978-1259709074 Chapter 1 Part 1

Chapter 1 – Overview of Marketing Marketing 6th

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Chapter 1

Overview of Marketing

Tools for Instructors

• Brief Chapter Outline

• Learning Objectives

• Extended Chapter Outline with Teaching Tips

• Answers to End of Chapter Learning Aids

• Chapter Case Study

• Additional Teaching Tips

• Connect Activities

Brief Chapter Outline

What Is Marketing?

Why Is Marketing Important?

End of Chapter Learning Aids

Chapter Case Study: From Beans to Pralines: The Global Chocolate Market

Learning Objectives

LO1-1 Define the role of marketing in organizations.

Marketing is the activity, set of institutions, and processes for creating, capturing, communicating,

delivering, and exchanging offerings that have value for customers, clients, partners, and society at large.

Marketing strives to create value in many ways. If marketers are to succeed, their customers must believe

LO1-2 Describe how marketers create value for a product or service.

Value represents the relationship of benefits to costs. Firms can improve their value by increasing

benefits, reducing costs, or both. The best firms integrate a value orientation into everything they do. If an

activity doesn’t increase benefits or reduce costs, it probably shouldn’t occur. Firms become value driven

again and again.

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LO1-3 Understand why marketing is important, both within and outside the firm.

Successful firms integrate marketing throughout their organizations so that marketing activities coordinate

with other functional areas such as product design, production, logistics, and human resources, enabling

them to get the right product to the right customers at the right time. Marketing helps facilitate the smooth

Extended Chapter Outline with Teaching Tips

I. What Is Marketing?

A. Marketing Is About Satisfying Customer Needs and Wants

B. Marketing Entails an Exchange

C. Marketing Requires Product, Price, Place, and Promotion Decisions

Progress Check: Several questions are offered for students to check their understanding of core

concepts.

1. What is the definition of marketing?

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Answer: Marketing is the activity, set of institutions, and processes for creating, capturing,

2. Marketing is about satisfying _____ and _____.

3. What are the four components of the marketing mix?

4. Who can perform marketing?

B2B, and C2C.

5. What are the various eras of marketing?

based era.

G. How Do Marketing Firms Become More Value Driven?

Progress Check: Several questions are offered for students to check their understanding of core

concepts.

1. Does providing a good value mean selling at a low price?

Answer: Value-based marketing isn’t just about low price; it is also about creating strong products

2. How are marketers connecting with customers using social and mobile media?

Answer: Marketers are steadily embracing new technologies, such as social and mobile media, to

II. Why Is Marketing Important?

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Progress Check: Several questions are offered for students to check their understanding of core

concepts.

1. List four functions that illustrate the importance of marketing.

Answer: Exhibit 1.6 reveals the factors related to the importance of marketing. These include

2. A firm doing the right thing emphasizes the importance of marketing to _____.

Answers to End of Chapter Learning Aids

Marketing Digitally

1. Visit Godiva (www.godiva.com) and Hershey’s (www.hersheys.com). What value do these

chocolatiers provide customers? How is the value proposition different?

Students might suggest that Godiva provides value because of the premium quality of its products. The

2. Go to Facebook.com and click on “About” at the bottom of the page and then click on the

About tab. What is Facebook’s mission? How could a marketer use Facebook, and what other

social media tools could they use? What are the drawbacks a marketer might face when using

Facebook to communicate with their customers?

Mission: Facebook’s mission is to give people the power to share and make the world more open and

connected.

3. Visit Mondelēz International’s website (www.mondelezinternational.com) and then click on the

“Brand Family” link. In what major categories does Mondelēz have brands? Can you identify

related categories in which the company should compete?

Current brand categories are beverages, biscuits, cheese, grocery, chocolate, gum, and candy. This

Includes billion dollar international brands such as Cadbury chocolates and drinks, Cadbury Dairy Milk,

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Marketing Applications

1. Do you know the difference between needs and wants? When companies that sell coffee

develop their marketing strategy, do they concentrate on satisfying their customers’ needs or

wants? What about a utility company, such as the local power company? A humanitarian

agency, such as Doctors without Borders?

Needs are essential items that individuals cannot live without. These include necessities like shelter,

This question is intended to make students think about the difference between customer needs and

wants, as well as how companies might address one or both. It also challenges students to explore

2. People can apply marketing principles to finding a job. If the person looking for a job is the

product, describe the other three Ps.

