19_kotler_app.qxd 1/18/07 4:51 PM Page A18 Appendix 2 CBC Video Cases
Each video case corresponds to specific chapters. See the correlation table below fordetails.
Video Case 1: Chapters 1, 2, 3Video Case 2: Chapters 4, 6, 8Video Case 3: Chapters 4, 5, 16Video Case 4: Chapters 8, 9Video Case 5: Chapters 4, 11, 13Video Case 6: Chapters 10, 16Video Case 7: Chapter 14, 15 CBC Video Case 1
Trouble in Toyland
According to the Canadian Toy Association, the toy and margins. On the other hand, you have small inde- industry in Canada represents $1.4 billion in sales.
pendent chains, such as Ottawa's Mrs. Tiggy Winkles, Despite the size of the marketplace, many companies which operates only five outlets and features tradi- are struggling as the market becomes increasingly tional and retro toys.
unpredictable. Sales of traditional toys fell by almost 3 percent in 2003, and by 5 percent in 2004 according to the NPD Group Inc. Technology is playing a bigger Identify the key trends that are affecting the toy and bigger role in the industry. Children are increas- industry and demonstrate why a player in the toy ingly sophisticated, and every day children seem to be industry should be aware of these trends.
growing older faster! Because of "age compression," How can relationship marketing and market orien- toys are being put aside sooner in favour of electronic tation help small toy retailers such as Mrs. Tiggy gadgets, such as cellphones, computer games, and Winkles survive? What value can it create for its even electronic organizers. Though some companies are struggling, others, such as Spin Master Ltd., seem to be on the road to success. Its vision is to be a com- Sources: Peggy Cunningham wrote this case based on the CBC pany that understands kids in general versus one that Marketplace video "Trouble in Toyland" and the following articles: manufacturers toys. Retailers, like manufacturers, are "Hot Toys For The Holidays?" Canadian Toy Association press release, www.cdntoyassn.com/mnews.htm; Paul-Mark Rendon, "Campaign under pressure to keep pace with competition and ushers back Irwin Toys," Marketing Magazine, January 12, 2004; "Toys changing tastes. On one hand, you find the giant dis- "R" Us acquired by investment group," Marketing Daily, Friday, March count retailers, such as Wal-Mart (which is now the 18, 2005; "Toy companies expand into home décor," Marketing Daily, number-one toy retailer), putting pressure on prices Tuesday, February 15, 2005, www.marketingmag.ca.
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CBC Video Case 2
Buying Into Sexy
Canadian children 8 to 14 years of age have lots of dis- To speak to this market, celebrities are often hired.
cretionary money. They spend $1.7 billion of their own Take a recent ad campaign for Candies shoes. It fea- cash on a huge range of products. Marketers are well tured pop star Ashlee Simpson, who some consider a aware of this group's buying power and it's not sur- relatively "good girl" with a wholesome image. The prising that they are targeting this segment.
Candies ad shows a scantily clad Simpson wearing a However, what children in this age group are buy- pair of Candies high heels. A teddy bear is tucked in the ing and what is being marketed to them is causing corner. Says Candies' CEO, Neil Cole, the ad shows "a some concern. Video games featuring scantily clad young girl who's growing up." women and music videos with overt sexual imagery The trend may be the result of what's called "age are aimed at both sexes, while "sexy" clothing and compression." Children are adopting the behaviours accessories are aimed particularly at very young girls.
and tastes traditionally associated with older people.
Take the case of "sex bracelets," for example. They're Instead of dolls and building blocks, children today are cheap, colourful jelly bracelets that carry sexual con- demanding electronic gadgets like cell phones and notations. As one tween noted, "Pink means ‘kiss,' and iPods. Nonetheless, critics are asking where we should white means "lap dance." Some wear them because draw the line and question if the trend towards "buy- they are "fun," and tweens may not fully understand ing into sexy" is the result of exploiting a vulnerable the sexual connotations.
