Video Case Teaching Notes

Video Case Chapter 1 Zappos Running time Intro: 1:44 Problem: 1:25 Solution: 3:1 !
!otal: ":21 Video Summar# These days, online retailers are a dime a dozen. But in a short period of time, Zappos has become a billion dollar retailer. How did it hit the dot-com jackpot? By pro idin! some of the best ser ice a ailable anywhere. Zappos customers are showered with such perks as free shippin! both ways, surprise up!rades to o erni!ht ser ice, a "#$-day return policy, and a call center that is always open. %ustomers are also deli!hted by employees who are empowered to spontaneously hand out rewards based on uni&ue needs. 'ith such attention to customer ser ice, it(s no surprise that Zappos has an almost cult-like followin! of repeat customers. But remainin! committed to the philosophy that the customer is always ri!ht can be challen!in!. This ideo hi!hli!hts some of the dilemmas that can arise from a operatin! within a hi!hly customer-centric strate!y. Zappos also demonstrates the ultimate rewards they recei e from keepin! that commitment. $uestions and %ns&ers ). *escribe Zappos( market offerin!. According to the text, a market offering is some combination of products, services, information, or experiences offered to a market to satisfy a need or want. Students can easily identify the combination of products that Zappos offers that include shoes, clothing, handbags accessories, beauty items, eyewear, sporting goods, and many other categories of retail items. !owever, students should be challenged to identify the rest of the Zappos" package. #his could include$ Services % online shopping, &'(hour customer service, free shipping both ways. )nformation % detailed product descriptions with *+, degree views and video, brand and company information, product reviews and ratings. -xperience % this revolves around the nature of Zappos customer service culture. -very customer can speak directly with a person who treats you like an old friend. #he online interface is easy to use and customi.able. Zappos interacts with customers in a very personal way when customers log(in to the /eb page, through email, and through social media. +. 'hat is Zappos( alue proposition? How does it relate to its market offerin!? 0roviding the best selection and the best service for any category of retail goods. ". How does Zappos build lon!-term customer relationships?
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/hile this video is brief, it gives a nice peak inside of the culture at Zappos. #he company starts by recruiting and training only people that will be truly customer( oriented employees, regardless of their 1ob title. -very employee is trained in Zappos" ten core values. #hrough this, the old clich2 that #he customer is always right is truly believed, practiced, and lived by Zappos employees. #he case study in this video is a perfect example of that. Zappos did not have to honor the error in price for all the customers who purchased the shoes in 3uestion. )n fact, there are few companies that would have. And likely, there are few customers who would have held it against Zappos. Zappos also could have not honored the price, but offered the customer in 3uestion some other bonus 45&, off on the next order, free shoe laces, etc.6 that wouldn"t cost the company so much. 7ut Zappos truly chose to go above and beyond. #o do so when it didn"t have to is the mark of a truly customer(centric company. !ea'hing Ideas The ideo case for Zappos follows a uni&ue format for ideos in the /earson 1ideo 2ibrary that accompany 3rmstron! and 4otler(s 8arketing$ An )ntroduction, ))e. 5t be!ins with an introductory se!ment, followed by a problem se!ment, and ends with a solution se!ment. The intention here is to pro ide fle6ibility and multiple options for usin! the ideo. The followin! are some of the ways that instructors may utilize these three ideo se!ments. ). 5ntroduction only - 5nstructors may choose to use the introduction se!ment alone as a means of hi!hli!htin! the company. 3s a stand-alone ideo, the introduction se!ment supplements material in many of the chapters of the te6t. 3s this ideo pertains to %hapter ), this se!ment could be used to illustrate customer needs, customer e6perience, customer alue, market offerin!, alue proposition, and others. +. /roblem challen!e - The instructor may show the problem se!ment, either with or without the introduction se!ment, and with or without the solution se!ment. This may be done in the interest of time. 5t may also be done strate!ically. 3n ideal way to challen!e students is to re&uire them to de elop possible solutions to the presented problem before they ha e seen the solution se!ment. The instructor then has the option of whether or not to show the solution se!ment. 5n this Zappos ideo, students can assume the challen!e of realistically dealin! with a price markdown that was a mistake and led to a hu!e financial loss. ". 7olution only 8 This may be done to illustrate a specific concept in the chapter. 9ather than takin! the time to perform a problem:solution e6ercise, the solution se!ment may be shown to demonstrate how a company o ercame a specific problem. ;ocus should be !i en to Zappos( actions that are true to its philosophy of buildin! customer relationships. *iscussion should brin! out the tradeoff between sa in! money <e en when a company is le!ally entitled to it= and the benefit of lon!-term loyal customers.
Video Case Chapter 2 ()( Running time Intro: 1:51 Problem: 1:5 Solution: 3: !otal: ":4 Video Summar# >ou mi!ht know ?@? for its well-desi!ned, er!onomic kitchen !ad!ets. But ?@?(s e6pertise at creatin! hand-held tools that look !reat and work well has led it to e6pand into products for bathrooms, !ara!es, offices, babies( rooms, and e en medicine cabinets. 5n the past, this award-winnin! manufacturer has mana!ed to mo e its products into almost e ery home in the Anited 7tates by relyin! on a consistent and in some cases nontraditional marketin! strate!y. But in a hi!hly competiti e and turbulent market, ?@? has focused on e aluatin! and modifyin! its marketin! strate!y in order to !row the brand. This ideo demonstrates how ?@? is usin! strate!ic plannin! to ensure that its marketin! strate!y results in the best marketin! mi6 for the best and most profitable customers. $uestions and %ns&ers ). 'hat is ?@?(s mission? #o create innovative consumer products that make everyday living easier. +. 'hat are some of the market conditions that ha e led ?@? to re-e aluate its marketin! strate!y? At the core of 9:9"s origins is the concept that kitchen and household gadgets were not designed ergonomically with ease(of(use in mind. #his was particular the case for people with dexterity issues 4elderly, people with arthritis, people with disabilities6. ;uring the <=>,s, this population of people was on the rise. )t was also apparent to 9:9"s founders that kitchen and household gadgets were generally very plain, not created with style or home d2cor in mind. ;uring the <=>,s, the trend toward bigger, fancier kitchens was also on the rise. 9:9"s original strategy was to create products that would take the gadget market in new directions as far as appealing to the real needs of real users such as those mentioned above. 7ut it also had to consider at some point that it could not branch out and re(create new products for all the different segments it was targeting 4tots, as well as home d2cor conscious and those with dexterity issues6. )ts si.e as a smaller company as well as its desire to grow combined with those market conditions to create the need to focus on universal design.
". How has ?@? modified its marketin! mi6? 3re these chan!es in line with its mission? 0roduct % ?niversal design is very much a product development concept. 9:9 has focused on making each product 4or the technology in each product6 usable across multiple product categories and customer segments. 0ackaging is also oriented around this as Alex @ee describes how a single product might be packaged in various ways with different 9:9 brands on the label, but the device 1ust says 9:9. 0rice % not discussed in this video. 0lace % 9:9 products are widely distributed through national discount retailers 4#arget, /al(mart6 as well as through specialty stores 4/illiams(Sonoma, Staples, 7abies(A(?s6 in order to reach every customer segment. 0romotion % not discussed in this video. See the 9:9 video for chapter <& on its promotional strategy. !ea'hing Ideas The ideo case for ?@? follows a uni&ue format for ideos in the /earson 1ideo 2ibrary that accompany 3rmstron! and 4otler(s 8arketing$ An )ntroduction, ))e. 5t be!ins with an introductory se!ment, followed by a problem se!ment, and ends with a solution se!ment. The intention here is to pro ide fle6ibility and multiple options for usin! the ideo. The followin! are some of the ways that instructors may utilize these three ideo se!ments. ). 5ntroduction only - 5nstructors may choose to use the introduction se!ment alone as a means of hi!hli!htin! the company. 3s a stand-alone ideo, the introduction se!ment supplements material in many of the chapters of the te6t. ;or chapter two specifically, this se!ment may be used to hi!hli!ht concepts like mission statement, marketin! strate!y, and 7'?T. +. /roblem challen!e - The instructor may show the problem se!ment, either with or without the introduction se!ment, and with or without the solution se!ment. This may be done in the interest of time. 5t may also be done strate!ically. 3n ideal way to challen!e students is to re&uire them to de elop possible solutions to the presented problem before they ha e seen the solution se!ment. The instructor then has the option of whether or not to show the solution se!ment. This se!ment can be used to hi!hli!ht market se!mentation and market tar!etin! as ?@? e6ecuti es discuss the challen!es of continually producin! inno ati e products for multiple se!ments in small markets. ". 7olution only 8 This may be done to illustrate a specific concept in the chapter. 9ather than takin! the time to perform a problem:solution e6ercise, the solution se!ment may be shown to demonstrate how a company o ercame a specific problem. The ?@? ideo is a !reat e6ample of a company that has built a core competency <uni ersal desi!n= around its mission in order to confront the challen!es that it faces.
