Marketing Case Homework Besides Being Method Communication Online Social Networks Are Also Innovations That Are

PART II

CASE 2-1 IKEA USES MARKET RESEARCH TO ADAPT FOR GLOBAL

MARKETS

1) IKEA spends a considerable amount of time researching new markets before entering them.

What are some issues that IKEA should be considering?

2) Chapter 2 discusses individual versus collective other-oriented values.

a) China is one of the countries discussed in this case. On face value, would you expect

China to have a more individual or collective orientation?

b) The text discusses how cultural values evolve and individualism is on the rise in some

Asian countries, especially among younger consumers. What evidence do you see in this case

of both individualism and collectivism?

a) China is a classic example of a country having a collective orientation.

3) Another cultural value discussed in Chapter 2 is tradition/change. In most of the cultures

described in this case, it is traditional for furniture to be already assembled upon purchase,

and perhaps even delivered.

a) In which of the countries mentioned in the case would the consumers likely have the

hardest time dealing with the change of purchasing furniture in a flat-packed form that needs

assembly?

b) How does IKEA overcome this discomfort?

a) The case mentions that ethnography revealed that Indian consumers particularly do not

4) IKEA’s model of purchasing furniture that is flat-packed and then assembling it yourself at

home is a new and different way of doing things for consumers in many countries.

a) In terms of innovations (see Chapter 7), what type of innovation would this be

considered?

b) Does your answer for part a change if the furniture is delivered and assembled or

installed by IKEA?

a) Because there is some amount of learning and a moderate change in behavior involved in

5) Consider the ten factors that affect the spread of innovations discussed in Chapter 7 (see

Table 7-3 for quick reference).

a) Which of these factors would play a positive role in how quickly acceptance of shopping

for furniture using the IKEA model would spread? Explain your answer(s).

b) Which of these factors would play a negative role in how quickly acceptance of shopping

for furniture using the IKEA model would spread? Explain your answer(s).

a) Answers will vary. However, examples of acceptable answers are relative advantage and

6) Perform a search on the internet to discover the list of countries where IKEA is currently

located (hint: in 2018, there are 30). Find a country that is not listed and imagine that you are

an executive at IKEA. Brainstorm ideas of how you would need to adapt the products,

communications, pricing, etc. to fit the culture of your chosen country.

7) Chapter 5 discusses marketing to the Hispanic subculture in America. IKEA made an effort

to better understand American Hispanics in California through ethnography.

a) What adaptations did IKEA make to better target the American Hispanic segment?

b) Based on your knowledge of this subculture from reading the text and your personal

experiences, what suggestions would you give a marketing manager at IKEA to best target

this segment?

a) IKEA modified products in stores in that region to have more bold colors and elaborate

CASE 2-2 CVS CAREMARK DISCONTINUES THE SALE OF TOBACCO

1) What type of marketing strategy is CVS using?

Cause-related marketing is the type of strategy in this case. By discontinuing the sale of

2) What nonverbal communication category does cigarette smoking fall under?

Cigarette smoking relates to the nonverbal communication category of etiquette. While in the

3) Chapter three discusses several American cultural values. Smoking can relate to individual

values from each of the three categories. Decide which of the values in each of the following

categories best relates to smoking and describe that relationship.

a) Other-oriented values,

b) Environment-oriented values

c) Self-oriented values

Part II Case Solutions-4

4) What impact do you think CVS’s decision to stop selling tobacco products will have on a)

it’s long-term sales and b) smoking trends in America?

a) Answers will vary here. Some students may point out the lost revenue that was once

5) The case mentions a trend since the 1950s that there has been a cultural trend away from

smoking. Young people today may have a different perceptions and level of exposure to the

shifts in cultural norms dealing with smoking than those in other generations. Perform a brief

interview with members of different generational groups to find out how perceptions may

differ for different age cohorts. Compare and contrast their perceptions and stories of how

smoking was normally treated in different periods of American history. Interviewees should

be drawn from at least three of the following generations

a) Pre-Depression Generation

b) Depression Generation

c) Baby Boom Generation

d) Generation X

e) Generation Y

f) Generation Z

6) What type of reference group would best describe smokers today? How would your answer

differ if you were referring to smokers in the early to mid-1900s?

