DISCUSSION QUESTIONS1) What is the largest education managementorganization in the US?2) What is the only industry that has a largersegment of the American marketplace thaneducation?3) Explain what the "nag factor" is?4) Explain the 4 types of of parents.5) What is meant by "opportunity in devastation?"6) How do corporations use "undercovermarketing?"
MARKETING-THE ACTIVITY, SET OF INSTITUTIONS, & PROCESSES FOR CREATING,COMMUNICATING, DELIVERING, & EXCHANGING OFFERINGS THATHAVE VALUE FOR CUSTOMERS, CLIENTS, PARTNERS, & SOCIETY ATLARGE. (AMERICAN MARKETING ASSOCIATION)-IT IS ABOUT FIGURING OUT WAYS TO DRUM UP SALES.3 MAIN PURPOSES1) BUILD AWARENESS.2) BUILD ADOPTION.3) BUILD LOYALTY.
BRAND LOYALTY-A CUSTOMER’S COMMITMENT TO REPURCHASE ACOMPANY’S PRODUCT/SERVICE.-ACQUIRING A NEW CUSTOMER COSTS 5X MORE THANKEEPING AN EXISTING CUSTOMER.FACTORS INFLUENCING BRAND LOYALTY1) PERCEIVED VALUE2) BRAND TRUST3) SATISFACTION
MARKETING CONCEPT-ACHIEVING ORGANIZATIONAL GOALS DEPENDS ON KNOWING THE NEEDS &WANTS OF TARGET MARKETS AND DELIVERING THE DESIREDSATISFACTIONS.TARGET MARKET-”A GROUP OF CUSTOMERS WITH SIMILAR NEEDS THAT FORMS THE FOCUSOF A COMPANY’S MARKETING EFFORTS.”-IF YOU ATTEMPT TO REACH EVERYONE, YOU WILL END UP REACHING NOONE.-MARKETING EFFORTS MUST BE PRECISELY FOCUSED ON THE GROUP(S) OFEXISTING & PROSPECTIVE CUSTOMERS WHO ARE MOST LIKELY TO BUYYOUR PRODUCTS/SERVICES.
DEMOGRAPHICS-THE STATISTICAL CHARACTERISTICS OF HUMANPOPULATIONS USED TO IDENTIFY MARKET SEGMENTS.-AGE -INCOME-SEX -EDUCATION-RACE -EMPLOYMENTPSYCHOGRAPHICS-VARIABLES CLASSIFYING POPULATION GROUPSACCORDING TO PSYCHOLOGICAL VARIABLES.-INTERESTS-VALUES-LIFESTYLE
Yawning is a surprisingly powerful act. Just by reading the two yawns inthe previous two sentences--and the two additional yawns in thissentence--a good number of you will probably yawn within the next fewminutes. Even as Im writing this Ive yawned twice. If youre reading thisin a public place, and youve just yawned, chances are that a goodproportion of everyone who saw you yawn is now yawning too, and agood proportion of the people watching the people who watched youyawn are now yawning as well, and on and on, in a ever-widening,yawning circle.Yawning is incredibly contagious. I made some of you reading this yawnsimply by writing the word "yawn". The people who yawned when theysaw you yawn, meanwhile, were infected by the sight of you yawning--which is a second kind of contagion. They might even have yawned ifthey only heard you yawn, because yawning is also aurally contagious: ifyou play an audio-tape of a yawn to blind people, theyll yawn too. Andfinally, if you yawned as you read this, did the thought cross your mind--however unconsciously and fleetingly--that you might be tired? I suspectthat for some of you it did, which means that yawns can also beemotionally contagious. Simply by writing the word, I can plant a feelingin your mind.
-THE TRUE ESSENCE OF MARKETING IS PERSUASION.-THE ABILITY TO PERSUADE THE CUSTOMER INTO:1) PARTING WITH ONE OF THEIR MOST PRIZEDPOSSESSIONS ($)2) PURCHASING A PRODUCT/SERVICE THAT THEY MAYNOT KNOW THEY WANT.-MARKETING = SELLING & IF YOU CAN’T PERSUADE THENYOU CAN’T SELL.2 KEYS TO PERSUASION1) SHOES: WALK IN YOUR CUSTOMER’S SHOES2) EYES: SEE THROUGH YOUR CUSTOMER’S EYES.
•ADVERTISING DIRECTED AT CHILDREN: $15 BILLION ANNUALLY•1983: CORPORATIONS SPENT $100 MILLION ON TVADVERTISING TO KIDS•TODAY: 150 TIMES THAT AMOUNT ON VARIOUS MEDIUMS•80% OF ALL GLOBAL BRANDS DEPLOY A TWEEN MARKETINGSTRATEGY•1997: 12-19 YEAR OLDS SPENT $63 BILLION OF THEIR OWNMONEY•2001: 12-19 YEAR OLDS SPENT $155 BILLION OF THEIR OWNMONEY•2000: 12 & UNDER INFLUENCED $500 BILLION OF THEIRPARENT’S PURCHASES
COMMERCIALISM ON TELEVISION•AVERAGE AMERICAN CHILD EXPOSED TO 40,000 TVCOMMERCIALS/YEAR, OVER 100/DAY•UNDER AGE 8 UNABLE TO CRITICALLY COMPREHEND TVADVERTISING MESSAGES•PRONE TO ACCEPT MESSAGES AS TRUTHFUL, ACCURATE, &UNBIASEDCOMMERCIALISM ON INTERNET•UNDER AGE 5: 80% USE INTERNET AT LEAST ONCE/WEEKCOMMERCIALISM IN SCHOOLS•AMERICAN BEVERAGE ASSOCIATION ESTIMATES 2/3 OF SCHOOLSNATIONWIDE HAVE EXCLUSIVE POURING RIGHTS CONTRACTS WITHSODA COMPANIES•27% OF ADS ON CHANNEL ONE ARE FOR JUNK FOOD•10% FOR MILITARY RECRUITMENT
“CRADLE TO THE GRAVE”-A BRANDING TECHNIQUE WHERE A COMPANY ATTEMPTS TOATTRACT A CUSTOMER EARLY IN HIS/HER LIFE, & THEN KEEP HIM/HERLOYAL FOR THE REST OF HIS/HER LIFE.
