Brett Weinheimer

McDonald's and Children (2% Extra Credit Expansion Post)

2005-06-22T22:20:00.000-07:00

So I'm still very much intrigued by the unwillingness of McDonald's to stop marketing to children as Sheharyar mentioned in his blog post, McDonald's going global. Again, I will reiterate, I love McDonald's. But a site I recently uncovered makes some interesting, and sometimes disturbing points about how important marketing to children really is. In the article "Pitching it to Kids," research is sited that points to a doubling of ads targeted at children, to $15 billion per year, with the intent of influencing the $600 billion in spending children are said to invfluence.

Overall, the dead giveaway that children's marketing is not going anywhere? You bet, Wal-Mart has gotten in on the action, creating, as the article mentions, special games and programs to help children find their way to the pertinent, toy, hardware and toddler departments. In a world where increasingly spoiled children are getting their way more and more, it's no wonder that major retailers have realized the power of these tiny voices.

6 comments on classmate's blogs

2005-06-22T21:56:00.000-07:00

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Saddam the Marketer (MKTG/Tech Post 2)

2005-06-21T19:33:00.000-07:00

A very interesting blog on adfreak regarding Saddam Hussein and his marketing ability. The only issue I'd like to raise with the author is that I don't necessarily think this type of endorsement is such a bad thing. As more Saddam blips have been leaking into the press, the popularity of following his latest comments is growing. The most recent being the supposed "love" advice he's sharing with his 24-hour guards. Do I see a celebrity endorser for match.com in the near future?

Let's not completely discredit endorsements from celebrities of the negative persuasion. Remember, in the end, it's bringing a lot of attention to anything that is mentioned.

Winners and Losers of a Marketing Shift (Individual Post 3, 6.20.05 Presentation)

2005-06-17T12:18:00.000-07:00

As the variety of media outlets continues to grow, not only with new types of media, but with continually expanding twists on the media stalwarts of television and newspaper, the need of marketers to adapt their methods of reaching consumers is ever increasing. The article “The Vanishing Mass Market”, which appeared in Business Week on July 12, 2004, does an excellent job of identifying both the winners and losers in the shift from “mass production into mass customization” in the marketing and advertising arenas.

As Kotler’s Chapter 8 clearly identifies, marketers have always attempted to segment their markets, and this concept is certainly not a recent development. However, with the current plethora of newer, more specialized media outlets, segmenting a consumer base has become more efficient than ever before. Of course, both the article and the text mention P&G, and especially their product Tide, and many people still see this type of company as a mass marketer. The new claim is that it is anything but. Companies such as McDonald’s and P&G, both darlings for marketing analysis, are spending the same or even less as they have in the past on marketing, but reaping greater rewards for their advertising investments. This is, in part, explained by the fact that the media outlets and technology available to reach increasingly segmented markets have finally caught up to the desire of marketers to use the theories of market segmentation in their purest form. Now, when a company desires to segment geographically, demographically, pscyhographically, or behaviorally, there is almost a guarantee there is a cable station, specialty magazine, or newsletter that will almost directly reach the particular target market.

The most interesting consequence of this shift to customized advertising, especially by the traditional mass marketers, is that there are both winners and losers. First, the winners: marketers themselves, specific cable channels, and new forms of targeted custom print media all benefit. Advertisers receive more value for their dollar, cable channels can reap the rewards of providing a direct link to their specific viewer base, and custom print media can do the same. The losers become the television giants ABC, NBC, and CBS, some large marketing agencies, and national/city newspapers. As advertisers continue to realize they only need mass marketing advertising space such as multi-million dollar superbowl spots or full page ads in major newspapers to build new brands, these media outlets will definitely suffer. They will be forced to drastically change their value proposition to gain new large-scale advertisers on a consistent basis. The question becomes, can they ever convince major marketing spenders such as the McDonald’s and P&G’s of the world to send more of their advertising dollars back to these traditional advertising mediums?

Finally, this major marketing shift is further complicated when the company in question is a “global firm” (Kotler 596). As advertisers move farther and farther into markets across the world, the number of segmented markets drastically increases, forcing these companies to create extremely complex strategic marketing plans that cater to significant numbers of target markets. Their segmentation strategies have to delve even further into demographics, including race and culture. Thus, it could be argued that the cost would drastically rise for global marketing as it shifts to greater degrees of customization. In the end, the shift is inevitable, and marketing departments will hopefully increase their efficiency to the point that segmenting strategies can be duplicated for other countries, even if the are changes due to cultural issues.

Living through ads (MKTG/Tech Post 1)

2005-06-16T16:08:00.000-07:00

Advertisements these days are so pervasive in our lives...on our computer screens, in our movies, even in other ads...we tend to forget the impact they truly play. I think the recent post "If you can’t beat ’em, cover ’em up" discusses a quite ingenious way that the omnipresence of advertisements was fully exposed.

