Marketing Management

This article discusses the effective usage of digital marketing strategies by Kate Spade, Nike's promotional campaign, McDonald's repositioning, sustainable brand and competition, and customer's response to airline surcharges.

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Marketing Management
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Chapter 7: Digital marketing and social networking
Question: Companies increasingly build their brand equity and gain market share with
their digital marketing strategies. Visit the Kate Spade website
(http://www.katespade.com). How does Kate Spade use its website to interact with
customers?
Digital marketing strategies and its effective usage by Kate Spade
The concept of brand equality has become important in the present times and it is seen
that the various organizations are taking the help of this concept to have a larger share within
the market (Tiago & Veríssimo, 2014). In this regard, the digital marketing strategies that a
particular organization uses play a significant role in developing the brand equity of the
concerned organization. Kate Spade takes the help of the diverse kinds of effective digital
marketing strategies for the process of enhancing the prospects of her fashion organization
(Katespade.com, 2018). Furthermore, it is seen that the website of the organization has
various fan pages wherein the customers can post any queries or doubts that they have and it
would be resolved through the brand manager or the other executive officers of the
organization (Katespade.com, 2018). In addition to these, the various fan pages provide
valuable information about the company and thereby help in the development of the brand
equity of the organization. It is pertinent to note that the effective use of these strategies have
enabled the organization to gain a significant amount of success in the recent times.
References
Kate Spade New York – Handbags, Clothing, Jewelry and All Your New Favorites!. (2018).
katespade.com [online] Retrieved from https://www.katespade.com/

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Tiago, M. T. P. M. B., & Veríssimo, J. M. C. (2014). Digital marketing and social media:
Why bother?. Business Horizons, 57(6), 703-708. Retrieved from
https://www.sciencedirect.com/science/article/pii/S0007681314000949
Chapter 5 – Consumer and business behavior
Question: Give an example when a company intentionally triggers recognition of a
particular need through its promotional campaign.
Nike and Fuelbands
In the present business world, one of the most commonly noticed trends is the fact
that the various business enterprises often take the help of diverse kinds of marketing as well
as promotional campaigns. These are being used with the objective of effectively promoting
the products or the services offered by them and also to create a need for the products or the
services offered by them. A typical example of a business enterprise which took the help of
promotional as well as marketing campaigns to create a new for the products or the services
offered by them was Nike. The company Nike made the most effective usage of this
particular process for the Fuelbands offered by them. For example, it was seen that the
company took the help of various kinds of promotional as well as marketing campaigns
wherein they emphasized the benefits that the customers can derive by staying fit and also the
manner in which they can do it (Nike.com, 2018). The Fuelbands, which the company Nike
offered, enabled the customers to measure the total physical activity that they have performed
in a single day and also to compare it with others (Nike.com, 2018). Thus, it can be said that
the concerned company by first creating the need for fitness and then providing a product
which can help the customers to measure their level of physical fitness was not only able to
create a need among the customers for the products that they offered but also ensure the
success of their product.

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Reference
Nike+ FuelBand makes life a sport. (2018). Nike.com [online] Retrieved from
https://news.nike.com/news/nike-fuelband-makes-life-a-sport
Chapter 6 – Segmentation, targeting and positioning
Question: Do some brief research on McDonald’s. Discuss some changes it has done in
the past few years to reposition its brand. Why do you think McDonald’s need to
reposition its brand?
McDonald’s and brand image
The company McDonald’s, which was established by the McDonald brothers, initially
focused on the sale of hamburgers and other kinds of traditional food items made by them
and had only one business center, that is, in the city of San Bernardino (Mcdonalds.com,
2018). They insisted that the joint should provide the food items to the customers, which
were manufactured from healthy means and also from the traditional means. However, Ray
Kroc, who took over the reign of the company from the McDonald brothers not only
expanded the business into the diverse parts of the USA but also of the world
(Mcdonalds.com, 2018). In addition to this, changes were also made in the menu that the
outlet offered to the customers depending on the location of the outlet and some of the local
food cuisines were also included in the menu with the intension of enhancing the revenue
earned by the outlet. Furthermore, various artificial food products and others were also used
for the manufacture of the food items. The use of these strategies or tactics has significantly
changed the image of the company from a small outlet in San Bernardino to one of the largest
fast food chains of the world (Mcdonalds.com, 2018). The company needed to realign its
image so as to send a clear message to the customers that the organization has undergone a
change in leadership and was willing to make the required changes as per the requirements of

