ustomer

'ners for
'r (New
1, Total
): Row,
ing the
siness,

the FTC guidelines. In such cases, firms hope that the

state would defer to the FTC. But, who knows?
With all the problems of green marketing, you
might ask "Is it worth it?" The answer is yes. Companies
that ignore environmental issues invite stiff fines, add
to the current lack of confidence in business, and miss
out on the substantial long-run rewards that can result
for firms that build carefully crafted environmental
marketing platforms now.
QUESTiONS

1. How does green

,
en1tal
be
llalllt
ies
.siJal
:m
el\.1at

eer
y
d
Y
j

marketing

illustrate the societal market-

ing concept?
2. How will economic conditions and regulation affect each
group of green consumers?

3. What goals of the marketing system does environmental

marketing meet? With which ones does it conflict?
4.

How can firms enhance the credibility of their environmental marketing efforts?

S. What impact do you think the FTCguidelines will have?

Sources: Howard Schlossberg, "Innovation

Seems to EIude 'Green Marketers,'" Marketing News, April 15, 1991, pp, 16, 20; Joseph M. Winski,
"Green Marketing: Big Prizes, but No Easy Answers," Advertising Age, October
29, 1991, p. GR3; Carl Frankel, "Blueptint for Green Marketing," American
Demographics, April 1992, pp. 34-8; Steven Colford, "FTC Green Guidelines
May Spark Ad Efforts," Advertising Age, August 3, 1992, pp, 1, 29; Robert
Gillespie, "Pitfalls and Opportunities for Envtronmental Marketers," Journal
of Business Strategy, July-August 1992, pp. 14-17.

DOOR GUARD: TRYING TO MAKE

A DENT IN THE MARKET
"Hey, Steven!"
Steven Harris looked up to see Todd Smith striding
across the student parking lot at the University of South
Carolina.
.
"Hello, Todd!" Steven responded as he finished
locking his car door.
"Are you going over,to the registrar's office to pick
up your class schedule and register?" Todd asked as he
neared the car.
;,
"Yeah, guess I've got to do it. I'm not too excited
about starting school again, even though we are seniors.
I had a great summer."
"Wow! Is this your car?" asked Todd, admiring the
new red Mustang convertible.
"You've got it. That's one. r~ason my summer was
so good. This was the third year<that I've worked with
my brother's yard maintenance service in Myrtle Beach.
Not only did have a good time, but with the money I
saved from the thre~summers I was able to buy this

car,"

>

"I'm impressed. I notice you parked way out here

away from any other cars."
"You bet. It didn't make much difference with my
old Chevy, but I sure don't want thoughtless people
denting the' sides of my new car. People really dented
the sides of myoId car, especially in these student parking lots with their narrow spaces,"
"I know what you mean," responded Todd, "I got
here yesterday and stopped at student housing to pick up
my dorm room key. I purposely parked diagonally across
two spaces to protect my car. Iwas only in the office a few
minutes, but when I came out a campus cop was writing
me a $20 ticket! He wouldn't tear it up either."

"What a way to start a new year!"

"You know/, added Todd, "there ought to be a law
against banging doors into other people's cars. Or someone should come up with some way to protect car
doors. Those rubber strips that manufacturers 'Put on
never seem to be in the right place." .
"I agree," replied Steven, "or maybe cars should
have a device that automatically dents the other car in
return. Maybe that would make people more careful!"
Steven and Todd both laughed at the thought of
such a device and began to dream up other wild ideas to
solve the problem as they walked toward the registrar's
office.
Over the next .several days, Steven found himself
thinking more and more about the problem of preventing
side-panel damage. He had always been a tinkerer, and he
had fairly well developed mechanical instincts. With the
job outlook for college graduates in the doldrums, an entrepreneurial venture began to look attractive.
In his marketing class, Steven had learned how
companies develop new products, and this semester he
expected to learn about business start ups in his smallbusiness management class. With this exposure and his
knack for tinkering, perhaps he could develop and market a product for the automotive market.
Steven remembered one of his professorstliscussing the success of the people who had launched Auto Shades, the cardboard panels used behind auto windshields to keep cars cool. AutoShades' inventors had
succeeded because their product really worked. Further,
because they could print on the panels, companies
could use the product as a sales-promotion tool. Steven
believed that if he could design a device to protect car
CHAPTER

MARKETING

IN A CHANGING

WORLD

27

_II."

Material Costs

M200 foam panel

$2.90 per panel

Fabric covering

.75 per sq. yd.-

Magnets

.30 per ft.

Cable

.15 per ft.

