978-1259637155 Chapter 1

Unlock access to all the studying documents.

View Full Document

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

Chapter 01

Marketing in Today’s Business Milieu

1-2

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

Chapter 01

Marketing in Today’s Business Milieu

1-3

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

Chapter 01

Marketing in Today’s Business Milieu

1-4

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

Chapter 01

Marketing in Today’s Business Milieu

1-5

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

Chapter 01

Marketing in Today’s Business Milieu

1-6

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.

Chapter 01

Marketing in Today’s Business Milieu

1-7

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

Chapter 01

Marketing in Today’s Business Milieu

1-8

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?

Chapter 01

Marketing in Today’s Business Milieu

1-9

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

1–10

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

1–11

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

Chapter 01

Marketing in Today’s Business Milieu

1–12

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

1–13

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.