Marketing Objectives

When crafting a marketing campaign, deciding a specific set of Marketing Objectives is essential to informing a productive strategy and maximizing your marketing budget. Marketing Objectives is a set of achievements the campaign should attain.

To understand how to move forward, the business first must know where it’s at. A situational analysis is performed to report on where the business (or product) is positioned currently, where the and to whom the product is selling and what the competitive landscape looks like. From this assessment can be crafted a Strengths, Weaknesses, Opportunities and Threats (SWOT) analysis.

SWOT diagram: match or convert — BSCDesigner.com

Generally in a quadrant chart form, the SWOT analysis informs the business or product if the internal factors (strengths, weaknesses) affecting the campaign, and external factors (opportunities and threats) that must be taken into consideration when crafting strategy.

The Marketing Objectives are based on a set of SMART goals that the campaign will aim to accomplish. SMART goals are effective in any endeavor, this is a good concept to learn.

SMART goals are:

How to Form SMART Marketing Objectives Infographic — Setup — AgencySparks

Specific. the more specific, the better.

Measurable. ‘More sales’ is not specific. You need a measurement. How much more? 10% higher sales? And extra 5,000 subscribers? You need a measurement.

Action-oriented. What will you do to reach these goals? They won’t happen on their own, you (and your staff) need to know the steps.

Realistic. We all would like to hit the 1 million customer mark by the end of the first year after launch. But this is often unrealistic. Break it down into bite-sized chunks. Don’t forget to measure quality along with quantity. 1 million followers on Instagram means little if they don’t buy.

Time-sensitive. Help yourself keep focused by setting time goals, and keep them effective. 15% increased sales by the end of the year is good, what are the goals month-by-month to get there?

Sit with your team and write these down. Keep them accessible to all the stake-holders. Use these SMART goals to keep focused and decide what marketing tactics you will use to influence your customer behavior.

Generally your marketing campaign will aim to gain new customers, and retain existing customers. So be sure you know how many customers you have, and track how many may be lost each year. When deciding your sales increase goals, be sure to work with accounting to understand your break-even points. This is the number of customers or level of sales needed to keep the costs covered. Aiming for 10% more customers is ineffective in the long term if you really need 20% more just to stay afloat.

If you are losing customers, find out why. Be sure to have a mechanism for customer feedback, and communicate with customer service to ensure that they are aware of the marketing objectives, as well. Listen to their reports about what is causing issues in customer retention, and fix them. Be sure your campaign is flexible enough to reposition if necessary to retain customers: Sometimes customers utilize a product slightly differently than the manufacturer originally intended, or consumer tastes and habits change due to outside market forces. Pay attention to these forces, revisit the campaign strategy, and make adjustments accordingly.

What does a set Marketing Objectives look like? Depending on your business/product, it could be any of the following:

Use email marketing to increase website traffic by 50% by end of second quarter.
Offer sign-up discount on website to gain 5,000 new email addresses for marketing email list this quarter
Increase click-through rate by 10% per quarter
Gain 10,00 new subscribers this year
Increase brand awareness via social media content creation
Plan and execute 2 public relations events this year, with goal to increase reward club membership by 500 per event.

Marketing Objectives: How to Set Them in Six Steps - CoSchedule ... — CoSchedule.com

The objectives will be tailored to your specific business or product. But it is important to meet with team members to be sure everyone understands the objectives and their role in supporting them.

Starting with the SWOT analysis will give the team a measured starting point, and the planing a solid set of marketing objectives will set the goals to inform the tactics used in a successful marketing campaign.

Reference:

Ranasinghe, Maxwell (Feb 22, 2012) How to develop marketing objectives, Slideshare.net, retrieved from: https://www.slideshare.net/maxwellranasinghe/how-to-develop-marketing-objectives

July 29, 2020

Nail Your Target!

When it comes to marketing a new product or service, vast amounts of money can be saved by identifying your target market. These are the people who are already highly likely to be interested in your product because of their demographics and/or psychographics.

Examples of demographics include: Age, geographic location, gender, income, education level, marital status, life stage (young, adult, parents, empty-nesters). Psychographic characteristics include: Hobbies and interests, values, lifestyles, behaviors. Identifying these people, and where they receive their information or advertising, will help you greatly narrow down which platforms you should be investing in with your advertising.

Mass-advertising is a thing of the past for the majority of products and marketing budgets.

Don’t throw your advertising dollars into the wind! (Source: Youtube.com)

How to find your target markets? There are a number of tools available online to help narrow down your search.

One good source of information for identifying targets based on geography is the ESRI Segmentation Strategy App, available here. With this app, users can enter zip codes (or search the map) and find demographic and psychographic information about the people who reside in a location. This is helpful to target potential customers utilizing platforms that work in a specific location. When crafting a campaign on, for example, a social media platform, users can choose their targets by city or region. Learning which locations host the audiences you want will narrow down your advertising reach and gain more effective views for your products.

Type in a zip code or select ares on the map. Here, an area just outside of Los Angeles called Culver City.

Select the groups shown in the results to get a deeper dig.

The app contains demographic and psychographic information for the different groups represented. Use this information to craft you campaign’s location strategy!

Another good resource for identifying where different groupd find their information is the Pew Research Center (https://www.pewresearch.org/). All kinds of research data is available on this site to help marketers get to know their customers. An example of a good use of the site is to learn which age groups use which social media profiles. A glance at the Internet and Technology page yields helpful data on the subject.

Marketing budgets for products and services can run quite large. But even if working for a bigger company with dollars to spend, there’s little room for error when it come to spending those dollars. A skilled marketer knows that using facts and data is extremely important to crafting an effective campaign. The best ads and cleverest content will do nothing if it falls on “deaf ears.” Be sure that when sending out your advertising messages, the ears they fall on are perked and ready to buy! While spending your client’s advertising money is no time for target practice.

