Final Post and Reflection on Semester

As the semester comes to a close, I find it necessary to reflect on all that I’ve learned from this marketing course and on what I have learned through keeping this blog.

To begin, I will address one of the most significant things I have learned this semester, which is understanding that the marketing process starts and ends with customers and consumers.

As my marketing professor put it, the consumer is a marketers bread and butter. It is “the activity for creating, communicating, delivering, and exchanging offerings that benefit its customers” and “stresses the need to deliver genuine benefits in the offerings of goods, services, and ideas marketed to customers.” There is no marketing process without consumers and customers because every single element of developing, advertising, and promoting a product is done with the customer in mind.

The first objective in marketing is discovering the needs of prospective customers. New products that launch as a result of identifying consumer needs are usually more successful if the company focuses on the benefits the customer can gain from the product. After identifying what the consumers need and want, they can produce those needs and not produce what customers don’t need or want (obviously).

After selecting a target market, which is the  specific group of persons a marketer wants to sell their product to, it is then that marketers can develop their marketing mix factors, which includes selecting the appropriate product, price, promotion, and place for the targeted consumer.

But the marketing experience extends way past meeting the demands of the consumers. In order to maintain customer relationships, it is important for a company to engage in relationship marketing, “which links the organization to its individual customers, employees, suppliers, and other partners for their mutual long-term benefit.”

In addition to the knowledge I’ve gained about the marketing process, I have also had the opportunity to put these marketing objectives into action via team and individual projects, research, reports and presentations.

I believe that the most effective way to gain knowledge in any field is through applied experience, which is exactly what I gained through the selling of backpacks in a virtual marketing simulation, a semester-long team project. In the simulation, my team and I were responsible for the 4 P’s in the marketing mix--product, promotion, pricing, and place.

We were in charge of creating a product for a target market of our choice and made weekly decisions on advertising and promotions, distribution channels, and changes in the product to suite the needs and wants of our consumers. Through the weekly decision came quarterly financial sheets and feedback from customers about things that did and did not work for our product. After completing a financial analysis on our company after a few weeks of sales, I realized how difficult it was to create a backpack that completely suited the needs and desires of our target market, and how difficult it was to spend money wisely and still get our product properly advertised and distributed. Making these weekly decisions really forced me to understand the weight that each had on our company and product, which meant that our team really had to understand how our decisions to change aspects in the marketing mix and target markets reflected the consumer behavior and financial implications of our business.

Through this experiential learning, I was able to improve my knowledge in analyzing consumer behavior and the risks involved in trying to satisfy those needs. The many presentations we had throughout the semester, particularly the presentations on our financial progress and final results with the simulation really helped me to improve my presentation skills and helped me realize the importance of rehearsing and practicing beforehand, especially when working with a group.

In presenting our financial and final results for the marketing simulation, my team found that we had initially spent way too much money on advertising, which resulted in a negative net income at the end of the game despite the progress in sales we made towards the very end. This realization helped me to understand how marketers roles and functions can have on a company’s revenue and overall success and that many of the decisions they make can really help or harm the company. As a marketer, we had the role of positioning our product properly in the mind’s of the consumer and pricing it at a price that was affordable enough for our target market but set high enough to generate a profit. Through this class and the experiences I’ve had with the assignments and projects, I’ve learned that the role of a marketer is very tough and is a lot of pressure, but it can also be fun getting to create and advertise a new product successfully.

Black friday and Seasonal Discounts

The Holiday season is officially among us folks! I’m sure many of you are still coping with the copious amounts of stuffing and cranberry sauce consumed on and after Thanksgiving, I know I am. And while Thanksgiving is a holiday I certainly look forward to every year, Black Friday is a day that I’m sure plenty of other people look forward to. With the passing of Black Friday, I find it necessary to talk about the pricing strategies many companies adopt during this time of year because, I must say, they’re pretty genius.

As we all know, Black Friday takes place the day after Thanksgiving and is a day that most companies offer their greatest discounts and sales all year round. It is a day that promotes heavy consumerism and spending and that many Americans excitedly take part in for low-priced items that will ultimately serve as christmas presents for friends, family, and loved ones.

I work in retail, so preparing all the marketing and promotional signs for Black Friday was pretty stressful; and while Bath & Body Works offered some pretty great deals that lots of men and women were stoked about, I must say there were definitely some better sales and promotions going on at other stores, like Old Navy.

Did anybody else hear about the crazy promotion Old Navy was having during their Black Friday sales? Here, watch this:

So one million dollars awarded to one lucky shopper? That’s crazy! But what is the real reason for giving away a million dollars? Personally, I believe that this is a perfect example of loss-leader pricing, which is a special promotion where the purpose is to attract customers, not to increase sales, in hopes that they will buy other products as well.

