END OF CHAPTER MATERIAL
Discussion and Critical Thinking
Discussion Questions
3-1. Name and describe the types of publics in a company’s marketing environment.
(AASCB: Communication)
Answer:
The company’s marketing environment also includes various publics. A public is any group
that has an actual or potential interest in or impact on an organization’s ability to achieve its
objectives. We can identify seven types of publics:
•Financial publics. This group influences the company’s ability to obtain funds. Banks,
•Media publics. This group carries news, features, editorial opinions, and other content. It
•Government publics. Management must take government developments into account.
•Citizen-action publics. A company’s marketing decisions may be questioned by consumer
•Local publics. This group includes neighborhood residents and community organizations.
•General public. A company needs to be concerned about the general public’s attitude
•Internal publics. This group includes workers, managers, volunteers, and the board of
3-2. Who are the Millennials, and why are they of so much interest to marketers? (AACSB:
Communication; Reflective Thinking)
Answer:
Millennials (also called Generation Y or the echo boomers). Born between 1977 and 2000,
these children of the baby boomers number 83 million or more, dwarfing the Gen Xers and
3-3. Describe Generation Z. What differentiates it from other demographic groups, such as
baby boomers, Generation X, and Millennials? (AACSB: Communication; Reflective Thinking)
Answer:
Generation Z includes people born after 2000 (although many analysts include people born
after 1995 in this group). The approximately 72 million Gen Zers make up important kids,
tweens, and teens markets. They spend an estimated $44 billion annually of their own money
3-4. Compare and contrast core beliefs/values and secondary beliefs/values. Provide an
example of each and discuss the potential impact marketers have on each. (AACSB:
Communication; Reflective Thinking)
Answer:
Core beliefs and values are passed on from parents to children and are reinforced by schools,
churches, business, and government. Secondary beliefs and values are more open to change.
3-5. How should marketers respond to the changing environment? (AACSB: Communication)
Answer:
Many companies view the marketing environment as an uncontrollable element to which
they must react and adapt. They passively accept the marketing environment and do not try
to change it. They analyze the environmental forces and design strategies that will help the
Critical Thinking Exercises
3-6. In 1965, more than 40 percent of American adults were smokers. That percentage has
now fallen to less than 18 percent. Tobacco companies have dealt with this threat by developing
new markets overseas and also developing alternative nicotine products such as electronic
cigarettes (e-cigarettes). Research this product and the regulatory environment regarding this
product, then write a report advising tobacco companies on the opportunities and threats posed
by this technology. (AACSB: Communication; Reflective Thinking)
Answer:
At the time of this writing, the United States Food and Drug Administration has held public
The European Union, however, approved tough rules on electronic cigarettes that are similar
to the ones for ordinary cigarettes, such as bans on advertising and a limit on the amount of
3-7. Form a small group and discuss cultural trends in the United States. Research one of them
in depth and create a presentation on the trend’s impact on marketing. (AACSB:
Communication; Reflective Thinking)
Answer:
Students’ answers will vary. One significant cultural change in the United States has been
3-8. Visit www.causemarketingforum.com to learn about companies that have won Halo
Awards for outstanding cause-related marketing programs. Present an award-winning case study
to your class. (AACSB: Communication; Use of IT)
Answer:
Students’ responses will vary. Students can click on the “Events/Awards” tab at the top of
Minicases and Applications
Online, Social Media, and Mobile Marketing: Sharing Economy
Changes in the technological environment have created amazing opportunities for new business
models while at the same time threatening traditional ones. For example, Airbnb has shaken up
the hospitality industry by allowing people to rent out spare rooms or their entire homes to
strangers. The Uber and Lyft ride-sharing businesses allow consumers to find a ride from people
looking to earn extra money with their vehicles. And with Uber you don’t have to worry about
having enough cash or giving your credit card to the driver—payments and tips are all done
through the Uber app. Traditional hotel and cab companies are crying foul, claiming that these
businesses are not playing by the same regulatory rules to which they are subject. Others are
concerned about safety amid reports of riders allegedly being attacked, kidnappings, and driver
accidents, questioning the thoroughness of background checks of the 160,000-plus Uber drivers
around the world. Some countries, states, and cities have banned Uber because of these issues.