References:

Internet and Technology (accessed July 18, 2020)Pew Research.org, retrieved from: https://www.pewresearch.org/internet/fact-sheet/social-media/

Location Strategy (accessed July 18, 2020) ESRI location app, retrieved from:https://webapps-cdn.esri.com/Apps/location-strategy-for-business/#/insights?zip=90034&graphs=Median-Income,Median-Age,Monthly-Credit-Card-Charges

Porta, Mandy (n.d.) How to Define Your Target Market, Inc.com, retrieved from: https://www.inc.com/guides/2010/06/defining-your-target-market.html

July 19, 2020

Getting A Little “Skechy”

Skechers Shape-Ups: A wobbly experience — Skechers Shape-Ups sneakers *Consumerreports.org*

The Skechers brand faced legal troubles for the marketing of their Shape-Ups sneakers.

Introduced by the Skechers brand in 2009, Shape-Ups sneakers were designed with a sole cushioning that bowed out, away from the bottom of the foot. This unique design was advertised to improve muscle tone, activation and circulation more than walking in normal sneakers. They sold for about $100. a pair. The brand cited an “independant” study and had an endorsement from a chiropractor named Dr. Steven Gautreau that the sneakers would increase muscle activation by up to 85% over regular sneakers. The brand also employed a couple of celebrity endorsers, namely Kim Kardashian and Brooke Burke to promote the brand. Ads appeared in magazines, on TV commercials, radio, and even aired during the 2011 Super Bowl.

TV and print ads featured fitness star Brooke Burke *FTC.gov*

In 2010, Skechers earned roughly $2 billion in revenue, with 25-33% of that being from sales of Shape-Ups. The brand was selling like hotcakes.

But it was not long before consumers began to report the shoes being hard to walk, stand and keep their balance in. Medical professionals quickly learned they were no good to work in. The elderly felt unsafe in them. Soon The American Council on Exercise conducted their own study and found the sneaker design to have no affect on the amount of muscle use and toning. In fact the study concluded the “extended use of these toning shoes may alter the walking gait mechanics of wearers”(Avitzur, 2010).

In 2012 the FTC took the brand to court over the unethical marketing and research. It turned out the the Dr. Gautreau was married to the marketing executive and paid to do the study. The company had no other research to support their claims. The Brand settled with the FTC to pay $40 million in restitution in the form of a refund for the sneakers. The settlement fund disbursed 509, 175 refund checks to customers over the next year.

The settlement allows Skechers to continue to market the Shape-Ups line, but they are not allowed to make any claims about their effectiveness with scientific findings to back it up. The brand does still market the line to this day, but the design of the sole has changed, following all the complaints about the discomfort, back pain and lack of balance caused by the shoes.

It seems that Skechers was a little overexcited with the novel design of the Shape-Ups, and would have done well to invest more into market research before planning such a launch. While the marketing done for the line was certainly effective and sold a great many pairs, the unethical research turned out not to be worth it for the brand after paying the fines and having bad press. While the brand continues to be popular and sales remain robust in the toning sneaker market, the brand continues to have legal battles, this time with other brands such as Adidas and Reebock. So far the brand has survived due to it’s customer base being loyal and largely unaware or unconcerned with the lawsuits (beyond getting their refund).

This seems to indicate that the company still needs to improve their research and development phase of a product launch, to keep the marketing clean and their brand’s reputation unsullied by lawsuits. Hopefully the brand’s following can remain loyal to the brand long enough for them to clear out of legal muck.

References:

Avitzur, Orly, M.D. (Aug 5, 2010) Skechers Shape-Ups: A wobbly experience, ConsumerReports.org, retrieved from: https://www.consumerreports.org/cro/news/2010/08/skechers-shape-ups-a-wobbly-experience/index.htm

(no author) ( May 16, 2020) Skechers Will Pay $40 Million to Settle FTC Charges That It Deceived Consumers with Ads for “Toning Shoes” FTC.org, retrieved from: https://www.ftc.gov/news-events/press-releases/2012/05/skechers-will-pay-40-million-settle-ftc-charges-it-deceived

Phillips, David (April 26, 2011) Skecher’s Shape-Ups Face a Flabby Future CBSnews.com, retrieved from: https://www.cbsnews.com/news/skechers-shape-ups-face-a-flabby-future/#:~:text=Assuming%20a%20conservative%20value%20of,billion%20in%20Skechers’%202010%20revenue.

Smith, Aaron (July 16, 2013) Skechers pays up for Shape-ups CNN Business, retrieved from: https://money.cnn.com/2013/07/16/news/companies/skechers-shape-ups/

June 6, 2020

Assume the Positioning

An important aspect of brand management is clear and concise Brand Positioning. Customers should understand where you stand not only in reference to them–what is the benefit of the product/service you are offering– but in reference to your competition– how are you different from other brands in your industry, and what makes you just right for the customer?

Airbnb (Airbnb.com) is a company that pairs travelers with lodging. Airbnb has successfully positioned itself as different from the traditional hotel and motel travel industry by connecting travelers with the lower-priced, more flexible option of staying a private residence. The service offers the flexibility of different types of accommodations: Everything from crashing on someone’s couch, staying in a hostel, a separate bedroom in the host’s home, or a completely private cabin or casita. The site has gained enormous popularity for travelers who want more of a local experience while they travel.

A traveler can even rent a tree house on Airbnb (Airbnb.com)

Launched in 2008 out of San Francisco, the company was one of the pioneers of the shared economy— people making better use of their possessions by renting them to strangers; be it a bicycle, camera, tools, even a car or house. These services enable people to make a bit of money from what they already own, and allows others to use items or services they need only temporarily at a reduced cost. Trust and responsibility on both ends is integral for the system to work.

