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TEACHING NOTE FOR VIDEO CASE VC-8
Carmex [A]: Leveraging Facebook for Marketing Research
Synopsis
Both Carmex® lip balms and recently-introduced skin care products are produced by
Carma Laboratories, a family-owned company that has taken pride in connecting to its
[Video 7-4: Carmex [A] Video Case (kerin.tv/cr8e/v7-4)]
Teaching Suggestions
1. Review the In-Class Activity ICA 7-1 about introducing Carmex to European Markets if
3. Ask the class several questions concerning lip balm use and the common brands:
• How many of you use lip balm? Do you use it seasonally or throughout the year? What
kind of packaging do you prefer—jar, stick, or tube?
• Among users, what brand(s) do you use?
• Have you ever gone on a lip balm home page or a brand page on Facebook?
4. Point out to the class the new metrics now used with the emergence and growth of social
media. Some examples coming from both the Carmex video case and Chapter 8 in the
textbook include:
• Likes and likers (or Facebook “fans”). • Share of voice.
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Answers to Questions
1. What are the advantages and disadvantages for the Carmex marketing team in
collecting data to narrow the flavor choices from three to two using (a) an online
survey of a cross-section of Internet households or (b) an online survey of Carmex
Facebook likers?
Answers:
a. An online survey of a cross section of Internet households.
• Advantage. The outstanding advantage is that the population from which the
• Disadvantages. That advantage is offset by some major disadvantages:
– Cost. The cost of selecting the sample of Internet households is far higher.
– Many households in the sample can’t be reached. They may have “spam
blockers” that may prevent the survey from being viewed.
– Many households receiving the survey may not respond. This is a form of a
b. An online survey of Carmex Facebook likers.
• Advantages.
– Low cost. It is very inexpensive to send out the survey question(s).
– Quick response. Results are often available within hours.
• Disadvantages. The key disadvantages relate to the danger of not reaching some
respondents of interest because they are not Carmex’s Facebook likers:
– Nonusers of Carmex lip balm. The sample misses these potential buyers.
Chapter 07 – Marketing Research: From Customer Insights to Actions
2. (a) On a Facebook brand page, what are “engagement” and “likes” really measuring?
(b) For Carmex, which is more important and why?
Answers:
a. What “engagement” and “likes” are measuring. Engagement measures liker
interaction with the Carmex page. It measures how often likers post on the Carmex
b. Which is more important for Carmex. In this scenario, engagement is the more
3. (a) What evokes consumers’ “engagement” on a brand page on Facebook? (b) What
attracts consumers to “like” a brand page on Facebook?
Answers:
a. “Engagement” on a Facebook brand page. It depends on the brand, but most
consumers look for brand news, topical information, and new content posted regularly
4. (a) What are the advantages of using a fixed-alternative poll question on Facebook?
(b) When do you think it would be better to use an open-ended question?
Answers:
a. Fixed-alternative question. A fixed-alternative poll question allows consumers to
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5. (a) If you had a limited budget and two weeks to decide which two flavors to put into
quantitative testing, would you choose a “poll only” or a “contest only” strategy?
Why? (b) If you had a sizable budget and two months to make the same decision,
which scenario would you choose? Why?
Answers:
a. Poll vs. contest: limited time and budget. The poll would be the easiest and cheapest
Epilogue
Carmex has been making lip balm since 1937. But in the last five years, it has stressed
growth and become more competitive. During this time, Carmex has relied on Bolin Marketing
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ICA 7-1: IN-CLASS ACTIVITY
Interpreting Census Data
Learning Objectives. To have students: (1) learn how Census 2010 data and the
relatively new American Community Survey are collected; (2) locate specific data in Census
Bureau reports to become familiar with them; and (3) identify the size of market segments to
solve hypothetical marketing problems.
Nature of the Activity. To have students look at 2010 Census and 2012 Current
Population data to find specific numbers that provide initial estimates of the size of potential
market segments.
Estimated Class Time and Teaching Suggestions. About 20 minutes, taught in class in
4-person teams.
Materials Needed.
• View these forms online in the classroom, or make copies for each student of the
following:
Steps to Teach this ICA.
1. OPTIONAL: Bookmark the following websites on your classroom computer:
2. Form students into 4-person teams.
3. Click on the Internet icon to play the Census 2010 promotional video: The New
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“Many of you are familiar with the 10-year census that reports statistics on U.S.
population, housing, income, and other demographic data. The U.S. Constitution
6. Census 2010 Population Change. Have students locate their PopulationChange
Handout or Website. Ask students the following questions:
• Question 1: What is the U.S. population in 2010 according to the U.S.