Video Case Chapter 3 *'oist Running time Intro: 2:15 Problem: 2:1 Solution: 3:14 !otal: +:41 Video Summar# 3t least one company has taken the old phrase, B?ne man(s trash is another man(s treasureC and turned it in to a business model. 0coist is a company that uses discarded packa!in! materials from multinational brands like %oca-%ola, ;rito-2ay, *isney, and Dars to craft hi!h-end handba!s that would thrill e en the most discriminatin! fashionistas. 'hen the company first started in +--., consumer perceptions of !oods made from recycled materials weren(t ery positi e. This ideo describes how 0coist found opportunity in a !rowin! wa e of en ironmentalism. Eot only does 0coist capitalize on low cost materials and the brand ima!es of some of the world(s major brands, it comes out smellin! like a rose as it sa es tons of trash from landfills. $uestions and %ns&ers ). How en!a!ed was 0coist in analyzin! the marketin! en ironment before it launched its first company? 7ased on the information given in this video, the analysis of the marketing environment by -coist has been done on a small scale, informal level. #he video describes how the company got started and how it continues as a small company. #hey do not have the budget to invest in the kind of environmental analysis that re3uires research. #hat said, 1ust about everything this company has done has revolved around consideration of the marketing environment. )ts founders were very aware of problems associated with waste. #hey were also aware of issues oriented around artisans in other countries not making a fair wage. )t was their knowledge of these issues that turned on the light bulb for Bonathan 8arcoschamer when he first saw a handbag made from recycled trash. +. 'hat trends in the marketin! en ironment ha e contributed to the success of 0coist? Cultural ( without a doubt, the biggest trend that has fueled -coist"s success is the growing importance consumers have placed on environmental issues and social responsibility. As 8r. 8arcoschamer states, when they first started, it was very hard to sell retailers on the idea of a 3uality, fashionable handbag made from recycled materials. Cow, that concept is very hot. -coist has ridden 4and
maybe even helped to fuel6 that trend. #his trend applies not only to customers, but to companies. )t seems likely that more and more companies would be interested in working with -coist to help recycle their waste. Economic % #his may be a factor in companies wanting to sell their waste materials to -coist. )t"s a small amount, but still may help a company that is struggling to cut costs in hard economic times. -conomic conditions have also helped -coist to hone its product portfolio and pricing structure so that their products cover a range of prices and are affordable to more people. Technological % -coist has discovered ways to more efficiently use recycled materials in the construction of its goods. ". 5s 0coist(s strate!y more about recyclin! or about creatin! alue for customers? 06plain. -coist is a great example of a company that understands that it is possible to do well by doing good. )ndeed, 8r. 8arcoschamer states that -coist"s mission is to be a leading lifestyle brand that provides goods and services that are good for people, the planet, and the bottom line. Dertainly, this is a company started by people who care about social issues. 7ut from the beginning, they had an eye toward helping those issues by succeeding in business. -coist has focused on producing goods that customers really want while they help save the planet. A good example of this customer value is how -coist has been able to convince ma1or retailers that there is a big benefit in the variation of its products. /hile retailers typically want large batches of identical products, -coist churns out batches of one of a kind productsE each one is 1ust a bit different than the others. -specially for people who are fashion conscious, this is a huge plus. !ea'hing Ideas The ideo case for 0coist follows a uni&ue format for ideos in the /earson 1ideo 2ibrary that accompany 3rmstron! and 4otler(s 8arketing$ An )ntroduction, ))e. 5t be!ins with an introductory se!ment, followed by a problem se!ment, and ends with a solution se!ment. The intention here is to pro ide fle6ibility and multiple options for usin! the ideo. The followin! are some of the ways that instructors may utilize these three ideo se!ments. ). 5ntroduction only - 5nstructors may choose to use the introduction se!ment alone as a means of hi!hli!htin! the company. 3s a stand-alone ideo, the introduction se!ment supplements material in many of the chapters of the te6t. 'ith respect to chapter ", the introduction can be used to illustrate how the company !ot its start because of certain trends in the macroen ironment. +. /roblem challen!e - The instructor may show the problem se!ment, either with or without the introduction se!ment, and with or without the solution se!ment. This may be done in the interest of time. 5t may also be done strate!ically. 3n ideal way to challen!e students is to re&uire them to de elop possible solutions to the presented problem before they ha e seen the solution se!ment. The instructor then has the option of whether or not to show the solution se!ment. How does a new
company !et off the !round when it is tryin! to sell a product made from uncon entional materials? That is a &uestion that has as much to do with the trends in the marketin! en ironment as it has to do with company strate!y. ". 7olution only 8 This may be done to illustrate a specific concept in the chapter. 9ather than takin! the time to perform a problem:solution e6ercise, the solution se!ment may be shown to demonstrate how a company o ercame a specific problem. This se!ment illustrates how 0coist has confronted its challen!es by communicatin! the benefits of sustainability and fair trade and an o erall ecoima!e. Video Case Chapter 4 ,omino-s Running time Intro: 1:2 Problem: 1:3 Solution: 3:13 !otal: ":12 Video Summar# 3s a deli ery company, no one deli ers better than *omino(s. 5ts reputation for hot pizza in "- minutes or less is in!rained in customer(s minds. But not lon! a!o, *omino(s be!an hearin! its customers talkin! about how its pizza was horrible. 3s a company that has lon! focused on solid marketin! intelli!ence to make decisions, *omino(s went to work on how it could chan!e consumer perceptions about its pizza. Throu!h marketin! research techni&ues, *omino(s soon realized that it had to take a ery risky step and completely recreate the pizza that it had been sellin! for o er .years. This ideo illustrates how research not only enabled *omino(s to come up with a winnin! recipe, but it led to a successful promotional campai!n that has made fans of *omino(s pizza in addition to its deli ery ser ice. $uestions and %ns&ers ). 06plain the role that marketin! research played in the creation and launch of *omino(s new pizza. ;omino"s was a company that was successful for decades. )t took a decline in sales and market share for it to reali.e something was wrong. 8arketing research was completely responsible for discovering why the company was suffering. Cot only did research identify that the 3uality of ;omino"s pi..a was the main reason for its decline, but it was used in every step of the creation and launch of the new pi..a. ;efining the problem % research clearly identified that customers did not like ;omino"s core product. )t wasn"t 1ust an issue of having a product that didn"t excel. )t was that customers thought its pi..a was disgusting. )t also identified
;omino"s biggest strength % delivery and customer service. 0roduct development % ;omino"s approached the process of re(formulating its pi..a in a very methodical way, one that could be evaluated and analy.ed so as to come up with the best possible combination. )t started with do.ens of options for crust, cheese, sauce, and other ingredients. ?sing the research process, it whittled those options down to its top five. DonceptFproduct testing % ;omino"s utili.ed an experimental design that tested certain combinations, and extrapolated predictions for other combinations that weren"t tested. @aunchFpromotion % ;omino"s used data and material from its research to develop a ground breaking promotional campaign based on honesty and transparency. 9ur pi..a stunk was at the core of its promotion. +. 3re there more effecti e ways that *omino(s could ha e !one about its research process? #here may very well be. 7ut based on the information in this video, it seems that ;omino"s was extremely focused on the research process throughout the entire process. As Aussell /einer states, ;omino"s wants to be able to establish with a certain amount of statistical confidence that :(G(Z is going to work. ". 'hy did it take so lon! for *omino(s to realize that customers didn(t like its pizza? 'as it an accident that it made this realization? )n all likelihood, it was because they weren"t forced to confront the issue. ;omino"s shot to the top based on a strategy of *, minutes fast or free. )ts popularity skyrocketed because people loved the idea of being able to get hot pi..a fast % and the possibility of getting the pi..a for free if it wasn"t. Co one 4customers included6 paid much attention to the 3uality of the pi..a. 9nce the market caught up to it in terms of competitive options, people found that they could get good service elsewhere and get better pi..a. #hus, it was hardly accidental. )t was the most real problem of losing sales that woke ;omino"s up. !ea'hing Ideas The ideo case for *omino(s follows a uni&ue format for ideos in the /earson 1ideo 2ibrary that accompany 3rmstron! and 4otler(s 8arketing$ An )ntroduction, ))e. 5t be!ins with an introductory se!ment, followed by a problem se!ment, and ends with a solution se!ment. The intention here is to pro ide fle6ibility and multiple options for usin! the ideo. The followin! are some of the ways that instructors may utilize these three ideo se!ments. ). 5ntroduction only - 5nstructors may choose to use the introduction se!ment alone as a means of hi!hli!htin! the company. 3s a stand-alone ideo, the introduction se!ment supplements material in many of the chapters of the te6t. The *omino(s ideo introduction section hi!hli!hts chapter . concepts like test marketin!.
+. /roblem challen!e - The instructor may show the problem se!ment, either with or without the introduction se!ment, and with or without the solution se!ment. This may be done in the interest of time. 5t may also be done strate!ically. 3n ideal way to challen!e students is to re&uire them to de elop possible solutions to the presented problem before they ha e seen the solution se!ment. The instructor then has the option of whether or not to show the solution se!ment. The problem section of this *omino(s ideo illustrates a ni!htmare of a problem for any companyF customers can(t stand the core product. ". 7olution only 8 This may be done to illustrate a specific concept in the chapter. 9ather than takin! the time to perform a problem:solution e6ercise, the solution se!ment may be shown to demonstrate how a company o ercame a specific problem. This final section walks students throu!h different types of marketin! research and applies them to the new product de elopment process, culminatin! in a successful product and launch.
Video Case Chapter 5 .ood&ill Running time Intro: 1:25 Problem: 1:32 Solution: 3:34 !otal: ":43 Video Summar# 7ince )G-+, Hoodwill 5ndustries has funded job trainin! and placement pro!rams throu!h its chain of thrift stores. 'hile sellin! used clothin!, furniture, and other items may not seem like bi! business, for Hoodwill, it amounts to o er I" billion in annual sales. >ou mi!ht think of thrift stores as musty, low-class operations. But Hoodwill is puttin! an end to such perceptions by focusin! on concepts of consumer beha ior. 2ike any !ood marketin! company, Hoodwill reco!nizes that not all customers are the same. This ideo demonstrates how Hoodwill caters to different types of customers by reco!nizin! the cultural, social, personal, and psycholo!ical factors that affect how customers make buyin! decisions. 5n this manner, Hoodwill is able to ma6imize customer alue by offerin! the ri!ht mi6 of !oods at unbeatable bar!ains. $uestions and %ns&ers ). *escribe different types of Hoodwill customers. #he video addresses the following types of customers$ +. 'hich of the four sets of factors affectin! consumer beha ior do you belie e most stron!ly affects consumers( purchase decisions from Hoodwill?