Airbnb has positioned itself as not only a site to find lodging, but also as a company that promotes travel, responsible tourism, diversity and inclusivity. “At the heart of our mission is the idea that people are fundamentally good and every community is a place where you can belong” (Airbnb.com, 2020). The company’s target market is the traveler who likes to be immersed in the local culture where they are staying, to meet locals and be introduced to little hidden gems around the area. This gives a completely different experience that a sterile hotel room high above the highway traffic of a big city or a little strip motel in some po-dunk town along the highway. Travelers who still employ the old tried-and-true cheap travel with sparse accommodations if desired.

The company name “Airbnb” originated from the founders’ first listing: an air mattress on the living room floor of an apartment in downtown San Francisco. However, the name continues to be successful for the brand years later due to ameliorating in meaning: Rather than the company’s offering being housed in one location–a “solid” location– the choices are spread across the globe, assessible via the internet. This makes the nebulous quality of the name fit perfectly with the concept. The name has stuck, and is well known to its audience.

Since it’s inception in 2008, Airbnb has booked over 750 million stays across over 220 countries and regions in the world (Airbnb.com, 2020). The company has just announced it plans to go public in 2020 (Businessinsider.com) and is currently valued at around $31 billion.

Understanding that safety for travelers and security for hosts is the most important requirement for the shared system to work, Airbnb runs background check on people using the service, and provides training and guidance to safety for both guests and hosts. There is multi-lingual support available 24 hours a day, and the company encourages all payment and other communication to occur through the service, to provide a layer of supervision to the transactions. The site also offers travel insurance.

There are some truly amazing properties available on the site: “There are over 14,000 tiny houses, over 4,900 castles, and over 2,400 tree houses listed on Airbnb” (Airbnb.com, 2020). And because of the shared economy model, the pricing is less than what one would expect to pay for many of the very nice accommodations. I have personally rented a whole 3-bedroom house for an entire week and the entire top floor of a town house in Southern California, an entire house on a private beach in Virginia Beach, and a beautiful loft apartment on the central coast of CA at amazing prices!

Airbnb has had a few unfortunate situations in it’s company history, the occasionally grossly misrepresented rental, or an individual with less-than admirable intentions, but the company has always managed the situation well with a quick PR response, additional safety measures when needed, and even conducted its own in-house research to identify potential issues or problems and take measures to prevent them. The company has expanded it’s offerings to provide arrangements not only for lodging, but also for “experiences,” an excursion hosted by a local at a destination to further enhance the travel experience. These can be booked with the host or as a separate activity. Airbnb also is currently coordinating housing for traveling front-line workers during the Covid-19 pandenic.

By positioning themselves to offer a unique but very professionally-managed concept, managing their client base and continuing to update and pivot as needed with changing economic and/or social conditions, Airbnb has been incredibly successful in building a quality brand that has build that has the proven longevity and flexibility to continue to stand apart from the rest of the hospitality industry.

References:

Airbnb financials reflect strong growth (August 20, 2019) Pitchbook.com, retrieved from: https://pitchbook.com/newsletter/airbnb-financials-reflect-strong-growth

Airbnb, snapgoods and 12 more pioneers of the ‘share economy’, (assessed May 20, 2020) Forbes.com, retrieved from: https://www.forbes.com/pictures/eeji45emgkh/airbnb-snapgoods-and-12-more-pioneers-of-the-share-economy/#781bbcba52cf

About page (assessed May 19, 2020) Airbnb website, Airbnb.com, retrieved from: https://news.airbnb.com/about-us/

Aydin, Rebecca (Sep 20, 2019) How 3 guys turned renting air mattresses in their apartment into a $31 billion company, Airbnb, Business Insider, Retrieved from: https://www.businessinsider.com/how-airbnb-was-founded-a-visual-history-2016-2

May 23, 2020

Mannequin Mania!

When planning for your store opening, you may be considering purchasing mannequins. These silent partners represent a significant investment, and it is important to understand what kinds of mannequins you will need for your type of business before making such an expenditure.

Having a specialty boutique, you are limited in the product line you offer, so making this choice can be relatively easy. Having a deeper assortment of a narrow line of products requires fewer variations. You just need to find your theme and stick with it. In a full-blown department store, there are so many different needs for mannequins of different types, the selection process can be much more challenging. And in a mass-merchant store, display needs are totally different, when the goal is to assemble as much product as possible in the space in a fairly organized manner for the customers to shop. But regardless, the theme/style of the store should be matched to the mannequins and other fixtures.

What sort of boutique are you opening? Are you selling dresses? Accessories? Just formal wear? Or men’s business suits? Each will have its own needs for display, so plan accordingly. In a department store, a wide range of display fixtures will be utilized. In a mass-merchant shop, the point is to get the product out, with maybe fewer needs for mannequin displays.

The first question to answer is what is the style of your store? Are you high-end, formal? More casual? Do you emanate country style, or a more modern urban? How about retro chic? Mannequins come in a variety of styles to fit any of these decor options.

Image result for pictures of mannequin displays — Modern, classy feels? Displayimporter.com

Super-modern and higher-end themes work well with shiny chrome-style fixtures. They come in assorted colors, including gold, and the add class and style to this atmosphere.

A retro-style shoppe likes old-fashioned and Art Deco style mannequins. These can be fabric or wire dress forms, or very traditional fiberglass figures painted with white skin and painted-on hair and make-up.

Menswear, activewear, and an urban vibe pair well with grey or black matte fixtures. In a department store, there will be many different product lines to display, but the overall store theme should be consistently honored throughout. Consider your product line and shop through the selection of finishes. Match your choice to your store theme and target audience.

