blended, and the
best of them were to be chosen from in accordance with aviation rule.
An attempt to merge the two carrier’s passenger information systems, having two
altogether different databases, different database management software, different websites
for the customers to land upon, different loyalty programs, was not at all easy. Though the
external system does not shaved much of a problem, lot of interval turbulences were there.
2. On the financial side, the merger is intended to boost revenue and shrink costs. What
customer-service goals do you think the new United has? What customer goals should it
have?
ANSWER:
They are committed in providing a level of service to our customers that makes us a leader
in the airline industry. We understand that to do this we need to have a product we are
proud of and employees who like coming to work every day.
Our goal is to make every flight a positive experience for our customers. Our United
Customer Commitment explains our specific service commitments so that we can continue
a high level of performance and improve wherever possible. The commitment explains our
policies in a clear, consistent and understandable fashion. We have detailed training
programs and system enhancements to support our employees in meeting these
commitments, and we measure how well we meet them.
Welcome on board United Airlines!
• Advise about lowest available fares
• Notify customers of known delays, cancellations and diversions
• Deliver baggage on time
• Allow reservations to be canceled for a certain period after purchase
• Provide prompt ticket refunds
• Properly accommodate passengers with disabilities and other special needs
• Meet customers' essential needs during lengthy tarmac delays
• Treat passengers fairly and consistently in the case of oversales
• Disclose travel itinerary, cancellation policies, frequent flyer rules and aircraft
configuration
• Notify customers about travel itinerary changes in a timely manner Page
• Ensure responsiveness to customer complaints 41

• Provide services to mitigate inconveniences resulting from cancellations and
misconnections
VIDEO CASE 6.2 Page
42
BOLTBUS GIVES BUS TRAVEL A JUMP START
You see them rocketing down the interstate: black-and-orange buses slashed by a gray lightning
bolt. This is not old-style bus travel where you bought your ticket at a seedy terminal counter and
then squeezed into a sweltering or freezing seat and wished your journey would end before it
began. This is BoltBus, a division of Greyhound Lines and part of a new generation of bus
companies that offer a surprising combination of cheap rates and upscale amenities.
BoltBus is a bundle of goods and services designed to meet the needs of travelers along the
Northeastern corridor and recently in the Pacific Northwest. “BoltBus is a bus company that
meets the needs of the urban, educated, and adventurous type of customer,” says Nicole Recker,
senior marketing manager for the company. “We target college students, young professionals,
and young families.” The goods are the updated buses themselves—comfortable seating with
extra legroom, along with power outlets and free Wi-Fi. The services include online ticket
purchasing, confirmed reservations, express routes, and real-time status updates on Twitter. “It’s
more like an airline than it is like a traditional bus,” observes David Hall, the company’s general
manager. “It’s a reservation service, so when you buy a ticket you have a reservation on that
bus.”
Bus travel has been around for a long time. In fact, for a number of years, ridership experienced
a steady decline. Customers were fed up with high prices (compared with train or air travel),
inconvenient schedules, uncomfortable seating, and poor safety records. But in recent years the
industry has changed dramatically. During the late 1990s, a different business model emerged:
Companies began selling tickets on the Internet instead of at ticket counters in terminals. Hall
and his team observed that there might be an opportunity to jump start bus travel from a
declining phase in the product lifecycle. Roughly 15 competitors already shared the Northeast
market, many of whom had introduced online ticket sales. So BoltBus had to find ways to
distinguish its brand from rivals. The average ticket price for a BoltBus trip is $20, which is a
bargain in the Northeast. The combination of low prices and higher-end amenities has been a hit
with travelers. In fact, BoltBus seats sell out so quickly that regular passengers know to book
well in advance or they’ll be riding another bus line. Travelers clearly appreciate the easily
accessible power outlets and free Wi-Fi, in addition to the express-type service, which means the
buses don’t make many stops. Hall likes to compare BoltBus to Southwest Airlines. “We wanted
a brand that was affordable . . . a fun, easy-to-use brand. We don’t have a lot of rules and
regulations.”
BoltBus was launched in 2008 from its primary hub of New York City, running buses from there
to Washington, DC, Philadelphia, and Boston. Other cities—including Baltimore and Newark—
were added later. BoltBus hit the Pacific Northwest in 2012 and Southern California in 2013.
Today, the company employs about 200 workers and operates 92 buses that carry more than 2
million passengers a year. “We try to stay lean and keep our costs down, which keeps ticket
prices down,” says Hall.
The marketing budget for BoltBus is lean, too. The company relies heavily on word-of-mouth Page
and social media. “We pride ourselves on offering customers the best possible rate they can get,
which means we operate on a fixed budget when it comes to marketing,” explains Nicole Recker, 43
the company’s senior marketing manager. “We don’t take part in traditional marketing
initiatives. We focus on local grassroots efforts.” Because many of the bus line’s passengers are
young and tech-savvy, Recker says that Twitter has given the company its biggest marketing
boost. “The customers enjoy that real-time feedback. They can engage with us as a business. ”
Passengers might tweet about a delay while en route, receiving immediate responses and real-
time updates from BoltBus about the status of the situation. BoltBus may tweet to passengers
about weather or road conditions that could affect the schedule. “This has proved to be extremely
beneficial,” says Recker. The company has found customer interactions via Twitter to be so
effective that it has hired staff to monitor its Twitter account. Bus travel has taken to the
highways again, and BoltBus is driving in the express lane.
44
1. Where does BoltBus fall on the goods–services continuum? With this in mind, what
strategies might BoltBus use to gain a competitive advantage over rival bus companies?
ANSWER:
The goods-service continuum is a spectrum that helps marketers visualize the differences
and similarities between goods and services, BoltBus lies on the service side of the
spectrum. Boltbus can emphasize the differences between its service and the service found
on other bus lines. On its website, Boltbus offers select seats for $1 fares on all of its routes.
The company also offers a rewards program for its bus line, but unlike Airlines, it is as
easy as it can be, buy 8 tickets get your 9th free. All of these unique features to Boltbus
ensures their competitive advantage above other bargain bus companies.
2. What steps could BoltBus marketers take to extend its product lifecycle?
ANSWER:
The marketing team of Boltbus has already established a few tactics to extend its product’s
lifecycle including a rewards program for frequent travel. The marketers could also extend
their lines into other areas of the country where young professionals and college students
would use this service. Also highlighting the positives of bus travel to gain new customers,
those who may own a car but might choose to use Boltbus instead (for example, no extra
gas costs, tolls, parking, parking tickets, and traffic).
Page
45
CHAPTER 7
Pricing Concepts
CASE 7.1 Page
46
SCOREBIG: NAME YOUR PRICE FOR LIVE

