Instructor Manual
Lamb/Hair/McDaniel, MKTG 13E, ISBN 9780357127810; Chapter 1: An Overview of Marketing
Table of Contents
Purpose and Perspective of the Chapter …………………………………………………………………………. 2
Cengage Supplements …………………………………………………………………………………………………… 2
Learning Outcomes ……………………………………………………………………………………………………….. 2
Complete List of Chapter Activities and Assessments ……………………………………………………… 3
Key Terms ……………………………………………………………………………………………………………………… 4
What’s New in This Chapter ……………………………………………………………………………………………. 5
Chapter Outline …………………………………………………………………………………………………………….. 5
Discussion Questions …………………………………………………………………………………………………… 12
Additional Activities and Assignments …………………………………………………………………………… 12
Additional Resources ……………………………………………………………………………………………………. 18
External Videos and Playlist ……………………………………………………………………………………………………… 18
Appendix …………………………………………………………………………………………………………………….. 19
Generic Rubrics ……………………………………………………………………………………………………………………… 19
Standard Writing Rubric …………………………..……………………………………………………………………………… 19
Standard Discussion Rubric ……………………………………………………………………………………………………… 20
Purpose and Perspective of the Chapter
The purpose of this chapter is to define marketing, which is the activity, set of institutions,
and processes for creating, communicating, delivering, and exchanging offerings that have
Cengage Supplements
The following product-level supplements provide additional information that may help you
in preparing your course. They are available in the Instructor Resource Center.
• Transition Guide (provides information about what’s new from edition to edition)
• Educator’s Guide (describes assets in the platform with a detailed breakdown of
activities by chapter with seat time)
Learning Outcomes
The following learning outcomes are addressed in this chapter:
1-1 Define the term marketing.
1-2 Describe four marketing management philosophies.
Complete List of Chapter Activities and Assessments
For additional guidance refer to the Teaching Online Guide.
Learning
Outcome
PPT slide
Activity/Assessment
Duration
Certification
Standard
N/A
MindTap: Why Does
Marketing Matter to Me?
5 minutes
BUSPROG:
Reflective
Thinking
DISC: Customer
DISC:
Marketing Plan
1-2
MindTap: Learn It 1-2:
Marketing Management
Philosophies
5-10 minutes
BUSPROG:
DISC:
Marketing Plan
1-3
MindTap: Learn It 1-3:
Differences Between
Sales and Market
Orientations
15 minutes
BUSPROG:
Analytic
DISC: Customer
1-4
MindTap: Learn It 1-4:
Why Study Marketing
5 minutes
BUSPROG:
Analytic
DISC:
Marketing Plan
1-1 – 1-4
MindTap: Assignment
25 minutes
BUSPROG:
Analytic
DISC:
Marketing Plan
MindTap: Case Activity
15 minutes
BUSPROG:
Analytic
DISC: Strategy
Reflective
Thinking
DISC:
Marketing Plan
1-2
Discussion in PPT
10 minutes
BUSPROG:
Analytic
DISC: Customer
1-2
21
Group Activity 1 in PPT
20-25 minutes
BUSPROG:
Ethics
DISC: Research
DISC: Strategy
DISC: Research
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Key Terms
Big Data: the discovery, interpretation, and communication of meaningful patterns in data.
Customer relationship management (CRM): a company-wide business strategy designed
to optimize profitability, revenue, and customer satisfaction by focusing on highly defined
and precise customer groups.
Exchange: people giving up something in order to receive something else they would
rather have.
Market orientation: a philosophy that assumes that a sale does not depend on an
aggressive sales force but rather on a customer’s decision to purchase a product; it is
synonymous with the marketing concept.
Relationship marketing: a strategy that focuses on keeping and improving relationships
with current customers.
Sales orientation: the belief that people will buy more goods and services if aggressive
sales techniques are used and that high sales result in high profits.