Answers to this 3uestion will vary. #here is some support for each of the four$ Dultural % #he video addresses this based on location of stores. #he culture 4including subculture and social class6 of each neighborhood varies considerably. #his affects the types of things people donate as well as the types of things people shop for. Social % Social values affect the manner in which people view thrift stores. 0ersonal ( Hactors such as lifestyle, personality, and economic situation have a huge effect on how people shop for clothes and general merchandise. Ioodwill has learned that it isn"t 1ust low(income people who shop for used merchandise at thrift stores. 0sychological % 7eliefs, attitudes, perceptions, and motivations affect the value the different customers apply to the same item. ". How does Hoodwill(s reco!nition of consumer beha ior principles affect its marketin! mi6? )n response to the different categories of factors that affect consumer behavior, Ioodwill has made the following ad1ustments to its marketing mix$ Dultural % )nventory varies from store to store in an effort to bring the right kind of product to the right kind of customer. Social % Ioodwill has created a tier of outlets including Ioodwill 7outi3ues and regular Ioodwill stores with lower prices and more general merchandise. Ioodwill moves product around to different stores if it doesn"t sell in one store. )t ultimately ends up at a Ioodwill outlet store. 0ersonal % #iming. 8ore current fashions hit the bouti3ues or cutting edge stores in higher(end neighborhoods first. As fashions and trends fade out, those products hit stores that cater to people in a lower socio(economic class. 0sychological % Ioodwill not only moves product around, but has a pricing strategy that caters to the customer perception of value. /hen products first hit the shelves, it is priced at a set level. !igher(end items in high(end stores have even a higher price. #hen, the longer an item sits on the rack, the more its price is reduced. At some point, there is something for everyone. !ea'hing Ideas The ideo case for Hoodwill follows a uni&ue format for ideos in the /earson 1ideo 2ibrary that accompany 3rmstron! and 4otler(s 8arketing$ An )ntroduction, ))e. 5t be!ins with an introductory se!ment, followed by a problem se!ment, and ends with a solution se!ment. The intention here is to pro ide fle6ibility and multiple options for usin! the ideo. The followin! are some of the ways that instructors may utilize these three ideo se!ments. ). 5ntroduction only - 5nstructors may choose to use the introduction se!ment alone as a means of hi!hli!htin! the company. 3s a stand-alone ideo, the introduction se!ment supplements material in many of the chapters of the te6t. The introduction section of this ideo not only !i es a !eneral introduction to this
companyJ it identifies that there is much more to this thrift store chain than most consumers typically attribute to this cate!ory of retailers. +. /roblem challen!e - The instructor may show the problem se!ment, either with or without the introduction se!ment, and with or without the solution se!ment. This may be done in the interest of time. 5t may also be done strate!ically. 3n ideal way to challen!e students is to re&uire them to de elop possible solutions to the presented problem before they ha e seen the solution se!ment. The instructor then has the option of whether or not to show the solution se!ment. The problem of this section illustrate how economic conditions as well as chan!es in technolo!y affect the consumer circumstances. 5n this case, Hoodwill has faced the challen!es of both keepin! customer donations up as well as retail sales. ". 7olution only 8 This may be done to illustrate a specific concept in the chapter. 9ather than takin! the time to perform a problem:solution e6ercise, the solution se!ment may be shown to demonstrate how a company o ercame a specific problem. Hoodwill has reco!nized the differences in consumers, based on the factors affectin! consumer beha ior, as a means of keepin! its chain rele ant, e en as times chan!e. Video Case Chapter " *aton /o'ation: Cle0eland1 (hio Running time Intro: 2:52 Problem: 1:13 Solution: 2: 5 !otal: ":1 Video Summar# 'ith appro6imately K-,--- employees in more than )$- countries and annual re enues of nearly I)+ billion, 0aton is one of the world(s lar!est suppliers of di ersified industrial !oods. 0aton has been known for products that make cars peppier and )Lwheelers safer to dri e. But a recent restructurin! has made 0aton a powerhouse in the !rowin! field of power mana!ement. 5n short, 0aton is makin! electrical, hydraulic, and mechanical power systems more accessible and more efficient to its !lobal customers. But 0aton isn(t successful only because of the products and ser ices that it sells. 5t is successful because it works closely with its business customers to help them sol e their problems and create better products and ser ices of their own. 0aton is known for hi!h&uality, dependable customer ser ice and product support. 5n this manner, 0aton builds stron! relationships with its clients. 3fter iewin! the ideo featurin! 0aton, answer the followin! &uestions about the company. $uestions and %ns&ers ). 'hat is 0aton(s alue proposition?
#his may be a challenging 3uestion for students to answer. Dertainly there are things mentioned in the video like the fact that -aston is a brand trusted for 3uality. -aton is also known as a company that partners with customers to help them solve their problems. 7ut the focus of this case is on how -aton has shifted with the times to position itself as a power management company. #he value of -aton is that it enables companies to be more efficient and reliable with respect to power needs. +. 'ho are 0aton(s customers? *escribe 0aton(s customer relationships. -aton markets to sophisticated, discriminating customers. 7ut the full answer to this 3uestion should revolve around the concept of the buying center in the text. #he buying center establishes that there are various individuals and even departments within companies that have a vested interest in any given purchase. #hese include influencers, users, buyers, deciders, and gatekeepers$ -ngineers who are designing things 9perations people who are running things. Ieneral managers who are focused on the broader scope of value that can be added.
#he video specifically addresses the strength that -aton has in managing relationships with its customers. 9ne of the principle aspects of this is that -aton has a competency in resolving situations that go wrong. Dustomers come to trust -aton as it reacts in ways that demonstrate that it has the best interest of the customer in mind. 8ost important to its ability to develop and maintain customer relationships is the fact that -aton focuses on partnering with its clients. As the video points out, 9ur reputation is growing in terms of not 1ust our ability to solve typical applications, but our ability to solve applications that are very demanding. #he challenges of the recession highlighted in the challenge segment of the video highlights demanding, complex needs of industrial clients. -aton got right on it and determined what had changed with respect to each customer"s needs. )t determined what challenges each company was facing. #hen, it went to work to helps resolve those problems and help each client succeed at fulfilling the needs of their customers. ". *iscuss the different ways that 0aton pro ides alue beyond which customers can pro ide for themsel es. -aton"s success depends on its ability to provide high 3uality, dependable customer service and product support. #hrough service and support, -aton develops a clear understanding of consumer needs and builds stronger relationships with clients, and helps add value to its products. Some of the specific ways that -aton adds value as per the video are as follows$
-aton has gone from component provider to solutions provider. -aton works multiple levels of channels that interact with each other. -aton solves problems for its customers by solving problems for the end customer. #he customer knows what"s needed, -aton knows what"s possible. -aton has expertise that its customer do not have and shares it. -aton recogni.es that it cannot sell the same product every year. )t has to be innovative, be worth paying a price for.
!ea'hing Ideas Hi e students two minutes to list all of the business-to-business marketers they can recall. Hi e them an additional two minutes to list all of the business-to-consumer marketers they can. %hances are, the list of b-to-c marketers is considerably lon!er. *o any marketers make both lists? 3sk students to think about the enormity of the b-to-b market as compared to the b-to-c market. 'hy aren(t they more aware of b-to-b marketers? The ideo case for 0aton follows the most current format for ideos in the /earson 1ideo 2ibrary. 5t be!ins with an introductory se!ment, followed by a problem se!ment, and ends with a solution se!ment. The intention here is to pro ide fle6ibility and multiple options for usin! the ideo. The followin! are some of the ways that instructors may utilize these three ideo se!ments. ). 5ntroduction only - 5nstructors may choose to use the introduction se!ment alone as a means of hi!hli!htin! the company. 3s a stand-alone ideo, the introduction se!ment supplements material in many of the chapters of the te6t. +. /roblem challen!e - The instructor may show the problem se!ment, either with or without the introduction se!ment, and with or without the solution se!ment. This may be done in the interest of time. 5t may also be done strate!ically. 3n ideal way to challen!e students is to re&uire them to de elop possible solutions to the presented problem before they ha e seen the solution se!ment. The instructor then has the option of whether or not to show the solution se!ment. ". 7olution only 8 This may be done to illustrate a specific concept in the chapter. 9ather than takin! the time to perform a problem:solution e6ercise, the solution se!ment may be shown to demonstrate how a company o ercame a specific problem. Video Case Chapter + 2oston 3arbor Cruises Running time Intro: 1:33 Problem: 1:55 Solution: 2:54 !otal: ":2+
Video Summar# 7ince )G+#, Boston Harbor %ruises has been pro idin! customers with memorable e6periences on ocean-!oin! essels in and around the Boston area. But these days, the term BcruiseC has different meanin!s to four-!eneration family business. To thri e in stron! economic times and in bad, Boston Harbor %ruises has pro!ressi ely tar!eted arious types of customers with its different boats and different ser ices. 7i!ht-seein! trips around Boston Harbor, whale-watchin! tours, fast ferry ser ice to %ape %od, dinner and weddin! cruises, and a hi!h-speed thrill ride are amon! Boston Harbor %ruises offerin!s. 5t e en offers commuter ser ices and off-shore construction support. Tar!etin! this di erse customer base has become e en more challen!in! as Boston Harbor %ruises has further differentiated the market into local customers, domestic acationers, and international tra elers. $uestions and %ns&ers ). ?n what main ariables had Boston Harbor %ruises focused in se!mentin! its markets? )nitially, 7oston !arbor approached the market from a local perspective. )t had many different cruise services for various customer segments. And it certainly catered to customer differences with those different services 4commuter ferries, whale watching tours, thrill ride, historic tours, dinner tours6. 7ut it considered all those customers as local in that they all came to 7oston and used the service there. #his is evident in how Alison Colan tells of the company"s former practice of advertising in the 7oston yellow pages, the local 7oston newspapers, and by putting promotional materials in 7oston hotels. +. 'hich tar!et marketin! strate!y best describes Boston Harbor %ruises efforts? 7upport your choice. ;ifferentiated % 7oston !arbor Druises clearly targets several market segments and designs separate offers for each. 7oston !arbor Druises has taken this to a new level by recogni.ing the differences between local, ?.S. tourists, and international tourists. ". How does Boston Harbor %ruises use the concepts of differentiation and positionin! to build relationships with the ri!ht customers? 7oston !arbor Druises has identified different customer segments. )t has also identified the uni3ue needs of those segments. )t should be noted and discussed that 7oston !arbor Druises has identified how fluctuations in the economy affect consumer needs. As the largest private fleet of ocean going vessels, 7oston !arbor Druises has a lot of boats that serve a lot of purposes. )t has catered these services to the needs of different customers. #he biggest way that 7oston !arbor Druises has changed its positioning strategy is by ad1usting its promotional strategy. )n down times, it knows that it has a
better market among international travelers. As a result, it has increased online efforts as well as increasing its budget that focuses on foreign travels partners. !ea'hing Ideas The ideo case for Boston Harbor %ruises follows a uni&ue format for ideos in the /earson 1ideo 2ibrary that accompany 3rmstron! and 4otler(s 8arketing$ An )ntroduction, ))e. 5t be!ins with an introductory se!ment, followed by a problem se!ment, and ends with a solution se!ment. The intention here is to pro ide fle6ibility and multiple options for usin! the ideo. The followin! are some of the ways that instructors may utilize these three ideo se!ments. ). 5ntroduction only - 5nstructors may choose to use the introduction se!ment alone as a means of hi!hli!htin! the company. 3s a stand-alone ideo, the introduction se!ment supplements material in many of the chapters of the te6t. The introduction of this ideo makes it ery clear that Boston Harbor %ruises tar!ets arious customer se!ments with different ser ices. +. /roblem challen!e - The instructor may show the problem se!ment, either with or without the introduction se!ment, and with or without the solution se!ment. This may be done in the interest of time. 5t may also be done strate!ically. 3n ideal way to challen!e students is to re&uire them to de elop possible solutions to the presented problem before they ha e seen the solution se!ment. The instructor then has the option of whether or not to show the solution se!ment. This solution se!ment identifies the effects of the economy on the demand emanatin! from different customer se!ments. ". 7olution only 8 This may be done to illustrate a specific concept in the chapter. 9ather than takin! the time to perform a problem:solution e6ercise, the solution se!ment may be shown to demonstrate how a company o ercame a specific problem. Boston Harbor %ruises has made a ery simply shift 8 allocate promotional dollars to the se!ments where demand is !reatest.