EVENTS
If you’ve ever tried to get tickets for a game, show, or concept that ended up being sold out, you
may be surprised to find that 20 to 40 percent of seats for many such events actually go unsold.
High prices keep many otherwise-willing people way from arenas and concert halls, although the
live-event business earns $22 billion a year in the United States. The recessionary economy is
having an impact on sales, causing even headlines acts to cancel performances when tickets priced
at hundreds of dollars don’t sell.
Now, however, you can bid on hundreds of thousands of those unsold seats through a fast-
growing, Los Angeles-based start-up called ScoreBig, which lets consumers make an offer for the
event of their choice in much the same way that PriceLine.com auctions hotel rooms and airline
tickets.
ScoreBig operates a website through which visitors can bid on upcoming events, and daily
auction on its mobile app for the iPhone, called ScoreBig Daily, for those who don’t need to plan
ahead and who live in Los Angeles, San Francisco, or New York. In both channels, the company
list events with excess inventories of seats and invites customers to vid for the chance to pay at
least 10 percent less and sometimes as much as 60 percent less than the original price, often within
a seating area of their choice. The company provides a ballpark price for bidders. If the bid is
accepted, a confirming email is sent immediately and the customer prints out the ticket. The
average saving is 42 percent, and because ScoreBig deals directly with event promoters, there are
no fees or handling charges.
ScoreBig Daily, the iPhone app, will soon be available on other wireless platforms. It offers
tickets for about six performances a day and stores customers’ event preferences, whether for
sports, music, theater, comedy, or family events. It will offer the same deal to friends if the bidder
shares purchase via social media and will even save nearby seats for friends.
47
1. Critics say event promoters are to blame for the high number of unsold tickets, because
they have continued to raise ticket prices to compensate for untold seats until they rise
out of range for the most audiences. Yet promoters feel discounts damage their brands.
Can you suggest possible answers to this pricing strategy problem?
ANSWER:
Case analysis:
Most events are planned for promotional purpose and the event promoters try to find out
ways to make money. The main responsibility of event promoters is to find sponsors for
the show, sell tickets, attract audience and make necessary arrangements for the event. The
tickets that fall in the prime category are always sold for higher prices than those in the last
row of the arena. This is a simple tactics to make good profit.
Justification:
The critics say that unsold tickets are due to rise in prices of tickets. This criticism is
partially true. Many customers do not show interest to spend high amounts for concerts.
Sometimes, the promoters may raise the prices due to different factors such as type of the
event, cost incurred in organizing, etc.
2. Is auctioning the best way to eliminate unsold seats? Why or why not?
ANSWER:
Yes, ss long time readers of The Economist can testify, this newspaper likes auctions. For
economists, it is the best solution to most problems. It is more elegant than the other two
main forms of setting a fee: haggling and menu pricing. The former is inefficient because
the seller might not be negotiating with the person prepared to pay the most. The latter will
be inefficient unless the seller has exhaustive knowledge of the supply and demand
conditions and can quickly adjust his prices accordingly.
Example:
Airlines generally take a version of the latter approach. They use dynamic pricing that
calculates demand for seats on their planes and updates the fare accordingly. Generally,
their algorithms do a pretty good job. Even though the price of the same seat on a flight
can vary greatly over the period it is on sale, the average plane is around 80% full.
VIDEO CASE 7.2 Page
48
SKI BUTTERNUT: GREAT PRICES FOR WINTER FUN
You might not be a skier or live anywhere near a mountain. Perhaps your idea of fun leans more
toward sun, sand, and waves. But as a marketer, you can appreciate the seasonal nature of a small
ski resort like Ski Butternut that’s tucked away in the Berkshire Mountains of western
Massachusetts How do marketers approach pricing objectives and set prices for a recreational
experience that is vulnerable to the whims of weather, climate, overall economic shifts, and the
cost of everything from electricity to labor—not to mention the changing incomes and lifestyles
of consumers? Ski Butternut has been in business for more than 50 years, which means that its
owners have solved at least some of the pricing puzzle. Matt Sawyer, director of marketing at Ski
Butternut, puts it this way: “Our customers are looking for a great value. They’re willing to be
loyal if we treat them correctly.”
Ski Butternut takes both sides of this equation—great value and loyal customers—into
consideration for its pricing objectives. Sawyer readily points out that, while Ski Butternut is a for
profit company, the mountain doesn’t realize a profit every winter. “Weather plays a huge role,”
he says. “You don’t know whether you’re going to be profitable until the end of February.”
Running a ski resort involves huge up-front costs and a lot of uncertainty. Target-return objectives
for the ski school or holiday periods may melt with an early thaw. Ski Butternut managers must
try to project a typical operating budget and find ways to make a profit as their customers enjoy
their time on the slopes.
Plenty of ski resorts dot the New England landscape, which puts Ski Butternut in competition for
consumers’ recreation dollars. So Ski Butternut offers value to customers, hoping to capture
market share and increase the volume of skiers on its slopes. The mountain offers value pricing to
everyone, with special attention to first-time skiers, families, and season pass-holders. In order to
boost the number of skiers who hit the mountain during the week (reducing gridlock on the slopes
during weekends), Ski Butternut sets its Monday–Friday lift ticket price at $25. Unlike other
mountains, Ski Butternut doesn’t offer special deals, such as a “half-price Tuesday” or “ladies’
Wednesday.” Sawyer believes that customers prefer this straightforward approach to pricing. “It’s
easy to understand, it’s predictable,” he explains.
To attract more skiers and snowboarders to the mountain, Ski Butternut offers first-timers a learn-
to-ski package for $75, which includes a lift ticket, lesson, and rental equipment (if purchased
separately, these three items would total $135). The offer is good every day, all season—no
blackout periods for weekends or holidays. “We want people to come when they can,” explains
Sawyer. For the second visit, skiers can purchase a $100 package ($35 off). “This price point
allows people to get exposed to the sport,” notes Sawyer. The mountain also offers midweek ski-
and-stay packages for $45 per person/per night—a great deal especially when compared to some
of the larger, more glamorous resorts.
Kids and families are a special focus for Ski Butternut, which has created several special programs
for them. For example, fifth graders ski free Sunday through Friday when accompanied by a paying
adult (and children who have never skied before get a free first timers’ package). Ski Butternut
targets this group, because it’s the optimum age to get started, experience success, and continue
with a lifetime of skiing or snowboarding. Because New England is home to a number of colleges
and universities, Ski Butternut offers a $20 discount to college students, giving them a reason to
get outside and ski—and become loyal Butternut customers.
Sawyer points to season pass-holders as one of Ski Butternut’s most important customer segments. Page
With a $275 price tag and a breakeven point of only five visits, a Ski Butternut season pass
represents huge savings to regular skiers. In return, those skiers spend dollars on food, lessons, and 49
other mountain services. Once they’ve spent the money for the pass, they tend to ski at least 10 to
15 times during a season. “That’s great because they are the strongest word of- mouth advertising
we’re going to find,” acknowledges Sawyer.
Finally, Ski Butternut boosts its volume by offering special rates to groups under its “You Serve,
You Save” program, along with Boy Scouts and preregistered ski clubs. Members of the military,
police officers, firefighters, and EMT professionals (and their families) receive discounted
packages when they make advance reservations. “We want to give them an incentive and say thank
you,” explains Sawyer.
50
1. Ski Butternut avoids pricing to meet the competition. Instead, it focuses on the value that
it creates for customers. In your opinion, why is this a successful strategy?
ANSWER:
The pricing strategy that SB follows is absolutely a successful strategy to attract customers.
In these days, people are not attracted by the slash in prices or attractive offers. People
want a quality product or a service rather than a half-baked service. Companies need to
maximize their profits, hence in order to meet the expenses and make some profit, SB
concentrates on providing quality services rather than attracting customers by
compromising on price or service.
Take for example a normal leather bag will usually cost some where $20 to $30 but a
branded leather bag is sold at $75 - $125. People are there to buy both the products but the
fact is people who give importance to quality will definitely be running behind branded
one rather than buying a normal bag. The same principle applies to SB as well.
2. What factors might determine demand elasticity for Ski Butternut’s offerings?
ANSWER:
Some of the major factors affecting the elasticity of demand of a commodity are as follows:
A change in price does not always lead to the same proportionate change in demand. For
example, a small change in price of AC may affect its demand to a considerable
extent/whereas, large change in price of salt may not affect its demand. So, elasticity of
demand is different for different goods.
Various factors which affect the elasticity of demand of a commodity are:

