Archives for March 2020

Marketing for a Worse World: The Case of Juul

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As you know, the new 17th edition of Essentials of Marketing and Teach the 4 Ps have been celebrating the theme, marketing for a better world (#M4BW). We are highlighting the many positive actions firms are taking to create a better world, while also making profits. That is not to say we are so naive to believe that every firm behaves in this manner. Juul’s e-cigarettes have been in the news for all the wrong reasons lately. The one getting more press is the health problems people are having. The company has also been under fire for targeting kids who are supposedly too young to use its products. This article in The Guardian, “How Juul gets kids addicted to vaping: it’s even worse than you think,” (February 14, 2020).

The example could be used with segmentation and targeting (Chapter 4), advertising (Chapter 15) or even as a counter-point to our #M4BW coverage.

Patagonia supports activist short film, “District 15” [#M4BW]

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Patagonia lives by its strong environmentalist values. Now it has produced a new short (23 minutes) film, “that outlines the fight undertaken by the Communities for a Better Environment group as it lobbies city council and Mayor Eric Garcetti to establish a 2,500-foot distance between oil drilling operations and Wilmington’s schools, hospitals, and churches.” (Fast Company, February 27, 2020) The film differs from many of Patagonia’s typical outdoor images — as this one focuses on the challenge to a community in Los Angeles that is home to 479 oil wells. It might be interesting to watch or assign the film to your students and ask them why Patagonia does this? If you know Patagonia, and watched some of its previous promotional efforts, the answer is not immediately obvious. They really do it because they support the environment and they believe this is the right thing to do. It does burnish their brand and it is authentic, too.

Why is Panera selling coffee subscriptions for $9 a month?

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This short article in Fast Company (February 27, 2020) describes a new business model being used by Panera, “Panera debuts $9/month unlimited coffee and tea subscription.” While short, the article offers an interesting example that can be applied across many topics:

  • Customer lifetime value and customer equity (Chapter 2) — Panera found that subscription customers visited the stores 3 times as often and purchased 70% more add-on items.
  • Subscription pricing model (Chapter 17) — Our new edition of Essentials of Marketing delves a bit more deeply into subscription pricing as many products now utilize the business model.
  • Marketing research (Chapter 7) — the article describes some of the findings from a test market Panera used before launching the new subscription pricing model.

Moving your marketing course online? McGraw-Hill can help

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Many of us are scrambling to move our courses to an online format. Many of the publishers, including McGraw-Hill, which publishes our textbook, are jumping in to help. I received the message below from McGraw-Hill and wanted to share it.

With the suspension of many face-to-face classes, we’re personally reaching out and offering resources that can help as you move your courses online. We know the highest priority right now is the health and safety of you and your students, but we’d also like to offer help in ensuring that your course continues to run smoothly during this difficult time.

Yesterday, McGraw-Hill hosted a webinar highlighting broad strategies you can use in transitioning your course from face-to-face to online (you can access that webinar recording HERE under Step 1: Set Up Your Course). Now we’d like to invite you to more discipline-specific sessions that will explore some of the resources available to you in your discipline and courses.

Click on a link below to register.

Note: We have more webinars scheduled for next week. Look for those dates and times in a future email!

MARKETING
Engaging Students Online with Connect Marketing: “I was a seated instructor until yesterday…..”Wednesday, March 18 @ 12 p.m. EDTThursday, March 19 @ 3 p.m. EDT

Friday, March 20 @ 12 p.m. EDT

Monday, March 23 @ 3 p.m. EDT

Is this the dark side of Amazon? At the center of plenty of channel conflict

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I know, I know, we always seem to be using Amazon as an example. Well the company gets plenty of press–both good and bad. This probably falls better into the latter category. The article, “More brands are leaving Amazon, but the strategy could backfire,” (CNBC, January 11, 2010) describes how some bigger brands–including IKEA and Nike–have stopped selling through the online giant. These brands have become frustrated with Amazon’s failure to police counterfeit products or are concerned with competition from the retailer or its third-party sellers. The brands might leave, but because third-party sellers still offer the brands, their departure does little if anything to harm Amazon–and may do greater harm to the brand. A bit of a catch-22 for large brands.

This situation provides a good example of vertical conflict (between Amazon and the brands) and horizontal conflict where third-party sellers are competing with brands trying to sell direct through Amazon. It also offers an opportunity to discuss how a brand can lose control of its strategy when third-party sellers set their own pricing and messaging. Thus, it has relevance to Chapters 3 (competition and Amazon chapter-opening case), 8 (branding), 10 (channels of distribution and channel conflict), and 12 (retailing). With that much relevance I couldn’t hold back.