Hitwise Tour

Top Five Observations

1. Hugely appreciated having the option to turn audio on or off before the tour began!!
2. I'm a bit unclear from the graphics and sample menu what Hitwise is expecting me to do on or get out of the tour--is there a linear process involved? Do they want me to just explore? What should I be doing in their opinion?
3. The concept of determining numbers on google or yahoo searches is appealing, but again I'm not sure what exact data set I would be gathering by using hitwise.
4. Overall, for my eyes, there's too much visual stimulation on the tour to drive product usage (the product being Hitwise itself)
5. I'm intrigued by the product, but I wouldn't send the demo to a friend as suggested at the end!

Lyris Site

Lyris Top Five Observations --I'm commenting on the site in general as I did not find the movies in the page that came up.

1. Words like "deliverability" seem so instantly silly that I was in danger of missing the serviceable message of the "deliverability tools" link: technology that helps get more emails into the inbox with fewer spam results.
2. Even though client testimonials could be non-representative of general client interactions or even fabricated, I tend to be impressed by them and like reading them.
3. The customer profiles section is very innovative--an improvement on the general customer feedback section.
4. If a business were really to engage with some of these search marketing processes, it could create a full-time staff position!
5. Lyris is making use of Twitter, Facebook and Linked In.

Chapter 19: 4.1

The Hard Rock could be gathering customer data based on link clicks on the site--meaning tracking what pages are visited on the site and in what order, how much time is spent per page, etc.

It's possible that searches on the site are also tracked, storing what words are typed in the search. Entries into the online sweepstakes may also be tracked.

The various membership types would definitely be used to gather customer data, as would the contact form.

Chapter 19: 1.1

The CRM (Customer Relationship Management) Process works in a cyclical fashion between the following elements:

1. Identify customer relationships--learning who/where the customers are, their product usage, etc.
2. understand interactions with current customer base--collecting data on customer interactions with the company including purchases and store visits, returns, etc.
3. capture customer data based on interactions--the above data set is sorted for useful information such as online coupons redeemed, date of last purchase, etc.
4. store and integrate data based on information technology--data such as questionnaires is used to get to know customer and leads to the next step of identifying profitable customers
5. identify best customers
6. leverage customer information--getting the right info to the right person at the right time.

Chapter 18: 5.1

During a recession, one could gain or maintain market share by the following means:

1. Value-based pricing will stimulate desire in the customer who has savings on the mind: offering specials, sliding scale rates, or rebates would be especially appealing. Reminding the customer that s/he is getting a lot of value for the money is important during a recession when customers can take offense at being asked to pay higher rates--or may simply not have the funds available.
2. Bundling will also stimulate purchasing by offering more items for the same price or for a lesser price per item. For example, I recently purchased a tooth kit that contained toothpaste and several related products bundled at the same price as a competitor whose toothpaste alone cost the same amount.
3. Unbundling can help a customer purchase only wanted items at a lower price--in the above example, if I had been charged per item for the tooth kit above, I would actually have been appreciative of the ability to unbundle the package and select only the items I most needed.

Chapter 18: 3.5

The information age is changing the nature of pricing in several ways.

1. It's easier for consumers to compare prices using electronic/web-based informational searches, making consumer knowledge of price and market more substantive

2. It's also much more possible for consumers to obtain product from non-local suppliers via similar channels, making pricing competition much broader

3. Suppliers can benefit from pricing in the information age through such tactics as automatic renewals of subscriptions or memberships such as airport-kiosk web fees--these services might be purchased once by a harried consumer, who failed to read the renewal clause in the terms of agreement. This could allow the supplier to set a very low price for the initial purchase in expectation that the purchase would be automatically and unintentionally repeated.

Chapter 18: 2.1

The seller has three defenses if charged with price discrimination under the Robinson-Patman act:

1. Cost--it's acceptable to charge different prices to different customers if manufacturing or quantity discount savings are involved.

2. Market conditions--price changes that are responses to fluid product or market changes are acceptable (for example goods that will spoil over time, a store-closing sale, etc.).

3. Competition--it's acceptable to adjust prices in response to undercutting from competition.

Chapter 18: 1.1

The missing elements from the marketing manager's assessment are an estimation of demand and costs to produce the product. If demand is low and/or if costs to produce are high relative to market cost, the profit margin will not be substantial.

If, however, the cost to produce is low and demand is high, the marketing manager is correct that charging a low price and anticipating high sales will produce a strong profit margin.

It would also be a good idea to consider strategies/channels for introducing the product to the consumer, and related costs.

Constant Contact

Top Five Observations:

I'm very glad to have this link offered, since my assistant has been encouraging me to use Constant Contact for our promotional emails.

I find websites that offer unsolicited speech/audio extremely off-putting. The sound is usually cranked painfully loud and makes me navigate away from the site. An exception to this would be Prof. Moua's gentle chimes on her business website.

I appreciate the site's assistance in choosing an appropriate template--this visual language speaks highly to me.

