...differences in price and quality between the various brands (considered). Brand proliferation increased number of other brands and brand extensions . Brand proliferation is when a firm puts out new brand names under the same product lines. For example, Huggies is a firm owned by Kimberley-Clark. Huggies is best known for producing disposable diapers, and has different product lines such as Pull-Ups and Little Swimmers. Media fragmentation traditional TV ads / increased role of internet . Various ways of research. The style of mass advertising campaigns of yesteryears does not hold too strong a ground. It has become too expensive to go national on the TV network with no specific plans for points of attack and reinforcement in relation to brand's potential in different areas. In other words, marketing people should concentrate on those areas, which offer better prospects of brand's growth.Under such circumstances, it has become challenging for brand managers to be practically aware of the media costs and the effects of fragmenting a TV campaign. Not only that, they also have to be able to plan an integrated communication campaign with various tools of communication at their hands. The managers have to capitalize on the factor of fragmentation and align their campaigns accordingly) Increased competition globalization / low priced /brand extensions. Increased costs (costs of product introduction. Out of 30.000 ne w products 93% was failed ) Greater accountability (financial market...
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...successful in many viral campaigns. With consumers’ ability to skip ads and the changing media landscape, more-and-more clients seemed willing to take a chance with viral advertising. Viral marketing was initially sought out by small advertisers, because of its promise to reach millions of consumers quickly and cheaply. After seeing the success of viral marketing, major advertisers began to use this promotional tool. As Mekanism began taking in business from big-name brands like Pepsi, Nike, and Microsoft, the company started to flourish, experiencing 32% year-over-year average growth from 2007 to 2010. Yet in 2010, the firm only grew 10% in billings with fewer new clients signing on with the company. This lack of potential growth made it apparent that Mekanism needed change. In order to sustain the growth of their company and fend off competition, upper management needs to define their next step. Should they stay with what is working, and mainly focus on viral marketing, or should they embrace other traditional content and media, effectively becoming a full service-advertising agency? Viral advertising is how Mekanism differentiates itself from other competitors. On the other hand, becoming an ad agency would mean Mekanism could leverage its creative capabilities with other media (print, TV, radio, etc.) and...
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...positive benefits to product placement, so that a contract between the two parties can be signed. 3. MMI must prove the results of how using product placement can increase product exposure and awareness. With the growth of product placement in the film and television industry MMI has a greater chance of succeeding. That is proactive product placement is becoming more popular. In order to satisfy Greyhound Canada the following five alternatives were presented: 1. Promote the Greyhound brand within the reality-based TV Serial “Making the Cut”. 2. Promote the Greyhound brand within an established TV show such as Corner Gas. 3. Promote the Greyhound brand within another reality TV serial such as “Canadian Idol” 4. Move away from the TV industry and focus on promoting the Greyhound brand within the film industry in various movies. 5. Status Quo-No need to convince Greyhound to get on board. After analyzing all the pros and cons of each alternative, the optimal recommendation providing the greatest benefit...
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...ISSUES TO BE ADDRESSED How would you interpret the consumer and market data if you were Dana Wheeler? 1. According to the data presented, The Fashion Channel (TFC) was the first TV channel to offer fashion TV shows, reaching 80 million viewers in the USA, initially giving the company an advantage as the original leader in the market. However, now the company is facing tough competition: “Fashion Today” on Lifetime and “Fashion Tonight” on CNN. At the moment this new competition arose, TFC did not have any plan for strategic segmentation or market positioning. The demographic data shows that 61% of the total audience for The Fashion Channel is comprised of women between 35-54 years old, similar to CNN’s audience. However, the Lifetime audience is 63% women between 18-34 years old; that means that TFC has older viewers than Lifetime. Another interesting figure is that CNN has the greater number of men with 45%, mostly between 35-40 years old. Given these figures, it’s clear that Dana Wheeler is focusing on attracting a younger segment of women to TFC, competing directly with Lifetime. She is not interested in reaching the male segment. TFC dedicates more broadcast time to fashion programming than any other network. However, TFC’s fashion programs rank lower in the ratings than its competitors’ shows. That negatively affects TFC because lower-rated shows are less attractive to advertisers, resulting in lower income from commercials. According to a study conducted by GFE...
