Chapter–by–chapter aids: Chapter 9
CHAPTER 9 – COMMENTS ON USE OF SUGGESTED CASES WITH THIS
CHAPTER
Case 6: Applied Steel
This case can be used here to discuss what a “new” product is and the difficulty of winning acceptance for
a new product if there is not a strongly felt need. The problems that result from production–oriented new–
product development can be emphasized. The new product does not address customers’ current needs
and attitudes. Also, it does not meet standard specifications. The company has not worked with users
and/or buyers (structural fabricators and/or architects) to encourage them to write a modified set of specs
that would cover the “new” product. See case discussion.
Case 20: Blue Lagoon Marine & Camp
This case can be used to discuss the nature of competition facing manufacturers and retailers who are
selling more or less homogeneous products in market maturity. See case discussion.
Case 22: Bright Light Innovations
The Starlight Stove represents a different kind of new product. While the product does not appear to be
technically sophisticated, it does represent a breakthrough technology for its target market. While there
are other products that provide electricity, or the heat and cooking benefits of the stove, no other product
does both. See case discussion in Part V.
Video Case 3: Toyota Prius
In the early 90s, Toyota decided to re–invent the way automobiles are powered. Called Project G21
(Globe 21st Century), the development process began with generating ideas to achieve Toyota’s stated
objective: the creation of environmentally clean, fuel–efficient vehicles. In the video, Bill Reinhart, National
Manager of Toyota Advanced Technology Group, discusses the ideas considered and the criteria used to
evaluate ideas: double the fuel efficiency, use of current fuels, and features and styling consumers expect
in a car. In the end, the gasoline–electric hybrid car seemed to meet these criteria best. This case could
be used to discuss the product life cycle – for automobiles in general, hybrid vehicles, and electric
vehicles. While the market has changed since the video was created, it provides a great example of new
product development. For more details, see the Video Instructor’s Manual on the Instructor’s Resource
CD or the instructor side of the Online Learning Center (www.mhhe.com/fourps).
Video Case 8: Segway
This video tells the Segway story and discusses the marketing strategies pursued by Segway Inc. since
the introduction of the Segway® Personal Transporter (PT) on ABC’s “Good Morning America” in 2001.
Segway was developed as a breakthrough product – but it has been only modestly successful in
particular niches. Use this case to discuss new product development and commercialization. Did Segway
Situation: You are the marketing manager for a company that creates video games. A big competitor has
just released an action game that appeals to kids who own your best–selling game. Your competitor’s
release is a better game because it takes advantage of features available in a hot new video game box.
Your firm’s updated release won’t be available for at least 4 months. One of your game developers
suggests that you preannounce your game will be ready in 2 months—which is about as long as gamers
Part IV
Critics sometimes claim that companies often intentionally exaggerate how quickly a new product will be
available in order to keep customers from buying a competitive product. Of course, this can also backfire
if a firm develops a reputation for failing to deliver on its promises. To avoid unintentional problems in this
area, some firms have a clear policy not to make any advance announcement of plans (for new products
or anything else) until it is absolutely clear that the plans will be implemented and on the schedule
released.
This scenario provides an opportunity to discuss the ethics of providing deliberately false
preannouncements. The scenario suggests varying levels of questionable behavior – as the manager
must decide whether to be honest about the time frame (four months), exaggerate (indicate it will be
ready in two months) or simply say he does not know yet. Of course, the last two answers are not
completely honest, and our AMA Statement of Ethics (Exhibit 1–7) asks marketers to be honest. The case
allows for a deeper discussion of the issue by asking students how they would handle customer
The Marketing Plan Coach software on the text website includes a sample marketing plan for Hillside
Veterinary Clinic. Look through the “Marketing Strategy” section.
a. Hillside offers many different products. Identify several of these products and indicate where you
think each of them is in its product life cycle.
b. Exhibit 9-3 summarizes some marketing mix characteristics based on where a product fits in the
product life cycle. Is Hillside’s marketing plan consistent with what this exhibit suggests? Why or
Determining where HVC’s products fall in the product life cycle (PLC) requires some interpretation. While
most students should be familiar with the general market, it is not important that they precisely determine
life cycle stage. It is more important to understand their rationale for placing the product in a particular
stage. The table below classifies some of HVC’s products by life cycle stage and looks at HVC’s
marketing strategy and its fit with the recommendations in the chapter. An in–class discussion might ask
students if the chapter gives them additional marketing strategy ideas for HVC.