I signed up for a free trial and am looking forward to importing contact information and getting started.

I am thrilled that the program will allow me to have clients unsubscribe themselves, since it usually takes me longer than I'd like to get around to this!

Chapter 17: 3.3

Elasticity in demand means that customers are sensitive to changes in price, and that if the price is increased, sales will lower.

Inelasticity in demand means that customers are NOT sensitive to price changes, and that if the price is increased, sales will remain consistent.

It's important for managers to understand this concept so that they know which items in their stock of goods/services can withstand price fluctuation without undergoing sales dips.

Chapter 17: 3.2

A firm can increase revenue by raising price, but only to a point. At a certain point, the market's tolerance for price increase will be saturated and both sales and revenue will start to drop. The target market may at that point also start to explore competitors.

Chapter 17: 3.1

Supply and demand can affect price because low demand and high supply would create lower prices (cf. the current real estate market), and the reverse can also occur: high demand and low supply can drive prices up (cf. Jolly Rancher candies are very cheap per item when sold in high supply in the grocery store but are comparatively costly when sold at recess in a low-supply environment by an enterprising young man I know!).

Fluctuating demand creates unstable prices, for example seasonal items such as school supplies which will be more expensive the week before school starts and cheaper the week after.

Chapter 17: 2.1

Examples of pricing objectives:

1. Profit-oriented pricing can occur when a company retains accurate data on what prices the market can sustain, customer satisfaction, and efficiency. An example of this would be pricing that seeks to gain a return on investment based on a specific asset of the company, cf. a company that spends money to educate an employee whose new degree/increased reputation then brings new clients/money to the firm.

2. Sales-oriented pricing seeks to maximize sales. This can be done with a post-holiday sale to rid the company of merchandise with lesser regard for profit margin per item.

3. Status quo pricing matches competitors' prices. This could happen when a company offers to match any other company's price on a similar item.

Chapter 14: 5.2

Kohler site:

Attention is stimulated through the slick design of the site, which communicates the aesthetic of the brand to clients who would be motivated by Kohler's design concept in kitchen/bath appliances.

Interest is stimulated through learning opportunities such as the "what's new" and "about Kohler" links.

Desire is stimulated by the personalization of the design your own custom kitchen or bathroom link that encourages the client step by step to "dream, plan, choose, share."

Action is stimulated by the "where to buy" and shopping cart links.

Chapter 14: 5.1

AIDA: How phases of customer involvement affect the marketing mix

Attention: the consumer/target market's attention may be gained by television, print, radio, etc. ads that mention and describe the product/service

Interest: is developed through trainings and trials that involve the product and informed sales people who can demo the product

Desire: is stimulated by convincing the consumer that this is the best possible product or sales-related decision, perhaps by offering unique features related to the product

Action: can be induced through price discounts and special offers

Chapter 14: 4.1

A marketing manager might choose to promote through persuasion in order to stimulate a purchase or entice the customer to act, which is critical during times of growth and competition.

Current examples of persuasive promotion:

• Any TV ad saying "act now--this is a limited-time offer"
• QVC displaying how many items of a lot have sold against how many remain (and noting which items have already sold out)
• Early registration discounts for classes with use-by dates

Chapter 14: 3.1

Understanding the target market is essential for the communication process because an organization needs to know the symbols, channels, and language that would be understood and used by the users of its product or service. For example, a jean for teens promoted using spokesperson Bea Arthur talking about their nifty value in Mature magazine would be much less likely to succeed than if promoted using spokesperson Miley Mae Cyrus talking about their killer fit in Teen People.

Chapter 12: 3.1

Likely marketing channel structure for the following products:

• Candy bar: wholesaler channel
• Tupperware: agent/broker channel in the industrial model (if a Tupperware party is involved!)
• Non-fiction book: wholesaler
• New car: agent/broker channel or retailer
• Farmer's market produce: direct channel
• Stereo equipment: retailer

Alternative strategies:

• Candy bar: if sold by a kid making money for school, this would follow the model of the Tupperware party above
• Tupperware: wholesaler, if inexpensive units were distributed in bulk to a retailer direct from the company
• Non-fiction book: if self-published, through a direct channel
• New car: I've heard of newly purchased cars being resold on ebay through a direct channel model!
• Farmer's market produce: some farmer's markets follow the business/industrial model of an industrial distributor
• Stereo equipment: if purchased by a wholesaler and resold on the internet, could follow wholesaler model

Chapter 12: 2.1

Types of marketing channel functions that can be performed over the Internet:

Transactional functions:

• Contacting and promoting--yes, the Internet would be a potential venue for contacting potential customers, promoting products and soliciting orders if the website had forms for orders and contact links. Auto contact/promotions could also be issued through the web.
• Negotiating--not as easy to perform over the Internet, though Internet-based functions like skype and email could be easily used for negotiation.
• Risk-taking--assuming the risk of owning inventory could be performed over the Internet only if Internet-based purchasing were involved, and not for in-person sales.

