Sunday, February 27, 2011

Homework for Chapter 4

EXERCISE 1: On first arriving on the FTD website, the viewer is presented with a special ad showcasing birthday arrangements.  Also, there is a separate tab near the header that is marked “Occasions”, which offers subcategories such as Anniversaries, Sympathy/Bereavement, and corporate gifts.  Using occasion segmentation combined with product segmentation facilitates the sale two ways.  First, it saves the shopper time by taking him directly to a showcase of products that are relevant to his interests, rather than having to sift through everything the florist has to offer.  Secondly, it helps those shoppers who are unfamiliar with the symbolism and “language” of flowers to make a selection that’s appropriate to the situation (e.g.; red roses are symbolic of romantic love, so it would be more appropriate to get an arrangement with white or pink flowers for someone who is just a friend).  In addition, by presenting the viewer with a list of common occasions for buying flowers, it might jog the viewer’s memory with regard to other upcoming events that they might want to order flowers for.

CASE C2: MONTANA MOUNTAIN BIKING
Question 1 – Classify MMB’s customers.  Estimate the percentage of MMB customers who fall into each of the five categories.  Support your classification with logic and evidence from the case narrative.
Given the high rate of repeat customers (80%, according to the description), it’d be reasonable to assume a similar proportion of customers (60-75%) are in the Familiarity or Commitment stages, probably skewing toward Commitment due to the fact that MMB caters to the serious enthusiast.  That would probably also mean that very few (I’d estimate 5-10%) have reached the Separation stage.  MMB has maintained a very consistent business plan for most of its life, giving customers little reason to be driven away from them; and the article makes it sound like mountain biking enthusiasts wouldn’t be quick to give up their hobby.  This would leave roughly 15-20% at Exploration or Familiarity.  I would suspect that slightly more (10-15%) are Exploring based on the traffic being driven by the amateur photography displayed on the site – they wouldn’t be inquiring about the photos if they understood that the website was almost exclusively geared toward biking tours.


Question 2 – In a report of about 200 words, recommend an e-mail marketing strategy for MMB.  In your recommendation, consider the results of MMB’s earlier print mail advertising campaign, your answer to the first requirement, and the potential offered by permission marketing.
Given that a large percentage of MMB’s customers are repeat visitors, I would recommend adding an option to their website that would allow users to submit their e-mail address so they can receive a monthly newsletter or updates regarding featured tours.  In those e-mail messages I would also include links to the photo galleries posted to the website; they are eye-catching enough to draw traffic all on their own, and the links are convenient enough for customers to forward the e-mail to friends who might be interested or are photo enthusiasts.  This strategy also works well with the fact that so many of MMB’s first-time customers are referred to the company by word of mouth.  I might also include a promotion where the repeat customer could receive a discount on his next tour if he refers a first-time customer to the site and they also book a tour.  I would also advise the website include a page for booking tours online, since new customers might be more likely to plan a trip if the option is immediately available on the site.


Question 4 – Prepare a report of about 500 words in which you outline an affiliate marketing strategy for MMB.  Include a description of the types of Web sites that MMB should attempt to recruit as affiliates, and present at least five examples of specific sites that would be good referral sources.
My first recommendation for marketing MMB to the serious cycling enthusiast would be to seek out other mountain biking tour companies in other states (e.g.; http://www.totalescape.com/).  The fact that 90% of MMB’s current customers live in other states, shows that biking enthusiasts are willing to travel considerable distances to indulge their hobby.  A banner network would work to each company’s mutual advantage – if California cyclists might be interested in taking a biking vacation in Montana, it’s also likely that Montana enthusiasts would travel to the Golden Coast to go mountain biking there.
Next, I would recommend recruiting affiliates who specialize in selling equipment and apparel to mountain biking enthusiasts, such as Dick’s Sporting Goods (e.g.; http://www.dickssportinggoods.com; http://www.rei.com/).  Mountain biking is not a cheap hobby; people who have made the commitment of buying their own bike are more likely to consider taking a vacation devoted specifically to their hobby.  Both REI and Dick's are nationwide chains with large customer bases, which would have the potential to drive a lot of traffic to MMB's site. And in turn, providing links and information about cycling gear would be a great convenience for MMB customers who are preparing for their next cycling tour.
Mountain bikers don't just need a bike in order to indulge their hobby, however; they also require proper clothing and safety equipment.  Stores that sell apparel and accessories for mountain biking e.g.; http://www.zoic.com/) also cater to the more serious enthusiast, and would help to drive more traffic to MMB's site.
The number of hits generated by the photographs on the MMB website suggests another potential customer: the outdoor photography enthusiasts.  If people are looking to purchase or use the photos, they must be of quite scenic vistas.  Many photographers are used to "roughing it" and traveling to remote locations in order to get their shot, so recruiting an affiliate like http://www.outdoorphotographer.com/ might convert some amateur and professional photographers into cycling enthusiasts as they combine their hobbies.  Companies that sell outdoor photo equipment (e.g.; http://www.kirkphoto.com/) might also make good potential affiliates if their customers are looking for new locales to shoot pictures.
Finally, the power of word-of-mouth for drawing in new customers might be leveraged by making hats and shirts available for sale with the MMB logo on them, through as site like http://www.zappos.com/.  This would allow our repeat customers to express their like for MMB and get other people talking about and asking questions about the company. 

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