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Chapter 1 ♦ An Overview of Marketing 1
CHAPTER 1 An Overview of Marketing
This chapter begins with the learning outcome summaries, followed by a set of lesson plans for you to use to
deliver the content in Chapter 1.
• Lecture (for large sections) on page 2
• Company Clips (video) on page 4
• Group Work (for smaller sections) on page 6
Review and Assignments begin on page 7
Review questions
Application questions
Application exercise
Ethics exercise
Video Assignment
Case assignment
Great Ideas for Teaching Marketing from faculty around the country begin on page 15
2 Chapter 1 ♦ An Overview of Marketing
LEARNING OUTCOMES
1-1 Define the term marketing
Marketing is the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging
offerings that have value for customers, clients, partners, and society at large. Marketing also requires all facets of a
company to work together to pool ideas and resources. One major goal of marketing is to create an exchange. An
exchange has five conditions, as listed below. Even if all five conditions are met, an exchange might not occur. People
engage in marketing whether or not an exchange happens.
Five conditions of exchange:
1 There must be at least two parties.
2 Each party has something that might be of value to the other party.
3 Each party is capable of communication and delivery.
4 Each party is free to accept or reject the exchange offer.
5 Each party believes it is appropriate or desirable to deal with the other party.
1-2 Describe four marketing management philosophies
The role of marketing and the character of marketing activities within an organization are strongly influenced by its
philosophy and orientation. A production-oriented organization focuses on the internal capabilities of the firm rather than
on the desires and needs of the marketplace. A sales orientation is based on the beliefs that people will buy more
products if aggressive sales techniques are used and that high sales volumes produce high profits. A market-oriented
organization focuses on satisfying customer wants and needs while meeting organizational objectives. A societal
marketing orientation goes beyond a market orientation to include the preservation or enhancement of individuals’ and
society’s long-term best interests.
1-3 Discuss the differences between sales and market orientations
First, sales-oriented firms focus on their own needs; market-oriented firms focus on customers’ needs and preferences.
Second, sales-oriented companies consider themselves to be deliverers of goods and services, whereas market-oriented
companies view themselves as satisfiers of customers. Third, sales-oriented firms direct their products to everyone;
market-oriented firms aim at specific segments of the population. Fourth, sales-oriented organizations place a higher
premium on making a sale, while market-oriented seek a long-term relationship with the customer. Finally, sales-
oriented businesses pursue maximum sales volume through intensive promotion, whereas market-oriented businesses
pursue customer satisfaction through coordinated activities.
1-4 Describe several reasons for studying marketing
First, marketing affects the allocation of goods and services that influence a nation’s economy and standard of living.
Second, an understanding of marketing is crucial to understanding most businesses. Third, career opportunities in
marketing are diverse, profitable, and expected to increase significantly during the coming decade. Fourth, understanding
marketing makes consumers more informed.
TERMS
customer relationship management
(CRM)
exchange
production orientation
market orientation
relationship marketing
customer satisfaction
marketing
sales orientation
customer value
marketing concept
societal marketing orientation
empowerment
on-demand marketing
teamwork
LESSON PLAN FOR LECTURE
Brief Outline and Suggested PowerPoint Slides:
Learning Outcomes and Topics
PowerPoint Slides
Chapter 1 ♦ An Overview of Marketing 3
Learning Outcomes and Topics
PowerPoint Slides
LO1 Define the term marketing
1-1 What Is Marketing?
1: An Overview of Marketing
2: Learning Outcomes
3: What Is Marketing?
4: Marketing is…
5: American Marketing Association Definition
of Marketing
6: Marketing…
7: Exchange
8: Exchange
LO2 Describe four marketing management philosophies
1-2 Marketing Management Philosophies
9: Marketing Management Philosophies
10: The Four Marketing Management
Philosophies
11: Production Orientation
12: Sales Orientation
13: Market Orientation
14: Achieving a Marketing Orientation
15: Societal Marketing Orientation
16. Who’s In Charge?
17: Questions That Help Determine Marketing
Philosophy
LO3 Discuss the differences between sales and market
orientations
1-3 Differences between Sales and Market
Orientations
18: Differences between Sales and Market
Orientations
19: Comparing the Sales and Market Orientations
20: The Organization’s Focus
21: Customer Value Requirements
22: Customer Satisfaction
23: Relationship Marketing
24: Building Relationships
25: Defining a Firm’s Business
26: Knowing the Firm’s Business
27: Those to Whom the Product is Directed
28: Primary Goals
29: Tools the Organization Uses to Achieve Its
Goals
30: Sales vs. Market Orientations
LO4 Describe several reasons for studying marketing
1-4 Why Study Marketing?
31: Why Study Marketing?
32: Why Study Marketing?
33: Chapter 1 Video
4 Chapter 1 ♦ An Overview of Marketing
Suggested Homework:
• This instructor manual contains assignments for the Geoffrey B. Small video and for the Walt Disney case.
• This chapter’s online study tools include flashcards, visual summaries, practice quizzes, and other resources that can
be assigned or used as the basis for longer investigations into marketing.