Logistical functions:

• Physically distributing--transporting and sorting goods could be arranged through the Internet but obviously not physically completed over the Internet, unless the good was a down-loadable Mp3 file, PDF, or something of that nature.
• Storing--physical inventories and storing of goods would not be doable over the Internet
• Sorting--see storing

Facilitating functions:

• Researching--this would be a natural fit for Internet function
• Financing--credit checks and other financial services could be performed over the Internet and often are

11: Application Exercise 3

Per answer to item 2, it's easier to assess quality of goods--and for that matter, for goods with shorter lifespan. Some examples:

A pair of jeans that might last a season or a couple years would have a quick, comparable assessment modality, simpler even than a car that might last a decade or more and would have to be assessed over time.

Services, because less tangible, are generally harder to assess than products because they are less containable and less sensate-connected.

Similar to a product, though, a service with a shorter lifespan would be easier to assess than a service with a longer lifespan. An interaction with a bank teller that lasted 10 minutes would be easier to assess as good, bad, productive, pleasant, something you would/not desire to repeat, etc., than a college education that lasted 4 years.

11: Application Exercise 2

It's probably easier to assess quality of items (by comparison to other goods especially) that are closer to the product end on the spectrum. The less tangible the item, the easier to assess quality.

11: Application Exercise 1

100% physical good
Jeans
Car
Hair cut
Oil change
Dry cleaning
Education
100% service

11:3.1

I recently had my hair colored and "blown out" in New York in an uptown salon. The following is an assessment of my experience of the five elements of customer satisfaction.

Gap 1. Customer's expectations and management perceptions of those expectations. A NY client would have expected to pay an additional charge for a blow out (oy!) and to tip the shampoo girl separately (two oys!), and NY management would expect the customer to expect these charges. As a MN customer, I expected to have shampoo and blow out included in the color cost and found the additional charges a deterrent to returning.

Gap 2. Management's perception of what the customer wants and specifications for service quality. I was greeted at the salon by a woman who checked my coat and guided me through the salon. This service, I found, fit and addressed a traditional customer desire in an uptown salon. The customer desire drives the existence of this additional employee's job.

Gap 3. Service quality specifications and delivery of service. The colorist did an amazing job of working with a very narrowly specified service process called balliage--with excellent, accurate delivery of service.

Gap 4. Service delivery and what is promised through external communication. I found out later that the additional blow-out charge was accurately advertised on the external website. If I had read the website, I would have had more accurate expectations of pricing of service delivery and what was packaged with each service.

Gap 5. Customer service expectations and perception of service performance. I expected and received outstanding color service.

11: 2.2

The Zagat Guide is a product--it is clearly a tangible good that can be picked up, held, and physically compared to other goods on the bookshelf at B&N or on the page at Amazon. (And interestingly, the Zagat Guide might be more likely ordered at Amazon if it had consumer reviews--funny to me, since it is a book of reviews!)

11: 2.1

The intangibility of services means that, different from the tangible good, service, or idea of a product, a service cannot be clearly physically identified, and cannot be stored or saved.

A bank branch manager might deal with intangibility in that the customer service and reliability associated with bank employees both behind the counter (deposits/withdrawals) and behind the desk (investments/planning) can be extremely important to the consumer but are intangible and thus hard to gather accurate data assessing how well they are functioning and how best they should be functioning.

11: 1.1

The link as printed did not work, but in looking at the www.bls.gov general site, there is significant info on benefits, employment/unemployment, spending and time use, productivity, etc.

Under the tab "Major Economic Indicators," which may help address the question posed by the book. one can find numerous articles on productivity and cost and employment cost, and a far less significant amount of information on export products. This could support the book's information on the service sector being 80% of the GNP.

10: 6.2

Cheerios, in its maturity stage, is promoting off-shoot products under the Cheerios brand (such as Banana Nut Cheerios), segmenting its market (kids, adults, families, new parents), and focusing on health benefits.

10: 5.2

As a kinesthetic learner, I prefer trialability, since I can touch, feel, and directly experience the product to get a sense if I prefer it.

10: 5.1

Products whose adoption rates have been affected by the following:

1. Complexity: digital cameras were slowly adopted in the market because of perceptions of complexity of use and understanding the product.
2. Compatibility: shorts for women are an incompatible product in most of India, where women’s legs are expected to be covered in public.
3. Relative advantage: The electric car, introduced in the 1980s, was at a relative disadvantage because of low speed and high frequency of charging the battery. It never took off. The hybrid, as an ecological alternative to a conventional motor, is at a relative advantage to the electric due to capacity to run at normal highway speeds off regular fuel.
4. Observability: a new brand of skateboard, highly visible to other boarders, is more visible than a new brand of skateboard repair kit, which usually does not travel outside the home.
5. Trialability: a new snackfood that can be passed out to shoppers in the grocery store has high trialability.