Once you have chosen the materials you want to work with, no it’s time to take inventory of your stock. Is the display for full dresses, or just separates? Suits and formal wear? Will you also have accessories? Or are you just selling jewelry? Or maybe hats and shoes. Match the size of mannequin you’ll use to your products. In a section that is only selling shoes or accessories, it doesn’t make sense to invest in full body mannequins. You can purchase leg forms, foot forms, neck and hand forms. This will save you money, as well as valuable selling space.

Image result for accessory display forms — Just the head. Pinterest.com

If your store sells clothing, there are still decisions to make as to which forms would be best. First, consider how much space you have to allot to display. Even the best quality full body mannequins are a mismatch if your store space is too small. Pay attention to ceiling heights, as well. Remember that there is such a thing as a headless mannequin, or forms that are pose sitting or reclining, if a full body makes sense for your line but your ceilings are low.

Image result for reclining mannequins — Seated mannequin. Vanityfair.com

How many mannequins to use is another very important consideration. Again, these forms represent a significant investment, easily costing $250 each on the low end, and the price goes way up from there. A boutique with less space to fill might get by with just one or to for their most show-worthy peices, but a department store will need several in each department. One way to save money is to combine full body manniquins with a selection of partial forms for different appropriate items.

An island dislay of full mannequins is a great way to introduce the boundary of a new department, with partial forms used aroung the selling floor to add interest at a lesser cost.

in a mass-merchant store, fewer mannequins are likely to be used. If the store has a clothing department, perhaps only use a form to highlight the best items or to indicate the opening of the department. If no clothing is sold, often a merchant might use a mannequin scene to demonstrate toys, outdoor cooking equipment, or other activity items.

Image result for images of mannequins in toy store — Target.com

The best way to decide the needs of your individual store concept is to take a good, unbiased assessment of your store’s offerings and needs, and look around at many examples of what other sellers are doing. You can grab some great inspiration for your own business, and avoid costly mistakes of buying mannequins that might not really work for you. It may be wise for you to by mannequins and display forms “as you go,” starting with some economical basics and then taking the time to get to know your business (and customer base) first, feeling out where you can add something more, while also keeping an eye out for the opportunity to purchase at a discount or previously-used mannequins and forms. Adding in new displays will also create interest for your customers and give them a reason to keep stopping in, to see what cool new displays you may have added recently.

Who wouldn’t want to be the first to meet your new headless silent partner?

Image result for headless mannequin — AmericanHanger.com

March 22, 2020

Display Fixation

When starting on one’s own first retail business, there’s so much to do! Deciding a product line, securing financing, opening accounts, finding reliable suppliers who will work with you terms that match your situation, securing your retail space, finding help (if you can), and outfitting your point of cash system are all exciting and challenging tasks. You’re almost there: First orders of inventory are in, store is furnished, ribbon-cutting scheduled, promotion plan in place, lights are on. It’s go time!

Week one. Week two. Week three. Customers come through your space, some of them even pick up and handle the merchandise, there’s an occasional selfie, but so many of them just leave without purchasing. You have a great product line, you’re friendly and attentive, your prices are on-point…what is going wrong?

The first thing to consider is your merchandising: How are your items displayed? No matter how wonderful your product line is, if it is not presented to the customer in an appealing manner, it will not inspire sales.

Keep in mind the public can be very specific in their expectations of a retail establishment– if the place they are in does not match all of their pre-conceived notions of what that space should entail, they will not bite, like a spooked fish.

What does that mean? It means that piling as much merchandise as possible, in no particular order or compartmentalization may be what’s expected at a garage sale, but not at a retail shop. And if customers are getting a garage sale vibe, they will not lay down cash for you.

Image result for images of garage sale tabels — Don’t look like a garage sale!

At a real, professional shop, customers expect to see real, professional merchandising. This means there must be a plan in place and an intentional design and theme. The shop must have a consistent mood or tone, a personality that customers will come to instantly recognize as unique.

Generating a theme will help you keep the details complimentary and supportive of the that vision. Paint colors, any interior textiles, lighting, a color palette all work in concert. One of the most important features in a shop is fixtures. Racks, tables, shelving units, benches, wall hooks are some examples. They are anything you would use to hold, support, prop and display items for sale. While they become virtually invisible to the shopper under the weight of all that merchandise, they still silently contribute to the theme of the shop, as well. Choosing the right style and type of fixtures can really bring the store and its products to life!

When choosing fixtures, it is important to first know what sort of vibe you want you shop to have. There is an amazing variety of fixture styles, with more being developed all the time. One can choose from country style, urban, industrial, whimsical, modern, classic, the list goes on. Materials for construction range as well, from wicker, wood, and natural cording like jute and sisal, to Formica, metal, plastic, acrylic, etc. Your store theme will decide the materials best suited.

store fixtures — What atmosphere will your shop project? Fitsmallbusiness.com

power wall promotions — A country style mood is created with wood, wicker and galvanized metal containers. Simple hangers are made from wrought iron-look hooks and nails.
Fitsmallbusiness.com

The next step in choosing fixtures is to take an objective look at what you’re selling. Is it clothing, accessories, or cookware and dishes? Sporting goods? Books? All of these items benefit from different display tactics and need their own fixture to achieve this look. Research a some ideas for your particular product, finding solutions for your product, budget, and spacial allotment.

Different product lines need the display to highlight different aspects. People shopping for books want to be able to find their choice in a quick and organized system, but also have the opportunity to see the covers and find new choices to buy. Books need shelving and some table space. It keeps the plan interesting to vary the height, and children love to browse their choices laying flat on low tables. A bookstore will also need places to sit and the appropriate lighting; bright enough to read, but not so bright to make the space difficult to relax in.

