1.

Take-Aways of the week: What are your two personal Take-Aways (TAs) about
this week's material? (for each TA, be sure to answer the What? Why? and How?
questions mentioned above)

My first take-away from this week was the usage of atmospherics as a marketing
tool. This was impactful to me because it is very akin to something that my great-
grandmother would impress upon me. In everything she emphasized the idea of
“presentation, presentation, presentation”. This meant that what we did needed to
look good, sound good, smell good or tastes good. The same applies to
atmospherics, this is the idea that it is not just what someone is buying, but where
they are buying it at and how that place looks and feels, the atmosphere (Kolter,
1973). Lee, Noble and Biswas studied how the color gold effect tipping behavior,
how the hue effects the behavior, what associations the consumer may have with it
and how it fits with in the cultural lexicon (2018). This is just a small example of how
we have to look at the total package and experience of the consumer. This will help
me in my current position as we are in the process of designing and building a new
building. We have talked about design layouts, but it is also important to look at
what we are going to put in our lobby that will enhance the experience for our
clients, how to keep them calm and how to increase their comfortability.

The second take-away this week is the concept of a Brick-and-Click Company. This
was a new concept for me. I was very familiar with eCommerce and how those
companies operate, but did not realize that there was a name for the mixed
eCommerce and Brick and Mortar stores. I understand why some retailers were
resistant to embracing eCommerce as they could be in conflict with their channel
partners (Kolter and Keller, 2016). But it is important to have the opportunity to
purchase directly from the retailer. While there are many thing available on
Amazon, I would rather purchase directly from the retailers that I want to work with
versus going through a middle man.

2. Marketing Debate: Should National-Brand Manufacturers Also Supply Private-

Label Brands? (see textbook, page 552)

The short answer is yes, National-Brand Manufacturers should also supply Private-
Label Brands. While some worry that this could potentially dilute the National Brand or
create confusion for the consumer, it makes sense from a sales and segmentation
perspective (Kolter and Keller, 2016). Private brands see a surge during economic
downturns, which in turn hurt National Brands (Quelch and Harding, 2014). National
brands, by selling their goods to Private Labels for resell is able to capitalize on this
increase, while not directly selling to consumer. As it is more than 50% of U.S.
manufacturers of branded consumer packaged goods make private-label goods as well
(Quelch and Harding, 2014). So, in some ways they already are supplying private-label
brands. This idea works in conjunction with McNair’s “Wheel of Retailing” in which the
small new entrants to the market are highly aggressive, working to carve out their
portion of the market (Hollander, 1960). If this is done in conjunction with their direct
competition, all the better.

3. Mini-case study: Read the Marketing Excellence case study on Zara on pages

552-3 in the textbook. Answer this question: What can Zara do to ensure successful
growth around the world while maintaining the same level of market
responsiveness?

Zara’s has worked to keep and maintain control of every aspect of their business by
focusing on 4 strategies: Design and Production, Logistics, Customers and Stores. The
most important of these to examine are their stores and logistics. Zara continues to be
successful by both overcoming and embracing several of the disruptions of retailing.
They have done this by being consistent in their logistics, they distribute all of their
products from Spain. While this has worked well for them, to continue their same level
of responsiveness I would recommend that they look into a North American and Asian
distribution centers to increase their quick responsiveness. Zara’s does not run any
type of marketing campaigns, I think this works as a disadvantage to them, prior to this
article I had never heard of this brand. Brand recognition is important, without brand
recognition, the battle is lost. Zara’s has started to establish an online presence to
expand into China, Russia and Canada, before entering with retail store fronts (Kolter
and Keller, 2016). This is a vein that they should continue to pursue, especially in a
post COVID-19 world, storefronts have been hit hard across the world and an increased
online presence will allow any retailer, especially one like Zara to continue to progress.
This will allow them to become a global retailer and maintain their margin flexibility and
continue to remain profitable (Christensen and Tedlow, 2000).

References

Christensen, C. M., & Tedlow, R. S. (2000). Patterns of Disruption in Retailing. Harvard

Business Review, 78(1), 42–45.

Hollander, S. C. (1960). The Wheel of Retailing. Journal of Marketing, 25(1), 37.

https://doi.org/10.2307/1249121

Kotler, P. (1973). Atmospherics as a Marketing Tool. Journal of Retailing, 49(4), 48.

Kotler, P., & Keller, K. L. (2016). Marketing Management (15th ed.). Boston: Pearson

Lee, N. Y., Noble, S. M., & Biswas, D. (2018). Hey big spender! A golden (color) atmospheric effect
on tipping behavior. Journal of the Academy of Marketing Science, 46(2), 317+. https://link-
gale-com.library2.csumb.edu:2248/apps/doc/A526928805/AONE?
u=csumb_main&sid=AONE&xid=e62f62e5
Quelch , J., & Harding, D. (2014, August 1). Brands Versus Private Labels: Fighting to Win.
https://hbr.org/1996/01/brands-versus-private-labels-fighting-to-win.