1. Viral Marketing and Social Networking. Viral marketing is a form of marketing that
relies on social networking and the Internet to spread information like a “virus” from
person to person.
2. Web-Driven Revenue with Social Networking. Although many major consumer
companies have their own Facebook page, small businesses, too, use social media
channels to increase revenues by networking with customers in target markets.
1. International Products
2. International Pricing
3. International Distribution
4. International Promotion
Many American promotional tactics do not succeed in other countries. Marketers must
consider differences in customs and cultural values when promoting products abroad.
KEY TEACHING TIP
In the consumer market, buying and selling transactions are visible to the public. Equally
important, though far less visible, are organizational (or commercial) markets.
The industrial market involves different complexities from the consumer market, in
Reinforce that marketers face an extreme advantage when distributing products abroad if
they can deliver through already-established networks.
QUICK QUESTIONS
How are farmers and manufacturers, for example, included in the industrial market?
What are the roles of wholesalers and retailers in the reseller market?
How are consumer-seller relationships different from buyer–seller relationships?
Why is social media especially important to small businesses? Remind students that one
consideration when determining the difference between domestic pricing and
international pricing is the higher cost of transporting and selling products abroad.
Use In-Class Activity 4:
Small-Group Discussion: Never Give a German a Yellow Rose
Time Limit: 30 minutes
Learning Objective 11-7:
Discuss the marketing mix as it applies to small business.
Small Business and the Marketing Mix
Many of today’s largest firms were once small businesses. The successful small businesses
have learned skillful application of the marketing mix and careful consideration of each
element in the marketing mix.
A. Small-Business Products
Understanding the target market and the targeted group’s wants is critical.
B. Small-Business Pricing
Profits are often determined by accurately assessing costs from the start. Haphazard
pricing can sink a firm with a good product.
C. Small-Business Distribution
The most critical aspect of distribution for small businesses is facility location,
particularly relative to customer location. Small businesses can often react to changes in
needs more quickly than larger firms.
D. Small-Business Promotion
Understanding promotional costs, as well as benefits of chosen promotional tools, may be
the most critical steps involved. Costs can be reduced by using less expensive
promotional methods.
KEY TEACHING TIP
Students need to understand that establishing the Marketing Mix is especially critical for small
businesses.
Use In-Class Activity 3:
Small-Group Discussion: Social Networking and Job Seeking
Time Limit: 30 minutes
Learning Catalytics is a “bring your own device” student engagement, assessment,
Learning Catalytics in your course, contact your Pearson Representative.
IN-CLASS ACTIVITIES
In-Class Activity 1: Ice-Breaker: Assessing the Marketing Environment
Activity Overview:
This activity asks students to consider various elements from the marketing environment that
affect specific industries.
Time Limit: 30 minutes
What to Do:
1. Divide the class into five-member groups and assign an industry to each group. For example,
you may use the automotive industry, fast-food industry, apparel industry, airline industry,
and the banking industry. (5 minutes)
2. Ask each group to discuss how variables from each of the five environments highlighted in
the textbook—the political–legal, sociocultural, technological, economic, and competitive
environments—affect their assigned industry. (10 minutes)
3. Reassemble the class and discuss each group’s input. (15 minutes)
Don’t Forget:
With groups of five students, you can assign each student to analyze one of the environments.
In-Class Activity 2: Small-Group Discussion: Data Mining
Activity Overview:
This activity asks students to think about all the valuable information about themselves that they
give to others.
Time Limit: 20 minutes
What to Do:
1. Divide students into small groups and ask them to discuss and make a list of all the locations
where they freely give valuable personal information. (10 minutes)
2. Reassemble the class and compile the groups’ lists. Are the lists similar? For what purposes
is this information used by others? (10 minutes)
In-Class Activity 3: Up for Debate: Social Networking and Job Seeking
Activity Overview:
This activity asks students to debate the advantages of starting your own small company, in a
highly competitive industry.
Time Limit: 30 minutes
What to Do:
1. Divide the class into three-member groups and ask them to read the Entrepreneurship and
New Ventures feature. (5 minutes)
2. Ask each group to discuss the following questions: (15 minutes)
a. What are the advantages and disadvantages of being a small farmer, trying to sell your
crops?
3. Bring the class together and debate the groups’ answers. (10 minutes)
Don’t Forget:
In–Class Activity 4: Small-Group Discussion: Never Give a German a Yellow
Rose
Activity Overview:
This activity asks students to consider what a foreign visitor might notice about the American
marketplace.
Time Limit: 30 minutes
What to Do:
1. Divide students into small groups and ask them to assume that they will be receiving a
2. Tell each group to assume that the visitor wants to know what he or she might be able to
observe about the American marketplace. In general, the visitor is curious about the various
3. Regroup the class and have each group share some of their suggestions. (15 minutes)
Don’t Forget:
ANSWERS FOR END OF CHAPTER ACTIVITIES
QUESTIONS FOR REVIEW
11-1. What are the five forces in the external marketing environment?
11-2. What is the difference between value and utility?
The value of a product refers to its comparative benefits and costs. Benefits include not only
the functions of the product but also the emotional satisfaction associated with owning,
11-3. What is market segmentation and how is it used in target marketing?
Market segmentation is a method of breaking consumers into mutually exclusive groups
11-4. How does the buying behavior of consumers differ from buyers in organizational
markets?
