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Sarah Jacobsma

Is This The Future Of Retail? AT&T Thinks So - Forbes - 3 views

  • AT&T’s research found that consumers who want to buy a specific product and have it delivered to their home will simply do it online. But for those who enter a store, their purpose is to learn, to experience, and to speak to a person.
  • AT&T’s research found that consumers go to the web to conduct ‘transactions;’ they go to a store to discover solutions to help them live, work, play, and learn.
    • Sarah Jacobsma
       
      AT&T's research has really allowed them to create a omni-channel retailer. This allows consumers to learn about a product and use them before the purchase is made. How do you think this interaction with different phone models will effect companies such as Apple -- who already offer their customers this type of environment?
  • How do we want people to feel when they enter our store?
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    This article discuses the future of retailing for AT&T specifically for brick-and-mortar locations. Their new store design will offer highly personalized services, solutions - not transactions, and emotionally engaging experiences.
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    This validities my the presentation that I did in class last week stating that the omni-channel retailing approach is where the retail industry is heading... Great article....
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    I agree with AT&T's stance on store layout and in-store customer service since this was the aspect of Phone retailing that was missing most of the time. At least that is my experience from Germany and the Netherlands. I think there is a huge potential for this model in other markets then the US as well.
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    I like the idea of the reps having tablets and their not being a counter between the customer and the rep. It would feel so much more friendly. I kind of want to go to the store next time I'm up that way. I think it is a good idea.
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    Great article! My article is also discussing omni-channel retailing and I really do think this is where retail is heading and think it is going to greatly improve overall customer experience!
Kara Blakley

How to Beat Your Competition by Innovating in Ways They Can't Copy - Forbes - 13 views

    • Kara Blakley
       
      Each company uses different jargon, and I found it interesting they hire "artists." Some business people can have artistic and creative sides to them in order to manage stores. Do you agree?
    • Kara Blakley
       
      Have you ever noticed unusal pieces in Urban Outfitters that you haven't seen in other UO stores? This creative freedom is an intersting aspect to UO's strategy!
    • Kara Blakley
       
      Do you like having continuity when you go into a store or are you intrigued by the differences Urban Outfitters showcases?
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    • Kara Blakley
       
      I believe Steve Jobs did just this - we couldn't begin to imagine what we wanted in technological products that he was instrumental in creating. But he had the vision and made it a reality - and what would we do without all our amazing Apple gadgets?
    • Kara Blakley
       
      I don't agree with this statement - why do they need to replace all their managers? Why can't we just begin to think in a different way in order to evolve for the better?
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    Exciting to know that college students began the company and have stuck to their values ever since. It is interesting to hear that they prefer art students over business students (us). Makes me think that we should become more well-rounded so that we are not stereotyped as only "analytical" which the article mentions at least twice. We can be creative too!
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    I thought this was a really interesting read and like how they emphasize catering all aspects of their store to their target market. While I can't say I have made many purchases at Urban Outfitters, I feel like it is also a destination store. The atmosphere is inviting and draws people in because it is so different. That alone helps create a buzz and draw others in. There is an Urban Outfitters at the Keystone Fashion Mall which got me thinking to some of the other stores there. I feel like there are many store there that share this fun, atmospheric experience which really adds value. The atmosphere can really help or hinder a consumer's experience and I feel like that the Keystone Fashion Mall has done a great job of creating a unique experience for all of its visitors - Urban Outfitters being included as a part of it.
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    This is an article relevant to us - college students! We have only had a few classes and already Urban Outfitters has come up as a retailer that has drawn our attention. The article gives a great example of how Urban Outfitters is trying to attract their target market to their stores, not just through their merchandise but by keeping us there longer with a unique layout. Lina gave a great point how today we all need to be well-rounded in many different areas which can bring value to a company. And Krista, I agree with you about the Keystone Mall - the layout of the stores and lots of open space keep shoppers happy and in the mall longer. This is an aspect many other shopping centers could/should pick up on...how the "atmosphere" and store selection makes us feel.
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    Similar to what Lina mentioned in her post, using artists to influence the layout of a store is a very interesting approach. There may be some advantage to that, although we may not think we are analytic, being business students, at Butler we are very well versed in all the disciplines of business. This makes us think not only about our vision for something, but also the outcomes of it financially and economically. So maybe Urban Outfitters is onto something with their thoughts moving from being focused on the business perspective to the artistic perspective. If they can incorporate new pieces into their displays that they find on their drive into work without consulting others, that is an awesome way to keep your store forever changing and to continue its appeal. I am very interested to see how many stores will begin to follow in their footsteps, and incorporate more artists into their decision making.
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    Thank you for this article Kara! Urban Outfitters is one of my favorite places to shop and I had no idea that it was started and run by college students--I think this is one of the great ways that they are attracting their target market. This was my favorite sentence from the article, "If a manager sees an old wooden crate on his way to work and thinks it would look good in the men's section, he can bring it to work and put it on display." This is wonderful, just wonderful! Going back to what a lot of you have already mentioned, their unique layout and atmosphere is what brings people in and creates that overall "experience" for the customers.
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    Great article Kara! I agree with Lina and find it very interesting that they prefer to hire art students versus business students. Although I am not a very artist person this article makes me wonder if students should take more classes in the arts along with our core curriculum. I have never actually entered or bought anything from urban outfitters so I cant say I truly understand what the stores look like from a layout stand point, but it is very interesting that employees are allowed a sense of freedom when it comes to creating an ascetically pleasing store. I think it will be interesting to see if more businesses learn toward hiring more artistic individual.
Kate King

