CONSUMER BEHAVIOR] 4. Demonstrate how a marketer could use neuromarketing to advance the cause of his produc(7). You may use any example you choose for your demonstration. /NO PLAGIARISM/ 90 - 100 WORDSCraftomanias is facing strong competition in the retail stationery market. ManiCrafts, a new discount craft-store chain, is opening stores in many of Craftomanias market areas. Craftomanias has been a leader in the craft supply marketplace due to the companys superior customer service provided by a well-trained and compensated retail staff that are experts in crafts. Customers have enjoyed the opportunity to gain advice and ideas from the companys talented workers over the years, and customers are loyal to the committed staff. However, the new discount chain is drawing away customers by recruiting the experienced staff from Craftomanias. Adding experienced staff to the lower prices at ManiCrafts is quickly drawing business away from Craftomanias, and company executives are concerned.

The sudden employee attrition at Craftomanias is a top priority for the new Director of Human Resources Elizabeth Groovy (Lizzy). Her initial evaluation of the situation suggests that the company needs to examine its benefits offerings. Craftomanias has done well at recruiting and training staff; however, little attention has been paid to the company benefits offerings to complement the competitive employee pay. While the company pays its employees above market-average wages, it has slowly changed benefits offerings in response to cost concerns. In the last five years, employee contributions to health-care premiums have increased, and the company has scaled back its contribution to the employee retirement plan. While these changes have helped the company control benefits costs, the changes have led to frustration by the employees.

ManiCrafts has capitalized on employee dissatisfaction at Craftomanias by offering a generous benefits package to draw away workers. The frustrated employees that have moved to ManiCrafts have accepted minor pay cuts in exchange for benefits that better meet their needs. For example, many of the company workers are old, and their concerns about retirement benefits, in particular, are more pronounced as they know retirement is not far away. Part of ManiCrafts strategic planning process to grow its market share which includes determining the types of benefits that would be attractive to these workers. Thus, ManiCrafts offers a retirement plan that provides more significant contributions to the company than Craftomanias plan provides. Given the successful recruitment of so many Craftomanias workers, it seems that ManiCrafts planning was effective.

Lizzy knows that the company needs to make some changes to its benefits plan. However, she also knows that it is important not to make any hasty decisions in response to this challenge. Lizzy needs to begin collecting information to start the planning needed to determine appropriate changes to Craftomanias benefits plan. 1) What kind of strategic planning approach is Lizzy taking for Craftomanias? Is this an effective approach? Justify your answers.