Shutterfly

In the last five years Shutterfly has been “helping people share life’s joy” through a combination of acquisitions, innovations and integrated marketing techniques. Although printing pictures has been decreasing during the last decade, Shutterfly has increased its sales by 20% every quarter since 2009 and now holds a 50% market share in the photo products and services category.

Established in 1999, Shutterfly has survived several economic downturns and technological innovations. This was accomplished due to their willingness to take risks. The company acquired both Kodak and Fujifilm’s web photo-sharing businesses which brought with it 75 million member accounts. In addition to these acquisitions Shutterfly has expanded their brands from one to four—Shutterfly, Tiny Prints, Wedding Paper Divas and Treats. Nevertheless, Shutterfly CEO Jeffery Housenbold foresaw threats from new technologies like smart phones and tablets. In the last three years there have been more photos taken than all the time before and most of them by mobile devices. For that reason Shutterfly launched a new mobile app in December of this last year for people to not only order prints but also share photos; thus, making them competitive with the likes of Insagram and Flickr. Finally, in addition to Shutterfly’s acquisitions and innovations, their success stems from sensational marketing techniques. Between their eye-catching orange packaging, daily promotional emails and quantity discounts, Shutterfly has poisoned themselves for long term success.

Here is a link to a Shutterfly Commercial

http://youtu.be/6ea7NvYg7BM

Here is a video of an interview from CNN with CEO Jeffery Housenbold

Marketing Interest in Pinterest

I am sure you all have heard of the picture sharing site called Pinterest! This site causes women (and some men) to look at their computer/mobile devices all day. I can admit I am one of these guilty addicts. Pinterest is a place where you can literally bookmark and categorize anything that you are interested in on your own profile. You can also see "pins" from everyone else that has a Pinterest account, including your friends you are following. For example, one of my friends "pinned" a picture of a jacket from Guess that I thought was fabulous, so I decided to "repin" the picture of the jacket to my profile onto one of my categorized "boards" about clothing. This is honestly a site to get inspirations and get shopping! This site has become so extremely addictive to its target market; (of mostly women) businesses from all over are using Pinterest as a marketplace! Not only is Pinterest a great platform for your own individual use, it is now being used as a source of marketing for many brands. For instance, Nordstrom has their own team that basically makes boards to showcase their products during the different seasons. Some companies like Urban Outfitters have their own bridal collection, so you can get inspired and plan your entire wedding on Pinterest! In today's technological world, it is easy to see how big of an impact social networking media can have on retail and advertising environments...Keep Pinning everyone!!!
Here is a video about Pinterest:

Pirvate Label vs. Brand Name Products

We have all shopped at Wal-Mart, Smiths, or some other local grocer and seen private label brands such as Westerner Family or Wal-Mart’s Super Value brand right next to popular brand name products.  Are these products of less quality? They are, after all, cheaper than the brand name cheese, milk, canned fruit or whatever it may be right next to it. 
Private Label brands, also known as store brands or retailer brands, have come a long way in the last decade. Not only the quality of product but also the packaging of the product has improved. You’ll see private label brands with very similar packaging to its branded counterpart. Turn these packages over and you will see the same similarities on the ingredients label. In some cases these similarities are because the same manufacturer of the branded product produces the private label product. My fiancé works at Darigold, a large Co-Op that produces a variety of brand name dairy products. However, “Darigold” milk, creamer, butter, cheese, yogurt and sour cream are not the only brands they manufacture. Darigold has teamed up with large private label brands to produce their dairy products as well. These store brands include: Wal-Mart’s Super Value, Safeway’s Lucerne, Western Family and Vans IGA. The dairy product is of no less quality compared to Darigold’s brand name; in fact, they use the exact same product and just put the store brand label on the packaging. 
Buying private label is not only advantageous to us as consumes but also profitable to the retailers. A study by the Private Label Manufacturers Association found consumers save 35% when buying private label. Likewise, retailers selling their private label brand gather a 35% profit margin compared to just 25% on brand name items. Nevertheless, given the quality of private label product, we are all guilty of buying the more expensive alternative. This is most like due to brand loyalty, product image, or product packaging. For instance, you will not find cutting edge, innovative packaging on private label brands such as Hiez Dip & Squeeze ketchup package. In any case, private label products are of high quality and a good consumer choice when you go out on your next grocery run. 