LESSON PLANS FOR VIDEO
Company Clips
Segment Summary: Geoffrey B. Small
Geoffrey B. Small is a super luxury fashion designer with an eye towards social justice and connecting with his buyers.
In this video, Small discusses how he began designing clothes and deciding who and how to connect with his customers.
He also discusses the nature of consumer behavior and beliefs in terms of how they purchase fashion and its effect on
clothing prices.
These teaching notes combine activities that you can assign students to prepare before class, that you can do in class
before watching the video, that you can do in class while watching the video, and that you can assign students to
complete on their own after watching the video.
During the viewing portion of the teaching notes, stop the video periodically where appropriate to ask students the
questions or perform the activities listed on the grid. You may even want to give the students the questions before
starting the video and have them think about the answer while viewing the segment. That way, students will be engaged
in active rather than passive viewing.
PRE-CLASS PREP FOR YOU:
PRE-CLASS PREP FOR YOUR STUDENTS:
• Preview the Company Clips video segment for
Chapter 1. This exercise reviews concepts for
LO1, LO2, and LO3.
• Review your lesson plan.
• Make sure you have all of the equipment needed
to show the video to the class, including the DVD
and a way to project the video.
• You can also stream the video HERE
• Have students familiarize themselves with the
following terms and concepts: marketing,
production orientation, marketing concept, market
orientation, and societal marketing orientation.
• Have students search for Geoffrey B. Small and
read some articles about him. Depending on the
amount of controversy/discussion you would like
to spark, Small’s articles on his forum at
StyleZeitgeist (here) are very informative about his
stance on clothing and politics, but can be highly
divisive.
VIDEO REVIEW EXERCISE
ACTIVITY
Warm Up
Begin by asking students “What is marketing?”
Chapter 1 ♦ An Overview of Marketing 5
In-class Preview
• Segue into a discussion of the marketing concept and the four marketing
management philosophies.
• Write the four marketing philosophies on the board.
• Take an informal class poll to see which model resonates most with students.
• Ask students, while writing it on the board: “What does a firm need to succeed
in competitive markets?”
• While listening to students’ insights, write the following points on the board.
o a clear understanding of what customers want
o focus to produce what the customer wants, rather than on what
management thinks should be produced
Write the following viewing questions on the board, or simply prompt students to
think about them as they watch the video.
Viewing
(solutions below)
1. Is Geoffrey B. Small best described as having a market orientation or a
societal-marketing orientation?
2. How does Geoffrey B. Small implement the marketing concept?
Follow-up
• Have students reflect on their earlier research into Geoffrey B. Small and have
them write a paragraph on how they think he uses social media to demonstrate
his commitment to a societal marketing orientation.
• Have students break into groups of up to four students and have each group
brainstorm a marketing concept for one product, including their intended
customer and marketing philosophy.
• Outside of class, have students individually create a marketing concept for one
product. Have them compose a brief paragraph, to be turned in later, discussing
how they found out what the customer wanted.
Solutions for Viewing Activities:
1. Is Geoffrey B. Small best described as having a market orientation or a societal-marketing orientation?
2. How does Geoffrey B. Small implement the marketing concept?
Geoffrey B. Small implements the marketing concept by creating clothing that satisfies his customers desire to have
6 Chapter 1 ♦ An Overview of Marketing
LESSON PLAN FOR GROUP WORK
Class Activity – Marketing Is Not Just Advertising
The objective of this exercise is to get students to think about what may be involved in marketing a product. They should
construct plans that list the major variables in the marketing mix. This activity will emphasize that marketing is not just
advertising.
First, divide the class into small groups of four or five people. Then ask students to assume that they have just purchased
a tennis racquet factory that has been shut down for the last few years. The automated equipment and computer system
are in excellent shape, and the personnel needed to run the factory are readily available. But before jumping into
production, what questions need to be asked and answered? What plans need to be made? Which of these plans concern
marketing?
The following suggested questions should be brought up after the students suggest theirs. All these questions are about
marketing issues.
1. What are the needs of tennis players? Do they need more or different styles of tennis racquets?
2. How many different categories of tennis players are there? What kind of racquet does each category need? (Handles,
sizes, shapes, weights, and prices are factors.)
3. Which category of player does this firm want to sell to?
4. Estimate how many people are in this chosen category. How many of them will be playing over the next five years?
How often will they buy a new racquet?
5. When will these customers buy? (Are there seasons or trends?)
6. Where are these customers located? Where do they shop for tennis racquets?
7. What price are these customers willing to pay? Does this price leave a profit for the company?
8. How will the company communicate with potential customers? What type of promotion will reach them?
9. How will the racquets be packaged? What type of warranty will they carry? How will the firm provide customer
service?
10. How many other companies are making racquets? What kinds and what prices of racquets do competitors offer?
11. What is the industry as a whole projected to do in the next five to ten years?
All these questions must be answered before beginning production. As the students should now see, marketing strategy
drives the business.