“Advertising at its best is making people feel that without their productyoure a loser. Kids are very sensitive to that. If you tell them to buysomething, they are resistant. But if you tell them theyll be a dork if theydont, youve got their attention.”- Nancy Shalek, former president of Grey Advertising-53% of Americans say that buying certain products makes them feelbetter about themselves.-32% of Americans admit feeling pressure to buy certain products, suchas clothes, shoes and CDs because their friends have them.-62% of 12 & 13 year olds say that buying certain products makes themfeel better about themselves.- 54% of 12 & 13 year olds admit to feeling outside pressure to buyproducts.
OPPORTUNITY IN DEVASTATION-A MARKETING TACTIC WHERE COMPANIES PREY/TARGET (EXPLOIT)ON NEGATIVE ASPECTS OF KIDS’ LIVES IN ORDER TO INFLUENCETHEIR PURCHASING BEHAVIOR.
1) OBESITY-Rising levels of childhood obesity has led to an explosion ofjunk food ads in recent years.
2) EMOTIONAL WELL-BEING-Links between immersion in consumer culture anddepression, anxiety, low self esteem, and conflicts withparents.
3) SELF-IMAGE & SEXUAL BEHAVIOR-Wheelock College education professor Diane Levin seescorrelations with sexual imagery in children’s ads and increases ineating disorders among girls.-“Children struggle to make sense of mature sexual content. Theyare robbed of valuable time for age-appropriate developmentaltasks, and they may begin to engage in precocious sexualbehavior.”
4) FINANCIAL SELF-CONTROL-National surveys reveal that kids are leaving high school withouta basic understanding of issues relating to savings and creditcard debt.-No surprise, then, that over the past decade, credit card debtamong 18-24 year olds more than doubled.
THE NAG FACTOR“PESTER POWER”________________________________________________“THE DEGREE TO WHICH PARENTS’ PURCHASING DECISIONSARE BASED ON BEING NAGGED BY THEIR CHILDREN.”•KIDS NAG THEIR PARENTS IN 2 WAYS:1) WITH PERSISTENCE (I WANT)2) WITH IMPORTANCE (I NEED)•12-17 YEAR OLDS WHO ASK THEIR PARENTS FOR PRODUCTSTHEY’VE SEEN ADVERTISED WILL ASK 9 TIMES UNTIL PARENTSGIVE IN
CORPORATE AMERICA IS NOT ALL TO BLAME FOR YOUTHCONSUMERISM.SO ARE PARENTS.
• LARGEST GROUP OF PARENTS• AFFLUENT & UPSCALE BUT UNRESPONSIVE TO ACHILD’S WHINING• WANT A GOOD REASON TO BUY SOMETHING FOR THEIRCHILDBARE NECESSITIES
KIDS PALS’•YOUNGER PARENTS•BUY PRODUCTS AS MUCH FOR THEMSELVES AS THEIRKIDS
INDULGERS•WORKING MOMS•BUY THINGS FOR THEIR KIDS TO EASE THEIR GUILTABOUT NOT SPENDING ENOUGH TIME WITH THEM
CONFLICTED•SINGLE MOMS•FEEL THEY SHOULDN’T BE BUYING FRIVOLOUSTHINGS FOR THEIR KIDS BUT DO SO ANYWAY•SAY THEY DON’T LIKE IMPULSE BUYING BUT DO ITANWAY•OPPOSE ADVERTISING AIMED AT THEIR KIDS BUTWELCOME ITS ASSISTANCE IN HELPING THEM DECIDEWHAT TO BUY FOR THEM
WE ARE WORTH MORE TO COMPANIES THE LONGER WE PURCHASETHEIR PRODUCTS/SERVICES.
LIFE-TIME VALUE (LTV)-THE THEORETICAL MEASURE OF HOW MUCH A HUMAN BEING ISWORTH IF EVERY MOMENT OF HIS/HER LIFE WERE TO BECOMMODIFIED IN ONE FORM OR ANOTHER.COMMODIFIED:-TO MAKE COMMERCIAL.
AGE OF ACCESS-AS A RESULT OF TECHNOLOGY, CORPORATE AMERICA HAS MOREINFORMATION ON CONSUMERS & CONSUMERS HAVE MOREINFORMATION ON CORPORATE AMERICA.-THE RESULT: THE INCREASING COMMODIFICATION OF THEENTIRE HUMAN EXPERIENCE.EXAMPLE: FINANCIAL PLANNING-YESTERDAY: TRADED STOCKS & BONDS AND MANAGED CLIENTSPORTFOLIOS.-TODAY: HANDLES EVERY ASPECT OF THE CLIENT’S LIFETIMEFINANCIAL DEALINGS.-PERSONAL BUDGETING-RETIREMENT-CHILDRENS’ COLLEGE FUND-TAX SERVICES-ESTATE PLANNING
“BEING YOUR FINANCIAL PARTNER AT EVERY STAGE OF YOUR LIFE.”-JAMES D. SPEROS, CHIEF MARKETING OFFICER