27 Case Study Examples Every Marketer Should See
Updated: September 05, 2024
Published: August 13, 2018
Putting together a compelling case study is one of the most powerful strategies for showcasing your product and attracting future customers. But it's not easy to create case studies that your audience can’t wait to read.
In this post, I’ll go over the definition of a case study and the best examples to inspire you.
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What is a case study?
Marketing case study examples, digital marketing case study examples.
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A case study is a detailed story of something your company did. It includes a beginning — often discussing a challenge, an explanation of what happened next, and a resolution that explains how the company solved or improved on something.
A case study proves how your product has helped other companies by demonstrating real-life results. Not only that, but marketing case studies with solutions typically contain quotes from the customer.
This means that they’re not just ads where you praise your own product. Rather, other companies are praising your company — and there’s no stronger marketing material than a verbal recommendation or testimonial.
A great case study also has research and stats to back up points made about a project's results.
There are several ways to use case studies in your marketing strategy.
From featuring them on your website to including them in a sales presentation, a case study is a strong, persuasive tool that shows customers why they should work with you — straight from another customer.
Writing one from scratch is hard, though, which is why we’ve created a collection of case study templates for you to get started.
There’s no better way to generate more leads than by writing case studies . However, without case study examples from which to draw inspiration, it can be difficult to write impactful studies that convince visitors to submit a form.
To help you create an attractive and high-converting case study, we've put together a list of some of our favorites. This list includes famous case studies in marketing, technology, and business.
These studies can show you how to frame your company's offers in a way that is useful to your audience. So, look, and let these examples inspire your next brilliant case study design.
These marketing case studies with solutions show the value proposition of each product. They also show how each company benefited in both the short and long term using quantitative data.
In other words, you don’t get just nice statements, like “this company helped us a lot.” You see actual change within the firm through numbers and figures.
You can put your learnings into action with HubSpot's Free Case Study Templates . Available as custom designs and text-based documents, you can upload these templates to your CMS or send them to prospects as you see fit.
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15 Marketing Case Study Examples With Standout Success Stories
Some marketing campaigns leave a lasting impression. We’ve gathered insights from CEOs and marketing leaders to share one standout marketing case study that resonates with them.
Table of Contents
Dove’s real beauty campaign impact, oatly’s bold brand strategy, rockervox’s tax credit success, local bookstore’s community engagement, coca-cola’s personalized brand experience, dropbox’s viral referral program, authentic influencer marketing for cpg brand, airbnb’s “we accept” social impact, amul’s topical and humorous campaigns, axe’s “find your magic” brand refresh, squatty potty’s humorous viral video, old spice’s viral humor campaign, red bull stratos’s high-flying publicity, maple dental’s seo success story, dollar shave club’s viral launch video.
Some marketing campaigns leave a lasting impression.
We’ve gathered insights from CEOs and marketing leaders to share one standout marketing case study that resonates with them.
From Dove’s Real Beauty Campaign’s impact to Dollar Shave Club’s viral launch video, explore fifteen memorable marketing triumphs that these experts can’t forget.
- AXE’s ‘Find Your Magic’ Brand Refresh
One marketing case study that has always stayed with me is the Dove Real Beauty Campaign. It really struck a chord when it launched in 2004, challenging the beauty standards and celebrating women’s diversity. What made it stand out was the “Real Beauty Sketches” video, where women described themselves to a sketch artist. Seeing the stark contrast between their self-perceptions and how others saw them was incredibly eye-opening and touching.
What I found so compelling about this campaign was its message of self-acceptance and empowerment. Dove didn’t just try to sell products; they took a stand for something much bigger, and it resonated deeply with people. Using video storytelling was a genius move as it made the message more impactful and shareable. I believe Dove showed how brands can make a real difference by addressing important social issues in an authentic and meaningful way.
Nicole Dunn , CEO, PR and Marketing Expert, Dunn Pellier Media
As a content and brand marketer, Oatly’s brand strategy always inspires me. They are a textbook example of comprehensive brand-building.
Their visual style is instantly recognizable—bold, disruptive, and often filled with humor, making oat milk a statement and something you’d be proud to display on your shelves or socials.
Their tone of voice is witty, sometimes cheeky. They’ve even printed negative feedback on their packaging, which really just shows how they court controversy to spark conversations and enhance their brand’s visibility.
And there’s a strong story behind Oatly, too. They promote sustainability and aren’t shy about their environmental impact, which has simply helped them grow an enthusiastic community of environmental advocates. Clever in endless ways, such that tons of oat milk brands have followed suit.
Wisia Neo , Content Marketing Manager, ViB
One standout marketing case study that sticks with me is the implementation of our RockerVox Restaurant Bundle, aimed at optimizing cash flow through targeted use of employer-based tax credits. The power of this case study lies in its immediate financial impact on the client, a local restaurant chain that was struggling to keep its doors open in the wake of the pandemic.
By integrating the Work Opportunity Tax Credit (WOTC) and other relevant tax schemes into their payroll setup, we enabled the restaurant to reclaim a significant amount in tax credits. The real game-changer was not just the financial relief but also how it was achieved. We combined this with StaffedUp’s Applicant Tracking System, which improved their hiring processes and decreased employee turnover. This holistic approach led to a sustainable improvement in their operations and cash flow.
What made this case study so great was its tangible results. The restaurant saw a cash flow improvement of over 100%. This wasn’t just a number on a report—it meant being able to invest back into the business, enhance their services, and ultimately, keep their community fed and employed. This approach of integrating technology with financial strategy can be adapted by other businesses striving for similar resilience and growth, especially in times of economic difficulty.
Philip Wentworth, Jr , Co-Founder and CEO, Rockerbox
Certainly, one particularly impactful marketing strategy I led at FireRock Marketing involved a small local bookstore that was facing steep competition from online retailers. Our challenge was to increase foot traffic and reinforce the store’s brand presence in a highly digitalized market.
We initiated a campaign called “Local Pages, Local Stages,” where we leveraged digital marketing alongside community engagement. The bookstore held monthly events featuring local authors and artists, which we promoted heavily through targeted social media ads, email marketing, and local influencer partnerships. This multifaceted approach tapped into the community’s growing interest in supporting local ventures, enhancing visibility significantly.
The outcomes were remarkable. Over the campaign’s six-month duration, in-store sales increased by 40%, and the bookstore saw a 65% rise in attendance at events, which also boosted ancillary revenue from merchandise and cafe sales. Additionally, social media engagement metrics increased by over 150%, reflecting greater brand awareness.
This case study sticks with me because it exemplifies the power of combining digital strategies with community-based marketing to create a sustainable growth model. It shows how businesses can use holistic, integrated approaches to effectively adapt to new consumer behaviors and competitive landscapes.
Ryan Esco , Chief Marketing Officer, FireRock Marketing
A memorable marketing case study is the “Share a Coke” campaign by Coca-Cola. Initially launched in Australia in 2011, this campaign personalized the Coke experience by replacing the iconic Coca-Cola logo on bottles with common first names.
The idea was to encourage people to find bottles with their names or those of their friends and family, creating a more personal connection to the brand. The campaign was an enormous hit and was quickly rolled out worldwide, incorporating more names and even terms of endearment in different languages.
The brilliance of this campaign lay in its use of personalization, which tapped directly into the social media trend of sharing personal moments. People enthusiastically shared their personalized Coke bottles on various social media platforms, significantly amplifying the campaign’s reach beyond traditional advertising media.
This strategy boosted sales and reinforced Coca-Cola’s position as a fun and innovative brand. The “Share a Coke” campaign is a powerful example of how traditional products can be revitalized through creative marketing strategies that engage consumers personally.
Sahil Kakkar , CEO and Founder, RankWatch
For me, a standout marketing case study that really sticks with me is Dropbox’s referral program strategy back in their early days. By offering free storage space for every successful referral, they incentivized existing users to spread the word organically, resulting in exponential growth at virtually no acquisition cost.
What made this case study so brilliant was how elegantly it aligned product experience with viral sharing. Users had a vested interest in sharing Dropbox since it directly expanded their own cloud storage. This created a self-perpetuating cycle where better product engagement fueled more referrals, which then improved engagement further.
It was an ingenious lever that capitalized on the inherent sharing dynamics of their service to ignite explosive growth. The simplicity and potency of this growth hack is what truly resonates as a paragon of effective guerrilla marketing.
Ben Walker , Founder and CEO, Ditto Transcripts
One marketing case study that has always stuck with me was a campaign I led for a major CPG brand a few years back. The goal was to increase awareness and trial of their new line of organic snacks among millennial moms in a crowded market.
We developed an influencer seeding strategy focused on relatable mom micro-influencers on Instagram. Instead of just sending products, we worked with the influencers to develop authentic content that told real stories about the role of snacking and nutrition in busy family life. The photos and videos felt genuine, not overly polished or promotional.
Engagement was through the roof—the content resonated so strongly with the target audience. By the end of the 3-month campaign, we increased awareness by 45% and trial by over 20%. The CPG brand was thrilled, and the case study became an example we still reference today of the power of influencer marketing done right. Authenticity wins.
Gert Kulla , CEO, RedBat.Agency
One marketing case study that stuck with me was the Airbnb “We Accept” campaign, launched in 2017, focusing on social impact. This response to the global refugee crisis aimed to promote inclusivity, diversity, and acceptance within communities worldwide.
What made this case study remarkable was its ability to leverage the Airbnb platform to facilitate connections between hosts and displaced persons, providing them with temporary housing and support.
Airbnb demonstrated its commitment to using its platform for social good and making a tangible difference in the lives of those in need. This aligned with its mission to create a world where anyone can belong anywhere.
At the end of the day, Airbnb’s “We Accept” campaign was a compelling case study showing brands how to address social issues, promote inclusivity, and drive positive change in communities worldwide.
Peter Bryla , Community Manager, ResumeLab
One standout marketing case study that sticks with me is the “Amul” marketing campaigns by Amul, the iconic Indian dairy cooperative, make for excellent and impactful case studies as well. Here’s why Amul’s marketing stands out:
The Amul Girl – The mascot of a mischievous, friendly butter girl has become one of India’s most recognizable brand icons since her inception in 1966. Her presence on topical ads commenting on the latest news and pop culture trends has made Amul’s billboards a long-standing source of joy and relevance.
