Chapter 1
An Overview of Markeng
This chapter begins with the learning outcome summaries followed by a set of lesson plans for
instructors to use to deliver the content.
Lecture (for large sections) on page 3
Company Clips (video) on page 4
Group Work (for smaller sections) on page 7
Review and Assignments begin on page 8
Review Question
Application Questions
Application Exercise
Ethics Exercise
Video Assignment
Case Assignment
Great Ideas for Teaching Marketing from faculty around the country begin on page 21
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 has two facets. First, it is a philosophy, an attitude, a perspective, or a
management orientation that stresses customer satisfaction. Second, marketing is an organization
function and a set of processes used to implement this philosophy. One desired outcome of
marketing is 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.
The five conditions of exchange are as follows:
There must be at least two parties.
Each party has something that might be of value to the other party.
Each party is capable of communication and delivery.
Each party is free to accept or reject the exchange offer.
Each party believes it is appropriate or desirable to deal with the other party.
1-2 Describe four marketing management philosophies
Four competing philosophies strongly influence an organization’s marketing processes. 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 goods and services 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.
The Internet and the widespread use of social media have accelerated the shift in power from
manufacturers and retailers to consumers and business users. This shift began when
customers began using books, electronics, and the Internet to access information, goods, and
services.
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 firms seek a long-term relationship with the
customer. Fifth, sales-oriented businesses pursue maximum sales volume through intensive
promotion, whereas market-oriented businesses pursue customer satisfaction through
interfunctionally coordinated activities. Finally, promotion is the means by which organizations
communicate with present and prospective customers about the merits and characteristics of their
organization and products. Effective promotion is an essential part of effective marketing.
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. Marketing career opportunities
also exist in a variety of nonbusiness organizations, including hospitals, museums, universities,
the armed forces, and various government and social service agencies. Fourth, understanding
marketing makes consumers more informed.
Key Terms
Customer relationship
management (CRM)
Exchange Production orientation
Relationship marketing
Customer satisfaction Marketing Sales orientation
Customer value Marketing concept
Market orientation
Societal marketing orientation
Empowerment On-demand marketing Teamwork
Lesson Plan for Lecture
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 toward social justice and
connecting with his buyers. In this video, Small discusses how he began designing clothes and
deciding whom to design clothes for and how to connect with his customers. He also discusses
the nature of consumer behavior. He also mentions his beliefs in terms of how consumers
purchase fashion and how this affects clothing prices.
These teaching notes combine activities that you can assign students to prepare before class, that
you can do in class before or 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 when appropriate to
ask students the questions listed on the grid 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.
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 Teaching Method
Warm Up Begin by asking students “What is
marketing?”
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 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:
oA clear understanding of what
customers want
oFocus on producing 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 on 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.
Divide the class into groups of up to four students each, 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?
Geoffrey B. Small would be best described as having a societal marketing orientation
because Small takes the basic market orientation focus—what do customers want and need
—and adds a societal, environmental focus—how can we benefit society.
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 long-lasting clothing from a company that is driven to protect
environment and civil rights. Small discovered the small demography of wealthy but
socially motivated buyers and built clothing that they perceived as having a high value. As
he says in the video, “you need to give the customer what they need and that they need
badly enough that they are willing to give you money for it.”
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 of racquets and what prices 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 will see,
marketing strategy drives the business.