Tag Archives: marketing mix

by | Wednesday, May 29, 2024 · 10:48 am

Evaluating Competitive Products

According to research from Harvard Business School, nearly 30,000 new products are introduced each year, and yet from that number, roughly 95% fail. Wow. That’s a lot of products trying to get consumers’ attention and gain their trust. And, that’s a lot of marketing expertise working to launch products that consumers truly want and need.

One way to make sure a product has an edge is to conduct research to compare and analyze competing products. Of course this is best done in a testing and evaluation stage, but no matter the stage, the importance of a positive review can’t be understated.

Research shows that consumers are strongly influenced by reviews – either from current users or independent testers. Positive reviews are likely to influence sales and build trust. But even negative reviews have something to offer marketers as these can identify problem areas that need to be quickly rectified.

There are many product testing reviewers out there, including work done by Consumer Reports, J.D. Power, Good Housekeeping, and Wirecutter (part of the New York Times). According to Wirecutter, they test and review thousands of products to save consumers the time and stress of shopping – whether it’s for gifts or personal use.

A valuable tool used for testing – the humble spreadsheet to measure strengths and weaknesses of products. Good gets colored green, mediocre is colored yellow, and failing attribute gets colored red.

Try it out and test a group of products. What should marketing say about it?

Group Activities and Discussion Questions:

  1. Poll students: How much do they depend on product reviews? From friends? From other sources?
  2. View Wirecutter’s website: https://www.nytimes.com/wirecutter/
  3. Here’s an example of recent evaluation for coffee pods: https://www.nytimes.com/wirecutter/reviews/best-nespresso-pods/
  4. Show videos: https://www.youtube.com/@wirecutter
  5. Divide students into teams. Have each team select a product line or service that college students might purchase. The product should be something with complexity and impact, not a commodity. (See https://www.nytimes.com/wirecutter/ for examples.)
  6. For each product line, have teams develop a list of attributes important to consumers. The list should have a minimum of five attributes or more. There should also be at least five competing products to compare.
  7. Each team should develop their own spreadsheet and testing protocol.
  8. Now, have the teams analyze the products accordingly.
  9. How should this information be communicated to consumers?

Source: Airhart, E. (7 November 2023). Wirecutter’s secret to making great picks: Obsessive spreadsheeting. New York Times; Wirecutter. (30 April 2024). The best Nespresso pods you can buy at the grocery store. New York Times.

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by | Tuesday, April 30, 2024 · 7:50 am

Let’s NOT Lose a Finger at Work Today

I don’t know what you think, but I think having all my fingers is important, and worth paying for when buying power tools. The question is how much more to pay though?

If we consider possible compensation from insurers for fingers, it ranges upwards of $15,000 depending on injury and occupation. But maybe you’re a very careful woodworker and don’t think this can happen to you. It might be wise to look at the numbers: Table saws account for about 30,000 injuries per year, and of those, amputations happen nearly 4,300 times. Whoa. That’s a lot to consider.

Now, what if there was a saw that prevented the blade from cutting fingers and hands? Well, that would be great, but there is only one company that sells such a saw – SawStop.

SawStop products use a blade that carries a small electrical signal, which when skin connects with the blade, activates the safety system. An aluminum brake springs into the blade path, which in turn stops the blade and motor instantly. In less than 5 milliseconds, the blade drops beneath the table and removes all contact risk for woodworkers. No fingers lost.

SawStop holds more than 100 patents related to its safety mechanism and its laws cost more than competing models. It is the only company that has the technology, and SawStop has not agreed to license the technology. However, the Consumer Products Safety Commission is now considering a mandate that all saws be equipped with the stop mechanism.

On average, SawStop table saws cost several hundred to $1,000 more than conventional table saws. It seems few consumers are willing to pay the premium as less than two percent of the 675,000 table saws in the U.S. are from SawStop.

What would you pay for safety?

Group Activities and Discussion Questions:

  1. Poll students: How much would they pay for a saw that would not cut them accidently?
  2. Show SawStop website: https://www.sawstop.com/
  3. YouTube channel: https://www.youtube.com/@sawstop
  4. Pricing is a complex topic. Discuss the six steps for pricing (determining objectives, estimating demand, determining cost/profit relationships, select price level, set list price, and make adjustments).
  5. Discuss the various pricing models in class: demand-oriented, cost-oriented, profit-oriented, and competition-oriented.
  6. For SawStop, divide students into groups and have each group work on the six steps.
  7. When setting the price level, assign each team a different model to use (demand-oriented, cost- oriented, etc.).
  8. Debrief the exercise. Compare the various pricing models and discuss advantages/disadvantages of each.

Source: Blatt, B. (30 March 2024). How much would you pay to make sure you never sawed off a finger? New York Times.

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by | Thursday, December 21, 2023 · 7:48 am

Using Tap Technologies to Increase Donations

During the holiday season, we often see Santa and his helpers manning the Salvation Army’s Red Kettles. Usually, people will contribute their spare change into the kettle either entering or leaving a store. But, in today’s growing cash-less society, people seldom have extra cash on hand to contribute to charity. This presents a problem for organizations such as the Salvation Army who rely on cash contributions in its annual Red Kettle program.

This year – problem solved! The Salvation Army is testing tap technology at its red kettles so that donors can give money with a simple tap of their credit card or smart phone. No dollar bills required (but still accepted!). For consumers, there is no learning curve as we are all used to tapping credit cards at retail stores and gas pumps.

This isn’t the only use of digital technology in the non-profit sector. Many other non-profits (plus the Salvation Army) promote paying using Venmo, PayPal, using QR codes and tap-pay options.

Online giving is increasingly being used and is effective with younger donors. According to a Giving USA report, 81% of millennials, 69% of Gen Xers, and 61% of baby boomers give their donations online. However, all is not good news. Due to many changes in the economy and technology post-pandemic, total giving by individuals dropped 6.4% from 2021. A cause for concern that the Salvation Army helps to solve using new technology.

The tap makes it easier to give – tap away!

 Group Activities and Discussion Questions:

  1. Poll students: What charities might they give to? How would they prefer to donate?
  2. Show the Salvation Army website: https://www.salvationarmyusa.org/usn/
  3. Navigate to the donation page.
  4. While developing the marketing for charities is different than for-profit marketing, there are still similar techniques and media channels.
  5. OPTION: Have students research how to do effective non-profiting marketing.
  6. Example: Salesforce’s guide to nonprofit marketing: https://www.salesforce.org/resources/article/nonprofit-marketing/
  7. Example: Double the Donation’s guide: https://doublethedonation.com/nonprofit-marketing/
  8. Divide students into teams. Have each team select a charity to examine.
  9. For their chosen charity, have students access the Web site and analyze how the charity solicits and accepts donations. (Ex: American Red Cross, American Cancer Society, Habitat for Humanity, etc.)
  10. Have each team develop a seasonal marketing plan for their chosen charity.

Source: Cha P. (9 November 2023). Salvation Army red kettle donations to kick off Friday. Chicago Sun Times; Smith, K. (7 November 2023). Twin Cities Salvation Army adds tap technology to red kettles to boost donations.  Minneapolis Star Tribune.

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