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Chapter 1: An Overview of Marketing
© 2018 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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 a 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 his methods or 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.
Case Assignment: The Coca-Cola Company
They have over one million likes on Facebook, over 800,000 followers on Twitter, over
8,000,000 views on YouTube, and over 20,000 followers on Instagram. Ninety-four percent of
people can recognize their iconic red and white logo. But none of that is too surprising given that
Chapter 1: An Overview of Marketing
17
the Coca-Cola Company is the world’s largest beverage company, featuring 3,800+ products
worldwide spanning across 20 brands.
The Coca-Cola Company has been in business for over 130 years. Established in 1886 in
Atlanta, Georgia by John Pemberton, the Coca-Cola Company’s daily average servings in their
first year were just 9 people. Now, their products sell in over 200 countries, and their daily
average servings are 1.9 billion people.
“The Coca-Cola Company is steeped in history and tradition, where heritage is honored
and values are respected. We are a global family of people working together to bring your family
a wide array of beverage choices to meet your beverage needs every day,” says Coca-Cola on
their website. “The Coca-Cola Company is dedicated to offering safe, quality beverages,
marketing those beverages responsibly and providing information consumers can trust. The
Coca-Cola Company has always taken seriously its commitment to market responsibly, across
the globe, across all advertising media, and across all of our beverages.”
With that in mind, the Coca-Cola Company adopted a strict marketing policy in
September 2015. The policy, which covers all their beverages, states that no products will be
directly marketed to children under 12.
The Responsible Marketing Policy, which is available on the company’s website, states
that the company will avoid advertising in “all media which directly targets children under 12,
including television shows, print media, websites, social media, movies, and SMS/email
marketing.” They consider media directly targeted toward children if 35 percent or more of the
audience is composed of children under 12.
The policy also states that no marketing communications will be designed to directly
appeal to children under 12. Specifically, communications created after the adoption of the
policy will not use “celebrities or characters whose primary appeal is to children under the age of
12 (with the exception of brand equity characters already in use), movie tie-ins related to movies
of primary appeal to children under 12, games or contests designed to appeal primarily to
children under 12, branded toys whose primary appeal is to children under 12, images of our
products being consumed by children under 12 without an adult, branded sponsorship of sporting
and entertainment events which primarily target children under 12.”
Finally, in a full commitment not to advertise to children under 12, the policy says, “As a
global business, we respect and recognize the unique learning environment of school and believe
Chapter 1: An Overview of Marketing
18
in commercial-free classrooms. We will not commercially advertise in primary schools.” Coca-
Cola products are also not available for sale in primary schools, unless requested by a school
authority. These school guidelines apply to schools not only in the United States but also in
Europe, Canada, New Zealand, and Australia.
The Responsible Marketing Policy was adopted amid growing complaints that Coca-Cola
was partly to blame for the rise in childhood obesity in America.
Sources: The Coca-Cola Company, “Coca-Cola At A Glance,” Coca-Cola, accessed October 21,
2016, http://www.coca-colacompany.com/our-company/infographic-coca-cola-at-a-glance; The
Coca-Cola Company, “Responsible Marketing,” Coca-Cola, September 20, 2016, accessed
October 21, 2016, http://www.coca-colacompany.com/stories/responsible-marketing; The Coca-
Cola Company, “Who We Are,” Coca-Cola, accessed October 21, 2016, http://www.coca-
colacompany.com/careers/who-we-are-infographic.
TRUE/FALSE
1. The desired outcome of Coca-Cola’s advertising is for people to exchange money for their
product.
2. The Coca-Cola Company’s decision to adopt a Responsible Marketing Policy indicates they
will move forward in advertising with a societal marketing orientation.
3. There are no major differences between sales and market orientations.
© 2018 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
4. The type of advertisements a company chooses to create are very important because marketing
plays a very large role in society.