REVIEW AND ASSIGNMENTS FOR CHAPTER 1
REVIEW QUESTION
1. Give an example of a company that might be successfully following a production orientation. Why might a
firm in this industry be successful following a production orientation?
A mature product, such as a small no-frills calculator, is sold basically on price. A production orientation of lowest
APPLICATION QUESTIONS
1. Your company president has decided to restructure the firm and become more market-oriented. She is going
to announce the changes at an upcoming meeting. She has asked you to prepare a short speech outlining the
general reasons for the new company orientation.
Students’ answers should focus on 1) customer wants and needs, 2) distinguishing the company’s products and
2. Donald E. Petersen, chairman of the board of Ford Motor Company, remarked, “If we aren't customer-
driven, our cars won’t be either.” Explain how this statement reflects the marketing concept.
Although students’ answers will vary, they should address some of these points. The marketing concept focuses on
3. A friend of yours agrees with the adage, “People don’t know what they want—they only want what they
know.” Write your friend a letter expressing the extent to which you think marketers shape consumer wants.
Although students’ answers will vary, they should address some of the following points: Marketers cannot create
4. Your local supermarket uses the slogan is “It’s your store.” However, when you asked one of the stock
people to help you find a bag of chips, he told you it was not his job and that you should look a little harder.
On your way out, you noticed a sign with an address for complaints. Draft a letter explaining why the
supermarket’s slogan will never be credible unless its employees carry it out.
5. How does Philip Morris handle the sensitive issues associated with marketing tobacco? What kind of
information does its Web site at http://www.philipmorris.com/ provide about smoking and its negative effects
on health? How do you think Philip Morris is able to justify such marketing tactics? After checking around
the site, do you think that approach makes the company more or less trustworthy?
8 Chapter 1 ♦ An Overview of Marketing
Students’ answers will vary.
6. Write a letter to a friend or family member explaining why you think that a course in marketing will help you
in your career in some field other than marketing.
Students’ answers will vary, but they should include a discussion of market orientation to the success of the firm and
APPLICATION EXERCISE
Understanding the differences among the various marketing management philosophies is the starting point for
understanding the fundamentals of marketing. From reading the chapter, you may be convinced that the market
orientation is the most appealing philosophy and the one best suited to creating a competitive advantage. Not all
companies, however, use the market orientation. And even companies that follow it may not execute well in all areas.
Activities
1. Visit your local grocery store and go through the cereal, snack food, and dental hygiene aisles. Go up and down each
aisle slowly, noticing how many different products are available and how they are organized on the shelves.
2. Count the varieties of product in each product category. For example, how many different kinds of cereal are on the
shelves? How many different sizes? Do the same for snack food and toothpaste.
3. Now try to find a type of product in the grocery store that does not exhibit such variety. There may not be many.
Why do you think there are enough kinds of cereals to fill an entire aisle (and then some), but only a few different
types of, say, peanut butter? Can this difference be explained in terms of marketing management philosophy (peanut
butter manufacturers do not follow the marketing concept) or by something else entirely?
4. Have you ever wanted to see a particular kind of cereal or snack food on the shelf? Think of product varietals (like
grapefruit-flavored toothpaste or peanut butter–covered popcorn) that you have never seen on the shelf but would be
interested in trying if someone would make it. Write a letter or send an e-mail to an appropriate company,
suggesting that it add your concept to its current product line.
Purpose: The purpose of this application is to introduce the students to the marketing concept. This exercise sends
students to the supermarket to evaluate the range of products and product categories and to draw conclusions about the
marketing orientations of particular brands/companies based on what they find.
Setting it up: You may want to assign this to pairs of students. That way they can discuss their observations as they
move through the store. There is no single solution for this application.
This exercise was inspired by the following Great Idea in Teaching Marketing:
Deanna R.D. Mader, Marshall University
Fred H. Mader, Marshall University
GIVE THEM WHAT WE MAKE, OR GIVE THEM WHAT THEY WANT?
The following simple in-class exercise can be used either to illustrate the differences between the sales orientation and
the marketing orientation, or as an example of the importance of concept testing in new product development.
Task: Divide the class into four groups. Have the groups separate as much as classroom space will allow to minimize
interference. Tell two of the groups they are the “producers” and their job is to make a product for the other groups. Tell
the remaining two groups they are the “consumers.” Give the two “producer” groups five sheets of paper (each a
different color) and whisper instructions that they are to build one paper airplane. They must use one sheet of paper, but
color selection and design must be group decisions. Give each “consumer” group one sheet of white paper. Whisper to
these groups that they are to write, in detail, what kind of paper airplane they want. Upon task completion, compare the
results.
Chapter 1 ♦ An Overview of Marketing 9
Outcomes: Invariably, the “producers” do not produce what the “consumers” had in mind. Products and concepts may
come close, but they are never identical. Class discussion is typically spontaneous. Students laugh at the results.
“Producers” complain that they were not given instructions as to what the “consumers” wanted and “consumers” defend
themselves by stating they were never asked. The professor can then direct discussion depending on whether orientation
or new product development is the focus of the class.
