Knowledge@Wharton -- Marketing

Company Stores vs. Independent Retailers: Clash or Peaceful Coexistence?

Wed, 28 Oct 2009 17:19:29 EST

Microsoft dipped its toe into retail waters this month by opening its first company store as a way to showcase the latest and greatest in PCs, Zunes and Xbox consoles. But computer companies aren't the only manufacturers moving into the retail space, says Wharton marketing professor David Bell. Whether it's handbags from Coach, shoes from Nike or suits from Ralph Lauren, consumers increasingly have the choice to buy products either at stores operated by manufacturers or from independent retailers. Bell recently co-authored a research paper looking into competition between company stores and independent retailers in the same market.

Will the Future of Advertising Be a Blend of Old and New Media?

Wed, 30 Sep 2009 17:48:04 EST

Marketing executives commonly complain that old forms of advertising are dead -- but do emerging forms such as advertising through social networks deliver better results? Or would marketers be better off combining old and new media in a portfolio-driven approach that delivers strong results across different consumer segments? Those questions and more are being researched as part of the Future of Advertising Project at Wharton's SEI Center for Advanced Studies. The project was in the spotlight during Advertising Week in September with the launch of a new video channel called Fast.Forward in collaboration with Google.

Time vs. Money: Analyzing Which One Rules Consumer Choices

Wed, 16 Sep 2009 16:45:37 EST

Pick up a magazine or turn on the TV and prepare for a flood of marketing messages about how you spend your time and money. Whether the product is beer or banking, Rolex watches or Ziploc bags, advertisers routinely invoke financial or time-related themes in their ad campaigns. Yet little is known about how consumers' attitudes and behaviors are influenced by a product's association with time or money, according to Wharton marketing professor Cassie Mogilner. New research by Mogilner and a colleague from Stanford University sheds light on how companies should use these concepts when promoting their products.

The iPhone in China: Will Apple Connect with the World's Biggest Mobile Market?

Wed, 16 Sep 2009 16:45:37 EST

Global launches can be rocky, as Apple knows well. Last year, the company introduced its iPhone in India, but instead of the throngs of consumers seen at launch events in the U.S., the journalists assigned to cover the rollout reportedly outnumbered the customers. According to experts, the problems included a lack of marketing and a price tag set too high for Indian consumers. Now, as Apple prepares for an October launch of the iPhone in China in cooperation with service provider China Unicom, many are wondering if it will face similar hang-ups in the world's largest cell phone market.

The Crowded, Caffeinated Soft Drink Sector: Who Will Bubble Up to the Top?

Wed, 02 Sep 2009 16:37:02 EST

The ritual is now a part of big-time, as well as small-town, football games. As the clock winds down, players grab an orange vat with a green label and douse the winning coach. This "Gatorade shower" has made the sports drink one of the world's best-known brands and helped pave the way for other niche products and beverage categories that now compete with traditional carbonated soft drinks. What marketing challenges do soft drink companies face, especially given health concerns and the recessionary economy? Wharton faculty and other experts weigh in.

Michael Steinhardt Discusses Israel's Place in the World

Thu, 13 Aug 2009 12:15:40 EST

Following a high-profile career in finance in which he became one of the first well-known hedge fund managers, Michael Steinhardt began the Taglit-Birthright Israel program, a philanthropic enterprise which has provided free 10-day trips to Israel for some 220,000 Jewish youth to learn more about their heritage. Steinhardt spoke with Knowledge@Wharton about how the program helps to improve the country's image and the challenges of what he calls a deteriorating educational system in Israel -- marked by a brain drain in higher education. Steinhardt also discussed the country's culture of business innovation and how deep democratic roots can sometimes slow progress.

Israel's Image Problem and What to Do about It

Thu, 13 Aug 2009 12:15:36 EST

In its 61-year history as a modern nation state, Israel has become synonymous with conflict and controversy, creating friction with hostile neighbors and, at times, setting itself up as a target for international reproach. But is Israel getting short shrift? Have Israelis been letting themselves down by failing to showcase their strengths? In an interview with Knowledge@Wharton, Wharton marketing professor David Reibstein explores the consequences of Israel's tarnished reputation, not only for the country in general, but also for Israel's business community, while also considering whether using better public relations and marketing tactics could improve Israel's image.

A New Kind of Campaign: Changing the World's Perception of Doing Business with Israel

Thu, 13 Aug 2009 12:15:22 EST

Anyone who follows current events sees images of Israel that suggest a country defined by conflict and violence. Yet Israel has also made substantial contributions to the global marketplace in such industries as technology and medicine. The challenge for Israel going forward is to make the world more aware of its hospitable business environment. Marketing professor Yoram (Jerry) Wind and David Pottruck, former CEO of Charles Schwab & Co., and now chairman and CEO of Red Eagle Ventures, talked with Knowledge@Wharton about steps Israel can take to improve its image.

In a Recessionary Summer, Hollywood's Fondness for the Familiar Only Grows

Wed, 05 Aug 2009 16:41:52 EST

Why is Hollywood in love with tried-and-true sequels and established franchises rather than producing original scripts? According to Wharton faculty, the industry's embrace of the sequel is an attempt to minimize its risk during an uncertain time, when the motion picture business finds its usual sources of funding and revenues under pressure from the recession. "If studio [executives] launch a movie where ... the merchandizing channels already exist, they are less likely to walk into a big box office disaster which could bury them financially when they can least afford it," says one expert.

The Long-term Downside of Overnight Success

Wed, 05 Aug 2009 16:41:52 EST

Marketers may dream of coming up with a product that skyrockets in popularity as soon as it is introduced to the public. New Wharton research, however, indicates that products which catch on too quickly may end up being less successful overall. "We often see products, ideas and behaviors ... spread like wildfire," says marketing professor Jonah Berger, co-author of the research paper. "But we know less about why once-popular things become unpopular."

