978-1259709074 Chapter 1 Solutions Manual

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Chapter 1 – Overview of Marketing Marketing 6th

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?

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?

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?

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?

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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?

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

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

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.

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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

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

The Apple Supplier Code of Conduct

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

Clean Energy Program

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

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.

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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.”

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

Godiva

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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

they buy, but it can seem that products almost appear magically. One recent trend among environmentally

conscious consumers is to seek out products produced within a 100-mile radius of their hometowns.

Buying these products reduces costs and detrimental environmental effects by reducing emissions

associated with transportation and storage. Students should visit local grocery markets, identify goods,

and investigate how far the products traveled (and by what means) to reach the store’s shelves. From this

experience, a rich discussion of both distribution decisions and marketing’s impact on society 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

business philosophy and approach. They should present the business to the class with evidence of the

business’s philosophy. Each brief presentation should include an assessment of whether the orientation is

appropriate to the business given its competitive environment, target audience, and positioning strategy

and if not, what orientation would be best.

Coect 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

ZipCar: Creating Value in the Marketplace

Activity Type: Case Analysis

Learning Objectives: 01-01, 01-02, 01-03

Difficulty: Medium

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Activity

Introduction: Nearly a decade ago, the founders of Zipcar decided to bring the car-sharing

Concept Review: Understanding the marketplace, and especially consumers’ needs and wants, is

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?

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

Activity

Introduction: Two travel-oriented companies—one a producer of goods, the other a service provider

Concept Review: Marketing traditionally has been divided into a set of four interrelated decisions

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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

Introduction: Marketing involves satisfying the needs and wants of consumers. However, not all

Concept Review: First invented in the United States, blue jeans represent everything American. How

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

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.

Value: The Bottled Water Industry

Activity Type: Video Case

Learning Objectives: 01-01, 01-02

Difficulty: Medium

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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

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

How bottled water brands are trying to address concerns:

http://www.prnewswire.com/news-releases/pepsicos-aquafina-launches-the-eco-fina-bottletm-the-light

est-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.”

Delivering Value at Red Mango

Activity Type: Video Case

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Learning Objectives: 01-01, 01-02

Difficulty: Medium

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

Video: The video is presented to the student below the introductory information. The video plays

embedded on the page, after which questions are presented.

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.”

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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:

oDunkin’ Donuts focuses on good value at a reasonable price, mixing coffee and food.

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

Students might enjoy learning about Dr. Dan Ariely’s “Hershey Kiss Experiment,” in which students were

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

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Introduction: Vosges Haut-Chocolat is a chocolate brand seeking to make consumption of their

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.

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

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

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?

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