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1 Chapter 01
2 Marketing in Today’s Business Milieu
1.1 ETHICAL DIMENSION 1
Ethical Perspective
1. Nike: How would you prioritize what are often two conflicting demands: consumer product
performance expectations and the demand for ecofriendly products?
2. Consumers: Would you choose a Nike shoe that provided less comfort but was more
environmentally friendly? Would you pay a premium for an environmentally friendly Nike
shoe?
3. Environmental groups: Nike took almost two decades to create a new sole for its air
cushion; would you allow a company that much time to deal with an environmentally
damaging product?
1.2 KEY TERMS
marketing management The leading and managing of the facets of marketing to improve
individual, unit, and organizational performance.
marketing’s stakeholders Any person or entity inside or outside a firm with whom marketing
interacts, impacts, and is impacted by.
societal marketing The concept that, at the broadest level, members of society at large can be
viewed as a stakeholder for marketing.
sustainability The practicing of business that meets humanity’s needs without harming future
generations.
value A ratio of the bundle of benefits a customer receives from an offering compared to the
costs incurred by the customer in acquiring that bundle of benefits.
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exchange The giving up of something of value for something desired.
production orientation The maximization of production capacity through improvements in
products and production activities without much regard for what is going on in the marketplace.
sales orientation The increase of sales and consequently production capacity utilization by
having salespeople “push” product into the hands of customers.
marketing concept Business philosophy that emphasizes an organization-wide customer
orientation with the objective of achieving long-run profits.
marketing mix (4Ps of marketing) Product, price, place, and promotion—the fundamental
elements that comprise the marketer’s tool kit that can be developed in unique combinations to
set the product or brand apart from the competition.
customer-centric Placing the customer at the core of the enterprise and focusing on investments
in customers over the long term.
differentiation The target marketing approach that involves developing different value offerings
for different targeted segments.
market orientation The implementation of the marketing concept, based on the understanding
of competitors and listening to the market.
customer orientation Placing the customer at the core of all aspects of the enterprise.
relationship orientation Investing in keeping and cultivating profitable current customers
instead of constantly having to invest in gaining new ones.
one-to-one marketing Directing energy and resources into establishing a learning relationship
with each customer and connecting that knowledge with the firm’s production and service
capabilities to fulfill that customer’s needs in as custom a manner as possible.
mass customization Combining flexible manufacturing with flexible marketing to greatly
enhance customer choice.
Marketing (big M) The dimension of marketing that focuses on external forces that affect the
organization and serves as the driver of business strategy.
strategic marketing The long-term, firm-level commitment to investing in marketing—
supported at the highest organization level—for the purpose of enhancing organizational
performance.
market creation Approaches that drive the market toward fulfilling a whole new set of needs
that customers did not realize was possible or feasible before.
marketing (little m) The dimension of marketing that focuses on the functional or operational
level of the organization.
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tactical marketing Marketing activities that take place at the functional or operational level of a
firm.
marketing metrics Tools and processes designed to identify, track, evaluate, and provide key
benchmarks for improvement of marketing activities.
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1.3 APPLICATION QUESTIONS
1 Consider the various marketing misconceptions introduced in this chapter.
a. Pick any two of the misconceptions and develop a specific example of each from
your own experience with firms and brands.
b. How will it be beneficial for a new marketing manager to understand the
misconceptions that exist about marketing?
c. Can you come up with some other marketing misconceptions of your own – ones
that are not addressed in the chapter?
4. In the chapter we make a strong case for the relevance of Peter Drucker’s key themes today,
even though much of his writing was done decades ago. Do you agree that his message was
ahead of its time and is still relevant? Why or why not? Assume you are the CEO of a firm
that wants to practice a market orientation. How will Drucker’s advice help you to
accomplish this goal?
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5. Put yourself in the role of a marketing manager – from this perspective, do you agree with
the concepts of societal marketing and sustainability? Why or why not? How does a focus
on sustainability affect the marketing manager’s role and activities? Identify two
organizations that you believe do a great job of paying attention to sustainability and present
the evidence that leads you to this conclusion.
6. Review the section on change drivers and select any two within the set that you want to focus
on. Pick an organization of your choice and answer the following questions:
a. In what ways do each of the change drivers impact the firm’s ability to successfully do
marketing?
b. How is the firm responding to the change drivers in the way it approaches its business?
What should it be doing that it is not doing at present?
c. What role do you believe the marketing manager has in proactively preparing for these
and future change drivers?
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7. In the chapter you learned that harmonious performance of Marketing (big M) and marketing
(little m) within a firm can lead to greater levels of success. Why is this true? What does it
mean that these two need to be “harmonious?” What would be some likely negative
consequences they were out of sync?
MANAGEMENT DECISION CASE: Gaining a Foothold Amongst Giants While Being KIND
Questions for Consideration:
1. What other aspects of the AMA definition of marketing might KIND exploit in the future to
continue to grow its business?
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2. Do you think consumers supporting brands and companies that strive to benefit society are a
trend that will continue? Why or why not?
3. What other industries might be especially prone to entry by a smaller, more nimble, and more
socially conscious competition? What are the prospects for a competitor being successful in
those industries?
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1 Peter F. Drucker, The Practice of Management. New York: Harper and Row, 1954 pp. 37-38.
2 John Grant, “Green Marketing,” Strategic Direction, Vol. 24, Iss. 6, 2008 pp. 25-27.
3 Marco Vriens, “Strategic Research Design,” Marketing Research, Vol. 15, Iss. 4, 2003, p. 20.