Could one even imagine if the same exercise were attempted in Times Square, NYC? You would have to cover nearly every inch of every building. It seems that in the end, this project should have been quite successful, justifying the $245,000 expenditure.

IBM/Lenovo and the Global Market (Individual Post 2)

2005-06-14T12:15:00.000-07:00

As firms contemplate entering global markets, a significant option is direct investment, which can encompass everything from development of foreign-based assembly or manufacturing facilities, up to, as I would argue, the purchase of an entire company. This is best, and most excitingly, illustrated by Lenovo’s recent purchase of the PC Manufacturing arm of IBM.

In an article entitled “After IBM: Lenovo's Plans For The PC Market”, the CEO of Lenovo discusses the advantages and challenges facing the company as it strives to become the top global PC player. The challenge is multi-pronged in that Lenovo must not only compete in IBM’s traditional stronghold, but it must overcome a fierce onslaught by US PC maker Dell on its home turf in China. This represents one of the first purchases of a major US brand by a Chinese player, and thus will be closely watched in terms of how they adapt the marketing mix to a variety of international markets.

Two especially interesting points the article mentions are the issues of price and promotion. First, Lenovo has already stated that low price is not everything, providing value to a consumer is key. Thus, competing with Dell will prove an interesting venture, as they focus on being the low-cost competitor and Lenovo will have to offer a distinct competitive advantage to compete. Secondly, in terms of promotion, the company has expressed frustration that Dell has introduced the perception that PCs are a commodity product. Thus, their promotion efforts will have to focus on the PC as being a distinctive product, with significant advantages to be gained by purchasing from a Lenovo/IBM combined entity.

Undoubtedly, when reviewing all the components of the market mix, this will be an exciting corporate battle to watch as it unfolds in the future.

McDonald's Segmentation Shift (Individual Post 1)

2005-06-14T11:31:00.000-07:00

In the past year or two, there has been a greater focus on socially responsible target marketing (Kotler pps. 257-258). This has led to the creation of marketing campaigns focused on a more fit, healthier lifestyle. Additionally, these types of campaigns directly tie to the marketer’s desire to use psychographic segmentation (Kotler 244), or to divide buyers into a lifestyle class that embraces a healthy lifestyle.

McDonald’s, long considered a purveyor of extremely unhealthy fast foods, has recently been focusing on the benefits of a healthier lifestyle, as discussed in an article entitled “McD's Gets Physical in Global Push.” There has been significant criticism in the media of late that McDonald’s focuses on marketing to inner city markets, especially children, and their products greatly increase the incidences of obesity. It is no coincidence that they have increased introductions of a variety of healthier products, including salads, fruit, yogurts, etc. This most recent ad campaign tries to utilize McDonald’s powerful marketing network to associate its name with a fit and healthy existence. Additionally, the article mentions it is a perfect fit because of McDonald’s sponsorship of the Olympic Games.

In using psycographic segmentation, and socially responsible target marketing, McDonald’s employs such notables as Venus and Serena Williams, in order to appeal to an audience that values the accomplishments of these types of athletic celebrities. Consumers are left thinking that they can not only buy healthy foods as part of a fit lifestyle at McDonald’s, but that the company is promoting a return to outdoor and athletic activities. Plus, consumers are left wondering if it’s ok to have that one order of fries and a burger if they make sure to exercise on a regular basis. As long as they usually are health-conscious, maybe it’s ok to splurge on that great-tasting fast food that McDonald’s can provide?

Dell in the Global Marketplace (Team Post 1)

2005-06-14T10:41:00.000-07:00

China is undoubtedly one of the world’s fastest growing marketplaces, and the appetite for high-technology products in this region will continue to grow. The question becomes, does Dell have the savvy and marketing ability to become a truly “global firm” (Kotler 596), by maintaining a significant market share in the Chinese market, especially with an onslaught of a Lenovo/IBM PC product. A Knowledge @ Wharton article entitled “The Dell Model: How Well Will It Travel?” attempts to answer this question. To accomplish this, Dell would need to “gain marketing, production, R&D, and financial advantages that are not available to purely domestic competitors.”

One of the most salient points of the article states that Dell is trying to focus its marketing and sales efforts on coastal cities. These cities are rapidly expanding, and have greater access to the types of technology that facilitate Dell’s marketing and ordering processes. As a result, Dell can first gain Marketing advantages by applying many of the finely tuned marketing strategies that have led to success in the US Market. It can apply its extensive database tracking systems, e-mail distribution networks, and global calling centers to hone in on these particular Chinese markets. The article also mentions that, since many of Dell’s product components are manufactured in China, it drastically cuts down on shipping costs to the end consumer. There are inherent R&D and financial advantages because, with the exception of the keyboard and user manuals, there are few parts to PC systems that have to be greatly differentiated between international markets—the base systems are the same as the US in Dell’s markets the world over.

