Chapter 7: Business Marketing

Disney has witnessed the dramatic change in technology and how most of their consumers have stopped purchasing DVD’s. Instead people watch movies online and subscribe to such companies as Netflix where they are able to view many films online. As a result of this Disney has modified itself and now engages in business-to-business (B2B) e-commerce in order to advance their Internet marketing. Recently they have signed a deal with Netflix, sort of like a joint venture that allows, Netflix to stream all animated and live action films that Disney releases this deal starts early 2014, although Netflix has started streaming classical Disneys animations.

A strategic alliance is a cooperative agreement between business firms.

Disney has formed an alliance with Chase, which allows them to offer Disney-Rewards Visa and Credit Cards. This alliance will create Disney Cards therefore Disney can reward customers who purchase Disney merchandise/products in order to earn reward points creating more relationship marketing and loyal customers base who keep purchasing products to earn reward points in order to gain a reward.  Also this alliance will provide Chase with joint marketing opportunities across Disney's various business units. This Card would be issued by Chase’s credit card subsidiary. The benefits that came with this card allow consumers to earn rewards, which include: Disney Park vacations, videos and other Disney related merchandise.

Another one of Disney alliance would have to be with McDonalds. This alliance allows Disney to advertise upcoming movies by having McDonalds offer free Disney character toys with their happy meals. Disney knows that McDonalds is a world recognized brand and is very popular among young children, which happen to be one of Disney’s main target market. Consequently Disney has made this alliance enabling them to advertise to their target market, through McDonalds happy meal children are constantly reminded of the upcoming Disney movie.  On the other hand Disney allow McDonalds to exclusively open up their fast food chain restaurant’s in the many different Disney theme parks which earns Disney profit since while Disney visitors travel around the park they purchase their food at McDonalds.

Chapter 8: Segmenting and targeting markets

Disney land is consider a market and the 8 different lands that make Disneyland would be market segmentations which is the process of dividing a market (Disneyland) into meaningful, relatively similar and identifiable segments or groups.
8 Different lands of Disneyland:
1. Main Street U.S.A – This land is designed to resemble America in the year 1910 which would be appealing to a much older generation. This is an example of Age Segmentation.

"For those of us who remember the carefree time it recreates, Main Street will bring back happy memories. For younger visitors, it is an adventure in turning back the calendar to the days of their grandfather's youth." —Walter E. Disney
2. Adventureland- This land is themed to resemble a remote jungle somewhere in Asia or Africa far from civilization, with such characters as Indiana jones, Tarzan, Mowgli (Jungle book) and so on. In my opinion this would be gender segmentation since I believe overall males would find this whole theme more appealing then females.

"To create a land that would make this dream reality we pictured ourselves far from civilization, in the remote jungles of Asia and Africa." —Walter E. Disney

3. Frontierland- this is themed to the American Old West of the 19th century; Frontierlands are home to cowboys and pioneers, saloons, red rock buttes and gold rushes, also this land includes a petting zoo. This too me is like a combination of both age and gender segmentation since older generations would remember how America used to be and also gender segmentation since males find this theme more appealing then females since young boys like to play cowboys compared to young girls who like to play princesses.  But females may find this land appealing since it has a petting zoo and young children and individuals of all ages tend to like animals so they would love to be able to visit and pet the zoo animals.

Frontierland. It is here that we experience the story of our country's past. The color, romance and drama of frontier America as it developed from wilderness trails to roads, riverboats, railroads and civilization. A tribute to the faith, courage and ingenuity of our hearty pioneers who blaze the trails and made this progress possible. —Walter E. Disney

4. New Orleans Square- This is themed on the 19th-century New Orleans, in this square you find attractions such as pirates of the Caribbean, haunted mansion, and princess and the frog. This is appealing to both genders and maybe more appealing to older kids and adults then to young children, and this land could be a geographic segmentation because it may appeal more to a person from the Louisiana region in the U.S then someone from a different region in the states.

5. Critter Country- This land’s themed is Land of bears and other such animals you may find in the forest like squirrels rabbits etc. This land was themed to resemble forests of the Pacific Northwest. This land could appeal to any age or gender and could be geographic segmentation because it could appeal more to natives from the Pacific Northwest region.  