In today’s society, smokers are often a dissociative reference group. This group now has a

7) Which demographic groups have the highest incidence of lung/bronchus cancer (in terms of

race and sex)? Would this group be a good target market for CVS Caremark?

The highest incidence of lung/bronchus cancer is in African American men, followed by

8) What effect has CVS Caremark’s decision had on public perceptions of the retailer?

CVS Caremark’s decision has enhanced its image in public perception.

9) Do you feel that the consumers who are fully-engaged, indifferent, or actively disengaged

represent the best target market for CVS Caremark? Why?

Answers may vary and each group could be correct given sufficient explanation. One

10) Based on your answers for questions 7 and 9, devise a marketing strategy for CVS Caremark

to market their smoking cessation program to an ideal target market (as described by

demographics and level of engagement). Make sure to consider the sections of chapter five

that discuss nuances of ethnic subcultures.

CASE 2-3 BEATS BY DR. DRE’S RISE TO THE TOP

1) Please reference the other-oriented, environment-oriented, and self-oriented values in the

text. Choose a few of these values and explain how they are relevant to Beats by Dr. and

Beats Music?

2) Refer to the generation groups and social classes in chapter 4, the ethnic subcultures in

chapter 5. With all of these concepts in mind, describe an ideal target market segment for

Beats Music?

Answers will vary. However, here is one possible answer:

smartphones and tablets

3) Refer to Table 5-2 in chapter 5, entitled, “African American Segments Identified by

Yankelovich.” Imagine that Beats has decided to target African Americans. Which of these

segments would be the best target market for Beats? Explain your answer.

Several answers may be correct, given that the student provides a good rationale. However,

4) Refer to the three categories of innovation in chapter 7. Which category of innovation are the

following products? Justify your answer

a) Beats headphones?

b) Beats Music?

a) Beats Headphones are a continuous innovation. They plug into existing products and are

5) Think in terms of family decision making from chapter six. What members of the household

are likely to play each of the following roles in the purchase decision for Beats Music of

Beats headphones?

a) Initiators

b) Information gatherers

c) Influencers

d) Decision makers

e) Purchasers

f) Users

6) Reference the section of chapter 7 on reference group influence.

a) Are Beats headphones a necessity or nonnecessity?

b) Are Beats headphones visible or private?

c) Given your answers for a and b, how has beats by Dr. Dre capitalized on this in the past?

d) Do you feel reference group influence will play an important role in the success of Beats?

Explain your answer.

7) Review the section of chapter 7 on marketing strategy, WOM, and Opinion Leadership.

Which strategy or strategies of those listed has Beats by Dr. Dre used to become so popular

in its market?

Beats by Dr. Dre used several of these strategies in the past, especially product sampling,

CASE 2-4 HOW SOCIAL MEDIA NEARLY BROUGHT DOWN UNITED

1) When Dave Carroll posted his video on YouTube, it went viral. What American value do you

feel motivated consumers to pass along this “video complaint” to others?

One of the American values discussed in Chapter 3 that applies to this situation is the value

2) Of the three groups of influencers identified by Forrester, which group or groups do you

think were most likely responsible for Dave Carroll’s video going viral? Explain.

The group of influencers that would most likely be responsible for Carroll’s video going viral

Part II Case Solutions-8

consumers.

3) Based on your answers to 1 and 2, develop a marketing strategy for United to “recover” from

their service failure. Specifically, address the following:

a) What “message” should United be sending to the general public?

b) What “media” outlets (traditional, online, and/or social) should they be using?

