In this area we provide students with information that offers real-world examples of marketing's impact. The information presented here can be quite useful in understanding how marketing concepts are utilized.
Just about all basic marketing textbooks and marketing websites, including KnowThis.com, provide a detailed discussion of the Product Life Cycle (PLC), one marketing’s fundamental concepts. An integral part of understanding the PLC is knowing that new products may be adopted at different times depending on which category of innovation a buyer belongs. The adopter categories, which include Innovators, Early Adopters, Early Majority, Late Majority and Laggards, was created over 60 years ago with Everett Rogers' study of the agricultural industry. While many have criticized the idea that differences between when someone purchases a new product cannot simply be reduced to placing them in one of five innovation categories, much of what Rogers espoused still stands today.
Choosing the right price to charge is among the most complex of all marketing decisions. As we note in our Pricing Decisions tutorial, setting price is complicated because marketers must take into consideration both internal factors, which are those primarily controlled by the marketer, and external factors, which are outside their control. For external factors, what competitors charge is the most obvious factor marketers will consider. But another factor that is equally important is the expectation that customers have for what they deem to be a fair price. If customers are not happy with what they are being charged, then a marketer will struggle to be successful, even if their price is lower than their competitors.
Within the U.S. retail industry, by far the biggest names are Walmart and Amazon. However, these are big names for very different reasons. Walmart is at the top because of their brick-and-mortar presence in thousands of U.S. outlets. For Amazon, it is their virtual (i.e., online) and not physical presence that has brought them to a commanding retail position. In many ways, these two retail giants are pulling on different sides in a tug-of-war that will shape the future of retailing. On Walmart’s side are traditional store-based retailers that feel the customer experience takes place best when they can interact directly and face-to-face with the customer. These retailers believe connecting with customers on a personal level is the key to forming long-term customer relationships.