1. http://mywebspace.wisc.edu/rkamath/ marketing 300 discussion section http://mywebspace.wisc.edu/rkamath/

3. Question “Today, my friend, her parents and I, drove 5 hours all the way to Disneyworld, only to realize we had bought Disneyland tickets. Disneyland is in California, 3000 miles away. We couldn't switch them out and we didn't have money to buy new ones. FML.” What should Disney do in this situation?

4. http://mywebspace.wisc.edu/rkamath/ discussion question What’s the difference between  Discount houses  Conventional retailers cutting prices  Mass merchandising Forecast the future of low-price selling in food, clothing, and appliances. How will internet affect this?

5. http://mywebspace.wisc.edu/rkamath/ discussion question Discount houses What is a discount house? Sell ‘hard goods’ (appliances, furniture, etc.) at large discount No credit, sometimes no cards Customers pay cash Marketing mix shaped by this Some examples? VOLUME MARGIN low high

6. http://mywebspace.wisc.edu/rkamath/ discussion question Price-cutting by Retailers Why do they cut prices? Discounts are a competitive reaction No permanent discounts intended More tactical than strategic Examples? VOLUME MARGIN low high

7. http://mywebspace.wisc.edu/rkamath/ discussion question Mass Merchandisers What is a MM? Sells all kinds of stuff! Soft goods / Hard goods Extremely cheap! Examples? VOLUME MARGIN low high

8. http://mywebspace.wisc.edu/rkamath/ discussion question How does the future of low-price selling look? ?

9. http://mywebspace.wisc.edu/rkamath/ discussion question

10. http://mywebspace.wisc.edu/rkamath/ discussion question Are consumers getting tired of low prices? Source: Walmart.com/investors 2004  $252.8b 2005  $281.5b 2006  $308.9b 2007  $345.0b 2008  $374.5b 48% growth 8% CAGR! Fortune *1* company!

11. http://mywebspace.wisc.edu/rkamath/ the year 2050 Europe Does this really mean that mass merchandisers are going to take over the world?

12. http://mywebspace.wisc.edu/rkamath/ discussion question Maybe, but not necessarily; and even if they do, they likely won’t put everyone else out of business. Because:  Increasing desire for specialty products  Not all target markets will want mass- merchandised goods or will want to shop at mass merchandisers  People who can’t buy stuff they want locally, can go to online stores

13. http://mywebspace.wisc.edu/rkamath/ discussion question How will internet affect the future of low-cost shopping?  Can buy almost everything online now  Instantaneous price comparisons  Can use stores to see products then buy them cheaper online  Much more competition in general!  Biggest barrier for online: Logistics of buying stuff must get cheaper to compete effectively with brick-and-mortar mass merchandisers and retailers

14. http://mywebspace.wisc.edu/rkamath/ I’m going to ask you something. What is the first business that comes to mind when you hear this category? – Madison bar – accounting firm – fast food restaurant – charity organization an experiment

15. http://mywebspace.wisc.edu/rkamath/ an experiment Top-of-mind Awareness – Good TOPA is usually an indicator of good marketing. Why? People have high strong understanding of your product/services, and why they’d want them Associate your product as being the optimal in the category Consumer needs understood and ability to deliver on them conveyed – Being synonymous with category is usually good! When is it a problem?

16. http://mywebspace.wisc.edu/rkamath/ an experiment you usually want to be the first one people think of when do you not want that? what is the value of being first one thought of?

17. http://mywebspace.wisc.edu/rkamath/ group project How’s it coming? Due 4/22 or 4/23