LEAD STORY-DATELINE: BRW, July 25-31, 2002.

Coca-Cola, Microsoft, and IBM are familiar household words to most of us. These three brands top the Business Week/Interbrand brand ranking study. Their brand values are reportedly: Coca-Cola $A125.4bn; Microsoft $A118.3bn; and IBM $A95.9bn. On the Australian front, the top three rankings reported by BRW/Interbrand, together with their values are: Telstra $A9.4bn; Commonwealth Bank $A3.6bn; and Westpac $A3.0bn.

The Interbrand studies indicate the value of brand names, and over time indicate that while some brands remain highly valued, others can lose value. It is evident that where the brand applied to products and the corporate 'super brand' are the same, there is a synergistic effect from integrated marketing communication that integrates good publicity and word of mouth for the corporate name and mainstream brand advertising for products.

We tend to think of branded products as encompassing the gamut of commodities, goods, services (remembering that there is no such thing as a 'pure service', although some personal services such as haircuts and dental work come close), experiences (taking in persons such as musicians and other performers), and transformations (including such products as cosmetics given Theodore Levitt's famous comment to the effect that those buying cosmetics are buying 'hope', and even gaming given that a lottery win might transform one's life). Thus, we can think of brand equity—where brands "have higher brand loyalty, name awareness, perceived quality, and other assets such as patents, trademarks, and channel relationships"—as applying to each and every type of branded product.

Reflecting on the recent 2002 FIFA World Cup held in Korea and Japan—where Brazil won out against semi-finalists Germany, Turkey and the Korean hosts (who were voted the most entertaining team)—we can see how individual players such as Brazil's Ronaldo (winner of the Adidas Golden Shoe Award) are themselves brands and that they and other team players such as Rivaldo form the persona that we associate with a team such as Brazil (itself a branded product). The notion of brand equity equating to the value of loyal customers to the brand is thus evident in sport marketing. We suggest that sporting clubs recognise that they must focus their attention on increasing the customer lifetime value of their members by doing all in their power to maintain and increase the membership base.

Sporting codes such as soccer seek to maintain the base of loyal sporting fans overall, and to help clubs maintain and increase their membership base. Where clubs do this, they can usually afford better players, win more matches—thus further enhancing their brand equity, and thereby attract higher income from ticket sales, telecast fees, merchandise sales, facilities rental, and support from sponsors, and maybe even a listing on a relevant stock exchange. Professional soccer is reportedly experiencing financial troubles globally. However, the UK's Manchester United (Man U) stands out as a soccer team that is managing its customer relationships better than most, and gaining appreciably from a mix of revenue streams. Man U is a global brand that is every bit as visible as the global brands mentioned earlier.

What is the value of the brand? While Man U's brand equity is every bit as difficult to measure as any other brand, media magnate Rupert Murdoch's BSkyB bid more than $US900 million (about $A1.6 million) for the team. Man U is listed on the London Stock Exchange, and has a market capitalisation of $US466 million. Given that the club expected revenue of $US220 million in the twelve months to 31 July 2002, its value as an on-going business is probably a multiple of four times this revenue or $US800 million. Forbes magazine reports that other clubs pale in terms of their market capitalisation relative to Man U; Juventas (Italy) $US241, Rangers (Scotland) $US139, Arsenal (England) $US135, and so on.

TALKING IT OVER AND THINKING IT THROUGH!

1. If the term product encompasses commodities, goods, services, experiences, and transformations, why do so many marketing academicians focus so heavily on services marketing; almost to the exclusion of other types of products?
   
   
2. Is sport marketing radically different from any other type of marketing?
   
   
3. Why is the measurement of brand equity so difficult in the case of a sporting club such as Man U?
   
   
4. Would a sporting club such as Man U gain from using mass media advertising, or might they employ other means to maintain loyalty?
   
   
5. When discussing customer delivered value, what elements are typically included in the equation?

THINKING ABOUT THE FUTURE!

As we pointed out earlier, the club brand is to a degree the sum of the personal brands making up the team. In this regard, Man U scores highly given that the captain of England's World Cup squad (David Beckham) and three other players came from Man U. This costs the club, however, and they are reportedly endeavouring to expand their player payroll but maintaining a cap of 50 per cent of revenue for all staff costs. There is another feature of most sporting codes whereby the organising body (e.g., Australian Football League) places caps on the amount that individual clubs may pay to transfer and pay players in an endeavour to maintain balance in the on-field performance of the clubs in the code. It is interesting to see how this on-field 'balance' actually plays out. Is balance better, or is it better to have 'dynasties'? Try looking at different sports to see which seem to favor dynasties and which favor balance (i.e., different teams winning over time).