JC Penney -- Are You Listening? - Forbes - 15 views

  • I had the opportunity to hear Jim Collins, author of the business best-seller Good to Great, speak at a conference two weeks ago.  He talked about the fact that truly great companies find, “the right 20% to change.”  Companies need to change, they just can’t change too much all at once, and they need to change the right things.
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    I think this article is a great example of how important it is for companies to be continually evolving and strengthening their brands. I currently work for Kairos Zero, which is an online marketing consulting company, and their main objective in helping their clients is specifically defining the target market. Once the target market is clearly defined for any company, they can use analytics to better analyze their main customers, how they behave, and what they are looking to experience with your product or service. In the case of this article, JC Penny was unable to evolve and develop new strategies for existing or new customers because their target market was not clearly defined, and JC Jenny's overall focus was not based on what the customer truly wanted. This directly affected their bottom line over the course of two years. Unfortunate for JC Penny, but demonstrates how important it is to cater to the customer and provide that "experience" that they are looking for.
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    I agree with Petro's thoughts that JCPenney needs to listen to the customers. Apple is a different "breed" in a way because we as consumers don't know what we want in technology until we see it - I would have never been able to think I wanted a device such as the iPod or iPad until it was introduced. Now, I can't envision my life without them! JCPenney's "suburban house-wife consumers" need practical and versatile items. JCPenney's St. John's Bay brand was a $1 billion brand and they need to capitalize on their strengths - not completely take it out. They need to insert new and exciting items such as Joe Fresh but keep the elements that make their company successful...and carefully change "the right 20%." Have you all shopped the new brands at JCPenney and/or did you like the older/familiar brands we know and associate with the company?
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    I agree with Kara, JCPenny does need to listen to what the customers want -- not what they think the customers want. There was a great point made in the article that they had gotten rid of St.Johns Bay apparel line, which is a line some of their customers were loyal and kept coming back to JCP. This article is a great example as Prof King said "the right 20% change." Unfortunately, in recent years JCP has seemed to change the wrong 20% rather than the right 20% which is why they were doing so poorly. I do not think that Ron Johnson took into account that JCP is a completely different industry over Apple. I think when changing a brand a lot of factors come in to play and as stated in the article to target toward current customers and/or new ones is a decision the company has to make.
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    Well put ladies. As Kara mentioned, Apple is a one of a kind company... for now at least. Until specialized firms like Apple can successfully replicate the ability to predict market demand, it is unnecessary to take such risks, as JCPenny did with the removal of core brands, to boost sales. Although it is encouraged for firms to think outside the box in todays modern world, in order to grasp the attention of consumers along side multiple other stimulants, it is essential that firms do so in a cautious manner. This is a perfect example of the importance of "the right 20% change". Although it is unfortunate that JCPenny had to endure this experience, it has developed a significant message/ take away for the rest of the industry to learn from. It will take a lot for JCP to revitalize its image with lost customers, but I feel their history of strong customer service and attractive product lines will encourage benefit of the doubt in consumers minds. It is great that they are trying to reach new consumer markets, but JCP must not forget about those who got them to where they are today. They need to nourish previous relationships, while continuing to cultivate seeds within the upcoming consumers(younger families, young adults) to stretch their loyalty to JCP into the future.
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    I think all four of you nailed it! The last sentence of that article states "this will involve a lot of listening," and that is exactly what JCP needs to do. They need to listen to their most important voice, the consumer -- what do they want, not "what JCP thinks the consumer should want." Overall, as we have learned, you must start with the customer and build from there--this is what JCP needs to do to start moving in the right direction.
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    This was an interesting article that clearly showed that marketing plans are not one size fits all. What works for one company may not work for another, and JCP is an excellent example of a company that needed to do more research on their customers before implementing a plan. I was very surprised how little they did to look into what the customers were looking for. The troubles JCP is now experience is a warning to other companies to take a closer look at the consumer when creating new marketing strategies.
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    As everyone has stated, JC Penney is in hot water because they have lost sight of what the main focus should be: the customer. Without focusing on the customer, how do they expect to keep them coming back? The main aspect of customer loyalty is keeping customers satisfied in order to make them want to be a continuous customer. Because JC Penney is making decisions based on what they think customers want without doing any market research to back up these decisions, it is apparent that their customer loyalty, which in turn, affects their sales is dwindling rapidly. One aspect of the article that I could relate to was when the author talked about using test brands to see customer's responses to the brand. While working at my part time job at Express clothing, we would always be sent one or two items that we didn't have and would use them as "test items" to see if customers would be interested in buying the item. If the items were purchased, we let the manufacturer know and they would determine whether they would send us the item to sell. If not, we would not sell the items in our store. I think using a test brand is a great idea for JC Penney to try. By using a select few items from different brands, they can see what is successful and what is not and plan accordingly.
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    When I saw the changes JCPenney made in person, I thought it made their company look a little bit cheaper. While it was nice to see low prices, I still liked the more "department store" feeling with cash registers in every department rather than just in the front of the store. I agree with Kara about how Apple is its own "breed" because Apple is constantly innovating their products to be more user friendly to their customers and they are constantly listening to their customers, not to mention their top of the line customer service. It is also a lot easier to listen to your consumers when you have one specialized product such as Apple with electronics. JCP sells a wider variety of things from clothing, to luggage, to home goods, to shoes. With that being said, I believe it is a lot more important for them to listen to your customers because they have a wider variety of target customers.
anonymous

