DISCUSSION STARTERS
Discussion Starter 1: Customer Service
ASK: How many of you have ever experienced rejection or disappointment in a customer service
experience?
ASK: How many of you have used social media to convey you dissatisfaction about a company’s product
or service? How did the company respond?
This can lead to a discussion on how companies are using social media sites such as Twitter to better
respond to customer’s complaints and concerns. For example, you could discuss how airline delays are
one of the most common causes of customer frustration and how JetBlue is using Twitter to ensure they
are responsive to their customers because they understand it is important for continued customer loyalty.
Discussion Starter 2: The Marketing Mix
ASK: Why is it important for marketers to consider their target market before changing parts of the
marketing mix like price and product?
If a firm is market oriented, it will want to meet the needs of its target market. Although customers do not
like price increases, they are more likely to accept gradual rate changes. Netflix decided to raise prices
rapidly—nearly doubling them without warning customers. Because the higher prices changed customers’
perceptions of the value of Netflix’s services, the company lost over 805,000 subscribers after their rate
hikes.
ASK: What could Netflix have done differently to keep customers satisfied? Will customers ever approve
of price increases?
Students should have a lot of ideas to answer this question. As consumers, they probably disapprove of
the rate increases and how Netflix interacted with its customers. However, it is important for students to
begin to think like business people and decide how they would have handled changing the marketing mix.
Discussion Starter 3: The Exchange
ASK: Why is the exchange at the core of all marketing transactions? Why is it crucial to think marketing
is applicable to exchanges beyond buyers and sellers?
Students should understand that marketing is about the exchange of values between two parties to arrive
at mutually beneficial outcomes. If students are simply focused on buyers and sellers they will not be able
to conceive of marketing outside a sales transaction. The following examples may help students broaden
their understanding:
• Volunteer organizations: Volunteers exchange the value associated with their time to gain the
value of assisting their community or supporting a meaningful cause. The organization exchanges
the opportunity to demonstrate support for a community or cause for volunteers’ time.
Discussion Starter 4: Socially Responsible Marketing
ASK: How do you feel marketing benefits society?
Be prepared for students to discuss the negative consequences of marketing activities, such as
negative self-image among teen girls and consumption beyond fiscal responsibility (unnecessary
wants). Steer the conversation to positive marketing attributes, using the text outline to guide this
discussion.
Special Note: The text discusses that socially responsible marketing can promote the welfare of
CLASS EXERCISES
Class Exercise 1: Great and poor customer service experiences (from your students’
perspectives)
The marketing concept, a firm’s market orientation, and customer relationship management all
revolve around putting the customer at the center of strategic marketing. The illustrations on pages 1
and 5 depict this customer–centric viewpoint. With the customer at the center, the heart of strategic
marketing revolves around providing outstanding customer service. Every beginning student in
marketing will have experience with both superior and inferior customer service.
Addendum: To underscore the logic behind the power of negative customer testimonials, you can
introduce the Rule of 66. On average, when a customer has a particularly bad experience, they will
Class Exercise 2: Chinese Brands and Brand Image
Chinese brands are in a perception predicament with U.S. consumers. Americans view products made
in China as high quality if they are designed in the United States, but if they are both designed and
manufactured in China, the perception of the product’s quality is generally negative. Instead of
conveying to the American consumer something about the quality of their products and how it is
something that could be of use to them, Chinese companies have tended to emphasize the fact that
their items are low cost. When consumers see a low price without information about the quality of
the product, they tend to perceive it as low quality. Chinese companies tend to take a follow-the-
leader approach when it comes to creating products, focusing on a manufacturing or sales orientation
rather than a marketing orientation.
1. Why are Chinese brands struggling to break into the American market?
2. Why are consumer perceptions of brands so hard to change?
3. What might be some steps Chinese brands can take to improve perceptions of their brands’
quality?
Class Exercise 3: Crocs—Designed for Success
Crocs, Inc. was founded in 2002 and has achieved success by creating a unique type of shoe made
out of foam and offered in a variety of colors. Although the shoe design was often perceived as ugly,
it attracted customers because of its unique nature and comfortable qualities. However, after early
success, Croc began experiencing dwindling sales because it only offered one type of shoe. Croc
began to expand into other product lines such as fashionable flats, wedges, sneakers, and other
products that offered the same comfort level.
1. Describe the target market for Crocs. How does Crocs create value for target market consumers?
2. With regards to Crocs, examine the marketing mix elements. Discuss the product, distribution,
price, and promotion for the shoe industry. How did each element contribute to the success of
Croc shoes?
Class Exercise 4: The Target Market is You
This group exercise examines the vast array of products for which college students represent the
primary target market.
Step 1: Brainstorm with the group a list of products that specifically target college students.
Step 2: Next to each product list any other applicable target markets.
Step 3: Evaluate each product and discuss whether college students will continue to use this
product/service after college.
Step 4: Choose one product/service and define its marketing mix.
