marketing 300

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marketing 300

• discussion section

http//mywebspace.wisc.edu/rkamath/
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(No Transcript)
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Question

• Today, my friend, her parents and I, drove 5
  hours all the way to Disneyworld, only to realize
  we had bought Disneyland tickets. Disneyland is
  in California, 3000 miles away. We couldn't
  switch them out and we didn't have money to buy
  new ones. FML.
• What should Disney do in this situation?

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discussion question

• Whats the difference between
• Discount houses
• Conventional retailers cutting prices
• Mass merchandising
• Forecast the future of low-price selling in food,
  clothing, and appliances. How will internet
  affect this?

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discussion question

• Discount houses
• What is a discount house?
• Sell hard goods (appliances,
• furniture, etc.) at large discount
• No credit, sometimes no cards
• Customers pay cash
• Marketing mix shaped by this
• Some examples?

high
MARGIN
low
high
VOLUME
low
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discussion question

• Price-cutting by Retailers
• Why do they cut prices?
• Discounts are a competitive reaction
• No permanent discounts intended
• More tactical than strategic
• Examples?

high
MARGIN
low
high
VOLUME
low
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discussion question

• Mass Merchandisers
• What is a MM?
• Sells all kinds of stuff!
• Soft goods / Hard goods
• Extremely cheap!
• Examples?

high
MARGIN
low
high
VOLUME
low
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discussion question

• How does the future of low-price selling look?

?
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discussion question
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discussion question

• Are consumers getting tired of low prices?

2004 ? 252.8b 2005 ? 281.5b 2006 ? 308.9b 2007
? 345.0b 2008 ? 374.5b
48 growth 8 CAGR!
Fortune 1 company!
Source Walmart.com/investors
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the year 2050
Does this really mean that mass merchandisers are
going to take over the world?
Europe
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discussion question

• Maybe, but not necessarily and even if they do,
  they likely wont put everyone else out of
  business. Because
• Increasing desire for specialty products
• Not all target markets will want
  mass-merchandised goods or will want to shop at
  mass merchandisers
• People who cant buy stuff they want locally, can
  go to online stores

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discussion question

• How will internet affect the future of low-cost
  shopping?
• Can buy almost everything online now
• Instantaneous price comparisons
• Can use stores to see products then buy them
  cheaper online
• Much more competition in general!
• Biggest barrier for online Logistics of buying
  stuff must get cheaper to compete effectively
  with brick-and-mortar mass merchandisers and
  retailers

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an experiment

• Im going to ask you something.
• What is the first business that comes to mind
  when you hear this category?
• Madison bar
• accounting firm
• fast food restaurant
• charity organization

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an experiment

• Top-of-mind Awareness
• Good TOPA is usually an indicator of good
  marketing. Why?
• People have high strong understanding of your
  product/services, and why theyd want them
• Associate your product as being the optimal in
  the category
• Consumer needs understood and ability to deliver
  on them conveyed
• Being synonymous with category is usually good!
  When is it a problem?

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an experiment

• you usually want to be the first one people think
  of
• when do you not want that?
• what is the value of being first one thought of?

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group project

• Hows it coming?
• Due 4/22 or 4/23