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Chapter 01
Marketing in Today’s Business Milieu
1-1
LEARNING OBJECTIVES
LO 1-2 Define what marketing and marketing management really are and how they contribute
to a firm’s success.
CHAPTER OUTLINE
I. WELCOME TO MARKETING MANAGEMENT
II. MARKETING MISCONCEPTIONS
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Marketing in Today’s Business Milieu
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A. Behind the Misconceptions
i. Marketing is Highly Visible by Nature
ii. Marketing is More Than Buzzwords
B. Beyond the Misconceptions and Toward the
Reality of Modern Marketing
III. DEFINING MARKETING
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A. Value and Exchange are Core Marketing Concepts
B. A New Agenda for Marketing
IV. MARKETING’S ROOTS AND EVOLUTION
A. Pre-Industrial Revolution
B. Focus on Production and Products
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C. Focus on Selling
D. Advent of the Marketing Concept
E. The Marketing Mix
F. Post-Marketing Concept Approaches
i. Differentiation Orientation
ii. Market Orientation
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iii. Relationship Orientation
iv. One-to-One Marketing
V. CHANGE DRIVERS IMPACTING THE FUTURE OF
MARKETING
A. Shift to Product Glut and Customer Shortage
B. Shift in Information Power from Marketer to
Customer
C. Shift in Generational Values and Preferences
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D. Shift to Distinguishing Marketing (Big M) from
marketing (little m)
i. Marketing (Big M)
ii. marketing (little m)
E. Shift to Justifying the Relevance and Payback of
the Marketing Investment
VI. YOUR MARKETING MANAGEMENT JOURNEY
BEGINS
VII. SUMMARY
KEY TERMS
marketing management The leading and managing of the facets of marketing to improve
individual, unit, and organizational performance.
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sustainability Business practices that meet humanity’s needs without harming future
generations.
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
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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.
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.
• Catchy and entertaining advertisements — or perhaps the opposite, incessant and
boring advertisements.
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?
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2. 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?
3. 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.
Marketing’s stakeholders include any person or entity inside or outside a firm with whom
Chapter 01
Marketing in Today’s Business Milieu
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Copyright © McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
• In Ghana, it teaches palm oil producers to reuse plant waste while providing potable
water to deprived communities.
• In India, Unilever employees help thousands of women in remote villages start micro-
enterprises.
• Responding to green activists, the company discloses how much carbon dioxide and
hazardous waste its factories discharge around the world.
4. 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?
Students will provide various answers. Here is information that should be used to inform
their responses:
5. 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 if they were out of sync?
Chapter 01
Marketing in Today’s Business Milieu
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Copyright © McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
Marketing (Big M) and marketing (little m) should be quite naturally connected within a
firm, as the latter tends to represent the day-to-day operationalization and implementation of
the former. If they were to become out of sync, the consequences could lead to confusion
within the firm (internal), confusion in the marketplace with customers (external), and
possible underachievement in terms of overall strategy goals.
MANAGEMENT DECISION CASE
From Clydesdales to Talking Frogs: Budweiser’s Strategic Adaptability Keeps It a Winner
This case provides an opportunity to reinforce several key principles that are covered in this
introductory chapter. While the case is largely focused on advertising tactics, there are
Questions for Consideration
1. Over the course of its history, Budweiser marketing responded to major regulatory and
cultural changes such as Prohibition and the changing role of women in society. What other
changes are either happening now or are on the horizon to which today’s marketing managers
at Budweiser should respond? What should that response be?
An issue of particular relevance to undergrads is underage drinking and abuse of alcohol on
college campuses. Anheuser Busch could respond with either specific social responsibility
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Marketing in Today’s Business Milieu
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Copyright © McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
advertising or “tags” at the end of ads encouraging responsible drinking. Another option
would be to introduce non-alcoholic or low-alcoholic alternatives. Discussion could revolve
around how these alternatives could be promoted: as a way to limit alcohol consumption
while continuing to socialize at parties, as an alternative for pregnant women, or for drinkers
who will be the “designated driver”.
2. In this account of Budweiser’s history there is evidence of both “Big M” marketing and
examples of “little m” marketing. Which of these two types of marketing do you think is
Budweiser’s greater strength? Support your answer with examples to demonstrate your
understanding of these concepts.
“Big M” marketing (or strategic marketing) is focused on an understanding of markets,
3. The most recent threat to Budweiser’s dominance is the microbrewery craze, which has
created (or resulted from) a set of more discriminating beer drinkers, not so different from
wine aficionados. One approach Budweiser has taken in their commercials is to make fun of
these enthusiasts. Do you believe that this is an effective strategy? Why or why not? What
alternative communication or product innovation strategies (if any) should be considered to
reach this segment?
Making fun of competitors (and their customers) could help reinforce the level of
Chapter 01
Marketing in Today’s Business Milieu
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Copyright © McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
brand under the Anheuser Busch family brand. This could lead to a discussion about the risk
of cannibalization of the current Budweiser products by the new product line.
SUGGESTED VIDEO
Making a Market: Vosges Haut-Chocolat (5:25 minutes)
Description: Vosges Haut-Chocolat is a chocolate brand seeking to make consumption of their
chocolate a luxury experience which has grown along with the market for high-end chocolate.
The video discusses how Vosges has created a cohesive marketing strategy focused on luxury
and innovation.
1. Vosge has chosen a premium/luxury positioning strategy. What are the pros and cons of this
marketing approach for Vosge?
Through pricing, packaging and store layout, Vosge signals that their product is something
2. What aspects of Vosge’s marketing strategy supports their experience/storytelling approach?
What are the risks to this strategy as they expand their distribution network to non-company-
owned stores?
3. Review the 4-step creative process that the CEO uses to develop a new product and the
messaging to support it. How could this process be applied to other consumer products?
Chapter 01
Marketing in Today’s Business Milieu
Choose a product in a completely different industry and apply the process to develop a basic
creative strategy.
4 step creative process
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.
