Chapter 13: Marketing - McGraw-Hill Introduction to Business

Retailers Start to Close Flagship Locations

August 1, 2019

For many years, shoppers flocked to destinations like Madison Avenue in Manhattan and Chicago’s Magnificent Mile to experience the best that American retail had to offer. Home to flagship locations from Macy’s, Barneys and many others, these enormous stores acted as potent marketing tools as much as places to buy products. The rise of online shopping changed all that, however, causing multi-floor department stores to lose their appeal.

As a result, many top retailers are closing the doors on Continue reading →

Retail, Product Distribution, New York, Macy's, Marketing, E-commerce, Facility Location, Flagships

Chapter 1: Taking Risks and Making Profits, Chapter 9: Production and Operations Management, Chapter 13: Marketing, Chapter 14: Product and Price, Chapter 15: Distribution, Bonus Chapter B: Technology and New Media

Forever 21’s Granola Promotion Causes Social Media Uproar

July 30, 2019

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From free finger food at Costo to complimentary mini-sized makeup at Sephora, companies have long depended on free samples as a powerful promotional tool. But as the clothing retailer Forever 21 recently learned, this time-tested strategy can backfire when paired with the wrong type of product.

Forever 21 routinely includes sample items when shipping out orders to its customer base of young women. Last week one of those products was a free Atkins-branded lemon granola bar that encouraged customers Continue reading →

Promotions, Retail, Product Distribution, Forever 21, Marketing, Free samples, Ethics

Chapter 1: Taking Risks and Making Profits, Chapter 4: Ethics and Social Responsibility, Chapter 13: Marketing, Chapter 15: Distribution, Chapter 16: Place and Promotion

[VIDEO] The Environmental Cost of Rush Shipping

July 26, 2019

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For major online retailers like Amazon and Walmart, few matters are more important than quickly shipping products out to customers. But while free two-day shipping has largely become the norm in e-commerce, all those packages moving across the country can have a major impact on the environment. This video looks at the ecological effects of rush shipping and how retailers could seek to limit its use in the future.

Questions:

In what ways does rush shipping harm the environment? Continue reading →

Transportation, Amazon, Operations Management, Sustainability, Ethics, Product Distribution, E-commerce, Shipping, Retail

Chapter 1: Taking Risks and Making Profits, Chapter 4: Ethics and Social Responsibility, Chapter 9: Production and Operations Management, Chapter 13: Marketing, Chapter 15: Distribution, Bonus Chapter B: Technology and New Media

Photographers Take Advantage of Prime Day Pricing Error

July 19, 2019

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According to a press release from Amazon, this year’s Prime Day was the “largest shopping event in Amazon history.” Although the company didn’t release sales figures for the two-day bonanza, it claims to have sold more than 175 million items across 18 countries. Along with selling more Amazon devices than ever before, the e-commerce giant said this year’s Prime Day earned more than the past Black Friday and Cyber Monday combined.

During the course of all this widespread discounting, Continue reading →

Prime Day, Shopping Events, Retail, Pricing, Amazon, Black Friday, E-commerce

Chapter 1: Taking Risks and Making Profits, Chapter 13: Marketing, Chapter 14: Product and Price, Chapter 16: Place and Promotion, Bonus Chapter B: Technology and New Media

Netflix Loses Subscribers after Increasing Prices

July 18, 2019

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Earlier this year, Netflix raised its monthly rates by 13 to 18 percent across its various subscription plans. According to experts, the streaming video platform increased prices in order to ease investors’ fears that it was taking on too much debt. Unfortunately for Netflix’s stakeholders, however, the company recently announced that this decision contributed to a drop in U.S. subscribers for the first time since its launch 12 years ago.