Topicality – Amul’s billboards and newspaper ads are renowned for their topicality and ability to humorously comment on major events, celebrity happenings, and political developments within hours. This real-time marketing has kept the brand part of daily conversations for decades.
Humor – The not-so-secret sauce is the brilliant use of puns, wordplay, and satirical humor that Amul consistently delivers through the eyes of the Amul Girl. The healthy, inoffensive jokes have earned a cult following.
Longevity – Very few brands can boast an equally iconic and successful campaign running for over 50 years, still keeping audiences engaged across multiple generations. The long-running property itself has become a case study in sustaining relevance.
Local Connect – While achieving pan-India recognition, the puns often play on regional language nuances, striking a chord with Amul’s Gujarati roots and building a personal connection with local consumers.
The impact of Amul’s long-running topical billboard campaign is unmatched—it has not only strengthened brand recognition and loyalty but has also made the cooperative a beloved part of India’s popular culture and daily life. Creativity, agility, and contextual marketing at its best!
Yash Gangwal , Founder, Urban Monkey
Axe (Lynx in the UK) had created a problematic brand image from past marketing efforts. Their focus on ‘attraction is connected to conquest’ hadn’t dissuaded men from buying their deodorants, but had a toxic effect on perceptions of women. Research conducted on brand equity showed that brand equity was declining, with this perception of the brand aging poorly and desperately needing a refresh to continue allowing the brand to be relevant for the future.
That led to a superb partnership with creative agency 72andSunny Amsterdam. Unilever was able to tap into an entirely new philosophy for its brand:
Empower men to be the most attractive man they could be – themselves.
With that idea in mind, 2016 saw the launch of the AXE ‘Find Your Magic’ commercial, a stunning celebration of the diversity of modern masculinity. The campaign also saw the release of a new range of premium grooming products and a supporting influencer marketing campaign featuring brand ambassadors, including John Legend.
While not all parts of the creative were successful, the campaign drove more than 39 million views and 4 billion media impressions in the first quarter after the launch. But most critically, AXE saw a 30+% increase in positive perception of their brand.
This campaign will stand the test of time because it combines several important and brave initiatives:
- A forward-thinking mentality that the brand image you have today may not be suited for a future world
- A broader understanding of what your customer base looks like – women also play a big role in men’s choice of deodorant
- A big and bold attempt to change the way your brand is perceived – and succeeding with flying colors.
Yannis Dimitroulas , SEO and Digital Marketing Specialist, Front & Centre
One standout marketing case study that sticks with me is the campaign for Squatty Potty. The brand created a humorous video featuring a unicorn pooping rainbow ice cream to demonstrate the benefits of using their product. This unconventional approach garnered widespread attention and went viral, generating millions of views and shares on social media platforms.
The success of this campaign can be attributed to its creative storytelling, humor, and shock value, which made it memorable and engaging for viewers. By thinking outside the box and taking a risk with their messaging, Squatty Potty was able to create a unique and effective marketing strategy that resonated with consumers.
This case study serves as a reminder that creativity and originality can set a brand apart in a crowded marketplace, ultimately leading to increased brand awareness and customer engagement.
Carly Hill , Operations Manager, Virtual Holiday Party
The Old Spice ‘The Man Your Man Could Smell Like’ campaign remains etched in my memory. Its brilliance lies in its humor and creativity. By featuring a charismatic spokesperson and employing absurd scenarios, it captured viewers’ attention and went viral.
The campaign seamlessly integrated across platforms, from TV to social media, maximizing its reach. Its cleverness and entertainment value made it unforgettable, setting a benchmark for engaging marketing strategies. The case study showcases the importance of storytelling and humor in capturing audience interest and driving brand awareness.
Dan Ponomarenko , CEO, Webvizio
A marketing case study that has made a lasting impression on me is the Red Bull Stratos Jump. This campaign was for Felix Baumgartner’s record-breaking jump from the edge of space, sponsored by Red Bull. The goal of this campaign was to create buzz and generate brand awareness through this extreme event.
The reason why this case study stands out to me is because of its successful execution in capturing the attention and interest of not just extreme sports enthusiasts, but also the general public.
The live broadcast of Baumgartner’s jump on various channels and social media platforms garnered over 52 million views, making it one of the most-watched live events ever. Red Bull’s strategic use of real-time marketing, storytelling, and high-quality visuals made this campaign a huge success, resulting in a significant increase in sales and brand recognition for the company.
This case study serves as a great example of how a well-planned and executed marketing campaign can effectively reach and engage with a wide audience.
Brian Hemmerle , Founder and CEO, Kentucky Sell Now
One standout marketing case study that resonates with me is the SEO transformation for Maple Dental. This campaign dramatically improved their local online visibility, leading to a substantial increase in new patient appointments. The integration of Google Maps SEO proved to be a game-changer, emphasizing the power of local search optimization in attracting nearby clients.
What made this case study exceptional was the measurable impact on the clinic’s business. For instance, the campaign led to a 230% increase in phone calls and a 223% increase in website visits. Such clear, quantifiable results showcased a direct contribution to business growth. These metrics are vital for demonstrating the return on investment in digital marketing efforts.
Additionally, the use of a targeted approach to enhance Google Maps visibility was particularly compelling. By optimizing their presence on Google Maps, Maple Dental saw a 250% increase in monthly maps impressions, which directly correlated with increased patient inquiries and visits.
Ihor Lavrenenko , CEO, Dental SEO Expert
One case study that always comes to mind is Dollar Shave Club’s launch video in 2012. It was called “Our Blades Are F*cking Great,” and let’s just say it got people talking! This video was hilarious and totally different from those fancy shaving commercials we were used to seeing. It spoke directly to guys, poked fun at expensive razor prices, and offered a way to get awesome blades for much less.
Additionally, it told everyone to check out their website. It was short, catchy, and made a huge impact. This is a perfect example of how a creative and funny video can grab attention, make people remember your brand, and get them to become customers.
Perry Zheng , Founder and CEO, Pallas
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40 Detailed Digital Marketing Case Studies [2024]
In the rapidly evolving digital era, the effectiveness of marketing tactics can have a huge impact on the brand’s success. This collection of 40 detailed digital marketing case studies from globally recognized companies offers a deep dive into the tactical approaches and innovative solutions that have reshaped consumer interactions and carved success stories across various industries. From leveraging cutting-edge technologies like augmented reality and artificial intelligence to embracing community-driven initiatives and personalized user experiences, each case study presents a unique challenge faced by the brand, the strategic response implemented, and the resultant impact on market presence and consumer loyalty. These 40 narratives not only highlight the transformative potential of effective digital marketing but also serve as a valuable learning resource for marketing professionals seeking to understand the dynamics of customer engagement and brand growth in the digital era.
Related: Surprising Digital Marketing Statistics & Facts
1. Airbnb – Leveraging User-Generated Content
Task or Conflict:
Airbnb, despite its revolutionary concept, faced significant challenges in scaling trust and global brand awareness. Operating in a highly competitive travel industry, Airbnb needed a cost-effective strategy to resonate emotionally and authentically with potential customers worldwide, without resorting to expensive traditional marketing techniques.
To overcome this challenge, Airbnb capitalized on user-generated content by motivating both parties to share their unique lodging experiences through images and stories on different platforms. They facilitated this by creating hashtags and launching contests to motivate participation. Airbnb’s strategy was not merely about collecting content but about fostering a community-centric brand that values customer experiences and stories as the core of its marketing.
Overall Impact:
- Considerable increase in organic reach across different online platforms.
- Enhanced brand trust and credibility, which translated into increased bookings globally.
Key Learnings:
- User-generated content can serve as an impactful and economical marketing tool.
- Building a brand community can help in enhanced user loyalty and organic brand promotion.
2. Nike – Digital Brand Transformation
Nike faced the challenge of maintaining relevance and connection with its diverse consumer base in a rapidly changing digital landscape. As consumer behaviors shifted towards more digital interactions and personalized experiences, Nike needed to find innovative ways to engage with its audience beyond traditional advertising and retail settings.
Nike addressed this challenge by fully embracing digital transformation with the launch of various mobile applications, such as the Nike Training Club and Nike Run Club, which integrated workout plans, running tracking, and community challenges into their user experience. They also harnessed the power of data analytics to offer personalized product recommendations and tailored fitness advice, thereby creating a more engaging and customized user journey.
- Drastically improved user engagement rates, with millions of downloads and active users on their apps.
- Strengthened brand loyalty and community feel among Nike customers, leading to increased sales both online and in-store.
- Digital tools and apps can significantly enhance customer engagement and loyalty when used to provide value beyond the traditional sales experience.
- Personalization and community building are crucial for maintaining brand relevance in a digital-first consumer market.
3. Tesco – Virtual Store
Tesco was looking to expand its market presence in South Korea without the substantial costs associated with opening new physical stores. The challenge was to reach a tech-savvy and time-constrained commuter population who valued convenience and efficiency in their shopping experiences.
Tesco’s innovative solution was to create virtual stores in subway stations, where busy commuters could shop while waiting for their train. They placed life-sized billboards of store shelves with products bearing QR codes in subway stations. Commuters could scan these codes using Tesco’s mobile app to add items to their virtual shopping cart, making their daily commute time productive for shopping.
- Positioned Tesco as the top online grocery retailer in South Korea.
- Achieved a substantial increase in customer base and online sales, effectively transforming the grocery shopping experience.
- Digital innovations that blend into the daily routines of customers can lead to high engagement and conversion rates.
- Utilizing commonplace technology like QR codes can effectively connect the physical and digital shopping environments, catering to the modern consumer’s desire for convenience and efficiency.
4. Spotify – Data-Driven Personalization
Spotify faced the challenge of differentiating itself in the saturated music streaming market. With numerous services offering similar catalogues of music, Spotify needed to find a way to stand out and retain users in a competitive landscape where user preferences and engagement could make a significant difference.
Spotify’s approach was to harness the vast amounts of data they collected on user listening habits to create hyper-personalized experiences. They developed algorithms for features like “Discover Weekly,” which provides users with a playlist tailored to their tastes every week. This strategy was rooted in predictive analytics and machine learning, aiming to anticipate user preferences and introduce them to new music seamlessly.