Video Case Chapter 4 /i5e Is .ood Running time Intro: 1:32 Problem: 2:13 Solution: 3:52 !otal: +:41 Video Summar# >ou(re probably familiar with 2ife 5s Hood. The company(s cheerful lo!o is prominently featured on e erythin! from t-shirts to do! collars and seems to e6ude a positi e ibe. 'hile this company has found considerable success in sellin! its wares
based on a happy brand ima!e, consumers aren(t !ettin! the complete ima!e that 2ife is Hood founders intended. This ideo illustrates the challen!es a company faces in balancin! the role of the customer and the role of the company in determinin! meanin! of a brand. $uestions and %ns&ers ). 'hat are people buyin! when they purchase a 2ife 5s Hood product? #his should be relatively simple. /hile @ife )s Iood sells apparel, that is not what customers are buying. -ven though there is a relatively high perceived 3uality in @ife is Iood"s products. 0eople can get t(shirts % even high 3uality t(shirts with catchy graphics % from numerous companies. 7ert Bacobs spells it out$ optimism. #he company doesn"t really care about clothing. )t cares far more about selling a perspective and selling its 0laymaker Houndation. +. 'hat factors ha e contributed to the 2ife 5s Hood brand ima!e? Dertainly, the founders had a great deal to do with this. 7ert Bacobs describes the evolution of Bake. )t came out of the desire to oppose all the negative messages that come through the media. 7ut it took off because 7ert and his brother hit on the fact that they weren"t the only ones who were craving a message of optimism. ". 'hat recommendations would you make to 2ife 5s Hood re!ardin! brand de elopment strate!ies? 9bviously, the big issue for @ife )s Iood is expanding the image of the brand so that people recogni.e that @ife )s Iood is about the 0laymaker Houndation 1ust as much as it is about the message of optimism. Student responses to this will vary. 7ut they should recogni.e that @ife )s Iood has this ob1ective and that it is already employing the following strategies to better communicate the aspects of the brand that it wants to disseminate$ !ang tags on all products @ife )s Iood /eb site Hacebook Hestivals -(mail blasts #our with the @ife )s Iood trailer and team 8aking more opportunities to donate to 0laymakers !ea'hing Ideas The ideo case for 2ife 5s Hood follows a uni&ue format for ideos in the /earson 1ideo 2ibrary that accompany 3rmstron! and 4otler(s 8arketing$ An )ntroduction, ))e. 5t be!ins with an introductory se!ment, followed by a problem se!ment, and ends with a solution se!ment. The intention here is to pro ide fle6ibility and multiple options for usin! the ideo. The followin! are some of the ways that instructors may utilize these three ideo se!ments.
). 5ntroduction only - 5nstructors may choose to use the introduction se!ment alone as a means of hi!hli!htin! the company. 3s a stand-alone ideo, the introduction se!ment supplements material in many of the chapters of the te6t. The introduction of this 2ife 5s Hood ideo clearly illustrates not only the ori!ins of the company, but how the brand ima!e re ol es around the concept of optimism. +. /roblem challen!e - The instructor may show the problem se!ment, either with or without the introduction se!ment, and with or without the solution se!ment. This may be done in the interest of time. 5t may also be done strate!ically. 3n ideal way to challen!e students is to re&uire them to de elop possible solutions to the presented problem before they ha e seen the solution se!ment. The instructor then has the option of whether or not to show the solution se!ment. 5n this ideo, students are shown that while 2ife 5s Hood has had a ery successful run and a stron! brand ima!e, that ima!e doesn(t capture what the founders had hoped for 8 an understandin! that the company is more about /laymakers than it is about sellin! clothes or e en optimism. ". 7olution only 8 This may be done to illustrate a specific concept in the chapter. 9ather than takin! the time to perform a problem:solution e6ercise, the solution se!ment may be shown to demonstrate how a company o ercame a specific problem. 2ife 5s Hood has e6panded the strate!ies that it uses to dri e home the aspects of its ima!e that it wants consumers to be aware of.
Video Case Chapter 6 Subaru Running time Intro: 1:14 Problem: 2:24 Solution: 3:12 !otal: ":52 Video Summar# 'hen a company has a winnin! product, it has it made. ?r does it? 7ubaru is a winnin! company <one of the few automoti e companies to sustain !rowth and profits in hard economic times= with arious winnin! products, includin! the 5mpreza, 2e!acy, ;orester, and ?utback. But what happens when any one product starts to decline in popularity? This ideo demonstrates how 7ubaru constantly en!a!es in new product de elopment as part of its efforts to mana!e the product life cycle for each of its models. 7ubaru is focused on both de elopin! the ne6t ersion of each e6istin! model and de elopin! possible new models to boost its product portfolio.
$uestions and %ns&ers ). *iscuss the product life cycle in relation to one 7ubaru product. Students could pick any of the products illustrated in this video. !ere is one example based on the 9utback$ a. )ntroduction % the introduction of S?Js really dates back to the pre(war era with the first Dhevrolet Suburban 4<=*+6. #his was followed throughout the decades with early Beeps, )nternational Scouts, and Hord 7roncos. b. Irowth % as ;avid Sullivan explained, the supply and demand of S?Js was increasing rapidly in the early <==,s. /hile Subaru had marketed four(wheel drive sedans and wagons for years, it didn"t have anything that really 3ualified as an S?J. So, it lifted its @egacy sedan and wagon, beefed up the suspension, put meatier tires on it, and the 9utback was born. 8any consider the introduction of the 9utback in <==K as the introduction of an entirely new product category, crossover S?Js or D?Js. c. 8aturity % #oday"s 9utback is in the maturity phase as a fourth( generation vehicle. )t is important to note that the entire category of D?Js is mature 4S?Js have been in decline for a number of years now6. /hen a company"s most popular product starts to taper off, it must move forward with new products. Subaru has recogni.ed this. #hey are not a company that is totally rooted in S?Js. /hen customers began abandoning S?Js, companies like Hord and Dhevrolet were in big trouble. Subaru has a uni3ue relationship between its D?Js and non( D?Js. As the demand for the D?J version fluctuates, the demand for its non(D?J counterpart picks up the slack 49utback and @egacy are largely the same vehicle6. Subaru has also developed itself in the market of high( performance sedans 4/A:6 and full(si.ed D?Js 4#ribeca6. d. ;ecline % Cone of Subaru"s vehicle models seem to be in a true decline phase. #his is what they hope to prevent. 7ut they are preparing for such by creating other models. +. How do shiftin! consumer trends affect 7ubaru(s products? #he shifting trends towards S?Js and D?Js is a case(in(point. #he 9utback was born from a necessity for Subaru to have a product that could compete with other manufacturers producing vehicles catering to this growing trend. As the trend increased and D?Js took on a life of their own, Subaru was well(poised with a leading product. As larger, truck(based S?Js started to decline, 9utback 4at its sibling the Horester6 met consumer desires for a beefy all(wheel drive vehicle that was more car(like and more fuel(efficient. ". *escribe how 7ubaru remains customer oriented in its new product efforts. 06plain. Aesearch. #he collect data from customer letters and phone calls. #hey do dedicated research through means like ethnographic studies. #hey have gone in
to peoples homes to observe how they live and what needs they have in their vehicles. Hrom this, they have identified various new product features such as more comfort and convenience features and more rear(seat legroom. !ea'hing Ideas The ideo case for 7ubaru follows a uni&ue format for ideos in the /earson 1ideo 2ibrary that accompany 3rmstron! and 4otler(s 8arketing$ An )ntroduction, ))e. 5t be!ins with an introductory se!ment, followed by a problem se!ment, and ends with a solution se!ment. The intention here is to pro ide fle6ibility and multiple options for usin! the ideo. The followin! are some of the ways that instructors may utilize these three ideo se!ments. ). 5ntroduction only - 5nstructors may choose to use the introduction se!ment alone as a means of hi!hli!htin! the company. 3s a stand-alone ideo, the introduction se!ment supplements material in many of the chapters of the te6t. The introduction se!ment for this 7ubaru ideo not only illustrates the 7ubaru is a company with many different products, but that it is en!a!ed in tryin! to meet consumer needs with new products as trends shift. +. /roblem challen!e - The instructor may show the problem se!ment, either with or without the introduction se!ment, and with or without the solution se!ment. This may be done in the interest of time. 5t may also be done strate!ically. 3n ideal way to challen!e students is to re&uire them to de elop possible solutions to the presented problem before they ha e seen the solution se!ment. The instructor then has the option of whether or not to show the solution se!ment. This se!ment illustrates the challen!es that emer!e when top product hit maturity. ". 7olution only 8 This may be done to illustrate a specific concept in the chapter. 9ather than takin! the time to perform a problem:solution e6ercise, the solution se!ment may be shown to demonstrate how a company o ercame a specific problem. Eew products do not necessarily mean Bcompletely newC concepts. Dodifications and updates are new products. This se!ment shows how 7ubaru is ery focused on both.
Video Case Chapter 1 Smash2urger /o'ation: ,en0er1 C( Running time: Intro: 1:4" Problem: 1:2+ Solution: 4: + !otal: +:2
Video Summar# Hambur!ers are 3merica(s fa orite food. %onsumers spend more than I)-billion on the beef sandwiches e ery year. But despite 3merica(s infatuation with bur!ers, there is considerable dissatisfaction amon! consumers based on hambur!er &uality and alue. Dany customers just aren(t happy with what is ser ed up at marketleadin! fast-food outlets. They want a better bur!er, and they won(t hesitate to pay a hi!her price to !et one. 0nter 7mashbur!er. 7tarted just a few years a!o in *en er, %olorado, 7mashbur!er is now a rapidly e6pandin! chain of more than )-- stores in )K states. 3nd all this !rowth happened durin! a se ere economic downturn despite 7mashbur!er(s a era!e lunch check of IL. Dany customers pay as much as I)- or I)+ for a bur!er, fries, and shake. The 7mashbur!er ideo shows how this small startup has pulled off a seemin!ly impossible challen!e. $uestions and %ns&ers ). *iscuss the three major pricin! strate!ies in relation to 7mashbur!er. 'hich of these three do you think is the company(s core strate!ic strate!y? +. 'hat effect does 7mashbur!er(s premium price ha e on consumer perceptions? How did a restaurant with a premium-priced product and little track record take off durin! a recession? #he video specifically addresses the challenge of launching this chain of restaurants right as the global recession took hold. 7ut Smashburger found that the importance of providing a higher 3uality burger at a premium price didn"t change with economic conditions. )n fact, the economy had the effect of getting people to downgrade from restaurants like 0.H. Dhang"s or Applebee"s, places where they would spend 5<& or 5<* or more on a meal. #he public perception with Smashburger"s premium price was that they could have fast food, but still have a 3uality meal in an attractive environment. #his is what led Smashburger to find its optimal price point of about 5> 4average6. #hey had a recipe and speed on their side. #he price was the feature that cinched the deal for the market. Also, Smashburger"s ala carte approach communicated more flexibility to consumers. 0eople could go in and spend only 5K on a very filling burger. 9r, they could opt for whatever side dishes and drinks that they wanted. ". 5s 7mashbur!er(s success based on no elty alone or will it continue to succeed? )t would seem that Smashburger has a formula that has staying power. Again, this concept was developed prior to the great recession. )t rolled out amidst horrible economic conditions and it works. As the economy improves, it will have an established base of customers, and people with
more money in their pockets will trade up from regular fast food for something better. !ea'hing Ideas The ideo case for 7mashbur!er follows the most current format for ideos in the /earson 1ideo 2ibrary. 5t be!ins with an introductory se!ment, followed by a problem se!ment, and ends with a solution se!ment. The intention here is to pro ide fle6ibility and multiple options for usin! the ideo. The followin! are some of the ways that instructors may utilize these three ideo se!ments. ). 5ntroduction only - 5nstructors may choose to use the introduction se!ment alone as a means of hi!hli!htin! the company. 3s a stand-alone ideo, the introduction se!ment supplements material in many of the chapters of the te6t. +. /roblem challen!e - The instructor may show the problem se!ment, either with or without the introduction se!ment, and with or without the solution se!ment. This may be done in the interest of time. 5t may also be done strate!ically. 3n ideal way to challen!e students is to re&uire them to de elop possible solutions to the presented problem before they ha e seen the solution se!ment. The instructor then has the option of whether or not to show the solution se!ment. ". 7olution only 8 This may be done to illustrate a specific concept in the chapter. 9ather than takin! the time to perform a problem:solution e6ercise, the solution se!ment may be shown to demonstrate how a company o ercame a specific problem.
