Management Chapter 11 That Was The The Woman Has Yet Hear From That Major Insurance

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Instructor’s Manual – Chapter 11

PPT 11.46

C. Designed, engineered, & produced in just over 2 years

1. Higher than anticipated costs

2. Price set at $32,000 for two-seat car Olympus

D. However:

1. Initial sales have been slow & company executives are surprised and

concerned

2. Olympus was introduced quickly, made available at all Ventura

dealers, priced midway between luxury and moderate models, &

advertised heavily

E. Discussion Questions

1. What do you think were the main concerns with the Olympus

two-door sports coupe? Is there a market for a two-seat, $32,000

The main concern with the Olympus two-door sports coupe is that it

may be overpriced. The market research (assuming it is correct)

revealed that “significant demand” exists for a mid-range, two-seat

sports coupe—the market currently being served by Mazda.

Although Ventura delivered a car designed to compete in the two–

seat sports car market, it priced the car based on additional

expenses resulting from rapid development and introduction (two

years from concept to production). However, there may be a market

Ventura can manipulate price and promotion to position (or perhaps

reposition) the car and control market penetration.

3. What are some of the marketing strategies auto manufacturers use

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Instructor’s Manual – Chapter 11

B O X E D T E X T D I S C U S S I O N Q U E S T I O N S

ENTER THE WORLD OF BUSINESS—Banana Republic Uses Marketing to Bring Brand to Life

Banana Republic was founded in 1978 by Mel and Patricia Ziegler as a safari- and travel-themed clothing

1. How did marketing contribute toward creating the successful Banana Republic brand?

2. Why do you believe storytelling about the brand and themed stores attracted customers?

3. Despite the differences in Gap-owned Banana Republic stores today, what are similarities the modern

retailer shares with its initial stores?

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Instructor’s Manual – Chapter 11

RESPONDING TO BUSINESS CHALLENGES—Sheetz: The Starbucks of Convenience Stores

Sheetz is a family business and one of the largest and fastest-growing convenience store operators in the

country. Sheetz opens stores that offer made-to-order foods, gasoline, and other food items, including

1. How is Sheetz trying to change the image associated with convenience stores?

2. What demographics does Sheetz seem to be targeting with its convenience restaurants?

3. Why do you think Sheetz allows customers to customize their menus using a touch screen?

GOING GREEN—Millennial Rejection of Car Culture Causes Automakers to Adapt

Millennials include consumers who were born between the early 1980s and the early 2000s. Automakers are

finding that Millennial car buying habits are differing from their predecessors. Millennials are beginning to

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Instructor’s Manual – Chapter 11

1. Why do automakers have to adapt their strategies to attract the Millennial market?

2. Describe some of the differences between Millennials and previous generations regarding vehicle

ownership.

3. What happens if automakers cannot sufficiently attract the Millennial market?

S U P P L E M E N T A L L E C T U R E

The Selling Function

Chapter 11 lists the functions of marketing, and one of these functions is selling. Selling falls into the category

of promotion, one of the four aspects of the marketing mix. In the eyes of many observers, selling is a basic

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Instructor’s Manual – Chapter 11

The test consisted of 100 questions. Early in the examination, the woman encountered this question:

You are planning to sell a life insurance policy to a busy executive in a large metropolitan center. His

secretary tells you that he is not in. After hearing this, will you:

The young woman wavered between answers (a) and (c). As she proceeded through the test, the woman

found that the very same question was asked nearly 40 times in a slightly different way. Each time, she

would opt for the polite response, to make a future appointment or promise to come back another day.

Unfortunately, many college students think that successful selling is best represented by the image of the

hot-shot salesman who barges through people’s doors. Many college graduates who have that impression do

not like the idea of a job in sales.

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Instructor’s Manual – Chapter 11

A service-oriented approach to selling is shown in the story about another insurance company

representative. The following is a true story that has been reenacted hundreds, even thousands of times. In

Harry bought the policy. Tragically, Harry was killed in an auto accident in 1931. Fred Williams brought the

widowed Nancy a check for $40,000. A check in that amount in 1931—the Great Depression—was a fortune.

As anyone would guess, Nancy was grateful that Fred had come by that night to talk about life insurance

1. Is an aggressive approach required for successful salespeople today?

2. Why do many firms today use the job title of “Sales Representative” rather than “Salesperson”?

3. How can knowledge of buyer behavior, including the psychological variables of buying behavior, be

helpful to a salesperson?

By understanding such important buyer behavior factors such as perception, culture, and attitudes,

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Instructor’s Manual – Chapter 11

C O N T R O V E R S I A L I S S U E

How Do You Feel about Telephone Solicitations?

