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Chapter 1 - Overview of Marketing Marketing 6th
Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
9
Connect Activities
Activity
Type
Learning Objectives 01-
01
02
03
Zipcar: Creating Value in the Marketplace
Case Analysis
X
X
X
The Marketing Mix: Travel Goods and Services
Click & Drag
X
Jeans
Video Case
X
X
Value: The Bottled Water Industry
Video Case
X
X
Delivering Value at Red Mango
Video Case
X
X
Dunkin’ Donuts: Delivering on the Brand Promise
Video Case
X
X
From Beans to Pralines: The Global Chocolate Market
Case Analysis
X
X
X
Making a Market: Vosges Haut-Chocolat
Video Case
X
X
ISeeIt Video Case: Value Creation Through the
Marketing Mix
Video Case
X
ZipCar: Creating Value in the Marketplace
▪ Activity Type: Case Analysis
▪ Learning Objectives: 01-01, 01-02, 01-03
▪ Difficulty: Medium
▪ Activity Summary: This case describes Zipcar’s operations, focusing on how it creates value.
Students answer questions relating the case to chapter concepts.
Activity
▪ Introduction: Nearly a decade ago, the founders of Zipcar decided to bring the car-sharing
experience to the United States. Since then, Zipcar has developed the gold standard by offering its
members 24/7 access to thousands of cars around the world and creating a revolution in the way
many think about alternate transportation.
▪ Concept Review: Understanding the marketplace, and especially consumers’ needs and wants, is
fundamental to marketing success. Marketing focuses on creating value for customers, clients,
partners, and society at large.
Follow-up Activity
Zipcar has a special program targeted at universities. Ask the students the following questions:
▪ How might students’ wants and needs differ from those of Zipcar customers in general?
▪ What kind of marketing (B2C, B2B, C2C) is Zipcar engaging in when it works with universities to get
Zipcar locations approved on campus?
▪ How can Zipcar create value for university administrators, such that they would be interested in
having Zipcar locations on campus?
After discussing these points, visit the Zipcar website and look at the “for universities” tab. Note the two
columns addressing how Zipcar creates value for two different audiences: university administrators and
students.
Chapter 1 - Overview of Marketing Marketing 6th
Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
10
The Marketing Mix: Travel Goods and Services
▪ Activity Type: Click & Drag
▪ Learning Objectives: 01-01
▪ Difficulty: Medium
▪ Activity Summary: The student is presented with eight marketing activities performed by two travel
companies—one that manufactures products, and one that offers services. Students are asked to
classify the activities according to both the marketing mix element and the product type (goods or
services) it represents.
Activity
▪ Introduction: Two travel-oriented companies—one a producer of goods, the other a service
provider—have different marketing mixes. In this activity, you categorize a set of statements about
each company's marketing activities according to the four Ps (product, price, place, and promotion).
▪ Concept Review: Marketing traditionally has been divided into a set of four interrelated decisions
known as the marketing mix, or four Ps: product, price, place, and promotion.
A sentence of explanation is offered for each of the rectangles to the left when the student rolls the
mouse pointer over it.
Follow-Up Activity
▪ In small groups, have students select a company/brand from which they buy products or services.
Then, have them fill in examples of marketing activities that fit into each of the four Ps.
Jeans
▪ Activity Type: Video Case
▪ Learning Objectives: 01-01, 01-02
▪ Difficulty: Medium
▪ Activity Summary: This video case discusses the market for blue jeans, with its wide price range
and many different sets of customer needs and wants. After the video ends, students are asked
questions about the video and related course concepts.
Activity
▪ Introduction: Marketing involves satisfying the needs and wants of consumers. However, not all
consumers have the same needs and wants. The marketing of blue jeans is a good example of how
marketers develop a different marketing mix to suit the needs of different consumers.
▪ Concept Review: First invented in the United States, blue jeans represent everything American. How
blue jeans went from their humble beginnings to the height of high fashion is a marketing success
story. There are dozens of brands, ranging from the $10 pair to the $1,000 pair, with numerous
offerings between the two extremes to meet the needs of every type of consumer. Marketers must
understand what consumers value in order to manage the marketing mix to deliver the right set of
benefits to different consumers.
▪ Video: The video is presented to the student below the introductory information. The video plays
embedded on the page, after which questions are presented.
Chapter 1 - Overview of Marketing Marketing 6th
Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
11
Follow-Up Activity
In groups or individually, ask students to:
1. List all the brands of jeans they can think of, from basic discount brands to the hip designer
brands.
2. Use the Internet to find typical prices for a pair of jeans in each brand.
3. Enter the prices into a spreadsheet and generate a scattergram of the prices. (You can use
options to have each point labeled by its brand name.)
Then discuss: How could this scattergram be useful to marketers of each brand? Possible answers:
▪ It shows the overall price range so a brand can tell if its price is unusually high or low.