Marketers Have it Wrong: Forget Engagement, Customers Want Simplicity - 3 views

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    This article has great content about how marketers can master the consumer decision process. The article was written about a year ago, but the information is still very relevant and provides helpful tips on how to be most effective in this area as a marketer.
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    Making it easier on us will make it easier on the companies. I still wonder how companies can implement this in the retail industries. Turbo tax was a good example but I am curious as to how you can make it easier in retail because retail stores may offer same types of clothing but completely different prices, quality, styles. Can't really think of anything off the top of my head, but may be a good discussion question.
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    Interesting article! As I was reading it, I was thinking to myself about what I would want more, engagement or simplicity--and I do have to agree with them that simplicity would make things easier. In the last paragraph, the author states, "don't you think it's time to stop overwhelming consumers with marketing information and cut through the clutter?" I do think some marketing information is beneficial, but as a consumer, it would be nice to "cut through the clutter" and have things stated or marketed more simply.
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    I think simplicity comes into play especially with the way we view advertisements. If a company conveys a message simply and concisely with out me having to really pay attention or sort through more information I think I am more likely to buy it. Also simple images have more of a design appeal and I think our generation is more focused on aesthetics and the way things look and feel- and simplicity plays a large role in that.
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    I agree with Lina this is a tactic that would be hard to apply with clothing retailers, but it would be useful for electronic and appliance retailers. I was just on the Best Buy website, and for each product there was a whole page of information about its capabilities and features. They gave the option to compare products which helped to "cut the clutter". This was similar to Turbo Tax; there were options to choose four different products for a side by side comparison that gave a breakdown of the difference for the features and capabilities in just a few words. Best Buy is utilizing this simplistic tactic, and I personally love it!
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    I would have to agree with Megan on this point. There is a statistic somewhere that identifies the average amount of time a person spends actually observing an ad, and in that tiny time frame, there is no way you could pull away all the information many ads are trying to convey. This is why there is a great push these days towards image messaging as opposed to textual advertisements
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    Although this article is titled, "Forget Engagement, Customers want Simplicity" I think this article provides an excellent response: http://www.forbes.com/sites/rogerdooley/2012/07/03/ikea-effect/ Although it was written a little over a year ago, I think it makes a pressing point. Simplicity is good, but too much of it and you will push the consumer away. There is a fine line between obligating the customer to be overly involved in the decision making process, but we need to remember to leverage their spending power. Consumers feel confident about their purchased because THEY chose to purchase it, not because it was pushed into their faces. Marketers need to remember the value the customer receives from the invested interest in the product. Although simplicity is an efficient and beneficial advantage, it limits personal investment into a product which intern negatively affects the value it holds in the consumers mind.
Sarah Wesp