Census?
• Question 2: What was the percentage change in the U.S. population from
2000 to 2010?
• Question 3: Which state had the lowest growth rate from 2000 to 2010?
• Question 4: Which state had the highest growth rate from 2000 to 2010?
7. Census 2010 Sex and Age Composition. Have students locate their AgeSex Handout
or Website. Ask students the following questions:
• Question 1: Which gender had the largest population in 2010?
• Question 2: Of the age groups listed, which segment was the largest?
• Question 3: Of the age groups listed, which grew the most from 2000 to
2010? The least?
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• Question 4: Assume Herff-Jones, a publisher, is considering producing a
coloring book for pre-schoolers. What is the number of children under 5
years of age?
8. Census 2010 Race and Hispanic Population. Have students locate their RaceHispanic
Handout or Website. Ask students the following questions:
• Question 1: Which Racial or Hispanic segment is the largest? Grew the most
from 2000 to 2010?
• Question 2: Assume a Hispanic American entrepreneur is considering
developing a chain of U.S. fast-food restaurants. She assumes the initial “core
customers” will be other Hispanic Americans. What is the size of this
market?
9. Call on students to share their answers with the class. Stress that external secondary
data from sources like the U.S. Census Bureau are used to identify potential market
10. OPTIONAL: 2013 American Community Survey (ACS). Click on the Internet icon to
play the ACS promotional video; TRT = 2:44.] Conclude this activity with the
following mini-lecture on the ACS:1
“Between decennial censuses, businesses, nonprofit organizations, and local
governments cannot rely on increasingly out-of-date Census data to identify market
Marketing Lessons. Marketers need up-to-date information to use in identifying the size
Chapter 07 – Marketing Research: From Customer Insights to Actions
ICA 7-2: IN-CLASS ACTIVITY
Websites for Marketers
Learning Objective. To have students experience the wide variety of marketing
information that is available on the Internet.
Nature of the Activity. To have students visit three websites that have been discussed in
the text or are likely to be of interest to marketing students and then select one website they find
interesting and summarize the kinds of information that this website offers.
Estimated Class Time and Teaching Suggestions.
• If Internet access is available in the classroom, 10 minutes of “surfing” and discussion
Materials Needed.
• Copies for each student of the “Websites for Marketers” Handout.
Steps to Teach this ICA.
1. OPTIONAL: Bookmark the following websites on your classroom computer and
familiarize yourself with these websites in the Websites for Marketers Handout:
• AMA: www.marketingpower.com. • AAF: www.aaf.org.
2. Ask students about their experience “surfing” the Internet. Solicit examples of those
websites that interest them.
3. Pass out the Websites for Marketers Handout.
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4. Show Websites for Marketers.
5. If the classroom has Internet access, select 2 to 3 websites to visit, such as the
6. Discuss the marketing implications of the websites.
Marketing Lessons. The websites listed on Websites for Marketers Handout
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Websites for Marketers Handout
[NOTE: “http://” is assumed before “www”]
1.
The American Marketing
Association
2.
The American Advertising
Federation
3.
The Wall Street Journal
(news/video)
4.
The Drudge Report
(political news)
5.
Bloomberg Businessweek
(business news/video)
6.
Fox Business
(business news/video)
7.
CNBC
(business news/video)
8.
YouTube (company channel
ads/b-roll)
9.
Google (search engine)
10
.
eBay (on-line auction)
11
.
Amazon.com (purchase
items)
12
.
USA.gov (U.S. government
portal)
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ICA 7-3: IN-CLASS ACTIVITY
Designing a Taste Test Survey for Howlin’ Coyote Chili
Learning Objectives. To have students (1) design three questions for a taste test
questionnaire of a possible new Howlin’ Coyote® chili marketed by Paradise Kitchens—the firm
described in Appendix A—and (2) compare their questions with those actually used in the taste
test.
Nature of the Activity. To help students appreciate the precision needed in developing
meaningful questions that assess consumer attitudes, opinions, and/or behaviors when designing
a survey.
Estimated Class Time and Teaching Suggestions. About 15 minutes, conducted in
Materials Needed. Copies for each student, either in hard copy or electronically, of the
following:
• “Try Your Hand at Designing a Chili Taste-Test Questionnaire” handout.
Steps to Teach this ICA.
2. Review the typical problems encountered when constructing the wording of
questions.
4. Pass out copies of the Try Your Hand at Designing a Chili Taste-Test Questionnaire
Handout.
5. Give the following background mini-lecture:
“Consumer packaged goods marketers (like Paradise Kitchens—see Appendix A)