Gimme! Chapter 1-15 notes

Gimme! Chapter 1-15 notes - Self-Actualization Esteem Needs...

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Unformatted text preview: Self-Actualization Esteem Needs Belonging Needs Safety Needs Physiological Needs Gimme! Chapter 1: Problems in (Marketing ) Paradise • Problems affecting brand management Stagnant Brands • Brands introduced from the 1930s to 1980s have remained relatively constant and have not changed much (“perhaps too familiar”) Desensitizing • We desensitize to neutral stimuli, which works to the detriment of established brands (we become more passive to familiar, old, mature brands and to establish, tired, ongoing ad campaigns) • Studies show we spend more time on new ads and have better recall with them Copycat Products and a Proliferation of Choice • There is a proliferation of brand choice nowadays and differentiation between products is less and less obvious Substitutability • I t is becoming too easy to switch between brands (aka no more brand loyalty) Commoditization • National independent brands are becoming less competitive and tend to lose their loyal buyers because the lower-priced brands are just as good (loss of advantage is referred to as commoditization of the category) • National leaders cut costs to compete, and therefore lose gross profit and have less to spend on advertising The Powerful Retailers • Growth in control, dominance, and power of retailers (WalMart) • Balance of power has switched from brand manufacturers to retailers and distribution channels • Introduce their own products to compete with national labels (sometimes better and usually lower priced) Disloyal Consumers • Many people turning to guilt-free choice and have no problem switching products now • Genetic basis for having greedy, selfish tendencies Internet Shopping • Enables people to shop at home for the lowest priced product and gives the ability to find the specific product/size online in order to pinpoint which retailer to visit for purchase Media Fragmentation, Zapping, and Zipping • Traditional advertising media are not working as well as they used to due to digital and entertainment technologies • In the 1970s you only had to place ads on 3 channels to reach ¾ of the US population, now you need to put ads on ten times more channels (and viewers are likely to ‘zip and zap’ past those ads) Advertising Campaigns Often Fail • Only 1/5 of ads today have a significant, observable impact on the brand • Hard to be constantly successful at advertising, hard to build and maintain healthy brands • Pie graph: 37% no gains for ad awareness or purchase intent; 29% ad awareness gain only; 17% ad awareness gain and purchase intent gain; 9% purchase intent only, explained; 8% purchase intent only, unexplained Marketing Research is Difficult • Hard to get t rue answers from consumers; don’t explain personal driving motivations for purchase of product • Therefore its difficult to test and evaluate effective advertising efforts Chapter 2: Marketers’ Response • Two fundamental elements of brands: the offer and the price Competing on Price?Competing on Price?...
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This note was uploaded on 02/10/2010 for the course HADM 3347 taught by Professor Lynn during the Fall '09 term at Cornell.

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Gimme! Chapter 1-15 notes - Self-Actualization Esteem Needs...

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