ETHICS EXERCISE
In today’s business environment, ethics are extremely important. In recent years, there have been numerous scandals and
trials that stem from a lack of ethical judgment. For this reason, we are including an ethical exercise in every chapter. A
brief scenario will present you with a situation in which the right thing to do may or may not be crystal clear, and you
will need to decide the ethical way out of the dilemma. To help you with these decisions, we will often refer you back to
the AMA’s Statement of Ethics, found online at http://www.marketingpower.com. This will give you a resource for the
exercise and will also help reinforce the ethical standards that marketers should uphold.
Rani Pharmaceuticals is the maker of several popular drugs used to treat high blood pressure and arthritis. Over time, the
company has developed a positive relationship with many of the patients who use its medications through a quarterly
newsletter that offers all the latest information on new medical research findings and general health and fitness articles.
The company has just been acquired by a group of investors who also own Soothing Waters Hot Tubs and Spas. The
marketing director for Soothing Waters would like to use Rani’s mailing list for a direct-mail promotion.
Questions
1. What should Rani Pharmaceuticals do?
In order to avoid the semblance of impropriety, it might be better for the marketing director of Soothing Waters to
2. Do you think it is ethical to use customer information across multiple divisions of the same company?
Explain.
This is a situation to be handled with caution. Rani’s should not simply hand over customer information. Although it
3. To which marketing management philosophy do you think the marketing director for Soothing Waters
subscribes? Explain.
4. Does the AMA Statement of Ethics address using customer information by multiple divisions of the same
company in its Statement of Ethics? Go to http://www.marketingpower.com and review the code. Then write
a brief paragraph on how the AMA Code of Ethics relates to Rani Pharmaceuticals’ dilemma
The AMA Code of Ethics does not provide specific guidelines for the use of information across an organization. In
VIDEO ASSIGNMENT: Geoffrey B. Small
Geoffrey B. Small is a super luxury fashion designer with an eye towards social justice and connecting with his buyers.
In this video, Small discusses how he began designing clothes and deciding who and how to connect with his customers.
He also discusses the nature of consumer behavior and beliefs in terms of how they purchase fashion and its effect on
clothing prices.
1. Geoffrey B. Small takes great pride in offering a high level of handwork in his clothing because:
a. it offers higher customer value.
b. it is part of his marketing orientation.
c. it is how he markets his clothing.
2. Geoffrey B. Small believes that one function of advertising is to make the customer believe what companies say.
Therefore, he doesn’t advertise, and lets the clothes speak for themselves.
True
False
3. How would Geoffrey B. Small answer the question “what is this firm’s business?”
a. Making clothes for environmentally aware customers.
b. Offering a great product and great service by honestly communicating with the customer.
c. Showing people how clothes should be made--locally.
d. Giving the customer something they need badly enough that they will pay for it.
4. To which marketing management philosophy does Geoffrey B. Small subscribe?
a. Production Orientation
b. Marketing Orientation
c. Sales Orientation
d. Societal Orientation
5. When Small describes how his customers choose to purchase his clothes (by evaluating that his brand is
environmentally conscientious, whereas most other brands are not), which condition of exchange is being met?
a. Each party has something of value to the other party.
b. Each party is capable of communication and delivery.
c. Each party is free to accept or reject the exchange offer.
d. Each party believes it is appropriate or desirable to deal with the other party.
Chapter 1 ♦ An Overview of Marketing 11
6. When Small discusses how customers crave personal interaction, knowledge of the person who created the garment,
and want unique, humanness in their clothing, what is he describing?
a. Avoiding unrealistic pricing
b. Having a strong sales team
c. Building relationships
d. Building trust
7. Which aspect of customer value is Small discussing when he refers to cost cutting, dividing the cost of a garment
over the years it is worn, and the money invested in the company?
a. Avoiding unrealistic pricing
b. Empowering customers
c. Using the marketing concept
d. Increasing customer satisfaction
8. Small’s focus on the longevity of his garments suggests that he is:
a. empowering his customers.
b. decreasing customer satisfaction.
c. offering products that perform.
d. harming his business model.
9. By providing the customer the top-quality product that lasts for 25 years, Geoffrey B. Small is
a. placing a premium on making a sale.
b. providing customer satisfaction.
c. using the marketing concept.
d. developing a deeper understanding of his customers.
10. Small’s refusal to give in to the pressure to make more, to change methods, to lower prices, in order to keep using
local products and maintain a high level of quality indicates
a. a shift to a production orientation.
b. a shift in the firm’s primary goal.
c. a refusal to use the tools at his disposal.
d. his commitment to the societal marketing orientation.
Chapter 1 Case: Walt Disney
The Walt Disney Company recently announced that it will be implementing firm advertising rules on its television
channels, radio stations, and its Web sites. Disney will ban all ads for junk food on its media networks, hoping to get
12 Chapter 1 ♦ An Overview of Marketing
kids to eat better by removing the temptation of junk food advertising. The new rules will make Disney a pioneer in
recognizing the force of advertising on consumer behavior. Disney will evaluate a company's broad offerings,
beyond the specific product it hopes to advertise on one of Disney's channels.
