In Response to Michael Thompson

Michael Thompson's Blog
In our modern day, it is apparent that the "Overspent American" is getting worse. Do you think that things will continue on that path? When will it eventually be too much?


Until society stops viewing personal assets as success, no, I don't think consumerism will decrease or stop.  The recent recession only made people cut back on materials they were buying, it didn't make them stop. There are standards that people feel they need to meet in order to be "happy"; they buy the million dollar home, the Range Rover, and have the most recent technologies so that they feel successful in the eyes of their peers.


We live in a very competitive society, and companies know that. Companies such as Apple and even UGG know that if they keep producing new products, they can continue to raise the price and people will still buy them because their products are what people "need".  People in our society feel that they need to have the newest products because that is the only way they will be noticed.  


As long as companies keep producing new and improved products, the percentage of "Overspent Americans" will keep growing.  Debt is going to increase in many American homes because people care more about image than they do on their income.  Even if this means working 70 hour work weeks in order to pay the mortgage on their customized Mansions.


Perhaps once our parents pass and we are handed bills for hundreds and thousands dollars in debt our generation will realize the severity of the "Overspent American".
Do you think by raising prices companies are playing a part in the amount of debt Americans have?

ELLE Magazine does Facebook

ELLE Magazine, known for their high fashion trends and shopping tips has recently spread to Facebook.  Customers no longer have to purchase the clothes found in ELLE to show their friends.  The ELLE fan page on Facebook now has the option to view their "Trend Guide", which allows users to view six different models in six different trends and choose if they "love", "want", or "own" a particular item.  After rating the article of clothing, it appears on the users Facebook page for their friends to see.  The fan page also has a link to the designers webpage where you can purchase the item.


The "Trend Guide" will be updated seasonally and will stay up to date with what ELLE is promoting in their magazines.  Vice President of ELLE, Kevin O'Malley made a statement that this campaign is not meant to completely increase their sales, but to increase their social networking with their customers.  However, O'Malley is unsure of how users will feel about this new movement.  The campaign hopes to widen their fan base to Facebook users who may not read ELLE Magazine by allowing other users to share the materials ELLE posts to Facebook.


In an attempt to strengthen their fan base by increase social networking, do you think Facebook is number one network to use?  How could an increase in use of Twitter and Blogging help strengthen their fan base?

Proctor and Gamble Respects Mothers

Proctor and Gamble, one of the largest advertising companies for some of the most popular products in everyday living has announced their new campaign; thanking mothers worldwide.  P&G's new campaign is focusing on mothers of past present and future Olympians.  The commercials are going to be a 20 second run through of a mothers day  as she wakes her young child up, brings them to practice, runs errands, cooks and cleans to emphasize the work that mom's do to assure the happiness and well-being of her child.


It seems that Proctor and Gamble wants to focus their marketing and advertising towards mothers due to the number of brands that mothers trust enough to supply to their children.  This seems like a genius way to target market in the most extreme ways.  P&G has learned that by flattering their target market (mothers) is an effective way to advertise.  In many American families, the mothers are in charge of grocery shopping and of course they are going to buy the brands that appeal to them.


Proctor and Gamble knows that they have many popular brands such as Pampers, Downy, Crest, Bounty, and Puffs which are important when raising children.  They also know that children have no control over what mom puts on the grocery list, which means their only hope is to market to appeal to the mothers.
Targeting mothers also results in brand loyalty as the children grow older.  Once the child starts shopping for themselves they are going to recognize the brands they grew up with.


Do you see any possibly disadvantages for Proctor and Gamble as they focus their marketing on mothers?

In Response to Tim

How can Nokia get off of the ropes?
http://21stcenturypox.blogspot.com/2012/04/nokia-shares-fall-to-14-year-low.html

It seems that Nokia needs to reevaluate their entire business strategy in order to keep from shutting down.  Can you say KODAK?!


If Nokia doesn't step up and change their products to the same product they market, they are going to find a massive drop in customers.  Every television station has been flaunting Nokia's new phone and the new apps for it.  However, shipping 900 phones with a software error which prevents the phone from being able to access the internet almost cancels out all of the efforts put forth by the marketing team.  


