Marketing- Quarter 1 HW and Notes PDF

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Week 1Day 1Coca Cola a) What did you think of this ad? Did you like or dislike it? I really enjoyed the Coca-cola Happiness Factory ad because I am a huge Disney movie fan so I love animations and the creativity behind it, and this advertisement was exactly that. In general, waiting for a bottle of ...

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Week 1 Day 1 Coca Cola

– a) What did you think of this ad? Did you like or dislike it? I really enjoyed the Coca-cola Happiness Factory ad because I am a huge Disney movie fan so I love animations and the creativity behind it, and this advertisement was exactly that. In general, waiting for a bottle of coke is very mundane, but this ad showed a new exciting approach that really it’s an exciting and complicated process. My favorite vending machines are always the see-through ones because you get to the see the machine actually pick up the bottle and drop it which is very exciting. After this ad, even when the machine is not see-through, I’ll be able to spend my time waiting for the coke bottle to drop imagining this exhilarating procedure that is secretly taking place. The coke bottle in the ad looked amazing because the ad really showed in detail how cold and refreshing it looked. Additionally, the ad was very colorful and had cute characters so it very much caught my attention and I felt a lot happier after watching it. In conclusion, I thought it was spectacular for its creativity and its eye-popping scenery and I enjoyed every second of it.

– b) In your opinion, what message is the ad trying to convey? The ad was trying to convey how amazing the quality of the product, being the coke bottle, is and emphasize how unique each one is. Even though Coke in general manufactures their bottles in mass production, the advertisement was showing that each bottle is carefully crafted for each consumer. The ad showed a very elaborate process that lasted nearly a minute and required hundreds of animation workers, just to create one bottle for the individual at the vending machine. The message of the ad was that each and every Coca-cola bottle is specialized to be fresh and great tasting for their consumer.

Facebook – a) Why did Facebook create this ad? Facebook has been under a lot of scrutiny recently for taking advantage of all the private information of each of their users and giving it out to different groups which led to a hearing in Congress which has been dubbed the Facebook–Cambridge Analytica data scandal. Facebook is trying to do a total turnaround by removing the stigma that they are just an evil, large corporation trying to steal the world’s privacy for money in advertisements and consumer information by establishing their original core values of being a way to connect the world in a fun and simple way. Facebook has always been

the best social media website, but even before the scandal, to many young people, especially high school and college age, the website was becoming a lot less “cool” do to the fact that there are many advertisements and other adult oriented features. Originally, Facebook was just for college students so they created this ad to show their consumers that are going to change by going back to the original website that they were known and loved for.

– b) What did you like and dislike about this ad? I really enjoyed how the ad went through the endless possibilities of the upside of Facebook. It showed that you can meet a lot of new people with similar interests as you and even discover interesting things about people that you might even be closely related to, that you never knew before which can strengthen your relationship with them. The ad was very simple which was good because it showed the core idea of what Facebook is all about in a very positive light. The ad also had great background music to help add to the effect that Facebook understands what they did wrong and now they are making the changes to go back to what made them so great. – c) Are you currently or previously a Facebook user? Personally, I myself have even been using Facebook for nearly 7 years and I still have an account. I have blocked it on my phone though because I find that it’s very time consuming and it mostly is just a waste of time and created another artificial self-esteem booster that wasn’t actually real. I still have it on my account to stay connected with my friends world-wide for instant messaging occasionally and friending pretty girls that I’ve met on facebook. – d) Has your opinion of Facebook changed recently? How so? Very much. I used to think that Facebook was an amazing website that helped strengthen my relationships with my friends and increased my popularity. Now though, since I’ve stopped using Facebook almost entirely, I find that when I talk to people, I could easily distinguish between though that use Facebook/other social media and those that don’t. Those that do, I often can sense that are constantly looking for approval and are never happy with their achievements unless hundreds of people recognize it. Those that don’t I find are much happier with their lives and are constantly trying to make themselves better people and looking to have real fun by actually hanging out with friends in person and doing real activities. Facebook still has a lot of good as it is a great way to connect people across the planet and it is a fun way to spend a few extra minutes on the bus, but I find that it is very hard to maintain a good, healthy balance, so I decided for my own interests to block it.

Bio 1. What year in school will you be in the Fall?

2. What is your major or intended major? 3. Where is your hometown? 4. What kind of job/career would you like to have when you "grow up"?

My name is Zachary Greenberg and I will be a Sophomore in Yeshiva University this fall. This is my first year in the business program because I was studying in Israel the past two years. I intend on majoring in either marketing or fiance, but I will probably get a better idea once I’ve taken all of the intro courses. I have lived my whole life in Bergenfield, New Jersey. In the future I want to pursue a career working for Disney and trying to open up a theme park in Israel. Day 2 Phone

a) Which company provides cell phone service to you? I use Verizon Wireless for my cell phone service. b) How long is your contract with your cell phone service provider? Our contract with Verizon is two years. c) In a few short sentences, explain what profit benefit your cell phone service provider will gain by having you as a loyal customer for several years? (Be specific but also use the terminology mentioned in the video).