5. Since Coca-Cola is sold at a low cost, it provides high customer value.
MULTIPLE CHOICE
1. Marketing is the activity, set of institutions, and processes for __________ offerings that have
value for customers, clients, partners, and society at large.
a. creating
b. communicating
c. delivering
d. exchanging
e. All of these
2. Prior to the Responsible Marketing Policy, Coca-Cola used a __________ orientation for its
advertising.
a. production
b. sales
c. market
d. societal marketing
© 2018 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
3. If Coca-Cola decides to no longer use their iconic polar bears in holiday season advertising
and they ask employees to submit ideas for replacement mascots, this would be an example of
__________.
a. relationship marketing
b. empowerment
c. teamwork
d. co-creation
4. Customer relationship management (CRM) is a company-wide business strategy designed to
optimize __________ by focusing on highly defined and precise customer groups.
a. profitability
b. revenue
c. customer satisfaction
d. A and B
e. All of these
5. Who at Coca-Cola needs to fully understand the company’s new Responsible Marketing
Policy?
a. the marketing team
b. the CEO and his advisors
c. the accounting and finance departments
d. everyone in the organization
Chapter 1: An Overview of Marketing
21
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, is that 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 that they develop not only the ability to recognize and
explain good service, but also the desire to serve and to get others to do this 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 and 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 provided 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 while starting a discussion.
• Whom 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 has their situation changed because you helped them? Was the change in situation
worth the effort it took? Why?
• How did they feel about you helping them, and how could you tell?
• How did you feel about helping them in this situation, and how do you feel about it now?
Why?
Chapter 1: An Overview of Marketing
22
• 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 as
follows: 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 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’ textbooks 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 the text pages that 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 there is a question or
questions for them to address in their reply.
Chapter 1: An Overview of Marketing
23
The following example is for Chapter 1 of MKTG11. 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 an 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 is a 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, the 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 of 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, and 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
24
The Universal Marketing Structure™ is displayed in this table and on the following page.
Because five times as many people read
the headline compared to 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—This part 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 compared to
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 message(s)
and to tell a good story. A good rule of
thumb is when in doubt, cut it out.
Body Text—This part supports, clarifies,
and explains the headline for those
readers who want more information. It
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—This part 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—This part proudly takes
responsibility for the ad by signing the
company’s name, logo and/or
attaching its corporate slogan.
Chapter 1: An Overview of Marketing
25
A picture is worth 1,000 words. Make sure
the graphic enhances the words instead of
detracting the viewers from reading your
main message(s).
Photo/Graphic—This part reinforces the
headline and main points of the piece.
It makes the product more tangible and
shows it in the best light possible, and
it also serves to break up the text so
that 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 the messages.
Format—This part facilitates the reading
of the ad. It allows busy readers to
quickly pick out the main point(s)
without reading the entire ad. It also
makes the ad attractive and inviting to
read.
Intangibles—This part corresponds to
creativity and uniqueness. They give
the ad something special that makes
the ad more attractive, entertaining,
and enjoyable to read.
Marketing Principles
The following 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
Keeping corporate image and the
positioning of the product
separate proved important to
Procter & Gamble when rumor
circulated that their corporate logo
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
Chapter 1: An Overview of Marketing
26
is a satanic symbol.
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—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 (healthcare marketing), Chili’s Grill
and Bar (hospitality marketing), Dallas Market Center and World Trade Center (apparel and
Chapter 1: An Overview of Marketing
27
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 in January
from Monday through Friday 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 because of 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 being offered.
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 because of 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 the
identification of a target market and ends with the student assuming the role of a marketing
consultant suggesting 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:
Chapter 1: An Overview of Marketing
28
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
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
3. After discussing the target market, you should then discuss the marketing-mix (the four Ps)
4. After discussing the firm’s marketing mix, you should assume the role of a 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
Sheri Carder, Lake City Community College
Chapter 1: An Overview of Marketing
29
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 the 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.
Chapter 1: An Overview of Marketing
30
© 2018 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
organization. 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.
