• Home
  • About
  • Archives
  • Our Book
  • Contact

Baby Boomer Purchasing Power

January 27, 2019 by Jon Firooz Leave a Comment

I frequently see students suffer from cognitive bias.  They define the world based on their own observations and experiences and it can be a challenge to help them break free of their own bias and look at the market more objectively.  Demonstrating this bias is pretty easy – just ask your students how Coca-cola should market a new beverage.  Chances are they’re going to answer the question based on what they think will be most effective for them and their peers but they need to think about it from a corporate perspective.  What’s the largest and/or most profitable target market?  Should they use a segmented strategy or combine multiple demographics together?

This Marketoonist cartoon and the accompanying narrative illustrates this idea.  The article says that Baby Boomers control 70% of disposable income in the US and spend ~50% of the consumer product dollars but only 5% of advertising dollars are directed at them.  What do your students think about that?

Filed Under: Advertising, Chapter 04, Chapter 15 Tagged With: millennial

Covergirl Opens New Flagship Store Focused on Experiences

November 25, 2018 by Jon Firooz Leave a Comment

Every generation presents new marketing challenges.  As consumers flock to online shopping, CoverGirl decided to open their first brick-and-mortar location in Times Square, NY.  You can read about the new store and it’s planned opening (Black Friday) in this article.  The new store is designed around providing “an experiential beauty playroom”.  The new store will be utilizing Google’s artificial intelligence platform, DialogFlow, to power a virtual greeter (Olivia) and augmented reality stations to help shoppers visualize the different options.  Of course they will utilize personal sales representatives as well to assist in any areas not covered by their new technological assets.

Will this be a good move for CoverGirl?  Should any of their current retail partners feel threatened by CoverGirl’s forward integration?

Filed Under: Chapter 03, Chapter 05, Chapter 12, Chapter 14 Tagged With: millennial, technology environment

Promotion Through Influencers

January 3, 2018 by Jon Firooz Leave a Comment

While many promotional strategies are ageless, to be most effective you need to know how to fine-tune your strategy for your target market.  If you’re targeting a particular age-group of individuals, you may be able to capitalize on generational trends.  Authenticity is becoming increasingly important to consumers, particularly to millennials and Gen Z.  This article, “‘This Is A Business Now’: YouTube Stars Influence Generation Z’s Fashion Tastes“, discusses how one woman, Rhea Park, took her interest in fashion and turned it into a business by posting videos of herself modeling and reviewing various outfits.  She has over 250K followers and those followers trust her reviews more than they would trust content found on the designer’s website because Rhea’s videos are perceived as unbiased and authentic.  In Chapter 16 we refer to this as Earned Media, promotional strategies not directly generated by the company or brand, but rather by third parties such as Rhea.

Filed Under: Chapter 16, Promotion, Publicity Tagged With: earned media, Gen Z, haul video, millennial

Stereotypes and Segmentation

November 15, 2017 by Jon Firooz Leave a Comment

The concept of segmentation is important to us as marketers.  We use segmentation to help us focus our strategies so we can do a better job of marketing to a specific group rather than poor, generic marketing to the masses.  However, it’s easy to fall into the trap of equating stereotypes and segments.

This cartoon from marketoonist.com illustrates this concept as it relates to millennials.  Millennials represent 25% of the US population and have buying power in excess of $1 trillion so it’s no wonder that companies want to find a way to tap into that demographic but “millennial” isn’t generally a good definition of a market segment.  In Essentials of Marketing we define a market segment as a relatively homogeneous group of customers who will respond to a marketing mix in a similar way.  Consider that there’s a 23 year age difference between the oldest and youngest millennials and that over half of all millennial households have children.  It quickly becomes obvious that further definition is required to truly specify a target market.  Try discussing this dilemma with your students.  How can companies develop a marketing mix that focuses on “millennials” when that demographic is so diverse?

Filed Under: Chapter 04 Tagged With: millennial, segmentation

Categories

  • Advertising
  • B2B
  • Chapter 01
  • Chapter 02
  • Chapter 03
  • Chapter 04
  • Chapter 05
  • Chapter 06
  • Chapter 07
  • Chapter 08
  • Chapter 09
  • Chapter 10
  • Chapter 11
  • Chapter 12
  • Chapter 13
  • Chapter 14
  • Chapter 15
  • Chapter 16
  • Chapter 17
  • Chapter 18
  • Chapter 19
  • Competition
  • Consumer behavior
  • Cross-functional
  • Customer service
  • Demographics
  • Ethics
  • External market environment
  • Flip Exercise
  • Integrated marketing communications
  • International
  • Legal
  • Logistics
  • Market research
  • Marketing strategy planning
  • New-product development
  • Place
  • Positioning
  • Price
  • Product
  • Product life cycle
  • Promotion
  • Publicity
  • Retailing
  • Segmentation
  • Selling and Sales Mgmt
  • Service
  • Social media
  • Social responsibility
  • Strategy planning
  • Sustainability
  • Teaching Technology Tips
  • Tips for Teaching
  • Tips for Technology
  • TV Commercial
  • Uncategorized
  • Video
  • Viral campaign
  • What's Now?
  • Word-of-mouth

Archives

  • February 2019
  • January 2019
  • December 2018
  • November 2018
  • October 2018
  • September 2018
  • June 2018
  • April 2018
  • March 2018
  • February 2018

Copyright © 2019 · Lifestyle Pro Theme on Genesis Framework · WordPress · Log in