teachthe4ps.com - For instructors of marketing.

With demographics you can see the changes coming from a long way off.  The oldest baby boomers turn 65 this year — and many companies are changing marketing strategies to appeal to this growing market.  This article “How to Market to an Aging Boomer: Flattery, Subterfuge and Euphemism” (Wall Street Journal, February 5, 2011 – non-subscribers click here) provides some great examples about how a diverse range of companies from ADT Security Services, to Kimberly Clark’s Depend brand, bathroom fixture maker Kohler and paint retailer Sherwin-Williams are carefully approaching the new baby boomer.  Great examples of how these companies are adapting promotion, place, and product to better meet the needs of this target market.

This is a really interesting marketing challenge for global cosmetics leader L’Oréal.  This article and 3:52 video tell a very interesting international marketing story.  Brazilian consumers have traditionally buy cosmetics (and many other products) from door-to-door salespeople.  L’Oréal does not use this channel of distribution in Brazil — instead relying on retail shops.  The market is actually quite large — Brazilian women spend a lot on cosmetics.  But L’Oréal hopes to change consumer behavior, which is never an easy task.  Most marketers are better off adapting a marketing mix to customers rather than trying to change customer behavior.  Use these links to access the article, “To L’Oréal, Brazil’s Women Need New Style of Shopping” (Wall Street Journal, January 29, 2011 – non-subscribers may have to click here).

Here is the latest example of the internet threatening to radically change an industry — retail eyeglass sales.  This article in the New York Times, “Defying Conventional Wisdom to Sell Glasses Online” (January 16, 2011).   The article describes a New York start-up Warby Parker.   There are other online sellers of prescription eyeglasses — Zenni Optical and EyeBuy Direct have been around for a few years and sell primarily based on lower prices that start at less than $10 for a pair of glasses.   I have used both of these retailers and while they have pretty limited customer service, I have been pretty satisfied with the experience.  Warby Parker seems to be shooting for a place in the market between the full-service neighborhood optical store and the low price, limited service provider.

The example here could fit into a discussion of market segmentation, competition, technology as an element of the external market environment, place, or retail.

This video features two of our favorite companies — Zappos and UPS.  It features an interview with UPS Senior V.P. Bob Stoffel who discusses how the company works with Zappos to better serve Zappos customers.  It describes a couple of good examples about how UPS adds new sources of value as a full-service logistics supplier. For other clips from the interview click here — other clips consider global trade and sustainability.  You can also read an interview in this article – “Bob Stoffel’s UPS green dream,” (Fortune, December 16, 2010).

At 3:36, the video is relatively short, and while it only features talking heads, I think it might work well early in a class on logistics customer service (we have a logistics chapter in our books) or supply chain management.  Warning, you have to put up with a 30 second commercial before the video starts.

Another example of a company spotting opportunity in Africa (see recent post “The Africa Opportunity“).  This time it is KFC and its parent Yum Brands that are looking to expand in this growing market.  This article, “KFC Savors Potential in Africa” (Wall Street Journal, December 7, 2010 – non-subscribers may have to find article here)  includes some demographic and competitive information that might be useful in class discussions or examples when covering international, demographics, or channels of distribution/retail.

Amazon.com comes up with some very creative marketing strategy ideas.  While not all of them work, many do and the company’s stock and sales have been soaring.  One of its very successful programs is Amazon Prime.  For $79 a year, Prime members have all Amazon orders shipped with free two-day delivery (full disclosure, Joe is a very satisfied Prime customer).  This Bloomberg Businessweek article, “What’s in Amazon’s Box?  Instant Gratification” (November 23, 2010), describes how this brilliant “Place” decision has built loyalty and sent major competitors scrambling.  This provides a great example of a firm leveraging its strengths (wide selection and low prices) — making it hard for other online retailers to copy the strategy.  Combine this with Amazon’s new smartphone comparison shopping app (which makes Amazon’s price shopping advantage even more apparent) — and Amazon is looking pretty good moving forward.

This article could provide great examples of sustainable competitive advantage, place, retailing, or price.  Also posted at Learn the 4 Ps.

Wal-Mart likes to think it is the low price leader — especially for toys.  Well this year Target has aggressively priced its toys – and Amazon also boasts low prices, no sales tax, and free shipping.  This article “Wal-Mart First Shot in Toy War” (Wall Street Journal, November 8, 2010 – use this link if the other doesn’t work) describes the battle between these retailers over toy prices.  The logic for the battle gives some insight into their price objectives and will offer a good, current example if you are teaching price soon — also works well when teaching competition or retailing.

More companies are looking at Africa as their next growth opportunity.  The new edition of Basic Marketing describes the continent’s income and population growth — as well as the increased access to the internet and cellular phones.  Here are a couple of articles that highlight the opportunities that big companies like Coca Cola and Walmart see in Africa:  “Africa:  Coke’s Last Frontier” (Bloomberg BusinessWeek, October 29, 2010) and “Can Walmart and Coca-Cola make profits in Africa” (GlobalPost, November 8, 2010).  The GlobalPost story notes that “…59 million African households earn at least $5000 per year and that number is forecast to reach 106 million by 2014.”  Both stories provide some goodexamples of these two companies efforts.

This could help you bring an international dimension when discussing opportunity analysis, retailing, channels of distribution, and logistics.

This is a pretty straightforward example of firms adding new distribution channels.  Yet it ties together several concepts and the industry is one many students can directly relate with.  In “Restaurant Franchises Try Truckin’ as a Way to Grow” (Wall Street Journal, October 28, 2010) you can read about a trend where many food franchises are bringing their food to customers via the local food truck.  This is partially in response to consumers needs and competition.  Many of these firms use Facebook and Twitter to let customers know when and where the truck will be operating.

Great example to use for channels — but also as part of the external market (technology and competition).

This articles “Rediscovering the art of selling,” (McKinsey Quarterly, October 2010)  provides some good ideas and suggestions about improving sales in retail stores.  The article points out that perhaps too many retailers have cut back on personal selling efforts — perhaps falsely assuming customers have already researched purchases before entering stores.  It points out the importance of having enough well-trained salespeople.  This online interactive – making the sale – provides some additional example.

The article also points out  merchandising opportunities driven by understanding consumer needs and behavior.   Pointing out how a major bath care chain organized products by scent rather than function following insights about consumer behavior.  Sales increased when they set up a “Vanilla” section for example.

The article provides a nice supplement to a class on personal selling, sales management, or retailing.