6. Mickey Toonland- this land is theme as home for toons (cartoons) it’s a small-scale recreation of the Mickey Mouse universe where visitors can meet the characters and visit their homes, which are constructed in a cartoonish style. This could appeal to all ages but I’m guessing this is more like to appeal to a young age group so this could be an example of age segmentation.
7. Tomorrowland- this land is themed as the future and space so I think this could be gender segmentation since I feel more this theme is more appealing to males.

A vista into a world of wondrous ideas, signifying Man's achievement. A step into the future, with predictions of constructed things to come. Tomorrow offers new frontiers in science, adventure and ideals. The Atomic Age, the challenge of Outer Space and the hope for a peaceful, unified world. —Walter E. Disney
8. Fantasyland- This land is themed as Disney’s animated fairy tales films. Each Fantasyland has a castle as well as several gentle rides themed after Disney movies. In my opinion this land would be gender segmentation since this is appealing to young girls since they are the target market for Disney princesses.

Here is a land of imagination, hopes and dreams. In this timeless land of enchantment the age of chivalry, magic and make-believe are reborn and fairy tales come true. Fantasyland is dedicated to the young and the young at heart, to those who believe that when you wish upon a star your dreams do come true.
—Walter E. Disney

Each land in Disneyland is segmented so that each land can somewhat appeal to a specific target market so that all genders and all age groups can enjoy a trip to Disneyland. I think Disney uses a undifferentiated targeting strategy approach to market Disneyland because Disneyland appeals to all ages and genders I think Disneyland is appealing to everyone since their is something for everyone in Disneyland. Not to forget 80/20 rule, which in this case is 20% of Disneyland target market is young children who generate 80% of the Disneyland demand.
To all who come to this happy place: Welcome. Disneyland is your land. Here age relives fond memories of the past, and here youth may savor the challenge and promise of the future. Disneyland is dedicated to the ideals, the dreams, and the hard facts that have created America, with the hope that it will be a source of joy and inspiration to all the world. —Walter E. Disney

The Four CMR Targeting Tool

Personalization- An example of this would be that Disneyland offers a exclusive service to young girls ages 3 and up to get personally pampered and get a make over to be any princess they wish to be so every little girl can live a day as her favorite Disney princess.

Time Saving- An example of this would be that Disneyland offer resort airline check-in, where customers collect their boarding pass and check their luggage bags while they check out of their Disney resort. This is convenient and time saving to the consumer who will appreciate this special service consequently Disney will earn loyal customers. Because we all know how stressful traveling can be waiting in long queues to check-in luggage, collect boarding tickets, compared to what Disney has to offer this service is very stress free, the guest just shows up at the airport presents their boarding pass and boards their plan relaxed and stress free no waiting in long lines or rushing around.

Loyalty-Disney offer a Disney rewards credit card which earns reward points every time it is used to make a purchase these points then add up to earn many different rewards which range from a Disney movie in the cinema, Disney merchandise or even a trip to Disney parks and resorts.

Technology- After a consumer visits a Disneyland or and Disney park or resort  and pay via credit card or book online their details are automatically saved on the Disney data base system therefore after there trip Disney will send them personalized letters or emails seasonally offering promotions or special events or credit card rewards special offers advertising their parks and resorts this is like personalized advertising reaching out to consumers individually so customers don’t forget about Disney and stay interested.

Chapter 11: Developing and Managing Products

The Walt Disney Company is one of the most successful family brands in the world. The company has been around since the 1920s, and it has proven to be one of the top innovative firms. Disney has many different product lines, which consist of: studio entertainment, parks and resorts, media and cable, consumer products, and Disney interactive.

Disney has managed to stay successful over the years because of their ability to innovate and add new products to each of its product lines. Each year Disney adds numerous new products to the many existing product lines actually quite often it’s like a domino effect. For example if Disney releases a new movie (addition to studio entertainment) they would also release character theme toys from the movie and many character theme consumer products, also they would add a new character themed ride in Disneyland and the many different parks and resorts locations and finally they would add a new cartoon show with the characters form the movie and also create a new interactive game with the characters from the new movie.

A perfect example of this would be when Disney purchased marvel and made Ironman movies. After these movies came out Disney produced many Ironman character themed consumer products this then lead to Disney opening a new ironman attraction at Disneyland also on Disney XD (Disney channel) started airing ironman cartoon plus Disney released ironman interactive games.