There are numerous profit benefits which Verizon received by having me as a loyal customer. For starters, there is the base profit which is the total cost that I am currently paying in my two year plan. Second, there is the revenue growth that since I already use Verizon for my phone service that I’ll start using Verizon for other members of family’s phones as well and I might even start using Verizon for different features including TV and cable because I am a loyal customer. There is another factor of cost savings which grows as I get more familiar with Verizon because I would no longer need to call customer service for help and I would be able to do all my paperwork and billing online which will save Verizon money since they won’t have to hire as much staff for customer service and they could have them work less hours, and they would no longer need to send me paper bills. Additionally, there is the referral aspect that once I am a loyal customer, I will tell people around me how much I enjoy Verizon and encourage them to use Verizon as well. This saves Verizon a lot of money in advertising, and I could bring in a lot of potential customers which increases revenue. Lastly, once I have used Verizon for so long, Verizon can use price premium to raise the prices of my plan and I won’t switch to a different service because I am already used to Verizon so a few

extra dollars won’t matter to me, but Verizon just earned a profit and can continue to raise the prices over time.

Value to the Customer Examine the graphic below and answer the 3 questions completely.

a) Of the 3 types of "Value to Customers" that we discussed in today's lesson, name the type of value that best describes the kind of message shown below. Explain why in a couple of short sentences.

This advertisement is an example of economic value. The ad shows how cost effective making a homemade cup of coffee is compared to the average retail price of a cup of coffee. In just one cup the ad shows that a person saves on average over $3. So in an economic value, a person would want to be practical and choose the cheaper option to save money immediately because every consumer has a maximum price he is willing to pay and the retail price is much closer to that maximum price than the homemade price. The ad also compares the homemade cup to an existing, competitive product, which is the average retail coffee, and it shows how the homemade cup saves you a lot of money. Then the ad shows how the cost of 30 cups of retail cups are equivalent to 175 homemade cups. This shows the total life cycle cost that in just one month, the consumer will get an additional 145 cups of coffee if he chooses to buy homemade coffee over retail coffee. The ad concludes by showing the advantage in a humorous light that over a year, the consumer could save enough to give a cup of coffee to an entire village. This ad uses economic value to present that buying homemade coffee can save a person a lot of money, both immediately and in the long run especially.

b) Let's say the company Mr. Coffee uses the graphic below to advertise their new home coffee maker. Name 1 reason you think the ad might be effective at convincing consumers to buy the new coffee maker. If Mr. Coffee used this advertisement it would be very effective because it shows viewers a major advantage that they didn’t realize on drinking homemade coffee over retail coffee in that it’s significantly cheaper. Most people don’t even realize how expensive retail coffee is, but when it’s compared to homemade coffee, the distinction is clear how much more expensive retail coffee is. Everyone wants to save money and this advertisement perfectly displays how much the consumer will save if he buys Me. Coffee to make homemade coffee.

c) Also, name 1 reason you think the ad would not be effective at convincing consumers to buy the new coffee maker. The advertisement might not be effective because it does not include the amount of time it takes to make a homemade cup of coffee. Early in the morning, the average person wants to do as little as possible, so it might be worth it for the consumer to spend the extra $3 on retail coffee then to spend a few minutes or so brewing his own homemade cup of coffee. This is especially true for a person who earns as much money in the time it takes to make a homemade cup of coffee as the price of retail coffee. To many people, the perks of getting instant coffee outway the money saved from homemade coffee and this advertisement does not address this issue.

Day 3 JCPenney Video

a) Do you think JCPenney marketing practices are dishonest? Reply "Yes" or "No" in the "subject" box of your posting. Yes b) Explain why you answered "yes" or "no" above with a few short sentences. Since there is no correct answer simply answer how you feel after watching the video. I think it was for sure a genius tactic because I know that I love getting a good deal, but a company can not make up a lie by claiming that this is a “sale” if it was actually just the original price. JCP made a statement defining their own terms of what a “sale” is by saying that it must be “previously sold at regular price for a reasonable period of time” and these “sales” were not that at all. These “sales” were just falsely advertising the original price and claiming that now it’s a discount price. This is extremely dishonest and goes against their definition of what a sale is. They are going against their own morals to fool the customers into thinking that they were getting a good deal just to boost their business revenue which is lying and false advertising. Improving ethical decision making & social responsibility a) Are ethics and social responsibility the same thing? No b) Why or why not? Explain your answer in part "a" in 2 or 3 short sentences that summarize what today's lesson pointed out. Ethics are the basic moral expectations that a company established for itself by setting a code of conduct to act honestly and by establishing guidelines for their employees to do what the company defines as morally acceptable, or else the employees will suffer consequences and social responsibility is the company going above and beyond by becoming a leader and outgoing source of helping the world using its own resources. Social responsibility is different from ethics because whereas ethics focuses on not doing the wrong thing by minimizing its negative impact on society, social responsibility is how the company can improve the world and be a good citizen for the world by maximizing its positive impact on society. Ethics is preventing the negative, while social responsibility is having a positive impact on society. Day 4

