Leonard Lodish - Faculty Research in Knowledge@Wharton

The Shopper of Tomorrow: Trading Down

Wed, 18 Feb 2009 17:51:20 EST

Attention Shoppers: We no longer have the following items -- "a sense of entitlement," "conspicuous consumption" and "a golden period of luxury." At least that is the word from Wharton faculty and other experts who point to a new logic that is defining not just what U.S. consumers buy, but how they view the shopping experience.

When the Going Gets Tough, the Tough Don't Skimp on Their Ad Budgets

Wed, 26 Nov 2008 12:18:24 EST

With corporate managers under enormous pressure to control costs and maintain liquidity in the current credit crisis, advertising budgets often appear to be a dispensable luxury in the struggle to survive. According to Wharton faculty and marketing experts, that attitude can result in short-term gains, but long-term trouble.

A Precarious Road: How Retailers Can Navigate Inflation's Hazards

Wed, 06 Aug 2008 17:31:38 EST

Retailers are in a tough situation, locked between rising product costs and a limited ability to raise their prices. Even cost-savvy market leaders such as Costco are having a difficult time. But Wharton faculty say that handled carefully, the current inflationary period may actually be a business opportunity for some companies. The key: Forgetting some of the old rules of retailing.

The Hard Sell: How to Market Products That Are No Longer Popular

Wed, 30 Apr 2008 17:36:16 EST

Condos in Miami, traditional music stores, gas-guzzling cars, pharmaceuticals that get unfavorable press, foods made with trans fats: All marketers, from time to time, confront products that, for whatever reason, become difficult to sell. What strategies should companies follow to reposition their products in ways that might attract new audiences, or at least retain existing ones? One answer: segmenting. "There are so many different kinds of customers out there. You just need to find them," says one Wharton expert.

'If Brands Are Built Over Years, Why Are They Managed Over Quarters?'

Wed, 22 Aug 2007 13:17:32 EST

Wharton marketing professor Leonard Lodish admits he is somewhat to blame for the erosion in brand pricing power that has hit many consumer-goods companies -- but not entirely to blame. In 1993, as store-level scanning data started to become widely available, Lodish coauthored an article outlining its power to gauge the effect of price promotions on revenue. But he also warned that these tools were not the only determinant of brand power. Now, in a new paper, Lodish and co-author Carl F. Mela show how widespread adoption of easy-to-harness, short-term measures has altered consumer behavior and made it harder for brand managers to compete.

Robbing the Cradle? If Marketers Get Their Way, That Bundle of Joy Can Cost a Bundle

Wed, 25 Jul 2007 14:40:29 EST

Just a decade ago, a company called Baby Einstein helped launch a new line of educational videos and toys that many parents believed would put their toddlers in the fast lane to success. The company was soon joined by others that promoted educational and entertainment products for babies and the under-three-year-old set, including The Baby Prodigy Company and Brainy Baby. But recently some child advocacy groups -- and the author of a new book -- are warning parents to rethink the products and the messages behind these campaigns.

Making the Most of Every Marketing Dollar

Wed, 11 Jul 2007 10:16:33 EST

In Marketing That Works: How Entrepreneurial Marketing Can Add Sustainable Value to Any Sized Company (Wharton School Publishing), the focus is on optimizing investments in every aspect of marketing, whether it's targeting the right customer, delivering added value or generating better product ideas. Authors Leonard M. Lodish, Howard L. Morgan and Shellye Archambeau offer tools, tactics and strategies that companies can use to differentiate themselves in today's marketplace. As the authors note, "Marketing, more than technology, is most often the reason for the success or failure of new ventures or new initiatives" in mature corporations.

New Products (Like the iPhone): Announce Early or Go for the Surprise Rollout?

Wed, 13 Jun 2007 14:33:58 EST

When it comes to rolling out new goods and services, companies tend to choose one of two strategies as a way of generating interest in their products, whether it's Apple's iPhone or Microsoft's Surface Computing effort. One is pre-announcing the product to give customers, partners and even competitors advance notice of what's to come. The second approach is the surprise unveiling, where a company hopes to make a big splash by giving few advance hints about an upcoming release. Which approach is best? It depends -- on the product, the company and its position in the market, say experts at Wharton.