Products such as Kraft’s Capri Sun and Oscar Meyer Lunchables do not meet Disney's nutrition standards.
Capri Sun has too much sugar, and Lunchables has high sodium content. Cereal with more than 10 grams of sugar or
a meal with more than 600 calories will not meet nutrition standards and cannot be advertised. Companies like
McDonald's, which is involved in the advertising initiative as part of its support for First Lady Michelle Obama's
campaign to curb childhood obesity, may not make Disney's cut. The rules take effect in 2015, and until then,
Disney hopes that with the desire to keep kids interested in their products through advertising, companies will
reformulate products to meet nutrition standards.
“Disney's New Diet for Kids: No More Junk Food Ads,” Yahoo, June 5, 2012, http://finance.yahoo.com/news/disneys-
diet-kids-no-more-junk-food-ads-222602295.html (Accessed March 25, 2013).
TRUE/FALSE
1. Disney’s decision to implement new rules banning junk food advertisements suggests a societal marketing orientation.
2. The junk food companies that want to advertise on Disney’s television channels likely have a sales orientation.
3. The type of advertisements a company chooses to broadcast on its television stations is inconsequential because
marketing does not play a very large role in society.
4. The goal of junk food advertisers to encourage marketing, whereby people giving up something (money) in order to
receive something they would rather have (junk food).
Chapter 1 ♦ An Overview of Marketing 13
5. Because it is sold at a low price, junk food provides high customer value.
MULTIPLE CHOICE
1. Which of the following was likely not one of Disney’s considerations when determining its marketing concept?
a.
Do our customers want to see junk food advertisements on our channels and Web sites?
b.
How do junk food advertisements affect our long-term goals?
c.
Will new stricter advertising rules distinguish us from our customers?
d.
How do our television shows and Web sites affect our bottom line?
e.
What do customers picture when they think about our television channels?
2. If Disney allowed customers to choose which types of advertising they saw on its Web sites, it would be engaging in:
a.
realistic pricing.
b.
co-creation.
c.
offering products that perform.
d.
giving the buyers facts.
e.
providing after-sales support.
3. Disney customers’ evaluations of the company’s Web sites and television channels in terms of whether those products
meet their needs and expectations is called:
a.
customer gratification.
b.
customer fulfillment.
c.
customer approval.
d.
customer agreement.
e.
customer satisfaction.
14 Chapter 1 ♦ An Overview of Marketing
PTS: 1 OBJ: LO: 1-3 TOP: AACSB: Reflective Thinking
KEY: CB&E Model: Strategy MSC: BLOOMS: Level II Comprehension
4. Which of the following describes a Disney customer service representative who has been given the authority to respond
to a complaint about junk food advertisement by pulling the advertisement in question and flagging it for review by
Disney’s marketing team?
a.
The employee is empowered.
b.
The employee is improving Disney’s customer relationship management.
c.
The employee is working in a teamwork-oriented environment.
d.
The employee is operating under a sales orientation.
e.
The employee is opposed to junk food advertisements.
5. Who at Disney needs to both be aware of and understand the company’s decision to impose strict junk food advertising
rules?
a.
The CEO.
b.
The CEO and his chief advisors.
c.
The CEO, his chief advisors, and the marketing team.
d.
The CEO, his chief advisors, the marketing team, and the financial team.
e.
Every businessperson at the company.
Chapter 1 ♦ An Overview of Marketing 15
GREAT IDEAS FOR TEACHING CHAPTER 1
Rich Brown, Freed-Hardeman University
HOW SHOULD SERVICE MAKE YOU FEEL AND WHY IS THAT IMPORTANT?
A problem in teaching people to be good service providers, or effective managers of them, is many people don’t know
how intrinsically rewarding it is to truly be of service to another person. Many students have experience in service-
related jobs but not so many have worked in great service environments. Most have experienced, accepted, and expect
mediocre service in a great variety of service environments. In the classroom, it is fairly easy to point out the mediocrity
of past experiences and communicate the nuts and bolts of delivering good service. What is difficult is finding a way to
impact students so they develop more than the ability to recognize and explain good service, but additionally to develop
the desire to serve and to get others to as well. The purpose of this exercise is to develop that desire to serve by getting
students to think about a time when they were of real service to someone then helping them realize the intrinsic rewards
that come from serving well.
This assignment has two parts. First, you must get the students to think of situations in which they really served another
person either at work or in everyday life. Second, discuss the situations in class to see what individuals felt and
experienced before, during, and after providing the service. A list of discussion questions is at the end of this entry.
You could ask the students to write about their experiences, but I have found the discussion format to be extremely
beneficial. Most students will have had positive experiences and most will still feel good about what they have done; this
tends to snowball, and the reality that providing good service is intrinsically rewarding becomes very clear. It is often
hard for individual students to get started with ideas for ways typical service jobs can be made more rewarding. In a
group setting, even if I have to get things started, they are soon helping each other come up with useful strategies to help
service providers see how they really can be of help to their customers in their specific situations.
Here is a list of questions to use in starting discussion.
