Chapter 2 Strategic Planning in Contemporary Marketing 39
Projects and Teamwork Exercises
1. Answer: When students choose a company whose goods and services are familiar to them and create
a mission statement, they might start with companies they particularly admire and check their websites
for mission statement ideas. When formulating a mission statement, they should make sure that the
2. Answer: Students should first study Apple and its strategies to be leaders in innovative products, and
then they should research the products of another firm that produces either a digital music player or a
smartphone to learn about its strategy. They must understand the benefits as well as the risks involved in
3. Answer: Students are expected to understand the strategies of Samsung and Sony. In creating
marketing strategies, a firm decides to direct its efforts toward a particular group of consumers called a
target market. Students will need to narrow their marketing strategy to fit certain specific groups of
people, keeping in mind demographics, geographical location, lifestyle, etc. The strategies of Sony and
4. Answer: The students should select any industry of their choice and preference from the four options.
They must research the various companies in the industry, battling for a higher market share. From the
findings, the top three companies that have a market share totaling 70-90 percent are to be listed. Few
5. Answer: Students must select any corporation from the four listed in the text. From the available
product lines, they should select at least 6-8 and categorize them into stars, cash cows, question marks,
and dogs. Their research should be accurate enough to classify the product lines into the four distinct
Difficulty: Moderate
Critical-Thinking Exercises
1. Suppose you are a marketer for a U.S. manufacturer of pet supplies. Two top executives have
proposed expanding the company by opening retail stores and marketing pets on-site—puppies, kittens,
rabbits, birds, fish, and the like. What are the potential benefits and drawbacks of making a move like
this? How would you advise your company to proceed?
Answer: A company’s strengths reflect its core competencies—what it does well. They are capabilities
that customers value and competitors find difficult to duplicate. Straying from core competencies may
2. Netflix has made thousands of streaming videos available to its unlimited subscribers. How does this
strategy demonstrate a strategic window for the company?
Answer: The view through a strategic window shows planners a way to relate potential opportunities to
3. Choose one of the following products and describe how it may (or already has) become vulnerable to
substitution. Then describe an overall strategy—with two or three tactics—for reducing this vulnerability.
a. printed copies of periodicals or books
b. TVs
c. greeting cards
d. travel agencies
Answer: This exercise asks students for an opinion but suggest that students think about products they
use. Defending a product from competition might include adding features, delighting customers with
4. Research the website of one of the following retail firms to identify its target market. Then outline a
strategy for expanding that target market.
a. Forever 21
b. Target
c. Penzeys Spices
d. Nordstrom
e. Chico’s
Answer: Students are expected to select any one among the following retail firms. The target groups
must be clearly defined, explained, and a strategy that caters to those groups must be outlined. Ideas for
5. Research a company such as L.L. Bean or Mondelez International (formerly Kraft Foods) that has a
number of different successful SBUs. What factors do you think make these units—and this company—
successful from a marketing standpoint?
42 Part 1 Designing Customer-Oriented Marketing Strategies
Ethics Exercises
A recent news story reported a shocker from the Centers for Disease Control and Prevention (CDC):
bread is the number-one source of sodium in the average American diet. In fact, most people get twice
as much sodium from bread and rolls as they do from a bag of salty snacks like chips or pretzels.
Imagine that you are a marketer for a baking company whose main product lines are bread and rolls. For
years, your company has focused on “heart–healthy” as a key claim.
1. You have been assigned to create a new strategy and tactics for your firm’s Facebook page. Would
you continue to emphasize the heart-healthy message? Would you refer to the CDC study or ignore it?
Answer: The exercise raises some important issues and students may come up with contradicting
opinions. On one hand, there is a risk of losing market share by dropping the “heart–healthy” message.
On the other hand, beating competition would require attracting consumers using innovative, honest
2. As you review the Facebook site, you note that packaging for your company’s bread uses the words
“heart–healthy.” Would you bring this to the attention of the marketing group responsible for product
packaging? Or would you look for a way to obscure the package design online? Defend your answer.