Video Case Chapter 11 3ammerpress Running time Intro: 2:24 Problem: 2:1" Solution: 2:54 !otal: +:3+ Video Summar# /rintin! paper !oods may not sound like the best business to !et into these days. But Hammerpress is a company that is car in! out a niche in this old industry. 3nd they(re doin! it by returnin! to old technolo!y. Today(s printin! firms use computer-dri en !raphic desi!n techni&ues and printin! processes. But Hammerpress creates !reetin! cards, calendars, and business cards that are hand-crafted by professional artists and printed usin! traditional letterpress technolo!y. 'hen it comes to competin!, this presents both opportunities and challen!es. 'hile Hammerpress(s products certainly stand out as works of art, the cost for producin! such !oods is considerably hi!her than the industry a era!e. This ideo illustrates how
Hammerpress employs dynamic pricin! techni&ues in order to meet the needs of arious customer se!ments and thri e in a competiti e en ironment. $uestions and %ns&ers ). How does Hammerpress employ the concept of dynamic pricin!? #he text defines dynamic pricing as ad1usting prices continually to meet the characteristics and needs of individual customers and situations. #he nature of !ammerpress" customer base and its product types are a perfect match for dynamic pricing. !ammerpress doesn"t 1ust change its prices around on the same exact product. )t creates packages and options. A great example of this is the concert promotion posters. )f a producer wants to pay the price that will cover the costs of the product and provide !ammerpress with a reasonable margin, they can do that. 7ut knowing that concert promoters are often working form a tight budget 4and delayed cash flow6, !ammerpress also offers the option of paying a lower price if it can retain the rights to sell copies of the posters. +. *iscuss the three major pricin! strate!ies in relation to Hammerpress. 'hich of these three do you think is the company(s core strate!ic strate!y? Dost(based pricing % it seems that !ammerpress primarily relies on this method of designing the product, adding up the costs, and adding in a margin. #his is the main method for the industry. Dustomer value(based pricing % !ammerpress is a good example of a company that is primarily cost(based, but still considers customer value. #he example given of movie posters is one such illustration. !owever, so is the example of printing the bread bags for /hole Hoods. #hey were uncertain about the cost structure of that new 1ob. So they worked on the expectations of the customer by stating that the price of future 1obs might vary. #hey still used a cost(based model for both of these examples. 7ut they made modifications based on perceptions of customer value. Dompetition(based pricing % 7ecause !ammerpress is so uni3ue, it does not have to compete on price like other computer(based services do. Hor many of them, the market may establish the price entirely. 7ut !ammerpress has some flexibility due to the process and 3uality of its work. ". *oes it make sense for Hammerpress to compete in product cate!ories where the market dictates a price that is not profitable for the company? 06plain. Ges. 7rady was very smart to create a by(product pricing option by giving some customers the option of paying a lower price in exchange for releasing the rights of the design to !ammerpress so that they can sell copies. #his is a benefit associated with certain kinds of products. And because !ammerpress works with a more artistic and high(3uality method, they can do this where many of their competitors might not be able to.
!ea'hing Ideas The ideo case for Hammerpress follows a uni&ue format for ideos in the /earson 1ideo 2ibrary that accompany 3rmstron! and 4otler(s 8arketing$ An )ntroduction, ))e. 5t be!ins with an introductory se!ment, followed by a problem se!ment, and ends with a solution se!ment. The intention here is to pro ide fle6ibility and multiple options for usin! the ideo. The followin! are some of the ways that instructors may utilize these three ideo se!ments. ). 5ntroduction only - 5nstructors may choose to use the introduction se!ment alone as a means of hi!hli!htin! the company. 3s a stand-alone ideo, the introduction se!ment supplements material in many of the chapters of the te6t. The introduction of this Hammerpress ideo !i es details on the uni&ueness of the company(s products. This sets up the basis for pricin! strate!y. +. /roblem challen!e - The instructor may show the problem se!ment, either with or without the introduction se!ment, and with or without the solution se!ment. This may be done in the interest of time. 5t may also be done strate!ically. 3n ideal way to challen!e students is to re&uire them to de elop possible solutions to the presented problem before they ha e seen the solution se!ment. The instructor then has the option of whether or not to show the solution se!ment. Hammerpress works in an industry that is lar!ely dri en by competition-based pricin!. Dodern computer-based printin! ser ices all churn out the same stuff. 7o, they ha e a commodity product. Hammerpress(s challen!e is based on communicatin! the differences in its products that merit hi!h prices based on hi!her cost. ". 7olution only 8 This may be done to illustrate a specific concept in the chapter. 9ather than takin! the time to perform a problem:solution e6ercise, the solution se!ment may be shown to demonstrate how a company o ercame a specific problem. Hammerpress is successful at workin! throu!h a cost-based pricin! system by knowin! and understandin! the different needs of its different types of customers. 5t employs dynamic pricin! as a means of adjustin! price to appeal to different needs. Video Case Chapter 12 .a0i7a .ourmet Co55ee Running time Intro: 1:1" Problem: 1:23 Solution: 3:56 !otal: +:34 Video Summar# These days, there seems to be plenty of coffee to !o around. 7o how does a small time coffee roaster like Ha iMa make it in an industry dominated by bi! players? By
carefully craftin! a distribution strate!y that mo es its products into the hands of consumers. 'ithout a bi! ad ertisin! bud!et, Ha iMa has creati ely pursued channel partners in the !rocery, restaurant, and hospitality industries. Eow, major chains like Dc*onald(s and /ubli6 make Ha iMa(s coffees a ailable to the public. This ideo also illustrates the impact of distribution strate!y on supply chain and product de elopment issues. $uestions and %ns&ers ). 3pply the concept of the supply chain to Ha iMa. As a manufacturer, IaviLa relies on suppliers of its core ingredients to produce 3uality products at prices that won"t break its bank. /hat this video doesn"t show is the efforts that IaviLa has gone to in order to create a reliable supply chain for high(3uality coffee beans that are rooted in fair trade practices. /hat the video does show is 1ust how much the fluctuating price of the coffee commodity affects the way it does business. +. 7ketch out as many consumer and business channels for Ha iMa as you can. How does each of these channels meet distinct customer needs? )t should be noted that all of IaviLa"s channels ultimately end with the consumer. !owever, there are many end(users who do not reali.e that they are drinking a IaviLa product. #his is because they are purchasing the coffee by the cup through one of IaviLa"s institutional customers. Donsumer 4retail6 channels IaviLa Dostco end(user IaviLa Mroger 4and all other grocery stores6 end(user IaviLa @iborios 4chain catering to !ispanics6 end(user )nstitutional 4wholesale6 channels IaviLa 8c;onald"s end(user IaviLa ;onut shops 4and other small food service accounts6 end(user IaviLa /holesaler ;onut shops 4and other food service accounts6 end( user IaviLa /holesaler 9ffice coffee services end(user ". How has Ha iMa(s distribution strate!y affected its product mi6? #he video clearly identifies various channels that IaviLa uses to distribute its product. #his multi(channel strategy has had a big impact on how IaviLa"s product mix has evolved. Hor example, it develops and distributes private label goods for retailers like 8c;onald"s and small shops. )t has its core brand, *on ;rancisco, that it distributes through grocery stores. )t developed *on ;rancisco ;amily 9eser e for that channel to answer the demand for a premium coffee customer can brew at home. As it entered the club store channel with Dostco, it developed NosO, a proprietary premium brand for that retailer. Hor the channels that distribute to ethnic customers, the brand %afO la 2la e is the product.