The Conscientious Approach and CSR

In a previous post, I talked about the significance of social responsibility, and now I will dig a little deeper into the the increasing pressure on organizations to maintain a certain element of responsibility in their practices.  These external pressures relate to human rights, environmental preservation, green house gas emissions, product stewardship, employee and public safety, etc.  The instantaneous medium of the Internet exacerbates this issue as companies are now exposed to an unprecedented element of transparency.  Acknowledgement of the voice and demands of the customer as well as an organization’s performance is much more important today. A good approach for a business to be socially responsible is the conscientious view because if a company gives back to the community, usually, the community will support their business. Then again, some less profitable businesses may have to practice a minimalist approach if they are not financially capable to practice the conscientious approach.

The expectations for organizations have increased dramatically, which is transforming social responsibility programs from a nice-to-have marketing approach to a fundamental expectation of customers. For example, a recent IBM study indicated that up to 60% of consumers take into account social responsibility when making purchasing decisions. Companies that believe that they have a responsibility to help society beyond just paying taxes and obeying the law can make large profits from the community. For example, Whole Foods practices the conscientious approach and they are the most profitable large grocery chain in the United States. Social responsibility programs, however, can be resource intensive, resulting in additional operating costs to the business. How companies benefit from the investment in social responsibility varies on the type of business, the targeted consumer, and the emphasis they place on their program.

The conscientious approach is when business leaders believe that they have goals outside of only making a profit, and they support this view by philanthropy and strategic CSR. Most organizations have some element of social responsibility, but extent varies from organization to organization. The amount of discretionary effort a company demonstrates beyond mere compliance is normally a balance between economic, social, and environmental factors. 

The conscientious approach can markedly improve the public’s image on a company, the company’s profits, and the company’s economic benefits. This approach does not have to negotiate returns or profits for investors. Other organizations however, may take social responsibility to the extreme which may not be in the best interest of shareholder return.  The products and services associated with a strong focus on social responsibility are many times derived at a premium cost, which may not always be passed along to the consumer. For example, consumers probably wouldn’t be willing to pay a premium price for a cup of Starbucks coffee during strained economic conditions.

The combination of public expectations, interest group activity and instantaneous global exposure in media, such as the Internet, makes it almost impossible for an organization to avoid having a social responsibility program.  The extent to which a business exceeds minimum expectations should be based on the return expected from the investment.  For example, if the targeted consumer group typically has high expectations for social responsibility, such as with organic foods, then the organization is best served by meeting these expectations and leveraging their social responsibility program in the market place.  If expectations for a robust social responsibility program are not driven by the consumer, then an organization should set their target at or just above minimum expectations. In short, organizations should stride to practice the conscientious approach if they are financially capable because this approach is really beneficial to society. On the other hand, if a company is not able to follow the conscientious ways, then they should try to strike a balance between economic, social, and environmental factors so at the end of the day, the business grows and shareholder return is sustainable over time. 

Here is a video of John Mackey, the CEO of Whole Foods, talking about their conscious approach!

