Chapter Questions 1- 11

Chapter 1. - Defining Marketing for the New Realities

Marketing Debate. - Does marketing create or satisfy needs?

Starting with the definition of marketing which is to identify and meet human needs, we can
start the debate that marketing does not create the needs, maybe can replace the goods or
services to improve the sales, but not create it. In addition, if this were the case, the sales of
this product or service would only be useful in the short term, because the idea of the need
implanted in the customers can easily be forget. The real need is rooted in the minds of the
customers every day and they need to meet in the short, medium and long term and this
makes that identify and satisfy the need is more profitable over the time that trying to create
it.

Marketing Discussion. – Can the changes in marketing be relate to social forces?

Of course, all changes in marketing have been strongly relate to social forces. Mainly the
globalization and technology, both social forces have made that marketing that was focus on
market niches by regions or cities, has now expanded to a larger scale such as the Latin
American market that includes many countries. Technology has made communication more
efficient but in turn to have greater quality controls since an error in advertising can become
a topic that everyone around the world can realize. Today's marketing is in its highest point,
for example if you need a product or service you can order it yourself through mobile
applications on the other side of the planet and your need be met in that same day. This has
meant that the marketing has to be reinvent every year and not every 10 years as before.

Marketing Excellence. – Google

With a portfolio as diverse as Google, what are the principal value brand of the
company?

In my opinion, the principal value brand of the Google is the availability of having everything
in real time; it is attractive for users to be able to access their mail, applications, files, etc.
from a PC, tablet or smartphone. While for companies to know the analytics in real time, it
has the facility of be able to reaffirm their marketing strategy or to adjust their strategy to
reach the proposed objectives.

What is next for Google?

Google is a company that has set the example for the entire technology industry, since it
was diversifying its product portfolio oriented by its main reason for existing. Being the main
search engine has analytics to identify how to fight Microsoft in the safeguard of information
in the cloud, as well as fight Apple on smartphones. Definitely, Google Labs has done an
excellent job and I am sure that in 2 years Google will have another different product that we
will be delighted.
Chapter 2. - Developing Marketing Strategies and Plans

Marketing Debate. – What are the characteristics of an appropriate mission statement?

A good mission statement can help to the marketing as a guide the vision of the company in
the long term, because it defines the major competitive spheres within which the company
will operate. It causes that in the strategic meetings of the company have visibility if the
mission statement is congruent with the business vision to continue or need to redefine it.

Marketing Discussion. – Marketing Planning

To structure a good marketing plan it is necessary to create a synergy between the market
research process and the exploration of value. Both concepts give rise to the fact that once
the target market has been investigate, it is now necessary to incorporate the information on
how value can be given to the market's need for a product or service to satisfy it. This is just
an example of how Porter's value chain and the holistic marketing model can create synergy
to strengthen the company's marketing plan.

Marketing Excellence. – Intel

What did Intel do so well in those initial marketing campaigns?

In the minds of consumers although they used Intel microprocessors, in reality they did not
know. Because of this, Intel had to redefine its marketing strategy to make consumers aware
that even if they did not physically see the processors, they had the peace of mind that their
computer has strong components since Intel is here to support them. After the marketing of
“Intel Inside” and being able to carry, their marketing in a visible way in the computer
components could remain in the mind of the consumer and thus be able to buy a computer
based on the Intel microprocessor.

Intel lost something by stopping using the slogan "Intel Inside"?

Not necessarily because the objective of creating the slogan "Intel Inside" was to create
awareness among consumers who are using their processors to base their purchases on
having the best processor. By leaving the slogan of "Intel Inside”, they are only redefining
themselves to continue on the road but with a great advantage that they already remain in
the consciousness of the consumers who are using their processors.

Chapter 3. - Collecting Information and Forecasting Demand

Marketing Debate. – Is consumer behavior a function of age or generation?