!ea'hing Ideas The ideo case for Ha iMa follows a uni&ue format for ideos in the /earson 1ideo 2ibrary that accompany 3rmstron! and 4otler(s 8arketing$ An )ntroduction, ))e. 5t be!ins with an introductory se!ment, followed by a problem se!ment, and ends with a solution se!ment. The intention here is to pro ide fle6ibility and multiple options for usin! the ideo. The followin! are some of the ways that instructors may utilize these three ideo se!ments. ). 5ntroduction only - 5nstructors may choose to use the introduction se!ment alone as a means of hi!hli!htin! the company. 3s a stand-alone ideo, the introduction se!ment supplements material in many of the chapters of the te6t. The introduction se!ment of this ideo sets the sta!e for distribution concepts and Ha iMa(s distribution strate!y. +. /roblem challen!e - The instructor may show the problem se!ment, either with or without the introduction se!ment, and with or without the solution se!ment. This may be done in the interest of time. 5t may also be done strate!ically. 3n ideal way to challen!e students is to re&uire them to de elop possible solutions to the presented problem before they ha e seen the solution se!ment. The instructor then has the option of whether or not to show the solution se!ment. This se!ment illustrates the challen!es faced by a small but !rowin! company. 5n particular, it is apparent from this discussion that Ha iMa is a company that prides itself on &uality. 3nd as the pressures of increasin! costs take their toll, Ha iMa will not compromise its &uality like so many others do. ". 7olution only 8 This may be done to illustrate a specific concept in the chapter. 9ather than takin! the time to perform a problem:solution e6ercise, the solution se!ment may be shown to demonstrate how a company o ercame a specific problem. This final se!ment illustrates how a company can o ercome competiti e forces with a sa y distribution strate!y. Eot only has Ha iMa !one in to multiple distribution channels with arious brands, it has also capitalized on its product &uality while emphasizin! buildin! relationships with its business customers. Video Case Chapter 13 3ome Shopping 8et&or9 Running time Intro: 1:42 Problem: 1:1 Solution: 2:2" !otal: ":2 Video Summar# 7hoppin! on tele ision has been around almost as lon! as tele ision itself. But the Home 7hoppin! Eetwork <H7E= made it a full-time endea or in )GL+, !i in! birth to a
new retail outlet. 7ince then, H7E has been a pioneer in products, presentation, and order takin!. The company has sold millions of products and has been known for !i in! an outlet to le!itimate products that otherwise would not reach customers. But what does a company do when the ery retail channel that it depends upon starts to fizzle out? This ideo illustrates how H7E has met the challen!es of a chan!in! marketplace to continue its inno ati e methods for reachin! its customer base. $uestions and %ns&ers ). How has H7E differentiated itself from other retailers throu!h each element of the retail marketin! mi6? 0roduct and service assortment % !SC certainly has a variety of products for sale. As the video mentions, some of those products are !SC exclusives which is a point of differentiation. !owever, the greatest point of differentiation that !SC has from other retailers % even online retailers % is that it is not 1ust a retail outlet. )t is a form of entertainment. So, as consumers shop, they are watching a television program. 0eople become involved with and attached to the shows and hosts, 1ust as they would with other television programs. 0ricing % not discussed in this video. 0romotion % !SC has the uni3ue characteristic of crossing the boundaries between these elements of the marketing mix. !SC"s programs are part of the product. #hey are also a ma1or means of promoting the goods sold. #he concept of boundaryless retail takes promotional efforts online to its /eb site and to its mobile interface. ;istribution % Ioods are shipped directly to consumers, 1ust as they are with catalogue or online retailers. 7ut !SC"s distribution is more specifically through its programming and other media interfaces. #here is a fine line here between distribution and promotion. 7ut because !SC"s product is as much programming as it is the actual goods that are sold, those programs are distributed through #elevision and not to some extent through online and mobile channels. +. *iscuss the concept of the retail life cycle as it relates to H7E. Similar to the product life cycle, retail outlets also go through a life cycle. !SC describes the origins of the television shopping outlet as it pioneered the concept in the late <=N,s and early <=>,s. At that time, the concept was rough and undeveloped. 9ver time, !SC has improved the 3uality of its programming, improved the 3uality and variety of its catalogue of products, brought in various celebrities, created dedicated programs for hosts and celebrities, and many other elements that have increased the status 4not to mention the cost6 of !SC as a retail outlet. 8ore recently, !SC has moved into multiple channels. )n certain respects, this is an example of a retailer embracing new retail outlets 4online and mobile6 as those outlets begin and move through the retail life cycle. ". *o you think H7E has a bri!ht future? 'hy or why not? Student answers will vary to this. )t is always difficult to predict. !owever, any answer to this must be rooted in the very problem that is expressed in the video.
#here are a ton of options for entertainment as well as shopping. #hose options will only increase. !SC must continue to offer value to consumers that they can"t get elsewhere. So, if consumers want to watch because they don"t 1ust get shopping options, they get all that expertise and suggested advice on how to use products, they"ll keep watching. 7ut if consumers find that either those things are not important, or they can get those same benefits in a better way through other channels 4including online6, then they won"t watch. )t must be noted that the average !SC shopper is older and that younger demographics are not flocking to the network. !SC must find a way to connect with younger audiences or it will eventually die out. !ea'hing Ideas The ideo case for H7E follows a uni&ue format for ideos in the /earson 1ideo 2ibrary that accompany 3rmstron! and 4otler(s 8arketing$ An )ntroduction, ))e. 5t be!ins with an introductory se!ment, followed by a problem se!ment, and ends with a solution se!ment. The intention here is to pro ide fle6ibility and multiple options for usin! the ideo. The followin! are some of the ways that instructors may utilize these three ideo se!ments. ). 5ntroduction only - 5nstructors may choose to use the introduction se!ment alone as a means of hi!hli!htin! the company. 3s a stand-alone ideo, the introduction se!ment supplements material in many of the chapters of the te6t. 5n this se!ment, it is apparent that there is far more to H7E than most people realize. +. /roblem challen!e - The instructor may show the problem se!ment, either with or without the introduction se!ment, and with or without the solution se!ment. This may be done in the interest of time. 5t may also be done strate!ically. 3n ideal way to challen!e students is to re&uire them to de elop possible solutions to the presented problem before they ha e seen the solution se!ment. The instructor then has the option of whether or not to show the solution se!ment. H7E(s problem of facin! a fra!mented landscape of tele ision pro!rammin! options is real and it has been !oin! on for the past few decades. 5t is only compounded by newer competition in the online realm. ". 7olution only 8 This may be done to illustrate a specific concept in the chapter. 9ather than takin! the time to perform a problem:solution e6ercise, the solution se!ment may be shown to demonstrate how a company o ercame a specific problem. 5n this se!ment, H7E illustrates how it has kept and increased its iewership o er the years. 5t isn(t just out to sell. 5t is out to entertain.
Video Case Chapter 14 ()( Running time Intro: :5+ Problem: 2:21
Solution: 3:34 !otal: ":5+ Video Summar# ;or o er +- years, ?@? has put its well-known kitchen !ad!ets into almost e ery home in the Anited 7tates throu!h word-of-mouth, product placement, and other forms of non-traditional promotional techni&ues. 'hile ?@? is a leadin! national brand, it competes in product cate!ories that are small in size. 'ith its ti!ht ad ertisin! bud!ets, mass-media promotions are not feasible. This ideo demonstrates how ?@? is mo in! forward with its promotional mi6 throu!h online and social media campai!ns. ;or its Hood Hrips, 7tee2, %andela, Tot, and 7taples:?@? brands, ?@? is makin! e6tensi e use of the major social networks, e6pandin! into the blo!osphere, de elopin! online ad campai!ns, and more. 3fter iewin! the ideo featurin! ?@?, answer the followin! &uestionsF $uestions and %ns&ers ). 'hy has ?@? chosen to chan!e its promotional strate!y at this time? As D-9 Alex @ee points out, there is not return on investment with traditional mass(media advertising for 9:9. #hey need to make more efficient use of their promotional dollars. Social media provide for that. Also, there are new and innovative opportunities in online advertising that have driven 9:9 to pursue those options. Hinally, 9:9 has not spent the money necessary to test advertising effectiveness in the past. 9nline promotional efforts are cheaper to assess. +. *escribe ?@?(s o erall ad ertisin! strate!y? As described initially, 9:9 doesn"t advertise. !istorically, 9:9 has done very little direct(to(consumer advertising. As 7ena Shah points out, the company has relied more on 0A and word(of(mouth. )ts previous strategy was rather fragmented. 9:9 seemed to try things in a less strategic approach and then only continue them if something worked. Cow, 9:9 is more focused on online and social media. )t is putting efforts in to the ma1or social networks, blogs, and online ads. ". 5s ?@? abandonin! its old promotional methods? How is ?@? blendin! a new ad ertisin! strate!y with the promotional techni&ues that ha e made it a success? 7ecause 9:9 spent very little before, it is not apparent that the company is abandoning its old ways. #he company makes it clear that they have always focused heavily on generating word(of(mouth. #hey see social media as an extension of that strategy. So they are not abandoning efforts to create bu.. about 9:9 products. #hey are simply employing new methods.
!ea'hing Ideas The ideo case for ?@? follows a uni&ue format for ideos in the /earson 1ideo 2ibrary that accompany 3rmstron! and 4otler(s 8arketing$ An )ntroduction, ))e. 5t be!ins with an introductory se!ment, followed by a problem se!ment, and ends with a solution se!ment. The intention here is to pro ide fle6ibility and multiple options for usin! the ideo. The followin! are some of the ways that instructors may utilize these three ideo se!ments. ). 5ntroduction only - 5nstructors may choose to use the introduction se!ment alone as a means of hi!hli!htin! the company. 3s a stand-alone ideo, the introduction se!ment supplements material in many of the chapters of the te6t. 5n this se!ment, we are introduced to the fact that ?@? has ne er really en!a!ed in mass-media ad ertisin! for arious reasons. +. /roblem challen!e - The instructor may show the problem se!ment, either with or without the introduction se!ment, and with or without the solution se!ment. This may be done in the interest of time. 5t may also be done strate!ically. 3n ideal way to challen!e students is to re&uire them to de elop possible solutions to the presented problem before they ha e seen the solution se!ment. The instructor then has the option of whether or not to show the solution se!ment. 'hile ?@? is a major national brand, it competes in small product cate!ories. 3s a result, the return on in estment for the e6pense of mass-media ad ertisin! is not there. ?@? has to accomplish its promotional objecti es in other ways. ". 7olution only 8 This may be done to illustrate a specific concept in the chapter. 9ather than takin! the time to perform a problem:solution e6ercise, the solution se!ment may be shown to demonstrate how a company o ercame a specific problem. %learly, ?@? is doin! the best that it can with its a ailable resources. 7tudents should be challen!ed to consider whether or not ?@?(s promotional strate!y is sound and whether or not it will pro ide for the best future for the brand.