Holiday 2013: For Once Early Shoppers Get A Deal - Forbes - 5 views

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    This article explains ways retailers such as Toys-R-Us and K-Mart are using layaway, return policies, and reward programs to get consumers into their stores to ultimately make transactions. Can you think of other retailers who are implementing these types of incentives? Have any of you ever put something on layaway? Do you think these incentives/programs are beneficial for retailers?
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    I know I personally like to get any of my shopping done early that I can merely to avoid the holiday traffic and craziness that happens. At the same time, I always tend to end up with coupons or even small gift cards when I do shopping that are only valid within that 'prime' holiday shopping season. So, I think those type of programs really work because I always end up coming back to use them even though I had intentions of not shopping during that time. I also think it is interesting to look at retailers offering holiday type sales earlier and earlier in the year. I wonder what the limit will be as each retailer tries to trump the other. I also really like the extended return policy. That is EXTREMELY useful and could definitely be part of a deciding factor for me on who I shop with given that I could get similar products at each place.
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    I think for stores and shoppers can benefit from this model. Stores can increase their revenue but shoppers can shop early and have a way to afford a better holiday. It also encourages shoppers to come into the store more frequently and earlier in the season. It will be interesting to see if other stores adopt this model. I surprised Walmart does not have this as an option for some of their larger items.
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    Like Krista I wonder what the limit will be.. just keeps getting pushed back further and further. I know at J.Crew we just started implementing "holiday return policy". More than anything I think that offering such a guarantee offers a level of comfort to the customer. It makes them feel more confident about the purchase and more likely to buy it. I like the aspect of honoring online prices with store prices - very important.
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    I agree with Lina comment. The extended return policy is a ploy to get consumers in the store, make a purchase and know they have time to return it if they desire. Comfort, ease, and satisfaction for and of the customer will drive business.
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    I can't stand the thought of shopping really early for Christmas. Some of the things this article talked about really shocked me. The part about Walmart rolling out it's holiday shopping in August is not something I would find appealing. I think that takes the Christmas spirit out of Christmas completely. It's always a tradition with my mom to shop in November and December when it is acceptable to think about Christmas! I completely get the idea of budgeting, buying a few gifts here and there, but starting shopping in August? Not for me.
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    I actually really like this idea of offering deals to get people in the store early, it reduces the revenues lost with huge black friday price cuts by offering a more relaxed approach. It also would help the company make sure they don't run out of stock of a certain item. Having more customers in the store before the heavy Christmas shopping starts gives them a view on what will be popular and will help them forecast better and make sure they don't have missed sales opportunities.
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    I think extending the return policy is good because it allows for someone to use the products as gift for Christmas. I don't know what I think about having sales earlier. If they keep doing this, soon sales for Christmas are going to be six months out of the year then it's going to be all year; I mean how long is too long?
Camille Sampson

Target Knows Before it Shows... | Applied Data Labs - 7 views

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    What a great target market! Never thought that by targeting mothers that they would continue to shop at the same location they bought bottles from. Crazy to think how companies can know so much about someone! Poor father.. but I think Target moved in the right direction by making the coupons more random and less direct. This is definitely something to take into consideration when I, or anyone else for that matter, finds marketing jobs. Great article! Loved the insight.
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    Anyone else getting a website error when they try to read the article?
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    Wow, what a surprising twist in an a very insightful article! I had no idea Target acquired this much data on its consumers. To be frank it almost worries me a little bit how closely one is monitored by retailers. But as Lina said Target took better steps in randomizing coupons, which makes me feel a little better. This was a great contribution to the class Camille thanks! Megan, Try this link http://www.forbes.com/sites/kashmirhill/2012/02/16/how-target-figured-out-a-teen-girl-was-pregnant-before-her-father-did/ it's a very similar article to the one Camille posted!
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    What a great article. I had no idea the amount of data acquired about its customers. Like Lina and Kyle said it is a good idea to send customers a wide variety of coupons versus more direct coupons, which makes me feel a little less creeped out that target knows so much information about us. It is an interesting look on how companies acquire data to bring customers in and transform them into loyal target customers .. especially interesting to see that mothers are targets main target!
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    Target is one of those stores where I walk in needing one or two things and leave with five or six items I had no intention on buying. This article really shows how innovations in marketing research can boost sales immensely. I agree with Lina, Kyle and Sarah in that it is good that the coupons are more random so Target does not scare their customers away. I am interested to see what Target does their research on next because they have had such great success with the moms to be.
Lindsey Wacnik