Pier 1 Imports

During holiday season the amount of marketing done through newsprint, TV, and radio increases dramatically. From Thanksgiving through Christmas the average consumer is inundated with advertising.  One of the holiday advertisements that captured my attention last holiday season was the Pier 1 Imports commercial. In their 2012 Christmas commercial their home furnishings come to life and literally speak to the customers in the store. The reason I find this particularly creative is because they are building on the figurative expression “speaking to you” and making it literal. The term speaking to you is often used in the art world, meaning a person really likes or becomes connected to a work of art then the piece of art “speaks to them.” In my opinion, I find Pier 1's ability to use figurative terminology in a literal translation to be creative and effective. Pier 1 is banking on the concept that people like to feel connected to their home furnishing purchases. In the particular commercial I viewed, the home décor came to life and struck up conversation with a customer seducing them to bring them home. As a consumer, I consider Pier One’s advertising to be top notch and appealing and it always makes me want to go into their store and buy some decor. The company typically promotes a warm, comfortable, and inviting shopping environment in their advertising. Now that they are supplementing that approach, home furnishings and furniture that have personal conversations with customers only makes Pier 1’s television advertising that much more influential.

S.U.C.C.E.S.S.

In Gladwell’s bestselling book The Tipping Point, he suggests that in order for a change of epidemic proportion to occur, the message underpinning the movement needs to be “sticky.”  By sticky, Gladwell implies that the idea is either so appealing, motivating, or memorable that it will influence a person’s behavior.  The stickiness factor says that messages must have a certain character which causes them to remain active in people’s minds.  When an idea, concept, product, etc., is considered to be sticky to a significant population of people, epidemics happen.  This is a key aspect of successful marketing tactics today.

Authors Chip and Dan Heath extended Gladwell’s concept in their book Made to Stick.  They basically broke the stickiness concept down into fundamental components in the acronym Success (Simplicity, Unexpected, Concreteness, Credibility, Emotion, and Stories).  Their message is in order for something to “stick” it should meet as many of the following criteria as possible.

First, the idea or concept needs to be simple.  Complex ideas or concepts are too difficult to remember for most individuals.  The simpler it is, the easier it is for people to recall and recite.  Next ideas often stick if they have an element of surprise or in other words are unexpected.  Concepts consistent with people’s expectations don’t always get your attention.  Ideas need to be concrete.  That is, the more obtuse or vague an idea is, the more difficult it is to relate to and remember.  A concrete concept is also more credible in the minds of people which are therefore more believable and more attractive to our memory processes.  Ideas that appeal to a person’s emotions are also more likely to be memorable.  Anytime emotion can accompany logic, the chances of recognition and remembering are significantly increased.  Lastly, many ideas are best conveyed through messaging or morals such as in stories.  Often concepts are more understandable when supported by analogies that people can relate to their personal experience, values or mythologies.

A good example I can offer is the advertisements for supporting third world relief efforts known as financially adopting a child.  These advertisements meet most of the criteria suggested in Chip and Dan Heath’s Made to Stick.  Clearly the images of starving children appeal to a person’s emotions.  The program is simple but unexpected in that just a few dollars a day can save a child’s life.  The program is deemed concrete and credible by showing how the money you donate goes directly to the relief efforts of your “adopted” child and not towards bureaucratic administrative expenses.  The story component comes into play when you receive a pamphlet in the mail with the child’s personal story, history and pictures.

This is a video of Chip and Dan Heath's book Made to Stick.

New MSU Brand Mark

According to Pride & Ferrel's Marketing book, marketers must make decisions about products including choices about brands, brand names, brand marks, trademarks, and trade names.  After reading about branding, I started to think about Montana State University and how they have recently had to make some of these considerations due to their efforts to re-brand the Bobcat logo, or brand mark.  On April 17, 2013 Montana State University came out with the new logo for the school and for Bobcat Athletics.  Montana State now has a new bobcat head and letter M in a more modern style, which embodies the fighting spirit of the school.  The new letter M is in block style font still with some curves on the points of the M to differentiate Montana State University's M from those of Michigan State and Missouri.  The Bobcat head has a more compact and round shape, an eye that has more detail, ears that have obvious tips, and a mouth that is now white instead of all gold.  It was reported that MSU paid Torch Creative $18,000 to recreate the new letter M and Bobcat head logo. Athletic Director Peter Fields, announced that MSU will end up also having to pay over $50,000 to incorporate their new look in the football stadium and as well as other stadiums. So, why spend all this money for a few tweaks in the font of the M or to change the color and ears of the Bobcat you ask? Well, it’s all about branding and innovating products so that the brand can help the community/consumers identify specific products. In this case, Montana State is using a new brand mark so that people/consumers can determine Montana State from different schools.  This re-branding process that MSU went through was intended to represent and reflect the characteristics and dynamics of the teams at the university.  Peter Fields stated, "We see these new identity elements as an investment in the program, and they are truly unique to Montana State University and Bobcat Athletics." Fields also added that the coaches and athletes want the logo to reflect their success, while still honoring tradition.  The new logo represents action while remaining true to the original Aggie Spirit.  I am interested to see if the Bobcat community will respond the same once this football season starts to unravel.  Needless to say, this new brand mark will increase sales for Montana State due to the up sale in merchandise. Regardless if people like the new look or not, fans will want to sport the new logo due to their brand loyalty to the school. So everyone, it’s time to hop on board! Out with the Old and In with the NEW! GO BOBCATS!