Thus, it would seem apt to advised Dell to continue focus on marketing in these more cosmopolitan cities, and encourage the use of their call centers for ordering, to focus on the cell-phone savvy consumers of China. As the article mentions, the worst that can happen is that Dell receives a small share of a huge market, increasing a consumer base it does not currently have.

Dell-China Blogging

2005-06-14T09:38:00.000-07:00

I came across this interesting Blog referencing a Dell saleperson's attempts to encourage Lenovo/IBM customers to switch to Dell products. Check it out here.

Power of Advertising

2005-06-14T08:05:00.000-07:00

One of the first things about marketing we have to realize is that it goes so far beyond advertising itself. But the second thing is that there is still something about the power of television commercials, whether creative, artistic, catchy, heart-wrenching, or simply laden with the perfect tune. Every now and then there is a commercial that encourages me to want to see and learn more, or simply just visit the web for a second look. Here are my picks from the past year or so.

1. Pedigree's "Dog's Rule" Commercial. I don't own a dog, never have. But when this commercial came out during the Westminster Kennel Club dog show this year, I wanted to see it again, and again. Click on the "Watch our exciting new commercial" button at the bottom left of this screen. If you're a dog lover, grab some tissues first.

2. M&M's "Chocolate is Better in Color" campaign. What a catchy jingle and excellent overall commercial.

3. Chase Bank's "Life" commercial. The best part of this one is the jingle. I really wanted to find the title of the song...it's Five for Fightings 100 Years. Check out the commercial at this page under the "Life" Heading.

Microsoft's Captive Pricing

2005-06-13T22:28:00.000-07:00

I am posting this regarding Microsoft, mostly out of anger and frustration, but also because I think it illustrates the transposition of a fairly common practice, captive-product pricing. A few years ago, I signed up for a MSN/Hotmail account, like everyone else, and decided to pay the extra $19.95 per year for MSN Plus extra storage. Well, with the advent of Yahoo and Gmail, the amount of free storage has drastically increased. MSN, in response, has claimed that users of its free service are entitled to 250MB of free storage. I thus decided to cancel my paying MSN Plus subscription, as 250MB is more than I'll ever need. Well, last week I awoke to find my MSN account had been reduced to 2MB and thus frozen, as I had completely exceeded the limit. Multiple calls to customer service and technical support proved fruitless, as I was told the 250MB were being phased in over time, geographically. So, what happened, I was forced to again subscribe to their service, if only to unfreeze my account. I think it illustrates the idea of captive-product pricing, but in a completely unethical manner. I am still contemplating turning them into the FCC for false advertising.

Intro to Marketing 411

2005-05-30T12:23:00.000-07:00

So I did finally realize there is quite a bit more to learn about marketing, and so I decided to enroll in the Marketing Certificate Progam at the Wharton School, and make a foray back into the world of academia for a while. This plog is part of a dynamic class project we are undertaking for Marketing 411, and all members of my class are participating. I am personally focusing on Segmentation and Globalization, and will be studying and researching Dell Computer Corp. I have to say I'm fairly excited, as I switched over to Dell Computers right after graduating from Penn, and have purchased three since then, including a laptop. Their marketing focus has changed, even in the time that I've been a customer, and they remain one of the most diversified purchasers of advertising media, covering the gammet from TV, papers, online, to good old mailings.

Brett Weinheimer

2005-05-23T22:55:00.000-07:00

Why Brett E. Weinheimer has ventured, yet again, into the everchanging web:

This is my first entry into the world of blogging, designed especially for my Marketing 411 Course at the Wharton School, University of Pennsylvania. I have always had a fascination with marketing, especially as it relates to the value and power of well-known global brands.

I am currently working as a Class Giving Director at The Penn Fund, the University of Pennsylvania's division that handles undergraduate annual giving. I am responsible for the Penn alumni classes of 1994-2001, including the 5th and 10th Reunion Classes. Marketing plays an integral role in my daily life, as I am contstantly "selling" one of the world's most powerful educational brands to its own constituency. It's always amazing how difficulting pitching a "product" can be, even though it relates to a homegrown constituency, aka former Penn students.

Once upon a time I received a B.S. in Economics, with concentrations in Management and Real Estate, from the Wharton School, in May 2000. After graduation, I joined the Investment Banking Analyst Program of the Chase Manhattan Bank, later JPMorgan Securities. I worked there for 2.5 years, the last part of which was spent as an analyst in the Private Equity Fundraising Group.

After some traveling, I moved to Guatemala City, Guatemala to start a real estate company with a college friend. After living for 4 months in Central America, I returned to the US to work for a consulting company, doing management work for Tyson Foods in Noel, Missouri. I then accepted a position at Penn in fundraising.