Video Case Chapter 15 *:trade /o'ation: ;enlo Par91 Cali5ornia Running !ime: 5: + Video Summar# 7uper Bowl @@@51, the first of the new millennium, was known as the *ot-com Bowl for the !lut of 5nternet companies that plopped down an a era!e of I+.+ million per "--second spot ad. ?ne darlin! of the dot-com era, 0Ptrade, remains one of the few sur i ors of the *ot-com bust. ?ne of the principal factors in its ability to hold on is a
successful ad ertisin! effort that has included 7uper Bowl ad ertisin! as a primary component. $uestions and %ns&ers ). 'hat has been the role of ad ertisin! at 0Ptrade? -ven before talking about the Super 7owl ads, Cicholas ?tton discusses the role of advertising in general at -Otrade. !e specifically points to a concept from chapter <', the A);A model 4awareness, interest, desire, action6. Aecogni.ing this as one of the core principals of developing ad messages is an important thing for students to notice. )n talking about this, 8r. ?tton points to how advertising is the uninvited guest as far as consumers are concerned. 7ut on the other hand, advertising can be the facilitator for engaging consumers with the brand. #hat is how -Otrade treats advertising. +. 'hat factors ha e played a role in 0Ptrade(s decision to ad ertise on the 7uper Bowl. #he first Super 7owl, Super 7owl &,,,, -Otrade recogni.ed that it is the one event in which viewers are fully engaged in not only the program, but the advertising. #his is an unparalleled characteristic of the program. -O#rade also recogni.ed the value of one of the biggest audiences in television events. A very important thing for students to recogni.e is, as pointed out by 8r. ?tton, the Super 7owl is extremely expensive and it must be approached both cautiously as well as with A9) in mind. #he message has to be compelling, engaging, and memorable. )t has to break through the clutter and engage viewers in a theatrical experience. ". 3nalyze 0Ptrade(s most recent 7uper Bowl ads. 5s 0Ptrade still !ettin! is money(s worth from 7uper Bowl 3d ertisin!? 06plain. !ea'hing Ideas This is a !ood opportunity to show other 7uper Bowl ads from o er the years. There are many sources for !ettin! ratin!s and !rades !i en to 7uper Bowl ads each year <Harfield(s B3d 9e iewC on Advertising Age is a !ood one=. 5t may be interestin! to choose some winners and some losers for arious years, show them, and ask how they stand up from a 7uper Bowl 9?5 perspecti e, as discussed in this ideo case. Video Case Chapter 1" ;edtroni' Running time Intro: 1: 5 Problem: 1:5+ Solution: 3:15
!otal: ":1+ Video Summar# Dany companies sell products that most customers can literally li e without. But the de ices that Dedtronic sells are a matter of life-and-death. /atient well-bein! depends upon the insulin deli ery de ices, implantable defibrillators, and cardiac pacemakers desi!ned and manufactured by Dedtronic. 5n some markets, se en out of ei!ht medical de ices in use are Dedtronic de ices. But what happens when you know you ha e a product that will help a !i en customer in terms of cost, time, and end-user well-bein!, but you can(t !et a foot in the door to communicate that information? This ideo demonstrates how Dedtronic sales representati es maintain a customer-centered approach to the personal sellin! process as a means for effecti ely communicatin! their product benefits. $uestions and %ns&ers ). How is the sales force at Dedtronic structured? Hrom the information presented in this video, we do not know about 8edtronic"s sales force structure. 7ut from outside information 4see http$FFonline.ws1.comFarticleFS7<,,,<'&',K&N'>N,',<*+,'KN+&'>N=*'=,&<,K* +.html6, we know that 8edtronic"s sales reps and teams are organi.ed by product group % in this case, cardiac and vascular products. #his, there is evidence for some aspect of a product sales force structure. !owever, it is likely that 8edtronic"s sales force structure is more complex than this. +. 5dentify the sellin! process for Dedtronic. Hi e an e6ample of each step. /hile it is not apparent from the video how 8edtronic addresses each step in the personal selling process, consider the following$ Prospecting and qualifying % at the very least, we know that ;omini3ue did research on the hospital. -nough to know that the contract that 8edtronic"s competitor had with the hospital was up for renewal. ;omini3ue verified that this client was worth the effort and expense. Preapproach % ;omini3ue clearly continued doing research on this client in order to establish all the potential barriers. Approach % ;omini3ue establishes that the physicians at the hospital were open to listening to what 8edtronic had to offer. Presentation and demonstration % #he things that we learn from this video are that ;omini3ue put a great deal of time and effort in to this aspect of the selling process. !e focused on 8edtronic"s advantages % a superior product, total cost savings, and mostly, on the service provided by 8edtronic. )t can be said that the presentation is carried out over time. ;omini3ue gained access to patients and to being present during a procedure. Handling objections % we don"t have a lot of specifics here. 7ut we know that ;omini3ue exhibited patience and focused on the service aspect of the company, on his own dependability, and on building the relationship.
Closing % for ;omini3ue in this case, this was the easy part. )n fact, because of the nature of the situation, ;omini3ue knew that all he could do was continue to pursue this client and make himself available. Aather than pressuring the client to sign a contract, he waited until they were ready. 9nce they were ready, they let him know. Follow-up % )t is also very clear that 8edtronic"s product is not one where the relationship with the sales rep ends after the sale. 0art of the product is its service. ;omini3ue clearly understands that. !is presence and service are continually available as part of the overall marketing offering. As the video points out, ;omini3ue doesn"t 1ust follow(up with hospital administration and physicians. !e follows up with patients. ". 5s Dedtronic effecti e at buildin! lon!-term customer relationships throu!h its sales force? How? 5f not, what could be impro ed? /ithout a doubt, ;omini3ue and 8edtronic get this. #he fact that he spent as much time with the client as he did before the client even agreed to a sale is evidence of this. #he sales effort took almost a year. 7ut everything that ;omini3ue did during this time was focused on long(term relationship building !ea'hing Ideas The ideo case for Dedtronic follows a uni&ue format for ideos in the /earson 1ideo 2ibrary that accompany 3rmstron! and 4otler(s 8arketing$ An )ntroduction, ))e. 5t be!ins with an introductory se!ment, followed by a problem se!ment, and ends with a solution se!ment. The intention here is to pro ide fle6ibility and multiple options for usin! the ideo. The followin! are some of the ways that instructors may utilize these three ideo se!ments. ). 5ntroduction only - 5nstructors may choose to use the introduction se!ment alone as a means of hi!hli!htin! the company. 3s a stand-alone ideo, the introduction se!ment supplements material in many of the chapters of the te6t. This introduction se!ment touches on the concepts of recruitment and trainin! of sales people as well as the nature of the product that Dedtronic sells. +. /roblem challen!e - The instructor may show the problem se!ment, either with or without the introduction se!ment, and with or without the solution se!ment. This may be done in the interest of time. 5t may also be done strate!ically. 3n ideal way to challen!e students is to re&uire them to de elop possible solutions to the presented problem before they ha e seen the solution se!ment. The instructor then has the option of whether or not to show the solution se!ment. 5n this se!ment, the barriers that sales representati es face are clearly outlined and e6plained. These barriers especially hold true for e6pensi e and comple6 business-tobusiness products. ". 7olution only 8 This may be done to illustrate a specific concept in the chapter. 9ather than takin! the time to perform a problem:solution e6ercise, the solution se!ment may be shown to demonstrate how a company o ercame a specific problem. This is a !reat se!ment to illustrate the importance of buildin!
relationships of trust with clients and potential clients. The ideo demonstrates how Dedtronic does this throu!h the personal sellin! process. Video Case Chapter 1+ 3ome Shopping 8et&or9 Running time Intro: 1:1" Problem: 1: 3 Solution: 4:1 !otal: ":3 Video Summar# 2on! a!o, tele ision shoppin! was associated with low-&uality commercials broadcast in the wee hours of the mornin! sellin! obscure merchandise. But Home 7hoppin! Eetwork <H7E= has played an instrumental roll in makin! tele ision shoppin! a le!itimate outlet. 3round the clock top-&uality pro!rammin! featurin! name-brand merchandise is now the norm. But just like any retailer, H7E has had it share of challen!es. This ideo illustrates how H7E has focused on principles of direct marketin! in order to o ercome challen!es and form stron! customer relationships. 3s market conditions continue to shift, H7E e6plores new ways to form and stren!then direct relationships with customers. $uestions and %ns&ers ). 06plain the different ways that H7E en!a!es in direct marketin!. As defined by the text, direct marketing involves connecting directly with consumers in a way that cultivates both a response and a relationship. As far as the different forms of direct marketing, !SC is involved in direct(response television marketing, online marketing, mobile device marketing, and forms of telemarketing. +. 'hat ad anta!es does H7E specifically o er brick-and-mortar retailers? )t is getting more and more difficult to identify retailers that are only brick(and( mortar. 8ost chains are involved in multiple channels. #o some extent, that includes online retailing. 7ut !SC has advantages over regular brick(and(mortar and more traditional e(commerce retailers in that it is not 1ust a retail outlet. )t is a form of entertainment. So, as consumers shop, they are watching a television program. 0eople become involved with and attached to the shows and hosts, 1ust as they would with other television programs. !SC is also reaching consumers through more channels than most retailers 4television, online, mobile, etc.6. ". Dake recommendations for how H7E could make better use of its role as a direct marketer. Aesponses to this 3uestion will vary. 7ut students should consider 1ust how well
they believe !SC is doing in applying its self(proclaimed solution of expanding its content to all digital channels. !SC has a strategy for )nternet and for mobile. !owever it is not entirely clear to what extent !SC is making its programming available through those channels. )t is very clear that the way people are watching television is changing. And at some point, television as we know it today may not exist. )t isn"t clear that !SC is fully preparing itself for the possibility that watching television may be gone at some point. 8any of the tactics that !SC is developing for online and mobile still re3uire the consumer to be sitting in front of a television to be exposed to !SC programs. !SC should be pioneering new ways for viewers to access programs !ea'hing Ideas The ideo case for H7E follows a uni&ue format for ideos in the /earson 1ideo 2ibrary that accompany 3rmstron! and 4otler(s 8arketing$ An )ntroduction, ))e. 5t be!ins with an introductory se!ment, followed by a problem se!ment, and ends with a solution se!ment. The intention here is to pro ide fle6ibility and multiple options for usin! the ideo. The followin! are some of the ways that instructors may utilize these three ideo se!ments. ). 5ntroduction only - 5nstructors may choose to use the introduction se!ment alone as a means of hi!hli!htin! the company. 3s a stand-alone ideo, the introduction se!ment supplements material in many of the chapters of the te6t. 5n this se!ment, it is apparent that there is far more to H7E than most people realize. +. /roblem challen!e - The instructor may show the problem se!ment, either with or without the introduction se!ment, and with or without the solution se!ment. This may be done in the interest of time. 5t may also be done strate!ically. 3n ideal way to challen!e students is to re&uire them to de elop possible solutions to the presented problem before they ha e seen the solution se!ment. The instructor then has the option of whether or not to show the solution se!ment. 5n this se!ment, H7E confronts a real problem faced by any and e ery tele ision network. The way people watch tele ision pro!rams is chan!in!. 5t will undoubtedly be ery different in another decade. 5t is possible that at some point, tele ision as we know it will not e6ist. ". 7olution only 8 This may be done to illustrate a specific concept in the chapter. 9ather than takin! the time to perform a problem:solution e6ercise, the solution se!ment may be shown to demonstrate how a company o ercame a specific problem. H7E must adapt to the new and chan!in! en ironment. 5n this se!ment, H7E e6plains how they are doin! that. 7tudents should be challen!ed to e aluate whether or not they belie e H7E(s efforts !o far enou!h. Video Case Chapter 14 <mp=ua 2an9 /o'ation: Roseburg1 (regon
Running !ime: 4:3" Video Summar# The retail bankin! industry has become ery competiti e. 3nd with a few powerhouses that dominate the market, how is a small bank to thri e? By differentiatin! itself throu!h a competiti e ad anta!e that the bi! !uys can(t touch. That(s e6actly what Amp&ua has done. ?ne step inside a branch of this ?re!on-based community bank and it is immediately apparent that this is not your typical %hristmas club sa in!s account:free toaster bank. Amp&ua has created a business model that has transformed bankin! from retail drud!ery to a holistic e6perience. Amp&ua has created an en ironment where people just lo e to han! out. 5t not only has its own music download ser ice featurin! local artists, it e en has its own blend of coffee. But under all these bells and whistles lies the core of what makes Amp&ua so differentF a ri!orous ser ice culture where e ery branch and each employee !ets measured on how well they ser e customers. That(s why e ery customer feels like they !et the help and attention they need from employees. $uestions and %ns&ers ). 'ith what companies does Amp&ua compete? #he video does not directly address this information. !owever, because of the banking services offered by ?mp3ua, it remains that its primary competitors are other banking organi.ations. 9ne might recogni.e that the primary competition may come from regional banks and credit unions. 0eople who are more likely to prefer a non(global, large corporation would be more open to choosing ?mp3ua. 7ut there is also a strong case for such banks as competitors, given that ?mp3ua"s competitive advantage offers a drastic alternative to the business(as( usual approach of such banks. +. 'hat is Amp&ua(s competiti e ad anta!e? 7anking has been fundamentally the same for K,, years. ?mp3ua has differentiated itself as a service organi.ation, not a banking organi.ation. )t has taken best practices from industries like restaurants and hospitality and applied them in the banking environment. Cot only is this rooted in how each employee treats and serves customers, but it is based on the experience the customer has when it engages in ?mp3ua"s customer interface. #his includes all the aspects that make ?mp3ua"s retail outlets feel like a place that customers want to hang out as well as those non(banking features on ?mp3ua"s /ebsite. ". *o you think that Amp&ua will be able to maintain this ad anta!e in the lon! run? 'hy or why not? 7ased on the information in the case, ?mp3ua should be able to maintain its competitive advantage. A couple of things that are typically considered when assessing the longevity of a competitive advantage are$
Can the competitive advantage be copied /hile it might seem likely that someone else would copy this, the root of ?mp3ua"s success with its holistic strategy is in the corporate culture. Co company could pull something like this off without a culture that is completely entrenched in the concept. #hus, this makes it less likely to be copied. Can the company continue the competitive advantage without running in to cost issues According the video, ?mp3ua"s strategy doesn"t cost any more than any other strategy. )t"s simply a matter of choice, design, and execution. !ill the customer environment change such that customers are no longer drawn to the competitive advantage #his is always an uncertainty. !owever, it is probably safe to say that banking customers would rather step in to an environment like that at ?mp3ua than that at traditional banks and that there is no foreseeable reason that this would change. !ea'hing Ideas Ha e students brainstorm a list of ser ice industries where there is a norm for the type of offerin! presented across or!anizations. Then, ha e them consider whether or not there is a company that has done what Am&ua has doneJ that is, bucked the system by de elopin! a ser ice model that breaks the boundaries of the industry. 5f one does not e6ist, ha e them su!!est some type of alternati e that a company mi!ht pursue.