.50 per panel

Misc. (screen print, packaging)

1.50 per panel

Assembly
Cost per panel
M200 )2" l' x 4'

$2.90

Material 1 )2 sq. yds.

1.12
.90

Magnets 3'
Cable 3'

:>ped
lei

.45
.50.

Misc.

LSO

Assembly

I would
ir. On a

Total

ing the
me, ex:If, but
might
ult, he
:apped
oducts
zation
I print

'tennga
)till,
22.8
per:ent
'od~
ven

"'

$14.74

Retail price per set*

$29.95

*100 percent

.dered
r had
jevelon a
mels,
little
retail
ed,
what

7.37

Cost per set of two panels

markup

on cost

wasn't certain what portion of the car owners would

purchase the new product. AutoShades appeared to be
about the only close comparison, but there was a huge
cost difference: AutoShades cost from $1.49 to $6.00,
whereas DoorGuard would cost nearly $30.00. Many
companies gave away sun shades as advertising specialties; few companies would do the same with. DoorGuard.
Still, Steven beFeved that DoorGuard targeted a
wide-open market and that with the right marketing approach DoorGuard would be a winner. He knew that
last year's new car sales in the United States totaled
~- 9,853,000. Few new-car buyers purchased factory-installed body-protection packages, instead choosing
fancy radios, air conditioners, cruise control, and other
options. Steven felt that a person paying $15,000 or
more for a car would pay a reasonable price to protect it.
This helped to explain the s~ccess of AutoShades. Sales
had started slowly for the initial sun shade-a piece of
plain cardboard. But once the creators added graphics
and messages tQ. their products, AutoShades' sales
heated up. In 1988, sales exceeded $20 million.
Steven dreamed about such spectacular sales results for DoorGuard. If he could capture just 5 percent
of the new-car market, he would be selling nearly
500,000 sets. And sales to only 5 percent of the owners
of the ,122,800;000 cars on the road would generate
sales of; more than 6,100,000 DoorGuard sets. With
such heady potential in mind, Steven began to think
through the details of introducing DoorGuard.
The Marketing Approach
Proceeding cautiously, Steven consulted a local patent
attorney who informed him that she would have to
conduct a patent search before applying for the patent.
The search would cost him $500 and the application
process another $1,500 to $2,000.
Strapped for cash, Steven looked for a less expensive alternative. He found that anyone could perform a

,.>

patent search. Every state has a depository for patents.

All he had to do was visit a depository and conduct a
computer search to see if any similar patents existed.
Steven also learned that it took an average of two years
for the patent office to approve a patent. During that
period a competitor could copy and sell the product. Although inventors could sue the competitor after the
patent office issued the patent, many inventors had insufficient funds to bring suit. Steven decided, however,
to seek the patent on his own.
Steven next considered three different approaches
for distributing the product. First, Steven thought that
he might interest a national retail chain, such as Sears
or K Mart, in carrying the product-both
had large
auto-supply departments. When he considered catalog
sales, two catalog companies came to mind as potential
distributors-Sharper Image and BrookStone. These catalogs reached people who could afford to purchase
DoorGuard. Catalog companies had lower overhead
and, therefore, lower markup. Finally, Steven considered selling direct to large companies such as' R. ].
Reynolds or Anheuser-Busch who could offer the product as an advertising specialty or premium item. If car
owners accepted DoorGuard' as readily as they had accepted AutoShades, these companies could tap a large
market. Furt:i?-ermore,because of their associations with
auto racing, these companies might have a strong interest in the product. Steven wondered which of these distribution avenues would be best, or if he should consider others.
When Steven returned from class late one Thursday afternoon, he felt tired but excited. With the pressures and costs of his senior year, Steven's time and resources were scarce. Despite all of his development
work, DoorGuard was still just an idea. He realized that
he had no concrete notion about how to proceed. He
knew that DoorGuard could be a great product but now
realized how complicated it would be to take the idea to
the market. He pulled out his yellow legal pad and
started a new list of things he needed to do on the project. He glanced out the window at his new car, parked
in the far comer of the parking lot. Steven smiled to
himself. "Still no dents," he thought, "and I'm going to
keep it that way."
QUESTIONS
1. What consumer needs and wants does DoorGuard satisfy?
2. Which of the marketing management philosophies discussed in the text is Steven Harris following?
3.

If, as the text indicates, a market is "the set of ac:tual and

potential buyers of a product," what market does Steven
wish to serve with DoorGuard?