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...good or bad? Phones as means of communication lost its initial function years ago. There are more benefits of social media and smartphones technology then its harm to the public. Social media is a great source of communication. Social media and social networking are becoming the daily routine of millions of people all around the world, especially college student and some high school student and the new generation children. Phones have lost their primary function of communication after smartphones were invented. The impact of social media and smartphones is controversial and it has both pros and cons. Smartphones were invented to do multiple tasks on a single device essentially. It's an alternative to a desktop computer to smart devices a lot of people are moving from using desktop computers to using sub-compact smart devices such as smartphones and tablet, smartphones has its pros and cons. Smartphones can help people do multiple tasks at one time, with the newer software and technology people can do video chat other communication purposes, and even use other advance application such as online banking, advance calculator, and other useful application. After the invention of advance micro-processor and advance GPU, people can play extensive games on their smartphones that used to be played on a big desktop computer. As smartphones have these so many benefits that I mentioned above, smartphones also have its bad side and flaws to the social life of public. Recently people starting...
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...Situational Analysis A. Industry * The US paint industry is divided into 3 broad segments: * Architectural coatings * Original equipment manufacturing (OEM) coatings * Special-purpose coatings * Architectural coatings account for 43% of total industry dollar sales * OEM coatings represent 35 % of total industry dollar sales * Special-purpose coatings account for 22% of total industry dollar sales * US paint industry is a maturing industry * Industry sales in 2004 were estimated to be slightly over $16 billion. * No new competitors are entering the market, competition decreased by 40% from 1980 to 2004 * The number of paint companies is declining at 2-3% per year * Estimated US sales of architectural paint coverings and sundries are $ 12 billion in 2004 * The 7 biggest companies (Sherwin-Williams, Benjamin Moore, the Glidden unit of Imperial Chemicals, PPG Industries, Valspar Corporation, Grow Group, and Pratt & Lambert) account for 60 % of sales * Architectural coatings are a mature market with long term sales growth projected in the range of 1 -2% per year * Demand depends on: * House redecorating, maintenance, and repair as well as sales of existing homes and home, commercial, and industrial construction * Competition from alternative materials: aluminum and vinyl siding, wall covering, and wood paneling * Development of higher-quality products that reduce the amount of paint necessary...
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...2013 CONTENTS EXECUTIVE SUMMARY 2 PROBLEM STATEMENT 3 DATA ANALYSIS 3 KEY DECISION CRITERIA 4 ALTERNATIVE ANALYSIS 4 RECOMMENDATIONS 7 ACTION AND IMPLEMENTATION PLAN 9 Executive Summary In 2010, Big Skinny CEO Kiril Alexandrov was looking to transcend from retail distribution and print advertising to the world of online marketing to achieve maximum growth. The retail sales pitch was an easy one, as Alexandrov focused on the value of the wallet and the impulsiveness of consumers (Benjamin & Kominers, 2012). Unfortunately, translating this type of sales pitch was much harder to do in the world of cyberspace. Big Skinny centered their online marketing efforts around display Ads, keyword searches, social media and relationships with online distributors and deep discounted sites such as Amazon and Groupon respectively. The expansion caused much hardship, as Big Skinny received negative feedback on the review website Yelp that stemmed from their Groupon experiment. They also faced a glitch in their online promotion that allowed 4,000 people to order free wallets from their online store. Big Skinny needs to refocus their online marketing strategy by getting rid of display Ads, refining keyword searches and severing ties with deep discounted sites. Big Skinny can create value for their product and manage their orders better by being more selective with who distributes their product and by keeping...
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...decade, with the explosion of modern technology, consumers have been approached and overwhelmed with multimedia advertising types and creative elements. This has brought not only a big concern about the effectiveness of traditional TV commercials but also many arguments over the time of TV commercials among many advertisers and marketers around the world. To address this matter, Jeri Smith, president and CEO of advertising research firm Communicus, has recently published an editorial called “Screen Time” in the Marketing Insights. In her piece of writing, she strongly supports the role of traditional TV commercials within an overall integrated advertising campaign which targets mass audiences and clearly points out that TV commercials just need to evolve. In order to convince her target audiences, advertisers and marketers, in her epideictic argument, Jeri analyzes and evaluates the power of TV commercials compared with non – traditional media types. She appeals her audiences by adopting logos with supporting facts and data, making her persuasion even more powerful. Jeri opens her analysis by giving us a thorough background of current marketplace and her key observation on the performance of the traditional TV commercials today: “Interestingly, the traditional TV commercial is still around today, with U.S. marketers spending nearly $80 billion per year on TV advertising.” (para 1). This fact-oriented leading observation followed by more in-depth supporting facts successfully directs...