Video Case Chapter 16 !he <>S> ?ilm Industr# Running time Intro: 2: Problem: 1:54 Solution: 3:14 !otal: +:12 Video Summar# 5f you like mo ies, you( e no doubt seen a forei!n film at some point. But did you know that 3merican films are some of the bi!!est and most anticipated forei!n films in the world? 5n fact, forei!n bo6 office and *1* sales account for nearly K- percent of all re enues for the A.7. film industry. 'ith that much financial impact, forei!n markets are playin! a bi!!er and bi!!er role not only in the pricin!, distribution, and promotion of A.7. films, but in the product itself. This ideo illustrates the challen!es faced by the A.7. film industry stemmin! from differences in the marketin! en ironment throu!hout different international markets. The result is that this industry is now like any other e6port industry. The marketin! mi6 must be adapted at an optimum le el in order to meet the needs of !lobal markets while still maintainin! the benefits of standardization.
$uestions and %ns&ers ). 'hich part of the marketin! en ironment seems to be ha in! the !reatest impact on A.7. films abroad? )t would seem that the cultural environment has the greatest impact. Hinding a formula for a film that appeals to the tastes of film(goers everywhere is tremendously difficult, given the ma1or differences in cultural characteristics. #he political(legal environment can also make or break a film 4in some cases, ?.S. films are extremely limited or even prohibited6. 7ut that barrier aside, the cultural issues are always present. +. 'hich of the fi e strate!ies for adaptin! products and promotion for the !lobal market is most rele ant to the A.7. film industry? Hrom what Iray Hrederickson shares in this video, ma1or filmmakers today adapt both the product and the communication strategy. #hus, dual adaptation is the strategy that is most relevant. ". 5s the A.7. film industry now dependent upon forei!n markets for success? %ompare the e6port of A.7. films to other A.7. e6ports. As Iray Hrederickson points out, the cost of producing films today is very high in most cases. #his is because of the increases in salaries and fees paid to actors, the cost of modern technologies, and the increases in promotional expenses. )n the old days, the industry did not need foreign box office revenue to be profitable. #hat was merely icing on the cake. !owever, today, it is clear that the industry as a whole is dependent upon foreign markets. )n numerous cases, ?.S. box office revenue alone is not sufficient to break even. !ea'hing Ideas The ideo case for the A.7. film industry follows a uni&ue format for ideos in the /earson 1ideo 2ibrary that accompany 3rmstron! and 4otler(s 8arketing$ An )ntroduction, ))e. 5t be!ins with an introductory se!ment, followed by a problem se!ment, and ends with a solution se!ment. The intention here is to pro ide fle6ibility and multiple options for usin! the ideo. The followin! are some of the ways that instructors may utilize these three ideo se!ments. ). 5ntroduction only - 5nstructors may choose to use the introduction se!ment alone as a means of hi!hli!htin! the company. 3s a stand-alone ideo, the introduction se!ment supplements material in many of the chapters of the te6t. This introduction introduces us to the idea that !lobal marketin! of Hollywood mo ies is a relati ely recent practice. +. /roblem challen!e - The instructor may show the problem se!ment, either with or without the introduction se!ment, and with or without the solution se!ment. This may be done in the interest of time. 5t may also be done strate!ically. 3n ideal way to challen!e students is to re&uire them to de elop possible solutions to the presented problem before they ha e seen the solution se!ment. The instructor then
has the option of whether or not to show the solution se!ment. This se!ment makes clear arious challen!es that all !lobal marketers face. ". 7olution only 8 This may be done to illustrate a specific concept in the chapter. 9ather than takin! the time to perform a problem:solution e6ercise, the solution se!ment may be shown to demonstrate how a company o ercame a specific problem. This se!ment also translates to irtually all companies in all industries. %ompanies are concerned about the cost benefits of standardization, but also seek the ability to cater to the needs of different customers in different countries. The best approach to balancin! these two approaches is to desi!n the product for a !lobal market from the be!innin!. Video Case Chapter 2 /i5e Is .ood Running time Intro: 1:34 Problem: 2:1 Solution: 3:33 !otal: +:22 Video Summar# Dost companies these days are tryin! to fi!ure out how they can be more socially responsible in manufacturin! and marketin! of !oods and ser ices they produce. But few companies produce !oods and ser ices with the primary purpose of makin! the world a better place. 2ife 5s Hood is one of those companies. Dost people are familiar with the cheerful lo!o on 2ife 5s Hood products. But few are aware of what the company does with its profits behind the scenes. This ideo focuses on 2ife 5s Hood /laymakers, a non-profit or!anization dedicated to helpin! children o ercome life-threatenin! challen!es. ;rom the time 2ife 5s Hood started sellin! t-shirts in the early )GG-s, its founders supported /laymakers. The relationship between the two or!anizations pro!ressi ely became stron!er, ultimately leadin! 2ife 5s Hood to make /laymakers an official branch of the company. $uestions and %ns&ers ). Hi e as many e6amples as you can for how 2ife 5s Hood defies the common social criticisms of marketin!. High advertising and promotional costs % @)I doesn"t advertiseP "hoddy# harmful# and unsafe products % 1ust good 3uality apparel. Too few social goods % the entire mission of @)I is built around the 0laymakers foundation. Selling apparel is simply the means to that end. +. *iscuss how 2ife 5s Hood practices sustainable marketin! principles. #his video focuses on the socially responsible practices that are at the core of @)I. 7ert Bacobs admits that this is not what has built the business. )t is the
3uality apparel with great graphics, communicating a message of optimism. Cow, as @)I attempts to educate the world about the things that are at the core of the @)I mission, 7ert believes that this will have the effect of causing all oars to rise. )n other words, educating people on what @)I is about will only serve to make people more socially aware. #hat in turn will lead them to seek products from socially responsible companies. ". 'ith all its efforts to do !ood, can 2ife 5s Hood continue to do well? 06plain. @)I"s main goal is to sell people on the true purpose of the company % to support the causes championed by the 0laymakers foundation. 9nly one in K, of @)Is customers know what the company is all about. So, it is @)I"s goal to inform the other '=. )f the company is already doing well, it would seem that informing customers if its very deep roots in social responsibility will only serve to create a great customer(brand bond and to ultimately sell more merchandise. !ea'hing Ideas The ideo case for 2ife 5s Hood follows a uni&ue format for ideos in the /earson 1ideo 2ibrary that accompany 3rmstron! and 4otler(s 8arketing$ An )ntroduction, ))e. 5t be!ins with an introductory se!ment, followed by a problem se!ment, and ends with a solution se!ment. The intention here is to pro ide fle6ibility and multiple options for usin! the ideo. The followin! are some of the ways that instructors may utilize these three ideo se!ments. ). 5ntroduction only - 5nstructors may choose to use the introduction se!ment alone as a means of hi!hli!htin! the company. 3s a stand-alone ideo, the introduction se!ment supplements material in many of the chapters of the te6t. The introduction of this 2ife 5s Hood ideo clearly illustrates not only the ori!ins of the company, but how the brand ima!e re ol es around the concept of optimism. +. /roblem challen!e - The instructor may show the problem se!ment, either with or without the introduction se!ment, and with or without the solution se!ment. This may be done in the interest of time. 5t may also be done strate!ically. 3n ideal way to challen!e students is to re&uire them to de elop possible solutions to the presented problem before they ha e seen the solution se!ment. The instructor then has the option of whether or not to show the solution se!ment. 5t isn(t easy for a company that is founded on principles of social responsibility to make money. Howe er, it is ery clear from listenin! to Bert Nacobs that this company is already doin! well. Thus, spreadin! the word on its mission should only ser e to help the company e en more. ". 7olution only 8 This may be done to illustrate a specific concept in the chapter. 9ather than takin! the time to perform a problem:solution e6ercise, the solution se!ment may be shown to demonstrate how a company o ercame a specific problem. This final se!ment illustrates how 25H is focusin! on educatin! their customers on the company(s true mission.

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Video Case Chapter 1 Zappos Running time Intro: 1:44 Problem: 1:25 Solution: 3:1 !

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