4. What problems does Steven face? Has he forgotten to consider anything?

S. What recommendations would you make to Steven Harris?
How can he adopt the marketing concept? What items
should he put on his marketing "to-do" list?
Source: Adapted from "DoorMate: A New Product Venture" by Thomas H.
Stevenson, University of North Carolina at Charlotte. Used with permission
of the North American Case Research Association and Professor Stevenson.
CHAPTER

MARKETING IN A CHANGING WORLD

29

doors that also served an advertising function, he too

could be successful. He began to think more seriously
about developing such a product.
The Product
Seeking practical new ideas for product concepts, Steven
mentioned his project to a friend, a recent graduate
with a .degree in mechanical engineering. The engineer
suggested a panel, perhaps made of rubber, that would
attach to the outside of the car door. The panel would
have to be lightweight, impact resistant, and waterproof. Steven bought a panel of natural rubber and
began experimenting. However, after spending many
hours on this prototype, he discovered that a section of
rubber large enough to protect the doors would be very
expensive and would weigh over 50 pounds.
Finally, after talking to numerous suppliers of resilient materials and visiting several trade shows, Steven
found a unique foam that showed promise. Manufactured by a local firm, MiniCell 200 (M200) was lightweight, impact absorbent, and relatively thin (1/2 inch).
The driver could roll it up for easy storage. M200 also
had several drawbacks, however. It was expensive, could
not be exposed to sunlight, and tore easily.
Steven thought he could resolve these problems
by finding a fabric cover for the foam. He experimented
with a material that had a sunlight blocker and high
tear resistance, and came in a variety of colors. However, the material did not readily accept screen printing,
an attribute that Steven believed to be necessary for the
project's success. Steven dispIssed this problem with the
manufacturer. Several weeks later, the manufacturer had
developed a new way to treat the material so that it accepted printing. The material would cost 75 cents per
square yard.
Having worked his way through the covermaterial issue, Steven began experimenting with methods for attaching the panel to a car. He knew ease of use
would be critical to his product's success, as it had been
for AutoShades.~Steven finally decided to use magnets,
which could be..easily attached to the foam, making the
product easy to use. Equally important, the magnets
cost only about 30 cen~ per foot.
Steven also spen'!: an entire afternoon selecting a
name for the product. He evaluated several names, such
as DoorGuard, DDent, DentGuard, AbsorbaDoor, and
DoorMate. On pure instinct, he chose DoorGuard.
Steven now had a name, but he realized that he
still did not have a completed product. If he used only
the magnets \'0 attach the product to a door, what would
prevent someone from stealing the panels? After trying
s~Yeral unsuccessful theft-prevention ideas, Steven settled on a cable that attached to the foam panel. After attaching the DoorGuard panel to the door, the user
would toss the other end of the cable inside the car, then
dose and lock the door. Anyone who tried to steal the
device would tear the panel, making it useless. The cable
cost 15 cents per foot, and he would need 3 feet per
panel. See Exhibit 1-1 for a DoorGuard schematic.
Steven believed he had now developed the perfect
product. It absorbed impact from other car doors resisted theft and water damage, stored easily in the u'unk
or back seat, and accepted screen printing. Exhibit 1-2

28

---~

PART I

UNDERSTANDING

MARKETING

AND THE MARKETING

EXHIBIT 1-1
Schematic

of DoorGuard

. ;

'J

Magnet

.~
"

Fabric-wrapped
foam panel

illustrates a DoorGuard panel in use. DoorGuard would

extend slightly beyond the door on a two-door car. On a
four-door car, it would just cover both doors.
Steven next turned his attention to -produdng the
new product. He knew that he did not have the time, experience, and money to make the product himself, but
he was c.oncerned that contract mailUfacturers might
charge too much to produce DoorGuard. As a result, he
approached organizations like Jobs for the Handicapped
and Goodwill Industries that might assemble products
less expensively. He eventually found an organization
that could do everything needed to assemble and print
one set of two panels for between $3 and $4.
Almost

as an afterthought,

- Steven

considered

price. Remembering that his marketing professor had

discussed cost-plus pricing in dass last year, he developed a schedule of costs (see Exhibit 1-3). Based on a
total cost of $14.74 per complete set of two panels,
Steven used a 100 percent markup on cost (and a little
psychological pricing) to arrive at a suggested retail
price of $29.95 per set. Now that he had designed,
named, and priced the product, Steven considered what
market he would attack.
The Market
Steven knew that he should research the market potential, but believed that he had little basis for developing a
reasonable estimate of DoorGuard's sales potential. Still,
using secondary sources, he found that there were 122.8
million cars in use in the United States. nearly 80 percent of these cars were at least three years old; 50 perce,nt
were at least six years old. Because there were no products comparable to DoorGuard on the market, Steven

!I

~
.~
/Ii

EXHIBIT1-2

Illustration of DoorGuard in Use

.j
;;

J
~

j
11

PROCESS