Nokia's employees need to work together as they find solutions to regain their reputation.  Marketing needs to work with the IT specialists to make sure that what they are marketing is accurate.  Perhaps to prevent going bankrupt, they should cut back on the marketing and advertising of the new product until all of the kinks are worked out.  Another solution to "get off of the ropes" could be to cut the price of the phone until they know that it is going to be a success for the company.


 As for the regaining their reputation immediately, marketing needs to release a statement apologizing for the software error.  They need to discuss what went wrong and what they are going to do to assure that it doesn't happen again.  The public eye wants to hear that they can once again trust Nokia phones.  


What other plans may Nokia want to consider to help regain their reputation?

Denny's creates a mini web series

Jason Bateman and Will Arnett have taken a on a new adventure by producing a new mini web series for Denny's Restuarants.  Although the new show "Always Open" may only be a couple of minutes long and only shown on CollegeHumor.com and the Denny's Facebook fan page, it features many celebrities in their attempt to change their target market.

Denny's attempt to appeal their food to customer between 18-25 is doing so in a comedic way.  With Hollywood stars such as Dave Koechner, Maya Roudolph, Conan O'Brian, and Sarah Silverman have been featured in the show that takes place at a Denny's on Sunset Boulevard.  Since the series started in March, they have already reached more than six million views.

The marketing director of Denny's reveals that there is no mention of the restaurant itself until the end of the show.  However, it is made quite obvious to its viewers that the show takes place in the family diner. 

It seems that Denny's has decided to flaunt it's 24 hour a day food supply to college aged students.  Perhaps they have realized that their locations may be relatively close to college campuses and local bars and are trying to appeal to this age group for a great place for a late night snack.

How do you think this new series will affect the business at Denny's?  Will the attempt to appeal to a younger crowd work?

In Response to Jaycelyn...

Do you think Apple is on the right track? If other businesses were to follow suit do you think they would do better in sales? ...Would our expectations change?
http://jkaypfenning.blogspot.com/2012/04/10-things-you-can-learn-from-apple.html


When people think of Apple, no one seems to think of the cookie cutter business man.  Students, Musicians, Intellectuals, Families and even Artists are avid fans and loyal customers to Apple.  Every time you walk by an Apple store, it's flooded with customers of all different interests, race, and gender.  By hiring people of different interests, I think Apple is doing the right thing in order to attract the large array of customers.  


As for the marketing aspect of Apple, their mentality of selling may be the biggest selling point for customers.  When you walk into an Apple store, their employees don't attack you with a million questions.  They allow you to look at their products and approach you after you show a great deal of interest in a product.  Also, each employee knows how to take each individual product and sell it to all different types of customers.  Last year when I went in for a new Ipod, they were realistic in talking about each product and actually sold me on the cheaper Ipod instead of the brand new one.  


Apple knows that their target market ranges from ages 10-95 (roughly) and they know how to sell products to each age group that walks into their store on a daily basis.  If more stores were to adapt the relaxed atmosphere practiced by Apple, I think they may find chaos... Not all companies or stores have such a large range of age, gender, ethnicity, and race in their target market.


For example, it's not very often an eight-five year old man will walk into Hollister looking for a new pair of jeans.  If other stores were to change their ways of selling products, they may find a decrease in business.


How do you think the outcome would be if other companies adapted Apple's way's?

Linsanity spreads to Volvo

Recently, Volvo has announced their new marketing campaign which hopes to bring in a customer base of more than just soccer moms and hand-me-downs.  Jeremy Lin, the Knick's all-star point-guard has agreed to appear in Volvo's advertisements for America, China, and other Chinese speaking countries.

Volvo is trying to widen their customer base by adjusting their target market to both the Chinese population and younger aged population.  By hiring Lin, both Chinese and one of the most recognized athletes, Volvo hopes that these two different types of population will purchase one of their cars.  By appearing in advertisements in China, Volvo also hopes to expand business with their young population as well as the middle-class Chinese population.


At the press release announcing the news, Lin took the podium and discussed why he agreed to take the offer with Volvo.  He admitted that they are affordable, and high quality cars and that it why he is trying to decide which Volvo he himself should purchase (although unsure about having a car in NYC.)


One thing to be cautious about with their new spokesman is the non-athletic, older population of both the USA and China.  By focusing their ad's on Lin, there may be a slip in their marketing to older men and women who may not be familiar with the basketball star.


What other troubles may Volvo face by hiring their new spokesman mainly to gain customers of young and Chinese populations?