1. Nature of commodity:
Elasticity of demand of a commodity is influenced by its nature. A commodity for a person
may be a necessity, a comfort or a luxury.
i. When a commodity is a necessity like food grains, vegetables, medicines, etc., its demand
is generally inelastic as it is required for human survival and its demand does not fluctuate
much with change in price.
ii. When a commodity is a comfort like fan, refrigerator, etc., its demand is generally elastic
as consumer can postpone its consumption.
iii. When a commodity is a luxury like AC, DVD player, etc., its demand is generally more
elastic as compared to demand for comforts.
iv. The term ‘luxury’ is a relative term as any item (like AC), may be a luxury for a poor
person but a necessity for a rich person.
2. Availability of substitutes:
Demand for a commodity with large number of substitutes will be more elastic. The reason
is that even a small rise in its prices will induce the buyers to go for its substitutes. For
example, a rise in the price of Pepsi encourages buyers to buy Coke and vice-versa.
Thus, availability of close substitutes makes the demand sensitive to change in the prices. Page
On the other hand, commodities with few or no substitutes like wheat and salt have less
price elasticity of demand. 51
3. Income Level:
Elasticity of demand for any commodity is generally less for higher income level groups
in comparison to people with low incomes. It happens because rich people are not
influenced much by changes in the price of goods. But, poor people are highly affected by
increase or decrease in the price of goods. As a result, demand for lower income group is
highly elastic.
4. Level of price:
Level of price also affects the price elasticity of demand. Costly goods like laptop, Plasma
TV, etc. have highly elastic demand as their demand is very sensitive to changes in their
prices. However, demand for inexpensive goods like needle, match box, etc. is inelastic as
change in prices of such goods do not change their demand by a considerable amount.
5. Postponement of Consumption:
Commodities like biscuits, soft drinks, etc. whose demand is not urgent, have highly elastic
demand as their consumption can be postponed in case of an increase in their prices.
However, commodities with urgent demand like life saving drugs, have inelastic demand
because of their immediate requirement.
6. Number of Uses:
If the commodity under consideration has several uses, then its demand will be elastic.
When price of such a commodity increases, then it is generally put to only more urgent
uses and, as a result, its demand falls. When the prices fall, then it is used for satisfying
even less urgent needs and demand rises.
Page
52
CHAPTER 8
Pricing Strategies
CASE 8.1 Page
53
WHO NEEDS THE U.S. PENNY?
Does an object that costs more to make than it’s worth have any value in today’s economy? If the
object is the U.S. penny, a growing consensus says “no.”
Canada will soon stop producing its penny, following the lead of Australia, New Zealand,
Brazil, Norway, Switzerland, Finland, and Britain, which all dropped their lowest-valued coins for
circulation with no ill effects. And Canada’s penny wasn’t as big of a drain on the country’s
treasury as the U.S. penny. It cost only 1.6 cents to make. Whereas the U.S. penny-a copper plate
covered by a 99 percent zinc core-cost taxpayers 2.4 cents each. In one recent year, the U.S.
Treasury spent $60 million minting pennies, more than double the cost in 1982, all for coins that
have no real purchasing power.
Canada’s government will ask citizens to bring unwanted pennies to banks to be melted
down or donated to charities. Canadians who want to continue using the pennies still in circulation
are free to do so. They will have fewer opportunities than before, however, since cash sales will
be rounded to the nearest five cents.
The zinc industry wants to keep supplying raw material to the U.S. government, of course,
but as the cost of zinc keeps rising, some people feel it’s time to follow Canada’s example and
simply eliminate the penny, saving the government the cost of manufacturing it and diverting the
metal to some other, better use.
Other people worry that, if all prices are rounded up to the nearest nickel, rather than down,
those most affected will be the poor. Others feel that rounded prices will acquire what economists
call “stickiness” and resist further increases (which would have to be at least 5 cents) for a few
years, thus helping all consumers. “A 99-cent price might go down to 95 cents rather than up to
$1 to avoid crossing that higher price threshold,” says a senior economist at the Federal Reserve.
54
1. What do you think would happen to retail prices if the United States withdrew the penny
for circulation? Why?
ANSWER:
I think if the penny were to become obsolete, customers would be impacted negatively.
Businesses would be forced to round up and consumers would end up paying more for
products, which in turn would mean business taxes would go up. So it seems to be a lose
lose situation for everyone. In my opinion, the penny should stay in circulation because it
creates a great marketing tool. A great example would be, I might buy a product for $9.99,
however, if it cost $10.00 I may not give it a second look.
Currency in any form is important to a developed or developing economy. To rule out an
existing currency in any form requires a lot of brainstorming session with senior
advocacies, economists and most important of all needs public opinion and suggestion.
Without cooperation from public executing a policy will not be successful.
If the United States were to withdraw their penny from circulation then definitely the retail
prices are expected to rise sky high. Retail shopping is exactly opposite to wholesale
shopping where the quantity purchased by the end users are less. When the quantity of the
product comes down naturally the price also comes down. So people will be spending only
in cents and penny and hardly $100 maximum to meet their daily needs. So if US rules out
penny then the retail rates or prices will definitely go high there by creating a strong
apprehension for the government among the public.
2. Some observers suggest eliminating the nickel as well, since each one costs more than
11 cents to make and distribute. Do you agree, and why or why not? What would be the
effect of such a decision on prices?
ANSWER:
The question is whether or not to phase out pennies and to round all retail prices to that of
nickels. By doing this it would increase the productivity of nickels, which in turn would
cost more to make. I believe these arguments can go hand in hand with each other, with
that being said I think the Federal Reserve should do away with coins all together.
VIDEO CASE 8.2 Page
55
BOLTBUS: RIDE FOR THE RIGHT PLACE
It’s hard to find a real bargain these days, but BoltBus is the real deal. Those black-and orange
buses you see trundling past you on the highway or along a city street could be your ticket to ride—
for $1. BoltBus, owned by Greyhound Lines, operates buses along the Northeastern corridor, in
California, and in the Pacific Northwest, moving more than 2 million passengers each year. The
company’s primary customers are those in the 18- to 34-year-old range—college students, recent
grads, young professionals, and young families. These riders tend to be budget-minded, and
BoltBus caters to them. Pricing is a major component of the bus line’s marketing strategy.
When BoltBus launched its line in the Northeast, at least 15 other competitors already operated in
the region. In addition, travelers could opt for planes or trains, or they drive their own cars. So the
bus line had to offer a brand that sold tickets online, at a very competitive cost. “Pricing is really
crucial because it’s such a competitive environment,” says William Koen, a business analyst for
BoltBus. With so many other options available to consumers, BoltBus opted for penetration
pricing—including its now-famous $1 ticket—relying on the buzz generated by travelers who
nabbed the golden ticket as well as those who began to ride the bus line for its average $20 fare.
Typically, BoltBus will sell one $1 ticket per route, selling the remainder of seats for around $20.
Whoever gets the $1 ticket often posts their lucky draw on Facebook or Twitter—and the news
goes viral. “The $1 ticket is meant to be fun,” explains Nicole Recker, senior marketing manager,
and the strategy seems to work. Everyone hopes to be the $1 ticket holder, but no one minds paying
the regular fare, which is significantly lower than those of competing bus lines.
BoltBus does have to monitor its costs, particularly those of fuel and labor. When these two factors
have risen, the company has increased prices in small increments to keep up, with the goal of
maintaining both value and profitability. The company also continuously monitors the competition
to make sure its service is priced less than its rivals while meeting its costs. BoltBus takes into
account the price of gasoline, tolls, and parking for those consumers who choose to drive—and
tries to offer a cheaper, more convenient service. “Generally in New York City you’ll pay more in
parking per day than for a one-way ticket on our buses, so having that value for our customers has
driven our explosive growth,” notes Koen. “It’s opening up an entire new market for the bus
industry.”
BoltBus also takes demand into consideration when setting prices. Using historical data, marketers
see how many people its buses have carried along a certain route on any given day or time period.
Then they tweak certain variables—such as the frequency of runs—to maximize revenue and
profitability without cutting value to customers. For example, ridership tends to increase during
the weekends and holiday periods, so BoltBus offers more runs during those high-volume periods,
while cutting runs during the midweek when the buses aren’t filled. During low-demand periods
(such as Wednesdays), BoltBus may offer a lower price to attract more volume; conversely, during
high-demand periods (such as Friday evenings), ticket prices are a bit higher. This type of pricing
to demand is similar to the strategy of hotels and airlines; consumers pay more to fly or stay in a
hotel during popular vacation weeks. Since seats generally sell out during these high-volume
periods, BoltBus doesn’t need to discount the ticket price. But an empty seat represents a loss of
revenue to the company, so a discounted sale is better than no sale—which is why BoltBus offers
lower prices during quieter times of the week or year. “It’s a high-volume business model,”
explains general manager David Hall. “We keep the price low and the volume high.”
BoltBus’ pricing policy is attractive to consumers. Prices are straightforward and easy to Page
understand; consumers know what to expect and what they are getting for their dollar.
“Transparency has been key to our success,” says Recker. “It’s done a lot to enhance our brand.” 56
BoltBus charges no hidden or additional fees and doesn’t jack up its prices without warning.
“We’re very honest with our customer,” says Recker.
57
1. How does BoltBus use a combination of penetration pricing and everyday low pricing
(EDLP) to achieve its objectives?
ANSWER:
By using a combination of penetration pricing and everyday low pricing, Boltbus achieves
its objectives by adopting a user friendly pricing strategy. They understand the
requirements of public and also the requirement of the government. Rather than taking a
two wheeler and driving down the road it is better to take a sophisticated bus that charges
us less than the price of petrol.
It was not easy for Boltbus to break the market and enter into the competition of providing
cheap transportation facilities but it had to differentiate itself from providing services that
had to be both cost effective as well as profitable. Boltbus clearly understands the transport
needs of the public and operates accordingly. It raises the fare of the ticket slightly during
peak hours so that good revenue is generated and compensates it during the trips that are
organized during lean hours during the week. But though it has variable pricing policy it
makes sure that it attracts the customers using the $1 ticket that is considered to be the
lucky draw of the day. When the component of variable pricing comes into picture it
becomes easy for the company to reduce or increase the trips accordingly.
2. BoltBus is well known for its $1 ticket sales promotion. Though it has been successful
thus far, could it ever backfire? If so, how?
ANSWER:
Yes, because the promo 1$ ticket would not last for a long time due to some common issues
such as INFLATION RATE – (measurement of inflation, the rate of increase of a price
index (in this case: consumer price index). It is the percentage rate of change in prices level
over time. The rate of decrease in the purchasing power of money is approximately equal.
It would make the diesel and the parts of the said vehicle to become more expensive that
the company could not sustained it for a long time doing their 1$ ticket promo. Their
calculation on doing so, this kind of Marketing Strategy is not for a long period of time.
They just calculated on their current data without forecasting the events of the future. It
would backfire to them because of the customer’s expectations that would cause to
disappointment of their valued customers.
Page
58
CHAPTER 9
Marketing Channels
and Supply Chain
Management
CASE 9.1 Page
59
NATURAL DISASTERS DISRUPT THE GLOBAL