What set of logos do you like better?  New or Old?

Can we really protect our privacy online?

This last week I read the article Facebook is Using You from the New York Times and it really got me wondering how and where my information is being shared. I mean who has the right to know what I am browsing about online. Something as little as typing in a word in Google search can trigger ads related to that topic to appear on my browser solely targeted towards me. The article mentioned that there are companies out there like NeBuAd that can sell your personal aggregate data to other companies to enhance their marketing efforts. Although, this is a great way for a company to reach their target markets; is this an invasion of privacy and is it ethical? According to the article many American's believe we need a "do not track law" that is similar to the "do not call law." People are concerned that their personal history online will affect their life opportunities. I can say that I too am concerned for my privacy online and whether or not my browsing history will affect my chances of getting a mortgage or a job! I think a line needs to be drawn so consumer’s privacy is protected and companies can profit off of online marketing. So, how can we obtain a mutually beneficial relationship regarding our privacy? One option may be to create a law so that the consumer must be asked if they company can have their personal information, like your e-mail address. Sometimes, when I am online shopping I will encounter offers from companies to enter my e-mail address for a discount or promotional deal that I will receive just to sign up on their mailing list. I think approaches like those offer positive ways for companies to get our personal information. Instead, we have companies like NeBuAd that digs into all of our personal details and sell them for a flat rate without any consideration of how it may affect the person. The new technological world of data is a lucrative and powerful marketplace with a variety of people and firms involved. There are a lot more people out there tracking you than you think! So, be careful! You've been warned!

Here's a video of the CEO of NeBuAd attempting to defend his company's values.

Scotch Brite wants to get it Right

So far in my Marketing class I have really learned how important it is for companies to make products that consumers want.  I never knew how much emphasis got put on the customer’s needs and desires when companies attempt to develop new products!  Then, last night I was watching the Food Network as I was cooking up some dinner and a Scotch Brite commercial came on that made me think of what I have learned thus far in my course!  Now, normally I wouldn’t decide to write about a cleaning scrubber, but this hit right on target with me!  The commercial starts out with two employees from Scotch Brite that go to a home and eavesdrop on a woman complaining about her dish scrubber. The employees then go back to their company headquarters and develop a scrubber that the woman wishes she had in the first place!  After watching the commercial I thought, “That is just what I learned in class!”  This commercial reinforces the fact that making products based on the customer is key to being successful in the marketplace.  The marketing concept revolves on customer satisfaction. Looks like Scotch Brite has the right idea! Check out the commercial below!

Rambling about Responsibility

Why should marketers care about being socially responsible? What is social responsibility in the first place?...

