Week 2

Where to begin? I don’t know where exactly to start. I suppose I will start where it seems most of the questions are coming from, the confusion between sales and marketing. In Cohen’s book he even confesses that his own confusion led him to turn down a very good job opportunity as the vice president of marketing. It is very important to understand the difference in sales and marketing.

Drucker explained by saying that sales focuses on the needs of the seller and thus the need to convert a product into cash, while marketing focuses on the needs of the buyer and the need to satisfy the customer through the products produced. I think this is the best way to state it. Marketing is really trying to create a customer base and brand value. We began talking a little about branding and that is exactly how I think of marketing. You are creating your brand identity and protecting your identity in the marketplace.

I think a great example of this that is taking place today involves the New England Patriots. In case you are not familiar with the story the here is a quick overview. Aaron Hernandez, a fairly prominent young player on the Patriots, was part of a murder investigation for about a week before police took him into custody on charges relating to the same murder case. About two hours after he was arrested the Patriots released him for the team and began doing everything thing in there power to make it known that they had no idea about this side of Hernandez’s life and even their owner Robert Kraft went as far to say they were “duped” by Hernandez. In the week following they offered their fans two days in which they could bring back any Aaron Hernandez jersey and exchange it for any other player’s jersey at no cost.

The Patriots were actually losing money by doing this. They also were sending a clear message to their fans that this is not what their organization is all about. They do not want Hernandez and his actions associated with the team. They are protecting their brand as an organization that conducts itself as outstanding members of their community and society. As the sage continues, I have been impressed by the marketing efforts from the top of the organization to the bottom.

I also think of the difference between retailers like Macy’s and JCPenny. Rarely do I see any promotional materials for Macy’s stating the prices of items. However JCPenny regularly does the opposite.

JCPenny uses its advertising dollars to help increase sales. While Macy’s tries to promote their brand. In the last year they have had ads showing all the celebrities whose items they offer all in the store together.

They try to send the message that they have everything you could be looking for at Macy’s. But also they look like they are having a little funny while they are working. Macy’s is a place you will go and be treated like a friend would treat you, or at least that is how they are marketing themselves. During the holidays they run TV commercials displaying scenes from recognizable movies throughout the years where people are asked where they got an item and they respond “I got it at Macy’s” or other ways Macy’s has appeared in countless movies. Every year they also hold the iconic Macy’s Thanksgiving Day Parade.

They are making themselves a part of your holiday tradition and by doing so they are tying themselves to feelings of family togetherness and holiday cheer. I can’t imagine how much it costs Macy’s to do this each year but the brand value that is added by doing it is likely just as high. Macy’s also offers a special mailbox during the holidays for children to drop off their letters to Santa.

They also offer a free smart phone app to track your holiday cheer and add to the “Believe Meter” they have in all their stores. None of these actions bring in money directly. However, they add to the overall impression the brand leaves on families.

 

JCPenny is known for their door buster sales and coupons the day after thanksgiving. This is a day that has become viewed in a slightly negative light, especially recently and JCPenny is tied closely to it in customers minds.

The other tradition JCPenny has been known for over the years is their Christmas Catalog. I know I looked at these for countless hours and made lists tirelessly to show my parents EVERYTHING I wanted that year for Christmas.

Likely these catalogs have caused countless headaches for parents and similar amounts of heartaches for you children.

Marketing can help sales when done effectively. Macy’s is certainly a profitable company. But when sales is the focus it can be troublesome for the image of your brand.

Also this week we talked about the vision of an organization and their mission statement. We learned that you do not want to make your organizational vision too narrow. I immediately thought of Cornelius Vanderbilt. Vanderbilt made a great deal of his fortune by shipping goods and people via water ways. He had countless boats in his fleet. If in his visions he limited himself to travel by sea then he would have missed the business that he is best remembered for. Vanderbilt sold his fleet and invested everything into the emerging railroads. One of his greatest achievements was building the iconic Grand Central Station in New York City.

Vanderbilt would have been successful without the railroads. But by seeing himself as a transporter of goods and not a sea transportation company, he allowed himself to stay open to a great opportunity that made him a legendary businessman.

Also this week we began looking at our PharmaSim simulation. I was excited when I heard we were doing this. I used something similar while finishing my undergraduate degree. My team was fairly successful with the simulation but the biggest take away was how much your strategy really means to your success. Many groups in our class had difficulties because they were constantly changing their approach to the market. As I continue to practice and “play” with the simulation, it seems this is the case with this simulation too. I will explore more as the next few weeks come but so far it looks like your success is dependent largely on the strength of your strategy and your execution of that strategy.

This week has been full of information but it has all been useful. I am looking forward to the following weeks and especially eager to continue reading Cohens book on Drucker.