3-9. Describe how Uber’s business model works and the role technology has played in its
success. What are the arguments for banning these types of businesses? What are the arguments
for defending them? (AACSB: Communication; Use of IT; Reflective Thinking)
Answer:
See how to become an Uber driver: www.uber.com. How to use Uber:
Dara Kerr, “Uber’s Year of Prosperity and Controversy,” cnet, December 26, 2014,
www.cnet.com/news/ubers-year-of-prosperity-and-controversy/.
3-10. Describe examples of two other businesses based on the sharing economy model and
create a new business idea based on this concept. (AACSB: Communication; Reflective
Thinking)
Answer:
Students can find examples by searching terms such as “sharing economy,” “collaborative
consumption,” or “peer economy.” For example, see “Airbnb, Snapgoods and 12 More
Marketing Ethics: Mutant Loophole
Genetically modifying seeds to produce herbicide-resistant plants that increase crop yields has
revolutionized modern agriculture. However, genetically modified organisms (GMOs) have
come under fire in recent years, with consumer groups calling for mandatory GMO labeling on
all food packages that contain GMO ingredients. GMO labeling laws have been in force in the
European Union and other countries for several years, but the threat to the U.S. food industry is
only now surfacing. Although bills requiring GMO labeling have been introduced in many state
legislatures, Vermont is the only state where such a law has so far withstood the first round of
legal battles from the industry. Leading chemical companies, including Monsanto, BASF, and
DuPont, are the world’s largest suppliers of seeds that grow the food that feeds the world. To
counter the GMO labeling threat, they now are turning to mutagenesis as an alternative technique
to create herbicide-resistant crops. Mutagenesis mimics the sun’s irradiation of plants to create
similar results to GMO techniques but with virtually no regulation. Some scientists claim mutant
crops created from this process are likely to create even greater health risks than genetic
modification. Seed companies see it as a way around the threat of GMO labeling requirements as
consumer package-goods marketers put pressure on suppliers for non-GMO ingredients.
3-11. Debate whether it is ethical for seed manufacturers to replace one controversial technique
(genetic engineering) with another (mutagenesis) to avoid regulatory threats. (AACSB:
Communication; Reflective Thinking; Ethical Reasoning)
Answer:
Students’ opinions will vary. The lack of regulation regarding mutagenesis provides an
3-12. Is it wise for GMO manufacturers to fight mandatory labeling? Debate this issue.
(AACSB: Communication; Reflective Thinking)
Answer:
Students’ answers will vary, and instructors should encourage them to search for
Spending large sums of money to fight ballot initiatives and wage lawsuits against states
passing laws, such as Vermont, creates negative publicity and may cause consumers to think
/.
Marketing by the Numbers: Demographic Trends
Marketers are interested in demographic trends related to variables such as age, ethnicity, and
population. The U.S. Census Bureau provides considerable demographic information that is
useful for marketers. For example, the following table provides a sample of such population data
(see www.censusscope.org/2010Census/PDFs/RaceEth-States.pdf):
2000 2010
State Total Hispanic Total Hispanic
Georgia 8,186,453 435,227 9,687,653 853,689
Michigan 9,938,444 323,877 9,883,640 436,358
California 33,871,64
8
10,966,55
6
37,253,95
6
14,013,71
9
3-13. What percentage change in the total and Hispanic populations occurred in each state
between 2000 and 2010? What conclusions can be drawn from this analysis? (AACSB:
Communication; Analytical Reasoning; Reflective Thinking)
Answer:
Students often have difficulty with percentage change calculations, with the common mistake
of dividing by the final figure instead of the initial figure.
For 2000-2010 percentage change in total population by state:
For 2000-2010 percentage change in the Hispanic population by state:
Conclusions: Georgia and California had modest growth in overall population and Michigan
3-14. Research another demographic trend and create a presentation to marketers regarding the
significance of the trend you analyzed. (AACSB: Communication; Reflective Thinking)
Answer:
Students’ responses will vary. Instructors may want to assign specific demographic variables
for students to analyze so that students can learn about a variety of trends.
There are several sources on demographic trends in the United States. See the Congressional
report on the changing demographic profile of the United States at
There are several excellent resources on global demographic trends and their impact. For
Other excellent sources on the impact of global demographic trends include