In my opinion, generational effects predominate over age differences. This is because the
needs that are required to be meet are very different since a 25-year-old person in 1980 is
not comparable to a 25-year-old person in 2019. The generations are different; while in 2019
is a digital era and form a family is getting longer. While the person in 1980 possibly already
formed a family and has not experienced the effect of globalization on products, services
and jobs. For these reasons, companies need to collect information from their consumers
from time to time to forecast their sales and review if their marketing strategy is still valid in
this generation or they need to reconfigure it.
Marketing Discussion. – What brands and products do you think have reached your age
group?

I think that some companies have understood that we are in the digital era and have based
their marketing and sales strategy this way. For example, Amazon, which understood that by
joining consumers with suppliers through a digital application and ensuring through its
logistics department that the product will arrive in good conditions and fast, it dominates a
market that every year is rising.

Marketing Excellence. – Walmart

Did Walmart make the right decision to use "low prices always" as its slogan?

In my opinion, Walmart did well to include as a slogan "always low prices" when precisely
this phrase is how the company was gaining popularity. It gives consumers confidence that
they continue to respect this slogan through the years and in their mind it gives them the
peace of mind of always being able to find what they need at Walmart and at a very good
price.

Walmart is doing very well when the economy takes a bad direction. How can protect
when the economy is rising?

As the text says, in Walmart you can find everything you need but not what you want to
have. For this reason, in complicated times for the economy the company tends to have
good results. What could help Walmart when the economy grows is to incorporate products
that people want to have, so in just one place they can find and buy what they need and
want to have.

Chapter 4 - Conducting Marketing Research

Marketing Debate - What is the Best Type of Marketing Research?

First we need to mention that Qualitative and Quantitative concepts are very important to the
marketing research. Then if we need to choose just one concept, we can say the quantitative
concept is superior to the qualitative, because its techniques imply create content products
valuable to consume.

If we are in different situation as review the perception of certain product or service, then the
qualitative methods are better than the quantitative. When we need to create marketing
campaigns we must focus on the value of the product or service, then a quantitative
methods need be use.

Marketing Discussion - Survey Quality

We need to discuss about the difference between the digital and surveys in person because
the results can be so different just for the reason that when the surveys are digital, the
persons feel anonymous and open itself. But when the surveys are in person, then the
people can tend to lie because anybody wants to demonstrate weakness and then the
results of the surveys can be so different. Our recommendation is a simple online
anonymous survey for an honest results.

Marketing Excellence - IDEO

Why has IDEO been so successful? What is the most difficult challenge it faces in
conducting its research and designing its products?

IDEO is been successful because they focus on the needs and wants of the customer to try
to satisfy it with the best experience. The ideology of the company is that the design ideas
should come from outside (customers) and not from inside (company), which typically the
design companies use the inside method.

The most difficult challenge in research and design its products is to extract the information
of its customer, because sometimes the people do not have a clear idea about what they
need and want to satisfy its necessity. So the company need to focus on the marketing
methods to extract this information, transform and design in a product.

In the end, IDEO creates great solutions for companies that then receive all the credit.
Should IDEO try to create more brand awareness for itself? Why or why not?

A part of the success of IDEO is its anonymous work instead of create more brands, in my
opinion this happen because if IDEO is just focus on the needs of the customer can really
make a difference and change the design process of we knoe about it.

Chapter 5. - Creating long-term loyalty relationships

Marketing Debate.- Privacy is a bigger issue online than offline versus privacy is no
different online than offline?

Always an online transaction imply a risk privacy than offline transaction, therefore when you
will be a use transaction online need to focus on what information is require to complete the
transaction, because you can give a very important personal information that can use for
negative purpose. The companies that depends on online transaction need to focus on how
can transmit a safe feel for its customer to continue with the online operations.

Marketing Discussion. – Choose a business and show how you would go about developing
a quantitative formulation that captures the concept. How would that business change if it
totally embraced the customer equity concept and maximized CLV?

