Discussion Questions - Week 1
Initial Blog Post - Due time: Friday at 11:00 pm
Responses – Next Tuesday at 11:00 pm
- What is the first thing that you see when walking into this supermarket.It is unclear to me exactly which supermarket this question pertains to, so I'll discuss the Hannaford location in Old Town, where I do most of my grocery shopping. When you walk into this supermarket through the main entrance, the first thing anyone sees is an aisle of discount goods leading to the deli, bakery, and produce section. I've noticed that these goods can be found for the same prices in other areas of the store (and usually aren't the least expensive version of each good). Typically, my eyes are drawn to the displays on tables in the center of the aisle, usually some sort of baked good or seasonal snack - when I was grocery shopping this afternoon, the center display was traditional Super Bowl snacks.
i
- I took
the picture on Slide 2 yesterday night when I was at Hannaford market in
South Portland. Read the article underneath the slide and explain what
market basket analysis is? Why do we buy what we buy?
Market basket analysis is the process by which it can be determined which goods are typically purchased together, and which consumers purchase these combinations. Using the example of your photo from Hannaford, goods that are typically purchased together may serve different purposes (in this case, washing dishes vs. general cleaning), but are more likely to be purchased together. This could also relate to which foods are purchased together the most often - maybe it makes more sense for a grocery store to stock peanut butter in the same aisle as bread if they are typically purchased at the same time.
3. Your
reflection on the Water:
Top Secret Masaru Emoto
video (slide 8) from a marketing perspective.
This video was different and unexpected for sure. I think the overarching message that I got out of it was that positive marketing tactics will be more effective than negative ones - rather than slamming competitors' products or services, by simply using positive messages to promote your own product or service you will gain more customers. I'm not sure how much I agree with this statement, since many advertisements certainly do use more of a "compare and contrast" method and critical consumers will be looking for the faults in all products, but it definitely seems like a solid idea. Additionally, it was interesting to see how a video about a really unusual and unexpected idea can suck the viewers in and keep your interest and attention.
This video was different and unexpected for sure. I think the overarching message that I got out of it was that positive marketing tactics will be more effective than negative ones - rather than slamming competitors' products or services, by simply using positive messages to promote your own product or service you will gain more customers. I'm not sure how much I agree with this statement, since many advertisements certainly do use more of a "compare and contrast" method and critical consumers will be looking for the faults in all products, but it definitely seems like a solid idea. Additionally, it was interesting to see how a video about a really unusual and unexpected idea can suck the viewers in and keep your interest and attention.
4. Please
post your answers to blogger.com and publish the URL on the Discussion Board
Page. Your answers should be based on the following readings although you are
welcome to cite any other articles from Google or Google Scholar. You are also
required to respond to at least two other blog posts. Please provide your
responses below their URL on the Discussion Board Page by next Tuesday at 11:00
pm.
5. Choose
a pioneer of the "Share Economy" you are familiar with. For instance,
if you choose Airbnb, then answer the following questions:
5.1. Explain
Airbnb’s marketing strategy using The Four Ps of Marketing
5.2. What
does the competition look like? Can Airbnb sustain its competitive advantage?
Why or why not?
5.3. How
does the sharing economy impact marketing?
5.4. Perform
a SWOT analysis for Airbnb. What are its biggest threats and which
opportunities should it pursue? You may attach an attachment if necessary.
5.5. What
is the best way for Airbnb to grow its business? Justify your answer.
As a pioneer of the "share economy", I've chosen Uber, my favorite ride sharing service.
5.1 Each of the four Ps of marketing certainly applies to Uber's strategy. The first P, product, is straightforward - Uber provides transportation - but why is that transportation superior to competitors' offerings? The second P, price, is definitely one of Uber's selling points - Uber's prices (at least in my experience) are typically lower than other services such as Lyft, TipWhip, or traditional taxi companies under normal circumstances. When you order an Uber, the app tells you how much you should expect to pay, and you know exactly what quality of service to expect because (P number three, place) Uber is available wherever you are - rides may be harder to come by in some locations, but Uber has become widespread in urban and suburban areas, meaning that you can depend on it regardless of your location. Finally, in terms of promotion, Much of Uber's advertising comes from encouraging customers to recruit others - free rides or discounts are often offered when you sign up or convince others to sign up, meaning that Uber customers have an incentive to advertise the company to their friends.
5.2 While Uber initially only had competition from traditional taxi companies, more and more ride sharing opportunities are beginning to pop up. Lyft and TipWhip both use similar business models, however Uber certainly holds a competitive edge above these companies. While Uber has certainly lost some business with the advent of other ride sharing companies, the service still holds a competitive edge based on its widespread use and its status as the groundbreaking ride sharing service (it really is a household name at this point), as well as the quality of service for the price, and should expect for this success to continue should the company continue in the same vein and avoid any scandal or problematic behavior that could turn away their customer base.