Because the attack on their brand was launched via online social media, that same outlet

4) Chapter 7 defines and discusses opinion leaders. Are the individuals that create viral

complaint videos opinion leaders? Why or why not?

The key aspect of opinion leaders is that they are product specific based on enduring

5) Chapter 7 also discusses guiding principles that marketers should use when engaging in

social media. How have United Airlines or other companies who have had similar issues

operate based on these principles?

6) Several companies are using crowdsourcing as a way for customers to help solve one

another’s problems. How might companies harness the power of crowdsourcing to combat

instances of viral negative WOM?

Companies can use crowdsourcing in multiple beneficial ways. The most relevant to this case

7) Besides being a method of communication, online social networks are also innovations that

are being diffused. Are online social networks continuous, dynamically continuous, or

discontinuous innovations?

Students may suggest that online social networks are dynamically continuous or

8) Describe the typical user of each of the seven social networks described in Table A.

CASE 2-5 GRACE AND FRANKIE: THE INVISIBILITY OF BABY

BOOMER WOMEN

1) Chapter 3 discusses several values in American society.

a) Which of those values relate to the situations described here in this case study? Why?

b) How well do you feel the values you described in part a of this question match with the

textbook’s interpretation of each value’s placement of current, traditional, and emerging

states in Figure 3-1 in Chapter 3? Justify your response.

a) Age/Youth and Sexuality/Abstinence are obvious answers. However, other answers such

2) Chapter 2 examines values from a cross-cultural perspective, while Chapter 3 examines those

same values from an American perspective. The value placed on aging can vary from culture

to culture. This particular case is written in an American culture context, where youth is

valued over age. Do you think the story would be different in another country, such as Japan,

that places a greater value on age? Explain your answer.

Answers will vary. However, an article about Japanese advertising to Baby Boomers, found

3) The case highlights how Baby Boomer women are largely invisible and forgotten by

marketers, especially at New York Fashion Week. Why do you think this once sought after

and valuable segment of women is now virtually ignored?

Answers will vary. However, the case suggests the neglect of Baby Boomer women is not

4) Baby Boomers have not become invisible to all marketers and companies. Brainstorm and

research an example of a company that actually is targeting Baby Boomer women. Write a

brief summary of: a) the name and background of the company, b) describe the product the

Part II Case Solutions-11

Boomer women.

5) Chapter 4 discusses many different generational groups.

a) According to what you read in the case, which of these generational groups is most and

which is least targeted by marketers?

b) What are some suggestions that you would give marketers on how to reach out and be

more appealing to Baby Boomer women.

6) Perform primary data collection yourself to investigate this phenomenon. Assemble a small

focus group of Baby Boomer women. If you have trouble locating enough participants,

perform a depth-interview with one Baby Boomer woman. Ask them/her about their/her

opinion as to whether marketers are ignoring their segment. Using the Grace and Frankie

example could be a good way to start the conversation. Ask them/her about how they/she

feel(s) about being ignored (if that is the sentiment). Ask them/her what they/she would

prefer marketers and advertisers to do differently in order to better target Baby Boomer

women. Write a brief summary of your findings.

CASE 2-6 AMERICAN BEAGLE OUTFITTERS: APRIL FOOL’S JOKE

TURNED REALITY

1) Given the unusual circumstances of American Eagle’s launch of its American Beagle line, do

you feel that this April Fool’s prank was genuinely a prank turned reality or do you think that

it was actually a planned launch and American Eagle was testing the waters in a way that

created consumer engagement and buzz in the market place? Or perhaps you have another

opinion? Explain your answer.

2) As part of the launch, American Beagle allowed the consumer to sign up for early sales

before the dog apparel was released.

a) What category of adopters discussed in the section of chapter 7 on diffusion of

innovations would the consumers that signed up early fall into?

b) What are some possible reasons behind American Beagle offering early sign ups?

a) Innovators because this is the very first group of consumers that will adopt the product.