- Considerably increased user engagement on the platform.
- Boosted subscription rates as users found more value in personalized content.
- Leveraging user data for personalization can highly distinguish a service in the market.
- Continuous innovation in user experience can drive both retention and acquisition.
5. Domino’s Pizza – Digital Ordering Innovation
Domino’s was striving to enhance sales and streamline the customer ordering process. The fast-food industry is notoriously competitive, and Domino’s needed to innovate to make ordering as convenient and quick as possible for customers seeking instant gratification.
Domino’s revolutionized the digital ordering process by introducing an array of ordering methods, including a pioneering “pizza emoji” text order system and a robust digital platform that works seamlessly across various devices. They also utilized voice recognition and artificial intelligence to predict customer preferences and speed up the ordering process.
- Digital orders rose dramatically to account for a huge portion of total sales.
- The company’s stock price increased due to improved operational efficiency and customer satisfaction.
- Streamlining the customer experience with technology can lead to substantial increases in sales and efficiency.
- Innovative ordering options can set a company apart in a competitive industry.
Related: How to learn Digital Marketing?
6. GoPro – Harnessing Advocacy
GoPro needed to amplify its brand presence and deepen user engagement in a market where consumers are bombarded with countless digital advertisements. The challenge was to make GoPro not just a product but a part of its customers’ adventure narratives.
GoPro’s strategy focused on turning their customers into brand ambassadors by encouraging them to share their thrilling videos and images taken with GoPro cameras. They launched the “GoPro Awards” to incentivize user content submission with rewards, effectively using this content in their marketing campaigns to showcase the camera’s capabilities.
- Enhanced brand loyalty and created a massive repository of authentic user-generated content.
- Fostered a strong community of GoPro users who are engaged and regularly contribute content.
- Encouraging user-generated content can create a vibrant community and provide authentic marketing material.
- Rewarding customer contributions can increase engagement and brand loyalty.
7. ZARA – Agile Social Media Strategies
ZARA faced the challenge of maintaining its fast-fashion leadership while transitioning to a digital-first retail approach. They needed to keep up with rapid fashion trends and consumer expectations on social media, where trends can change overnight.
ZARA employed an agile social media strategy that mirrored its renowned supply chain flexibility. They quickly adapted campaigns and content to reflect the latest fashion trends and consumer feedback, using a data-driven approach to tailor their marketing efforts to real-time insights.
- Increased engagement on social media platforms, driving both online and offline traffic.
- Enhanced brand perception as trendy and responsive among consumers.
- Agility in social media marketing can effectively align with and capitalize on consumer trends.
- Data-driven content adaptation can lead to higher consumer engagement and satisfaction.
8. Slack – B2B Content Marketing
Slack needed to establish itself in the crowded B2B tech market, where differentiation is crucial for capturing the attention of business customers. The challenge was not only to stand out but also to articulate the value of Slack’s platform in streamlining communication across diverse teams and enterprises.
Slack’s strategy involved utilizing high-quality, informative content marketing to address common communication challenges faced by businesses. They created a variety of content types, including case studies, whitepapers, and blogs, which demonstrated how Slack enhances productivity and integrates with various business tools. This approach helped position Slack as a thought leader in workplace communication.
- Successfully established thought leadership in the B2B communications sphere.
- Saw a significant increase in adoption rates among businesses, leading to a larger user base.
- High-value content that addresses specific industry pain points can effectively engage and convert B2B audiences.
- Establishing thought leadership through content is vital for differentiation in the B2B technology sector.
9. Unilever (Dove) – Campaign for Real Beauty
Dove sought to challenge beauty industry norms and redefine what beauty means to women around the world. The brand faced the task of shifting perceptions in a market saturated with idealized, often unattainable beauty standards, to foster a broader, more inclusive definition of beauty.
Dove launched the “Campaign for Real Beauty” by featuring real women with diverse body types, ages, and ethnicities in their advertisements. This strategy was complemented by a series of videos, workshops, and storytelling initiatives that highlighted personal beauty stories, aiming to inspire confidence among women and provoke conversations about beauty standards.
- Successfully shifted consumer perception of beauty, promoting a more inclusive view.
- Strengthened customer loyalty and brand alignment with core values of diversity and authenticity.
- Marketing campaigns that resonate emotionally and challenge societal norms can create powerful brand affinity.
- Authenticity in advertising can lead to deeper customer connections and loyalty.
10. Coca-Cola – Share a Coke Campaign
Coca-Cola needed to rejuvenate its brand and increase beverage consumption among younger demographics globally. The challenge was to create a personalized connection with consumers in a way that felt genuine and encouraged social sharing.
Coca-Cola’s “Share a Coke” campaign replaced the iconic Coca-Cola logo on bottles with common first names and invited people to find bottles with their names or those of their friends and family. The campaign was amplified through social media, encouraging customers to share their personalized Coke bottles online using specific hashtags.
- Revitalized global brand engagement, particularly among teens and young adults.
- Triggered a worldwide trend of personalized consumer goods that led to increased sales.
- Personalization at a mass scale can effectively engage consumers and foster a personal connection with the brand.
- Social media can be a impactful tool for amplifying interactive marketing operations and driving consumer participation.
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11. Amazon – Prime Day Optimization
Amazon sought to boost its annual Prime Day sales and enhance customer loyalty in a market crowded with competing sales events. The challenge was to distinguish Prime Day from other sales and drive both participation and revenue across global markets.
Amazon utilized targeted email marketing campaigns, personalized shopping recommendations, and exclusive Prime member promotions to drive engagement. They also leveraged their massive logistics network to ensure fast delivery, enhancing the customer experience and encouraging repeat purchases during the event.
- Record-breaking sales figures each year, surpassing previous Prime Day events.
- Increased Prime membership sign-ups, reinforcing customer loyalty and recurring revenue.
- Personalization and exclusive benefits can effectively drive participation and customer loyalty during large-scale promotional events.
- Efficient logistical support can enhance customer satisfaction and drive repeat business during high-demand periods.
12. LEGO – Reviving a Brand
LEGO faced a severe decline in sales in the early 2000s, with risks of bankruptcy looming due to outdated product offerings and a failure to engage a new generation of children.
LEGO revamped its marketing strategy by integrating digital experiences with physical play. This included partnerships with popular franchises for themed LEGO sets and developing interactive digital platforms where children could share their creations.
- Successfully reversed the sales decline, returning to profitability.
- Expanded their customer base to include both children and nostalgic adults.
- Combining digital experiences with traditional products can breathe new life into classic brands.
- Strategic partnerships can effectively expand market reach and relevance.
13. Ford – Euro 2020 Sponsorship Activation
Ford aimed to leverage its sponsorship of the UEFA Euro 2020 to enhance its brand visibility and connect with a diverse European audience, amidst a cluttered advertising environment.
Ford developed an interactive campaign that included a virtual reality experience allowing fans to “sit” in a Ford while taking a virtual tour of football stadiums. They also used real-time social media updates linked to game events to engage viewers.
- Increased brand engagement across Europe, particularly during game times.
- Enhanced brand association with innovation and excitement.
- Out-of-the-box advertising can develop unforgettable brand experiences and enhance user engagement.
- Real-time social media engagement can effectively capitalize on event-driven marketing opportunities.
14. IBM – Smarter Planet Initiative
IBM wanted to position itself not just as a technology provider but as a thought leader addressing global challenges through innovation, needing to shift public perception and increase business engagements in new verticals.
The “Smarter Planet” campaign was launched, utilizing extensive content marketing, including thought leadership articles, case studies, and partnerships with academic institutions to demonstrate how technology can solve real-world problems.
- Successfully shifted IBM’s brand perception towards that of a global innovator.
- Increased engagement in new industry verticals, including healthcare and renewable energy.
- Thought leadership can effectively shift brand perception and open new market opportunities.
- Content marketing can be a dominant device for demonstrating product relevance and company values.
15. Adidas – Digital Shoe Launch
Adidas needed to launch a new line of running shoes and wanted to stand out in a highly competitive market, aiming to reach a global audience while highlighting the technological advancements in their product.
Adidas created an augmented reality app that allowed users to virtually try on shoes and participate in a digital scavenger hunt that led them through interactive challenges based on shoe features. This was complemented by influencer partnerships to drive awareness and engagement.
- Generated significant global buzz and high consumer engagement online.
- Achieved high sales volumes immediately following the launch.
- Innovative use of augmented reality can provide engaging and unique consumer experiences.
- Influencer partnerships can amplify reach and credibility in product launches.
Related: Simple Ways to get better at Digital Marketing
16. Pepsi – Refresh Project
Pepsi aimed to rejuvenate its brand and foster a positive corporate image in the face of growing health concerns about sugary drinks. They needed a campaign that would resonate broadly and foster substantial consumer engagement.
The Pepsi Refresh Project was a community-focused campaign that allowed people to submit and vote on projects for Pepsi to fund. The initiative focused on social good and community development, utilizing social media platforms to maximize engagement and participation.
- Improved brand image as socially responsible.
- Created widespread consumer engagement through voting and participation in the campaign.
- Brand alignment with social responsibility can enhance corporate image and customer engagement.
- Interactive and community-focused campaigns can drive substantial consumer participation and loyalty.
17. Samsung – Galaxy Launch
Samsung faced the challenge of launching their new Galaxy smartphone in a market dominated by Apple’s iPhone. They needed to differentiate their product and create a compelling argument for consumers to switch.
Samsung embarked on a comprehensive marketing campaign that highlighted the Galaxy’s superior tech specifications and user-friendly features compared to the iPhone. The campaign included high-profile television ads, social media challenges, and interactive pop-ups where consumers could experience the technology firsthand.
- Successfully increased market share in the smartphone industry.
- Enhanced consumer perception of Samsung as a leader in technology innovation.
- Highlighting product advantages through comparative advertising can effectively influence consumer purchasing decisions.
- Interactive marketing experiences can deepen consumer engagement and brand loyalty.
18. Google – Education Initiatives
Google aimed to expand its influence in the education sector but faced skepticism from educational institutions about the applicability and security of digital tools in educational settings.
Google launched a series of educational initiatives, including Google Classroom, which offered a seamless, integrated platform for managing teaching and learning. They provided robust security features and collaborated with educators to tailor their tools to classroom needs.