▪ It MIGHT indicate which brands are competing head-to-head (the ones whose dots on the
scattergram are closest together), though it’s important to note that pricing is only one dimension on
which brands can be similar or different. They may be targeting different age or size ranges, or aiming
to establish different brand images.
Value: The Bottled Water Industry
▪ Activity Type: Video Case
▪ Learning Objectives: 01-01, 01-02
▪ Difficulty: Medium
▪ Activity Summary: This video case traces the evolution of the bottled water industry. After the video
ends, students are asked questions about the video and related course concepts.
Activity
▪ Introduction: Bottled water companies create value for customers even though they sell a natural
resource that is free and abundant. Water was first positioned as a premium product that indicated
status and sophistication. Since then, soft drink companies with large distribution networks, such as
PepsiCo and Coca-Cola, have marketed bottled water at lower prices.
▪ Concept Review: The American Marketing Association states that marketing is “an organizational
function and a set of processes for creating, communicating, and delivering value to customers and
for managing customer relationships in ways that benefit the organization and its stakeholders.”
Although marketing is a multi-faceted function, its fundamental purpose is to create value by
developing a variety of offerings, including goods, services, and ideas, to satisfy customer needs.
▪ Video: The video is presented to the student below the introductory information. The video plays
embedded on the page, after which questions are presented.
Follow-Up Activities
Hold a group discussion—or a structured debate, with students assigned to argue a particular position—
on the ethics of the bottled water industry. Some potential sources:
Summary of the issues from environmental and clean water advocacy groups:
▪ http://www.nrdc.org/water/drinking/qbw.asp - Natural Resources Defense Council. Addresses both
water safety and environmental impact
▪ http://thewaterproject.org/bottled_water_wasteful - from The Water Project
Chapter 1 - Overview of Marketing Marketing 6th
Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
12
How bottled water brands are trying to address concerns:
▪ http://www.prnewswire.com/news-releases/pepsicos-aquafina-launches-the-eco-fina-bottletm-the-
lightest-weight-bottle-in-the-market-61940397.html - a press release from Pepsi about the Aquafina
Eco-Fina® bottle.
▪ http://www.dasani.com - Dasani’s statement about its recycling efforts. Click on “DASANI Initiatives.”
▪ http://www.evian.com/en-us - Evian’s website contains several sections addressing concerns (“evian
and your health” discusses water quality; “evian and the environment” discusses various initiatives
related to environmental protection). Also, show one of the Evian Babies ads.
https://www.youtube.com/watch?v=XQcVllWpwGs&list=PL9F5EBE51067E2A88 is probably Evian’s
best known ad, featuring the Roller Babies. How might this ad, with its use of babies, help to combat
the view of bottled water as an unhealthy and environmentally undesirable product?
▪ http://blogs.ei.columbia.edu/2009/08/11/%E2%80%9Cethical%E2%80%9D-bottled-water-companies
- Discusses strategies of Ethos water and others selling “ethical” bottled water.
Delivering Value at Red Mango
▪ Activity Type: Video Case
▪ Learning Objectives: 01-01, 01-02
▪ Difficulty: Medium
▪ Activity Summary: This video reviews Red Mango’s marketing mix and its approaches to value
creation. After the video ends, students are asked questions about the video and related course
concepts.
Activity
▪ Introduction: Founder Dan Kim opened the first U.S.- based Red Mango in Los Angeles in 2007. He
quickly expanded, and there are currently more than 200 locations in 27 states, plus three locations
outside the U.S. Red Mango has successfully combined a healthy product (frozen yogurt) with cool,
fun shops to hang out in. Red Mango uses 100% all natural, non-fat or low-fat kosher, and gluten-free
frozen yogurt fortified with probiotics. It has expanded its menu to include fresh fruit smoothies,
parfaits, and probiotic iced teas. Red Mango was named the number one smoothie and frozen yogurt
chain in America in Zagat’s 2011 National Chain Restaurants Survey. The following video illustrates
how Red Mango delivers superior value to customers.
▪ Concept Review: Marketing strives to create value in many ways. If marketers are to succeed, their
customers must believe that the firm’s products and services are valuable—that is, they are worth
more than they cost. Value represents the relationship of benefits to costs. Marketers deliver value
through the marketing mix (the 4 Ps): product, price, place, and promotion. Firms become value
driven by sharing information, balancing customer benefits and costs, concentrating on building long-
term relations with loyal customers, and creating connections with customers by using social and
mobile media. To achieve this, marketers must understand customers' needs and wants. Successful
marketing also requires thoughtful planning, with an emphasis on the ethical implications of any of
those decisions on society in general.
▪ Video: The video is presented to the student below the introductory information. The video plays
embedded on the page, after which questions are presented.
Chapter 1 - Overview of Marketing Marketing 6th
Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
13
Dunkin’ Donuts: Delivering on the Brand Promise
▪ Activity Type: Video Case
▪ Learning Objectives: 01-01, 01-02
▪ Difficulty: Medium
▪ Activity Summary: This video case discusses the overall strategy Dunkin’ Donuts uses to build its
brand and create value for customers. After the video ends, students are asked questions about the
video and related course concepts.