Image result for small bookstore interior design — Fixtures organize and display the books, seating invites one to linger, and the lighting is intimate but sufficient to read without strain. The overall theme is modern. Pinterest.com

Cookware will shine with display materials that match the style of the dishes or pots and pans. Are they a modern design? Retro print? Rustic cast iron? Any of these can be matched to a style of fixture. Again, you’ll want to think about how to best merchandise each item. Dishes might be stacked on a platform or hutch in a creative configuration, or set as places on a make-shift table with matching linens and decorator items. Cookware looks wonderful on an old stove! But if space and /or budget don’t allow, arranging them on a table with risers or stands to vary the height will create interest, as well.

Image result for cookware store design — Change up the height of the display to add interest. Alamy.com

Clothing may seem like a no-brainer, but even here subtle differences can help generate sales. In addition to hanging garments on racks, turning some of them to face out can help the customers see them better. Whether you have mannequins or not, compiling outfit suggestions will greatly increase the likelihood of a purchase. Laying or folding clothing on a table or in shelving is common, but don’t for get that this display method is easily disrupted by the customer will require maintenance. Be realistic with how much time you have during the selling day to keep up with straightening before deciding to rely heavily on shelving.

Retail Display — This display tactic is asking for trouble. If you must do this, be prepared to maintain it constantly, or it will turn customers away.
Falconerelectronics.com

Image result for bad display ideas — This simple display uses racks, mannequins, shelves and tables and is easy to keep neat. https://www.storesupplyblog.com

Accessories such as jewelry, hats, scarves, handbags, hosiery, etc. benefit from a variety of different display fixtures. The point is to demonstrate each particular item very similar to how it would be actually used to inspire shoppers to take them home.

In your store, display tactics act as silent, unobtrusive salespeople who give customers a nudge when they are making their purchase decisions. You cannot be everywhere at once, and your merchandising scheme will be your extra hand and voice for you throughout the store.

Purchasing fixtures is an investment. Like any items, if you take the time to shop around and price compare, look for discounts, even find creative make-shift ideas, you can save a good deal of money. Just take the time initially to really know what you’re looking for, know your shop’s style, and imagine ways that fixtures can be versatile and dual-purpose. Always research ideas to see how others have solved their own merchandising challenges.

With the right merchandising plan that makes clever use of fixtures, you are far more likely to succeed with your new retail venture. Best of luck!

References:

Brophy, Meaghan (Jan 7, 2020 )Planning Your Retail Store Layout in 7 Steps FitSmallBusiness.com retrieved from: https://fitsmallbusiness.com/planning-your-store-layout/

Fall Merchandising Tips (Oct 25, 2016) Store Supply Warehouse Blog, retrieved from: https://www.storesupplyblog.com/fall-merchandising-tips/

Pegler, M. M., & Kong, A. (2018). Visual merchandising and display (7th ed.). New York City: Fairchild Books.

The Do’s and Don’ts of Retail Display, (Accessed Mar 14, 2020) FalconerElectronics.com, retrieved from: https://falconerelectronics.com/dos-donts-retail-display/

Trade Show Visual Merchandising (Dec 11, 2013) Artisan Work, retrieved from: https://serrvartisans.wordpress.com/2013/12/11/trade-show-visual-merchandising/

March 15, 2020

Mighty Green, or Mighty Profitable?

Environmental stewardship is the new measure of progression for companies. Corporate Social Responsibility (CSR) has become the new buzz phrase for companies, and investors are starting to look for companies listed with this label as a more “woke” place to put their money (and betting on green returns!) Practicing CSR is a big commitment, however, and not something that can be accomplished with a few superficial motions like recycling office paper or a PR show of cleaning up a local park. Although these are both great things to do!

One company that has is building a business based on CSR is MightyNest, Inc. Founded in 2009 in Evanston, IL, under the name MightyNest, LLC., MightyNest is a company that sells green household, kitchen and beauty items. They claim to save the consumer time by doing all the work researching and sourcing non-toxic, low- and zero-waste and reusable items for the home. They sell individual items on their website and have a monthly subscription service called MightyFix: For $10/month, they send one item to replace a less environmentally-friendly item, allowing the customer to make small changes toward a “greener” home. Items include dryer balls to replace dryer sheets, Swedish cellulose sheets to replace paper towels, and beeswax-dipped paper to replace plastic wrap.

Replace Paper Towels — MightyNest’s reusable cloth cleaning towels (MightyNest.com)

Wax cover paper to wrap food (MightyNest.com)

In addition to selling these Green products, MightyNest also collected school district information of customers and would make a donation to the district whose families earned the most “points” by doing things that are planet-friendly such as buying their products, walking to school, and reducing waste in other ways. In 2013 they donated $5000. to the Poway Unified School District near San Diego, for example. However, they discontinued the program in 2019 (MightyNest.com). During the program’s six-year run, they claim to have raised and awarded $195,000 to school districts across the country.

MightyNest has some pretty cool stuff, but are they really a Green company?

MightyNest is organized as an LLC, but they are still a private company, so their financials are not available for perusal. I was able to uncover that as of 2013 they had amassed $685,000 in funding. The company is listed as having between 11-50 employees, their website indicates around 25. So they are not a huge company, but substantive, and with some backing.

I did not find any evidence of litigation against the company, so that’s a good sign.

The company’s business model is pretty typical, wholesale-in-and-retail-out. They claim to prioritize American-made products, but are not exclusive, and they also claim to research the business practices of the companies from which they source. Feedback on Trustpilot is 96% positive out of 1,988 reviews, with the few complaints centering mostly around the subscription service arm of the business. In general, customers seem to appreciate their products and the time they save in researching and sourcing. And I will say that their product list is extensive. Th occasional comment that many of their items can be bought cheaper on other sites is true, my research indicates; anywhere from 25-50% cheaper, in many cases. But they do need to make a profit, of course to pay their employees.

The complaints around the subscription service are pretty typical of the subscription model: users are asked to fill out a profile about their habits and preferences, but then all boxed are sent out in the same sequence, with no regard for the customer’s profile. There are several “unboxing” videos and blog posts out there by affiliates, and they do all report the same sequence of boxes in the same order, so there is no evidence of actual customization. Getting them to stop charging the customer’s card after cancellation is also reported. Again, typical of a subscription service.

