Peru had t-shirts that were similar to the brands of Puma or Adidas but they were altered to incorporate something from the country.
A Marketing Journal
A Marketing Journal
Friday, July 6, 2012
i is for international.
Peru had t-shirts that were similar to the brands of Puma or Adidas but they were altered to incorporate something from the country.
a is for american.
Fun fact: Americans
stick out. Badly. We walked around in our large group, talking in English, and
confirming the stereotype that we are indeed LOUD. Because of this we are
targets for merchants, restaurants, and thieves. I fear that some of this will
be reiteration but hopefully the majority will be original.
There were many
different ways that we were promoted to on our trip. One of the major ways was
through word of mouth. We got information from our directors, hotel staff,
people on the street, and SEED interns. We asked for directions, opinions, and
lots of places to eat. The hotel in Cusco directed us to a laundry place that
was extremely far away and one of the faculty in Trujillo recommended an
amazing chicken restaurant that I ate at four times.
People will appeal to
our nature to spend and to spend a lot. Again, there were many people who would
usher us into their restaurants with empty promises. There was an experience
that I had in Cusco that took advantage of my nature. Cusco is filled with
culture and color. While walking near the cathedral I was approached by two
girls. They were the epitome of a stereotypical Peruvian complete with the dark
eyes and colorful apparel. They held lambs in their arms. I never stood a
chance. My heart was taken advantage of as they asked if I wanted a picture. Of
course I did! Afterwards, they didn’t ask for money, just a donation to build a
new school for children. They stared up at me with those dark eyes and I ended
up giving them ten soles.
g is for goods.
I feel like I could
talk about the shopping on this trip forever. There were many different types
of shopping experiences. In Argentina, they have a tourist area called Florida
Street that is filled with hundreds of shops and restaurants. There are
different types of shops though. There are higher end shops and then there are
more dowdy shops that are willing to barter with you. A lot of the shops have business
cards that they will give you so that you can come back.
In Brazil the majority
of our shopping was done in markets. The two main types of shopping are through
shops or markets but there are also street vendors. You can definitely tell the
class of the area by the shopping. If you shop in the tourist area of Buenos
Aires then everything is very expensive. If you find yourself off the beaten
path then the shopping is more geared toward the countries poorer population as
opposed to tourists.
The exchange rates
definitely affect your shopping experiences. There is a lot of math involved. Cusco,
Peru was the cheapest shopping area we experienced. Across the street from our
hotel there was a huge building filled with booth after booth filled with
various goods. The streets were lined with shops and vendors. The art that I
purchased was from a young man named Juan. The art vendors would wait outside
of our hotel and try and sell to us when we emerged. Sometimes you would stop
and look to be polite and they would try and charge you for looking if you didn’t
buy anything!
c is for consumer.
As I have said in past
posts, we had the opportunity to visit many businesses. It was really
interesting to see the differences between business in South America and
business in the United States. One aspect that is same is the importance of
consumers. Customers and stakeholders are an important part of any business and
it was fascinating to see how they addressed those needs.
We visited the
business of Arcor which is a candy confectionary business. Not only did we get
to sample the product but I remember that we discussed the impact of the
economy on their production. I was really impressed to hear how they took their
consumers into account when making decisions regarding the production of
certain products.
Natura is a cosmetics
company in Brazil. They are similar to Avon. A lot of Natura’s employees are
also customers. I was impressed with how Natura treats their employees. Not
only do they get delicious lunches but they also have an expansive day care
system so that women can have the opportunity to work. Natura focuses on giving
their customers the best product that they can create.
Promperu is a Peruvian
company that focuses on tourism for Peru. Tourists are the consumer and their
job is to convince us to travel to Peru. One of the tactics that they used is
bringing celebrities into the country and then using that publicity. Also, they
try and inform potential tourists about all the opportunities that the country
holds. I appreciated the honesty that this company displayed both in its presentation
and in its own marketing endeavors.
b is for bartering.
Bartering in South
America was an experience, to say the least. I struggled quite a bit because I
didn’t speak Spanish and every transaction required the help of one of friends.
There is definitely a pricing difference between bartering and non-bartering
situations. You really get a hard look at the standard of living that they
experience. In some situations, I found myself giving up on bartering just so
that they could have a little extra. I mean, I had the money so why not?
Bartering will almost
always get you cheaper prices than a shop. We learned various tactics to use in
bartering situations. A lot of the time we offered them deals where we bought
more than one item. I noticed that they were more willing to lower the
individual price when they knew that there would be more sales. Also, if you
make an offer and they refuse you can try walking away. Every vendor is
different. I encountered some that would have you name the price and then there
were some that would stand firm no matter what.
I was really impressed
by the quality of the products. While some were a bit dingy, there were many
that had a lot of talent expressed in the goods. The art that they sell are
original pieces and there was a woman who carved figurines out of matchsticks.
There was also lots of leather, metal work, and hand woven work. Regardless of
my purchasing decision, I would always compliment them on their work.
