MKTG 25010 Marketing in the news Lectures 4 &5
MKTG 25010 Marketing in the news Lectures 4 &5 MKTG - 25010 - 003
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This 4 page Class Notes was uploaded by Kathryn Notetaker on Wednesday September 23, 2015. The Class Notes belongs to MKTG - 25010 - 003 at Kent State University taught by Lawrence J. Marks (P) in Fall 2015. Since its upload, it has received 25 views. For similar materials see PRINCIPLES OF MARKETING in Marketing at Kent State University.
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Date Created: 09/23/15
Marketing in the News Week 3 Lecture 491415 O 90 O 66 How discount retailer Primark ahs evaded ecommerce gt Affordable UK retailer Primark opened a new 77000squarefoot department store last week in Boston introducing the US to its extremely lowcost apparel accessories and home goods for the rst time global competition it39s also introducing the US to its unique approach to digital Primark39s products are so deeply discounted the company refuses to sell them online retail marketing strategy John Bason the chief nancial of cer of Primark39s parent company associated British foods has said the ecommerce is quotnot pro table avenuequot A rep con rmed that Primark has no plans to begin selling online its current website displays recent products for men women and kids but not for purchase Any company opting out of the digital shopping experience in 2015 risks appearing clueless But for a retailer that sells high volumes of 10 jeans 5 ballet ats and more items for mostly under 30 price points even lower than Forever 2139s with extremely quick turnover keeping business rmly within the con nes of Brickandmortar isn39t a death sentence in fact it39s a lifeline quotPrimark has historically steered clear of ecommercequot said Lucie Greene worldwide director of the innovation group at Walter Thompson quotThe price points of its clothing and products are so low it doesn39t make sense Greene explained that the cost of shipping an item for primark could top the price of the item itself and that rapid turnover of styles like other fast fashion companies Primark39s strength is in quickly replicating trending designs would make online returns problematic quotIt would be operationally hugely expensive and dif cult and not necessarily worth it when you consider the margins she said quotPrimark is a volume businessquot With its Boston store now open the retailer will test whether or not a strictly of ine retail model will resonate with American shoppers the same way it has in the UK will global expansion work quotas isquot or need to be adapted Primark at least so far in Europe has found itself in a rare situation for a 2015 retailersteering clear from spending resources on ecommerce while still ourishing nancially The hot startup taking on amazon says your head will explode when you see how cheap prices are gt Jet the hot new ecommerce site that promises to undercut Amazon on prices just released its rst television ad lauding itself as the quotbiggest thing in shopping sinceshoppingquot new quotProductquot introduction competition the company which started its print and outdoor ad campaigns earlier this summer has said that it plans to spend 100 million on marketing over the next year the ad claims that jet39s bigger than credit cards cash registers the barter system and shows people39s heads exploding in puffs of purple smoke when they nd out how much they can save on the site Jet says it can offer customers prices that are 10 to 15 lower than competitors by using a Costcoesque model Instead of making money on individual product sales it reels cash through its 50ayear membership fee It intends to keep its prices low through a dynamic pricing model that adjusts order costs in realtime according to factors like how many ordered products are in the same warehouse the distance an order has to travel for delivery the kind of payment used and whether the customer elects to forgo their right to a return pricing as a marketing tactic GoPro39s digital marketing is even more extreme than you imagined gt From humble beginnings as a bulky 35 mm camera to becoming one of the most successful tech gadgets in the marketplace GoPro s rise has been as extreme as its customers39 need for adventure Today the top 5 best selling digital cameras and camcorders are all GoPros according to NPD group It39s rare that we see a product completely change a category let alone change how people travel and document their lives but as one observer wrote last year quotGoPro has gone from being a niche tech brand to an almost unprecedented digital chronicler of life in all its formsquot A successful new product for marketers the biggest surprise is how GoPro got to where it is with a simple crosschannel strategy on a shoestring budget renowned as one of the internet39s most social brands gopro only spent incrementally 50 k here 40 k there Yet GoPro dominates YouTube39s brand leaderboard approaching one billion total views So how did this camera brand get so far ahead of the pack importance of social media marketing and brand community in marketing GoPro relies on crosschannel marketing to bring together camera brandishing customers inhouse curators and strategic partners User generated contentUGC acts as the engine that powers the company39s marketing allowing it to easily engage with its massive social following over 20 million followers across Facebook lnstagram Youtube and Twitter like a media company rather than an electronics company That may seem like circumstantial luck but there39s a lot for marketers to learn from GoPro and apply to their brand39s think tank relationship marketing Thanks to this wealth of user content