Some analysts believe the trend towards mimick- ing and valuing sexual imagery starts at a very young age, as young as four years of age, with the marketing What factors in the marketing environment (tech- of products like the "Bratz" dolls. These toys feature nical, demographic, lifestyle, social and cultural) skimpy clothing and heavy make-up. Marketed along have contributed to the attitudes many tween girls with the dolls is the Bratz "Superstyling Funktivity have about buying and wearing provocative cloth- Book," which is aimed at six-year-olds and covers top- ing? (Hint: think about what has happened to fam- ics like "luscious lip tips," "design your own sexy skirt," ilies as well as to children themselves.) and "tips on being an irresistible flirt." Visit any mall, Big questions arise about whether marketers are and you'll find entire chains devoted to young shop- responding to market demands and are just pro- pers full of racy clothing, make-up and lingerie for girls viding the services and products that this age who may not have hit puberty.
group demands, or whether they are creating the The buying and wearing of such products is some- demand with inappropriate imagery and then times causing a lot of dissention between children and feeding it with products and services. Discuss how their parents. While kids feel a lot of pressure to be like a marketer's ethical responsibility would change their friends, some parents don't want their children under these two different points of view. dressing in a sexy style or using products like video games traditionally aimed at older consumers. In other Sources: "Buying into Sexy: The sexing up of tweens," CBC cases, parents are too busy to pay much attention to Marketplace, Broadcast: January 9, 2005; "Sex sells: Marketing and what their kids are doing, watching or accessing over 'age compression'," CBC Marketplace, Broadcast: January 9, 2005.
the Internet.
19_kotler_app.qxd 1/18/07 4:51 PM Page A20 Appendix 2 CBC Video Cases
CBC Video Case 3
Mining Your Business
At the heart of any good marketing practice are the When it comes to the use of technology to create concepts of market segmentation, target marketing, vast databases and target customers, marketers must and positioning. Without good information about con- ask themselves not just what they can do using tech- sumers' needs, attitudes, and buying behaviour, this nology to gather information and compile integrated entire process breaks down. However, many con- databases, but also what they should do to truly create sumers believe that the gathering of information for value and respect customers rights.
marketing purposes violates their rights and their pri- vacy. Accurate, timely information about consumers is especially important for the direct marketing industry.
Registered education savings plans are big busi- It comprises organizations that send material directed ness, and Canadians have plunked $12.8 billion personally to you, the consumer. It may be delivered into these plans to help finance the mounting cost through the mail, over the Internet, by telephone, or by of postsecondary education for their children.
email. Direct marketers include companies as varied as Growth in these plans has exploded. In Ontario Microsoft Canada, The Shopping Channel, Reader's alone, 14 firms are registered as scholarship plan Digest, and Allianz (sellers of registered education dealers. The Ontario Securities Commission (OSC) plans) as well as the many charities operating in recently uncovered numerous problems involving sales practices within the industry. The three Many in the direct marketing industry are aware largest players in the sector are Allianz Education of the challenges associated with consumer resent- Funds Inc., CST Consultants Inc., and USC ment and the need to respect privacy. They have strict Education Savings Plans Inc. They account for internal policies about how information will be gath- nearly $5 billion in assets and more than 600 000 ered, protected, and used. Other firms, unfortunately, plans. If the industry cannot improve its practices, are abusing the goodwill of consumers and may be regulators will soon step in. If you were a senior damaging the image of an entire industry in the marketing and sales manager at Allianz, what poli- process. Of particular concern are companies, such as cies would you put in place to improve the data Growing Families, that gather information and then gathering and sales practices of your firm to sell it to other firms. Growing Families is a firm that ensure consumer satisfaction and privacy goes to maternity wards to take pictures of newborns.
New parents fill out forms to receive their pictures and provide a lot of personal information in the processes.
