978-1259709074 Chapter 1 Part 2

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Chapter 1 – Overview of Marketing Marketing 6th

McGraw-Hill Education.

Connect Activities

Activity

Type

Learning Objectives 01–

Zipcar: Creating Value in the Marketplace

Case Analysis

The Marketing Mix: Travel Goods and Services

Click & Drag

Jeans

Video Case

Value: The Bottled Water Industry

Video Case

Delivering Value at Red Mango

Video Case

Dunkin’ Donuts: Delivering on the Brand Promise

Video Case

From Beans to Pralines: The Global Chocolate Market

Case Analysis

Making a Market: Vosges Haut-Chocolat

Video Case

ISeeIt Video Case: Value Creation Through the

Marketing Mix

Video Case

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

McGraw-Hill Education.

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

McGraw-Hill Education.

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

McGraw-Hill Education.

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

McGraw-Hill Education.

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

McGraw-Hill Education.

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

McGraw-Hill Education.

▪ 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?