SOURCES:

Bennett, Bill. "The Good [the Bad] and the Ugly," Communiqué, 08.02, August, 2002, pp.33-36.

Heller, Richard. "Manchester United's Goal: A Red Planet," Forbes and reprinted in BRW, July 25–31, 2002, pp.46-47.

Kermouch, Gerry. "The Best 100 Global Brands," Business Week and reprinted in The Australian Financial Review, July 31, 2001, p.52

Lloyd, Simon. "Brand Power," BRW, November 29–December 5, 2001, pp.49-54.

Kotler, Phillip; Stewart, Adam; Brown, Linden and Gary Armstrong. Principles of Marketing, 2/e, 2003, p.271.

- Stewart Adam and Maureen Adam

LEAD STORY-DATELINE: Advertising Age Online, May 23, 2002.

The Home Depot made its decision to sign a multimillion-dollar three-year agreement with the Walt Disney Company to co-brand and cross-promote. Home Depot says that this deal is one of the largest of its kind in their history. It also means $100 million in paid advertising for Disney. The Home Depot will be buying media across Disney-owned channels such as the ABC television network, ESPN, and Lifetime. Disney's "ABC Unlimited," Disney's marketing unit, put this agreement together.

The two companies also plan to create a product line of paints called "The Disney Paint Program." This program will be a one-of-a-kind room decorating line of Disney branded paints. This is due to launch in January of 2003. Disney will also be purchasing Home Depot products for their operations.

What does this mean for co-branding and cooperative agreements? Two major mega-corporations, unrelated in industry, are willing to work together and see what they might have in common. Two strong brands in their own right, these corporations may achieve results far beyond their expectations. Time will tell.

TALKING IT OVER AND THINKING IT THROUGH!

1. Describe co-branding and which action in particular represents co-branding in this current event article?
   
   
2. What are the major benefits of co-branding?
   
   
3. What could be the downside of this type of agreement?
   
   
4. What marketing activity must be done with great care when dealing with two different brands?
   
   
5. Think of the most logical item that could be marketed in a children's Disney Store, using the Home Depot brand name.

THINKING ABOUT THE FUTURE!

Co-branding has been around for a long time, but lately there has been a greater amount of it going on. Many times, it is done with food products to make a special and unique product that loyal customers of both brands will embrace and enjoy. It is also seen in the case of Eddie Bauer using its signature name on the Ford Explorer. Because each brand is often strong in its individual category, this approach reaches out to different market segments and combines marketing efforts, hoping to gain wider market acceptance and more bang for the dollars spent on marketing.

DIGGING DEEPER!

Visit the Home Depot and see if there are any signs of Disney lingering on their Web site. If not, keep checking back and note the appearances that Disney will make online with Home Depot. Then, check television advertising for this new co-branding arrangement.

SOURCES:

Friedman, Wayne. "Home Depot, Disney Do $100 Million Upfront Deal (Cross-Platform Pact Includes Network and Cable Ad Campaigns)," Advertising Age Online, May 23, 2002.

- Paula E. Bobrowski

LEAD STORY-DATELINE: The Australian Financial Review, April 19, 2002.

So you want to play games? Most males 10 to 27 years of age seem to enjoy the activity (and many older males). Who wouldn't when one considers the horsepower under the virtual hood of such machines as Sony's PlayStation 2 (PS2), Sega's Dreamcast, Nintendo's Game Boy Advance, and now Microsoft's new Xbox. The latter is the most powerful on the market at this point in regard to time, running an Intel nVidia X-Chip and 64Mb of DRAM. Unlike its competitors, it has a hard drive. Like the PS2, it has a DVD player; however, an extra kit is needed if DVD movies are to be played. It also supports high definition television (this also requires an add-on kit). Xbox also features 3D Dolby Digital Surround Sound. Moreover, Xbox and PlayStations sport Ethernet ports so that those with cable or DSL connections can engage in online multiplayer sessions. The Xbox is not a PC, though, and it competes head-on with other gaming consoles.

While Microsoft reportedly expected to sell 100,000 units in the three months from its launch in Australia on March 14, 2002 (some 2,500 units a week), the reality is that sales slowed to about 1,500 per week by the fifth week. This is despite a marketing communication campaign put at $US 500 million worldwide in its attempt to gain a large slice of the $US 20 billion global game industry. This includes publicity designed to have the PC and gaming journalists raving about the new black box from Microsoft. No doubt they, and many in the industry, are asking themselves why the fall-off in sales occurred so soon after launch.