During the second quarter of 2019, Netflix lost 126,000 customers. Continue reading →

Global, Entertainment, Pricing, Netflix, Streaming, Television

Chapter 1: Taking Risks and Making Profits, Chapter 3: Globalization, Chapter 13: Marketing, Bonus Chapter B: Technology and New Media

[VIDEO] Inclusive Fashion Is the Future of Runways and Retail

July 12, 2019

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In recent years consumers have started to lose interest in high-end fashion shows from major houses like Victoria’s Secret and Calvin Klein. In fact, the latter recently closed its luxury collection in order to focus on casualwear. Many designers have responded to industry changes by creating styles for all shapes and sizes to wear, not just thin models. This video looks at the designers who are answering the call from consumers for greater inclusivity in fashion.

Questions:

What Continue reading →

Marketing, Inclusivity, Ethics, Clothing, Branding, Retail, Fashion

Chapter 1: Taking Risks and Making Profits, Chapter 4: Ethics and Social Responsibility, Chapter 13: Marketing, Chapter 14: Product and Price, Chapter 16: Place and Promotion

Register Outages Cause Trouble for Target

June 21, 2019

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Last weekend, Target shoppers around the country received some unwelcome news when they reached the checkout counter. Due to an “internal technology issue,” the retailer’s registers crashed for about two hours on Saturday afternoon. Soon social media became filled with footage of long lines at Target stores as employees completed cash transactions by hand. Of course, many customers abandoned their carts and went home after they learned about the problem.

Eventually Target announced that the registers had come back online, Continue reading →

Retail, Security, Product Distribution, Credit Cards, Reputation, Operations Management, Payment systems

Chapter 1: Taking Risks and Making Profits, Chapter 9: Production and Operations Management, Chapter 13: Marketing, Chapter 15: Distribution, Bonus Chapter B: Technology and New Media

Claire’s Recalls Asbestos-Contaminated Makeup

June 13, 2019

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The last few years have not been good for Claire’s, the mall-based retailer known for its adolescent-focused cosmetics and accessories. In early 2018 the company filed for Chapter 11 bankruptcy protection after it accrued more than $2 billion in debt. Although Claire’s eventually emerged from bankruptcy, the end of the year also brought an unwelcome announcement from the Food and Drug Administration (FDA). According to the federal agency, Claire’s had been under investigation since 2017 for “high levels of asbestos” Continue reading →

Branding, Retail, Product Distribution, Crisis management, Ethics, Recalls, Claire’s

Chapter 1: Taking Risks and Making Profits, Chapter 4: Ethics and Social Responsibility, Chapter 6: Entrepreneurship, Chapter 9: Production and Operations Management, Chapter 13: Marketing, Chapter 15: Distribution

BroadwayHD Aims to Become Netflix for Theater

June 11, 2019

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On Sunday night CBS aired the 73rd Annual Tony Awards, one of the most important evenings in American theater. But while this prestigious ceremony has been compared to Broadway’s version of the Oscars, the Tonys don’t attract nearly as large of an audience as Hollywood’s big night. For instance, 30 million people watched the Academy Awards in February compared to just 6 million viewers for Sunday’s show. Although Broadway continues to enjoy strong box office sales, many theaters have had Continue reading →

Product Development, Entertainment, Netflix, Streaming, Entrepreneurship, Product Distribution, Broadway, Theater

Chapter 1: Taking Risks and Making Profits, Chapter 6: Entrepreneurship, Chapter 13: Marketing, Chapter 14: Product and Price, Chapter 15: Distribution, Bonus Chapter B: Technology and New Media

Celebrity Chefs Struggle to Keep Restaurants Open

June 6, 2019

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For more than a decade, the British chef Jamie Oliver has been world famous for his global empire of restaurants and campaigns against junk food. But while he remains committed to using his platform to promote healthy eating, his name doesn’t appear to hold the same branding power as it once did. A few weeks ago, the celebrity chef announced that 22 of his 25 U.K. eateries would close after the Jamie Oliver Restaurant Group filed for bankruptcy protection. Although Continue reading →

Promotions, Marketing, Food & Drink, Entrepreneurship, Celebrity chefs, Product Development, Branding

Chapter 1: Taking Risks and Making Profits, Chapter 6: Entrepreneurship, Chapter 13: Marketing, Chapter 14: Product and Price, Chapter 15: Distribution, Chapter 16: Place and Promotion