• Who did you help and what exactly did you
do for them?
• Did they really need the help? Why?
• What would their situation have been like if
you had not helped them?
• How was their situation changed because
you did help them? Was the change in
situation worth the effort it took? Why?
• How did your helping them make them feel
and how could you tell?
• How did helping in this situation make you
feel and how do you feel about it now?
Why?
• Was this an unusual experience for you?
Why?
• Was what you did complicated or difficult?
• Do you think service in general would be
better if service providers could feel about
their jobs the way you felt after you helped
in this situation? Why?
• How could managers of customer service
providers help their employees to realize the
intrinsic benefits that can result from really
serving another person?
James S. Cleveland, Sage College of Albany
DISCUSSION BOARD TOPICS TO ENCOURAGE PARTICIPATION
Discussion board questions provided to students to encourage them to engage in thinking and writing about the content
of the Principles of Marketing course usually take the form of a provocative statement to which students are asked to
respond. An example of this would be: All PR is good PR.
Discussion topics such as this one are abstract and often require that the instructor provide an initial reply to show
students what is expected of them in their own replies. For students with limited work experience, this approach may be
16 Chapter 1 ♦ An Overview of Marketing
quite appropriate. For adult students with extensive experience as employees and consumers, however, the abstract
nature of such topics can be frustrating.
I have developed, therefore, a series of discussion board questions to use with experienced, adult students. These
questions are designed to encourage them to use their experiences as employees and consumers as doorways to better
understand the course material, and to make their own responses more interesting to themselves and to the other students
in the class who will read and comment on them.
Each question has three parts:
1. First, there is a sentence or two from the students’ textbook introducing the topic. By using the text author’s own
words, students are enabled to locate relevant material in the text more easily, the text content is reinforced, and
confusion resulting from use of variant terms or expressions is minimized.
2. Second, there is a reference to text pages the student should review before proceeding. Since the goal of the exercise
is for students to apply the course content to their own experiences, reviewing the content first is important.
3. Third, there is a request for the student to think about or remember some specific situation in their experience to
which they can apply the text material, and a question or questions for them to address in their reply.
The following example is for Chapter 1 of MKTG10. The three parts have been separated here so they are more readily
visible.
1. Four competing philosophies strongly influence an organization’s marketing activities. These philosophies are
commonly referred to as production, sales, market, and societal marketing orientations.
2. Review these four philosophies in section 1-2 of your text.
3. Then describe an experience you’ve had recently as a customer or employee that illustrates one of these
philosophies.
Stephen Baglione, Saint Leo University
RELATIONSHIP MARKETING MADE EASY
Before discussing the impact of packaging, I bring a bag of dirt to class, and tell the students that it’s cake mix. It is a
clear plastic bag that has a piece of paper taped to it that indicates the brand name and basic information like nutritional
value, address and telephone number of the manufacturer, a suggested retail price, etc. I then place the bag on a student’s
desk and ask him or her whether he or she would buy this mix. Few students will. I then tell them that it will cost 25%
less than a boxed mix because it is in a plastic bag instead of a fancy box. Still few, if any, will buy it. We then discuss
their perceptions of the bag: it is poor quality, it does not show what the product can do (i.e., the promise to bloom into
an enticing cake), it can be tampered with, etc. Assuring them that tampering is not possible, I ask again how many
would buy it. What if it was the brand you currently buy at the same price? Students unanimously refrain from buying
what they perceive as an inferior product. This serves as a springboard into discussing what function a package serves. I
also show them a real box of cake mix to simulate their thinking by contrasting the two.
Ira S. Kalb, University of Southern California
EFFECTIVE STRATEGIES USING A UNIVERSAL MARKETING STRUCTURE
The Universal Marketing Structure (UMS)™ is designed to teach students and clients to create consistent and competent
marketing. The System has worked since student teams have been consistently creating excellent marketing campaigns
for organizations in the Los Angeles area. Most recently, the students created an advertising campaign for the City of Los
Angeles to attract businesses and tourists to Los Angeles after a period of civil unrest. They received a Certificate of
Commendation for their efforts on this project.
Chapter 1 ♦ An Overview of Marketing 17
The Universal Marketing Structure™ is displayed in this table and on the following page.
Because five times as many people read the headline as the rest of the
piece, the greatest effort and thought should go into creating the headline.
The structure of a good ad (or any marketing piece)
follows the UMS™.
Headline — Contains the main message(s) of the piece or hooks
the reader into reading the main message(s). Studies show
that five times as many people read or pay attention to the
headline as the rest of the piece.
Body text should not be thought of as filler. It should be limited to what
is essential to explain your main messages and to tell a good story. A
good rule of thumb is when in doubt, cut it out.
Body Text — Supports, clarifies, and explains the
headline for those readers who want more information.
Concentrates on benefits over features since 1) benefits are
what really matter to the reader, 2) the ad does not have
enough space or time to do justice to all product features, and
3) the best most ads can hope for is to begin the courtship
rather than prompt the marriage (if it is love at first sight, all
the better, but this does not typically happen with high-tech
or more expensive products).