One vexing question facing any marketing company launching a new product is whether pricing is an issue. Xbox launched in Australia with a price tag of $A649. Facing three price cuts on Sony's PS2 in the first five weeks, Microsoft announced on April 18 that it would cut the Australian Xbox price by 40 percent to $A399, and cut prices by 38 percent in Europe and 34 percent in the UK. Microsoft reportedly was losing money at the higher retail price, but it was also facing pressure from games suppliers like THQ to cut its prices and give sales a boost.

TALKING IT OVER AND THINKING IT THROUGH!

1. What external factors influence the price-demand relationship for new products such as Xbox?
   
   
2. Is Xbox a new product? Explain.
   
   
3. Explain the terms price elastic and price inelastic.
   
   
4. Why is price elasticity of demand of so much importance in the case of new products in particular?

DIGGING DEEPER!

How do companies like Microsoft keep track of competitors' price changes? In the case of companies such as Qantas, who are electronically able to act and react to competitive pricing within the hour, the task is straightforward. For companies such as Microsoft, it is a case of using the sales force, comparison shoppers, and other means to monitor retail pricing. It is also a case of undertaking consumer research to monitor buyer perceptions of value. In short, it is imperative that companies like Microsoft remain ever vigilant to competitor activity and, in the case of a highly visible new product like Xbox, counter any claims that sales are faltering with news of successes.

When a price is cut, those who bought the product at the higher price need to be considered, since they are likely to be the new product's best advocates, provided they are kept happy. Being an astute sales and marketing company, Microsoft is offering the innovators and early majority who paid $A649 some $A250 worth of games and free accessories. The price of customer satisfaction in this war is high.

SOURCES:

Butler, Michael. "The X Factor," Communiqué, March 2002, P 32-35.

Davidson, John. "Microsoft Lops Xbox Tag by 40pc," Australian Financial Review, April 19, 2002, P 70.

"Microsoft Slashes Xbox Prices," CNN Asia, April 19, 2002.

Schoffel, Julian. "Xbox Versus the Rest," PC User, April 2002, P 108-113.

- Stewart Adam

LEAD STORY-DATELINE: Promo Magazine, February 2002.

This article discusses how consumers' attitudes about brands and marketing efforts have changed as consumers are becoming more vigilant about marketing problems. There are several factors at work here. First, the Internet gives consumers the ability to complain more easily and to more people. Second, activists are pressuring corporations about what they perceive as unethical practices (such as marketing cigarettes) by attacking their icon brands and publicizing disingenuous marketing tactics. Finally, consumer are becoming less "brand loyal" due to increasing price competition, increased expectations, and consumer rebellion against materialism. For example, consumers rating for a given brand being a good value has decreased from 39 percent in 1991 to 27 percent in 2001.

One of the major activist groups, Adbusters, sponsors a magazine and actively promotes their November's Buy Nothing Day (held the day after Thanksgiving for the last 10 years). Last November, over 1.5 million people participated by buying nothing. Another activist group, Infact, has over 35,000 members who, through their annual dues, support boycotts (for instance, for the past three years, they have organized a boycott against Kraft Macaroni and Cheese to protest the parent company Phillip Morris). Finally, there is BadAds, which publishes a newsletter to let people know of marketing activities, such as ShopRite paying an elementary school $100,000 for naming rights to their gym.

While consumers are not likely to actively protest a brand, they are getting "the claustrophobia of abundance." This attitudinal change toward consumption had been building the past year as people realized that material wealth has not brought them happiness, but has increased dramatically since September 11. Additionally, consumers are getting overwhelmed by unrelenting marketing efforts and more suspicious of marketing efforts (such as undercover marketing utilized to manipulate word of mouth). For marketers, there is concern that this change in consumers attitudes may make them more susceptible to activists' protests or less receptive to brand messages.

TALKING IT OVER AND THINKING IT THROUGH!

1. What marketing activities do you think have caused consumers to be less brand loyal and more anti-marketing?
   
   
2. What can marketers do to address these attitudinal changes and concerns of consumers?

THINKING ABOUT THE FUTURE!