The company Dimex Capital research population in México that can get a credit for product
of the company. To illustrate we need to start with the total population in México and go to
the detail with the economic active population for the payroll credit and the economic not
active people with the personal credit. Then for this segmentation we need to identify just the
government employee that Dimex has contract to give a payroll credit and for the retired
people that is identify in the not active people. Finally the last segmentation is identify for the
government employee who is in Federal, State or Local payroll to have a better understood
for the risk and for the retired people identify the people who receive a pension for each
Federal institution to measure the possible risk.

Marketing Excellence. – Nordstrom

How else can Nordstrom continue to provide exceptional customer service and
increase brand loyalty?

The importance is the customer service, for example in Nordstrom has a webpage where
you can search its products in so many different types in just the same product. You can
apply filters by color, size, fabric, prize, style, etc. and all this filters are useful to find the
exactly product are looking for. Another good customer service is the no question return
policy and without penalty at determine period of time.

What are Nordstrom's greatest risks and who are its biggest competitors?

The Nordstrom company has some competitors as Macy’s and Kohl’s because as the same
as the company this competitors have the option to find on its website the same product with
different filters to personalize the product. Another main factor to care about is the control of
the supply chain to have the ability to manage the personalize products and continue with
this marketing strategy.

Chapter 6 - Analyzing Consumer Markets

Marketing Debate - Is Target Marketing Ever Bad?

An important concept of the marketing is its target market that is so important for the
company that means to segment a specific group of people with the same interest, prefers
and needs that need be satisfy.

Marketing Discussion - Mental Accounts

The concept of mental account is the form that the clients can categorize and evaluate the
financial inputs, this means the clients segregate the funds into specific needs and wants.
Is important to mention that consumers segregate gains, integrate losses, integrate smaller
losses with larger gains, and that consumers tend to segregate small gains from large
losses.

Marketing Excellence - Disney

What does Disney do best to connect with its core consumers?

Disney as a brand has built its success on their ability to create an experience in every
product and service consumers acquire. They have tried various strategies like lowering
prices and expanding their business segments but right now they are connecting with new
technologies that will open possibilities for future generations. Nevertheless the company is
quite old, Walt Disney’s vision has kept a customer-oriented approach that will likely shape
the future of the brand.

What are the risks and benefits of expanding the Disney brand in new ways?

There is a world of possibilities when we talk about expanding Disney brand in new ways
because it has already occurred various times and it can happen again. They have
expanded through various channels and business segments such as: theme parks, movies,
products in different markets as Lego, toys, clothes, and so on. There is always a risk
associated in these type of decisions but with the correct marketing synchronization and
customer oriented approach, they can minimize the risk and convert every expansion to
being successful.

Chapter 7 Connecting with customers

Marketing Debate. - How Different Is Business-to-Business Marketing?

Business-to-business marketing is the conceptualization in the exchange of goods or

services between a business and a company. There are no final consumers involved like
business-to-consumer marketing. B2B marketing has its differences as its commercialization
main drivers are its price and its likely profit it is going to make. As seen above, there are no
emotional triggers involved because it facilitates the purchasing company the right tools in
maintaining their core business with strategic allies.

Marketing Discussion. – How might you apply the consumer behavior topics for
business to-consumer (B-to-C) marketing to business-to-business (B-to-B) settings?
For example, how might non compensatory models of choice work? Mental
accounting?

Consumer behaviour is affected by various factors as expressed in the chapter. These

factors include personalization within its cultural, social and economic borders when
accounting commercialization to a consumer. Nevertheless, when accounting business to
business, these factors must be accounted as a package as these factors must be faced
simultaneously.

Mental accounting states that people such as consumers place their money into mental
buckets based on the income they’re receiving. This way, consumers know in what things
they’re going to be spending what they receive. In the other hand, business to business has
managers and decision makers that base their decision precisely in price and the likelihood
of profit. This mental accounting process does not happen as shareholders want to
maximize their yields.

Non compensatory model and other objective decision making tools try to remove
personalization in these type of decisions in business to business marketing.

