Archives posted in: Marketing
What do Eastman Kodak, Sears Roebucks, K-Mart and American Airlines have in common? They are all U.S. corporate icons on the verge of implosion and each one of these likely failures is through a fault of corporate marketing management. The rules for marketing are pretty simple. So what is “marketing?”
More A few months ago, the future of Netflx looked quite bleak after a serious of pricing mistakes and the creation and destruction of a separate company for streaming videos without the mail component. Is there hope yet?
More Reed Hastings, the CEO of Netflix (NFLX) has cemented his position on my Hall of Shame. Whether hubris (outrageous arrogance) or stupidity, Netflix has taken an ill-advised price increase and transformed it into a runaway train that threatens to jeopardize the company. The story began when Reed Hastings and his management team, after doing apparently no market research, decided to raise their prices by approximately 60 percent. This action was taken amidst a continuous stream of record earnings, customer loyalty and a growing customer base.
More In a marketing blunder that rivals Coca Cola’s (temporary) abandonment of its original formula in favor of the sweeter “New Coke,” Netflix (NFLX), despite its incredible success and customer affection, decided to raise its prices 60 percent. Stock tumbled 19 percent. One million customers instantly abandoned Netflix. Was this incredible greed, stupidity or just plain ignorance?
More The 2011 graveyard of dead icons might get another — Eastman Kodak. This 131-year old mainstay of Corporate America is struggling to survive. It recently posted a much higher than anticipated loss and lower revenues. It continues to struggle from selling film to selling digital camera and printers.
More According to Ypulse research, teens and college age men spend more per shopping trip than young women ($94 vs. $81)? That’s because guys want to get in and out of stores fast, and avoid shopping for awhile.
More While the GROUPON model — the idea of getting a $50 meal for $15 — is clearly compelling to consumers, does it work for the retailer?
More The May 16 issue of Harvard Business School’s “Working Knowledge” carried an intriguing article entitled “What Loyalty? High-End Customers are First to Flee.” The article goes on to discuss the work of Prof. Francis X. Frie and doctoral student Ryan W. Buell. The premise of the research simple states that customers that businesses believe to be their best and most loyal are likely to be the first to cast you aside when presented with a challenger of a firm’s heretofore superior service. It’s a real kick in the groin to those companies who believe they have invested heavily in high levels of service for their best customers.
More It now appears that Border’s and Blockbuster will get their life-saving transfusions of cash and will live to fight another day. As P.T. Barnum once said: “There’s a sucker born every minute.” Neither of these companies deserves to survive.
More The saga of Steve Jobs and the Apple IPhone 4 gives warning to any strategic smartphone marketer who attempts to intrude on Apple’s turf.
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