Napster’s latest: Best music-subscription deal ever?

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If you routinely buy at least five songs per month, here’s good news from Napster: A new subscription plan nets you five DRM-free MP3 downloads and unlimited streaming for just $5 monthly. In other words, it’s like buying the songs you were buying anyway and getting unlimited streaming for free.

Source: CNET.com

Date: 5/19/2009

Keys: Marketing, strategic marketing, product development, strategic alliances

Link: http://news.cnet.com/8301-13845_3-10244574-58.html?tag=mncol

Questions for discussion:

  • Do you agree with the view that this deal is the best in the marketplace? Why or why not?
  • How would you market music downloading services?
  • Which target markets would you select? Why?
  • Which markets would you avoid? Why?

HOW TO CREATE MARKET-FOCUSED PRODUCT WINNERS

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The dustbin of business failures is full of once sharply focused companies that lost their way because they diversified across too many markets. Market focus wasn’t all that was lost. So were positive cash flow and a customer who, instead of seeing clear choices and remaining loyal, became confused and bought a competitor’s product. This Ivey professor describes why market focus is imperative today and how managers can create and sustain it.

Source: Ivey Business Journal

Date: March/April 2009

Keys: Marketing, strategies, technology

Link: http://www.iveybusinessjournal.ca/article.asp?intPrintable=1&intArticle_ID=749

Questions for discussion:

  • Do you agree with the arguments presented by this author? Why or why not?
  • What other explanation might help explain the loss of business by these firms?

GM slashes dealerships by 40%

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The automaker plans to cut its dealer network to 3,600 by next year.

Source: CNNMoney Reports – video report

Date: 5/15/2009

Keys: Marketing, distribution, brands

Link: http://money.cnn.com/

Questions for discussion:

  • Do you agree that the existing dealership networks at GM and Chrysler had grown too large?
  • How do you think future car buyers will be affected by the reduced number of GM and Chrysler dealerships?
  • How could this decision turn out to be a good one for the remaining dealerships and the car companies?

FTC declares war on car warranty ‘robocalls’

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Federal regulators file lawsuits to shut down a telemarketing scam targeting millions of consumers with phony auto warranties.

Source: CNNMoney.com

Date: 5/15/2009

Keys: Marketing, government regulation

Link:  http://money.cnn.com

Questions for discussion:

  • What would you do if you were able to change the current laws regarding telemarketing in general and telemarketing that is found to be dishonest?
  • Are surprised by the amount of sales this fraud was able to generate?
  • Why do you think people responded to this solicitation over the phone?

Google Relaxes Trademark Restrictions in Ads

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Google will begin allowing advertisers in the United States to use trademarked terms in their advertisements — including ones they don’t own — a move designed to revive its sagging ad revenue but likely to irk brands that are already chafing at Google’s fast-and-loose policy toward trademark protection.

Source: Clickz.com

Date: 5/15/2009

Keys: Marketing, advertising, legal issues, trademark,  technology

Link:   http://www.clickz.com/3633754

Questions for discussion:

  • There are a host of reasons why trademarks and brand names are legally registered as a means to protect the owners. Google’s policy can hurt a firm in many ways: suppose a vendor of an unknown athletic footwear brand “X” creates a Google ad using a well known brand “Nike” to draw shoppers. For example, the Google ad might say “Nike runners at unbelievable prices”. However, after clicking on the ad, the shopper might be presented with the offer to buy brand “X” instead. Do you think Google is “safe” from irate vendors if it allows these sorts of trademark infringements?
  • Is this a good strategy for the vendors of brand “X” to follow?

Blowing Up Pepsi

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PepsiCo Americas CEO Massimo d’Amore has been rebranding Pepsi’s core products top to bottom. Creative destruction—or just destruction?

Source: Business Week.com

Date: 4/23/2009

Keys: Marketing, product development, strategic alliances

Link: http://www.businessweek.com

Questions for discussion:

  • Which strategies do you think are good ones and which would you disagree with? Explain your thinking.
  • Where do you see the beverage industry competitors five years from today?
  • What do you think Pepsi will look like in terms of brands, product mix etc.?

Buffett’s investment advice

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The legendary investor says the last thing you should do is buy and sell stocks for quick profit.

Source: CNNMoney Reports – video report

Date: 5/07/2009

Keys: Finance, investing, stock markets

Link: http://money.cnn.com

Questions for discussion:

  • According to Buffett, ignoring the “ups and downs” and only looking at the long term “average price” paid for stocks makes sense if you have a long time horizon and the stock market consistently increases. Do you think Buffett’s advice makes sense today for young as well as for older investors?
  • What do you think he means by the term “saver” as opposed to “investor”?
  • How do you think the stock market will perform over the next few years? Explain your answers.

Transparent plastic solar cells fitted into windows

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Solar company Konarka has developed a transparent solar cell that it hopes will be built onto electricity-generating windows.

Source: CNET.com

Date: 5/08/2009

Keys: Marketing, product development, strategic alliances

Link: http://news.cnet.com

Questions for discussion:

  • Is there a market for this innovative product?
  • Is the company making a mistake by trying to compete with conventional solar electricity-generating products?
  • What sorts of special applications (products) could make use of this innovation?
  • How would you go about setting a price for this technology?

News Corp. Sees Big Drop in MySpace Ad Revenue

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News Corp. reported a 16 percent decline in ad revenue within its Fox Interactive Media (FIM) subsidiary, which includes MySpace. The company said the unit saw reductions in both brand and performance-based advertising.

Source: Clickz.com

Date: 5/07/2009

Keys: Marketing, advertising, strategic alliances, technology

Link: http://www.clickz.com/3633666

Questions for discussion:

  • This report demonstrates how difficult it remains to generate online advertising revenues. What do you think of the prospects for online advertising revenue growth?
  • How well do you think advertising revenues will perform at social networking sites such as MySpace?  How about at the WSJ Online? Explain your answers.
  • Are there other revenue sources that could work at these web sites? Describe them.

Chrysler deal moves a step closer

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Wall Street lenders opposed to U.S. plan to reorganize carmaker throw in towel. Control of company by UAW and Fiat looking more likely.

Source: CNNMoney.com

Date: 5/08/2009

Keys: Finance, management, government, labor relations

Link: http://money.cnn.com

Questions for discussion:

  • Why do you think the remaining hold-outs accepted the terms for restructuring the ownership of Chrysler?
  • Do you think the new Chrysler will be successful?  Explain your answer.
  • How do you think the new government and labor union ownership will affect the management and operations of the firm?
  • Do you think some people might avoid buying Chrysler in the future? Why?