- Widely adopted by schools worldwide, becoming a staple in digital education.
- Strengthened Google’s reputation as a valuable partner in education technology.
- Tailoring technology solutions to meet specific industry needs can lead to widespread adoption.
- Collaborations with industry professionals can enhance product design and market acceptance.
19. MasterCard – Priceless Campaign
MasterCard needed to differentiate itself in a crowded credit card market and foster deeper emotional connections with its customers, moving beyond transactional relationships.
The “Priceless” campaign was launched, featuring stories of unique and emotional experiences made possible by MasterCard, emphasizing the card’s role in facilitating priceless life moments. The campaign was supported by partnerships with travel, dining, and entertainment sectors to offer exclusive experiences to cardholders.
- Successfully resonated with customers on a deeper level, strengthening brand loyalty.
- Increased usage of MasterCard for booking experiences and high-value purchases.
- Emotional branding can create deeper consumer connections and loyalty.
- Exclusive partnerships can enhance the value proposition of a product.
20. Netflix – Global Expansion Strategy
Netflix needed to expand its subscriber base internationally but faced challenges related to content relevance and local competition in various countries.
Netflix invested heavily in local content production, creating original series and films that catered to local tastes and cultures. They also optimized their user interface to accommodate multiple languages and cultural nuances, improving user experience globally.
- Significantly increased international subscriber numbers.
- Enhanced global brand recognition and loyalty through culturally relevant content.
- Investing in local content can significantly improve market penetration and customer satisfaction in new regions.
- Cultural customization of product offerings can enhance user experience and brand loyalty internationally.
Related: How to use AR/VR in Digital Marketing?
21. Volvo – Safety Marketing
Volvo sought to reinforce its position as a leader in automotive safety in a market increasingly focused on electric and autonomous vehicles. The challenge was to communicate Volvo’s longstanding commitment to safety innovation in a way that resonated with modern consumers and differentiated it from competitors.
Volvo launched a multi-faceted digital marketing campaign highlighting its historical safety innovations and the integration of advanced safety technologies in its newest models. The campaign used emotional storytelling through customer testimonials and crash-test footage to highlight the life-saving impacts of their vehicles.
- Reinforced Volvo’s reputation as a leader in vehicle safety.
- Increased consumer trust and interest in newer Volvo models.
- Leveraging brand heritage in marketing can strengthen consumer trust and loyalty.
- Emotional storytelling can effectively communicate complex product features like safety innovations.
22. Adobe – Subscription Model Transition
Adobe faced the challenge of transitioning from traditional software sales to a subscription-based model, which was initially met with resistance from its long-standing customer base used to one-time purchases.
Adobe implemented a comprehensive digital marketing strategy that highlighted the benefits of the subscription model, such as continuous updates, cloud storage, and improved collaboration tools. They also offered transitional discounts and bundled offers to existing customers to ease the shift.
- Successfully shifted the majority of their consumer base to the subscription model.
- Achieved a steady increase in recurring revenue and customer satisfaction.
- Clear communication of product value changes can facilitate major business model transitions.
- Offering incentives can mitigate customer resistance to new pricing structures.
23. Patagonia – Environmental Advocacy
Patagonia aimed to enhance its brand commitment to environmental sustainability while driving sales. The challenge was to authentically integrate this commitment into their marketing strategy without appearing opportunistic.
Patagonia’s approach included high-profile environmental projects, such as “Don’t Buy This Jacket,” which encouraged responsible consumption. They underlined the longevity of their goods and their restoration services, reinforcing the brand’s commitment to reducing environmental impact.
- Strengthened brand loyalty among environmentally conscious consumers.
- Maintained strong sales despite the campaign’s call for reduced consumption.
- Marketing activities that align with core company values can connect deeply with users.
- Advocacy and authenticity in marketing can differentiate a brand in a competitive market.
24. Microsoft – Cloud Computing
Microsoft needed to solidify its position in the rapidly growing cloud computing market against strong competitors like Amazon Web Services and Google Cloud.
Microsoft focused on marketing its hybrid cloud solutions, emphasizing security, compliance, and seamless integration with existing on-premise infrastructure. They leveraged case studies of successful deployments in key industries to showcase their expertise and reliability.
- Enhanced market share in the cloud computing industry.
- Built reliance and integrity among enterprise customers.
- Focusing on unique selling propositions such as security and hybrid capabilities can capture a niche market segment.
- Case studies are effective tools for demonstrating capability and building trust.
25. Red Bull – Branding Through Sports
Red Bull faced the challenge of marketing an energy drink in ways that would continually capture the attention of a young, dynamic audience.
Red Bull created a unique brand image focused on extreme sports and adventurous lifestyles. They sponsored athletes, hosted extreme sports events, and produced high-adrenaline content that was shared widely across digital platforms.
- Successfully maintained a vibrant and exciting brand image.
- Increased global brand recognition and loyalty among target demographics.
- Investing in brand-aligned content and sponsorships can improve product identity and user engagement.
- Content that resonates with the brand’s audience can drive both online engagement and real-world participation.
Related: High-Paying Digital Marketing Jobs
26. Oreo – Real-Time Marketing
Oreo aimed to capitalize on real-time events to stay pertinent and appealing in the current social media era.
Oreo’s digital marketing team set up a “war room” during major events like the Super Bowl, allowing them to react instantaneously to live events with clever, themed social media posts. This strategy was highlighted by their famous “You can still dunk in the dark” tweet during a Super Bowl blackout.
- Gained extensive media coverage and social media buzz.
- Enhanced engagement and supporters on social media platforms.
- Real-time marketing can create significant brand buzz and viral potential.
- Preparing to leverage unexpected events can lead to high-impact marketing moments.
27. Toyota – Hybrid Cars
Toyota needed to drive adoption of its hybrid vehicles amidst skepticism about hybrid technology and performance concerns.
Toyota launched an educational campaign that included test-drive events, informational videos, and customer testimonials highlighting the reliability, performance, and environmental benefits of their hybrid models.
- Increased sales and market share in the hybrid vehicle category.
- Strengthened Toyota’s reputation as a leader in automotive innovation.
- Educational marketing can effectively address consumer skepticism and boost product adoption.
- Demonstrating product benefits through real-life experiences can enhance consumer trust and interest.
28. BuzzFeed – Content Virality
BuzzFeed needed to maintain its dominance in the digital media space amid increasing competition from other content platforms offering similar viral-type content.
BuzzFeed optimized its approach to content creation by leveraging data analytics to understand what makes content shareable. They focused on creating highly engaging, visually appealing content tailored to specific audiences and distributed across various social platforms.
- Maintained high engagement rates and growth in readership.
- Solidified its leadership in developing viral content.
- Data-driven content creation can effectively maintain engagement in a competitive market.
- Tailoring content to platform-specific audiences can maximize shareability and reach.
29. IKEA – Augmented Reality App
IKEA faced the challenge of enhancing customer shopping experience and minimizing returns due to size mismatches or style misfit with their furniture.
IKEA launched an AR app that allows users to visualize furniture in their own space before buying. The app, integrated with IKEA’s digital catalog, enables users to see how different furniture styles and sizes fit and look in their actual living spaces.
- Reduced return rates due to size or style mismatches.
- Enhanced customer satisfaction and increased sales conversions through the app.
- Augmented reality can significantly enhance the online shopping experience.
- Providing solutions that reduce consumer uncertainty can lead to higher satisfaction and sales.
30. Canva – Democratizing Design
Canva aimed to make design accessible to non-designers, competing against professional design software that requires significant skills and training.
Canva developed an intuitive, user-friendly platform with drag-and-drop features and an extensive library of templates. Their marketing focused on empowering users with no prior design experience to create professional-level designs easily.
- Rapid growth in user base, including small businesses, educators, and marketers.
- Established Canva as a leader in accessible design tools.
- Making professional tools accessible to a broader audience can capture a significant market share.
- User-friendly design and effective educational marketing can drive adoption and loyalty.
Related: History of Digital Marketing
31. Fitbit – Community-Driven Fitness
Fitbit needed to differentiate itself in a crowded market of wearable fitness technology and engage users on a long-term basis.
Fitbit enhanced its devices with social features that allow users to interact with friends, challenge each other, etc. They focused on building a community around fitness, highlighting a lifestyle rather than just a product.
- Increased consumer engagement and retention rates.
- Strengthened brand loyalty through a community-centric approach.
- Community features in tech products can enhance customer engagement and product stickiness.
- Promoting a lifestyle and building a community can have more impact than concentrating solely on the features.
32. Sephora – Beauty Insider Loyalty Program
Sephora faced the challenge of increasing customer loyalty and repeat purchases in the competitive beauty retail market.
Sephora revamped its Beauty Insider loyalty program to offer more customized incentives, exclusive experiences, and beauty classes. The program utilizes customer data to tailor recommendations and promotions, enhancing the personal connection with the brand.
- Increased frequency of repeat purchases.
- Enhanced consumer faith and contentment with customized experiences.
- Loyalty programs that offer personalized experiences can improve user loyalty.
- Utilizing customer data effectively can lead to more fruitful marketing policies.
33. New York Times – Digital Subscription Growth
The New York Times needed to adapt to the digital age, facing declining print subscriptions and the challenge of monetizing digital content.
The NYT introduced a flexible digital subscription model, which included tiered pricing levels to attract a broader audience. They invested heavily in quality journalism and digital content to provide value that justifies the subscription cost.
- Successful growth in digital subscriptions, offsetting declines in print.
- Strengthened brand reputation as a leading news provider in the digital age.
- Providing high-quality content is crucial for monetizing digital platforms.
- Flexible pricing models can appeal to a broader range of consumers.
34. L’Oréal – Embracing Digital Beauty Tech
L’Oréal faced the challenge of personalizing the beauty shopping experience in a digital environment, where customers traditionally rely on in-store trials before purchasing makeup and skincare products.
L’Oréal invested in augmented reality and artificial intelligence technologies to create a virtual try-on app, allowing customers to see how different products look on their own skin. The app also provided personalized skincare recommendations based on user skin analysis conducted through their mobile device cameras. This technology was heavily marketed through social media and online advertising to drive app downloads and engagement.
- Significantly increased online sales and customer interaction with the brand.