I have learned that social responsibility is known as an organization's obligation to maximize its positive impact and minimize its negative impact on society. It has been said that, "A good company is also a good citizen." An enlightened company understands that it is in its best interest to be socially responsible because an enhanced reputation is more likely to attract customers, investors, employees, and suppliers. Effective marketers should incorporate some level of social responsibility in their work to build relationships with these key players to be both beneficial to society and the organization itself. Doing so helps create a positive image for the company and in response people will be more inclined to become loyal customers and support them if they believe their practices are ethical. Moreover, a company that practices social responsibility can potentially receive the benefit of free marketing through media outlets and dedicated customer's word of mouth. One company that exhibits a strong sense of social responsibility in the core of their marketing strategy is TOMS Shoes. TOMS was created by Blake Mycoskie on the foundation that for every pair of shoes sold, one pair would be donated to a child in need. TOMS Shoes realized that consumers want to feel good about what they purchase, and thus directly tied buying with donating! TOMS Shoes embraces this act of social responsibility in all of their marketing efforts and in turn has donated a million shoes! This is evidence that people clearly embrace causes with beneficial results!
Below is a video about TOMS Shoes.

Online Shopping = Marketing Opportunity

Today, more and more people are turning to the Internet for their shopping necessities and desires. Therefore, it only makes sense to come up with a plan that consists of online shopping and Internet marketing! Businesses all over are taking advantage of the advancing technological world and are using marketing tactics to target to their online shoppers. A big part of being successful at marketing your products online is to develop a website that is appealing and user friendly for customers that stands above the competition. For instance, as an online shopper myself, I do a lot of my shopping at a website called Zappos.com. This website has a variety of different products with extensive reviews, is easy to navigate, has daily promotions, and offers free shipping. One aspect that differentiates this site from its competitors is that every individual product has a video with a sales representative describing and modeling the product so you can relate your experience to shopping inside a store. Due to my successful shopping experiences with Zappos.com I have become a loyal customer and resort to them for a vast majority of my online shopping. Another evolving benefit for marketers is the ability for them to reference people's recently viewed items and recent purchases online and then cater their offerings in line with the consumer's purchasing patterns. This tool makes is convenient for marketers to easily accommodate to their target market. Being able to market products online successfully can contribute to a firm's revenue and profitability. Therefore, if marketers are able to connect the use of Internet marketing and online shopping the duo will pack a powerful punch and allow businesses to succeed in our  advancing online marketplace.
Below is a link that demonstrates how Zappos.com use online videos as marketing tools for their customers.

http://www.youtube.com/watch?v=vzeUr7ZclvM

 

Apple gets an A for Advertising

Apple is one company that really gets how marketing works. I have learned that marketing does not just compose of selling and advertising. In fact, marketing is the process of creating, distributing, promoting, and pricing goods, services, and ideas to facilitate satisfying relationships with customers and develop and maintain favorable relationships with stakeholders in a dynamic environment. Apple hits right on track within all of these processes. Apple was voted the overall winner of the 2012 CMO Survey Award for Marketing Excellence and has recieved this award for five years in a row! So why is Apple always on top in the marketing world? Well, it all started thirty five years ago when Apple's investor, Mike Markkula, put together a 3-point marketing philosophy that is still in effect today and is the core for their marketing success. The three points consist of:
1. Empathy-We will truly understand the customer's needs better than any other company
2. Focus-In order to do a good job of the things we decide to do, we must eliminate all of the unimportant opportunities.
3. Impute-People DO judge a book by its cover. We may have the best product, the highest quality, the most useful software, etc.; if we present them in a slipshod manner, they will be perceived as slipshod; if we present them in a creative, professional manner, we will impute the desired qualities.
These three principles contribute to Apples's accomplishments in creating and profiting from their beautiful products, building an extremely loyal customer base, and becoming one of the world's most valuable companies. Apple specializes in innovation and simplicity and use both to their advantage to market their products. Below is a video that demonstrastes their successful marketing style. In my opinion, I think Apple would be a great company to study when coming up with effective marketing techniques!

My Marketing Maddness!

Hello there everyone! I am new to the blogging world, but am very excited to start my very first blog for my Marketing Class at MSU. Throughout this blog, I will post about things that grab my attention within the diverse world of marketing. Hope you all enjoy my nonsense!