The last point left with the reader should include the main message.
Close — Reinforces the headline (the main point(s) of the ad),
ends the ad, solicits action, and provides system for
measuring response.
Similar to your signature on a letter or petition.
Signature — Proudly takes responsibility for the ad by signing
the company's name, logo and/or attaching its corporate
slogan.
A picture is worth 1,000 words. Make sure the graphic enhances the
words, rather than detracts from your main message(s).
Photo/Graphic — Reinforces the headline and main points of the
piece. Makes the product more tangible and shows it in the
best light possible, and serves to break up the text so it is
easier to read.
The best messages can be lost forever and never be read if the format
isn’t good. Even if they are read, bad formats dilute or work against
them.
Format — Facilitates reading the ad. Allows busy readers to
quickly pick out the main point(s) without reading the entire
ad. Makes the ad attractive and inviting to read.
Intangibles — Creativity and uniqueness. They give the ad
something special that make the ad more attractive,
entertaining, and enjoyable to read.
Marketing Principles
The seven main principles are the building blocks of marketing: the Five Ps, Corporate Image, and the Marketing Information System.
The Five Ps
• Positioning — Finding a unique image for the product (or a window) in the minds of prospects (market targets).
• Product — The goods and services developed to meet target market needs.
• Pricing — The amount of money for which the product is sold to most target market needs to fit the product's position and
achieve company goals.
• Place (Distribution) — Providing the product to the marketplace in a way which makes it convenient for prospects to find,
buy, and use the product.
• Promotion — Communicating the benefits of the product to market targets to trigger a buying action.
18 Chapter 1 ♦ An Overview of Marketing
Keeping Corporate Image and
Positioning of the product separate
proved important to Procter &
Gamble when rumor circulated
that their corporate logo is a
satanic symbol.
Corporate Image
Unlike positioning, which relates to the image of the product,
Corporate Image relates to the image of the company. While
positioning and corporate image are closely related and affect
each other, they should be considered separately. If they are
not, the following problems could result:
(1) A tarnished company image could adversely affect sales
of the product and vice versa.
(2) A strong identification with one product will limit the
company’s ability to sell other products.
Not keeping them separate proved
to be a problem for Suzuki with
negative reports about the
Samurai, and for Dow Corning
with reports of breast implant
leakage.
Marketing Information System (includes Market Research)
Market Intelligence — Complaints, compliments,
competition, market needs and wants.
Measure Performance — Performance of marketing
strategies, programs, ads, marketing pieces, etc.
Corrective Action — Take action to improve
performance.
Nancy Ryan McClure, University of Central Oklahoma
James L. Thomas, Jacksonville State University
MARKETING IN ACTION
Marketing majors and non-majors alike persist in thinking that marketing is selling. To overcome this misperception, a
marketing course was developed that took students out of the classroom and into the real world. A study tour was offered
between semesters that took the students to a major metropolitan area (Dallas/Ft. Worth, Texas) for two purposes: 1) to
see the variety of activities involved in the marketing discipline, and 2) to expose students to multiple career
opportunities.
The tour was designed to provide students with maximum exposure to some of the best in the field of marketing. Each of
the organizations involved developed extensive presentations within their particular area of marketing specialization. The
organizations that participated included The Texas Rangers (sports marketing), Baylor Medical Center (health care
marketing), Chili’s Grill and Bar (hospitality marketing), Dallas Market Center and World Trade Center (apparel and
home furnishings wholesaling), DDB Needham (advertising agency), Frito-Lay (snack food manufacturing), Neiman-
Marcus (upscale retailing), Randall’s/Tom Thumb (grocery distribution center), and the West-End Association (non-
profit organization).
This course was offered for two hours of either undergraduate or graduate credit (with Fundamentals of Marketing as a
prerequisite). The students stayed in the Dallas area Monday through Friday in January between semesters. Upon
returning to the university, students were required to write thank-you notes to each of the organizations and to take a
final exam. One of the questions, naturally, was “Marketing is selling. Discuss.” It was evident from the students’
responses that they had clearly learned that marketing is much more than selling.
While there is nothing novel about field trips, the combination of organizations and the class format permitted a more in-
depth learning experience for the students than they could ever have had just reading a book. Unfortunately, the way
most courses are designed, field trips are untenable due to classes scheduled before and after the course in which you
would like to take advantage of a field trip. The students appreciated having an elective opportunity presented between
the two terms. This tour resulted in two internships offered.
Chapter 1 ♦ An Overview of Marketing 19
It should be noted that the first time such a course is offered, a great deal of time and planning must be devoted to the
development of the course. The authors found that the process of simply contacting the appropriate individuals, much
less completing the details with these individuals, requires an extensive number of telephone calls, faxes, emails, etc. In
order to ensure the efficient coordination of the class, it is highly recommended that instructors allow roughly six months
for development prior to the beginning of the course. For future iterations of the course, less time is likely to be required;
however, the authors advise against continually asking the same organizations to participate due to the commitment of
time and human resources required of the organizations involved.