SUPPLY CHAIN
Aside from tragic human losses and incalculable damage to property, manufacturers around the
world were affected by two recent, unprecedented natural disasters. First came the magnitude 9.0
earthquake and tsunami that hit Japan, followed by deadly flooding in Thailand in the same year.
While damage to Japan’s automotive parts makers and Thailand’s disk drive industry immediately
affected customers like Honda and Apple, manufacturers as far away as Ohio and Denmark,
making products from shoes to aircraft tires, also were hampered by supply chain disruptions.
Danish shoe manufacturer ECCO used scuba divers to retrieve specialized shoe molds from
a flooded Thai factory to continue producing at other locations. Honda employees in Ohio grappled
with temporarily reduced hours while awaiting parts from Thailand. Some key Honda suppliers in
Japan had still not resumed shipments of components unobtainable anywhere else. Nissan,
meanwhile, sent car parts normally intended for U.S. plants to Asia in order to continue production.
Apple and Hewlett Packard predicted reduced future earnings, based on supply disruptions after
hard-drive manufacturer Seagate suffered damage to its two Thai factories. And without hard
drives, computer manufacturers had less need of computer chips, so Intel also predicted lower
revenues.
In Japan alone the economic costs of the earthquake and tsunami were running at $210
billion before the year was over, and losses in Thailand reached an estimated $30 billion only
weeks after the floods receded.
The two disasters’ lingering (and some cascading) effects led some companies to
reconsider their reliance on lean. Decentralized manufacturing methods, including just-in-time, all
of which increase efficiency and reduce costs but may leave companies vulnerable to supply chain
disruptions. Natural disasters are unavoidable, and even early warning offers limited advantages.
With the likelihood of more extreme weather to come, some companies have pulled back
from lean methods and invested once again in redundancy-multiple suppliers, backup facilities and
stockpiles of critical parts. After all, in an insurance company’s survey completed before the
earthquake in Japan, 600 CFO’s were asked what threat to their revenue drivers they most feared.
The most common answer: supply chain disruptions.
60
1. Do you think companies are wise to favor backup systems over lean manufacturing?
Why or why not?
ANSWER:
Lean manufacturing addresses the issues of product and time waste. Both are obstacles that
stand in the way of an efficient distribution channel – one that provides exceptional customer
service and satisfaction. By choosing backup systems over lean manufacturing, companies may
avoid suffering the ramifications similar to those borne by car and computer manufacturers as
a result of natural disasters in Japan and Thailand. However, return to less complex methods
including the use of multiple suppliers’ and warehousing may cost a company more time and
revenue in the long-run.
2. In what other ways could companies safeguard their supply chains, including
transportation methods, against natural disasters?
ANSWER:
6 Ways To Protect Your Business Against Supply Chain Interruptions
1. If your business is in an area that is prone to large natural disasters (earthquakes, tsunamis,
and hurricanes) you should have a contingency plan to move your operation quickly to a
location outside the affected area. Telephone and Internet changes are made easier if you
use an Internet-based IP phone system.
2. Because hurricanes offer more warning than other kinds of disasters, it is much easier to
institute a hurricane disaster plan. If your company operates in a hurricane-prone area you
should formulate a written plan to mitigate losses and potentially move your operation.
3. Quickly assess the effects of the disaster on your suppliers. You may need to have back
up suppliers in place as a part of your contingency planning.
4. Assess the effects of the disaster on your customers. If your customers are significantly
concentrated in the affected area, you may need to figure out where you can transfer sales
to non-affected areas. You may also want to help your customers recover so they can again
be viable for buying your goods.
5. If you buy from suppliers, try to have several sources located in differnt areas, so that a
single disaster can’t interrupt your flow of raw materials or parts.
6. Most importantly, make sure any contract you engage in has a “force majeure” clause. This
provision allows any party to the contract to deviate from the terms of the agreement in the
case of an act of God or man-made disaster. Larger suppliers will already have such a
provision in their agreements.
VIDEO CASE 9.2 Page
61
GEOFFREY B. SMALL KEEPS MARKETING

CHANNELS TIGHT
Designer Geoffrey B. Small doesn’t want you to buy his clothes. In fact, he might be disappointed
if you were able to find them in a store at all. Small is an American designer who cut his teeth in
the clothing industry by selling jeans at The Gap in Boston. Today, Small’s overall marketing
channel strategy is the opposite of The Gap’s: the fewer pieces he sells, the more successful he
becomes.
Small is blunt about the importance of exclusive distribution to the image of his goods and his
relationships with retail partners as well as consumers. “We have one of the tightest distributions
in the world-designer industry,” says Small. “It’s very difficult to find our collection. So it’s very
exclusive, and that’s by choice, that’s important for our customer. We’re not for everybody, and
we’re not interested in being available to everybody.” Small explains that the benefits of exclusive
distribution outweigh the drawbacks. While it’s true that his firm doesn’t sell as many clothes as
other clothing manufacturers (sometimes Small only makes four pieces of one design), he believes
that reverse psychology works. “People want what they can’t have,” he observes. “Exclusivity is
a fundamental part of our field,” he comments. “If you’re too available, nobody makes money.”
Small makes his profit by selling less—not more.
The flip side to the exclusivity coin is the mandate that a product represent the very best quality of
its type in the world. Small is confident that his clothes meet the highest standards for fabric,
tailoring, and workmanship. To achieve this goal, he headquarters his business in Italy right near
his suppliers. “If you’re trying to make the very best clothes in the world today in terms of
materials, components, and accessories in collaborative work-partnerships, there’s only one place
in the world—and that’s Italy.” The designer deliberately keeps his supply chain very short.
“We’re in a region in Italy where we’re very close to the best suppliers in the world, and we work
with them,” Small says.
Small partners with two fabric makers: one is the oldest woolen maker in the world and the other
is a multigenerational family company. Small is working with the second firm to develop what he
hopes will be the world’s best organic fiber, with the ultimate goal of making the world’s best
sustainable fabrics to be used in luxury fashion design. He is proud of the way these textile
manufacturers complement the expertise his team brings to the design table. They bring “a level
of artisanal excellence that is unique in the world,” says Small. He also notes that the components
of his garments reflect the highest concentration of handwork available that he’s aware of.
Small also maintains a close relationship with his other channel partners, the retailers who carry
his finished garments. Despite the extremely limited production runs of his clothing, Small’s
designs can be found in 10 countries. In addition to producing a handful of items to be sold across
retailers (sometimes one jacket or pair of pants per country), Small works with his retail partners
to come up with designs exclusively for the customers of a particular store. Because so few items
are produced in any given year, Small says that visiting every store is difficult—but he does it.
“The store is where the action is,” he explains. He likes to meet with retail staff who, he believes,
are the most connected to customers—yet are often underappreciated. Small believes that the retail
staff holds key information about consumer needs and preferences. Small also likes to speak
directly with customers on his retail visits, engaging in one-on-one communication with the people
who buy his clothes.
You won’t see a Geoffrey B. Small line at Target or even at Gap any time soon. Small doesn’t Page
want to sell you his clothes unless you share his outlook on fashion, appreciate his designs and
fabrics, will happily pay top dollar for them, and know the right retailers. Although he wants to
62
grow his business, he insists on doing it his own way: with the marketing channels as precise and
tight as one of his hand-sewn stitches.
63
1. Over the next 10 years, do you think Small’s insistence on exclusivity will continue to
benefit his business or begin to be detrimental? Why?
ANSWER:
Per me, Small will continue to benefit his business over the next 10 years because of its
insistence on exclusivity. Small is using pull marketing strategy, which generate a demand
for its garments and attract customers towards the company. “Some of the pull marketing
include mass media promotions, word of mouth referrals and advertised sales promotions”
(Robertson, T., 2017, para. 4). It creates a strong brand loyalty which convert its customers
into company’s advocates, who refer product to others and increase company’s popularity.
Small believes in reverse psychology that people want what they can’t have, and the
company makes money by selling less. These strategy works only if the quality of product
is best among all other competitors’ products. The company manufacture clothes with
highest standard fabric, tailoring and workmanship. Moreover, they are situated in Italy,
where they deliberately keep their supply chain short and work very closely with the best
suppliers in the world. “Effective cooperation allows all channel members to achieve goals
they could not achieve on their own. Keys to successful partnership include high levels of
coordination, commitment and trust between channel members” (Boone, G., & Kurtz, D.,
2014, p. 463). Small know the importance of supply chain in business and he maintains a
close relationship with its two fabric maker partners and the retailers, who carry his finished
garments. The marketing channels relationships are his best strength for the successful
business. Small’s pull methodology and ability to create a demand for its products along
with a good relationship with his short and precise supply chain will make the business
benefited in the future.
2. In your opinion, why does Small have such successful partnerships throughout his
marketing channels?
ANSWER:
Because he does valued his partners and giving importance to them because giving
importance is the master key to success, in all applications of human life.
I would like to give some tips which I read from the internet to make partnerships to
become successful.
1. Start by creating a shared Vision & Mission

Tip: Take time to discuss your company's Vision and Mission with your partners. Look for
what energizes and motivates each of you about your business. Give it a purpose and define
what the ideal business will look like. Put the joint Vision and Mission in writing and use
it as the reference for everything else you do.
2. Make sure each partner's needs and expectations are addressed Page
Tip: Find out what your partner expects from you in the partnership. Share your 64
expectations as well. Have a plan for when personal or business circumstances or
interests change so, when needed, expectations can be readdressed.
3. Identify and utilize the strengths of each partner

Tip: Bringing out and utilizing the strengths of the individuals within the partnership will
add to the motivation, the energy and the odds of long-term success. Make note of your
personal strengths and ask your partner to do the same. Then sit together and discuss how
you can apply these to the business.
4. Support the partnership's limitations

Tip: Look at the areas that are problems for you. Chances are these are areas that could
benefit from some extra support. If you think you can't afford it...think again. You can't
afford not to support limitations. These gaps are where the value of the business slips away
little by little. Don't let it happen to your business.
5. Set company and individual goals
Tip: Review and update your company goals together with your partners. Then get each
partner to set individual goals that support the company goals in their area of expertise. Put
all these in writing and get each to commit to their goals. Then at the end of the period
there is no question about who's accountable for what.
6. Handle disagreements, disappointments and frustrations early.