The Website also features a Blog, with some content marketing, mostly how to use their products. But it is helpful for someone just starting on their “greening-up” journey.

So I would say that the verdict is mixed as to whether or not MightyNest is truly Green, or in it for the green. Their pricing indicates they are profit-driven, and their subscription service is very typical, not a great money-saver. But their customer base does overwhelmingly seem to appreciate the work they do to source the wide array of Green home products, and they certainly are a bit of one-stop-shopping, if you don’t mind the inflated prices. And not every customer wants the cheapest option, some prefer premium pricing or pay those prices they can afford to support the company on principle. And with the company turning 11 years old in 2020, they have beat the business odds already on longevity.

So MightyNest is not an obvious fake. Kudos to them, I hope their success continues. They do have some neat products, it’s great to see these technological and aesthetic principles coming together for the next generation of home and cleaning products.

A Better Sponge — Swedish Cellulose sponges (MightyNest.com)

Plus I think these Swedish sponges are darling and I really, really want some! I am obsessed with the Retro print.

References:

MightyNest Overview (accessed Feb 22, 2020) Crunchbase.com, retrieved from: https://www.crunchbase.com/organization/mightynest

MightyNest Reviews (Feb 22, 2020) Trustpilot.com, retrieved from: https://www.trustpilot.com/review/mightynest.com

MightyNest Website, (accessed Feb 22, 2020) MightNest.com

Poway Unified School District Board of Education Regular Board Meeting Agenda (Nov 12, 2013), (no author) Powayusd.com, retrieved from: https://www.powayusd.com/PUSD/media/Board-Images/BoardAgendas/2013/Board-Agenda-Packet-11-12-13.pdf

February 22, 2020

A Dog Fight Over Batteries

Image result for duracell v. energizer image — The Energizer Bunny

Within an industry, the designation of “Top Dog” is a coveted title. Battles to gain this top spot are legendary throughout our pop culture’s history: Coke vs. Pepsi, Apple vs. Microsoft, Ford vs. Chevy. Even in an industry segment so mundane is household batteries, rivalries can be fierce.

Case-in-point, Duracell vs. Energizer batteries. Duracell has been around since 1964, with its famous slamming “copper top” image burned into the minds of many kids growing up in the 1970s and 80s. Energizer batteries hit the market under that name in 1980, soon to be represented by the well-known and lovable Energizer Bunny, with the tagline “they keep going and going!”

Batteries aren’t super-exciting, but as a marketer, any product is seen as a fun challenge to find a way to create demand and maximize market share.

In this rivalry, Duracell would be known as the Top Dog, having the acquisition advantage of having entered into the marketplace first, positioning themselves as the leader, and setting the standard against which all other batteries would be judged (Kardes, p. 58, p. 88). As competition did begin to catch up to them, Duracell activated a retention strategy of diversifying their product lines to include additional types of batteries, some with “new” technology, such as their Quantum batteries, with a kitschy power range indicator, but otherwise slightly ambiguous and irrelevant attributes such as a hi-density core (Kardes, p. 83, 84). Duracell also uses bulk packaging to retain customers “at the expense of Energizer’s shelf space” (Clements, 2015). The brand has also expanded its offerings to include a power pack that can be used to charge cell phones, laptops, and other devices to keep sales brisk in the face of declining battery sales (Clements, 2015).

In a Declining Market, Duracell Grows Share with Focused Market Strategy — Fancy, sexy Quantum batteries!

Duracell also positions itself as the “grown-up” brand, with their messaging often depicting serious situations such as home emergencies or references to first responders and families of military personnel waiting for their loved ones back at home. Duracell has also made sizable donations to first responders as a public relations campaign (Clements, 2015).

Energizer has been relegated to the position of second place, or the Under Dog. While they followed Duracell’s entry into the market much later, they have earned a respectable market share right behind its competitor brand, claiming 27.3% of the market in 2014, to Duracell’s 39.5% (Clements, 2015).

Image result for duracell v. energizer marketshare 2018 image — In 2017, Duracell is still holding its lead over Energizer

As a follower in the industry, Energizer has sought to claim a slightly different market segment, with its messaging aimed more toward “toys” like home gaming devices and other electronics, and its commercials taking on a more animated and humorous feel. The companies use of the light-hearted Energizer Bunny against Duracell’s a very serious First Responders sets a contrast of different use for the products (Kardes, p. 86).

To further compete with Duracell, Energizer should also look into developing new product offerings to accommodate today’s need for energy to charge portable devices. Conducting Market research to identify any niche markets that are underserved is also likely to yield additional opportunities. While Energizer has developed and marketed recyclable batteries for household use, demand for these environmentally-friendly products is likely to grow, and efforts toward innovation in that direction will also likely pay off. A Public Relations campaign in which Energizer partners with an outside entity (such as a developing country) to replace disposable batteries with recyclable batteries will both highlight their offerings, and display sound environmental stewardship.

Duracell’s continued hold on the Top Dog designation is likely due to a couple factors: First being their early entrance into the market; and second, their association with serious needs such as power failures, aid and convenience in stressful situations such as on a flight or other travel, and reliability for safety devices such as smoke detectors. Energizer’s association with toys and entertainment electronics gives the image of frivolity. While this certainly appeals to a respectable portion of the market share, it has not been enough to earn the top spot.

I, personally am not brand loyal to batteries, but to their price attribute (Kardes, p. 86): I have learned from experience that discount batteries are nowhere near as reliable, and batteries are something I do not like to buy often. I own both a set of Energizer rechargables, and bulk packs of Duracell, depending on the size of the battery and frequency of need to replace.

