Promotional Pricing

This Sears ad is an excellent example of promotional pricing. According to Kotler, promotional pricing occurs when "companies will temporarily price their products below the list price and sometimes even below cost to create buying excitement and urgency" (p. 277). This particular Black Friday ad illustrates special-event pricing, which is intended to attract customers during a certain time (in this instance, during the holiday season).

The sense of urgency is apparent because the ad explicitly states that the doorbusters will only be going on from 4 AM to noon on the Friday after Thanksgiving. In addition, the ad shows a variety of sales that Sears planned to have, including $9.99 pair of jeans and $79.99 diamond bracelets. These low-priced items are intended to draw customers in to purchase the items as quickly as possible, and judging from the lines outside of Sears on Black Friday this past year, the company's marketing seemed to be quite effective.

Karlyn Kurokawa, Section E

Brand Development

According to Kotler, “a company has four choices when it comes to developing brands.” They are line extensions, brand extensions, multibrands, or new brands.

Kenichi’s Hershey’s posting reminded me of the funny image I recently saw online. This image illustrates a brand extension of Hershey’s. A brand extension extends a current brand product in a new category. (Kotler, 250)

The new line will include a USB drive that will range from 1GB to 4GB and features a plain Hershey bar (as shown above) or Mr. Goodbar, Krackel, Twizzlers or Bubble Yum. The USB drives will range in price from $14.99 to $29.99. You’ll also be able to pick up 2GB and 4GB drives in the shape of Hershey Kisses for $19.99 to $29.99. Besides USB drives, they will offer digital cameras featuring a Jolly Rancher design, Hershey’s miniatures and Bubble Yum for $24.99. More information is available on Gearlog (http://www.gearlog.com/2009/02/pour_some_sugar_on_me_jazwares.php)

On one hand the new product will be instantly recognized due to widely known Hershey’s brand name. On the other hand, as Kotler say, the brand may be not appropriate to the new product. Seriously, wouldn’t you expect this USB to melt?

Elizaveta Koval
Section G

Specialty Products, co-branding

Specialty products are consumer products and services with unique characteristics or brand identification for which a significant group of buyers is willing to make a special purchase effort. Buyers normally do not compare specialty products and they have low price sensitivity (Kotler p.201). These products are valued for the prestige of the name and they have high brand recognition.

Here is an extremely high end phone made by Nokia. This a new high end line of phones. The phone prices range from $5000 to $32000. It is hard to find because it is only sold in several states of the US. People that purchase this phone obviously do not care much about the price, their man concern must be image.
http://vertu5.com/vertu-news/the-most-luxurious-mobile-phone-vertu/

Co-branding occurs when two established brand names of different companies are used on the same product (Kotler p.216). This Vertu phone is a great example of co-branding.


Nokia has came out with a Ferrari inspired line of Vertu phones. This shows a collaborative work between Nokia and Ferrari. These two companies operate in different categories but by creating this phone Ferrari is able to reach out to cell phone market and Nokia speaks to car fanatics. These two brand names are clearly helping each other through this collaboration. Vertu positioning as a luxuries phone fits perfectly with Ferrari's market image.

Ekaterina Ogay
Section G

Co-Branding

Co-branding is the practice of using the established brand names of two different companies on the same product. (Definition found in Kotler's book)

An example of co-branding is Betty Crocker’s brownie mix with Hershey Chocolate. This is a prime example because both brands are joining together, by adding their respective company ingredients, to make one product. (Using Betty Crocker’s brownie mix with Hershey Chocolate) The Betty Crocker brand is a part of the General Mills Company while Hershey is its own company.

Betty Crocker’s Brownie Mix with Hershey Chocolate website link:
http://www.bettycrocker.com/products/brownies-and-dessert-bars/Betty-Crocker-Brownies-Products.htm

Kenichi Sato, Section G

Social Marketing

This commercial, which aired when Proposition 8 was to be voted on in California, is an example of social marketing. According to Kotler, social marketing is defined as "the use of commercial marketing concepts and tools in programs designed to influence individuals' behaviors to improve their well-being and that of society" (203). Thus, instead of using marketing to advertise or inform others of products or services, social marketing seeks to impact people's behaviors in order to benefit society.

The commercial is an example of social marketing because it is a campaign for equality of all human beings, regardless of sexual orientation. The women in this commercial calls for voters in California to vote "no" against Proposition 8 because they believe in "dignity, kindness, and compassion," but more importantly, "equality for all." As a result, they are urging other voters to vote against Proposition 8 in order to make sure that everyone's rights will be protected. Ultimately, they believe that voting no will be beneficial to society because it will ensure equality.


Karlyn Kurokawa, Section E

Diversification

Diversification is a strategy for company growth through starting up or acquiring businesses outside the company's current products and markets (p.44 Kotler) This means that a company is developing new markets and new products.

I first found about McCafe in Japan and was amazed by its different style from traditional McDonald store. I found more information online at McCafe's website. http://www.mccafecoffee.com/

McDonald's starting of McCafe is an excellent example of diversification. By starting McCafe, McDonald's is offering new products that were not available in traditional McDonald's stores. McCafe specializes in serving cafes, which attracts customers that usually don't come to McDonald's to eat fastfood. McCafe is also not only a product development. McCafe has its own section of the store and clearly distinguishes itself from the traditional McDonald store. The store has modern, yet relaxing mood. This is important to attract new market segments, probably customers that go to cafe not to satisfy hunger, but possibly to take a sip of coffee and chat in a relaxing environment. Thus, McDonald's McCafe serves as an example performing diversification by developing both new products and new markets.

Shogo Okuda
Section G

Packaging

Packaging involves designing and producing the container or wrapper for a product (pg. 206). In other words, it is the outer part around the product that it meant to secure and hold the product, but it can also help sell and market a item. I believe that packaging should not only be for the company, but also be useful (or not an annoyance) to the consumer.

I found this example while reading some news articles on Yahoo.com. To get the video I went to youtube.com. The example is how Heinz has redesigned its ketchup containers (shown on the video below).

The new container is a perfect example of how packaging works and what packaging is. It is a continuing process of redesigning for a company that helps to sell and market the product. But, at the same time packaging should become more useful to the consumer. As the video shows, the packaging will keep the ketchup safe and will hold the ketchup effectively. At the same time, Heinz keeps their traditional labeling. I think this is also a great example of how packaging can evolve and become more useful to the consumer. Great idea Heinz!



Trevor Power , Section E