Activity
▪ Introduction: Dunkin’ Donuts has been known for its donuts for over 60 years, but recently the
company has increased its focus on coffee, responding to the growing popularity of coffee in the
United States. Dunkin’ Donuts has developed a strategy using the four Ps to help to differentiate it
from its many competitors. The company seeks to offer great products at a reasonable price,
available at convenient locations. Their goal is to “get you running in the morning and keep you
running all day.”
▪ Video: The video is presented to the student below the introductory information. The video plays
embedded on the page, after which questions are presented.
Follow-Up Activity
▪ Discuss how Dunkin’ Donuts uses its strategy to differentiate itself from its major competitors in the
Coffee and Breakfast marketplace. Some points to consider:
o Dunkin’ Donuts focuses on good value at a reasonable price, mixing coffee and food.
o Starbucks focuses more on quality to justify its high price, and has a stronger focus on coffee
drinks, with food available but not a primary focus.
o McDonald’s offers food at all times of the day in addition to its McCafé offerings. It has thousands
of locations, and keeps a strong focus on low price and fast service.
From Beans to Pralines: The Global Chocolate Market
▪ Activity Type: Case Analysis
▪ Learning Objectives: 01-01, 01-02, 01-03
▪ Difficulty: Medium
▪ Activity Summary: Students read a case reviewing strategies adopted by different chocolate brands,
and then answer questions requiring them to apply the six core aspects of marketing to what they
have read.
Activity
▪ Introduction: The worldwide chocolate market is huge, with cocoa bean growers spanning three
continents, processors located all over the world, and multiple chocolate brands serving the
preferences of different consumers. This activity is important because it gives you a solid “big picture”
view of the scope of marketing via the chocolate industry.
Follow-Up Activity
Chapter 1 - Overview of Marketing Marketing 6th
Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
14
Students might enjoy learning about Dr. Dan Ariely’s “Hershey Kiss Experiment,” in which students were
offered a Lindt truffle or a Hershey kiss. When the truffle cost 26 cents and the kiss cost 1 cent, equal
numbers of students chose each; when the truffle cost 25 cents and the kiss was free, the vast majority
chose the kiss. It illustrates the power of “FREE!”, and is discussed further in this article:
http://danariely.com/2009/08/10/the-nuances-of-the-free-experiment/.
Making a Market: Vosges Haut-Chocolat
▪ Activity Type: Video Case
▪ Learning Objectives: 01-01, 01-02
▪ Difficulty: Medium
▪ Activity Summary: This video case presents a marketing mix for a small brand that seeks to
differentiate itself through luxury and innovation. After the video ends, students are asked questions
about the video and related course concepts.
Activity
▪ Introduction: 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. This activity is important because successful marketing requires an understanding of the
full range of marketing activities, and of the importance of ensuring that all these activities serve a
common strategy. The goal of this exercise is to test your understanding of the basic concepts of
marketing.
▪ Video: The video is presented to the student below the introductory information. The video plays
embedded on the page, after which questions are presented.
Follow-Up Activity
▪ Compare Vosges to Godiva, which is probably the best-known luxury chocolate brand in the USA.
What advantages does Godiva have over Vosges? How can Vosges compete successfully with
Godiva (both in terms of its current activities and other things it might do)? Points to consider:
o Godiva has far more brand recognition, more of its own stores, and a wider distribution
network.
o Vosges has its innovative flavors; in addition, the very fact that it is not as well known might
allow the brand to create a more exclusive, super-premium image.
iSeeIt Video Case:
Value Creation Through the Marketing Mix
▪ Activity Type: Video Case
▪ Learning Objectives: 01-01
▪ Difficulty: Easy
▪ Activity Summary: The iSeeIt video cases available for most chapters introduce key concepts
through examples that are familiar to students from their own lives. This short activity uses different
consumer preferences for coffee shops to illustrate how marketing creates value.
Activity
Chapter 1 - Overview of Marketing Marketing 6th
Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
15
▪ Introduction: Value is when a customer receives more than they give up, such as when a customer
pays for a product or service. The definition of value often shifts based upon what each customer is
looking for in the product or service they are purchasing. Take for instance the Hernandez family and
their search for the perfect cup of coffee. Mom, Dad and Gabbie each place value on different
aspects of the coffee drinking experience. Gabbie looks for a unique experience, often provided by
independent coffee shops, and is willing to pay more for that experience. Mom, on the other hand,
wants the consistency and convenience provided by chains, while Dad is not interested in anything
fancy but is simply looking for a cheap cup of coffee. Before organizations can effectively market their
coffee to this family with such diverse needs, they need to understand where each consumer places
value and meet their needs using the marketing mix.
▪ Video: The video is presented to the student below the introductory information. The video plays
embedded on the page, after which questions are presented.
Follow-Up Activity
▪ Discuss some of the places around your university where people can go for a cup of coffee. How do
they differ in the value they offer?