Sources: Peggy Cunningham wrote this case based on the CBC Growing Families sells this information to their part- Marketplace video "Mining Your Business" and the following articles:Rebecca Harris, "Hitting the Target," Marketing Magazine, July 4, ner firms—companies such as Allianz and Procter & 2005, www.marketingmag.ca; Karen Howlett And Paul Waldie, "The Gamble, who have products of relevance to new Ontario Securities Commission cracks down on RESP sector," Globe and Mail, July 16, 2004, http://www.vaninvestor.com/You/RESP/OSC_cracksdown_resp.htm.
19_kotler_app.qxd 1/18/07 4:52 PM Page A21 Appendix 2 CBC Video Cases
CBC Video Case 4
The Rebirth of a Brand: Avery Wines
The American Marketing Association defines a brand savings into the development of the vineyard and were as "a name, term, sign, symbol, or design, or a combi- carrying almost a million dollars in debt. Cash flow nation of them, intended to identify the goods or serv- was, therefore, a big problem for them. The good news ices of one seller or group of sellers and to differentiate was that all of the wines were made exclusively from them from those of competitors." Avery Wines organically grown grapes.
engaged Bernie Hadley-Beauregard, owner of Bernie had a very short timeline in which to rein- Brandever Strategy Inc., to rebrand and reposition vent the brand. If the project could not be completed their winery. When Brandever undertakes a project, it before the important Christmas selling season, the takes a broader definition of the branding and com- winery would probably go into bankruptcy. The new munication task than the above definition suggests.
brand name, Lotusland, was developed after a lot of According to their website (www.brandever.com): thought and negotiation with the winery owners.
Our core belief is that everything matters.
Competitive advantage and marketing impact are increased significantly once a company adopts a Provide clear reasons why Avery wines needed a holistic, interwoven approach to its communica- new brand. In formulating your answer, be sure to tion [and branding] endeavours. It all begins with think about the past experiences that consumers a thorough understanding of all touch points that may have had with this wine.
a prospect, stakeholder or customer has with your Why do many firms, like Avery Wines, neglect company: every phone call, email, printed mate- rial, package, and web communication. Each is a vital marketing event; an opportunity to define Some brand researchers suggest that a brand is and differentiate and advance your firm, your the totality of what is experienced by customers, offerings. In essence, Brandever advocates that and that brands do not have meanings until the marketing should not be interpreted as a depart- product has a history and customers have experi- ment, but rather a mindset. A shared frame of ref- enced the brand over time. What meanings does erence adopted throughout an organization. A the new Lotusland brand suggest? In formulating powerful force.
your answer, think about how the new brand has appropriated cultural icons as part of the branding Hadley-Beauregard had a big job ahead of him effort and why getting adoption of the product in when he took on the Avery project, a family-owned fine restaurants was one of the keys to success of winery located just west of Abbotsford in B.C.'s Fraser the project.
Valley. Avery Winery and their promise of "A'Very Fine Wine" was a play on words based on the surnames of Sources: Peggy Cunningham wrote this case based on the CBC the owners, David and Liesbeth (Liz) Avery. The winery Marketplace program "Avery Wines—The Brand Man," aired February was born in 1998. The owners had invested their life 8, 2004; and the following websites; http://winesofcanada.com/bc_fraser.html and www.brandever.com 19_kotler_app.qxd 1/18/07 4:52 PM Page A22 Appendix 2 CBC Video Cases
CBC Video Case 5
The Bait in Rebates
Walk into many retail stores or thumb through the action. Sony and Staples, for example, have moved advertisements in your local newspaper and it seems their rebate systems to the Internet so that the process as if almost any product you are thinking of buying of claiming the rebate can be streamlined. In 2005, comes with the offer of a rebate. Many retailers and Best Buy and Future Shop announced that they will no manufacturers love them because they tend to boost longer stock products that are tied to mail-in rebates.
