Chapter 1: Taking Risks and Making Profits - McGraw-Hill Introduction to Business

Medical Histories Turned into Marketing Data

December 16, 2014

Americans have a tendency to over share information through social media, which can lead to some off-putting online revelations. However, there’s one group of people out there who doesn’t mind reading a detailed status update about your cold symptoms: advertisers. In today’s increasingly personalized marketing landscape, companies are desperate for data about their customers. Along with standard stats like age and income, consumers’ medical histories have now become tools for target marketing.

While data miners can’t legally access confidential medical Continue reading →

Marketing, Ethics, Data Mining, Health

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

Accounting for Time in Online Ad Pricing

December 15, 2014

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In the world of online advertising, the “click” is king. That’s because nearly every major website bases its ad rates on the number of hits it receives over a specific span of time. The idea is to attract potential clients by emphasizing how much traffic the website receives. But just because clicks act as currency in mobile marketing doesn’t mean that they’re reliable indicators of an ad’s effectiveness. After all, a person could have spent ten seconds or ten minutes Continue reading →

Innovation, Advertising, Data Mining, Marketing, Pricing

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

Spokesbots Start Connecting with Consumers

December 13, 2014

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In past posts, we’ve taken a look at the rise of mobile ads and how they were starting to beat out older forms of media for marketing dollars. Despite this growing dominance, however, the overall effectiveness of mobile ads remains suspect. For many they’re little more than a nuisance, something along the margins of the screen that can be easily ignored. Others see them as an intrusion on their privacy given the way that many mobile ads target certain Continue reading →

Branding, Innovation, Automation, Kik, Marketing, Social Media

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

Doing Business with a Proactive Legal Strategy

December 6, 2014

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The sheer size of today’s corporations virtually ensures that companies will have to wrangle with lots of legal red tape. Most top executives spend as little time as possible dealing with law, choosing either to avoid it or grudgingly comply with the restrictions they face. In the former case, a company may try to move some operations into another country to dodge certain taxes, while in the latter executives simply do the bare minimum necessary to make it through the Continue reading →

Regulation, Disney, Legal, Management, Copyright

Chapter 1: Taking Risks and Making Profits, Chapter 7: Management & Leadership, Chapter 20: Money and Financial Institutions, Bonus Chapter A: Business Law

Home Depot’s Massive Security Slip Up

December 2, 2014

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With companies both large and small becoming increasingly dependent on technology, it’s important for these firms to make sure that their information is secure. But businesses need to do more than simply install anti-hacking software and hope their defenses hold. For instance, earlier this year Home Depot faced two small security breaches before getting hit with a company-wide hack that made national news. Following the minor incidents, security contractors urged executives to implement a few unused features in the anti-hacking Continue reading →

Innovation, Security, Home Depot, Management, Ethics

Chapter 1: Taking Risks and Making Profits, Chapter 4: Ethics and Social Responsibility, Chapter 10: Motivation, Chapter 11: Human Resource Management, Bonus Chapter B: Technology and New Media

Half Prices Books Thrives Against the Odds

November 25, 2014

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In a world of Amazon and e-readers, there’s just not much room for independent bookstores. Over the past five years, mom and pop bookshops have seen revenues decrease by an average of 3.2 percent annually. But not every company in this discouraging industry is feeling the squeeze. In fact, the Dallas-based retailer Half Price Books is growing at a rate of five stores per year. Revenues rose from $50 million in 1995 to $240 million in 2013, remarkably avoiding Continue reading →

Retail, Distribution, Resale, Half Price Books, Marketing, Entrepreneurship

Chapter 1: Taking Risks and Making Profits, Chapter 7: Management & Leadership, Chapter 14: Product and Price, Chapter 15: Distribution

Saving Money with Pay-As-You-Drive Insurance

November 23, 2014

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From making repairs to keeping the gas tank filled, owning a car is a pricey enterprise for many people. But of all the expenses required for auto ownership, perhaps none is more frustrating than paying for insurance. Not only is the service expensive, it’s also rarely needed until something goes seriously wrong with your car. Matters are even worse for people like Greg Muender, a San Diego tech entrepreneur who works from home. Even though he clocks in as few Continue reading →

Product Development, Innovation, Transportation, Startups, Insurance, Entrepreneurship, Metromile

Chapter 1: Taking Risks and Making Profits, Chapter 5: Forms of Business Ownership, Chapter 6: Entrepreneurship, Chapter 14: Product and Price, Chapter 15: Distribution

Zippo Lighters Burning Brighter Than Ever

November 15, 2014

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Thanks to tough legislation and widespread public education, the number of U.S. smokers has declined 50 percent since the habit’s heyday in the 1950s. Although this significant customer drop-off has hurt many tobacco companies, business has been booming over the last few years for the iconic lighter brand Zippo. The Bradford, PA-based company earned $200 million in sales last year, a record for the lighter maker. What’s more, Zippo’s expanded global presence and diversified product line has increased sales by Continue reading →

Product Development, Licensing, Branding, Product Lines, Zippo

Chapter 1: Taking Risks and Making Profits, Chapter 6: Entrepreneurship, Chapter 7: Management & Leadership, Chapter 13: Marketing, Chapter 14: Product and Price, Chapter 15: Distribution, Chapter 16: Place and Promotion

Capturing Value: Innovation’s Vital Second Step

November 13, 2014

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When it comes to innovation in business, creating a viable and valuable product is just the first step. After all, the arrival of the portable MP3 player made many companies stand up and take notice of this revolutionary device. One of those firms was Apple, who soon came to dominate the market with the iPod. Although the signature MP3 player was released later than its competitors, the product’s dependability and stylish design quickly allowed it to capture the bulk Continue reading →

Innovation, Ethics, Value, Corporate Social Responsibility, Lifestraw, Product Development

Chapter 1: Taking Risks and Making Profits, Chapter 3: Globalization, Chapter 4: Ethics and Social Responsibility, Chapter 13: Marketing, Chapter 14: Product and Price, Chapter 15: Distribution, Chapter 16: Place and Promotion, Bonus Chapter B: Technology and New Media

Mobile Advertising Overtakes Print and Radio

November 6, 2014

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By the end of the year, mobile advertising spending will eclipse the amount of money that companies spend on old media like radio and newspapers. This historic shift shows just how far smartphones and tablets have come after less than a decade of existence. In contrast, newspapers have been in circulation for centuries while radio has been a media fixture for nearly 100 years.

Analysts estimate that companies will invest nearly $18 billion in mobile ads this year while newspapers Continue reading →

Marketing, Social Media, Innovation, Advertising, Smartphones, Old Media

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