Marketing Excellence. – Accenture

What has Accenture done well to target its B-to-B audience?

We identified that Accenture has done 4 things right. One, its effective media strategy with
C-suite executives. Second, its well developed target group audience. Third, innovation with
new industry standards. Fourth, employee empowerment by motivating and involving their
employees.

Has Accenture done the right thing by dropping Tiger Woods as its spokesperson?

It wasn’t a personal opinion as it was based on the company’s policies. They’ve could’ve
made adjustments but with Tiger Woods scandal, it seemed right. Thus, Accenture didn’t
support what happened showing low tolerance for imperfection. The downside is that
Accenture and Tiger Woods relationship felt to the ground. For the company, it was the right
call to do as they have reputation to maintain for their future.

Chapter 8 – Identifying market segments and targets

Marketing Debate- Is Mass Marketing Dead?

Mass marketing as described isn’t dead but it will eventually die. Technology and its
digital age is bringing segmentation as never seen before. It is also important to
mention that the population is dividing into different social, cultural and economic
groups as people advance in life. We can’t sell the same products to grandparents
as to children because they’re needs are completely different. Plus marketing has
been channeling into different communication channels that are not available to all,
from personalized emails to television propaganda. It’s transitioning from analog
propaganda to digital propaganda.

Marketing Discussion- Marketing Segmentation Schemes

I would think of myself in the demographic segment because if you visualize the
segment in the population I am being developed and try to be in my shoes into what I
want or need, you could sell me more easily a product. Nevertheless, contrasting
demographic and behavioral segment schemes one can easily say both are the
same important in marketing a product. I would say the correct balance between
demographic, behavioral and psychological segment schemes will be able to sell me
a product I currently don't need and want.

Marketing Excellence- BMW

Questions

1. What are the pros and cons to BMW’s selective target marketing? What
has the firm done well over the years and where could it improve?

The pros to BMW selective target marketing are:

1. It offers different types of premium cars with lots of variety option taking into
account the style, design, color and price.
 2. Its brand has a strong image in which the consumer feels special using BMW
prestige cars
3. Variety of cars depending on the class

The cons to BMW selective target market are:

1. Its cars are segmented to a small percentage of the society, thus, its
expansion plans are limited as the market size is small

Its evident that the firm has done the last few years as sales and growth demonstrate
it. Also their innovation and new designs in premium cars focused on customers
could improve the performance of the company. They can also increase the brand
with fuel efficiency or better service with its car mileage.

2. BMW’s sales slipped during the worldwide recession in 2008 and 2009. Is its
segmentation strategy too selective? Why or why not?

The worldwide recession during 2008 and 2009 tumbled BMW sales because the
market conditions not the segmentation strategy as stated. The automobile industry
is marked as a sign the economy is doing well. In this case, the economy showed
the car industry that the economy was not fine. BMW’s premium customers were
severely hit on the recession and decided not to acquire this asset.

Chapter 9 – Creating brand equity

Marketing Debate- Are Brand Extensions Good or Bad?

Brand extension are good as they complement the identity of a product or service by
providing a market strategy and strengthening the brand growth. It facilitates the
brand acceptance and the possibility in expanding their influence. The duality is that,
if the product or service is a failure, the whole brand will take the failure.

Marketing Discussion- Brand Equity Models

Brand equity models are oriented to customers needs and wants because they all
provide brand strength, knowledge and respect. They are different in minimal
aspects because at the end of the day, the one who decides if they want to acquire
something marketed is the consumer.Indeed a model can be constructed using all
these aspects, but what's more important at the end of the day is that the offer
convinces us in acquiring it.

Marketing Excellence- McDonald’s

 Questions

1. What are McDonald’s core brand values? Have these changed over the
years?

McDonald’s is a fast growing fast food chain very popular in the United States and
the world. It’s core values stated published in 2013 are:

I. We place the customer experience at the core of all we do

II. We are committed to our people
III. We believe in the McDonald’s System
IV. We operate our business ethically
V. We give back to our communities
VI. We grow our business profitably
VII. We strive continually to improve

They have not changed that much through that years, making their values a
successful base for its successful expansion and growth.

