Internet Exercises

1-1 EVOLVING OUT OF THE PRODUCT-ORIENTATION STAGE

The authors used the Pillsbury company of the late 1800's to exemplify the product-orientation stage of marketing evolution in the United States. To see how much things have (or haven't) changed, take a look at the new Pillsbury homepages:

http://www.pillsbury.com

http://www.bakeoff.com

How would you characterize Pillsbury's orientation now? Make a simple chart comparing and contrasting their 1800's orientation with what they represent today. What might you prescribe as the next step in Pillsbury's marketing evolution?

1-2 THE MARKETING ORIENTATION STAGE

The quote from Nike chairman and CEO Philip Knight provides an excellent illustration of the marketing-orientation stage. Given this approach, you might find it surprising that not only was Nike one of the last major athletic footwear producers to develop a web homepage, but they took a distinctly "non-marketing" approach when the homepage finally debuted. Nike launched its homepage in August of 1996 to coincide with the opening of the Centennial Olympic Games in Atlanta. To quote the page itself, Nike's stated goal at that time was to "provide the media with information regarding Nike-sponsored athletes competing during the summer of 1996 - whether you're in Atlanta or Sri Lanka. We seek to give the media what they need to do their jobs. Our focus is on previewing key stories, rather than on reporting results." People outside the press community were invited to peruse the homepage, but Nike proudly proclaimed, "Don't expect us to sell you anything!"

a) Given Knight's quote and your own knowledge of Nike's past and current marketing efforts, what is your reaction to this unusual approach? How does this strategy fit in (if at all) with the marketing-orientation stage?

b) Call up the current Nike homepage (http://www.nike.com) and answer the following questions: Now that the Olympics are long over, has Nike maintained this "non-selling" approach? If not, what is their new angle? How is this a reflection of the marketing-orientation stage?

1-3 POSSIBLE EXCEPTIONS TO THE MARKETING-ORIENTATION STAGE

The authors suggest that public utilities (i.e., gas and electric companies) do not need to be marketing-oriented to prosper. Do you agree with this statement? Why or why not? As you consider this question, peruse a few of the electric company homepages listed at the following site:

http://www.electricrates.com/erholink.htm

a) In general, how would you characterize the orientations of these companies (i.e., product-, sales-, or marketing-oriented)? Did you find much variation between the companies you investigated? Any surprises?

b) Under what circumstances would public utilities be forced to take on a more marketing-oriented orientation? Can you think of another industry in which these circumstances developed, forcing major changes in a once monopolistic organization?

1-4 RELATIONSHIP MARKETING

Relationship marketing is one of the most natural applications of the web. That is, Internet technology allows companies to offer ancillary services and other opportunities on-line to promote customer allegiance and positive associations. This goes well beyond customer service and product support. Briefly describe the ways in which each of the following homepages embody relationship marketing:

Digital Computer http://www.digital.com

Seattle Mariners Baseball http://www.mariners.org

Ragu Foods http://www.ragu.com

The Discovery Channel http://www.discovery.com

1-5 MASS CUSTOMIZATION

How are the following companies good examples of mass customization? What are the potential pitfalls for each of these companies as they expand their mass customization efforts?

Samuel Adams http://www.samadams.com

Gibson Guitars http://www.gibson.com

Levi Strauss http://www.levi.com

1-6 INSTILLING AN ETHICAL ORIENTATION

The University of British Columbia maintains a list of corporate codes of ethics publicly available via the web. You will find this list at the following URL:

http://www.ethics.ubc.ca/resources/business

Choose any three companies from this list and familiarize yourself with their codes of ethics. What similarities and differences did you find among them? Which elements are applicable to all companies and which are industry- or company-specific? If you were an employee of one of these companies, how would you react its ethics code? How much of this seems to be common sense?

1-7 UNDERSTANDING UTILITY

"A customer purchases a product because it provides satisfaction. The something that makes a product capable of satisfying wants is its utility. And it is through marketing that much of a product's utility is created." Consider Holiday Inn as an example:

http://www.holiday-inn.com

Use Holiday Inn to illustrate the following kinds of utility: form, place, time, information/image, and possession. Why is it important for marketers to understand the differences among these concepts?

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