Chief Receptionist Officer? Title Inflation Hits the C-Suite

Wed, 30 May 2007 15:38:15 EST

We're all familiar with titles like chief executive officer, chief financial officer and chief operating officer. We have even grown used to chief technology officer, chief marketing officer and chief diversity officer. But what about chief talent officer, chief cultural officer, chief innovation officer, chief privacy officer, chief apology officer and chief geek, to name just some of the more contemporary titles in today's companies? On the surface, this looks like title inflation -- an overabundance of C-level jobs that cheapen the prestige that used to go along with promotions. Yet according to several Wharton faculty members, there is more to this story than inflated egos.

Online Companies Want a Piece of Old-style Media Business

Wed, 29 Nov 2006 15:45:38 EST

After conquering the advertising frontier in cyberspace, Google, Yahoo and eBay are now turning to traditional media for future growth by brokering ad sales for offline media like radio, television and print. The Internet players' foray into offline advertising could drive down rates, but advertisers and media companies may not completely abandon the current system of relationship-based sales for Internet auctions, according to Wharton faculty and industry executives.

What's Next for Netflix?

Wed, 01 Nov 2006 15:04:42 EST

Ever since Netflix launched its online video rental service in 1999, conventional wisdom has suggested that the clock was ticking on its business model. First, there were worries that Blockbuster would squash Netflix. Then it was Wal-Mart's DVD rental service, which Netflix absorbed in a partnership arrangement last year. Today, Netflix is under fire from movie download services offered by powerhouses such as Amazon.com and Apple. Looking ahead, what kind of sequel is likely for Netflix?

MySpace, Facebook and Other Social Networking Sites: Hot Today, Gone Tomorrow?

Wed, 03 May 2006 15:07:25 EST

Popular social network sites, including MySpace and Facebook, are changing the human fabric of the Internet and have the potential to pay off big for investors, but -- given their youthful user base -- they are unusually vulnerable to the next new fad. As quickly as users flock to one trendy Internet site, they can just as quickly move on to another with no advance warning, according to Wharton faculty and Internet analysts, who offer some ideas on how these new sites can both increase user loyalty and generate revenues.

Talking Chimps, Subservient Chickens And Others Blend Entertainment and Advertising

Wed, 05 Apr 2006 17:06:25 EST

A talking chimp arriving in e-mail inboxes speaks in its sender's voice through a telephone connection or recites a pre-recorded joke for the boss. Burger King's ad campaign offers a "subservient chicken" site where viewers can type in commands to a person in a chicken suit with red garters. JibJab is developing a new site called JokeBox, where consumers and corporations can post and share funny videos or jokes online. These are among the latest viral marketing campaigns that blend advertisement and interactive entertainment across informal consumer networks. The convergence may be inevitable, say Wharton faculty and others, but it remains unclear whether such an approach is sustainable and measurable, and whether it will actually generate new business.

The $2.4 Million Question: What is the ROI for Super Bowl Ads?

Wed, 23 Feb 2005 16:12:25 EST

On the Monday following the Super Bowl, players and coaches are not the only ones scrutinizing the game highlights. With much at stake, advertisers and their ad agencies also play Monday morning quarterback, scanning popularity polls, buzz meters, and Internet blogs to determine the success or failure of their super-expensive 30-second spots. In other words, was the $2.4 million companies spent on each ad worth it? And who wins the coveted "water cooler" contest -- the groundswell that in years past has made the "wazzup" guys and Monster.com household names.

Pricing and Positioning for Entrepreneurial Marketers

Wed, 30 Mar 2005 10:15:05 EST

According to Wharton marketing professor Leonard M. Lodish, "positioning and pricing are the most important entrepreneurial marketing decisions that you can make ... Before you go out and raise a lot of money, before you invest in research and development, before you start spending serious money, you must find out if there is a demand for your product and whether or not you can price it so you can make money." It was back to school for participants at the Wharton Marketing Conference who turned out to hear Lodish's primer on how to combine entrepreneurial aspirations with savvy marketing.

Silicon Valley's Resurgence: Is It for Real?