Tip: Sometimes it's difficult to approach a partner, especially if it's a long standing
relationship that has deteriorated. A regularly scheduled sit down together is definitely a
good idea. Once a week is needed in some situations, but minimally once a month allows
everyone to come with their agenda. It's always best to talk about what you'd like to see for
the business and be positive. Present a plan for change as you see it. That gives everyone
something to work with and respond to.
7. Define job roles for each partner, including accountability 7

Tip: Clearly define the tasks you will perform and have your partner do the same. From
this you can each be accountable to yourselves, to each other and to the business. Where
there are uncovered tasks, contract for or hire a specialist. The objective is to make sure
all jobs are covered and accountability has been assigned and acknowledged.
Page
65
CHAPTER 10
Retailers, Wholesalers,
and Direct Marketers
CASE 10.1 Page
66
COSTCO PLAYS CATCH-UP IN ONLINE SALES
Costco, the $89 billion warehouse-style chain, is the third-largest retailer in the United States. With
the low prices, low employee turnover, and steady growth, the company would seem to be an all-
around success. It even boasts above-average survey scores on the quality of the shopping
experience and customer service in its 600 store worldwide
.
But Costco is playing catch-up online, a sector that’s growing faster than in-store retailing
and where nimble competitors like Walmart hope to gain most of their future expansion. A rarity
in store retailing because it has been profitable since day one, Costco has big plans for boosting its
e-commerce business, but it has also missed some opportunities.
Costco.com takes in about $2 billion a year with a broad assortment of products that are
not always found in the stores. These range from electronics and lawn furniture to caskets and
pricey diamond jewelry (delivered by Brink’s). The convenience of free shipping and assembly
are usually included. Most of Costco’s online customers of the warehouse stores, and their average
purchases tend to be bigger too.
But despite being a brick-and-mortar presence in eight countries abroad, Costco currently
limits its online operations to the United States and Canada. Critics have also found flaws in the
company’s online marketing efforts. Customers are not always aware of the product variety online,
nor do they realize that the special offers outlined in the company’s emails, which go to about 12
million registered customers, promote products unique to the website. Another problem is that
products on the website don’t readily turn up shoppers’ search engine results because of the way
website’s pages are named, a condition Costco hopes to improve via the technical process of search
engine optimization. The website also isn’t as user-friendly as it could be, say critics, with “rookie
mistakes” like visual clutter and poorly labeled photographs. One search engine consultant said
the company’s online division is “undoubtedly leaving some sales on the table.”
67
1. How can Costco.com better inform its online customers of the product variety available
and the real value of its special offers?
ANSWER:
Costco should redesign its website and utilize the search engine to its advantage. This
would allow Costco’s online services to be more user friendly to consumers. The catchy
contents displayed on the webpages would make it more appealing and unique to the
service provided to its viewers. I also feel the use of social media could be a vital role in
marketing to the public.
2. What priority do you think Costco should put on expanding its online business abroad?
Is this more or less important than improving sales from the existing e-commerce
operations in the United States and Canada? Explain your reasoning.
ANSWER:
I feel this is entirely dependent on the vision and outlook of Costco. They should optimize
on the expansion of its customers, since this is a private club, consumers have to buy into
a membership to be able to shop there. I also think there is competition between them and
Sam’s Club, although I think Sam’s Club has more of a competitive advantage over Costco.
VIDEO CASE 10.2 Page
68
GAGA SHERBETTER: COMING TO A MARKET

NEAR YOU
Everyone likes ice cream—or sherbet. But suppose you could have the best of both, in one cup or
cone? And what if you could buy your favorite treat at your local market? Jim King, founder and
CEO of GaGa, is doing his best to see that your frozen dessert wishes come true. Nearly 10 years
ago, King—a former TV news anchor—began experimenting with his grandmother GaGa’s recipe
for lemon sherbet. He made a few batches and peddled them to retailers in his home state of Rhode
Island before stopping in at Munroe Dairy, a home-delivery dairy farm. The owner ordered 500
pints on the spot—and GaGa was in business. Suddenly, King and his wife Michelle had to figure
out how to make and store a large batch of the “SherBetter”—Jim’s name for the product, which
he described as “sherbet but better.” Eventually, he purchased a batch freezer for $2,800 at an IRS
auction.
Once the Munroe Dairy order was filled, the Kings had to decide where and how to sell their
product—directly to consumers, via wholesalers, or to retailers. Early on, they tried selling through
an ice cream company. “We sold zero,” recalls Michelle. Consumers would have to pay about
$100 for a six-pint order instead of $4.99 for a pint at the grocery market, because the cost of
shipping was astronomical— the SherBetter had to be shipped overnight in a heavy box with dry
ice. The television shopping networks HSN and QVC also invited the Kings to sell their product
on television; as a former news anchor, Jim would be a natural on camera. But the Kings
declined— again because of the high cost of shipping directly to consumers.
Jim also researched the possibility of becoming a retailer himself—opening his scoop shop. But
he quickly realized that the business model just wouldn’t work for his company. Successful scoop
shops must be located near a beach, lake, or other recreational area, and have no other direct
competitors nearby. Furthermore, in New England, ice cream shops are mostly seasonal. Jim also
determined that the projected expense of purchasing and maintaining a building and property was
too high for GaGa. In addition, ice cream shops generally offer a wide variety of products,
including ice cream, sherbet, frozen yogurt, diabetic-friendly and dairy-free frozen desserts,
smoothies, shakes, and more. GaGa just had SherBetter—albeit in a growing array of flavors.
So the Kings decided that retailers would be the best outlet for their product. “Basically, we’re a
marketing agency,” Jim comments. Jim works with a broker who arranges for Jim and Michelle to
meet with retailers and demonstrate GaGa SherBetter at their stores, giving out free samples and
promoting the product. If the retailers and their customers like the product, it is added to the
grocery shelves. The smaller or specialty markets such as Whole Foods generally stock GaGa,
because the Kings can’t afford the huge slotting allowances charged by larger supermarkets. Jim
explains that a slotting fee in the frozen section of a large supermarket chain could run as much as
$35,000 to $40,000 just to place one product on the shelf at 600 to 800 stores. Jim notes that Whole
Foods, which doesn’t require a slotting allowance, may initially ask for free products to see if they
will sell. “That’s affordable,” acknowledges Jim. “We can make that back pretty quickly.” Not
only is the cost of putting a product on the shelves of a large supermarket chain prohibitive, those
customers aren’t necessarily the consumers who would buy GaGa anyway. “Because we are a
super-premium product and perceived as expensive, we don’t sell well” in those stores, Michelle
points out. “People who go into a market like that are looking for a deal.” So they’ve decided to
target the specialty markets, because that’s where their true customers shop.
Looking to the future, Jim believes that ultimately GaGa could become an umbrella brand for a Page
wider range of products, by building out the current line of SherBetter products and eventually
adding new categories. He also wants to make a second stab at the wholesale food service channel, 69
since the first attempt didn’t work out. He tried to make a push into food wholesaler Sysco but was
unsuccessful—largely because the price of GaGa was double that of Sysco’s price for super-
premium ice cream. “Restaurants are more concerned about price,” says Jim. He’s now searching
for a wholesale outlet connected with a nationwide restaurant chain that would agree to put GaGa
dessert on the menu.
For now, Jim remains focused on the job at hand—getting GaGa into the stores. “We’ve got this
great name,” he remarks. “We’ve got this great product.”
QUESTIONS FOR CRITICAL THINKING