Key to Disney’s success is their ability to innovate and create new products they can add to their already existing product line. Disney’s mission statement says it all Creativity +Innovation= Profit

"The mission of The Walt Disney Company is to be one of the world's leading producers and providers of entertainment and information. Using our portfolio of brands to differentiate our content, services and consumer products, we seek to develop the most creative, innovative and profitable entertainment experiences and related products in the world."

Chapter 18 Social Media & Marketing

According to the MKTG textbook this chapter (18) discusses how much of an impact social media has on a firm. Social media have several implications for marketers and how they can interact with their customers.
1st marketers must realize they do not control the content on social media sites meaning they do not only need to have a great ad campaign but they also need to have a great product or service (customer service)

-What does Disney do to make sure they receive good content though social media?
The Walt Disney Company has a plan that sets targets in order to reach their overall goal that is to be successful/earn profit. These targets include making sure they keep their customers satisfied, keeping up a good reputation, relationship marketing and achieving the best quality merchandise and services which includes customer services. Disney makes sure they employ and train every personnel to be very polite and friendly. We can tell Disney has reached these goals by the many awards they have been awarded over the years; I have listed a select few:

• Disney named Most Reputable Company – Forbes, 2013
• Disney ranked No. 2 on World's Most Respected Companies list – Barron's, 2013
• World's Most Admired Entertainment Company – Fortune, 2012
• World's Most Admired Entertainment Company – Fortune, 2011

So even though Disney marketers have no control over the content on social media site they know they need to achieve high customer and brand loyalty sort of like an invisible hand where they want to gain profit and in order to do this they need to keep customers satisfied and happy, sort of like a multiplier effect. If they satisfy one customer with quality goods/services, and good relationship selling from Disney personal, this customer would then recommend Disney because of such great goods and services and also leave good reviews online and speak highly of the company to others who are then able to make more informed decisions on purchase they wish to make because of all the good things they find out about Disney. This cycle repeats its self over and over again, which therefore attracts more and more customers, to the point where Disney is nominated and receives such awards as the awards I listed above. These awards are posted on the official Disney websites and are very accessible to the public that gives customers even more reason to shop at Disney specially after reading high reviews written by previous consumers. Therefore this will only attract more customers and the main goal to start off with was to make profit and be successful and in order to achieve this Disney has accomplished many other things such as awards and customer loyalty which has made Disney what it is today “Most Admired Company, & Most Reputable Company.”

Disney Social Media
Just like many other companies Disney has many Facebook pages I do believe most of Disney’s main characters from their many different Disney animations have Facebook pages where Disney updates new information or products relating to the character. Also the main Disney Facebook page with the most followers has to be the Disney mascot: Mickey Mouse and this is where all the new information of any product/services and any Disney news or information is released 1st on the official Disney (mickey mouse) Facebook. Also these Facebook sites allow consumers to give feedback, which helps Disney make improvements that would better accommodate their consumers.
Disney’s YouTube channel would be considered as Owned Media since Disney created the channel and control the content that is being put up on YouTube.
This blog would be considered as, Earned Media since I am a consumer and I’m informing my readers of some Disney news & product information such as Disneyland and personal experiences I encountered while visiting a Disney location or store (customer feedback).

Disney has only been successful over the years because of their ability to keep up with trends such as this day and age social media is trending consequently Disney have jumped on board and joined this trend and used it to their advantage because of this ability to interact with consumers helps Disney make improvements and give customers what they want by listening to reviews and comments by making consumers feel they are appreciated and what they say does make a differences which keeps everyone happy at the end of the day customers get what they want and Disney earns more profits and customer loyalty.

Chapter 10 : Product Concepts 

The Walt Disney Company Product Line & Product Mix 

Product Modification From my previous blog I mentioned that the Disney Company made adjustments to the Disney store. This would be considered as Product modification to its Product line of consumer products, because they took advantage of the new technological era. They made developments to personal selling with new mobile checkouts after seeing how successful Apple were, being the first company to use mobile checkouts. Product Line Extension

The Walt Disney company made extensions to its product line of Parks & Resorts when they decided to open up more parks and resorts abroad such as, Disneyland Paris (1992), Tokyo Disneyland (1983), Hong Kong Disneyland (2005), Aulani Disney Resort (2011). Disney also plan on opening Shanghai Disneyland in 2015, and maybe in the near future Disney might even extend this product line to opening a Disneyland in Zimbabwe to be the first Disneyland in Africa.