QUESTIONS FOR ANALYSIS
11-5. Select three everyday products (personal fitness training, CDs, dog food, cell phones,
Copyright © 2019 Pearson Education, Inc.
11–23
Answers will vary, but should include how students will tailor their marketing efforts in
terms of product features and benefits, pricing, packaging, promotion, and distribution.
(Learning Objective 2 – AACSB – application of knowledge, reflective thinking)
11-6. Use the five-step model of rational decision making to describe the process of selecting a
college. Does this model reflect the way that you made a decision about attending college?
Why or why not?
11-7. Imagine being the marketing manager for a large U.S. hotel chain. What factors would you
consider as you adapt the marketing mix to the following foreign markets: Mexico City,
Dubai, Germany?
Students should at the minimum cite the economic and socio-cultural differences and how
those differences will impact everything from the product itself (the look of the hotel,
11-8. Choose an existing product that could benefit from viral marketing. Once you have
identified the product, describe how you would use viral marketing to increase demand for
the product.
Students will select a wide variety of goods and services so the marketing campaign kits will
APPLICATION EXERCISES
11-9. Identify a company with a product that interests you. Consider ways the company could
use customer relationship management (CRM) to strengthen relationships with its target
market. Specifically, explain your recommendations on how the company can use each of the
four basic components of the marketing mix in its CRM efforts.
The students should focus on meeting customer’s needs and wants and ensuring the product
11-10. The U.S. Census collects an enormous amount of secondary data that is useful in
marketing research. Go to the American Fact Finder home page at
http://factfinder2.census.gov and collect data about people living in your zip code. Compare
your zip code to your state as a whole in terms of factors such as age, race, household size,
marital status, and educational attainment. Based on your data, what types of retail
establishments would be especially appropriate to your area?
Answers will vary, but students should focus on data mining to build stronger enterprise-
BUILDING A BUSINESS: CONTINUING TEAM EXERCISE 11-12 to 11-15
(Learning Objectives 2, 3, 4, 5 – AACSB – interpersonal relations and teamwork, analytical
and reflective thinking, application of knowledge)
This assignment gives students an opportunity to design a complete marketing plan for their
business. They should use the framework referenced in “Developing the Marketing Plan” and
formulate an appropriate marketing strategy focused on the needs and wants of potential
customers.
TEAM EXERCISE: HOME AWAY FROM HOME 11-16 TO 11-21
(Learning Objectives 1, 2, 3, 4, and 5 – AACSB – interpersonal relations and teamwork,
reflective thinking)
The students’ responses to the questions may vary dramatically due to the different perspectives.
Students should be encouraged to explore all the issues including: the target market (students and
EXERCISING YOUR ETHICS: WEIGHING THE ODDS
(Learning Objectives 1, 2, and 3 – AACSB – analytical and reflective thinking, ethical
understanding and reasoning)
11-22. How would you characterize the particular ethical issues in this situation?
11-23. From an ethical standpoint, what are the obligations of the marketing manager and the
risk control manager regarding the introduction of the product in this situation?
11-24. If you were the marketing manager, how would you handle this matter?
Answers will vary but most students will probably recommend postponement of the launch.
CASES:
BUILDING A BRAND WITH SOCIAL MEDIA
(Learning Objectives 1, 2, 3, 5 – AACSB analytical and reflective thinking, application of
knowledge)
11-25. What forces in the external environment have created opportunities or challenges for
Michelle Phan? Explain.
11-26. How would you describe Michelle’s marketing philosophy in terms of her value package,
marketing mix, and overall approach?
Michelle’s value package through her videos and the Ipsy beauty subscription service allows
customers to learn and to try products without fully committing to those products. Michelle’s
marketing mix deals with the 4Ps in this way: Product: She has two primary products, her
video tutorials and her own beauty brand, as well as her credibility as a beauty consultant.
11-27. Describe the consumer buying process for someone purchasing cosmetic products. Where
would videos and a service like Ipsy fit into this process?
The consumer buying process consists of a series of steps taken by consumers when making
Copyright © 2019 Pearson Education, Inc.
11–26
cosmetic products. Videos and Ipsy can fit into multiple steps, including Information
Seeking, Evaluation of Alternatives, and Postpurchase Evaluation.
11-28. Go to Michelle’s YouTube channel https://www.youtube.com/user/MichellePhan. How
would you describe her target audience?
WHERE HAS ALL THE MIDDLE GONE?
(Learning Objectives 1, 2, 3, 4 – AACSB analytical and reflective thinking, application of
knowledge)
11-29. How would you best describe P&G’s marketing strategy for the situation presented in this
case? Explain why.
11-30. What elements of P&G’s external marketing environment, if any, are influencing the
company’s marketing strategy? Explain your reasoning.
11-31. Why do you suppose P&G’s marketing research includes face–to-face interviews for the
situation described in this case? Would other forms of marketing research also be useful in
this situation? Explain your reasoning.
Most students will probably conclude that face-to-face interviews would be most effective
11-32. Explain the roles of target marketing and market segmentation as they apply in this case.
11-33. In what ways are the components of P&G’s marketing mix being affected by the situation
described in this case? Give examples to illustrate.
products will have different features meant to appeal to either the lower end market
segments, or the higher end market segments. Price will be reflected appropriately. Products