If you watch the advertisement again, you will notice the additional text that comes up on the screen at the end for a different promotion, which informs the customer about the discount they are having in the store, which is that all items in the store are an additional 50% off.

But it’s not just Old Navy, a ton of companies offer outrageous discounts, or reductions from the list price that a seller gives a buyer as a reward for some activity of the buyer that is favorable to the seller, around this time of the year. For example, Forever21 offered deals starting at $6 and offered additional discounts of 70% off certain online orders.

One of the most popular usage of discounts I have come across at stores like Bath & Body Works are quantity discounts, which are discounts that encourage consumers to buy larger quantities of items so they can save more money. It usually offers 10% off purchases of $20 or more, 20% off purchases of $30 or more, and 30% off purchases of $40 or more.

These discounts are usually pretty effective and usually result in customers carrying out numerous bags of product, which means that the pricing strategies these companies set for their seasonal discounts are pretty effective and profitable.

So, I hope you all are ready for the crazy sales that will continue on through Christmas and after New Year's, because I know I am!

The Power of Word of Mouth

Ever heard of the chain store DavidsTea?

Really cute, blue, has tons of teas and hundreds of stores throughout the United States and Canada? 

Well, after opening a location in Burlington, VT, just up the street from where I work, I finally decided to try the place out.

The store had initially caught my eye the few weeks before it opened, sporting a giant sign on the front saying, "Hey Ben, hey Jerry! Have you heard of David?" an instant call for competition, considering it opened up two stores down from the Ben & Jerry's on the corner of Cherry Street.  

However, I hadn't taken much thought in actually trying out the store myself; that is, until two DavidsTea employees strolled into the Bath & Body Works where I work with a goodie bag for all of us employees, filled with candy canes, small chocolates, and a coupon in the shape of a Christmas stocking for a free cup of tea.

Sporting matching bright blue parkas and DavidsTea beanies, the two employees were so cheerful and welcoming in presenting us with the bag of goodies. They spoke so highly of the new store that had just opened up down the street and when I complimented them on their parkas (which were absolutely adorable) one of them replied, "Thanks! The company got each of us employees one!"

A company that cares about their employees and shows great customer service even when I'm not in the store? Yeah, sold. 

 So yesterday during my lunch break, I decided to stroll down to DavidsTea to redeem my free cup of holiday tea, as promised by the coupon and the cheerful employees that brought them to my store. I strolled into the store, instantly awed by the display of tea and decor. I was once again greeted by a group of very happy and excited employees who took so much interest in it being my first time in the store; they offered me samples of their newest teas, provided recommendations on teas that they might think I like, and showed me a demonstration of their newest color-changing seasonal mugs.

Needless to say, a cup of tea and a purchase of 2 mugs for $24 later (hey, it was a BOGO deal that I just couldn't pass up), I can officially say I have jumped onto the DavidsTea bandwagon and it feels amazing! *takes sip from my new mug* 

Festivities and Flash Sales

If there is one thing I have discovered about my own consumer trends this year while taking marketing, it is that I am a sucker for flash sales.

I didn't even realize how bad it was until I found myself online shopping on a friday night, unwilling to leave my room because I knew leaving my shopping cart unattended for even five minutes would give the thousands of other girls, also online shopping in their dorm rooms somewhere else in this world, the opportunity to steal the last indigo crocheted crop top in a size medium that I had just taken an interest in.

Sounds crazy, right?

 I couldn't agree with you more.

You see, I thought flash sales were the bee knees, but after a certain reading in my marketing book, I discovered that flash sales, sales that involve cutting prices for only a few hours, often deceive customers about "the size of the deal they are getting or whether they are even getting one." Because these flash sales happen so quickly, consumers are unable to take the time to work out the math of the sale and can end up making "bad, snap-decision purchases.”

I can definitely relate.

As a college student, I really enjoy and appreciate a good deal or discount when it comes to shopping; I very rarely purchase anything full price, or so I think, and try my best to limit my spending when it comes to buying clothes.

  

Notorious for their affordable prices, Forever21 is one of the most popular retail chains amongst young women and men alike. They have a large selection of clothing with prices ranging from as low as $3.00 to $150.00, which I think is a great example of a Tiffany/Wal-Mart strategy, a form of marketing segmentation that “offers different variations of the same basic offering to high-end and low-end segments.”

Forever21 has online flash sales quite often, but they are only marketed to the consumers that are signed up to receive their daily emails. I believe this helps to create a trend of loyal consumers, which further promotes the 80/20 rule, “a concept that suggests 80 percent of a firm’s sales comes from 20 percent of its customers.”