While brands, particularly well known national brands, are not going to go away in the near future, marketers will have to work harder and smarter to keep and gain customers. Consumers have more power now than ever before, and marketers need to recognize that they can no longer manipulate consumers to purchase. Firms need to practice the marketing concept by first determining what consumers need and expect and then profitably fulfilling or exceeding those needs for customer satisfaction. Determining what customers need will involve research, as past messages of consumption and materialism may no longer work. Furthermore, marketers need to take care not to bombard consumers with messages as that may have a negative reaction. Finally, firms also need to practice the societal marketing concept by being good corporate citizens, as marketing activists are getting more attention and feedback from disgruntled consumers.

SOURCES:

Spethmann, Betsy. "Brand Illusions," Promo Magazine, February 2002, Volume 15, Issue 3, p39-43.

- Jacqueline K. Eastman

LEAD STORY-DATELINE: Newsweek, March 18, 2002.

Think of some premium luxury brands in the automobile industry. Now think of the price tags for some of these brands. For those familiar with this segment of the automobile market, a high five-figure or even a six-figure sticker price is not uncommon for luxury auto brands. However, of late, luxury auto makers have started rolling out models that are under $30,000. BMW has been selling its Series 3 for $27,000 for some time now. It hopes to hook the younger consumer through this low end "entry luxe" and then move them to the more expensive Series 5 ($50,000) and then Series 7 ($80,000). BMW will be testing the limits of low-end luxury when it introduces Series 1 in the U.S. market in about two years for about $20,000. Mercedes is not far behind. It introduced its C230 model for about $25,000 and plans to introduce its tiny Beemers starting at $20,000. Even the upscale Jaguar recently introduced the X-Type, priced at $29,950.

The sales of low-end luxury cars grew by 23 percent this year, compared to an overall decline of 4.3 percent for the entire industry. Why are the luxury auto manufacturers rushing to introduce low-end models? First, the number of buyers of premium luxury cars is very small, making it difficult for manufacturers to make huge profits. Low-end luxury cars, on the other hand, have a substantially bigger market. Auto manufacturers also hope to hook buyers early on so that they can then 'graduate' them to more pricey models later.

Is the strategy of introducing low-end luxury cars free of risks? Certainly not. According to David Martin of Interbrand, "People do not want an ersatz version of the real thing." This practice leads to a loss of exclusivity, too. Cadillac tried this practice by introducing Cimarron, a "tarted up Chevy," in 1981, but didn't get very far with it. Even some quality reviews of these low-end luxury cars have been less than great. The New York Times called the Mercedes C230 "homely," and the Automobile magazine ranked the Baby Benz below the Hyundai XG 350. Some industry experts even question the feasibility of building luxury into a $20,000 car.

TALKING IT OVER AND THINKING IT THROUGH!

1. What are the different ways in which a seller can extend its product line? What kind of line extension does this article talk about?
   
   
2. Discuss some advantages of downward line extension for the seller.
   
   
3. How can downward line extension hurt a brand?

THINKING ABOUT THE FUTURE!

It is interesting to note how different players in the industry practice line extensions. Earlier, we saw upward line extensions when Honda introduced its Acura line and Toyota launched its Lexus line. Now, it seems like it is the luxury car manufacturers' turn to return the favor by venturing into the $20,00 to $30,000 market. It will be interesting to watch how the "entry luxe" strategy affects the overall brand equity of luxury brands. One way to preserve premium brand image is to convert the luxury brand into an umbrella brand and then introduce sub-brands with clearly defined identities and positions to avoid dilution of the parent brand.

SOURCES:

Naughton, Keith. "Dude Where's My Benz?," Newsweek, March 18, 2002, p. 40-42.

- Praveen Aggarwal

LEAD STORY-DATELINE: The Wall Street Journal, June 29, 2001.

Ever wonder how a tulip variety came to be named Hillary Clinton, a hosta, named Abba Dabba Do, an apple, named McIntosh (named by John McIntosh ), or a berry, named boysenberry (named by Rudolph Boysen)? New varieties of fruits and vegetables are grown annually. Each new variety needs a name.

Carolus Linnaeus, an 18th century Botanist, named most plant species. Though most of us call plants by their common name; each new variety must be registered with a unique name. Flowers are registered with trade associations, and growers are on their honor not to steal names. However, plant name piracy is not unknown. The Federal Seed Act governs vegetable names. Once a vegetable name is "approved and registered, that name is legally exclusive and must be used forever."

Plant growers have learned that a bad name can kill the marketability of a plant. The Rafflesia is a more attractive name than "the stinking corpse lily," which is a more accurately descriptive name for this flower. Some varieties of plants are named for organizations or famous people. When a plant is named for charity such as the Veterans' Honor rose, a royalty is paid. Rarely are celebrities compensated, but famous people must give permission for the use of their names.