In general, sales of household batteries are on the decline (Clements, 2015) due to the changing landscape of home electronics. So many devices are rechargeable via a UBS cord these days. It will be interesting to see how both companies adapt to these changes and how they will flex their business to stay competitive. After all, both companies have a dog in the fight.

References:

Altabet, Robert (Apr 27, 2017), The Energizer Vs. Duracell Market Share Story (chart), SeekingAlpha.com, retrieved from: https://seekingalpha.com/article/4065865-energizer-vs-duracell-market-share-story

Clements, Michal (Oct 28, 2015) In a Declining Market, Duracell Grows Share with Focused Market Strategy, The Market Strategist , retrieved from: http://www.chicagonow.com/marketing-strategist/2015/10/in-a-declining-market-duracell-grows-share-with-focused-market-strategy/

Kardes, Frank. Consumer Behavior, 2e.. [MBS Direct].

No author, (accessed Feb 8, 2020) Energizer Marketing Mix (4Ps) Strategy, MBA Skool.com, retrieved from: https://www.mbaskool.com/marketing-mix/products/17484-energizer.html

February 10, 2020

Under Armor’s Next Target: Future Athletes

Related image — Under Armor’s next target segment should be children UA.com

In my Consumer Behavior class, we reviewed a case study about Under Armor and their recent marketing campaign toward women. Under Armor (UA) identified this market segment as their next target from which to grow sales.

Under Armor launched the new $15 million campaign in July 2014 with the slogan “I Will What I Want,” focusing on social media, particularly YouTube, and featuring unconventional female athletes such as American Ballet Theatre soloist Misty Copeland, supermodel Gisele Bundchen and downhill ski champion Lindsey Vohn.

Under Armor on YouTube

The new campaign was very successful, increasing sales of women’s apparel 28% and pushing UA into the number two spot in women’s sportswear ahead of Adidas and behind the number one competitor, Nike.

Moving forward, what is the next potential target market segment UA should focus upon?

When choosing which segmentation strategies to implement toward a new target market, it is important decide which aspect of the product to take into consideration:

Demographics: Should the company select for age range, gender, or occupation (Kardes, p. 47)?

Geography (Kardes, p. 47)? Where the customers live, assuming people from similar geographical areas in different regions (climate, location, etc.) will exhibit the same or similar spending characteristics.

Psychographics (Kardes, p. 50)? Consumers who share the same values, hobbies and interests, life stage, or family structure.

Behavioral characteristics (Kardes, p. 53)? Will customers who engage in the same activities, regardless of location, value the same products and/or services?

Usage occasion (Kardes, p. 55)? Will certain events, times or the year or life stages compel the target market to buy certain products (i. e., shovels in Winter, dresses for June weddings)?

Choosing all of these options can cause over-segmentation of the customer base, resulting in a too small, widely-scattered segment and an inefficient sales-cost trade-off (Kardes, p. 44). But certainly, there often exists an optimal combination of these factors to identify the group toward whom the company should market. The company will want to look at their current product offerings, production capabilities, and industry and market trends. One effective way to consider all of this is to perform a SWOT analysis.

With these considerations in mind, I think a profitable market segment for Under Armor to target next would be children and young athletes. It is estimated that some 23 million children (ages 5-19) participate in sports in the US (Swanson, n.d.). UA already offers a product line for children, so they would not have to change their production plans. But, just like athletic apparel for women, children remain an under-tapped resource for UA, and if they implement a similarly robust marketing campaign toward the youth market as they did toward the female market, they could realize greater profits from this group.

When creating a campaign for women, Under Armor was not introducing any new products to the marketplace: Their closest competitors, Adidas and Nike both have an established product line for women, as do other manufacturers. UA decided to take on this competition via their product positioning, or rather re-positioning (Kardes p. 57). While their products are essentially very similar to Nike and Adidas, Under Armor created messaging that subconsciously conveyed that the brand was different because their products “allowed” female athletes to take control of their own course, to ignore outside opinions and refocus toward their goals. The messaging was empowering, reminding women that their main competition was themselves, not the opinions of others. This reached into the core of athletic values and offering a solution, which strongly resonated with the customer.

Under Armor can do the same with their messaging toward the youth apparel market: Offer positioning that differentiates them from the competition based on performance/attributes (Kardes, p. 53) and narrowing usage down to occasion. Returning to its roots as the garment of choice to layer under other clothing, Under Armor can position itself as the logical choice for participants of sports that are played outdoors during transition seasons: Soccer, lacrosse, track and football in the Fall; baseball, cross-country, etc. in the Spring.

In such an advertising campaign, UA can convey that it is not only effective in keeping young athletes comfortable as they deal with unpredictable weather, but also for the parents on the sidelines, who must also contend with fluctuating temperatures as they cheer on their children.

Using the same strategy to differentiate themselves from the competition, rather than take them head-on, can score another win for Under Armor. Re-positioning itself as the logical brand of choice for youth (and parents) to contend with fluctuating weather conditions will offer a occasion of use tied-in nicely with a demographic segmentation. Combining these two audiences will create a solid customer base in the youth market for Under Armor.

I’m excited to see where they go next!

References:

Annual Estimates of the Resident Population for Selected Age Groups by Sex for the United States, States, Counties and Puerto Rico Commonwealth and Municipios: April 1, 2010 to July 1, 2018 (Jan 18, 2020) U.S. Census Bureau, Population Division, Release Date: June 2019. Retrieved from: https://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=PEP_2018_PEPAGESEX&prodType=table

Kardes, Frank. Consumer Behavior, 2e.. [MBS Direct].

