teachthe4ps.com - For instructors of marketing.

Recent research finds that consumers enjoy online shopping on tablets (like the iPad) more than they do on their standard PCs.  All kinds of measures — from conversion rate (orders divided by visits) to order size — are showing this trend.  This knowledge is driving online retailers to invest in optimizing the online experience for the tablet shopper.  This Wall Street Journal article, “Tablets:  Ultimate Buying Machines” (September 28, 2011, non-subscribers may need to click here).  We also posted this at Learn the 4 Ps.

This example suggests some interesting ideas to bring up in class.  For example, the customer market continues to fragment for retailers, many now aim (at least) two segments of online shoppers — PC users and tablet users.  And retailers are adapting their marketing strategies to each target market.  The article provides some good examples of the types of online retailers are using to better address tablet customers.  While many retailers initially invested in apps specifically for their store, research shows that most tablet shoppers still prefer the browser interface.

I am not sure this really counts as subliminal — but that is the term that ABC News used — so I have an excuse for being sensationalistic as well.  Technically subliminal means “a sensory stimuli below and individual’s absolute threshold for conscious perception” (see Wikipedia – Subliminal stimuli).  The subject, and its effects, remain controversial — see the Wikipedia link for more information.  I digress, no matter the title, our students will enjoy the topic.

The video below (direct link to video:  “Grocery Stores Using Subliminal Marketing,” ABC News, September 23, 2011) addresses how supermarkets merchandise and display products to influence consumer choice.  People are typically conscious of these stimuli — but may not recognize the role of each in getting us to open our wallet or pocketbook a bit wider. I used this video today as an example of psychological variables that affect  consumer behavior.  The video will also work for retailing or promotion for point-of-purchase.. The video is only 2:08, but you do have to put up with a :15 advertisement at the start, so you might want to cue it up before class.

‘Tis the season to sell, sell, sell.  Retailers, and marketing managers more generally, are always looking to give the consumer a reason to buy.  So today we have a couple of articles that show how that works.

First, an article in the Wall Street Journal that describes how retailers create 13 (or more) shopping seasons as a way to encourage more impulse shopping.  There are a lot of great examples of retail promotions in “A Season (or 13) for Shopping” (August 17, 2011, non-subscribers may need to click here).

My second article on seasonal promotions taps into the recently ended Islamic holy month of Ramadan.  International examples are always nice to add as class examples — and I don’t see many examples from the Middle East.  This article in BusinessWeek is short and offers taglines and explanations for campaigns from McDonalds and Tang among others.  See “Islam’s Holy Month:  A Time for Self Promotion” (August 25, 2011).

Caterpillar, Deere/Hitachi, and Komatsu own the market for heavy construction equipment – together accounting for 82% market share for excavators weighing at least eight metric tons. A new kid is trying break in. Chinese construction equipment maker Luogong has signed up one of its first dealers in the U.S. with Syracuse, NY based Stephenson Equipment. Breaking into the U.S. market will likely be a long-term proposition for Luogong as most customers in this market prefer a proven record of reliability and dealers nearby with spare parts.

This article, “China Treads on New Turf” (Wall Street Journal, August 16, 2011, non-subscribers may need to click here) could be used in a number of different places in the introductory marketing course. There is a four minute video with the article, but it is kind of dry. This case raises issues about organizational buying when you think about whether customers will buy from an unknown upstart — though the 15-20% lower price might attract some buyers. It might be interesting to discuss what types of customers would be the best target market for Liugong. It also provides a great example about the importance of channels of distribution — particularly as a firm moves into a foreign market.  You could even outline Luogong’s marketing strategy – target, price, product, place, and promotion decisions – based on the article.  Also posted at Learn the 4 Ps.

We have mentioned before (skim these posts for more background) how we like to address the challenge of getting non-marketing majors involved in the introductory marketing course.  I like to do it early by showing them now jobs flowing from every major use marketing concepts.

This post over at Harvard’s Working Knowledge site, “HBS Cases:  QuikTrip’s Investment in Retail Employees Pays Off,” (May 25, 2011) describes how convenience store chain QuikTrip delivers high quality service at low cost.  The case shows how operational and human resource decisions made by QuikTrip result in high quality service and reasonable prices.

The article describes and links to several Harvard Business School cases you could read for even more depth and other examples.  Our text books have a cross-functional chapter where this example could be integrated into class discussion.   The example could also work when you cover quality (we get to that in the product chapters) or retailing.

This article “Check Out the Future of Shopping” (Wall Street Journal, May 18, 2011 – non-subscribers click here) and its companion video (3:33) below describe a variety of different technology solutions retailers are employing to make shopping more convenient.  The article provides an excellent example of the influence of the external market environment (for retailers) or when discussing retailing.  Also posted at Learn the 4 Ps.

This long article looks at operational elements of the drive-thru window for quick-serve restaurants (QSRs). For many restaurants and especially for certain locations, the drive-thru is critical to business; at some Taco Bell locations 70% of the business was at the drive-thru window with 80% of that revenue coming in during a 90 minute lunchtime window! With this in mind, Taco Bell focuses on improving through-speed and quality of the drive-thru experience. This article, “Taco Bell and the Golden Age of Drive-Thru” (Bloomberg Businessweek, May 5, 2011) details many of those strategy changes.

The article provides a nice complement to the coverage of quality management in our text books — as well as our coverage of cross-functional collaboration (with production/operations) in Basic Marketing. Also posted at Learn the 4 Ps.

How does a dominant firm increase its customer base?  One tactic targets a new market with a new but related marketing mix.  Starbucks’ continues to look for growth — and is now looking for it from its Seattle’s Best brand that it acquired eight years ago.  This article “Starbucks Targets Folks Who Shun Starbucks” (Bloomberg BusinessWeek, April 21, 2011) gives some insights about product, price, promotion, and place elements for Seattle’s Best.

Here is a suggestion for using this article in class or as an assignment.  Since most of our students are familiar with Starbucks, it might be fun to draw a 3 column figure — with the left column headed with “Marketing Strategy,” followed by “Product,” “Place,” Promotion,” “Price,” and “Target Market.”  Then head each of the next two columns with “Seattle’s Best” and “Starbucks.”  You could let students break into teams to complete the picture – or simply ask students to fill in the cells on the figure you draw on the board.  I find that my students learn a lot from these types of compare and contrast in strategies.  To give students more insight into the perhaps less familiar Seattle’s Best brand, you could show one or more of the three ads in the video clip below.  Also posted at Learn the 4 Ps.

Is the future location of retail in Facebook?  Maybe it is one more channel for many retailers.  This article, “Fashion Retailer Asos Sets Up Shop on Facebook,” (Bloomberg BusinessWeek, February 17, 2011) describes one retailer’s efforts to target “moppers” (mobile shoppers).   Online fashion retailer Asos has a store in Facebook with a smartphone app on the way.

This article, “Bringing the Farmers’ Market to Your Doorstep,” (Wall Street Journal, February 3, 2011 – non-subscribers may have to click here) offers a good example of creative channels of distribution — home delivery of fresh produce.  There appears to be a market for this service especially in cities.  When covering channels of distribution, it might be fun to talk about different channels of distribution for fruits and vegetables.  You could ask about different target markets — and fill in various services, prices, and products which might appeal to each.  The perishable nature of the product adds extra questions.