- Enhanced customer satisfaction through personalized and innovative shopping experiences.
- Digital technologies like AR and AI can effectively bridge the gap between online shopping and the need for product trial.
- Personalization in the beauty industry enhances customer satisfaction and brand loyalty.
35. Duolingo – Gamification of Learning
Duolingo faced the challenge of making language learning engaging and retaining users over long periods.
Duolingo implemented gamification strategies in their app, including points, levels, and daily streaks, to make learning languages fun and addictive. They continuously updated their app with new languages and features to engage audiences.
- Significantly increased user retention and daily engagement.
- Expanded globally, ranking among the most popular language learning apps.
- Gamification can make educational content more interactive and improve retention rates.
- Regular updates and new features keep users interested and encouraged in using the application.
Related: Predictions about Digital Marketing Future
36. Warby Parker – Online Eyewear Customization
Warby Parker needed to overcome consumer hesitation about buying prescription glasses online without trying them on first.
Warby Parker introduced a home try-on program where consumers can shortlist five frames to try at home for free before buying. They combined this with a robust online virtual try-on feature that uses augmented reality to simulate the glasses on the user’s face.
- Reduced barriers to online purchases of eyewear.
- Increased user contentment and sales conversions.
- Innovative trial options can overcome traditional barriers to online shopping.
- Augmented reality can effectively bridge the gap between online and offline shopping experiences.
37. Tesla – Direct Sales Model
Tesla aimed to revolutionize the car buying experience but faced legal and market resistance against its direct sales model, bypassing traditional dealerships.
Tesla persisted with its direct sales approach, focusing on educating users about the advantages of electric vehicles through experiential showrooms and interactive displays. They also engaged in legal battles to secure the right to sell directly in various states.
- Established a successful direct-to-consumer sales model.
- More control over brand identity and user experience.
- Direct sales models can provide significant advantages in controlling the brand experience.
- Educational marketing can effectively shift consumer preferences and overcome market resistance.
38. Chanel – Leveraging Heritage in Digital Marketing
Chanel needed to maintain its iconic brand status while transitioning to a digital-first marketing strategy, ensuring they connect with a younger audience without losing their established customer base.
Chanel leveraged its rich heritage by creating digital storytelling campaigns that intertwined its history with modern elements. They utilized high-quality visuals and collaborated with contemporary artists and influencers to remain relevant and appealing across generations.
- Successfully engaged both younger and older demographics.
- Maintained a luxury brand image in the digital marketplace.
- Integrating brand heritage with modern digital marketing can appeal to a broad audience.
- High-quality content and strategic influencer partnerships can elevate brand perception in the digital era.
39. Under Armour – Connected Fitness Strategy
Under Armour sought to differentiate itself from other sports apparel brands by integrating technology into its product offerings.
Under Armour acquired several fitness app companies to create a connected fitness community that tracks and shares health data. They integrated these apps with their apparel and footwear, offering consumers a comprehensive fitness monitoring system.
- Created a unique ecosystem combining apparel, footwear, and digital health tracking.
- Strengthened brand loyalty among tech-savvy fitness enthusiasts.
- Integrating digital technology with traditional products can create a unique market position.
- Building a brand community can improve user loyalty and engagement.
40. Disney – Streaming Service Launch
Disney needed to enter the competitive streaming market controlled by established players such as Netflix and Amazon Prime Video. The challenge was to carve out a niche and attract subscribers to yet another streaming platform.
Disney leveraged its extensive library of beloved classics, along with exclusive new content from popular franchises, to launch Disney+. They marketed the platform with a nostalgic appeal combined with the excitement of new, exclusive releases, utilizing cross-promotions through their theme parks, merchandise, and television networks.
- Quickly amassed millions of subscribers worldwide.
- Successfully established Disney+ as a key player in the streaming market.
- Exclusive content and strong brand heritage can be pivotal in differentiating a new entrant in a crowded market.
- Leveraging existing brand ecosystems for cross-promotion can significantly boost the launch of new services.
Related: Digital Marketing Internship vs. Taking a Course
Closing Thoughts
These digital marketing case studies underscore the transformative power of strategic, data-driven marketing initiatives across a diverse array of industries. By examining these examples, it becomes clear that whether through embracing technological innovations, capitalizing on brand heritage, or engaging with communities in meaningful ways, companies can significantly enhance their market position and forge deeper connections with their audiences. Each case study not only narrates a story of challenge and solution but also distills critical lessons about the adaptability, creativity, and forward-thinking necessary in today’s digital marketing landscape. For businesses aiming to refine their marketing strategies, these insights offer invaluable guidance on harnessing digital tools to foster customer loyalty, drive engagement, and accelerate growth. Ultimately, these narratives celebrate the ingenuity of marketers in navigating the complexities of the digital world and crafting campaigns that resonate profoundly with consumers globally.
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Case Study: Patagonia—A Human-Centered Approach to Marketing
- First Online: 19 July 2023
Cite this chapter
- Charlotte Schatz 10 &
- Waldemar Pfoertsch 11
Part of the book series: Springer Business Cases ((SPBC))
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The case about Patagonia shows a clearly visible human-centered approach to marketing. The company is not only known for its sustainable and innovative product range and its support for environmental activism; they also demonstrated a deep understanding of the customer needs and the employees’ requirements. The Patagonia case study could be used as blueprint for many more companies and industries.
This case was prepared by Charlotte Schatz, Global Brand & Business Development Manager at HUGO BOSS AG, Metzingen, Germany, under the supervision of Professor Waldemar Pfoertsch at Pforzheim Business School. It is intended to be used as a basis for class discussion rather than an illustration of an either effective or ineffective handling of a management situation. It provides analysis and questions that are intended to present alternative approaches to deepening students’ comprehension of business issues and energizing classroom discussion.
Copyright © 2023 by the authors. No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means—electronic, mechanical, photocopying, recording, or otherwise—without the permission of the author. Contact [email protected]
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Fig. 5.1.5—URL 3
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Schatz, C., Pfoertsch, W. (2023). Case Study: Patagonia—A Human-Centered Approach to Marketing. In: Kotler, P., Pfoertsch, W., Sponholz, U., Haas, M. (eds) H2H Marketing. Springer Business Cases. Springer, Cham. https://doi.org/10.1007/978-3-031-22393-8_12
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Sony and the JK Wedding Dance
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United Breaks Guitars
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Marketing Reading: Digital Marketing
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Social Strategy at Nike
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The Tate's Digital Transformation
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The Walt Disney Company and Pixar, Inc.: To Acquire or Not to Acquire?
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Dow's Bid for Rohm and Haas
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Finance Reading: The Mergers and Acquisitions Process
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Apple: Privacy vs. Safety? (A)
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Sidewalk Labs: Privacy in a City Built from the Internet Up
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Data Breach at Equifax
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Apple's Core
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Design Thinking and Innovation at Apple
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Apple Inc. in 2012
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Iz-Lynn Chan at Far East Organization (Abridged)
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Barbara Norris: Leading Change in the General Surgery Unit
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Adobe Systems: Working Towards a "Suite" Release (A)
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Home Nursing of North Carolina
Castronics, llc, gemini investors, angie's list: ratings pioneer turns 20.
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Basecamp: Pricing
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J.C. Penney's "Fair and Square" Pricing Strategy
J.c. penney's 'fair and square' strategy (c): back to the future.
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Osaro: Picking the best path
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HubSpot and Motion AI: Chatbot-Enabled CRM
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GROW: Using Artificial Intelligence to Screen Human Intelligence
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GitLab and the Future of All-Remote Work (A)
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TCS: From Physical Offices to Borderless Work
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Starbucks Coffee Company: Transformation and Renewal
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JCPenney: Back in Business
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Arup: Building the Water Cube
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David Neeleman: Flight Path of a Servant Leader (A)
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A practical introduction to Marketing Environmental Analysis
The development of your overall marketing strategy has to start with an assessment of your business environment. In order to cover all bases, you can use a mix of several marketing frameworks. You can also use applied theories to evaluate different factors that affect your marketing strategy. So this is what marketing environmental analysis is all about. It can be broadly classified under external and internal factors. A marketing environmental analysis will highlight critical factors. You can use this to your advantage. But it also presents elements that are a risk to your planning and implementation.
Before you look into the “How”, let’s establish the “Why”. The benefits of doing a marketing environmental analysis vary. Generally speaking, the analysis:
- helps in setting and attaining marketing or organizational objectives
- indicates internal strengths and weaknesses of the organization
- highlights external threats and opportunities
- provides an understanding of trends and insights to gain advantage or improve offering
- clarifies expectations by considering capabilities and resources
- prepares organizations for adversity and changes within their industry
- forecasts possibilities for the future of the offering, brand or organization
There are 2 widely accepted divisions to the marketing environmental analysis. External & Internal environments. The external is split into macro-environment and micro-environment forces. So, let’s take a deeper dive into each of the main classifications. We will be using some popular models and theories to explain them.
Macro-Environment – Marketing Environmental Analysis
The macro-environment factors are external forces indirectly affecting the growth of your business. These affect both the micro and internal factors. Thus, leaving an impact on your brand and organization. One of the most popular models for inspecting the macro-environment is a PESTLE/PESTEL analysis. PESTLE/PESTEL is a business analysis tool that is also useful for marketing strategy. There are 6 major elements to explore here. These are:
- Sociological
- Technological
- Environmental
By examining each of the 6 forces, you will have a clear understanding of external factors that provide opportunities for you, your brand, or your business. It will also prepare you to plan against threats and challenges.
Let’s look at each of the 6 factors of PESTLE/PESTEL now:
The political situation of the region/country you are marketing to needs to be considered. Most industries have regulations in place for trade, taxes, quality, and labor. These and other government policies make up the political external factors that affect you and your business.
The pricing of your offering could be severely affected by demand/supply imbalance. Thus, it is important to analyze economic factors. Some inclusions are direct like interest rates and inflation. There are complex ones too. Such as purchasing power of consumers or regional economic growth.
SOCIOLOGICAL
Also referred to as Social factors. These forces include but are not limited to, demographics by region, and general sentiment towards the industry. These also consider the lifestyle, culture, and values of society and individuals.