How do growers decide what names to choose? "The best way to name new plants," experts say, "is to sit around with a few friends, stare at the product, and start calling out whatever comes to mind." The right name does make a difference. Consumers looking at two similar looking plants that have yet to blossom in a garden shop will probably choose the one named Summer Symphony over the one named Jane Doe. Some names that have failed to attract the desired consumer responses: a pepper named Spanish Spice (the name belied the sweet taste of the pepper), a pulmonaria named Dark Veder for its deep green leaves, and a peony named Prince of Darkness, which was later renamed Dark Prince due to customer complaints.

TALKING IT OVER AND THINKING IT THROUGH!

1. How does naming a plant compare to choosing a brand name for any other product?



2. Using the rules of developing a successful brand name, which name would be better for a new rose variety: Laura Bush or Claret Thornless? Explain your choice.

THINKING ABOUT THE FUTURE!

Naming of plants is similar to branding any other product. With plants (such as roses) with over 100,000 varieties, it is increasingly more difficult to find names that are distinctively different and unique. This is compounded by globalization of the marketplace and the need to find names that are easily translated into other languages. Future marketers may follow the example of the pop-singer formerly known as Prince, who in 1992 changed his name to a symbol. This at least increases the possibilities of names. However, this is not without its risks: the pop-singer formerly known as the Artist is calling himself Prince again.

SOURCES:

Crossen , Cynthia. "Roses by Other Names: As Varieties Proliferate, It's Hard to Dub Them," The Wall Street Journal, June 29, 2001, pA1, A4.

- Renée J. Fontenot

LEAD STORY-DATELINE: The Age, October 20, 2001.

At the flagship end of the motor vehicle market, it is easy to see how the marques line up against each other. For example, BMW's 7-series is positioned against S-Class Mercedes-Benz models and the Lexus LS400 series. It is also easy to see this ranging in the 4x4 or AWD (all-wheel drive) category, where the M-Class Mercedes-Benz competes with BMW X5 and X6 models and the Lexus RX300 models. These companies compete against each other as well as other firms by ranging their models and ensuring that they can meet each other car for car, with options and accessories determining the perceived consumer differences and justifying the prices involved.

However, it sometimes seems as if the car companies want to confuse us. Take the Jaguar X-Type, for example. Jaguar markets the XK series, the XJ series, the mid-size S-Type, and has now introduced the smaller X-Type. A question arises with the introduction of this typically Jaguar wood-panelled and leather seat equipped model. Does this new AWD offering - based on some of the mechanical features of the Ford Mondeo - seek to compete with entry-level models from Audi, BMW, and Mercedes-Benz, particularly when it carries a price tag of nearly $70,000 and is higher priced than competitors' entry-level products? Moreover, is the X-Type perceived to offer the same, better, or lower value since it does not carry all of the features of its entry-level competitors? For example, the 2.5 litre Sport version of the X-Type released in Australia in late 2001 does not carry cruise control and features a single-disc CD player rather than a CD-stacker. The more expensive 3-litre version does carry these features. One has to ask which vehicles it is ranged against, in view of an absence of some features that competitive vehicles carry.

TALKING IT OVER AND THINKING IT THROUGH!

1. What is a product line?
   
   
2. A company such as Jaguar has four choices when it comes to adopting a brand strategy. What are these choices?
   
   
3. Do the product mix decisions of top marques such as those mentioned seem to differ? If so, how?
   
   
4. Might a company such as BMW use its product support services as part of its product strategy? Explain.

DIGGING DEEPER

According to the American Marketing Association, "a brand is a name, term, sign, symbol, or design, or a combination of them, intended to identify the goods or services of one seller or group of sellers and to differentiate them from those of competitors."

There is far more complexity involved when brands are viewed from the eyes of potential, actual, and past users. A brand conjures up physical and experiential attributes such as Lexus' quality and Virgin Atlantic Airline's add-on masseuse services. Consumers tend to think in terms of personal, family, or even societal benefits such as a feeling of freedom from wearing Calvin Klein casual wear, or the durability of a Lexus RX300 4x4, or feeling good by using recycled GreenDisk brand computer diskettes. A brand also says something about the values of the firm standing behind the brand in that IBM is all about e-business solutions and HP is all about print quality, while a discount retailer (brand) may say "Here, you don't pay for any fancy overheads". There are cultural overtones in that Qantas may mean 'safety' in Australia, but may stand for 'a holiday atmosphere' to an American or European flying to Cairns in North Queensland. Moreover, brands are imbued with personality. The Mitre 10 Hardware chain in Australia used a television 'soapie' personality (Paul Cronin) in their mass media advertising for many years to get across their home-grown 'Aussie' persona. A brand also says something about the user. For example, a Peugeot 206 driver is both technically minded, and a bit quirky in that she or he has chosen this import over a more status-oriented import (BMW) or a mass-produced, less-engineered and less expensive alternative such as a Daewoo.

