Category Archives: Marketing
Two of our recent MBA graduates, Kristin Stith and Paul Klein, gave an excellent talk at TEDxUniversityofNevada 2014 about being part of the Biggest Little City rebranding effort. This was a group of talented citizens that organized to volunteer time and effort to change the image of Reno, Nevada. The results of the rebranding and grassroots marketing campaign have been impressive.
This is also a great example of a well rehearsed TEDx talk. Kristin and Paul participated in all three of the rehearsals we organized for local speakers starting 3 months before the event. We watched as their talk went from an outline to a script and from nervous reading of lines to a confident performance. The audience loved their talk and if you take the time to watch it, I think you will too. After watch the video, please share your thoughts in the comment section below.
My marketing class in the Executive MBA program at UNR held discussed the effectiveness of the recent Super bowl commercials. They were tasked with describing how advertisers segment their market and discuss the effectiveness of the strategy. Their conclusions were very interesting.
Mass marketing as a strategy is a difficult one. Consumers today expect more one to one marketing; a one size fits all approach is problematic in many cases. Some products, like beer, aren’t really differentiated, except for a brand. Mass marketing works well with products like this, where they are largely undifferentiated and fill a basic need. Other products, such as computers and even cars are increasingly customized based on customer preferences.
The class focused on one particular ad: the Clint Eastwood Halftime in America Chrysler commercial. (see it on YouTube at http://youtu.be/_PE5V4Uzobc) Despite not really knowing who was sponsoring the commercial until the end, the students in the class wisely identified several key segments the commercial was targeted. Using Clint Eastwood helped reach multiple generations in the audience but really positioned the Chrysler brand particularly well to an older generation. Despite the international audience of the game, the commercial was targeted to an American audience evoking a sense of loyalty and patriotism to products made in the United States. Many students noted the political overtones in the commercial but didn’t feel it took away from the experience.
The students in the UNR EMBA program are very bright and experienced. They handle discussion topics like this easily and they teach me something new each week.
James McClenahan, MBA
Jim McClenahan is the Director of Management and Executive Programs for Extended Studies at the University of Nevada, Reno, responsible for more than 150 professional development courses annually as well as several major conferences.
He serves as the Treasurer to the Northern Nevada Chamber of Commerce, chair of the Schools to Careers committee for Washoe County and on the advisory board for St. Albert the Great Catholic Church. He completed his MBA at the University of Nevada, Reno in 2006.
“Whosoever desires constant success must change his conduct with the times.”
— Niccolo Machiavelli
In 2008, Apple became the top retailer of music in the world. They passed Wal-Mart, Best Buy and Amazon and they did it without shipping a single CD. Coinstar, who owns Redbox, is participating in a $7Billion industry and is attempting to unseat Netflix in its distribution model. Redbox has 28,000 kiosks and has rented 1.7 Billion movies.
What happened to Tower Records and Circuit City and Wal-Mart?
In a board room somewhere, the board of directors at Blockbuster Video failed their shareholders, probably 10 years ago. The company was committed to a certain way of doing business and didn’t leave any way to evolve easily. They may have been profitable at the time, but they failed to develop a strategy and marketing plan that would allow them to compete in the age of broadband against Netflix or against distribution convenience at Redbox. By the time they developed something, it was too late. They were too slow to change and those that did were more successful.
Apple, a technology company, figured out how to harness technology to sell music on devices that they developed. iPod’s are extremely well designed and easy to use. By developing the music distribution model to go with the device, the were successful in selling both. By increasing the number of iPod users they were able to increase the amount of music available. Their strategy created a network externality that allowed Apple to benefit exponentially as they sold more devices and made their music compatible on other devices. (and others made their devices compatible to Apple’s format). Microsoft tried a similar strategy, but folks didn’t like the device enough to generate the same market share. Somewhere in a board room Sony must be kicking themselves. When I was a teenager, the Walkman was everything. Sony had the technological know-how, they had the content, but failed to deliver a device. They were outdone by a computer company which is now a consumer product company.
It’s not just about strategy, marketing and finance, good leaders have to see the future and not be afraid to act. I was fortunate enough to see Scott Klososky speak this year and he talked about this. (visit his blog here: http://www.klososky.com/ts_blog/) He offered that a leader that doesn’t understand technology and trends is only 60% of a leader. Companies can no longer afford to ignore this or risk failure. He mentioned Apple and Blockbuster and these concepts resonated with me.
I teach Marketing and Economics but this only offers a part of the picture students and business leaders need. You need good strategy, good marketing plans and you need to understand your markets. Most importantly you need to understand where the market is going. Trends become magnified and more important. It creates a lot more risk and uncertainty. Redbox could have easily failed as could Apple, but by not acting, you could end up like Blockbuster.
Jim McClenahan is the Director of Management and Executive Programs for Extended Studies at the University of Nevada, Reno, responsible for more than 150 professional development courses annually as well as several major conferences. He serves as the Treasurer to the Northern Nevada Chamber of Commerce, chair of the Schools to Careers committee for Washoe County and on the advisory board for St. Albert the Great Catholic Church. He completed his MBA at the University of Nevada, Reno in 2006.