Students in college dormitories may not be as vulnerable to telephone solicitations as families living in their

own homes, but students probably have experienced telephone solicitations.

1. Calls come at the busiest time in a family’s life—mealtime.

3. Sales personnel ask personal questions.

5. Some callers enlist your participation in a “very short survey,” and the survey turns out to last 20

minutes.

7. Some callers are very clearly reading a canned pitch.

9. The salesperson definitely insults your intelligence with a stupid question like: “Which hand is the Statue

of Liberty holding up?”

10. The salesperson wastes your time with chat about the weather as a way to lead into the sales message.

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Instructor’s Manual – Chapter 11

1. Why do organizations use telemarketing? Or why do consumers buy the products or services

promoted by telephone solicitations?

2. Could organizations use some other form of promotion more successfully?

3. If telephone solicitation is to be used, how might that solicitation process be made more pleasant for

the potential customer and made more effective for the firm using telemarketing?

Students’ answers will vary.

S O Y O U W A N T A J O B I N M A R K E T I N G

What skills are necessary in a good marketer?

C H E C K Y O U R P R O G R E S S

1. What is marketing? How does it facilitate exchanges?

2. Name the functions of marketing. How does an organization use marketing activities to achieve its

objectives?

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Instructor’s Manual – Chapter 11

3. What is the marketing concept? Why is it so important?

4. What is a marketing strategy?

5. What is market segmentation? Describe three target market strategies.

6. List the variables in the marketing mix. How is each used in a marketing strategy?

The marketing mix involves four variables: product, promotion, price, and distribution. The product is a

complex mix of tangible and intangible attributes that provide satisfaction and benefits. Price represents the

7. Why are marketing research and information systems important to an organization’s planning and

development of strategy?

8. Briefly describe the factors that influence buying behavior. How does understanding buying behavior help

marketers?

Psychological and social variables play a part in buyer behavior. The psychological variables include these

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Instructor’s Manual – Chapter 11

9. Discuss the impact of technological forces and political and legal forces on the market.

Technological, political, and legal forces form part of the marketing environment. This environment

G E T I N V O L V E D

1. With some or all of your classmates, watch several hours of television, paying close attention to the

commercials. Pick three commercials for products with which you are somewhat familiar. Based on the

commercials, determine who the target market is. Can you surmise the marketing strategy for each of

the three?

Students’ answers will vary depending upon the commercials they choose.

2. Discuss the decision process and influences involved in purchasing a personal computer.

Buying behavior refers to the decision processes and actions of people who purchase and use products.

When purchasing a personal computer, both psychological and social variables are important.

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Instructor’s Manual – Chapter 11

In terms of social factors, a person might be influenced by reference groups, social classes, and culture. A

person might use his or her reference group, such as friends or family, to seek recommendations on

B U I L D Y O U R S K I L L S

The correct answer is based on the emphasis of the major activity described in each example.

Answer Key:

1. Distribution (B)

3. Product (A)

5. Product (A)

7. Price (D)

B U I L D Y O U R B U S I N E S S P L A N

Focusing on your community and posing the questions asked at the end of this chapter in the “Build Your

Own Business Plan” section (i.e., Who will be the target market you will specifically try to reach?”), have the

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S E E F O R Y O U R S E L F V I D E O C A S E:

N E W B E L G I U M B R E W S C U S T O M E R S A T I S F A C T I O N

Case Overview

This case discusses the creation and mission of New Belgium Brewing Company, manufacturers of Fat Tire

and other popular craft beers. The company began in founder Jeff Lebesch’s basement, where he

1. Why is environmental stewardship so important at New Belgium Brewery?

2. How does a strong commitment to the environment and social responsibility help to attract new

customers and maintain old ones?

3. What do you think is New Belgium’s target market?

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Instructor’s Manual – Chapter 11

T E A M E X E R C I S E

Students will form groups and be assigned the responsibility of finding examples of companies that excel in

one dimension of the marketing mix (price, product, promotion, and distribution). They will provide several

company and product examples and defend why this would be an exemplary case. They will then present

their research to the class.

T E R M P A P E R O R P R O J E C T T O P I C S

These topics may be assigned as individual or collaborative projects:

1. Honda’s Way of Selling Automobiles

3. Technology in Marketing Functions

G U E S T S P E A K E R S U G G E S T I O N S

1. A professor of marketing to speak about various facets of marketing.

3. A representative of a local nonprofit organization to speak about marketing efforts for that organization.

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T E A C H I N G S U G G E S T I O N S

2. Use the “Lecture Outline and Notes” with the slides indicated in the margins. The “Supplemental

Lecture” and the “Controversial Issue” can be used to reinforce the textbook content.