What’s New in This Chapter
The following elements are improvements in this chapter from the previous edition:
• New example of marketing concept using Harley Davidson
• New example of societal marketing concept using CVS
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Chapter Outline
In the outline below, each element includes references (in parentheses) to related content. “LO
CH–##” refers to the chapter learning outcome; “PPT Slide #” refers to the slide number in the
PowerPoint deck for this chapter (provided in the PowerPoints section of the Instructor Resource
1. What Is Marketing? (LO 1-1, PPT Slide 4, DISC: Marketing Plan)
a. There are two important facets to marketing:
• It is a philosophy, an attitude, a perspective, or a management orientation that
Instructor Manual: Lamb/Hair/McDaniel, MKTG 13E, ISBN 9780357127810; Chapter 1: An Overview of Marketing
communicating, delivering, and exchanging offerings that have value for customers,
clients, partners, and society at large.
c. The most important purpose of marketing is to facilitate an exchange—in other
words, people giving up something in order to receive something else they would
rather have.
2. Marketing Management Philosophies (LO 1-2, PPT Slide 8, DISC: Marketing Plan)
a. There are four competing philosophies that strongly influence an organization’s
marketing processes: production orientation, sales orientation, market orientation,
and societal marketing orientation.
b. Production Orientation: A production orientation philosophy focuses on the
internal capabilities of the firm rather than on the desires and needs of the
marketplace. In a production orientation environment focused on creating products,
In a production-oriented service organization, managers ask, “What services are
most convenient for us to offer?” and “Where do our talents lie?”
c. Sales Orientation: A sales-orientation is based on the belief that people will buy
more goods and services if aggressive sales techniques are used. High sales result in
d. Market Orientation: A market orientation environment employs the marketing
Instructor Manual: Lamb/Hair/McDaniel, MKTG 13E, ISBN 9780357127810; Chapter 1: An Overview of Marketing
concept, which states that the social and economic justification for an
organization’s existence is the satisfaction of customer wants and needs while
meeting organizational objectives. A business is defined by the customers’ perceived
value in its products or services.
• The marketing concept includes:
o Using customer wants and needs to distinguish an organization’s product(s)
e. Success in marketing comes from developing a thorough understanding of a firm’s
customers and competition, its distinctive capabilities that enable the company to
execute plans on the basis of this customer understanding, and knowledge of how
to deliver the desired experience using and integrating all of the resources of the
firm.
Example: Specialty clothing store American Apparel has experienced numerous store
closings and a bankruptcy filing because it failed to adopt methods used by its fast-
fashion competitors, particularly Zara and H&M. These organizations offer
consumers up-to-date fashions more quickly and at more affordable prices.
g. Societal Marketing Orientation: The societal marketing orientation extends the
marketing concept. This philosophy states that organizations should not only work
to satisfy customer wants and needs and to meet organizational objectives but
should also seek to preserve or enhance individuals’ and society’s long-term best
Instructor Manual: Lamb/Hair/McDaniel, MKTG 13E, ISBN 9780357127810; Chapter 1: An Overview of Marketing
h. Who Is in Charge? When customers started using the Internet and social media to
access information, goods, and services, power began to shift from manufacturers
3. Differences Between Sales and Market Orientations (LO 1-3, PPT Slide 23, DISC:
Marketing Plan)
a. It is useful to study the differences between sales and market orientations by
comparing five key characteristics: the organization’s focus, the firm’s business,
those to whom the product is directed, the firm’s primary goal, and the tools used to
sold at prices they are willing to pay.
Example: Operating under the banner of “enlightened hospitality,” Shake Shack is a
fast-casual burger restaurant that targets people who care about the food’s taste
and source and are willing to pay higher-than-average prices for burgers made from
humanely raised, antibiotic- and hormone-free meat. The company also pledges not
to use genetically modified organisms (GMOs) in its hamburger buns and is known
for superior service.
Instructor Manual: Lamb/Hair/McDaniel, MKTG 13E, ISBN 9780357127810; Chapter 1: An Overview of Marketing
f. Most successful relationship marketing strategies depend on:
• Customer-oriented personnel: Any person, department, or division that is not
customer oriented weakens the positive image of the entire organization.
Example: In order to empower its workers, Ritz-Carlton luxury hotels developed a
set of 12 “Service Values” guidelines, which include statements like “I am
empowered to create unique, memorable and personal experiences for our
guests” and “I own and immediately resolve guest problems.” Employees review
and discuss the guidelines daily.