short-term sales. Rebates are featured on products as varied as automobiles, computers, stereos, and pleas- ure boat navigation systems. However, despite the fact What types of products are most likely to use that the "carrot" of a price reduction is dangled in front rebates? Are rebates an effective way of adding of consumers to get them to purchase today, many value to a product or a service? rebates are never claimed. In fact, redemption rates Marketers recognize that consumers often actively vary from a startling 1 to 50 percent even when a $100 process price information, interpreting prices in rebate is offered. Today's consumers are time pressed terms of their knowledge from prior purchasing and may not want the hassle of sending in the bar code, experience, formal communications (advertising, their original receipt, and the required photocopies.
sales calls, and brochures), informal communica- Retailers are heavy users of mail-in rebates. In an tions (friends, colleagues, or family members), and era of growing price competition, rebates allow retail- point-of-purchase or online resources. Marketers ers to advertise significantly lower prices than is pos- know that purchase decisions are based on how sible with such tactics as everyday low pricing. Such consumers perceive prices. Explain how you think pricing gets consumers into the store and provides the rebates affect consumers' price perceptions.
retailer's sales staff with the opportunity to convince the buyer to make the purchase on the spot.
Do you think the use of rebates is ethical and fair Manufacturers, such as Sony, also use their own rebate to all stakeholders (customers, retailers, manufac- programs. Manufacturers often cooperate with retail- turers, competitors, the general public)? Provide ers and help pay for the costs of rebate programs clear criteria for your opinion, and clearly state the either by providing lower large-order minimums or reasons why you have drawn your conclusion.
through cooperative programs. Some people wonder Sources: Peggy Cunningham wrote this case based on the CBC why they just can't get their rebate at the checkout Marketplace program "The Bate in Rebates," January 2, 2005; and counter. Manufacturers cling to the mail-in rebate sys- the following articles: Wayne Mouland, "Rebates rule!" Marketing tem to obtain demographic information pertaining to Magazine, October 18, 2004, www.marketingmag.ca; David Menzies, the purchasers of their products and don't want to give "Mail-in rebates RIP," Marketing Magazine, September 12, 2005,www.marketingmag.ca.
control of this information to their retailers.
Faced with a growing mountain of complaints, some retailers and manufacturers have started to take 19_kotler_app.qxd 1/18/07 4:52 PM Page A23 Appendix 2 CBC Video Cases
CBC Video Case 6
Earth Energy Systems
With energy costs for cooling and heating with conven- Geothermal systems also have commercial appli- tional fuels going through the roof, the time may finally cations. They can be used to heat offices, stores, hotels, be right for geothermal heating. While the technology schools, hospitals, and even recreational facilities. For has been available for 20 years, consumers have been example, the Glenboro Curling Club in southwestern skeptical about the viability of such a system.
Manitoba recently installed a system which not only Geothermal systems use a series of pipes buried keeps the club's dressing rooms warm, but also keeps 15 metres underground. They transfer naturally occur- the ice sheets cold.
ring heat (the heat the land absorbs from the sun) from Manitoba has taken the lead provincially in terms the ground below the frost line into a building during of having the highest adoption rates of geothermal winter, converting it into warm air and distributing it systems. However, adoption rates for these alternative through ducts. In summer, the system is reversed to energy systems is still quite low compared to countries transfer heat out of the building, where it uses the like Iceland, for example, where geothermal heating cooler ground as a heat sink. The efficiency of the sys- accounts for 50 percent of the country's heat develop- tem is one of their major advantages. The heat obtained from the ground (via the condenser) is much greater than the electrical energy that is required to drive the various components of the system. Who do you think would be the most likely early In an era where green house gases and global adopters of geothermal heating systems in your warming are becoming major concerns, geothermal heat pump systems present an attractive alternative Describe a marketing program you could use to energy source. They are one of the most environmen- target this group and build awareness about this tally friendly heating systems available. Moreover, type of system.