ANSWERS TO DEVELOPING YOUR MARKETING PLAN
The information obtained from these questions should assist you in developing various aspects of
1. Discuss how the marketing concept contributes to company’s long-term success.
The marketing concept is a managerial philosophy that states that an organization should try to
satisfy customers’ needs through a coordinated set of activities that also allows the organization to
achieve its goals. The marketing concept contributes to a company’s long term success in several
2. Describe the level of market orientation that currently exists in your company. How will a
market orientation contribute to the success of your new product?
Students must first identify a company (either their employer or another company with which they are
3. What benefits will your product provide to the customer? How will these benefits play a role in
determining the customer value of your product?
Students must explain what specific benefits their new product will provide to customers. As an
ANSWERS TO DISCUSSION AND REVIEW QUESTIONS
1. What is marketing? How did you define the term before you read this chapter?
The text defines marketing as the process of creating, distributing, promoting, and pricing goods,
2. What is the focus of all marketing activities? Why?
3. What are the four variables of the marketing mix? Why are these elements known as
variables?
The marketing mix is the combination of activities that are planned, organized, implemented, and
4. What is value? How can marketers use the marketing mix to enhance the perception of value?
Value is a customer’s subjective assessment of benefits relative to costs in determining the worth of
a product. Examples of ways marketers can modify their marketing mixes to enhance perceptions of
5. What conditions must exist before a marketing exchange can occur? Describe a recent
exchange in which you participated.
For an exchange to take place, four conditions must exist. First, two or more individuals, groups, or
organizations must participate, and each must possess something of value that the other party
6. What are the forces in the marketing environment? How much control does a marketing
manager have over these forces?
The marketing environment, which involves uncontrollable factors that exist outside of the
7. Discuss the basic elements of the marketing concept. Which businesses in your area use this
philosophy? Explain why.
The marketing concept is an organizational philosophy that states that an organization should try to
8. How can an organization implement the marketing concept?
To implement the marketing concept, a marketing organization must first establish an information
9. What is customer relationship management? Why is it so important to “manage” this
relationship?
Customer relationship management focuses on using information about customers to create
10. Why is marketing important in our society? Why should you study marketing?
Marketing is important in our society because it provides employment for many people and helps
sell products that address stakeholder needs. This, in turn, generates profits essential to the survival
of individual businesses as well as to the health and ultimate survival of the global economy. Many
COMMENTS ON THE CASES
VIDEO CASE 1.1: CRUISING TO SUCCESS: THE TALE OF NEW
BELGIUM BREWING
Summary
This case illustrates how New Belgium Brewing’s market orientation has helped the company grow from
a small business to America’s third largest brewery. Since its founding, New Belgium has emphasized the
importance of meeting the needs of its many stakeholder groups, and that philosophy continues to guide
the company’s marketing activities. While students may be familiar with the company’s corporate social
responsibility activities, it is important for them to realize that those activities are part of the company’s
marketing strategy and thus its profitability.
Questions for Discussion
1. How has New Belgium implemented the marketing concept?
According to the marketing concept, an organization should try to provide products that satisfy
customers’ needs through a coordinated set of activities that also allow the organization to
achieve its goals. New Belgium considers its customers and other stakeholders at every level of
its marketing activities, which has led to the company’s popularity and success. Students may
2. What has Kim Jordan done to create success at New Belgium?
Kim Jordan created a unique marketing mix for New Belgium. Under her direction, the company
crafted quality beers (product), placed them on shelves and in bars (distribution), created a
3. How does New Belgium’s focus on sustainability as a core value contribute to its corporate
culture and success?
Sustainability has been a major part of the company’s vision since its founding. For this reason,
NBB strives to incorporate environmental responsibility directly into its business strategies.
Sustainability is important to several of New Belgium’s stakeholder groups, which increases
CASE 1.2: CAMPBELL’S WANTS TO SHOW YOU THE VALUE OF
SOUP
Summary
This case focuses on how consumers perceive the value of Campbell’s Soup and how the company uses
marketing to increase the value of its products. Because value is a subjective assessment of a product’s
worth, marketers can change variables in the marketing mix to increase a product’s value. For several
years, Campbell’s has been promoting the health benefits of its soups, but now the company is shifting its
marketing strategy to focus on taste.
Questions for Discussion
1. Evaluate Campbell’s success in implementing the marketing concept.
Student answers will likely focus on the changes Campbell’s is making to its marketing strategy.
If a company effectively implements the marketing concept, it will provide products that satisfy
customers’ needs through a coordinated set of activities that also allow the organization to
achieve its goals. In the past, Campbell’s marketing activities were not attracting customers.
Campbell’s soup sales.
2. How would you define Campbell’s target market for soup?
The target market is a specific group of customers that a company wishes to attract through its
marketing efforts. In the past, Campbell’s targeted consumers looking for an inexpensive and
3. How is Campbell’s trying to increase the customer’s perceived value of its soup?
Campbell’s is responding to decreasing sales (a form of consumer feedback) by changing its
marketing strategy. First, the company adjusted the distribution and promotion variable of its
marketing mix by changing its iconic labels and adopting a new slogan. Then, because Campbell’s