3) Chapter 3 describes four consumer types with respect to their responses to cause-related

marketing. Describe how each of the following groups would have a different perspective on

cause-related marketing and how they would react to the American Beagle campaign

partnering with ASPCA.

a) Skeptics

b) Balancers

c) Attribution-oriented consumers

d) Socially concerned consumers

4) Refer to question number 3, which of those groups of perspectives on cause-related

marketing do you personally belong? Why? Explain your answer thoroughly.

Answers will vary. The important part is that the student provides a reasoned rationale for his

5) Chapter 4 discusses several generational groups. Which generational group do you think

would serve as the best target market for American Beagle dog apparel? Would more than

one be viable? Explain your answer.

good customers for dog accessories and services, given that many of them do not have

6) Chapter 6 describes various stages in the household life cycle. Which of these stages would

serve as best target market for American Beagle dog apparel? Would more than one be

viable? Explain your answer.

Many of the stages would be viable. However, the stages that include children in the

7) Please refer to the table called “Pet Owners Behavior during Recession” with shows results

of a survey in the midst of the recession in 2008. Now that there has been some economic

recovery, the results may differ.

a) Perform a survey of modern-day pet owners asking the same questions. Compare and

contrast your results with those from 2008.

b) Record the generation for your respondents and perform a cross-tab analysis based on

that data.

c) Record household lifecycle stage and perform a cross-tab analysis based on that data.

CASE 2-7 TIDE GOES AFTER GREEN WITH NEW PODS

1) Table 3-1 describes a green segmentation scheme of consumers that includes psychographic

and demographic information. Choose four of the eight segments and describe the likely

reaction that each segment will have to the introduction of Tide Pods.

2) Chapter 7 discusses diffusion of innovations.

a) Identify whether Tide Pods is a continuous, dynamically continuous, or discontinuous

innovation.

b) Then, evaluate Tide Pods as an innovation based on Table 7-3 (use college students as the

group of consumers for this example).

Compatibility

7

Fairly compatible – still putting product in washer with

formulation. Competition may erode this in the future.

Observability

1

Low which limits diffusion rate.

triable.

3) Consumer tests show that some people are reluctant to use premeasured laundry tablets

because they learned to do laundry differently from their parents.

a) How does this apprehensive attitude toward Tide Pods relate to the consumer

socialization process discussed in Chapter 6?

b) Recall and discuss examples of how your family has influenced your own consumer

behaviors.

4) Chapter 7 discusses influencers.

a) Who are likely to be the influencers for Tide Pods?

b) How can P&G best target and utilize them?

If P&G can find influential bloggers (so-called “mommy bloggers” or environmental

5) How could P&G build buzz or WOM for Tide Pods?

Marketers can create buzz or WOM in many ways, such as communicating with, and giving

6) Using the demographic characteristics of green cleaners listed in the case develop a

marketing campaign including (a) core theme, (b) body copy, (c) key visual aspects, and (d)

media considerations for one or more target groups.

Answers will vary depending on the target group. The key is that all aspects of the campaign

CASE 2-8 HISPANIC MARKETING IN ONLINE AND MOBILE

FORMATS

Questions 3 and 4 could be the basis of a longer-term project.

1) What are the opportunities and challenges facing marketers that are targeting the lucrative

Hispanic market through online and mobile marketing?

order to be more meaningful to Hispanics. Table B shows that Hispanics are less likely to

2) Based on the information in Tables A, B, C, D, and E, develop an overall marketing

strategy for targeting the Hispanic market.

This is an interesting and useful exercise. Students should be encouraged to combine

3) Based on the information in Tables A, B, C, D, and E, develop an advertising campaign

include (i) overall positioning strategy and core theme, (ii) key advertising copy points,

(iii) visual elements, and (iv) key media outlets.

4) Based on the information in Tables, A, B, C, D, and E, develop training materials for

entry-level marketing professionals to enhance their interactions with consumers and to

enhance their selection of media outlets when communicating with consumers.