once they are installed, these systems offer homeown- ers the opportunity to significantly reduce their heating If you were a salesperson representing a company costs. While geothermal systems still use electricity to selling these systems, describe the tactics you run the components, they use up to 75 percent less would use to address the concerns a potential electricity than conventional heating or cooling sys- consumer might have about this type of system.
tems. Geothermal systems can also reduce green- Sources: CBC Venture, "Energy: Sawdust to Bio-oil," aired January 23, house gas emissions by 66 percent or more, compared 2005; "Curling club keeps cool with new geothermal heating system," with conventional heating and cooling systems that CBC News, October 27, 2006; "Geothermal Power Latest News," use fossil fuels. Finally, the systems are misers when it November 9, 2006, http://www.alternative-energy-news.info/ comes to maintenance costs.
geothermal-power/; "Geothermal Energy," Manitoba Energy, Science& Technology, Energy Development Initiative, 2003, www.gov.mb.ca/ So what's the catch, you might ask. The systems est/energy/initiatives/geothermal.html; Earth Energy Society Of are expensive to install and currently require a lot of Canada http://www.earthenergy.ca/tech.html (all websites accessed land for installation. For example, a system for a rela- November 9, 2006).
tively small house costs approximately $25 000. 19_kotler_app.qxd 1/18/07 4:52 PM Page A24 Appendix 2 CBC Video Cases
CBC Video Case 7
Advertising in Crisis?
In 2004, Yasmin Glanville, president of CTR Inc., a process largely commercial free. According to Toronto-based marketing consulting group, made a Forrester Research, this may mean that exposure to bold and controversial statement: "It's no secret that advertising may be reduced by more than 50 percent.
the advertising industry, as we knew it, is extinct." Despite all the debate about this industry being in However, Glanville added, "the advertising industry is flux, advertising is indeed very much alive. There is no not dead. It is evolving and diverging into solutions rel- doubt that its shape and roads to success are evolving.
evant to the needs of our times." Combining business results earned through divergent Rick Shaver, a VP at The Hive Strategic Marketing and innovative ideas will help to win the minds and in Toronto, believes that though the "rules of the game hearts of increasingly empowered consumers.
have changed forever … a new era of infinite possibil- ities is upon us." New media options have not only splintered mass markets into a vast assortment of How will marketing communications change in communities of common interest, but they have also this era of empowered consumers? created niche markets that are accessible as never Pick one of your favourite brands. State the target before if marketers understand the new rules of con- market for the brand. Design an innovative inte- sumer engagement. "Push has been replaced by per- grated communications program for your brand.
mission, power is shifting to the buyer, and the Explain why you selected certain types of media advertising monologue is giving way to consumer dia- vehicles for your campaign.
logue," according to Shaver.
Advances in technology and changes in consumer Sources: This case was written by Peggy Cunningham based on the behaviour are shaping a new landscape. For example, Venture show "Advertising in Crisis," aired October 15, 2004, and the instead of TV, video games are becoming a main- following articles: Yasmin Glanville, "Creativity versus performance,"Marketing Magazine, November 22, 2004, www.marketingmag.ca; stream media for young adult and teenage males. Bill Rick Shaver, "Custom media: New rules for a new game," Strategy, Gates, chair of Microsoft, forecast that all traditional May 31, 2004, p. 11; Michael Kanellos, "Newsmaker: Gates taking a mass media will be delivered via the Internet and that seat in your den," CNET News.com, January 5, 2005; Jennifer "The future of advertising is the Internet." Furthermore, Whitehead, "Gates says future of advertising lies on the Internet,Brand Republic, October 27, 2005; Adam Pasick, "Sorrell sees media the Internet, along with the rapid adoption of digital industry ‘panic' over Internet," Reuters Canada, October 27, 2005, video recording devices, will enable consumers to record many television programs by pressing a single button and downloading the program to their hard drive. The big concern is that they can undertake this

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