• Teamwork: Job performance, company performance, product value, and
customer satisfaction all improve when people in the same department or work
group function as a team, assisting each other and emphasizing cooperation
instead of competition.
g. The Firm’s Business: A sales-oriented firm defines its business (or mission) in terms
of goods and services, whereas a market-oriented firm defines its business in terms
of the benefits its customers seek.
h. By answering the question “What is this firm’s business?” in terms of the benefits
customers seek, market-oriented firms gain three important advantages:
• Ensures the firm keeps focusing on customers
j. Customer relationship management (CRM) is a strategy designed to optimize
profitability, revenue, and customer satisfaction by focusing on highly defined and
precise customer segments. This is accomplished by organizing the actions of the
entire company around those segments, establishing and tracking customer
interactions with the company, fostering customer-satisfying behaviors, and linking
all processes of the company from its customers through its suppliers.
l. As technology evolves and becomes more sophisticated, consumer expectations of
their buying-related experiences have changed. Consumers:
• Want to interact anywhere, anytime
• Want to do new things with varied kinds of information in ways that create value
In response to these expectations, companies are developing new ways to integrate
and personalize each stage of a customer’s decision journey, which in turn should
increase relationship-related behaviors. For this type of on-demand marketing to
n. Tools the Organization Uses to Achieve Its Goals: Sales-oriented organizations
seek to generate sales volume through intensive promotional activities, mainly
personal selling and advertising. Market-oriented organizations recognize that all
four components of the marketing mix are important: product decisions, place (or
distribution) decisions, promotion decisions, and pricing decisions. Additionally,
market-oriented organizations recognize that skills and resources throughout the
organization are needed to create, communicate, and deliver superior customer
service and value.
4. Why Study Marketing? (LO 1-4, PPT Slide 43, DISC: Marketing Plan)
a. Marketing Plays an Important Role in Society: Think about how many exchanges
or transactions are needed each day to feed, clothe, and shelter the U.S. population.
Despite the enormity of the system, it works quite well, partly because the system
efficiently distributes the output of farms and factories and partly because
marketing makes products and related services readily available.
c. Marketing Offers Outstanding Career Opportunities: Somewhere between one-
fourth and one-third of the U.S. workforce performs marketing activities, such as
personal selling, marketing research, advertising, retail buying, distribution
management, product management, product development, and wholesaling. Thus,
marketing offers numerous career opportunities.
Instructor Manual: Lamb/Hair/McDaniel, MKTG 13E, ISBN 9780357127810; Chapter 1: An Overview of Marketing
Discussion Questions
You can assign these questions several ways: in a discussion forum in your LMS; as whole-
class discussions in person; or as a partner or group activity in class. A generic discussion
rubric is provided in the Appendix.
1. Discussion: (LO 1-2, PPT Slides 19 – 20) Duration 10 minutes.
a. Donald E. Petersen, former chairman of the board of Ford Motor Company,
remarked, “If we aren’t customer driven, our cars won’t be either.”
b. How do cars add value to people’s lives?
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Additional Activities and Assignments
A generic discussion and writing rubric is provided in the Appendix.
1. Activator Exercise: Brining Value to Customers (LO 1-1 – LO 1-3)
Purpose: To demonstrate to students how companies bring value to society
through goods and services.
Classroom Format: Small group discussion, then class presentations
(Estimated Time: 20-40 minutes)
1. Have students divide up into groups of three or four.
2. Select a good or service that didn’t exist 30 to 50 years ago. (You may
want to assign goods or services to ensure that student groups don’t
4. Discuss what life is like now that the good or service is available. In what
ways has it improved lives for users and for society as a whole?
5. Have groups create and share a short presentation or perform a skit that
depicts the before and after.
Example: Before Uber, you had to hope a taxi drove by and saw you
Online Format: Video presentation submitted by each student
(Estimated Time: 20-30 minutes)
4. Consider what life is like now that the good or service is available. In what
ways has it improved lives for users and for society as a whole?
5. Create and record a short presentation or one-person skit on your
findings.
6. Have each student upload their video presentation to Bongo in MindTap.
7. Grade the video presentation using the Rubric provided with the
Instructor’s Manual on the Instructor Companion Site.
Additional questions for a classroom or discussion board: What prompted these
goods or services to be created? Compared to 30 to 50 years ago, was there a
Result: This exercise is an easy and fun way to introduce the topic of marketing.
Students get to discuss products and companies they are familiar with, which helps
them engage with core content.