TECHNOLOGICAL
The innovation revolution today means an ever-changing technological landscape. Consequently, this can affect Research & Development, resource utilization, and costs. It is important to study the way technology changes industries. Also, to understand the way consumers interact with a brand. As a result, it can exponentially help growth.
ENVIRONMENTAL
Besides general sustainability practices, there are government policies and initiatives. They all hold everyone responsible for their own environmental impact. These factors include climate change and best practices. But there is also alignment with regional and international norms. Finally, corporate social responsibility (CSR) initiatives are a part of these as well.
Despite commonalities between legal and political factors, it is necessary to look at these separately. Since there are international and local government laws that could affect you and your brand. The legal factors may include patents and intellectual property. Or occupational health & safety protocols too. But it’s important to also consider employment and consumer protection laws among others.
There are great examples of how to conduct a PESTEL/PESTEL analysis on pestleanalysis.com . Check these out to gain a better understanding of the model. And surely implement its application!
Micro-Environment – Marketing Environmental Analysis
Unlike macro-environmental external factors, these forces have a direct impact on your organization or brand. There are several classifications for these. But the simplest is Competitors, Partners , and Customers . A thorough analysis of micro-environmental factors is necessary. Since the application of strategy and the success of its execution is connected to these forces. Let’s take a closer look at elements of each category now:
Competitors
In 1980, Harvard Business School’s Michael E. Porter outlined his 5 forces theory. He highlights major forces that shape marketing and organizational strategy. Undoubtedly, he did it in a competitive environment. This we can see in all industries now. These 5 forces can be further explored by looking for answers to the questions under each force below:
COMPETITIVE RIVALRY
Who are your competitors? And, how many of them are there? How do their products compare to yours? Besides, what advantages or disadvantages do you have on them? Lastly, how does your pricing, strategy, marketing, and market share match up to these competitors?
SUPPLIER POWER
How many suppliers do you deal with? Furthermore, what are the benefits and risks of dealing with them? If not them, what are your alternatives? And, how much do they charge you? Finally, how much control do you have in the relationship?
BUYER POWER
How many buyers do you have? Also, what is the nature of your relationship with them? Are they distributors or direct customers? Moreover, what is the size and frequency of their orders? Because that shows who dictates the terms of the relationship. Consequently affecting… Will they go to a competitor’s offering? And the all-important, what will make them stay?
THREAT OF SUBSTITUTION
Is there another way… to do what you do? Are there alternatives? Or new options coming to the market? Besides, can what you do be outsourced for cheaper? Lastly of course, is there an easier solution to the problem you aim to solve?
THREAT OF NEW ENTRANTS
How easy is it for new brands to enter your domain? Is there a way to protect your market share? How are your brand and its identity positioned in your industry? Are you prepared for new entrants?
Without a doubt, analyzing your prospective and current customers is an essential undertaking. It has the biggest impact on your success. Performing consumer research will help you understand how the “public” feels about your brand. This research can be done with surveys. But also through feedback and analytics. It will aid decision-making for you or your business, as a result.
Successful analysis of your customers will help you:
- Connect with your customers to create meaningful relationships.
- Target high-value segments
- Meet service expectations
- Improve your offering
- Shape your brand image.
Once you have completed an analysis of your customers, you have to channel this into successfully creating Customer Personas. You can use these to serve segments better. And, you can check out how to create Customer Personas in this blog post here. Furthermore, Alexa’s blog has 10 great examples of personas that you can use to understand the inputs you may need to take in. Obviously, by adding value to your customers, you will position your brand as an effective solution to their needs!
Your partners could include a host of affiliates or agencies. Even service providers or consultants. The actual number depends on the nature of your business. It’s vital for these partners to be aligned with your goals. If so, you can be assured of their commitment to mutual success. For example, you could have agencies for your branding needs that uphold your brand image. They do this with quality signage. Additionally, you could be using third-party delivery partners for your e-commerce products. They need to ensure the delivery process is as seamless as an online purchase.
You have to take a deep look at every partnership that can benefit you. Then plan the terms within which you will operate. You have to maintain control processes to uphold your values and standards. Forming the right partnerships propels growth. It can add value for your customers. Further, it can revolutionize the way you and your industry do business. So a periodic examination of your partners will benefit you, your brand, your customers, and all marketing efforts.
Managing Partnerships
According to a 2015 McKinsey survey on managing strategic partnerships , the top 3 essential elements for shared success with partners are:
- Alignment on objectives
- Effective communication and trust
- Constructive leadership and processes
While looking at causes of failure in the same survey above, the factor that replaces leadership and processes is restructuring and evolution. How does this affect a constantly changing business landscape? It is always necessary to be prepared for the future! And ensuring your partners are positioned to join you. As you inevitably grow together. Despite this, do not forget to be agile enough. You have to be able to adapt too. There will be changes that your partners may be experiencing. Obviously, all relationships benefit from mutual understanding. And the way through is to have empathy!
Internal Environment – Marketing Environmental Analysis
Lastly, you have to take a closer look at all internal forces affecting how you operate. Your core mission and vision will address why you are in business, Consequently, it clarifies what you want to achieve. The McKinsey 7S framework is one of the most popularly used methods to analyze the internal environment. Being used since the late 1970s, it helps in assessing the functioning of organizations. It contains tangible elements such as Staff, Systems, Skills, and Structure. It also includes others like Shared Values, Strategy, and Style. Let’s take a look at these now:
Your goal helps you plan how you establish and grow. You do this to remain competitive within your industry. Your strategy has to be readily adaptable to changes in the environment. That’s how you meet your objectives.
Before, hierarchy defined the structure. Things are a little complex now with fluid work teams. But the shape and composition can evolve. The difference is made by communication and the ability to work together. This leads to an ideal situation where you work towards goals together.
Visibly, processes are in place everywhere. It includes all functions such as HR, Finance, IT, Sales, and Marketing. Other procedures also constitute systems like SOPs and guides. This undeniably contributes to how everyone in the organization plans to achieve set goals. Proper allocation of resources is important. But, constant tracking is vital.
The core competencies and capabilities of the entire team equal its skills. It is important to ensure new skills are taught. As well as the development of current skills. This will increase output. Thus making it easier to reach targets.
You have to take a look at each of your employees. Assess their behavior and motivations. Track their progression. Provide training. And engage them to earn their commitment. You have to constantly gauge them to have the best possible group of people. They will help you achieve your goals.
How the heads and managers chose to lead is crucial. It becomes a part of its style. Patterns of behavior will help in the formation of a culture. This culture brings employees together. They are in sync. In turn, this creates alignment with broader goals.
Shared Values
Culture is an accumulation of beliefs and values. Also, includes standards and behaviors. They shape how everyone conducts themselves. This applies to teams and organizations as well. It determines how staff treat each other. The shared values boost work ethic. Corporate culture leads to a direct effect on employee output and agility.
Critically, the framework relies on the integration of the 7Ss. You have to set the right goals. You can follow the SMARTER goals framework to do this. Check out this blog post that sheds light on it. Align your goals with your vision and mission. Your values and culture affect how your team performs. This changes the way your organization works and how others perceive your brand.
It’s directly connected to success for a brand. Assessment of your capabilities will help you play to your strengths. Additionally, the systems and processes you have in place optimize efficiency. This directly affects your bottom line. Your resource management and investment into R&D help you chart a way forward. Lastly, your employees, their capabilities, and continued growth are vital to achieving your goals, so keep that in mind always! This is much like running a content audit for your content strategy ! It is immensely useful and effective.
Above all, understanding how external factors affect your internal environment is crucial. It determines where you stand. You can’t expect to plan for the future without fully grasping your current position. Listing all the forces, directly and indirectly, is essential. It affects you and your business. But it is only part of the process. And connecting the dots to form patterns and trends in the next step. It will show you a way forward. Using the insights gained from the marketing environmental analysis makes the difference. You have to then turn it into an actionable plan in the next step.
A SWOT analysis is the most common, tried-and-tested method to utilize the information from marketing environmental analysis. You can see more about SWOT analysis, which is discussed here, in another blog post.
Clearly, there are several other frameworks, models, and applied theories in marketing. These are often interconnected. You can connect findings from the marketing environmental analysis to: – Choosing your Marketing mix – Selecting a broader marketing strategy such as the Ansoff matrix – Setting and deriving SMARTER goals or establishing OKRs – Understanding internal factors affecting change like the 7S McKinsey framework
Though, all can help you achieve similar results. The takeaway should be that your marketing environmental analysis is essential. How you do it, is up to you. It would be based on your resources and capabilities. Just remember that this isn’t a one-off exercise. You have to repeat it periodically. This is how you prepare for continued growth and success.
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9.8 The Marketing Environment
Learning objectives.
- Describe the external marketing environment in which businesses operate.
- Discuss the factors that influence consumer behavior.
By and large, managers can control the four Ps of the marketing mix: they can decide which products to offer, what prices to charge for them, how to distribute them, and how to reach target audiences. Unfortunately, there are other forces at work in the marketing world—forces over which marketers have much less control. These forces make up a company’s external marketing environment , which, as you can see in Figure 9.14 “The Marketing Environment” , we can divide into five sets of factors:
- Political and regulatory
- Competitive
- Technological
- Social and cultural
Figure 9.14 The Marketing Environment
These factors—and changes in them—present both threats and opportunities that require shifts in marketing plans. To spot trends and other signals that conditions may be in flux, marketers must continually monitor the environment in which their companies operate. To get a better idea of how they affect a firm’s marketing activities, let’s look at each of the five areas of the external environment.
The Political and Regulatory Environment
Federal, state, and local bodies can set rules or restrictions on the conduct of businesses. The purpose of regulation is to protect both consumers and businesses. Businesses favor some regulations (such as patent laws) while chafing under others (such as restrictions on advertising). The tobacco industry, for example, has had to learn to live with a federal ban on TV and radio advertising. More recently, many companies in the food industry have expressed unhappiness over regulations requiring the labeling of trans-fat content. The broadcasting industry is increasingly concerned about fines being imposed by the Federal Communications Commission for offenses against “standards of decency.” The loudest outcry probably came from telemarketers in response to the establishment of “do-not-call” registries.