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the customers unlike in the earlier time when the McDonald brothers were unwilling to make
any changes.
Reference
McDonald's: Burgers, Fries & More. Quality Ingredients. (2018). www.mcdonalds.com
[online] Retrieved from https://www.mcdonalds.com/us/en-us.html
Chapter 8 – The power of branding
Question: Do you think companies that aim to build a sustainable brand are more
competitive in today’s marketplace? Why or why not?
Sustainable Brand and competition
The objective of the various business enterprises of the present times has shifted
drastically from the means to enhance the annual revenue gained by them to the process of
attainment of sustainability (McDonagh & Prothero, 2014). This is important from the
perspective of the various brands as well as organizations since in the present times it is seen
that the number of choices or the options that are available to a customer is more than it was
earlier times and this has significantly increased the amount of competition within the
business world (McDonagh & Prothero, 2014). Thus, the various business enterprises of the
present times look to attain the stage of sustainability. This is important since it enables the
concerned organization to not only earn the loyalty as well as the satisfaction of the
customers but at the same time ensures a steady flow of revenue because of the fixed
customer base that they would have (McDonagh & Prothero, 2014). Thus, it can be said that
the business enterprises which aim to attain the stage of sustainability have a better chance of
gaining success within the present day business world rather than the other organizations
which focus on revenue and other kind of options.

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Reference
McDonagh, P., & Prothero, A. (2014). Sustainability marketing research: Past, present and
future. Journal of Marketing Management, 30(11-12), 1186-1219. Retrieved from
https://www.tandfonline.com/doi/abs/10.1080/0267257X.2014.943263
Chapter 10 – Pricing decision
Question: How do consumers respond to additional airline surcharges?
Customer’s response to airline surcharges
One of the most commonly used tactics by the various airlines companies in order to
attract a larger number of customers to the services offered by them is to provide them lost
cost services wherein they would be required to pay just the basic amount of prices for the
services that they have opted for (Greenleaf, Johnson, Morwitz & Shalev, 2016). However, at
the same time it is seen that the customers are required to pay additional charges for the
various kinds of necessities like luggage carriage, beverages, foods, fuel surcharges and
others (Burman, Albinsson & Hyatt, 2016). The customers usually see these extra or
additional airline surcharges charged by the airline companies to be totally unfair and at the
same time unjustified because of the fact that they need to pay extra amount of money for
travelling the same time amount of distance that in the earlier times they used to travel at a
much lower charge (Burman et al., 2016). These additional airline surcharges directly affect
the level of customer satisfaction that the customers used to have in the earlier times and
thereby reduce the satisfaction level of the customers from the services that they get from the
airline companies (Greenleaf et al., 2016). This often encourages the customers to change the
airline company for the travels that they need to undertake and thus adversely affects the
prospects of the airline companies.

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Reference
Burman, B., Albinsson, P. A., & Hyatt, E. (2016). One night or many? Effects of amenity
charge transparency on consumer reaction. Journal of Hospitality Marketing &
Management, 25(8), 1010-1033. Retrieved from
https://www.tandfonline.com/doi/abs/10.1080/19368623.2016.1168334
Greenleaf, E. A., Johnson, E. J., Morwitz, V. G., & Shalev, E. (2016). The price does not
include additional taxes, fees, and surcharges: a review of research on partitioned
pricing. Journal of Consumer Psychology, 26(1), 105-124. Retrieved from
https://www.sciencedirect.com/science/article/pii/S105774081500042X