Bing Gives Microsoft a Boost, but Can It Compete with Google?

Wed, 05 Aug 2009 16:41:52 EST

Early reports show that Microsoft's new search engine, Bing, has managed to draw more users than its predecessor, Live Search. According to Wharton faculty, however, while Microsoft's campaign to promote Bing has been successful so far, it is unclear whether its well-funded effort will make significant inroads in a market dominated by Google. On the other hand, they believe the campaign helped pressure Yahoo into an important partnership agreement after months of fitful negotiations.

Marketing for Financial Advisors: Harness Data, Drill Deep into a Niche -- and Thrive

Wed, 22 Jul 2009 15:41:58 EST

Financial advisors face difficult challenges given the global economic and financial crisis. Yet advisors can not only survive the downturn, but also thrive during it, according to the authors of a new book, Marketing for Financial Advisors: Build Your Business, Bring in Clients, and Establish Your Brand. Indeed, Wharton marketing professors Eric T. Bradlow and Patti Williams, and Keith Niedermeier, director of Wharton's undergraduate marketing program, suggest that the struggling economy provides an opportunity to "attack" and gain market share. In an interview with Knowledge@Wharton, the three authors discuss how financial advisors can build their business -- even in a down economy -- by adopting data-driven and niche marketing principles.

'Walk the Market': Tapping into Africa's 900 Million Consumers

Wed, 15 Jul 2009 16:36:05 EST

When multinational companies want to tap into the massive pent-up consumer demand in emerging markets, the first countries that they usually think of are China and India. But what about Africa, asks Vijay Mahajan, author of Africa Rising: How 900 Million Consumers Offer More Than You Think (Wharton School Publishing). Though often overlooked in global corporate growth strategies, Africa as a whole has enough consumer power to give China and India a run for their money, he argues. Mahajan, a marketing professor at the University of Texas in Austin and co-author of an earlier book titled, The 86% Solution: How to Succeed in the Biggest Marketing Opportunity of the 21^st Century (Wharton School Publishing), talked with Knowledge@Wharton about Africa Rising.

Getting to 'Wow': Consumers Describe What Makes a Great Shopping Experience

Wed, 08 Jul 2009 16:18:09 EST

New Wharton research finds that 35% of shoppers have had an extraordinary -- or "wow" -- retail experience in the past six months. But in order to hit that mark, retailers must deliver on as many as 10 different elements of the shopping experience simultaneously. Among the strongest drivers of customer loyalty: brand experience, courteous employees and knowledgeable salespeople. Expediting the shopping process ranked high, too.

The New High-end Consumer: 'Please Put My Bottega Veneta Wallet in a Plain Bag'

Wed, 27 May 2009 17:04:13 EST

As the global recession drags on, retailers of luxury goods debate price cuts and aim to prove their worth with impeccable service. In a recent Wharton-hosted panel discussion about the future of tony brands, top luxury marketers also noted a new sense of discretion in customers who once bought extravagance with pride. Instead of that coveted shopping bag with a fancy brand name, some are asking for something a little less showy.

How Casinos Can Find and Target Their Favorite Customers: The Biggest Losers

Wed, 13 May 2009 16:53:27 EST

Casino owners want to do a better job of identifying and attracting customers who lose the most money. Three researchers, including two Wharton faculty, offer a model to do just that. Their findings could be applicable to other areas as well, including hotel management, retail sales and the car rental business.

Advertising Yourself: Building a Personal Brand through Social Networks

Wed, 15 Apr 2009 15:21:37 EST

With the economy mired in a recession, even some full-time employees are joining independent consultants, writers and musicians in learning how to use online social networking tools such as Facebook and Twitter to increase their contacts and tap into possible customers or clients. Indeed, according to Wharton experts and others, developing a personal brand can be as important for a financial advisor as for a rock musician.

Best Buy vs. Wal-Mart: Is There Room for Both, and Others?

Wed, 01 Apr 2009 17:13:39 EST

With the demise of electronics retailer Circuit City in March, Best Buy and Wal-Mart Stores are ramping up their struggle to capture added share of the consumer electronics market. Best Buy is positioning itself as the provider of quality service and sales help; Wal-Mart is using its dominance across all retail categories to position itself as the low-price option in consumer electronics. Wharton faculty and industry analysts say instead of fighting to the death, both stores can coexist if they follow clearly defined strategies focusing on service and price.

Backlash: How Early Adopters React When the Mass Market Embraces a New Brand

Wed, 18 Mar 2009 17:02:42 EST

A well-established principle of product development holds that a small group of early adopters can spur mass-market acceptance of a new product. What is less well understood is how those early adopters react when that product or its brand is accepted by the mass market. As Wharton marketing professors David Reibstein and John Zhang explain in this video, the company could experience a backlash as early adopters move on to other new products. A case in point: Porsche saw a decline in sports car sales after it entered the SUV mass market. Research by Reibstein and Zhang discusses reasons for the backlash and suggests a strategy for dealing with it.

Time for a Data Diet? Deciding What Customer Information to Keep -- and What to Toss

Wed, 18 Mar 2009 16:34:51 EST

Heartland Payment Systems, a credit card processor, may have had up to 100 million records exposed to malicious hackers. Payment processors CheckFree and RBS Worldpay, and employment site Monster.com have all reported data breaches in recent months, as have universities and government agencies. Experts at Wharton say that personal data is increasingly a liability for companies, and suggest that part of the solution may be minimizing the customer information these companies keep.