All these actions occasioned changes in the marketing strategies of affected companies. Tobacco companies rerouted advertising dollars from TV to print media. Food companies reduced trans-fat levels and began targeting health-conscious consumers. Talent coordinators posted red flags next to the names of Janet Jackson (of the now-famous malfunctioning costume) and other performers. The telemarketing industry fired workers and scrambled to reinvent its entire business model.
The Economic Environment
Every day, marketing managers face a barrage of economic news. They must digest it, assess its impact, and alter marketing plans accordingly. Sometimes (but not recently), the news is cause for optimism—the economy’s improving, unemployment’s declining, consumer confidence is up. At other times (like today), the news makes them nervous—our economy is weak, industrial production is down, jobless claims are rising, consumer confidence has plummeted, credit is hard to get. Naturally, business thrives when the economy is growing, employment is full, and prices are stable. Marketing products is easier because consumers are willing to buy. On the other hand, when the economy is slowing (or stalled) and unemployment is rising, people have less money to spend, and the marketer’s job is harder.
Then there’s inflation, which pushes interest rates upward. If you’re trying to sell cars, you know that people facing higher interest rates aren’t so anxious to take out car loans. Sales will slip, and to counteract the anticipated slowdown, you might have to add generous rebates to your promotional plans.
Moreover, if you operate in foreign markets, you can’t focus on solely domestic economic conditions: you have to monitor the economy in every region where you do business. For example, if you’re the marketing director for a U.S. company whose goods are manufactured in China and sold in Brazil, you’ll need to know as much as you can about the economies in three countries: the United States, China, and Brazil. For one thing, you’ll have to pay particular attention to fluctuations in exchange rates, because changes will affect both your sales and your profits.
The Competitive Environment
Imagine playing tennis without watching what your opponent was doing. Marketers who don’t pay attention to their competitors are playing a losing game. In particular, they need to monitor the activities of two groups of competitors: the makers of competing brands and the makers of substitute products. Coke and Pepsi, for instance, are brand competitors who have engaged in the so-called cola wars for decades. Each tries to capture market share by convincing people that its soft drinks are better. Because neither wants to lose share to the other, they tend to resort to similar tactics. In summer 2004, both companies came out with nearly identical new colas boasting half the sugar, half the calories, and half the carbohydrates of regular colas. Coke called its product Coke C2, while Pepsi named its competing brand PepsiEdge. Both companies targeted cola drinkers who want the flavor of a regular soda but fewer calories. (By the way, both products failed and were taken off the market.)
Meanwhile, Coke and Pepsi have to watch Nantucket Nectars, whose fruit drinks are substitute products. What if Nantucket Nectars managed to get its drinks into the soda machines at more fast-food restaurants? How would Coke and Pepsi respond? What if Nantucket Nectars, which markets an ice tea with caffeine, introduced an ice tea drink with mega amounts of caffeine? Would marketers at Coke and Pepsi take action? What if Nantucket Nectars launched a marketing campaign promoting the health benefits of fruit drinks over soda? Would Coke and Pepsi reply with campaigns of their own? Would they respond by introducing new non-cola products?
The Technological Environment
When’s the last time you rented a VHS tape of a new movie? If you had trouble finding it, that’s because DVDs are in and videotapes are out. Videotape makers who were monitoring technological trends in the industry would probably have taken steps to keep up (go into DVDs) or otherwise protect themselves from losses (maybe even getting out of the market). In addition to making old products obsolete, technological advances create new products. Where would we be without the cell phone, digital cameras, text messaging, LASIK surgery, and global positioning systems?
Figure 9.15
Web sites like iTunes and Amazon.com are now offering customers the option of downloading movies. Do you think DVDs will suffer the same fate as videocassettes?
Sergio Carrasco – Tecnologia Obsoleta – CC BY-SA 2.0.
New technologies also transform the marketing mix in another important way: they alter the way companies market their products. Consider the revolutionary changes brought about by the Internet, which offers marketers a new medium for promoting and selling a vast range of goods and services. Marketers must keep abreast of technological advances and adapt their strategies, both to take advantage of the opportunities and to ward off threats.
The Social and Cultural Environment
Marketers also have to stay tuned to social and cultural factors that can affect sales. The values and attitudes of American consumers are in a state of almost constant flux; what’s cool one year is out of style the next. Think about the clothes you wore five years ago: would you wear them today? A lot of people wouldn’t—they’re the wrong style, the wrong fit, the wrong material, the wrong color, or just plain wrong. Now put yourself in the place of a marketer for a clothing company that targets teenagers and young adults. You wouldn’t survive if you tried to sell the same styles every year. As we said at the outset of this chapter, the key to successful marketing is meeting the needs of customers. This means knowing what they want right now, not last year.
Here’s another illustration. The last few decades have witnessed monumental shifts in the makeup of the American workforce. The number of women at all levels has increased significantly, the workforce has become more diverse, and telecommuting is more common. More people place more importance on balancing their work lives with the rest of their lives, and fewer people are willing to sacrifice their health to the demands of hectic work schedules. With these changes have come new marketing opportunities. As women spend more time at work, the traditional duties of the “homemaker” have shifted to day-care centers, nannies, house-cleaning services, and (for those who can afford them) child chauffeurs, birthday-party coordinators, and even family-photo assemblers (Loh, 2003). The number of gyms has mushroomed, the selection of home office furniture has expanded, and McDonald’s has bowed to the wishes of the health-conscious by eliminating its “super-size” option.
Generation Gaps
Clothiers who target teens and young adults (such as Gap and Abercrombie & Fitch) must estimate the size of both current and future audiences. So must companies that specialize in products aimed at customers in other age brackets—say, young children or retirees. Marketers pay particular attention to population shifts because they can have dramatic effects on a consumer base, either increasing or decreasing the number of potential customers.
Marketers tend to assign most Americans born in the last sixty years to one of three groups: the baby-boom generation (those born between 1946 and 1964), Generation X (1965 to 1975), and Generation Y—also known as “echo baby boomers” or “millenniums” (1976 to 2001) (Sincavage, 2004). In addition to age, members of each group tend to share common experiences, values, and attitudes that stay with them as they mature. These values and attitudes have a profound effect on both the products they want and the marketing efforts designed to sell products to them. Let’s look a little more closely at some of the defining characteristics of each group.
Baby Boomers
The huge wave of baby boomers began arriving in 1946, following World War II, and marketers have been catering to them ever since. What are they like? Sociologists have attributed to them such characteristics as “individuality, tolerance, and self-absorption” (Leo, 2003). There are seventy million of them (Neuborne & Kerwin, 2006), and as they marched through life over the course of five decades, marketers crowded the roadside to supply them with toys, clothes, cars, homes, and appliances—whatever they needed at the time. They’re still a major marketing force, but their needs have changed: they’re now the target market for Botox, pharmaceutical products, knee surgery, financial investments, cruises, vacation homes, and retirement communities.
Generation X
Because birth rates had declined by the time the “Gen X” babies first arrived in 1965, this group had just one decade to grow its numbers. Thus, it’s considerably smaller (seventeen million (Neuborne & Kerwin, 1999)) than the baby-boomer group, and it has also borne the brunt of rising divorce rates and the arrival of AIDS. Experts say, however, that they’re diverse, savvy, and pragmatic (Neuborne & Kerwin, 1999) and point out that even though they were once thought of as “slackers,” they actually tend to be self-reliant and successful. At this point in their lives, most are at their peak earning power and affluent enough to make marketers stand up and take notice.
Generation Y
When they became parents, baby boomers delivered a group to rival their own. Born between 1976 and 2001, their sixty million (Neuborn & Kerwin, 1999) children are sometimes called “echo boomers” (because their population boom is a reverberation of the baby boom). They’re still evolving, but they’ve already been assigned some attributes: they’re committed to integrity and honesty, family oriented and close to parents, ethnically diverse and accepting of differences, upbeat and optimistic about the future (although the troubled economy is lessening their optimism), education focused, independent, and goal oriented (Neuborne & Kerwin, 1999; Richardson, 2002; Fernandez-Cruz, 2006). They also seem to be coping fairly well: among today’s teens, arrests, drug use, drunk driving, and school dropout rates are all down (Tulgan & Martin, 2001).
Generation Ys are being courted by carmakers. Global car manufacturers have launched a number of 2012 cars designed to cater to the members of Generation Y (Brauer, 2011). Advertisers are also busy trying to find innovative ways to reach this group, but they’re finding that it’s not easy. Generation Ys grew up with computers and other modes of high technology, and they’re used to doing several things at once—simultaneously watching TV, texting, and playing games on the computer. As a result, they’re quite adept at tuning out ads. Try to reach them through TV ads and they’ll channel-surf right past them or hit their TiVo remotes (Bianco, 2004). You can’t get to them over the Internet because they know all about pop-up blockers. In one desperate attempt to get their attention, an advertiser paid college students fifty cents to view thirty-second ads on their computers (Baker, 2004). Advertisers keep trying, because Generation Y is big enough to wreck a brand by giving it a cold shoulder.
Consumer Behavior
Why did you buy an Apple computer when your friend bought a Dell PC? What information did you collect before making the decision? What factors did you consider when evaluating alternatives? How did you make your final choice? Were you happy with your decision? To design effective strategies, marketers need to find the answers that consumers give to questions such as these. In other words, they try to improve their understanding of consumer behavior —the decision process that individuals go through when purchasing or using products. In Section 9.8.7 “The Buying Process” , we’ll look at the process that buyers go through in choosing one product over another. Then, we’ll explore some factors that influence consumers’ behavior.
The Buying Process
Generally speaking, buyers run through a series of steps in deciding whether to purchase a particular product. Some purchases are made without much thought. You probably don’t think much, for example, about the brand of gasoline you put in your car; you just stop at the most convenient place. Other purchases, however, require considerable thought. For example, you probably spent a lot of time deciding which college to attend. Let’s revisit that decision as a means of examining the five steps that are involved in the consumer buying process and that are summarized in Figure 9.16 “The Buying Process” : need recognition, information search, evaluation, purchase , and postpurchase evaluation .
Figure 9.16 The Buying Process
- Need recognition . The process began when you recognized a need to go to college. Perhaps you wanted to prepare for a particular career, to become better educated, or to postpone going to work full time. Maybe your parents insisted.