2. Class activity (LO 1-2)
Format: This activity can be facilitated in both a classroom and an online
environment. Instructions for how to facilitate the activity in the classroom and
online are provided below. (Estimated time: 10-20 minutes)
Classroom Format: Have students break into groups of three or four to discuss the
Online Format: If you’re delivering your course online, you can have students do
this on their own and have them post their answers in a discussion board. Use the
following prompt to facilitate this activity:
Use the Internet to locate either a product manufacturer’s website or a service provider’s
3. Class activity (LO 1-3)
Format: This activity can be facilitated in both a classroom and an online
environment. Instructions for how to facilitate the activity in the classroom and
online are provided below. (Estimated time: 10-20 minutes)
Classroom Format: Have students break into groups of three or four to discuss
differences between sales and market orientations. Using the Internet, groups
market. Groups should share their findings with the class, including their rationale
for categorizing each of their organizations.
Online Format: If you’re delivering your course online, you can have students do
this on their own and have them post their answers in a discussion board. Use the
following prompt to facilitate this activity:
Use the Internet to locate websites for two different organizations that include the
4. Class activity (LO 1-4)
Format: This activity can be facilitated in both a classroom and an online
environment. Instructions for how to facilitate the activity in the classroom and
online are provided below. (Estimated time: 15-25 minutes)
Classroom Format: Have students work in pairs to learn more about careers in
Online Format: If you’re delivering your course online, you can have students do
this on their own and have them post their answers in a discussion board. Use the
following prompt to facilitate this activity:
5. Additional activity: Restructuring for Market Orientation (LO 1-2 – LO 1-3)
Purpose: To give students a chance to apply market orientation concepts.
Background: This exercise is designed to give students a more in-depth
understanding of the differences between sales-oriented organizations and market-
oriented organizations. It also emphasizes how marketing and a market orientation
Classroom Format: Divide your class into groups of three to five students and ask
each group to imagine that they are the executive team for a manufacturer or
service provider that has traditionally had a sales orientation. They should choose a
name for their organization and identify a specific product or service. Then, ask
them to prepare a five-minute presentation that answers the following questions:
1. What outcomes would you expect to see if you adopted a market
orientation for your organization?
Ask each group to share their results with the class.
Online Format: Discussion board with posted response from each student.
(Estimated Time: 15-25 minutes)
1. Use the following prompt to facilitate this activity in a discussion board:
Imagine that you are the owner of a small manufacturer or service
provider that has traditionally had a sales orientation. Choose a name for
1. What outcomes would you expect to see if you adopted a market
orientation for your organization?
2. What value will you offer customers? How will you and your
customers define value and satisfaction?
3. How do you describe the people for whom your product or service
is intended?
2. Have students discuss and offer constructive feedback on the intended
outcomes, benefits, target customers, mission statements, and other
plans when commenting on their classmates’ posts.
Additional Questions for Reflection:
• Why is relationship building, both within an organization and externally with
customers, so important to a market-oriented organization?
6. Online Research Activity (LO 1-1, 20-30 minutes)
a. As defined in the text, 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. This definition comes
from the American Marketing Association (AMA), which is a professional
association for those in the marketing profession. Visit and explore the AMA
Additional Resources
Appendix
Generic Rubrics
Providing students with rubrics helps them understand expectations and components of
assignments. Rubrics help students become more aware of their learning process and
progress, and they improve students’ work through timely and detailed feedback.
Customize these rubrics as you wish. The writing rubric indicates 40 points and the
discussion rubric indicates 30 points.
Standard Writing Rubric
Criteria
Meets Requirements
Content
The assignment clearly and
comprehensively
addresses all questions in
the assignment.
15 points
8 points
facts, arguments, and
conclusions are logically
related and consistent.
10 points
facts, arguments, and
conclusions are mostly
logically related and
consistent.
7 points
arguments, and
conclusions are not
logically related and
consistent.
0 points
Research
The assignment is based
upon appropriate and
adequate academic
literature, including peer
reviewed journals and
other scholarly work.
5 points
Research
The assignment follows the
required citation
guidelines.
5 points
The assignment has two or
fewer grammatical and
spelling errors.
5 points
The assignment has three
to five grammatical and
spelling errors.
3 points
The assignment is
incomplete or
unintelligible.
0 points
Standard Discussion Rubric
Criteria
Participation