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...BMW Case Analysis BMW Films Case Analysis Statement / Cause of the Problem The critical problems that seem to be facing BMW in the case are that BMW needs to continue to find ways to continue being the number one luxury import in the United States and continue to find ways to stand out amongst all the other luxury car competitors in the market with their innovative advertising campaigns. It has become increasingly harder and harder for BMW because of how many competitors have emerged in the market, thus making it diluted and making BMW struggle to find the right identity for marketing. Brands like Acura and Lexus have appeared as luxury cars but ones that are affordable and come with many more specs that BMW would charge their customers extra for. These affordable luxury cars, especially Lexus, pushed their way ahead of BMW because they were giving their consumers the message that everyone could have a great looking luxury car without having to drain your wallet or run up your debt. This message made cars like Lexus incredibly popular amongst consumers and caused Lexus to become the number one luxury import in the United States in 1992. Not only were affordable luxury cars a problem for BMW, but their brand image seemed to take a turn for the worse. BMW cars were being seen as cars for middle aged men, as a status symbol, or just as a “yuppie machine”. Without attracting more youthful consumers to their product, BMW would surely fail. BMW needed to find ways to revive...
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...Can social media influence people’s thoughts and ideas? People use media every day we such as watching TV, Surfing the internet, Social media sites, and play video games. Media plays an important role in our everyday activities. However, these every day activities influence our actions. There are many pros and cons that visual media has affected children and the American culture. Media influences our thoughts and plays a major role in our lives. We use media every day on a regular basis for many different things. Whether it is to surf the internet for information, or watching movies and television online. I think it has influenced the way we look at others and base it how we should be. An example, would be young girls see super models a reality stars on magazines and in reality it is not really them. The models are photo shopped or have been airbrushed. Therefore, it is setting a bad example of what girls should look like. Another example, advertising has affected the way we purchase items. These ads make it seem that you have to have purchase their product in order to fit in. There are many pros and cons of visual media on how it affects our behavior. Some of the pros of visual media are how it influenced education. There is so much information on the internet we have access to. There are so many television programs that are education such as the history channel. Children are able to learn from watching these educational programs. Visual media is positive but, it...
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...need to make reasonable assumptions about what data to use. Use only data that is in the case; there is no need to search externally for additional information. Discounting Industry Economics, 1984 | | Industry Average | Walmart | Difference(Walmart minus Industry) | Net sales | 100.0 | 100.0 | 0.0 | Cost of goods sold | 71.9 | 74% | 2.1 | Gross profit | 28.1 | 26% | -2.1 | | | | | Operating expense | 23.3 | 18% | -5.3 | Payroll expense | 11.2 | 10.2% | -1 | Advertising expense | 2.3 | 3% | 0.7 | Rental expense | 2.2 | 1.9% | -0.3 | Corporate overhead | 7.6 | 5% | -2.6 | | | | | Operating income | 5.9 | 8% | 2.1 | Assumptions: 1. Payroll expense was 11.5% in 1970 but trimmed to 10.1% in 1985, assumption of 10.2% in 1984 2. $16.3 million represented Walmart’s TV budget in 1985, assuming that $14 million in 1984 representing 50 percent of its advertising budget. Giving an advertising expense of $18 million 3. Rental expenses accounted for 1.8% of sales in the 1970s, after...