At the end of the day,
it’s hard to barter because you know that you are the only thing that stands
between that person and your money. You know that they may not have sold
anything that day and that they may have children at home that rely on their
income.
t is for tourist.
When you travel it is
really easy to get sucked into things that target tourists. Particularly
shopping. The people are masters at manipulating tourists and trying to squeeze
more money out of us. This is extremely noticeable at places like Machu Picchu
and the Cristo Redentor.
At the Christ the
Redeemer statue there were shops and small eateries that tourists could stop
at. I noticed that the shops and food items were very overpriced, which was to
be expected. Fortunately, I knew that the items they were trying to sell sold
for a quarter of that price at the market near the beach. The problem is that
there are tourists that will actually pay those prices just because it’s “authentic.”
When it comes to the
bathroom and food, they have a huge advantage because tourists are lazy. We
will pay for the convenience of a drink at the top of a mountain because it’s
hot and we don’t want to wait until we get to the bottom of the mountain.
At Machu Picchu they
try and get as much money as possible and because they’re on top of a mountain,
they can. They even go to the extreme of charging money for the bathroom. At
the beach, vendors will come around and try and sell you overpriced goods and
take advantage of your supposed naiveté.
I think that it is a
very interesting marketing aspect that they charge more in tourist areas. This even
occurred in the more touristy areas of the different cities.
p is for purchasing.
My buyer behavior
varied a lot over the course of this trip. I noticed that at the beginning of
the trip I tried really hard to try and conserve my money. I knew that I had a
limited amount of funds in my bank account and so I did my best to budget for
the various locations on the trip. It was hard because I wanted to be very
cavalier in my spending because I was in a foreign country. My thought process
was, “when am I ever going to be back here?” I also wanted to purchase certain
items for my family. I did a lot of my budgeting with food so that I could have
more money for souvenirs and it was very easy to eat for a small amount of
money.
I noticed that as the
trip went on I was a lot freer with my money because I had budgeted so well at
the beginning and I had extra money. We started out in Argentina and then we
went to Brazil and ended in Peru. I knew that Argentina and Brazil were going
to be more expensive than Peru so that also affected my purchases. It was
easier to shop in markets where you had the opportunity to barter. When you barter
it makes you feel like you are getting a deal, even if you’re not. Also, in
smaller markets it is easier to be affected by the emotional aspect of
purchasing. When you see really poor people and they have their small children,
it breaks your heart and makes me less willing to barter.
d is for deception.

Taxi drivers are also
guilty of this. In Peru the cabs don’t have meters and you negotiate the price
before you leave. We were grossly overcharged on our way to the beach and were
not informed until later. When we arrived at the beach we set out to rent wet
suits, boards, and a lesson. We agreed to pay thirty soles and when we went to
pay we were charged thirty three.
The most upsetting
overcharging took place at a meat restaurant in Argentina. They lured our group
in with promises of free items. Not only did we not receive the items, when we
went to pay they decided to charge us an extra seventeen pesos per person! It
was a ruthless marketing tactic. When we inquired as to the reason for the
charge they explained it was for sitting at the table and they had to do the
laundry for the tables. No one else in the restaurant received such a charge. We
were extremely angry and the rest of the trip we always asked about hidden
charges before we sat or ate the “complimentary bread.”
s is for swag.
In marketing we
learned that S.W.A.G. stands for Stuff We All Get. As this was a business study
abroad, we had many business visits. We were able to tour or have presentations
from Arcor, Natura, Buenaventura, and Promperu. The majority of the visits
provided us with food and drinks and some of them offered us SWAG. We received
hats, pens, t-shirts, mugs, bags, and notebooks. It was interesting to connect
this aspect of marketing to our business visits.
Another fun fact?
There are undergarment shops everywhere. They have no shame. Victoria’s Secret
has been exposed in South America more than once.
f is for food.
One of the best parts
of this trip was the food. From fresh coconut to fried guinea pig, South
America had a lot to offer. Similar to the United States, many food
establishments had various deals. There was a small market in Cusco, Peru that offered
a soup, entrée, and drink for fifteen soles which is approximately six U.S.
dollars. The difference is that you can barter the price of the food depending
on where you eat. I thought that was a really interesting difference.
Another marketing
tactic that they used to their advantage was the persuasion of human contact. A
lot of the higher end restaurants will have people that stand in front and try
to persuade people (as they walk by) to eat at the restaurant. The people, typically
men, will entice you with free appetizers or spirits which is a good way to get
big groups to eat at their restaurant.
One of the problems in
South America is that the service is nowhere near the caliber of the United
States so it requires a lot of patience. In Trujillo, Peru some friends and I
had a misunderstanding at a chicken restaurant. The guys ordered a plate that
included a free Pepsi (as you can see in the picture). As we sat and waited for
our food, the combination of hunger and exhaustion took its toll. The guys in
the group started complaining about how in the United States if the food was
this late it would be complimentary. Already frustrated, disaster struck when
the waiter tried to charge us for the Pepsi’s that were supposed to be
included. If we had been required to pay this would have been a case of false
advertising. Fortunately, they did not charge us for the drinks.
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