1. Experience has taught the Kings that smaller, specialty markets are the strongest retail
outlets for their GaGa SherBetter. Under what conditions might they begin to make a
successful move into the larger supermarket chains?
ANSWER:
It makes since they are still small to stay with the most cost effective for them. Moving
into a larger market now before they are big enough and are making enough could be deadly
for them. They need to wait until they outgrow the stores they are in now. Once they are
large enough, make enough sales also ensure there is a good market for them then the move
into larger supermarkets would be a smart one. Once they outgrow the smaller stores that
will be a good way to show they are ready to move forward.
2. How might the right wholesaler ultimately create marketing utility for GaGa?
ANSWER:
The most ideal approach for GaGa is to have an effective partnership with a wholesaler is
to guarantee that they picked the one that can offer the most assistance with getting to
shelves as fast as could reasonably be expected. Have a Guarantee that the wholesaler they
pick is offering to their precise target market and realize that they are effective at offering
items to their objective business sector.
They should Get some information about volume rebates, return arrangements, and request
handling time. Before they sign any agreement, be prepared to arrange estimating terms,
least request amounts, conveyance plans, and so forth. Add these agreements to the terms,
and think about having as a lawyer survey it before marking. Gaga should also request
references and do their own particular examination of wholesalers before deciding on the
one they are going to work with.
Page
70
CHAPTER 11
Integrated Marketing
Communication,
Advertising, and Public
Relations
CASE 11.1 Page
71
THE RICHARDS GROUP: A UNIQUE

ADVERTISING AGENCY
The popular image of an advertising agency is of vibrantly creative place without much corporate
structure, where copywriters, artists, and executives enjoy free rein, an anything-goes culture, and
freedom to come and go at will. That picture usually doesn’t include a list of rules employees must
follow, such as punching a time clock, logging work time in precise 15-minute intervals, paying a
fine tardiness, getting closed out of meetings if late, and going home at precisely 6 PM. But those
are some strictly enforced practices at the Richards Group, a successful independent 36-year-old
Dallas agency recently named one of Advertising Age’s Best Places to Work.
If the rules sound repressive, Stan Richards, the company’s 78-year-old founder, will admit
they aren’t for everybody. One of his former writers says, “The genius of the place is completely
counterintuitive.” But that genius had produced a steady stream of memorable campaigns for
clients like Chick-fil-A, Motel 6, and Corona beer, and it has kept more than two dozen creative
group heads on board with Richards for an average tenure of 17 years.
Life at the agency isn’t all about the rules, either. Richards learned early in his advertising
design education at New York’s Pratt Institute that creativity can come from any source, but that
expressing it requires meticulous hard work and tolerates few shortcuts. Since founding the
agency, he has relaxed a few rules, however, like the dress code, and he no longer personally
approves every piece of work, although he still encourages face time with colleagues and clients
over emails. And there are perks-though fancy titles aren’t among them. In fact, there are no titles;
instead every employee is expected to be “a leader in every situation.” Those who have the longest
tenure get the best parking spots and the desks nearest the windows, but any of Richards’ 650
employees can take the company’s private plane to client meetings. And after 20 years with the
company, they can take their families on a free trip anywhere in the world, even as far away as the
Galapagos Islands.
72
1. Stan Richards believes that “the way you treat your people is exactly how they treat
clients.” Do you agree or disagree? Explain your reasoning.
ANSWER:
It must be agreed with the thought of “SR” because people of advertising agency need a
comfortable work environment which could enable them to study the market better and
implement innovative thoughts in creating, planning and handling of advertisements for
the clients. Thus, the way you treat the people of agency reflects on the way they treat and
respond to the clients and their requirements.
2. Evaluate Richards’s belief that creativity requires hard work. Do you think this is true?
Does it apply only to marketing and advertising? Why or why not?
ANSWER:
There is no recipe for creativity but there are guidelines, in the widest sense of the word,
which might help nurture inspiration and ideas.
The advertising industry is obsessed with trying to define the elements that make up a
creative genius but developments, advances and breakthroughs will not come by donning
a uniform of creativity.
This is the view of Turner Prize-winning artist and ceramicist Grayson Perry. His advice
about bringing creative thought to fruition delivered at Adweek Europe challenges, as one
might expect, received wisdoms about the creative process.
Don't try to be original
It is easy to be misled into thinking there is some kind of pure originality. Every piece of
work is inspired by something already in existence and Grayson says: "Don't be
embarrassed about borrowing stuff". Within this process fortuitous errors can occur that
are transformative. Perry stresses: "The process of culture is to copy stuff and get it
wrong."
Play seriously
What you might consider doodles, sketches and daydreaming may eventually become
components in an important idea. Treat all your thoughts and ideas as important and "take
all your musings seriously", urges Grayson. He points to the 'secular church' on which
he collaborated with Living Architecture as a project that started off as one of his aimless
doodles.
Be specific
There may be a rush to develop a global culture but creators should not be afraid of being
specific and local to find their own voice. Grayson takes aim at youth culture for now
having a homogenous look across the planet and says: "Don't worry about being global.
There's nothing worse than a desperate attempt to be universally applauded."
Put in the hours
Working up inspiration into valuable and useful ideas is hard work. Disciplines learnt when Page
young or early in one's career can be very helpful in developing the stamina and attention
to detail necessary for powerful execution. For Grayson that came from assembling 73
detailed model aircraft kits when a youth.
Be vulnerable and know yourself
Learn your temperament and 'own and use' those aspects of yourself that you might
consider negative, for instance a sense of anger, encourages Grayson. Trying to cling to
certainties will trip anyone up looking for breakthroughs so do not be rigid in outlook but
be receptive to 'happy accidents', he adds.
Of course, anyone's rules are made to be broken - these are just Grayson's principles - but
they all contain a grain of insight. When combined with the insights of Head of Design
Patrick Collister, it becomes evident that a culture of creativity can be nourished that can
walk hand-in-hand with commercial projects.
He says that there are techniques to help people have ideas and see new connections.
"That's what an idea is - a new connection that did not exist before." He cites Nest as "a
pretty bloody big idea".
Collister believes that the whole creative process in advertising is driven by conflict.
Creative people are competitive by nature and there is no more competitive environment
than full-blooded business, "which is a battle to the death".
He also says there is a healthy tension between the briefing teams who deal in abstracts,
and creative teams that need concrete facts to get to work. Asking for "fun"• in an ad is
not going to cut it as one person's idea of fun differs greatly from another's.
Head of Marketing, Nishma Robb, agrees: "Creativity is the lifeblood of innovation — and
technology can be the great enabler. Harnessing the power of both means we can make
great strides forward in coming up with ideas that can benefit communities and build
businesses."
Innovation and creativity in marketing communications are highly prized but the value of
inspiration from elsewhere and subverting the familiar should not be discounted.
Parodies of traditional ads, for example, particularly played out in the more experimental
YouTube arena, often captivate consumers. Equally, Grayson's plea to 'Play Seriously'
speaks to the trend for iteration, testing and continuous improvement. Digital is a rarefied
atmosphere where failing fast and fixing quickly are both economically viable and
desirable.
The idea that people should be 'allowed to fail' still holds true and leads to the big jumps in
innovation.
74
PEPE’S PIZZERIA DELIVERS EVERY DAY
If you’re a pizza lover, you’d say that a sizzling hot, fresh pizza sells itself. If you happen to live
in southern New England—and be a pizza lover—you’d probably say that everyone knows about
Pepe’s Pizzeria But Ken Berry, CEO of Pepe’s, understands the importance of spreading the word
about his company’s pizza, even though it’s practically got a cult following. Founded by Frank
Pepe in New Haven, Connecticut, pizzeria employees still hand-toss every single pizza. “Our pizza
really has a heritage,” observes Berry. “It goes back 87 years, virtually unchanged during those 87
years.” He notes that the company has added refrigerators and air-conditioning, but that’s about
all. When diners visit the restaurant, they enjoy the sights, sounds, smells, and flavors of this
heritage. “It’s a way for people to step back in time,” Berry says. The pizza dough is still made
fresh daily, and the ingredients come from many of the same sources they did decades ago.
Pepe’s has built a loyal following through the years. “People have adopted Pepe’s as their own
through generations,” notes Berry. This word-of-mouth advertising is impossible to buy or
replicate, and it helps strengthen the brand. It also represents a challenge, in that these loyal
customers arrive at the restaurant with high expectations. If they bring friends or family, they
expect those guests to be served a top-notch meal, much as if they were entertaining in their own
home. “If you don’t deliver on your promise, they’ll let you know right away,” warns Berry.
When Pepe’s co-owners decided to expand from its initial location several years ago, their strategy
included replicating every aspect of the Pepe’s dining experience—right down to the furniture and
uniforms of the wait staff. They wanted customers to walk into the new location in Fairfield,
Connecticut, and feel right at home. They didn’t anticipate a backlash—a small core of regular
New Haven customers who objected to the expansion of their beloved Pepe’s. These customers
staged a protest outside the new restaurant as it opened to the public. But publicity surrounding
the opening of a new Pepe’s swelled beyond the protestors—and 200 people showed up to wait in
line for their own piece of Pepe’s pie. If anything, the buzz surrounding the protest likely attracted
more customers to the new location.
Pepe’s approach to advertising is pretty straightforward. The pizza sells itself—one bite, and pizza
lovers are hooked. So the main objective is to make consumers aware of the restaurant, which now
has several locations in the tristate area surrounding New York City. As the Fairfield restaurant
neared its opening date, Pepe’s alerted current customers with a simple message printed on top of
each pizza box (coincidentally, many of Pepe’s regular New Haven diners actually lived in
Fairfield). The company also published press releases and advertised the grand opening of the new
restaurant. Billboards along the interstate highway proved to be effective with travelers, as did
some direct-mail efforts. Pepe’s recently ventured into social media with a Facebook page and
Twitter account, which Berry refers to as “the new word of mouth.” Pepe’s posts photos, blurbs
about menu items, and relives a few proud moments on Facebook. Customers comment about their
favorite pizza flavors (such as spinach and gorgonzola), and share experiences (like driving 50
miles each way for a Pepe’s pizza). Berry notes that Pepe’s presence in social media keeps the
relationships with customers going.
Educating consumers about Pepe’s is the second advertising objective. With such a tasty product, Page
what better way to attract new customers than to let them discover that the proof really is in the
pie? Now when Pepe’s launches a new restaurant, they give away free pizza for about a week 75
before the grand opening. That’s right: free pizza, for a week. Ken Berry explains that this
promotion serves three purposes: It trains the new employees, tests the new ovens, and introduces
Pepe’s pizza to new customers. The giveaway generates plenty of good buzz about Pepe’s pizzas
and makes an important statement to the public: Pepe’s is so confident about the quality of its food
that they’re willing to give it away for a week— certain that consumers will become regular
customers.
Pepe’s also enjoys positive public relations surrounding its charitable giving. The company
website has a tab allowing customers to request donations for their particular charities, and the
restaurant conducts regular “Good Neighbors Nights,” from which it donates 15 percent of its
proceeds to a designated not-for-profit group. All of these efforts roll together into cohesive
marketing communications with one major goal. “Our challenge is to build our brand and protect
it,” says Berry, “and to make sure we deliver every day.”
76
1. Describe how the Pepe’s pizza giveaway promotion relates to each step in the AIDA
concept.
ANSWER:
AIDA is acronym for attention, interest, desire and action which are the different stages of
purchase-decision making process of a consumer. At first the consumer has to know of the
product launched by a company. It is a very basic elementary requirement for a company
to make the consumer aware of the product otherwise there is no question of sale taking
place.
Then the company needs to generate interest in consumer, about the product, which would
drive the consumer to buy the same. Now, once the consumer is made fully aware of the
product and he develops an interest in the product, a desire to own that product kicks in
him which will lead him to take the action of owning that brand.
Now, the company would use different promotional tools in this AIDA process of
consumer. Advertising can be considered as the best tool for making consumer aware of
the existence of a product which can effectively meet his needs. Personal selling by way of
effective communication and demonstration can create an interest and desire in consumer
to buy that product.
The company then makes the price of the product attractive by giving some discounts or
freebies. Finally, this makes the consumer to take the ultimate decision in buying the
product.
2. How might Pepe’s use guerilla marketing to promote its brand among college students?
ANSWER:
Before answering the question I would like to elaborate the meaning of Guerilla Marketing
Guerrilla marketing is an advertisement strategy to promote products or services on the
streets or other public places with little money. This involves getting the attention of the
public. Guerrilla marketing is done in public places such as shopping centers, parks or
beaches to attract a big audience.
I would site some ideas on how Pepe’s promotes in brand using guerilla marketing among
college students.
1) Flyers or sticky notes in classroom and handed out by attractive women.