2.- McDonald’s did very well during the recession in the late 2000s. With the
economy turning around for the better, should McDonald’s change its strategy? Why
or why not?

McDonald’s should not change their strategy as they are shining in the fast food
restaurant market. Maintaining its current position will be a tough challenge as
customer tastes are changing by becoming demanding more quality, value, time and
speed in their products and customer service.

3.- What risks do you feel McDonald’s will face going forward?

McDonald’s strives its market by providing a fast service to anxiety customers that
cannot wait to eat. The risks implied in these products is a lack of innovation and
personalization as people are understanding their compulsive behaviour. Another
risk for the fast food chain are the government policies, as their food has little
personalization and many auditors speculate there can be something abnormal in
the food by demanding more transparency in the ingredients and process involved.

Chapter 10 Crafting the Brand Positioning

Marketing Debate. - What Is the Best Way to Position?

The best way to position is through achieving a leader position. But getting in this position,
will be a long way to the top. to achieve this, one should focus its strategy to customer
oriented approach. Nevertheless, customers will never be happy because there will always
be something they do not like.
Marketing Discussion. – What strategies do firms use to try to position themselves on the
basis of pairs of attributes and benefits?

Quality and costs are the basic elements companies use in compiling the strategy in market
positioning. By this, attract consumers interested in the attributed and benefits of the product
or service available.

Marketing Excellence. – Louis Vuitton

How does an exclusive brand such as Louis Vuitton grow and stay fresh while
retaining its cachet?

Louis Vuitton stays fresh because is the brand true nature. They design and produce high
quality products at a high price. The success of the brand is based on its standardized
prices, high quality products from its elaboration, high profile models displaying their
products, high prestige and its high market demographic extension.

Is the counterfeiting of Louis Vuitton always a negative?

Counterfeiting is not viewed negative as it is. It can be viewed as an advantage in expanding

the brand awareness. It is also an indicator of how well the brand is performing in the
market.

Are there any circumstances where it can be seen as having some positive aspects?

The positive aspects in counterfeiting is that it creates a free brand awareness, and it helps
designers develop more clever ideas in selling an attractive genuine product that cannot be
copied. Loyal customers that have enough resources in acquiring this premium product
know when the brand is fake and when a product is legit.

Chapter 11. - Competitive Dynamics

Marketing Debate. – Do Brands Have Finite Lives?

Brands are not eternal, at least in this third dimension we live in. Their growth and expansion
depends on their ability to navigate through the market. They may lose live in the intent, but
at some point their lives will run out if they are not able to feel customer real needs and
wants. If brands lose their mission and vision, their purpose, and are not able to innovate at
the right time, they will eventually die.

Marketing Discussion. – How would you characterize the nature of competition?

Competition creates innovation. Without competition, companies will continue to sell

products or services consumers not necessary need or want. There is a famous saying that
states the sun will give light to everyone where the same applies to business. If done
correctly, the production of wealth will reach everyone.

Marketing Excellence. – Samsung

What are some of Samsung’s greatest competitive strengths?

Samsung’s greatest competitive strengths are its research and development of new
products, their patent portfolio, their innovation and design capabilities, and many more. It is
their marketing strategy that guides them to their sales goals.

Samsung’s goal of $400 billion in sales by 2020 would bring it to the same level as
Walmart. Is this feasible? Why or why not?

Samsung’s goal in reaching $400 billion sales by 2020 is ambitious because it needs to
double its sales in just 3 months, what’s left of 2019. It is not feasible because miracles don't
occur as its shareholders are expecting. Walmart sales are around $500 billion, so they’re
not even close as the textbook estimated when it was written. If they’d had the ability to
match them in sales, yes, they would be on the same level as Walmart.