Walmart Rebate a) Notice the rebate offer for the vitamin product. How much is the vitamin product after the rebate? The product is free. b) Would you say that the rebate form is easy or difficult to complete? Explain in a few brief sentences. I would say that it is easy, but time consuming. For a person who thinks time is money, he wouldn’t want to complete it because the money saved is not worth the 15 minutes it takes to fill out the form and send it in. But for someone that is a penny saver, he would recognize that it’s worth putting in the time to complete the form to get the money back. The process is easy though, just fill out a few numbers and then mail it in, but because often times a person is preoccupied with so many other things, he would often forget to fill it out. c) Have you or your family ever purchased items with rebate offers before? If yes, do you always get your rebate money back? If not, what has happened to cause you to not receive your rebate money in the past? Yes, and we always get our money back, for example with Staples when we purchase a $50 box of paper, we get $15 back when we do a mail-in-rebate.

Digital Camera a) Describe one non-compensatory rule you could use in buying the digital cameras listed on the webpage?

A person whose highest attribute that he is looking for is high quality pictures. b) Using the rule in part "a" which digital camera(s) could you end up buying? A person whose most importants attribute is the highest megapixels, he would most likely want the Nikon D850 because it has the highest Megapixels of 45.7, which is over 20 MP more than the next highest camera. c) How is the non-compensatory rule you described in part "a" different from a compensatory rule to buy the digital cameras listed on the webpage? Explain in a few short sentences (no need to write more than that). Non-compensatory rule is different from a compensatory rule in several ways. The non-compensatory rule is that a person chooses the highest rated product of the attribute that he deemed most important. This rule is less flexible, but is a much easier way to make a decision. While the compensatory rule considers each and every attribute at one time and adds it up to find the best overall product. Here, the ratings can compensate for each other so if there is one low rating, the other rulings can make up for it. In the non-compensatory rule, there is no compensation; once a person picks a function that he’s looking for, it knocks out all other possibilities.

Quantitative Assignment 1. The manager of Moxa, a local coffee shop, is interested in bringing in more customers so he hired an YU student to hand out flyers on campus to try to reach the student body. The owner of the shop wanted to know how much it would cost to bring each new customer into the shop before she signed off on the plan. Using the information below, please calculate the customer acquisition cost for Moxa (the cost to acquire each customer) The Cost for fliers = $.25 / unit The Cost for a student to hand out fliers = $1000 for entire campaign Number of students who will be given a flier = 25,000 Based on information provided by the manager of Subway, the restaurant next door, the Moxa manager determined that 80% of the students who received a flier throw it in the trash. Of those who actually kept it, 1/4 read it. And of those students who kept and read the flier, 10% actually stopped by the shop and purchased a beverage. $1,000 = The total cost for students to hand out fliers $0.25 * 25,000 = $6,250 The total cost of fliers $1,000 + $6,250 = $7,250 The total cost 25,000 fliers - (25,000 fliers * .8) = 25,000 - 20,000 = 5,000 The total number of students who kept the flier

5,000 (students who kept the flier) * ¼ = 1,250 The total number of students who read the flier 1,250 (students who read it) * .1 = 125 The number of students who stopped by the shop to purchase a beverage $7,250 (total cost) / 125 (total students who stopped by the shop to buy a beverage) = $58 per customer

2. The manager of Moxa is also considering running a full-sized ad in a local newspaper, the Washington Heights News. Running an ad costs $5,000 and 10,000 students read the paper everyday. Of the students who read the paper, 1/2 of them actually notice the ad. Of those who notice the ad, 75% drink coffee. Of those students who notice the advertisement and drink coffee, 20% make the trip to Moxa and buy something. Would handing out fliers be more or less affordable than running an ad in the Washington Heights News? (Not a yes or no answer, explain how you know with numbers) $5,000 = (The total cost of an ad) 10,000 (students who read the paper) * ½ = 5,000 (students who noticed the ad) 5,000 * .75 = 3,750 (students who noticed the ad and drink coffee) 3,750 (students who noticed the ad and drink coffee) * .2 = 750 (students who go to Moxa and buy a beverage) $5,000 (The total cost) / 750 (students who go to Moxa and buy a beverage) = $6.67 (per customer)

It would cost on average per customer $58 for Moxa to hand out fliers, while only $6.67 per customer to have an ad in the newspaper, so it is much less affordable for Moxa to hand out fliers than to run an ad....