uploaded to social media 39 years worth in 2014 alone goPro receives a remarkable amount of data on its users and products and relies on this to make channel speci c adjustments wise use of quotBIG DATAquot to appeal to customer segments For example its Pinterest page leads with photos of quotFamily Timequot and quotlovequot while its subreddit targets a more DIY inclined audience with tips tricks and guidance on how to get the most out of your camera Even its slogan quotBe a Heroquot Gopro capitalizes on an opportunity to cast a wider net including in its targeting not only the extreme daredevil but also the everyday curious consumer gt GoPro s stockpile of data has also helped it spread the data love through partnerships with XboxRokuVessel and Virgin America inFlight gt Viewers on goprocom can easily click into info about the speci c camera used in the creation fo a video gt Using the most popular and powerful marketing medium to date consumers are 27 times more likely to click through online video ads than standard banners GoPro reaches potential customers with a blitz of exciting and engaging content all ampli ed by datainformed promotion across social channels The brand effectively blurs the lines between what39s created by them and what39s created by their users resulting in a seamless experience for customers in search of the extreme Lecture 591615 00 How Vegetables used marketing to get into the foodporn game gt when it comes to food marketing brands have gone all in on foodporn which is used to caption 39provocative images of food on social media one of the most popular hashtags on lnstagram foodporn provides marketers with an opportunity to gather data that can be used not just on social but across other marketing channels as well importance of social media and data collection to marketing gt ex the carrot company bolthouse farms recently devised a campaign to get its healthy produce in front of the foodporn crowd launched Urwhatupost last year with a chart that compares the volume of healthy vs unhealthy food images on social found that quotjunk foodquot searches were outperforming healthy food searches bolthouse took this data and paved an unusual path to market its fresh fruit and veggies with the goal to turn a popular social media trend into a useful marketing tool that promotes vegetables with the same irresistibility as chocolate cake or an ice cream sundae customer involvement and relationship building gt bolthouse farm39s IG is over owing with images of summer quotpizzasquot green juice cocktails banana chocolate popsicles and other delicious snacks that motivate consumers to eat a little bit healthier campaign wasn t just social media goodwill there was an underlying marketing objective bolthouse built a mobile couponing system that uses image recognition tech to reward consumers posting pictures of their healthy foods this innovative directresponse tactic turned those 39provocative images into a full edged promotion tool using social media for promotion in innovative ways gt analyzing hashtags and trends for marketing insight is nothing new but only recently have techfroward brand have been able to apply data to their crosschannel campaigns in meaningful ways gt adobe social for example allows marketers to aggregate social data and segment consumers by say a particular hashtag and then optimize with O 0 VVgt media optimizer this type of multilayered execution has helped brands effectively target customers with the right creative gt witnessing the success of foodporn and other industryspeci c hashtags smart companies are learning how to quickly capitalize on social trends how a vegetable brand found its way into a conversation dominated by unhealthy food by gathering data from one social channel39s activity brands are applying insights across channels in innovative ways importance of social media and data collection to marketing bercrombie ampFitch is cool again Abercrombie and Fitch has apparently executed a turnaround the new selection of women39s clothes on the website marks a departure from the preppy clothing that had given the brand a band reputation and led to sales plummeting importance of brand image repositioning the brand brand is not reinventing itself by offering trendy minimalist designs brands must track and satisfy changing consumer tastes the brand is embracing contemporary trends like chambray shirt dresses some women are already responding even the respected and very popular fashion blog Man repeller has con rmed that quotAbercrombie and Fitch may be the comeback kid of 2015 but for a brand that once pushed away its customers by strategically making others feel excluded this new openarms style similar to zara or HampM come in on a whim and possibly leave with an out t for tonight is a smart move it will cause nostalgic shoppers and potential new buyers to pause by that intoxicating blend of too much cologne and too much music and think quotWhy not lets go inquot positioning the brand gt the new selection proves that Abercrombie is beginning to truly turn the brand39s reputation around Interactive coke ad in a subway station winks and smiles when you do gt few tech trends have explodes as fast in years as facial recognition and emojis and now coke is bringing them together for an interactive billboard tech and marketing gt a digital ad housed in Stockholm subway station lets passersby determine what emotions appear on the vertical rectangular screen coke39s emojis mimic the consumers39 in facial expressions getting consumer interaction gt this fun campaign uses a quotchoose happinessquot tagline an extension of coke39s multichannel makeithappy endeavor VVVV
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