2) Video Contest of students doing stunts before class starts to promote your brand
3) Invite a friend to get free or discounted sessions.
4) Photo Contest of customers and share on facebook to get their friends to like the
page.
5) Post on similar pages, share for share, with similar facebook fan pages of target Page
demographic
77
6) Student Ambassador program to chalk sidewalks, spread rumors, hang outside
classrooms, library and student union.
7) Promote through greek life fraternity and sorority systems and offer an affiliate
program to help their fundraising efforts.
8) Ask popular athletes to spread message - can't incentivize due to NCAA rules and
regulations
9) Ask Student Government Officials to spread the message.
10) Integrate with Entrepreneurial clubs on campus and career center to promote
affiliate marketing campaign. If every college student spreads the message and
pushes the voice of the brand on their friends it will give incredible street
credibility.
11) Link to fan page in email address and on every promotional item given to students.
12) Give out free pencils with brand and facebook fan page on test days. Once they fail,
they'll seek help.
13) Get Thespian club on campus to do crazy stunts on campus outside of classrooms
and student unions during busy times. Zipcar did this on popular street corners long
ago to get big. Also, get students to do video contests to do the same thing and post
it on a fan page.
14) Partner with local college businesses / bars to promote brand - JV deals.
15) Facebook sweepstakes contest for free giveaway in order to create viral loop - use
3rd party app that allows us to get friends of friends to enter the contest and join
the fan page.
16) JV with college brand to do a giveaway gift certificate in exchange for free PR from
their brand.
17) Create community groups on campus that love and promote the brand, i.e 1000 true
fans. Allow those community groups to invite their friends onto the fan page
community and crowd source creativity from them. Students at Washington St. may
have different traditions than students from Alabama and thus we could tap into
those traditions.
18) Develop an affiliate campaign with affiliate networks, not sure how to promote it
within the networks though. Share a sale and CJ. Get some solo ads on wf IM
newsletters to promote the affiliate program, get warriors to promote the program.
Get college students to drop links in their newsfeeds.
Page
78
CHAPTER 12
Personal Selling and

Sales Promotion
CASE 12.1 Page
79
SELLING A TENNIS STAR’S IMAGE
Since becoming a national tennis star at an early age, Serbian player Novak Djokovic has
transformed, himself as a way to achieve even higher goals. He recently changed his diet and
fitness routine, as well as his serve, in order to become one of the top-seeded male players in the
world. He also changed his publicist.
Djokovic’s eye is not only on counting to win the world’s top tennis tournaments, such as
the U.S. Open and Wimbledon. Only 25 years of age, he also hopes to become one of sports’ top
personalities, with profitable product endorsements like those enjoyed by his on-court rivals Rafael
Nadal and Roger Federer. Djokovic may be closing in on that ambitious goal; he recently placed
9th on the list of “Power 100” sports figures compiled by CSE, an Atlanta-based sports and
marketing firm. Nadal and Federer were ranked 5th and 6th respectively, while Eli Manning, the
year’s Super Bowl-winning quarterback, placed 15th. Fame is fleeting, however; cyclist Lance
Armstrong placed 8th one year and retired from cycling the next, falling off the list entirely.
But despite a string of victories that followed the best start of his career, appearances on
The Tonight Show and other talk shows, and a new five-year endorsement contract with a Japanese
apparel maker, Djokovic, whose chief marketing strategist is his uncle, has until recently been
better known abroad than in the United States. The young athlete’s quirky personality (he
specializes in comic imitations of fellow tennis pros) has won him U.S. fans, and those who are
aware of his name have positive associations with it. Winning will continue to be an important
step forward, in his professional career and for his name recognition, and he recently won 57 of
59 matches as well as 9 tournaments in the space of a few months. But Djokovic may still have a
way to go before eh reaches his ultimate goal-a possible second career in Hollywood.
If he doesn’t continue to advance his off-court goals, however there could be one other
marketing avenue open to him. “What he has done get in shape, “says former tennis great Jimmy
Connors, “he should bottle that and sell it.”
80
1. Explore the internet to find out the extent of Djokovic’s online presence. How do you
think he might improve it promote himself?
ANSWER:
Online presence of NDJ:
NDJ is a world famous tennis player. He would like to promote himself and form a promoting
team. He is available in social media, personal blog, NDJ foundation website, his official
website, and some pages in famous websites.
2. What else can Djokovic and his marketing team do to increase his name recognition in
the United States?
ANSWER:
Required improvement in his online presence to promote himself:
• Through social media, create awareness against some important public issues
• Frequently post personal details in social media and should reply to fans
• Provide his daily diet and exercise methods in his official website
• Provide online game in his website and attract youngsters to visit website and create
interest on tennis
81
HUBWAYS ROLLSOUT PARTNERS AND

