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Ohio Art is shifting its advertising and distribution strategy for a new line of construction toys aimed at adults called nanoblock. Distribution is focused on toy and hobby outlets, avoiding mass merchandisers, but Amazon.com also stocking and selling the nanoblock line. Digital marketing strategies are being developed for both promotion through Amazon.com and social media. In the midst of its efforts to shift marketing to new media, management is distracted by the media storm over an aide to presidential hopeful Mitt Romney, who commented that Romney's platform is "almost like an Etch a Sketch. You can kind of shake it up and we start all over again." The case describes a number of digital marketing strategies, including temporary price reductions implemented through Amazon's "Gold Box" deals. The case is a sequel to the A case, which describes more traditional advertising experiments for toys distributed through mass merchandisers.

This case is intended to be part of a first-year MBA marketing course, or a second-year elective in advertising, integrated marketing communications, market research, or marketing analytics. The case provides students with examples of two real advertising experiments and the challenges involved in executing the experiments. It allows for a discussion of the need for advertising experiments, and also, at a more general level, the need to measure the return on marketing. Biases surrounding the field experiments allow for a discussion of the problems with establishing a causal relationship between advertising and sales.

In this second part of a two-part case, the results of an innovative new pricing strategy for a venerated department store are reviewed and its positioning going forward is explored.

The new CEO and the new president of the J. C. Penney Company, Inc. (JCP), invigorate the company with a new pricing strategy based on "Everyday Fair Prices." Is the initial market reaction an indication of likely success? This first part of a two-part case contextualizes the initiative and provides a means of exploring differentiation in an evolving market.

Conventional wisdom holds that manufacturers and retailers see little benefit from unused coupons, but new research shows that unredeemed coupons serve as advertisements to consumers. In an experiment with eight retailers, the authors analyzed campaigns involving more than 500,000 targeted coupons for items representing more than 300 brands, mailed out over a 16-month period. They found that consumers who received but did not redeem coupons still typically increased their purchases in the associated stores. If businesses realized how powerful this increased awareness could be, they would take as much care with coupons as they do with other marketing materials, striving to delight customers, not simply to close a deal.

Red Bull spends an estimated 40% of sales on marketing, largely on sponsored events related to extreme sports. This brief case serves to frame an evaluation of Red Bull's marketing strategy in the increasingly populated energy drink market.

This is the second of a four-part case charting the influence of technological shifts on decision making in the light bulb industry. As Philips begins to challenge GE's dominance in the lighting market, it is not clear whether the emergence of compact fluorescent lamp (CFL) technology will change buying behavior significantly. The case supports exercises related to the determination of demand and breakeven requirements and capacity decisions in a shifting market.

Suitable for both MBA- and undergraduate-level courses such as integrated marketing communications, this case traces a product from idea to established, successful brand. A spirits industry executive perceives a gap between the under-$10 and the $25-and-up "prestige" vodkas. In this case he explores whether he could quantify the financial value of the awards his product has won. Would that be a good basis for the design of future campaigns: Decisions on pricing, target, distribution, branding, and promotion are considered in the A case (UVA-M-0774). The B case (UVA-M-0775) presents the results, which include the important benchmark of one million case sales by 2006. It also presents the founder's assessment of which initial decisions were most critical and explores the new choices he faces, including changes to the distribution channels and additions to the product line.

This note introduces search engine marketing as presented by Google's popular AdWords advertising program and as monitored by Google Analytics.

This survey of Google's rise to prominence as the de facto search engine of choice focuses on the theme of relevance as a guiding principle. As Google has diversified its offering through both organic growth and acquisition, the potential manifestations of relevance have multiplied, to the point where the nature of its market may need to be reassessed.

This third and final part of the case about a Google AdWords campaign for Motorcowboy, an online source of custom footwear, delineated the Darden team's recommendations for future efforts.

This continuation of the case about a Google AdWords campaign for Motorcowboy, an online source of custom footwear, recounts the Darden team's revised approach.

As part of the Google Online Marketing Challenge, a team of Darden students devises an AdWords campaign for Motorcowboy, an online source of custom footwear that caters to segments as varied as motorcycle police, cross dressers, movie buffs, equestrians, and plus-size individuals. When an initial keyword list yields low traffic, the team must adapt its approach. This three-part case illustrates the segmentation process and the relative merits of paid search over traditional mass media outlets. It also serves to underscore the importance of monitoring and adapting any advertising plan.

Spreadsheet supplement to case UV5778.

Pfeifer's Fine Olive Oil was formulated and positioned to serve as a heart-healthy, but slightly more expensive substitute for butter and margarine in cooking. With a narrow target market and growing product offerings and market potential, it was particularly important for Pfeifer's Fine Olive Oil to get the most for its limited advertising budget. The range of possible media for advertising its line of products was daunting. Would a media planning model (optimizer) that required executive judgments on several key inputs be helpful?

The marketing mix that a manager may deploy can affect the sales of a product and can be categorized under the traditional four Ps of marketing (product, price, promotion, and placement). But the perennial question managers face concerns the combination of these different marketing mix variables that will give them maximized sales, highest share, lowest inventory, or maximized margins. Quite often, these questions are answered by historical data: for example, past sales or market share for different levels of expenditures on these marketing mix variables. In this note, we consider the design of models that allow managers to obtain robust price and advertising elasticity estimates.

In the follow-up to the A case of the same name, this case reveals post-launch results for Tata's $2,500 car. Students learn about Tata's promotion, price, place, segment, targeting, and positioning for marketing "the world's cheapest car." This case series is effective for MBA, undergraduate, and executive learners studying market segmentation, pricing, cannibalization risk, pricing, and break-even sales in the face of different price and cost scenarios. Did Tata choose the right marketing strategy? Did the Nano represent an evolution or a revolution in automobile marketing?

This technical note introduces important metrics firms use to monitor customer relationships. An important summary of customer activity is the profit the firm receives from each customer. Customer profit (CP) is the metric that summarizes the past financial performance of a customer relationship and is covered in a companion note, ""Customer Profit"" (UVA-M-0799). The central difference between CP and customer lifetime value (CLV) is that CP measures the past and CLV looks forward. This note addresses the forward-looking metric that attempts to put a dollar value on a customer relationship. This technical note is an excerpt of the more comprehensive treatment of customer metrics found in "Customer Profitability" (UVA-M-0718).

This technical note introduces important metrics firms use to monitor customer relationships. The note begins by discussing how to count the firms' customers and keep track of their activity using the concepts of recency and retention. An important summary of customer activity is the profit the firm receives from each customer. Just as some brands are more profitable than others, so too are some customer relationships more profitable than others. Customer profit is the metric that summarizes the past financial performance of a customer relationship. A companion note, "Customer Lifetime Value" (UVA-M-0800), addresses the forward-looking metric that attempts to put a dollar value on a customer relationship. This technical note is an excerpt of the more comprehensive treatment of customer metrics found in "Customer Profitability" (UVA-M-0718).

Spreadsheet Supplement for UV2930.