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...likely to be applicable in the purchase of this product. Due to the modification away from media advertising, the decision making process has changed significantly. When media advertising was substantial with COSI and StarKist, consumers had become familiar to seeing the ads and their individual icons. Consumers were very loyal to a specific brand and the loyalty grew out of the familiar icons. Now that the focus has changed to mainly print ads, promotions-in-store, and coupons, there is more to keep the consumer decision making process busy. A product such as canned tuna is not a necessity, and therefore can easily be replaced by another product. There is more competitiveness now that a consumer could just pick a brand because it is the cheapest at a particular store or because they found a coupon in an advertisement. Brand loyalty is no longer being pushed into consumers’ minds through commercial spots. Now, companies are pushing more promotions and discounts to increase sales, but the end result is that for some consumers, each trip to the store could result in a different brand being purchased. Also, consumers are now being reached at home through direct mail advertising such as newspaper ads. A decision could be made before a trip to the store. I believe that consumers would have followed the Hierarchy of Effects Model back before the marketing efforts changed from media advertising. Consumers knew of the brands through their loyalty and preferences over the years that led to...
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...Chapter 1: The purpose of Business Activity The economics problem: needs and wants. Basically, all humans have needs and wants. Needs are things we can't live without, while wants are simply our desires that we can live without. We all have unlimited wants, which is true, since all of us want a new PC, a car, new graphics card, etc. that we actually do not need to live. Businesses produce goods and services to satisfy needs and wants. Although we have unlimited wants, there are not enough resources for everyone. Resources can be split into 4 factors of production, which are: - Land: All natural resources used to make a product or service. - Labour: The effort of workers required to make a product or service. - Capital: Finance, machinery and equipment required to make a product or service. - Enterprise: Skill and risk-taking ability of the entrepreneur. Entrepreneurs are people who combine these factors of production to make a product. With these discussed, lets move on to the economic problem. The economic problem results from limited resources and unlimited wants. This situation causes scarcity, when there are not enough goods to satisfy the wants for everybody. Because of this, we will have to choose which wants we will satisfy (that will be of more benefit to us) and which we will not when buying things. For any choice, you will have to would have obtained if you didn't spend that money. For example, you would have got a book if you didn't buy the pen...
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...Assignment for Week 10 Jennifer Mininno 04/13/2012 1. What are the various market targets for the New Beetle available to Volkswagen? Describe each both demographically and psychographically. What are the pros and cons of each option? What are the appeals of the New Beetle to each group? The New Beetle target markets included VW new core audience of 18-34 and Baby Boomers. Gen-X audience: - Younger people (18-34), single or married without children, students or professionals - Enjoy active role in driving, challenging winding roads, not always obey to speed limits, see the car more than a way to get from one place to another. - Unique attitude towards life: well informed, adventurous, creative, confident, selfsufficient, experimenters. Pros: - Consistent with the VW overall target, which skewed to a younger, more affluent and more educated consumers - The design of the new Beetle (honest, simple, reliable, original, safe and high performance car) appeals to the Gen X audience. - They connect with the “fun” aspect of the car and with the individual driving experience: “My job is very conservative, but that’s not really the way I am. (…) But when I get out of work, I’m not that. I mean it’s fun, it’s a fun car.” - They connect with the social aspect of owning a car: how people look at me because of the car I drive? With the New Beetle consumers can express their individuality, their personality in a bold and confident way: “I see it for someone who is unique...
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...5 Segment Analysis 5 Competition Analysis 6 Financial Analysis 6 Case Keys 7 Key success factors 7 Key uncertainties 7 Alternative 7 Alternative Analysis 9 Recommendations 9 Action Plan 10 Contigency Plan 10 Problem Statement: Louisa Morgan needs to Set a price and service level for advertising campaign for Halpernia Industry regard to maintain client relationship and satisfaction. The management at Henderson Bas needs to set up a pricing model to effectively balance company's profitability against customer satisfaction Situation Analysis Background Henderson Bas was founded by Dawna Henderson in 1996 and started as an interactive agency in downtown Toronto. The company developed from a one person operation to a midsized 65 person corporation. The company provided wide range of online services like web design, online advertising, e-mail marketing, database marketing and Technology services. They worked with many large companies including Coca-Cola, eBay, Molson and Nike. Henderson Bas was recognized as a leader in the interactive advertising industry. Objectives and Goals Keep its position as a leader in the interactive advertising industry by providing premium service and maintaining well above average relationship with clients also successfully acquire the confidence and ongoing business of the Halpernia account. Current Situation Halpernia industry chose Henderson Bas to promote its new product. Henderson Bas assigned an account manager...
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