teachthe4ps.com - teaching the 4 ps

This article “The iPad Leads Apple to the Elderly” (Bloomberg BusinessWeek, August 12, 2010) describes how the ease of use of the iPad appeals to the elderly. The examples are mostly from Japan — where a fast growing elderly population make it a prime target market. The examples here work when talking about opportunities (chapter 2 in our books), demographic trends or market segmentation.

You might ask students:  What else Apple could to do make the iPad more appealing to senior citizens?  Encourage them to think about each of the 4 Ps.  [NOTE:  This article has also been posted over at our “Learn the 4 Ps” blog for students.

Here is the latest take on the ethics of marketing to disadvantaged consumers.  Nestle has begun sailing a “supermarket barge” down the Amazon River and its tributaries.  The company has adapted some of its products with cheaper ingredients and smaller packages — to offer them at prices low-income shoppers can afford.  Sounds like good marketing — adapting the marketing mix to fit the needs of a target market.

Not so fast.  The program has drawn criticism from many corners — showing the power of a few prominent voices on the internet to influence public opinion.  This article in the Atlantic “Nestle Barge to Ply the Amazon, Bringing Ice Cream and Rage,” (June 21, 2010).  The debate raises interesting ethical and social responsibility questions.  It also raises questions about Nestle’s strategy and implementation of this project.

This issue might be discussed one one of the first few days of school around issues of micro- and macro-marketing (we cover these in chapter one of our books — along with social responsibility).  It also provides a nice ethical debate to have in the segmentation and targeting chapter.

Frank Cespedes and Ben Shapiro have had a big influence on how I look at B2B marketing.  I often use cases and articles they have written when I teach my MBA classes, and their ideas have influenced my research program and text book.  This article “Yes, You Can Raise Prices in a Downturn,” (Harvard Busienss School Working Knowledge, July 26, 2010) is an interview with the two Harvard professors about pricing.  This might be a bit much for undergraduates in the intro marketing class, but the reading would work well in an advanced marketing class or with MBA students.  Plus, you can certainly glean ideas to bring to your undergraduate discussions of pricing.

This short post “Marketing Online – Men and Women Use the Internet Differently” (About.com:  Marketing, June 27, 2010).  It might be interesting to report the findings from this study and then ask your students how this might influence a marketing strategy targeting either gender.

This was an interesting series I heard on the Marketplace radio show.  Your students might be surprised at how sophisticated segmentation and targeting can be after reading (it is radio and text) “Data mining pushes marketing to a new level” Marketplace, July 26, 2010.  For a follow-up with more information on clusters, see “Hey Baby, What’s in Your Cluster,” (Marketplace, July 27, 2010 – text version of radio story).  [NOTE:  This post is also featured at our companion blog for marketing students - "Learn the 4 Ps".]

This is great stuff!  We have a wild ad for Friskies cat food (see below) — and analysis from its creator via an article by Seth Stevenson “Psychedelic Cat Food Why is the new Friskies ad so trippy?“(Slate.com, March 29, 2010). What a combination — great read, great ad, fun stuff to show and discuss in class. Works with consumer behavior, segmentation and targeting, as well as advertising. Enjoy.

Of course, not all cat owners are quite so jazzed about spooning out cat food and watching their pets munch on it. Friskies did some proprietary consumer research and found a specific segment of cat fanciers they wanted to home in on. Schlueter says the target is “owners who are very involved with their cats, and have a deep relationship with their cats. These are owners who love to get inside and experience the magical world their cats experience.” Thus the lyrics of the ad’s jingle promise that Friskies will help you “excit[e] your cat, day and night, with endless enchantment.” (At the risk of forcing some cat owners to contemplate uncomfortable notions, I will note that this pitch is not unlike that of spam e-mails guaranteeing the ability to “satisfy your partner like never before.”)

This Old Spice commercial has taken the top spot on the Ad Age Viral Video Chart — moving past Doritos with more than 2 million views last week. It takes an interesting approach in its battle with Axe (if it even competes with Axe – different target markets?).  Axe’s ads target 16 – 24  [13-18?] year old males.  Just go to YouTube and search “Axe commercial” for examples. I have kind of stayed away from the Axe ads which are pretty sexist and might offend some of my students – but if you are up for it, search YouTube for the Axe “Clean Your Balls”. Old Spice seems to be taking a different tack by targeting women, who they figure will buy Old Spice for their man (who may be a bit older than the Axe target market).

One way to use these in class would be to show the two ads and ask students if they seem to be targeting different market segments and buying behavior. It could be a nice lead-in to some discussion about segmentation, targeting and/or consumer behavior. You can also see how Axe uses the internet to get racier ads (that would not get past network censors) in front of its target customers — and for a lower media cost no less. Note that the Old Spice ad is running on TV.

For a nice green example of segmentation and targeting, see “Electric Car Strategy: Follow the Fleet,” (The New York Times, March 1, 2010).  Definitely shows how to tie characteristics of the market (technology, customers, company, and competition) to the target market.

This story “In Search Of The Elusive Male Shopper” was on NPR’s Weekend Edition this morning (February 13, 2010).  If you go to the site, you can read the text of the story or listen to it.  While there is an obvious Valentine’s Day tie-in, the story describes differences in how men and women shop.  A number of great examples that can be used to talk about segmentation or consumer behavior.

In our text books we discuss the external market environment, including the economic and social and cultural environments in chapter 2.   This Wall Street Journal article (subscription required — or search the web using the article title and you will get “back door” access), “As Sales Drop, Burger King Draws Critics for Courting ‘Super Fans,’” (February 1, 2010) describes how two external trends are having a negative impact on sales for the fast food giant.

Thanks to high unemployment and healthier eating habits, those super fans haven’t been so super lately. Burger King has felt the impact more acutely than its main rival, McDonald’s Corp., whose sales are growing.

This might provide a good example to use when discussing chapter 2.  The article also questions Burger King’s targeting strategy.  The chain has focused on its “super fans,” those 18-34 year old, mostly male customers who account for half of all visits to Burger King.