Project Play 2020 Launches To Grow Youth Sports Participation (Sept. 5, 2017) Sports Market Analytics, retrieved from: http://sportsmarketanalytics.com.ezproxy.snhu.edu/Article-Detail.aspx?id=253444

Swanson, Beth, (n. d., accessed Jan 18, 2020) Youth Sports Participation By the Numbers Activekids.com retrieved from: https://www.activekids.com/football/articles/youth-sports-participation-by-the-numbers

Under Armor website (accessed Jan. 18, 2020) Retrieved from : https://www.underarmour.com/en-us/

Under Armor on YouTube (Jan 18, 2020). Retrieved from: https://www.youtube.com/watch?v=H-V7cOestUs

Under Armour’s Willful Digital Moves (July 27, 2016) Univesity of Virginia Darden Business Publishing, retrieved from: https://services.hbsp.harvard.edu/lti/links/content-launch

US: Activewear outpaces total kids’ apparel market. (2013, May 21). just-style.com. Retrieved from https://link-gale-com.ezproxy.snhu.edu/apps/doc/A330619341/ITOF?u=nhc_main&sid=ITOF&xid=69f3447d

January 19, 2020

A Marketer’s Secret Life as a Consumer

As a Marketer, I like to think I am “immune” to marketing: I know what goes on behind the scenes, so I am not mesmerized by the bells and whistles of the front end. I have been through a couple different programs of sales training, so I know every trick in the book used to entice one to buy something. I do not allow sentimental images dancing across the screen to woo me, I am uninspired by inspirational music. I am a veritable fortress unto myself, nothing can crack my defenses.

Until we run out of toilet paper, and I didn’t like the last brand. Or I’m feeling like ‘water lily’ scented deodorant this time, instead of ‘Hawaiian Breeze.’ Or Hautelook is having a sale on Dooney and Burke!

Ok, I must admit I shop, just like everybody else. Well, not just like, but I am a consumer, after all. My experience as a Marketer does impact my buying behavior, but I cannot claim total immunity to being influenced by a great commercial or strategically-placed ad in my social media feed.

What type of consumer would I consider myself? Being a Mother, the majority of my shopping is habitual, to satisfy household needs (Kardes, p. 8). In terms of shopping for my family (i.e., basic groceries, supplies and such), I avoid getting the cheapest option when shopping. I believe in quality, but up to a point: I do keep an eye on my budget, but I have learned that some items are worth paying a bit extra for to get better performance or longevity. But I also understand that something are just over-priced to create hype, and I don’t need to be seen with those things, at this point.

While I might exhibit a degree of brand loyalty, I like to have a couple options for times when my first choice is not available. I am not a variety shopper (Ecommerce, 2019, para. 10) just for the entertainment of it, but I will venture out and try something new if my previous selection of an item was unsatisfactory.

In my previous life selling at the farmers’ markets, particularly as a baker or selling rare varietals from the greenhouse, I would charge a premium price, because my offerings were Artisan, meaning an authentic version, not mass-produced.

A number of items we have in our cultural sphere are watered-down versions of their authentic iterations, “dumbed-down” to appeal to a mass market audience. Examples of this include coffee, beer, wine, tobacco, cheese, bread, even soap. Anyone who has tasted a robust, flavorful micro-brewed beer understands that the generic options in cans or a 12-pack at the grocery store are no comparison. It is same with the coffee, and cheese, and bread, etc.: There exists these items in something closer to their original form, not to be liked by everyone, but appreciated by those who share their lineage. For these items, will pay more when shopping, based upon a mental decision (Kardes, p. 10) that they are better and worth the expense.

What influences my buying decisions?

When shopping for the home and family, I pretty much summed it up above. When shopping for myself, or when buying a gift (Kardes, P. 8), however, my thought process is different. I do enjoy giving gifts, and I will choose based upon what I think the recipient will both enjoy, but also can get good use out of. I would like them to use the item often, and think of me fondly. In most cases, I consider price in gift purchases only in that, unless my relationship with this person is super-close, they will likely feel uncomfortable receiving an expensive gift, and discomfort is not the point of gift giving!

Both in gift-giving and shopping for myself, I usually think of what I need and then look for or research the item (Kardes, p. 9). I don’t hang out looking for advertising to tell me what to buy. A couple years ago I cut the cord with cable, and I see very few commercials, which I prefer. Of course, commercials come find me on social media, but unless I had already thought of buying the item, I do not pay much attention.

Even in the situation I mentioned of Hautelook having Dooney & Burke on sale, I would have already decided I am looking for a new particular handbag, and then hang out and wait for a good candidate to appear, I don’t feel the need to rush out a get just anything.

In my buyer’s journey, I go through the steps of deciding I need/want something, researching the options (best brand, most likely venue to procure the item, be it in-store or on-line), and then decide an optimal price. If it’s an actual need, the price is less negotiable if time is short, but when the item is a want, I can decide what I am willing to pay, and then wait. It seems my purchase decision occurs after the research phase.

I am pretty independent in my purchasing decisions, even if research or marketing says I should be exhibiting a specific set of buying behaviors for my demographic.

As far as post-purchasing behaviors, I like to be as responsible as possible. In my previous life as a farmer, most of the farm outputs could be recycled back into the system (composting manure, feeding leftover produce back to the animals, etc.) so reducing waste is second-nature to me. Only if an item is truly worn-out does it go into the garbage. Anything else I possibly can I either resell, donate, give away or upcycle. And I am mindful of this while making the decision to buy an item in the first place.

So, even though I am still a consumer, I do feel that being a marketer enables me to take a different view of buying: I take an active role in decision-making and research, I have patience and self-restraint, and I am mindful of what will happen to the item when I am done with it. Even the bells and the whistles.

References:

Consumer behavior in marketing – patterns, types, segmentation (no author) (Nov 26, 2019) Ecommerce Growth Blog, retrieved from: https://www.omniconvert.com/blog/consumer-behavior-in-marketing-patterns-types-segmentation.html

Kardes, Frank. Consumer Behavior, 2e.. [MBS Direct].

January 13, 2020