PROMOTIONS
Commuting by subway, bus, train, or car can be expensive and inconvenient for workers trying to
navigate around a city or its suburbs. Burning all that fossil fuel (or battery power) isn’t the
greenest way to travel, either. While it’s true that these modes of transportation sometimes are the
most time-efficient (and the safest way to move during bad weather), there’s another method to
consider for short hops and busy city streets: bicycle riding. Hubway is a bike-sharing system
based in New England that was conceived by its founders as a regional network tying together
Boston, Cambridge, Brookline, and the surrounding communities. Hubway serves a greater
purpose than just renting bikes to consumers. “It’s not just about bikes,” observes general manager
Scott Mullen. “This is just another piece of the transit puzzle.” The Hubway system harbors the
flexibility to fill gaps left open by public transit. For example, suppose you catch a subway that
deposits you four blocks from your workplace. Instead of walking, if you’re a Hubway member,
you can swipe your card at a designated bike station, grab a bike, and ride straight to your job.
Launching and running a bike-share system requires partners (Alta Bicycle Share and New
Balance are Hubway’s main partners). It also requires support from corporate members. Brogan
Graham, who holds the official title of hypemaster at Hubway, is responsible for corporate sales—
convincing other companies to create corporate accounts through which their employees may join
the Hubway system. Corporations have the option to join at several levels, depending on whether
they want to contribute 100 percent of their employees’ memberships or a certain percentage. Once
a company signs up, a Hubway representative visits the firm to talk with workers about bike
sharing, encourage participation, and point out the benefits of commuting via bicycle as a physical
fitness and green initiative. As a motivator, Hubway provides the business customer with a tally
of rides, calories burned, and CO2 saved. Hubway representatives also work with other business
partners, such as retailers who are willing to offer Hubway members bike helmets at low cost. For
example, instead of paying $50 or $75 for a bike helmet, Hubway members may pick one up for
$7.99 at locations ranging from participating CVS pharmacies to City Sports to several hospital
gift shops. “Marketing is partnerships, communication, working together as a team,” notes
Graham.
Hubway has conducted several consumer-oriented promotions since its launch. At its initial roll-
out, marketers recruited students to dress as Minute Men and colonial soldiers, and sent them out
as the Revolutionary Riders to proclaim the coming of Hubway. After the first year of operation,
Graham and his team calculated the top several men and women Hubway riders (by number of
rides), dubbed them the Gold Club, and went to their homes and workplaces to present them with
gold T-shirts. Other media picked up on these riders and featured them in articles and online
postings. Some promotions involve short-term discounts, such as the recent “Get Hubway for the
Holidays.” Halfway through one December, Hubway slashed the cost of an annual membership to
$60 ($25 savings)— a price good until the end of that month. As Hubway approached the kick-off
of its second year in operation, members were invited to grab a bike and ride to the Boston Public
Library for the festivities where, upon check-in, their use of the bike for the day would be free.
The first 100 riders also received a free burrito from Boloco Burritos. New members could join at
the event for a reduced membership price. Hubway spread the news about the event via Twitter
and Facebook—and people came in droves.
Social media is an important part of the Hubway promotional mix. Hubway uses social media to Page
spread the word about promotions like the Boston Public Library event, sending targeted messages
to consumers, who then become virtual ambassadors for the brand. Graham notes that a single
82
tweet may reach 4,000 people, who not only respond to Hubway, but also strike up conversations
with each other about their riding experiences, including attending special events. Without a big
advertising budget, explains marketing director Mary McLaughlin, Hubway relies on this type of
grassroots marketing. “The one-to-one model is the best way to spread the word,” says
McLaughlin.
83
1. Describe how Hubway can use relationship selling to build partnerships with retailers
and corporations.
ANSWER:
Hubway Rolls Out Partners and Promotions Abstract Hubway has successfully used
relationship selling and specialty advertising to increase awareness of its bike-sharing
system by reaching customers, retailers and corporate partners. AnalysisHubway is a bike-
sharing system established in the Boston metropolitan area. This system was set up for
more than just renting bicycles to customers. This system was set up as part of the bigger
picture that is the transit system. Hubway connects Boston, Cambridge, Brookline and
other surrounding communities by filling the gaps of the transit system. In addition to
providing transportation where mainstream public transportation doesn’t go, Hubway also
encourages a healthy lifestyle through physical activity while also being environmentally
friendly because less pollution and emissions are released in the air. Starting this company
required a sizeable investment at the beginning to purchase all of the bicycles needed as
well as setting up the Hubway stations throughout the city. In order to do this, Hubway
established relationships with both partners such as Alta Bicycle Share and New Balance
as well as corporate members in the community. The relationship that Hubway is looking
to establish with corporate members includes offering different levels of membership
where the corporation can either provide memberships to its employees free of charge or
offer to pay just a percentage.
2. How might Hubway create sales promotions using specialty advertising?

ANSWER:
They will surely look at many other items and they will surely look at many other items
and potentially purchase some if not at the same time, they may come back later. Likewise,
the retailer will also suggest to its customers that they become members of Hubway.
Michele Simmons BSAD 2630 – Fall 2015 Assignment 15Hubway system uses
relationship selling to retain their partnership with the large corporations and the retailers.
Brogan Graham, hypemaster at Hubway says, “Marketing is partnerships, communication,
working together as a team” (Kurtz & Boone, 2014). This is the essence of what
relationship selling is all about. In addition to building relationships, Hubway also uses
sales promotion to reach customers and also build relationships with them. After the system
had been in place fora year, Hubway determined who some of the top riders were and
presented each rider with a gold T-shirt and announcement that they were now a part of the
Gold Club. These T-shirts had Hubway’s logo on them so they were not only a “prize” for
these riders they were also a form of advertising for Hubway. This type of advertising by
using items with the company logo is known as specialty advertising. Specialty advertising
is defined by BusinessDictionary.com as “relatively permanent promotional message
printed on small, handy items such as bags, calendars, cups, diaries, etc., given away as
gifts to serve as reminders” (BusinessDictionary.com).Some ideas for specialty advertising
that Hubway could incorporate into their marketing are reusable grocery bags with their
name on it. Since Hubway promotes green travel using a bicycle, a reusable grocery bag
which encourages reuse of the bag rather than plastic bags would not only advertise about
the transit system, it also coincides with their environmental philosophy. Another item
Hubway could give away.

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LICEO DE CAGAYAN UNIVERSITY

Rodolfo N. Pelaez Boulevard, Kauswagan

CASE TITLE Page

VIDEO CASE 1.2: Geoffrey B. Small Is Big on Quality Customers, Community 4

CASE 2.1: Panera’s Pay-What-You-Can-Cafés 8

VIDEO CASE 2.2: Zapos Employees do more than sell shoes 10

CASE 3.1: Pepsi-Cola gets a boost from healthier beverages 14

VIDEO CASE 3.2: Ski Butternut offers thrills-not spills 16

CASE 4.1: Samsung and the gamification of marketing research 22

VIDEO CASE 5.2: Nederlander targets theatergoers everywhere 34

CASE 6.1: United and Continental merge their services 39

VIDEO CASE 6.2: Boltbus gives bus travel a jump start 42

CASE 7.1: Scorebig: Name your price for live events 46

CASE 8.1: Who needs the U.S. penny? 53

VIDEO CASE 8.2: Boltbus: Ride for the right place 55

CASE 9.1: Natural disasters disrupt the global supply chain 59

VIDEO CASE 9.2: Geoffrey B. Small keeps marketing channels tight 61

CASE 10.1: Costco play catch-up in online sales 66

VIDEO CASE 10.2: Gaga Sherbetter: Coming to a market near you 68

CASE 11.1: THE RICHARDS GROUP: A UNIQUE ADVERTISING AGENCY 71

VIDEO CASE 11.2: Pepe’s pizzeria delivers every day 74

CASE 12.1: SELLING A TENNIS STAR’S IMAGE 79

Marketing: The Art

OREOS TURN 100 YEARS YOUNG

Geoffrey B. Small Is Big on Quality Customers,

2. Geoffrey B. Small is an avant-garde designer and unconventional businessperson. What

ZAPOS EMPLOYEES DO MORE THAN SELL

PEPSI-COLA GETS A BOOST FROM HEALTHIER

VIDEO CASE 3.2 Page

SKI BUTTERNUT OFFERS THRILLS-NOT SPILLS

A number of factors influence consumer’s decision to try Butternut, ranging from

Five steps of consumer-decision making process

4. Evaluation of alternatives and products

SAMSUNG AND THE GAMIFICATION OF

GAGA SHERBETTER FORECASTS HOT SALES,

History of marketing research:

CRUISE COMPANIES LEARN HOW TO CATER

QUESTIONS FOR CRITICAL THINKING Page

NEDERLANDER TARGETS THEATHERGOERS

Product and Service

UNITED AND CONTINENTAL MERGE THEIR

• Ensure responsiveness to customer complaints 41

BOLTBUS GIVES BUS TRAVEL A JUMP START

SCOREBIG: NAME YOUR PRICE FOR LIVE

QUESTIONS FOR CRITICAL THINKING Page

VIDEO CASE 7.2 Page

Various factors which affect the elasticity of demand of a commodity are:

WHO NEEDS THE U.S. PENNY?

QUESTIONS FOR CRITICAL THINKING Page

VIDEO CASE 8.2 Page

BOLTBUS: RIDE FOR THE RIGHT PLACE

CASE 9.1 Page

NATURAL DISASTERS DISRUPT THE GLOBAL

QUESTIONS FOR CRITICAL THINKING Page

VIDEO CASE 9.2 Page

GEOFFREY B. SMALL KEEPS MARKETING

1. Start by creating a shared Vision & Mission

3. Identify and utilize the strengths of each partner

4. Support the partnership's limitations

6. Handle disagreements, disappointments and frustrations early.

7. Define job roles for each partner, including accountability 7

CASE 10.1 Page

COSTCO PLAYS CATCH-UP IN ONLINE SALES