As you read in the Avon case study for Chapter 5, this giant cosmetics firm faces some major challenges due to significant changes in its target market. In addition to the marketing strategies (both successful and unsuccessful) mentioned in the case study, Avon is trying its hand at Web marketing. As you peruse the Avon homepage (http://www.avon.com), answer the following questions.

a) Given what you know about Avon's target market and Web user demographics, do you think that the Web is an effective medium for reaching these potential customers?

b) In light of many Avon reps' negative reaction to direct mail ads and toll-free telephone ordering, how do you think they will react to this homepage?

c) A handful of Avon reps tried to maintain Web homepages of their own for the purpose of selling Avon products, but Avon corporate stopped them from doing so. Why do you think Avon forced these reps to shut down their individual homepages? Is this fair?

Read the following article about recent changes in the consumer market for fast food, then answer the questions below.

http://www.franchise1.com/articles/fastfood.html

Using the concepts discussed on pp. 104-10 in the main text, summarize the demographic and geographic trends presented in this article. What does this analysis say about the interaction among the various geographic and demographic influences (i.e., age, gender, family life cycle, education, income, and ethnicity)?

Finally, choose one of the major fast food chains (e.g., Burger King, Subway, Wendy's, Taco Bell, etc.) and locate its Website. Based on what you find there, identify and describe the (apparent) ways in which this company is addressing these changes in the consumer market for fast food. Be sure to cite specific examples in your discussion.

While private demographics firms charge top dollar for consumer profile information, there is a wealth of demographic data available free of charge from the United States government. The U.S. Census Bureau maintains an extensive interactive homepage (http://www.census.gov) which can be used to research data, draw maps, and even pinpoint target market populations.

One of the most useful tools provided at this site is the "1990 Census Lookup," which you will find under the "Access Tools" menu. While this program does not provide maps, it will provide you with statistical tables for just about every conceivable demographic variable. These tables can be used by marketers to sketch the demographic profiles of cities, counties, states, and even the entire country.

a) After clicking on the "1990 Census Lookup" link, choose the "STF3C - part 1" database to access national demographic statistics. For this exercise, choose an ethnic group (i.e., Hispanic, Asian, etc.) and peruse all of the statistical table options available for that group. Make a concise list of these options.

b) Choose three of these options and print out the relevant tables for each. How can marketers use this information? For what kind of organizations (for-profit and not-for-profit) would this information be most useful? What are the ethical implications of using this kind of information?

Yet another way to access demographic information from the U.S. Census Bureau homepage (http://www.census.gov) is through the "Subject A-Z" link, which you'll find on the main menu. This link provides you with an alphabetical listing of topics. For the first part of this exercise, choose "Income." As you can see, the Census Bureau not only provides maps and statistical tables (see Ex. 5-3), but also articles providing descriptive summaries and analysis.

a) Print out a list of all resources available under the "Income" heading and sub-headings. You will notice that many of these are provided in Portable Document Format (PDF), which you cannot read unless you have the Adobe Acrobat Reader installed on your computer. This software is free and available for download via the U.S. Census homepage (look for the Adobe link).

b) Write a brief summary of all the major income trends you can identify. Were you surprised by anything you found? How can marketers use this kind of information?

c) Perform this exercise again, but choose "Education" from the subject listing.

Peruse the following homepages and answer the questions below.

Internet Shopping Network http://www.internet.net

CD NOW http://www.cdnow.com

How have these companies (and others like them) attempted to create an environment that encourages impulse buying? In general, would you expect the Web to be a likely medium for impulse buying? Why or why not? Have you ever made (or been tempted to make) an impulse purchase over the Internet?

The identification of alternatives step of the buying-decision process is influenced by three factors (see p. 113). Which of these factors is particularly relevant to the product research that is commonly performed by Web users? With this in mind, how do you think the Web has (and will continue to) influence this process in general?

For a hands-on experience of this process, imagine that you have identified the need for a new fax/modem for your personal computer (you may choose another product if you wish). Use all of the Internet tools at your disposal - including search engines, newsgroups, on-line publications, etc. - to identify your alternatives. Summarize your findings. How does this process compare to the way you used to identify such alternatives? What are the limitations of using the Web for this purpose? What are the advantages?

One well-documented disappointment among Web marketers is the slow rate at which products are actually sold (that is, purchased on-line) via the Internet. While the buying public has flocked to the Web to see what's there, they have been quite resistant to using this medium to complete a transaction, the most common example of which is an automated credit card purchase. Perhaps the expression, "You can lead a horse to water..." applies here. Why do you think that the general public has resisted this form of monetary exchange? How would you expect this to change over time? (Consider bank ATM's as a related example.)

The authors have listed some common patronage buying motives on p. 114. How do these factors apply to the on-line buying environment? Can any of them help explain the buying resistance described above? What motivational criteria might you add to this list in order to better characterize the on-line patronage environment?

a) Based on our experience with the Internet, would you characterize it as a commercial information environment or a social information environment? Why?

b) As you ponder this question further, imagine that you are considering the purchase of a Ford Explorer sport-utility vehicle. Two resources you might consult are:

The Ford Homepage http://www.ford.com

The Ford Explorer Usenet newsgroup rec.autos.makers.ford.explorer

Which of these would you characterize as a commercial information environment? Which represents a social information environment ?

c) Gather as much further information as you can about the Ford Explorer. For each resource you used, identify it as part of the commercial or social information environment. Which of these two types of information do you tend to trust more? Why?

For each of the following homepages, identify and describe the major social influences that each company is attempting to capitalize on. Keep in mind issues of culture/subculture, social class, reference groups, and family/household.

MTV - Music Television http://www.mtv.com

Wal-Mart http://www.wal-mart.com

Beech-Nut http://www.beechnut.com

The Web provides us with an interesting context for discussing situational influence. As a starting point, peruse the innovative Spiegel site (http://www.spiegel.com). Write a brief description of how this on-line shopping environment can be analyzed vis-à-vis the four categories of situational influence:

When Consumers Buy - The Time Dimension

Where Consumers Buy - The Physical and Social Surroundings

How Consumers Buy - The Terms of Purchase

Conditions Under Which Consumers Buy - States and Moods

Which of these factors are most relevant to the on-line shopping environment? Which are least relevant? What special considerations or challenges does this represent for Web marketers?

What are the potential advantages of on-line marketing in terms of situational influence? In general, do you think that on-line shopping makes situational influence more or less of a factor? Why? How might you expect this to change over time?