Rich Brown, Freed-Hardeman University
AN ASSIGNMENT THAT TIES THE PRINCIPLES OF MARKETING COURSE TOGETHER
The purpose of this assignment is to cause students to connect the different parts of the Principles of Marketing course.
The assignment is a three- to five-page paper. It begins with identification of a target market and ends with the student
assuming the role of marketing consultant making suggestions for ways to improve the effectiveness of the marketing
mix being used to attract it. Feedback from students is overwhelmingly positive and indicates that completing the
assignment really helps them to “put it all together.” My written instructions to the students are as follows:
1. Choose an organization that does marketing. Make it easy on yourself and choose an organization that you can
observe the marketing efforts of and are familiar with. If you choose a very large organization that markets many
different products, focus your paper on one product or product line. For example, if you choose Chevrolet, do not
address trucks (or even a particular model of truck), or Corvettes. You may choose any organization you wish, as
long as it is in good taste and markets something. If you have trouble choosing an organization, go to the mall, surf
the net, or look in the yellow pages, you are surrounded by marketing organizations.
2. After choosing an organization, your next step is to identify and describe the target market for the products(s) about
which you are writing. Do not say something like “young, mid-to-upper class women who wash their hair,” but
consider the target market identified and described. Try to pinpoint the thing(s) that makes the target market respond
to the firm’s marketing mix in ways that are different from people who are not members of it. For example, “young
mid-to-upper class women who wash their hair, perceive that they might have a dandruff problem, are motivated by
prestige and glamour, and like to pamper themselves and are willing to pay a little extra to do it.” A good statement
lets you say who is in the target market and who is not. It is very difficult to do a good job on this paper if you do a
poor job of defining the target market. I will look at your definition of the target market if you like.
3. After discussing the target market, you should then discuss the marketing-mix (the four Ps) the firm is using to
attract the chosen target market. You should describe each of the four Ps, then discuss and analyze how each one is
being used to attract members of the target market. You should also address the synergy of the four Ps together,
especially if you see that one or more does not fit the others.
4. After discussing the firm’s marketing mix, you should assume the role of marketing consultant and make specific
suggestions for improving the firm’s effectiveness. These suggestions can be in the form of changes to any part of
the current marketing mix to fix problems you identified. If you did not identify problems, you should make
suggestions for additional marketing activities. It is important that you say why you make the suggestion and how it
will result in better appeal to the target market. These suggestions should be specific and not generic. Generic
suggestions are “advertise more” or “improve the sales force.” A specific suggestion is “improve effectiveness of
the sales force by starting a training program that emphasizes closing and presentation skills.” Remember that your
suggestions should be addressed at specific problems or opportunities so that you can justify them.
20 Chapter 1 ♦ An Overview of Marketing
Sheri Carder, Lake City Community College
LEMONADE FROM LEMONS MARKETING – CONSUMERISM EXERCISE
As a consumer, you expect quality products and good service. But sometimes things go wrong. If you’re unhappy with
your purchase or the service you received, do you know how to obtain satisfaction?
Consider yourself an active consumer. Choose a company or service with which you’ve recently been disappointed.
Write them a letter, using the following guidelines, to explain the problem and what you would like to see happen. Make
two copies—one to mail to the company and one to put in our class file as we compare responsiveness rates among the
various companies. When you receive a reply, share it with the class.
We will make this a research project, measuring how responsive companies are to their customers. Are companies really
concerned with total quality? We will note the amount of time it took for companies to respond and the companies’
efforts to satisfy their customers. Writing the initial letter is the assignment; bringing the reply in is for extra points. You
may certainly write more than one letter if you wish. You might try writing a letter of praise for one product as well as a
letter of disappointment for another. You’ll get better results if they believe you’re an adult consumer, so type the letter
rather than writing in pencil on notebook paper.
1. Describe the problem and what (if anything) you’ve already done to resolve it. List pertinent information
including date and place of purchase, serial or model number, etc.
2. Send sales receipts, repair orders, warranties, etc. (copies, not originals) to make your case.
3. Don’t be angry or sarcastic. In fact, begin your letter with a compliment to the company, e.g., “Colgate
Palmolive products are central to any household. I have used your _____ for the five years and have been
completely satisfied. That is why I was disappointed when the _____ didn’t live up to the Colgate Palmolive
standards I expected.”
4. State what would be a fair resolution from your point of view. Do you want the product repaired or exchanged?
Do you want your money back? Say exactly what you want done.
5. Include an inside return address and phone number in your letter so that they may contact you. (Many students
forget and leave this bit of information off.)
6. Have someone proofread your letter before you mail it. You’re less likely to be taken seriously if your letter is
littered with grammar and spelling errors.
7. Be sure to sign your letter.
8. Have the correct, full mailing address for the company. “Gillette Company, New York City, NY” won’t do it.
9. If you don’t receive resolution, decide if you want to pursue it. Keep a record of everyone to whom you talk or
write, and when. You can appeal to the higher-ups. You can approach the Better Business Bureau, a trade
association related to the business, arbitration agencies (in some states), small claims court, or the attorney
general’s office of consumer affairs.
