This Week in Marketing: September 25, 2010

I've been thinking lately about incorporating lecture capture into my classes, so I was glad to see a post on the subject on the Tomorrow's Professor Blog.

It was a busy week for Facebook on the PR front. For starters, there was the imminent release of The Social Network, which reportedly paints an unflattering portrait of founder Mark Zuckerberg. So far has Facebook distanced itself from the film that an online Q&A with the cast was scheduled to take place ... on MySpace. So it's obvious why Zuckerberg picked this week to announce a donation of $100 million to the Newark schools--on The Oprah Winfrey Show, no less. Adding to the chaos, on the day of his appearance on Oprah, Facebook was still apologizing for its biggest outage ever, occurring earlier in the week. 

This week's highlights (with applicable teaching topics and links to discussion below):

 

Blockbuster Files Chapter 11

  • The article: Hubris--and late fees--doomed Blockbuster, written by the Associated Press, on MSNBC.com.
  • The facts: A few weeks ago I reported on the rumors that, to no one's surprise, Blockbuster was preparing a Chapter 11 filing. It happened this week. Various pundits have come out of the woodwork, explaining where Blockbuster went wrong and predicting the future of the industry.
  • Classroom uses: While it's easy to see Blockbuster's errors now, this author points out that when Netflix first launched in 1999, it probably looked like a small buffet restaurant, for those who wanted an "all-you-can-eat-at-one-price" experience, whereas Blockbuster was the McDonald's of the video industry. While you could assign the article (which is just one of several good ones available online) to students, you might just want to briefly discuss Blockbuster's downfall as an example of failing to respond to major changes in the marketing environment.

This Bud's For You ... And It's Free

  • The article: This Bud's For You ... And It's Free, from MSNBC (includes a video)
  • The facts: Budweiser, faced with falling sales (especially among younger consumers) will sponsor a free sampling program in bars next week, leading up to a "Budweiser National Happy Hour" on September 29.
  • Classroom uses: I don't usually include stories related to products that some of our students are too young to legally consume; however, the analysts in this 4 1/2-minute video do an excellent job of discussing why brands need to create emotional connections with consumers.

Walmart Looks to Expand Into Urban Areas

  • The article: Walmart's 'aggressive' new convenience store strategy, from TheWeek.com
  • The facts: Walmart is reaching a saturation point in suburban and rural areas, and is looking for a way to expand into urban areas. The company is building on prior experiments with smaller form factors for stores.
  • Classroom uses: This example shows a retailer adapting to different geographic areas and consumer lifestyles. The class could discuss how the needs of urban shoppers might differ from those of suburbanites, and what that might mean for the merchandise and services a smaller Walmart should provide.

Stores Scramble to Lure Budget Shoppers

  • The article: Stores scramble to lure budget shoppers, from The New York Times.
  • The facts: Dollar stores are benefiting from the economic downturn, and some other retailers are adopting dollar-store tactics in order to compete. In addition, dollar stores are adjusting merchandising to meet the changing needs of consumers (for example, focusing more on necessities and less on gadgets).
  • Classroom uses: In addition to showing how firms must adapt to match the marketing environment, this is also a good example of building an entire marketing mix around the needs of the target market.

Figures Don't Lie, But Liars Figure

  • The articles: Top Ten Double-Secret Unknown Facts About Advertising from the Ad Contrarian blog, Stirring Up a Hornet's Nest from Digital Strategy by Josh Klein
  • The facts: The Ad Contrarian posted an article using statistics from various sources to attempt to debunk the notion that online advertising is pushing offline advertising out of its dominant position. Another blogger used some of the same statistics to attempt to debunk the debunking. The articles cover topics from the size of the TV viewing audience to the percentage of total purchases conducted online, to the impact of DVRs on ad viewing and purchase behavior. The stats are taken from various sources, including some academic research.
  • Classroom uses: While the fine points of the argument are probably too complex for undergraduates to grasp, MBA students might enjoy seeing how differently the two authors interpret the same data to support their sides of the debate. It's a good object lesson in the challenges of staying objective when interpreting the results of research. 

How Facebook Sells Your Friends

  • The article: How Facebook sells your friends, from Bloomberg Business Week.
  • The facts: The article offers a good summary of the allure of Facebook as an advertising and marketing platform for firms, focusing in particular on the potential for social sharing to magnify the message.
  • Classroom uses: If you want to cover Facebook advertising/marketing in an IMC or Advertising module, this article should be helpful. You'll want to clearly differentiate the services firms pay for (primarily the rather inflexible and small Facebook ads) from those that are free (such as Facebook business pages and use of the "Like" button).

The Worst Ads of 2010

  • The article: Vote Here for Worst Ad in America 2010!, from the Consumerist blog.
  • The facts: The blog has selected nominees for a variety of "awards," including "Most annoying human spokesperson," and so on. Ads can be viewed, and readers can vote on the worst of the nominees.
  • Classroom uses: An entertaining source of bad advertising examples, though I doubt any of us would agree with every nominee. I have a feeling the Quizno's singing kitties might take the big prize.