Students should define the remaining Ps in the marketing mix and better define the product P. In addition,

answers should consider how a person seeking employment can offer value to a potential employer and

3. What is the difference between a good and a service? When you buy a music subscription on

Pandora, are you buying a good or service? Would your answer be different if you bought an

MP3 album on Amazon?

Goods are items that you can physically touch, whereas services are intangible customer benefits that

4. One of your friends was recently watching TV and saw an advertisement that she liked. She

said, “Wow that was great marketing!” Was the ad, in fact, marketing?

Students frequently associate advertising with marketing, but fail to recognize that advertising is just one

part of all the functions encompassed by marketing. Student responses should acknowledge that

promotional tools available to marketers.

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5. Using the four Ps, discuss how the Apple iBeacon will create value for customers.

• iBeacon is software that works as a location service, such that transmitters can send messages to

any user with an iPhone or iPad that has been updated to iOS 7. (product).

• iBeacon is electronically available over any Internet connection (place).

6. Columbia Sportswear sells a men’s fleece vest for $36 and an Omni-Heat Jacket for $1,200. Is

Columbia Sportswear providing the target markets for these products with a good value?

Explain your answer.

Columbia Sportswear is pursuing a value-based marketing strategy. Value–based marketing isn’t just

7. Assume you have been hired into the marketing department of a major consumer products

manufacturer such as Nike. You are having lunch with some new colleagues in other

departments—finance, manufacturing, and logistics. They are arguing that the company could

save millions of dollars if it just got rid of the marketing department. Develop an argument that

would persuade them otherwise.

This scenario forces students to think about the purpose and value of marketing in an organizational

context and allows for a variety of justifications. For example, a student could use an internal or external

perspective and argue that finance, manufacturing, and logistics tend to worry less about the customer

8. Why do marketers like Apple find it important to embrace societal needs and ethical business

practices? Provide an example of a societal need or ethical business practice that Apple is

addressing.

This question centers on the role of social and ethical issues in a marketing context. Students might

mention efforts such as keeping the environment clean and offering fair wages to workers. For example,

Apple develops multiple green initiatives. Some examples:

• The Apple Supplier Code of Conduct

o Our Supplier Code of Conduct outlines our high standards for creating safer working

• Clean Energy Program

o In 2015, we launched our Clean Energy Program to reduce carbon emissions across our

energy.

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Quiz Yourself

1. Which of the following illustrates marketing’s direct impact on consumers?

a. Marketing advises production about how much product to manufacture.

b. Marketing creates long-lasting relationships between the firm and its suppliers.

c. Marketing helps firms expand globally.

d. Marketing helps consumers learn about new products and services.

e. Marketing advises logistics about when to ship products.

2. The _____ consists of the product, price, place, and promotion of an offering

a. marketing exchange

b. marketing mix

c. channel of distribution

d. value proposition

e. marketing plan

Chapter Case Study: From Beans to Pralines: The Global Chocolate Market

1. Choose one of the supply chain members of the chocolate market described in this case

study and detail how it adds value through its marketing efforts.

Students will choose various supply chain members. Here is a typical supply chain for chocolate:

2. Describe the market for chocolates in the United States. In your discussion explain:

• What type(s) of people do they sell to?

• How do they appeal to those different groups of people?

• How do those people typically procure the products?

• Is there a difference between how and why different groups purchase chocolate?

According to Mintel’s Chocolate Confectionery report (2015), “more than half (53 percent) of US

consumers eat chocolate once a week or more.”

Among chocolate eaters, nearly three quarters (72 percent) eat chocolate as a treat. And, 32 percent of

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When it comes to chocolate preference, the majority of chocolate buyers (71 percent) are looking for

options with mix-ins as oppose to plain/unflavored varieties.”

• Compare and contrast how those two “players” use the four Ps.

Godiva

Hershey

Promotion – appropriate to target market

Additional Teaching Tips

In this chapter, the goal is to provide an overview of marketing and encourage students to think about the

specific aspects of the marketing mix.

Place is one of the most difficult concepts for students because it is largely invisible to them as

consumers. They touch hard goods, experience services, view and hear promotions, and pay for what

can evolve.

To make the eras of marketing clear to students, divide the class into groups with each group assigned to

a specific era. Ask the students to identify a business that adheres to their assigned era in terms of its