5.3 The sharing economy causes word-of-mouth/reputation based marketing to be much more prevalent. While Uber has much less opportunity for individuals who make money from the economy to advertise themselves, there is a rating system in place and drivers have incentive to provide quality service. With a service such as AirBnB for example, hosts must do what they can to make their listings desirable. Overall, the sharing economy really encourages a new level of marketing - not only does the company advertise so that consumers will join their website or download their app, but participants must also market themselves as drivers, passengers, hosts, or guests.
5.4 SWOT analysis for Uber
Strengths - Uber is well-known with a good reputation for providing quality service at an affordable price and offering discounts and free rides as an incentive to new customers. The company is constantly adding to their customer base because existing customers seek the benefits they can get by recruiting new customers.
Weaknesses - Uber is no longer a unique business. With more and more competition in the market, Uber must work to protect its public image, continue offering a greater value, etc. Additionally, many consumers complain about Uber's surge pricing, and how it can be used to take advantage of certain situations.
Opportunities - Uber has already taken the opportunity to expand to a food delivery service - now offering rides and deliveries, it seems that Uber's next step should be to develop a consistent customer base in more geographic areas so it can expand to new locations. Uber is available globally, however many cities are without drivers. If the company wishes to expand to new areas, there should be a focus on recruiting more drivers and creating a steady customer base in new areas.
Threats - I would consider Lyft to be the biggest threat to Uber currently - while Lyft operates on a smaller scale, global expansion is in the cards for them, and most of the time the choice on how to get somewhere by booking a vehicle does come down to either Uber or Lyft.
5.5 Uber has done a great job of taking advantage of opportunities to expand. That being said, I believe that a great step would be to create some sort of "frequent-flier" type program to encourage users to get rides from Uber more regularly, especially in areas where consumers only use the service once in a while.
5.1 Each of the four Ps of marketing certainly applies to Uber's strategy. The first P, product, is straightforward - Uber provides transportation - but why is that transportation superior to competitors' offerings? The second P, price, is definitely one of Uber's selling points - Uber's prices (at least in my experience) are typically lower than other services such as Lyft, TipWhip, or traditional taxi companies under normal circumstances. When you order an Uber, the app tells you how much you should expect to pay, and you know exactly what quality of service to expect because (P number three, place) Uber is available wherever you are - rides may be harder to come by in some locations, but Uber has become widespread in urban and suburban areas, meaning that you can depend on it regardless of your location. Finally, in terms of promotion, Much of Uber's advertising comes from encouraging customers to recruit others - free rides or discounts are often offered when you sign up or convince others to sign up, meaning that Uber customers have an incentive to advertise the company to their friends.
5.2 While Uber initially only had competition from traditional taxi companies, more and more ride sharing opportunities are beginning to pop up. Lyft and TipWhip both use similar business models, however Uber certainly holds a competitive edge above these companies. While Uber has certainly lost some business with the advent of other ride sharing companies, the service still holds a competitive edge based on its widespread use and its status as the groundbreaking ride sharing service (it really is a household name at this point), as well as the quality of service for the price, and should expect for this success to continue should the company continue in the same vein and avoid any scandal or problematic behavior that could turn away their customer base.
5.3 The sharing economy causes word-of-mouth/reputation based marketing to be much more prevalent. While Uber has much less opportunity for individuals who make money from the economy to advertise themselves, there is a rating system in place and drivers have incentive to provide quality service. With a service such as AirBnB for example, hosts must do what they can to make their listings desirable. Overall, the sharing economy really encourages a new level of marketing - not only does the company advertise so that consumers will join their website or download their app, but participants must also market themselves as drivers, passengers, hosts, or guests.
5.4 SWOT analysis for Uber
Strengths - Uber is well-known with a good reputation for providing quality service at an affordable price and offering discounts and free rides as an incentive to new customers. The company is constantly adding to their customer base because existing customers seek the benefits they can get by recruiting new customers.
Weaknesses - Uber is no longer a unique business. With more and more competition in the market, Uber must work to protect its public image, continue offering a greater value, etc. Additionally, many consumers complain about Uber's surge pricing, and how it can be used to take advantage of certain situations.
Opportunities - Uber has already taken the opportunity to expand to a food delivery service - now offering rides and deliveries, it seems that Uber's next step should be to develop a consistent customer base in more geographic areas so it can expand to new locations. Uber is available globally, however many cities are without drivers. If the company wishes to expand to new areas, there should be a focus on recruiting more drivers and creating a steady customer base in new areas.
Threats - I would consider Lyft to be the biggest threat to Uber currently - while Lyft operates on a smaller scale, global expansion is in the cards for them, and most of the time the choice on how to get somewhere by booking a vehicle does come down to either Uber or Lyft.
5.5 Uber has done a great job of taking advantage of opportunities to expand. That being said, I believe that a great step would be to create some sort of "frequent-flier" type program to encourage users to get rides from Uber more regularly, especially in areas where consumers only use the service once in a while.
Readings required
Chapter 1 (textbook & slides) & How The Sharing
Economy Will Impact Marketing (
https://techcrunch.com/2015/01/17/how-the-sharing-economy-will-impact-marketing/)
;