Planned Obsolescence & Style Modification Disney has modified its product line of Studio Entertainment, by having products such as their VHS (videos) become obsolete because of the change in technology and become replaced by DVDs. Soon enough DVDs will be obsolete and Disney have already thought ahead and made agreements with Netflix’s to stream Disney movies online starting 2016.

Also all of the Studio Entertainment product line’s, brand names have been renamed from Buena Vista to Walt Disney Studio Entertainment or Disney. For example Walt Disney Studio Entertainment used to be called Buena Vista Home Entertainment, Disney Music Group used to be called Buena Vista Music Group and so on and so forth.

Repositioning Walt Disney has repositioned most of its media and cable products line but I shall only discuss Disney Channel, which was originally called, The Disney Channel. Disney changed the Disney channel by decreasing the amount of classical Disney films they aired and replaced them with Disney shows such as, Hannah Montana, Jessie, Austin & Alley, and Ant Farm in order to shift its target audiences more toward pre-teens but continue to cater to family audiences at night. Branding As of November 2013 The Walt Disney Company, placed 17th place on the Forbes “Worlds Most Val-uable Brands” list. From this information we gather that Disney has strong, brand equity, global branding and obviously as mentioned in every blog brand loyalty enough to earn 17 place for the “Worlds Most Valuable Brand” Disney Brand Mark is :

Co-Branding Disney has Co-Branded with many different companies but I shall only mention one company, which is McDonalds. McDonalds produces Disney character themed toys to give away with its happy meals which benefits Disney because every time a new Disney movie comes out McDonalds promotes/advertises it by giving away toy character with its happy meals. In the other hand Disney opens McDonald restaurants in their Parks so that visitors are exposed to McDonalds while in the park which is another form of advertising because its everywhere they look while traveling in the park. This is a win-win situation since McDonalds was also placed on the “Worlds Most Valuable Brand” list as number 6. Overall both brands have very strong brand equity & by working together they will only earn much more success.
 

Chapter 17: Personal Selling and Sales Management

Since personal selling is a direct interaction between a sales person and a prospective customer it offers many advantages because many question that can not be answered by an advert or promotion, but can be answered in person. The prospective customer can be specific about what exactly they want and then a sales person can recommend and advise products that would fit the customer’s requests.

Disney has been so successful over the years because they have been aware of their customers needs through relationship selling also known as consultative selling. Which makes sense since research has shown that positive customers-salesperson relationship contributes to trust increased customer loyalty. Speaking from experience I have never had a bad experience in any of the Disney store I have ever entered (in the U.S or U.K) this has lead me to believe that Disney makes it’s a must to train all employees how to be patient and very nice to all customers. This is an important step to help build strong customer loyalty because Disney employees are so nice customers feel comfortable and welcome to just walk in and look around, then when they have a question they can easily ask any of the approachable sales persons in the store who can recommend whatever the customers is looking for.

Selling in the technology age
Disney has been around for so long because their ability to modify and fit the market of their time. A perfect example of this would be of a previous article written in October 2009 that I’m able to talk about because of resent visits to the Disney store and speak of the changes that took place.

**In 2009 the Walt Disney Company decided to team up with Steve Jobs and his retailing team at apple to drastically change the Disney stores and customer experience. Disney’s traditional approach of displaying row after row of toys and apparel geared to Disney franchises has been given a high-tech makeover and incorporated into a new array of recreational activities (reading time/events that take place in the store). The goal, which has been achieved, was to make children clamor to visit the stores and stay longer, bolstering sales as a result.

In the near future Disney will adopt Apple touches like mobile checkout (employees will carry miniature receipt printers in their aprons) and the emphasis on community
(Disney’s theater idea is an extension of Apple’s lecture spaces). The focus on interactivity — parents will be able to book a Disney Cruise on touch-screen kiosks while their children play — reflects an Apple hallmark. Employees can use iPhones to control those high-tech trees.
 ** Brooks, Barnes. “Disney’s Retail Plan Is a Theme Park in Its Stores” The New York Times Oct. 13, 2009, A1 Web. Nov. 2, 2013.

This news article relates because we see how Disney has made changes to benefit its customers needs and wants making a more interactive store therefore more convenient for the customers by making it much quicker and easier to make a purchase instead of waiting in lines they can just make their purchase from an employee through a mobile checkout. Also incorporating recreational activity makes going to the Disney store a day out and people trend to spend money when taking their children out for the day.