Chapter–by–chapter aids: Chapter 9
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Part IV
Chapter–by–chapter aids: Chapter 10
Instructor’s Manual to Accompany Essentials of Marketing IV–10-1
channel of distribution. Of course, the issues of competitive advantage and marketing strategy
apply to retailers (and wholesalers) in a channel just as they apply to producers. A big retail
chain like Barnes & Noble—with many retail stores and a strong presence on the web – is
likely to be familiar to most consumers (and students). Its stores tend to be large and thus it
offers a wide selection relative to a small bookshop. It enjoys economies of scale in promotion
and purchasing as well as in other operating expenses. For example, Barnes & Noble (like
Amazon) has very effective order entry systems and customer relationship management
databases as well as a system that is scalable to handle almost any number of books (and a
host of other products, for that matter). This is important (and a potential advantage over a
small shop) because it isn’t practical for each store to try to maintain an inventory on all books
it might sell. The inventory costs would be outrageous and many books would become
obsolete (for example, replaced with new editions with more current date) before they could be
sold. It would be impossible to predict precisely which books should be ordered, when they
should be ordered, and how many should be ordered..
A small bookshop might have a variety of advantages, depending in part on the situation. Most
successful small bookshops survive because they have very knowledgeable and helpful staff in
the store who “tune” the books on display to the interests and needs of the local market.
Another way to use this question for additional class discussion is to ask students not to focus
on the differences between the two types of retailers—instead to think about what consumers
want when they shop for books, how they shop, when they shop, etc. What is likely to occur in
such a discussion is students will describe a varied set of consumer behaviors that provide an
consumers, but not at all times.It depends on how particular consumers see a specific book (in
terms of product classes) at a given point in time.
A good way to move the discussion in this direction is to make the statement that a book might
fall into any of the product classes depending on the way people buy it, and then ask students
Convenience: A shopper wants to pick up whatever best seller is available and generally
finishes reading it by the next week, and then it’s time to buy again. The Barnes & Noble
website or nearby Barnes & Noble store offers convenience, but is it this highly convenient? A
local bookshop that is located next to a supermarket in a strip shopping mall might be more
convenient for that purpose, especially if the consumer wants friendly advice from a
salesperson who knows the customer’s reading preferences. Of course, that could occur at a
Impulse: A shopper goes to a Lowe’s home improvement center to buy some gardening
supplies, but then stops in a Barnes & Noble bookstore that is on the other side of the parking
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Part IV
IV–10-2 Perreault, Cannon, & McCarthy
lot to buy a book on roses. Would that consumer have driven across town to the local
bookshop? Maybe, but the urge to purchase might have passed if the book wasn’t purchased
Emergency: An executive rushing to get on an overnight airline flight to Europe doesn’t have
anything to read, so on the way to the airport she stops by a Barnes & Noble to grab a
paperback. The local bookstore isn’t likely to be open at that late hour, so it isn’t in the running
for her business. On the other hand, if it was open and had a more convenient location, it might
get the business. The bookstores in an airport enjoy many emergency sales.
Heterogeneous shopping: After a class on gourmet cooking, a would–be chef searches for a
great book on French cooking. Barnes & Noble might have a tremendous array of books, but if
a local bookshop is known for cookbooks, that might be what attracts this customer. Advice
from a person in the shop might be better, faster, and easier than searching through hundreds
of titles (or book reviews at a website).
Specialty: A manager gets a challenging new marketing assignment, and goes to search out
the newest edition of Essentials of Marketing to review basics and learn more about current
“best practices” in marketing. The fastest way to do that from the office, without eating into
personal time, might be to go to the Barnes & Noble website and place an order. The small
bookshop is not likely to carry the title (unless it’s in a college town), and delivery of a special
order at a small bookshop is likely to take longer than from a website that is geared toward fast
and on the information functions. For example, travel agents work as independent
intermediaries to help travelers as well as hotels, airlines, car rental services, and the like.
They provide information about travel services as well as costs and other advantages or
This question provides an opportunity for in–class discussion and review of the universal
functions of marketing (buying, selling, transporting, storing, standardization and grading,
physical good), but that thinking about the various functions helps a manager figure out when
and if an intermediary/specialist makes sense.
10– 3. This question relates to the discussion of direct vs. indirect channel systems – and adds an
international dimension.
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