Overall, flash sales have become, and are still becoming, a very successful form of promoting a firm’s use of online sales. Although they may offer very good deals, I am learning the importance of actually reflecting and figuring out the discount value before making snap-decision purchases and wasting my money on things that I don’t need.  

These Boots Were Made for.. Rain?

If you’ve been in my close circle of friends over the past three years during my time on the East Coast, you will know (and probably roll your eyes) at how long I’ve been in the market for a solid pair of rainboots.

To give you some background, I moved from Los Angeles to Burlington, VT for college three years back. In addition to the new things I had to buy for my college dorm, I also had to purchase an entirely new wardrobe. this included everything from sturdy snow boots, a heavy snow jacket,  wool socks, fleeces (it literally took me an entire month to decide between a Patagonia and a North Face), wool socks, and insulted mittens.

Unfortunately for me, one of the things I failed to purchase in my first few months was a pair of rainboots for the fall and for the dreaded mud season that we Vermonters are so painfully familiar with.  So here I am, in my third year at Saint Michael’s College, in the middle of Fall, without a pair of rainboots.

I know, I know—why would rainboots, something that could easily be classified as a shopping product,  an item for which the consumer compares several alternatives on criteria such as price, quality, or style, take me three years to purchase?

Well, for me, rainboots were initially an unsought product; I knew about them, I thought I might need them one day, but I didn’t exactly know that I needed (or even wanted) them at the time. Now, after ending most of these Vermont rainy days with soaking wet socks and freezing toes, I realize their importance.

So now, the seemingly mundane task of finding a good pair of rainboots has taken me the same amount of time and effort that it would normally a consumer shopping for a specialty product, items that the consumer makes a special effort to search out and buy.

It’s not that I’ve put off buying a pair out of sheer laziness, it’s just that I want to make sure I’m making the best purchase for my money and that I am investing in something that’s going to be durable enough to last me a couple of years.

Although I am much more familiar with the brands that are the most popular here on the East Coast (*cough* L.L. Bean *cough * Patagonia), I still find myself conducting tons of research when in the market for durable products, items that usually last over many uses.

Although many people have highly recommended Hunter’s and Bean Boots (which I’m honestly leaning more towards), I still have my doubts about what will be the most suitable for my needs and satisfy my desires as a consumer.

I certainly never thought that buying a pair of rainboots would be such a high-involvement task for me and that I’d be stuck in the third stage of the purchase decision process for three years, but you know, I’m sure the right pair of rainboots will come into my life eventually.

Until then, I’ll just have to keep stepping around those big puddles on my way to class.

$$$$

Ariana

"What do you mean you don't carry True Blue Spa, anymore?!"

So by now I'm sure you all know that I work at Bath & Body Works and spend my weekends inhaling Japanese Cherry Blossom and Beautiful Day fragrance mists until I'm blue in the face and sneezing my brains out. 

Sounds like a beautiful time, right?

Well, let it be known that a customer yelled me at yesterday because we no longer carry a certain line of product, called True blue Spa, in our store.

After trying to explain to her that we do not carry the line of product in our store anymore and that Bath & Body Works has reduced the line of stores that carries the product, she stared at me and said, "But why would they discontinue it at all? It’s such great stuff!”

My mind automatically went into marketing mode and I, without thinking, responded, "The company most likely decided harvest the item because it wasn't bringing in enough revenue. I would check online to see if it's still available." 

For those who don't know, when a company introduces a new product, it goes through four stages of the product life cycle. The last cycle a product can go through is known as the decline stage, which occurs when the sales of a product drop. When a product reaches the decline stage, the company has one of two choices: it can either delete a product, which means a company drops the product from its product line, or it can harvest a product, which is when a company retains the product but reduces its marketing costs (see video below).

 This it most likely what Bath & Body Works did in terms of the True Blue Spa product line considering it is still available online and there are still some stores that carry it, but it is no longer delivered to every store.

So after trying to explain this to the upset customer and after a brief look of confusion, she straightened up a little and said, "Well maybe I'll send the company an email and see where else I can find it" and then turned away and walked right out of the store.

Besides feeling like a marketing wizard and like I had inadvertently made my marketing professor extremely proud, I had the realization that this class has slowly begun to impact my every day experiences with, and as, a consumer, which must mean I’m learning something!

But back to all things Bath & Body Works, considering that this particular customer was not the first to come in and request a product that the company had decided to harvest or completely delete from their product line, I think it would be useful for the company to issue out a survey to detect the needs and wants of their target market.

It would also be useful for me so the next time an angry customer tries to yell at me for a company decision that I clearly have no authority or control over, I can just refer them to said online survey, find them a new fragrance to be happy about in the meantime, and bask in the fragrance of Japanese Cherry Blossom peacefully.

$$$$

Ariana