Disney store E-commerce site is also very convenient and easy to use which clearly shows Disney does use a CRM system where customers take center stage and by providing many categories to choose from Disney  also has a personalize section on their website, where customers are able to customize their very own Disney products. Even if they don’t have a sales person with them to recommend or advise a product they can make their own decisions by reviewing previous customer comment about the products. Also because Disney identify customer relationships and make it a point to understand their customer base and capture customer data, not only do they develop deeper relationships but, also close more sales with loyal customers and receive positive feed back which attracts new customers to shop online or in store and this is a result because of Disney’s customer centric focus.

Everyday the world is changing therefore so is Disney and that is why Disney is so magical.

“Around here, however, we don't look backwards for very long. We keep moving forward, opening new doors, and doing new things, because we're curious and curiosity keeps leading us down new paths.”- Walt Disney

Chapter 16: Advertising Public Relations and Sales Promotion

Advertising is key because, without advertising we wouldn't know about half the products we use and we wouldn’t remember any brands. When Advertising is done the correct way it gives a company an advantage over its competitor such as,
creating brand preference to its products or services compared to its competitors.

The Walt Disney company spends billions of dollars on advertising, public relations and sales promotion every year and this is why Disney is not only ranked as the third most recognized brand in the world*, but also it is the only entertainment company with both brand and franchise equity.

 Disneyland advertising appeals have consisted of, fun and pleasure appeal “happiest place on earth” to attract young adults, health appeal(loving or romance)”where dreams come true” to attract families and couples, and most recently admiration appeal (celebrity advertisements) “where dreams come true” to attract fans.

An example of Disney using an advertising appeal would be, that this year Disneyland have taken a different approach by hiring renowned photographer Annie Leibovitz to capture celebrities in a series of portraits where they dress up in costume and bring some of the all time loved Disney characters to life. These celebrities include: Queen Latifa, Jenifer Lopez, Jessica Beil, Jennifer Hudson, Whoopi Goldberg, Tina Fey, Russell Brand, Will Farrell, Jack Black, Taylor Swift, Jeff Bridges, Penelope Cruz, Julienne Moore and Michael Phelps Scarlett Johansson, David Beckham etc.…   This form of advertising appeal is admiration since they are using celebrities to attracts fans to visit their parks where they to can dress up and act out and live out a whole day just like their favorite character.

Disneyland has an advantage in advertising since thousands of people visit it and buy Disney merchandise daily. This can also be considered as advertising since individuals who have not yet bought any Disney merchandise and do not intend to, will see someone with a Disney product that might catch their eye and make them want to purchase the same product because they like what they see or feel they might need it like a hat if it rains, or umbrella, bow to tie their hair and so on. For example like, if you were a young girl walking in Disneyland and you see women or girls with the Minnie mouse bows in their hair or children with the Mickey and Minnie mouse caps or children dressed as their favorite Disney character this may spark a need recognition/want  (result of imbalance between actual and desired state also a want is recognition of a need and a product that will satisfy it) which might make you want to purchase these products because they catch your eye and you might need it, like you might need  to tie you hair up, or its to hot or rainy and you need to cover your head, so you would convince your parent or yourself to get it. Then you would walk in to one of the many the Disney store in Disneyland and buy what you saw you might even end up buying more merchandise when you walk in since you have such a wide variety in the store which you would never have entered if you didn’t previously see most of the people in Disneyland with whatever item caught your eye in the first place.

Another example of Disney promotion would be Disneyland introducing their 2013 Limited Time Magic Promotion, Disney Parks installed a 25 feet tall, 9 feet deep and 15 feet wide castle in Times Square Manhattan.  It was assembled into 37 pieces, then boxed and driven to Times Square to reassemble – and each piece required a 15-ton crane to lift and place.  But, like the aspects of the new promotion, the castle was there for a limited time. To attract consumers and remind them how magical and fun Disney is

 Walt Disney is always advertising. They do not start, stop and then start again. They have a marketing budget and plan that’s designed to keep their message in front of audiences. You regularly see their ads on TV, in print publications, on the Internet. Also Disney continually sends direct mail pieces to past customers with varying offers. Disney’s promotions are designed to keep them in your mind. So when it’s time for vacationing, you think of going to Disneyland or perhaps another Disney park destination.