Five Strategies for a Successful Follow-Up Campaign - 7 views

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    This is an article that gives advice on tactics that businesses should implement in order to create a positive follow up experience with customers after a purchase has been made. After reading the article can you think of any retailers that you have noticed that use any of these tactics particularly well or poorly?
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    These different ways to follow-up with a customer are fantastic. After delivering the goods, giving ongoing customer support is crucial to keeping the customer in your fanbase and to keep purchasing products from your company. The different ways to utilize an ancient tool (email) just goes to show that no matter how old a marketing tool is, it can still be effective.
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    I think a follow up is good and keeping a presence but it should have boundaries. I get the Xbox newsletter which gives new content and games added and also contests. It keeps its name running in my head and that makes me feel more involved. If I had an e reader though, I don't think I would like follow up e-mails about support, AN e-mail would be fine just to make sure the customer is used to the product and to outline the support they offer so I have something to refer to, anything past that, besides some news on new devices they are offering, would just seem annoying to me. If it is something available for them to seek out then my mind changes though. Using social media to "build the tribe" seems like a good idea as long as it is there to be sought out not pushed upon their customers in on-going e-mails.
Lina Goens

Five Things You (And Retailers) Might Not Know About This Black Friday Weekend - 4 views

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    Interesting facts for this Black Friday! "Webrooming" may be the new way to shop.
Krista Lawson

Abercrombie Isn't Alone: A Look at Other Brands That Have Shunned Consumer Segments - 9 views

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    I think the article is right to a certain extent, but the example of Abercrombie is a bit extreme. Obviously, every company tries to target a specific group of consumers but does that necessarily always have to imply that its marketing strategies are discriminatory? Shouldn't a company have the right to target a certain consumer base in order to ensure a profit? Or does the seeking for profit not justify any type of discrimination no matter how small?
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    I completely agree with Angelo here. A company has the freedom to sell to whomever they want, it would be business suicide to try to make everyone happy, especially in a specialty clothing store such as Abercrombie. In this case I do understand the reasons this is a big deal, a CEO talking about "good-looking" shoppers should be said in a more delicate manner if that is the message the person is trying to convey.
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    I only partly agree. On Abercombie's side, making such a statement is really stupid since it doesn't change anything in a positive way. "Good-looking persons" are not more likely to buy because he said that and those persons, whom he deems as not fitting into his stores will be deterred from going there. On sides of the customers it really doesn't matter. If a shop does not have clothes that appeal to or fit a group of customers then they simply won't go there. This logic can be applied to any other firm as well. It is just stupid marketing in my opinion to puclicly announce certain customer groups as "not welcome" in their stores. Those customers that can't identify with the brand won't go there or by the brand anyway.
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    I agree with the previous statement completely! It is one thing for a business to have a specific market, but make a public announcement of whom does not fit in that category was a poor move. It creates a negative connotation with the store, and it may sit poorly with some of their current and potential consumers. Some of the customers have friends that may not fit the target market; do you think that they will be deterred from shopping at Abercrombie when they are with this friend or friends?
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    This article focuses on three brands who have shunned specific consumer segments. Abercrombie and Fitch, Cristal and Burberry all have experienced issues in their process of market segmentation with offending specific consumers. Is offending specific consumers an inevitable consequence that all companies/brands will have to face? Not all brands can succeed with a one size fits all type of mentality, so how and when is it alright to completely exclude consumer segments? The types of people hired at these stores go through a specific process that is also discriminatory. For example, at A&F it is commonplace for only thin and attractive individuals to be hired on. Do we have a problem with this? How would we feel if we had the opposite type of individuals assisting us?
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    I agree with a lot of the previous comments. While I do not think it is right for brands such we Abercrombie to expressively shun people from their stores because they are not the right size or shape or do not have the right look, I think it's acceptable for stores to segment in terms of their "target customer." Whether or not to factor in different body types or "pretty people" is a controversial question. When I worked at Hollister in high school, it was apparent that they searched for attractive people by the way they sifted through customers that came into the store, or the way they approached people in the mall. While I understand the need to segment a market and have a target customer, I do not think the people that work at these stores or the customers that shop there should all be the same.
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