Wed, 11 Feb 2004 15:44:09 EST

A string of Silicon Valley technology companies recently reported better than expected fourth-quarter earnings. Many tech shares are trading at 52-week highs. Venture capitalists are reading business plans. And the highly anticipated initial public offering of search-engine Google is raising hopes that riches will once more rush into Northern California . How deep is the recovery and what would it take to derail it?

The Super Bowl�s Super-expensive Advertising: Does It Work?

Wed, 15 Jan 2003 00:00:00 EST

For the advertising industry and millions of television viewers, the upcoming Super Bowl, to be broadcast Jan. 26 from San Diego, will be a string of entertaining commercials interrupted from time to time by a football game. More than 40 million people are expected to tune in, which means an opportunity to watch 60 ads spread over approximately three hours. But how effective are these commercials, given their supersize cost, and which companies benefit most from the exposure? Knowledge@Wharton offers some answers.

Of Mice and Men: How An Entrepreneurial Tale Became a Book

Wed, 27 Feb 2002 00:00:00 EST

Kyle Harrison came up with the concept of a computer mouse in the shape of a golf driver while sitting in a Dallas bar one day in 1995. The idea later became part of a marketing class at Wharton and then an actual product sold in high-end catalogues and golf course pro shops. Harrison and partner John Lusk came back to Wharton to talk about the experience, and the book it has spawned.

Making the Case for Outside Sales Reps

Wed, 30 Jan 2002 00:00:00 EST

During the economic downturn that most of corporate America experienced in 2001, the following companies had something in common: Intel, Texas Instruments, Cirrus Logic and Hunt Wesson. What tied them together was their decision last year to go from a direct (in-house) sales force to a contract, or outside, sales agency for some or all of their major product lines. Marketing professors Erin Anderson at INSEAD and Len Lodish at Wharton say that outside sales agencies, if properly managed, can benefit companies regardless of the economic climate.

Corporate Sponsorships of Stadiums and Other Institutions Don�t Always Pay Off

Wed, 09 May 2001 00:00:00 EST

In today�s tight economy, a corporate sponsorship strategy may satisfy the funding needs of stadiums, museums or medical institutions while also delivering brand recognition to the corporations. Then again, it may not, especially if the sponsors haven�t properly researched the deal. One potential problem: ego gratification.

How Good, or Bad, Marketing Decisions Can Make, or Break, a Company

Wed, 09 May 2001 00:00:00 EST

Approximately 60% of new ventures fail because of bad marketing decisions, according to Wharton professor Leonard Lodish, author of a new book entitled Entrepreneurial Marketing. The book explores the critical role marketing decisions � on everything from brand building and positioning to advertising and pricing - play in a company�s success. As Lodish says: �There are some business people who intuitively understanding marketing, but there are a lot who do not.�

Technology is Changing the Advertising Business

Wed, 31 Jan 2001 16:24:09 EST

With access to customer information that is easy to collect over the Internet and more sophisticated technology, companies are customizing their ads toward specific audiences, and even zapping ads to cell phones and Palm pilots. This will have serious implications for marketing and brand building, according to Wharton professors and industry experts.

New Strategies for Success

Fri, 17 Sep 1999 10:05:12 EST

Today�s business environment is changing so fast that companies are being forced as never before to rethink their core marketing strategies. In the previous edition of Knowledge@Wharton we examined the forces changing the fundamentals of marketing as discussed in Mastering Marketing, a book containing the views of more than 50 marketing strategists from the University of Pennsylvania�s Wharton School, the J.L.Kellogg Graduate School of Management at Northwestern University, the London Business School, and INSEAD, the European institute for management education. In this, the second of three reports, we look at what these marketing specialists, plus two others from Bentley College and Emory University�s Goizueta Business School, are recommending to companies determined to stay ahead of the competition.

How and When Advertising Works

Sat, 27 Mar 1999 05:02:36 EST

Should companies spend zillions of dollars to advertise their products on television on Superbowl Sunday? How effective would such advertising be? Wharton�s Leonard Lodish has a model to measure the effectiveness of television advertising. Companies that have used it have found it to be an effective tool.