Global brand positioning can be difficult and it may be problematic to gain the scale benefits in marketing that come from a global branding strategy. In the case of motor vehicles, it is not always a matter of tailoring the vehicles to suit local conditions - although Australia's motor vehicle design rules do force some changes in the specifications of imported vehicles. Mostly, the reasons seem to be issues surrounding the meaning of brand names, and the images they may conjure up in different languages and cultures. Mitsubishi Motor's main Japanese-made 4x4 model is called the Pajero in Australia and Japan, Shogun in the United Kingdom, and Montero in the United States. Mitsubishi Motor's smaller 4x4 is named the Challenger in Australia, while it is called the Montero Sports in the United States. Moreover, the bigger U.S. market allows Mitsubishi Motors to offer many more option permutations in the Montero Sports range. Also an issue in global marketing is the matter of brand images and how expectations differ between markets. The matter of model ranging is best investigated in local markets, as models and brands clearly differ between countries.

SOURCES:

Aaker, D. A. and E. Joachimsthaler. "The Lure of Global Branding," Harvard Business Review, 77 (6), 1999, p.137-144.

Hagon, Toby. "Jaguar's New Kitten Purrs," The Age, October 20, 2001, Drive 1.

- Stewart Adam and Maureen Adam

LEAD STORY-DATELINE: Duluth News Tribune, August 17, 2001.

Selling caskets can be a difficult and strange business—most people will need one, but hardly anyone wants to plan the purchase. There are no buy-one-get-one free sales, nor does anyone go about selling them door-to-door. Buyers buy them in their time of grief, and are therefore extremely unlikely to be looking for bargains. Still, Bobby Thomas, owner of Casket Gallery of Florida, believes that there is a market for discount caskets. He has been selling discount caskets for the past two years and is convinced that people's attitude toward the purchase of caskets can be altered.

The biggest hurdle, he believes, is in getting consumer acceptance. Most consumers are not aware of the fact that caskets can be bought outside a funeral home, often at a significant discount. Thomas' Orlando showroom, for example, has more than a dozen models on display, and he can order virtually anything from steel to hardwood, and even theme models, all at prices that compare favorably with those of his competitors.

So, how does Mr. Thomas sell his product? Most of his time goes into educating people that they have choices. As is expected, most people don't want to think about their own mortality, and much less prepare for it. The key lies in desensitizing the customers so as to make them comfortable with this unusual product. One needs to market such products without bringing into discussion what's "painful or distasteful." For example, Pfizer Pharmaceuticals had to deal with the taboo subject of impotence in order to sell Viagra. It spent millions of dollars to educate the public that impotence is in many cases a treatable ailment that's nothing to be ashamed of.

Mr. Thomas offers free seminars to explain funeral preparation options and even has a Web site through which he sells directly. However, he concedes that the best way of expanding his business is through word-of-mouth.

TALKING IT OVER AND THINKING IT THROUGH!

1. What are the four types of consumer products? Which category do caskets fall into?
   
   
2. Why is it so challenging to market caskets? What factors do you need to keep in mind when marketing products such as caskets?
   
   
3. The article discusses the marketing of Viagra in the context of marketing caskets. In what sense are the two similar?
   
   

THINKING ABOUT THE FUTURE!

Caskets, like other unsought products such as life insurance and blood donation, are particularly hard to market, as buyers don't see the immediate need of buying or using them. Still, many unsought products could be very expensive and emotionally significant purchases (such as caskets and cemetery plots). An important element of marketing such products is consumer education. Information and education can reduce the element of discomfort that people may feel while contemplating such purchases. Thus, in order to sell such products, marketers should focus their energies on personal selling, educational and informational brochures, and other Web based efforts.

SOURCES:

Clarke, Susan S."Casket Salesman Thinks Outside the Box," Duluth News Tribune, August 17, 2001, p.E1, 3.

- Praveen Aggarwal