Chapter 16: Place and Promotion - McGraw-Hill Introduction to Business

Direct-to-Consumer Company Brandless Closes Down

February 13, 2020

In 2017, the home goods company Brandless launched with a novel way to take on Amazon as well as other big-box retailers. The direct-to-consumer startup sold high-quality, organic versions of everything from toilet paper to beauty products in simple, no-frills packaging. Brandless claimed that this eliminated the so-called “BrandTax” levied by many companies, which could account for as much as 40 percent of the product’s actual cost. With little money spent on traditional marketing, Brandless initially charged just $3 for Continue reading →

[VIDEO] How Ads Follow You Around the Internet

February 7, 2020

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Targeted advertising has become the economic engine of the Internet for big companies like Facebook and Google that collect all sorts of data about their users. This video details how tech giants track people online in order to gather information for advertisers, a widespread practice that is nevertheless hugely controversial.

Questions:

How has the use of cookies changed from the early days of the Internet to today?
Do you think legislators should regulate how companies track people online for Continue reading →

Promotions, Advertising, Marketing, Facebook, Ethics, Security, Silicon Valley, Google, Privacy, Targeted Advertising

Chapter 1: Taking Risks and Making Profits, Chapter 4: Ethics and Social Responsibility, Chapter 13: Marketing, Chapter 16: Place and Promotion, Bonus Chapter B: Technology and New Media, Videos

Americans Spent Big Online during the 2019 Holiday Season

January 7, 2020

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The holiday season is the most important time of the year by far for the nation’s retailers, with many earning as much as 40 percent of their annual sales during that period. Fortunately for them, 2019’s holiday sales increased by 3.4 percent compared to the previous year. Retailers are especially relieved since Thanksgiving arrived six days later than it did in 2018, which took away crucial time that companies could have used to drive sales.

To make up for Continue reading →

Shipping, Holidays, Promotions, Retail, Supply chains, Marketing, Transportation, Product Distribution, E-commerce

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, Chapter 16: Place and Promotion, Bonus Chapter B: Technology and New Media

Chewing Gum Brands Try to Turn Around Years of Bad Sales

December 5, 2019

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Although gum companies like Wrigley have been in business for more than a century, today’s consumers aren’t nearly as interested in chewing gum as past generations. From 2010 to 2018, gum sales dropped by 23 percent in the U.S. and 4 percent globally. “Chewing gum is becoming less socially acceptable,” said Mondelez Foods CEO Dirk Van de Put. As the maker of brands like Trident and Dentyne, Mondelez and its competitor Wrigley are trying to convince consumers that gum can Continue reading →

Product Development, Branding, Promotions, Regulation, Health, Marketing, FDA, Gum

Chapter 1: Taking Risks and Making Profits, Chapter 13: Marketing, Chapter 14: Product and Price, Chapter 16: Place and Promotion, Bonus Chapter A: Business Law

Fashion Brands Start Selling Virtual Clothing

November 22, 2019

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Yesterday, we looked at how video game companies earn billions of dollars annually by selling virtual products to an ever-growing market. Inspired by the success of this unusual industry, some clothing companies have started selling digital outfits that don’t exist in the real world. For instance, the fashion label The Fabricant recently sold a virtual dress for $9,500 to the wife of a San Francisco tech executive. Although she cannot actually put on her expensive new outfit, she can Photoshop Continue reading →

Promotions, Fashion, Product Distribution, Virtual Goods, Scarcity, Marketing, Global, Clothing, Entrepreneurship, Product Development

Chapter 1: Taking Risks and Making Profits, Chapter 2: Economics, Chapter 3: Globalization, Chapter 6: Entrepreneurship, Chapter 13: Marketing, Chapter 14: Product and Price, Chapter 15: Distribution, Chapter 16: Place and Promotion, Bonus Chapter B: Technology and New Media

Americans Spend $490 Million on Pet Costumes for Halloween

October 31, 2019

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For this year’s Halloween festivities, Americans will spend an estimated $8.8 billion on items like candy, decorations, and costumes designed for all walks of life. Along with shelling out $3.2 billion on outfits meant for kids and adults, consumers will also spend $490 million on costumes for their pets. According to a recent survey, 51 percent of dog owners plan to dress up their pups for the holiday, spending an average of about $20.

Retail experts say the popularity Continue reading →

Retail, Halloween, Seasonal, Marketing, Social Media

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

Deepening Discounts Cut into Retailers’ Profits

October 22, 2019

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The last couple of years have not been kind to brick-and-mortar retailers: since 2017 more than 50 companies have gone bankrupt and 21,000 locations have closed across the country. Instead of heading out to stores, many modern consumers now depend on Amazon for their shopping needs. Along with providing convenience, the e-commerce giant also offers everyday low prices as well as major sales events like Prime Day. In response, many traditional retailers have started offering deep discounts in an effort Continue reading →

Promotions, Retail, Pricing, Amazon, Marketing, Product Distribution, E-commerce, Markdowns

Chapter 1: Taking Risks and Making Profits, Chapter 13: Marketing, Chapter 14: Product and Price, Chapter 15: Distribution, Chapter 16: Place and Promotion, Bonus Chapter B: Technology and New Media

Apple Gets Rid of iTunes in Latest Computer Update

October 8, 2019

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When Apple launched the iTunes store in 2003, the music industry was not in a good state. Rampant online piracy sent CD sales plummeting and caused many to wonder whether record companies could compete against the freedom of the Internet. Fortunately for the industry, the iTunes strategy of selling individual songs for just 99 cents made buying digital music mainstream and limited the reach of piracy. The app also drove sales of the iPod, which was Apple’s signature product at Continue reading →

Product Distribution, Apple, Spotify, iTunes, Product Development, Entertainment, Streaming, Music

Chapter 1: Taking Risks and Making Profits, Chapter 13: Marketing, Chapter 14: Product and Price, Chapter 15: Distribution, Chapter 16: Place and Promotion, Bonus Chapter B: Technology and New Media

Popeyes Sells Out of Blockbuster Chicken Sandwich

August 29, 2019

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On August 12, Popeyes announced that it was adding a new chicken sandwich to menus across the nation. The first of its kind at the fast food chain, Popeyes said this was its biggest product launch in more than 30 years. The sandwich soon became a hot topic on social media and grabbed the attention of more than just hungry customers. In the days following the launch, Chick-fil-A started a social media feud with Popeyes over which chain had the Continue reading →

Study Shows that Instagram Users Distrust Traditional Ads

August 22, 2019

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With more than 1 billion photo-obsessed users, Instagram has become a trusted destination for marketers looking to get their products noticed. According to a recent study, though, people on the picture-sharing platform don’t trust ads that look like “ads.” Instead, they prefer promotional spots that seem like something that their friends would post. For instance, a brand like L’Oreal would likely get more attention with a selfie of an influencer applying makeup rather than a glamorous, magazine-like ad.

In Continue reading →

Instagram, Marketing, Influencers, Social Media, Branding, Promotions, Advertising

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