- Information search . Once you recognized the need to go to college, you probably started gathering information about colleges. You may have gone online and studied the Web sites posted by a few schools. Perhaps you attended college fairs or spoke with your high school guidance counselor. You probably talked with friends about your options. Once you let colleges know that you were interested, admissions departments likely sent you tons of information.
- Evaluation . At this point, you studied the information you’d gathered. First, you probably decided what you wanted from a college. Perhaps price was your number-one criterion, or maybe distance from home. Maybe size was important, or reputation or available majors. Maybe it was the quality of the football team or the male-to-female ratio.
- Purchase . Ultimately you made a “purchase” decision. In so doing, you focused on what was most important to you. Naturally, you could choose only among schools that had accepted you.
- Postpurchase evaluation . The buying process didn’t end when you selected a school. It continues today, while you’re using the “product” you purchased. How many times have you rethought your decision? Are you happy with it? Would you make the same choice again?
Understanding the buying process of potential students is crucial to college administrators in developing marketing strategies to attract qualified “buyers.” They’d certainly like to know what information you found useful, which factors most influenced your decision, and how you made your final choice. They’ll also want to know whether you’re happy with your choice. This is the kind of information that colleges are seeking when they solicit feedback, both from students who chose their schools and from those who didn’t.
Influences on Buying Behavior
Did you ever buy something you knew you shouldn’t buy but just couldn’t help yourself—something you simply wanted? Maybe it was a spring-break trip to the Bahamas that you really couldn’t afford. Objectively, you may have made a bad decision, but not all decisions are made on a purely objective basis. Psychological and social influences come into play. Let’s take a closer look at each of these factors.
Psychological Influences
Under this category, we can identify at least five variables:
- Motivation . The internal process that causes you to seek certain goals.
- Perception . The way you select, organize, and interpret information.
- Learning . Knowledge gained through experience and study.
- Attitudes . Your predisposition to respond in particular ways because of learned values and beliefs.
- Personality . The collection of attributes that characterize an individual.
Social Influences
Here, we find four factors:
- Reference groups . Friends or other people with whom you identify.
- Economic or social status .
- Culture . Your set of accepted values.
It shouldn’t be surprising that marketers are keenly interested in the effect of all these influences on your buying decisions. For instance, suppose the travel agency that sold you your spring-break getaway found that you bought the package because you viewed it as a reward for studying hard and doing well academically. In that case, it might promote student summer-travel programs as rewards for a hard year’s work at school.
Key Takeaways
- A number of forces over which it has little or no control affect a company’s marketing activities.
- Taken together, they make up its external marketing environment , which includes regulatory and political activity, economic conditions, competitive forces, changes in technology, and social and cultural influences.
- Successful marketing often hinges on understanding consumer behavior —the decision process that individuals go through when purchasing or using products.
- Several psychological and social variables influence buyers’ decisions. They go through a series of steps in reaching the decision to buy a product: need recognition, information search, evaluation, purchase , and postpurchase evaluation .
- Shifts in the external marketing environment often necessitate changes in a company’s marketing plans. All companies are affected by external factors, but certain factors can have a stronger influence on particular products. Which of these five types of external factors—political/regulatory, economic, competitive, technological, social/cultural—would have the greatest impact on each of the following products: a Toll Brothers home, P&G Tide laundry detergent, Apple iPod, Pfizer heart medicine, and Gap jeans. In matching products with external factors, apply each factor only once. Be sure to explain exactly how a given factor might affect product sales.
Experts have ascribed a number of attributes to Generation Y—people born between 1976 and 2001. On a scale of 1 to 10 (with 10 being the highest), indicate the extent to which each of the following attributes applies to you:
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Exploring Business Copyright © 2016 by University of Minnesota is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License , except where otherwise noted.
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BUS602: Marketing Management
The Marketing Environment
This chapter reviews the marketing environment and outlines the aspects of the changing environmental trends that marketers must address when preparing a strategic marketing plan. Note the emphasis on the consumer and the need to uncover buying patterns and trends that may be affected by outside environmental forces and changes.
Learning Objectives
- Describe the external marketing environment in which businesses operate.
- Discuss the factors that influence consumer behavior.
By and large, managers can control the four Ps of the marketing mix: they can decide which products to offer, what prices to charge for them, how to distribute them, and how to reach target audiences. Unfortunately, there are other forces at work in the marketing world - forces over which marketers have much less control. These forces make up a company's external marketing environment , which, as you can see in Figure 9.14 "The Marketing Environment", we can divide into five sets of factors:
- Political and regulatory
- Competitive
- Technological
- Social and cultural
Figure 9.14 The Marketing Environment
These factors - and changes in them - present both threats and opportunities that require shifts in marketing plans. To spot trends and other signals that conditions may be in flux, marketers must continually monitor the environment in which their companies operate. To get a better idea of how they affect a firm's marketing activities, let's look at each of the five areas of the external environment.
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Chapter 11: The marketing Environment and marketing analysis
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Marketing has always been the most sought-after specialization in MBA programs across the world not without reason. Largely, it is as Peter Drucker rightly said decades ago "........ and business has only two functions - Marketing and Innovation. All the rest are costs". Marketing is the engine that provides the requisite stream for any organization to continue its long journey. Marketing as a Discipline encompasses several courses and synthesis of all these courses can be captured in a simple acronym - CAMP
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Home » Management Case Studies » Case Study of Euro Disney: Managing Marketing Environmental Challenges
Case Study of Euro Disney: Managing Marketing Environmental Challenges
Michael Eisner joined the Walt Disney Company as the chairman of the board in 1984, after his successes at the ABC television network and Paramount. The same year, Tokyo Disney was completing its first year of operations after five years of planning and construction, when the Walt Disney Co. entered into an agreement with Oriental Land Company in Japan. More than 10 million people visited the park that year, spending $355 million. This was $155 million more than had been expected and was partially attributed to the average expenditure per visitor being $35, rather than the estimated $21. The timing of the Tokyo Disneyland opening coincided with a rise in income and leisure time among the Japanese. Tokyo Disneyland thus became quickly profitable. Growth continued, and by 1990 more than 14 million people visited the park, a figure slightly higher than the attendance at Disneyland in California and about half the attendance at Walt Disney World in Florida. Though Disney was not a financial partner in the Tokyo venture, it was reaping the profit from its franchise (10% royalty from admission and 5% from merchandise and food sales).
The Tokyo park was in some ways a paradox. Tokyo Disneyland is nearly a replica of the two parks in the US. Signs are in English, and most food is American style. The management of the Oriental Land Company demanded this because they wanted visitors to feel they were getting the real thing and because they had noted that such franchises as McDonald’s have enormous success in Japan, as Japanese youth embraced American-style culture. Yet, a few changes were necessary, such as the addition of a Japanese restaurant. The product was readily accepted by the Japanese, and acceptance attributed by some to the enthusiastic assimilation of the Japanese to Western ways. The success of the Tokyo Disneyland led the company to consider expansion into Europe.
In 1984, a few months after his arrival at Disney, Eisner decided to create a Disney resort in Europe. In 1985, Disney announced that it had narrowed its locational choice to two countries, Spain and France. The park was scheduled to open in 1992 at either location. Since the park was estimated to provide about 40,000 permanent jobs and would draw large numbers of tourists, the two countries openly courted Disney. If Disney opted for a Spanish location, the park would have to be like the ones in the U.S, where the visitors are outside for almost all amusements. However, Disney had learned from the Tokyo experience that the cold weather does not necessarily impede attendance. But the colder climate in Paris area would require more indoor shows. Furthermore, France would require more focus on technology and historical themes.
After three years of discussions, the search culminated with the selection of a site at the heart of Europe: Marna-la-Vallee, France. Euro Disney was officially born. The total investment by 1992 was estimated at between $2.4 to 3 billion. Disney opted for a 49% stake. France was in full economic crisis and Disney was taking advantage of this crisis. In a real estate coup, the French Government sold Disney some very expensive land at a bargain price and. In spite of the economic benefits the park was expected to bring, many people in France feared that the Park would be one more step toward the replacement of the French culture with that of the US. Critics called EuroDisney “a cultural Chernobyl”.
Disney headed off the criticism by explaining in the French press that Walt Disney was of French Huguenot descent, with an original name of D’Isigny rather than Disney. Disney also agreed to make French the first language in the park, although relying heavily on visual symbols. Disney would build an attraction, Discovery Land, based on the science fiction of France’s Jules Verne; and a movie theatre featuring European history. Many concessions were made to soothe the French resistance. Disney admitted that it may have to alter its no-alcohol policy for this park, but it didn’t. The park also emphasized that Pinocchio was Italian, Cinderalla was French and Peter Pan flew in London.
The marketing campaign began in October 1991. The sales division began ambitious programs to inspire European families to mark the Euro Disney resort on their vacation agendas. The Sales division established a strong presence in all the major markets through special partnerships with leading companies in the travel industry. On April 12, 1992, Euro Disney hosted the biggest event in Disney history, the official opening of the Euro Disney resort. Looking at the future, Euro Disney had two primary objectives: to achieve profitability as quickly as possible and to better integrate Euro Disney into its European environment while reinforcing its greatest asset — Disney heritage. Disney announced plans to add a second theme park, the Disney MGM Studios-Europe, and a water park. Disney was so optimistic that it was negotiating the possibility of creation of creating a third theme park at the beginning of the new millennium.
The Park admission fee costs US $45 for an adult and $30 for a child under 11, a price about 50% higher than the corresponding Disney World price. The US Disney park’s formula in terms of inelasticity of demand did not apply and the demand fell sharply (a 15% decrease in attendance for a 10% increase in price.) Attendance figures were kept secret, but this attitude reinforced the idea that even in terms of attendance, the objectives were not reached. The financial results were not as strong as hoped and the very difficult economic environment contributed to not meeting the ambitious objectives.
As Eisner started an interview with Larry King, he quipped, “Everybody is giving us 42 reasons why we’ve made a mistake, because we have financial problems… We are not either responsible for the real estate crisis or the high French interest rate, which are dreadfully penalizing us. Not a single manager, whoever he be, could manage so many uncontrollable forces.”
Describe the importance of environmental scanning for Disney in its EuroDisney venture. How does the marketing environment affect Disney’s marketing? Single out each of these environmental variables and suggest ways for Disney to manage them.
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