Answer: Students can have differing opinions for this question. Some might want to bring this to the
attention of the marketing group. Some might want them to look past it. The students should justify their
Internet Exercises
1. Business portfolio analysis. Occasionally, companies sell parts of themselves to other firms. One
stated motive for such divestitures is that the sold assets are a poor strategic fit for the rest of their
business portfolios. One recent example is the sale of a controlling interest in NBC Universal by General
Chapter 2 Strategic Planning in Contemporary Marketing 43
Electric to cable giant Comcast. Using a major search engine, research the sale of NBC Universal. In the
context of business portfolio analysis, why did GE decide to sell, and why did Comcast decide to buy
NBC Universal?
Answer: Student answers will vary. Students are expected to visit a few websites that provide information
on business portfolio analysis, NBC Universal, General Electric, and Comcast. The answers may include
some of the information that follows.
2. Mission and Objectives. Visit the corporate website of Under Armour (www.uabiz.com).Define the
firm’s mission and objectives, and discuss how its brand and activities support both.
Answer: Student answers may vary. The mission statement of Under Armour is “make all athletes better
through passion, design, and the relentless pursuit of innovation. The firm’s objectives can include fast
3. SWOT Analysis. Visit the website of an organization whose goods and services interest you—such as
Columbia Sportswear, the new SEC network, Expedia, or Urban Outfitters. Based on your research,
create a SWOT analysis for your firm. Outline your own ideas for increasing the firm’s strengths and
reducing its weaknesses.
Answer: Student answers will vary according to the product and industry they choose. In a SWOT
analysis, the strengths of a firm are typically internal and are the core competencies of the firm, like
Case 2.1 Hotels Target Millennials with New Amenities—Questions for Critical Thinking
1. Hotel chains see millennials as critical to their financial growth. What are some reasons why?
Answer: Millennials have become the target market for hotel chains of late. Some of the reasons for this
change in target could be that the millennials wield a spending power of billions of dollars a year. The
2. How should the hotel industry use social media to connect with younger travelers?
Answer: The social media can be used in various ways in order to connect with young guests. Hotels, by
increasing their online presence, can monitor complaints or suggestions that are being posted and take
Video Case 2.2 Nederlander Producing Company Spotlights Customer Rewards—Questions for
Critical Thinking
1. How does the Audience Rewards program support Nederlander’s overall strategic plan?
2. It might seem as though Nederlander’s first-mover strategy has the entertainment rewards market
locked up. But what strategies and tactics could a second-strategy mover use to gain access to theater
customers?
Answer: A second mover could use the following strategies and tactics to gain access to the
Chapter 2 Strategic Planning in Contemporary Marketing 45
COLLABORATIVE LEARNING EXERCISES
Niche Marketing
Purpose:
To help students understand the importance of an appropriate niche market segment
Background:
This exercise is to help the students understand how an organization directed at a particular niche
market segment has more scope
Relationship to Text:
Target market
Estimated Class Time:
25 minutes
Materials/Preparation:
Develop a list of niche business types for your students to analyze in small groups. Possibilities
include a luxury watch store, a diamonds store, a luxury car company, etc.
Exercise:
Present the class with a list of business types. Begin by brainstorming for a general list of
consumer groups that can serve as niche groups. Then, divide the students into two groups. Have
First-Mover Strategies
Purpose:
To help students gain insight into the concept of first-mover strategy
Background:
This exercise is to make the students aware of the risks and advantages of opting this strategy
Relationship to Text:
First-mover strategy
Estimated Class Time:
15 minutes
46 Part 1 Designing Customer-Oriented Marketing Strategies
Materials/Preparation:
None needed
Planning Throughout the Organization
Purpose:
To highlight a key challenge in gathering information for strategic planning
Background:
Research clearly states that when your entire organization gathers and shares information, the
planning process is more effective and better integrated into the organizational culture. But the
Relationship to Text:
Planning at Different Organizational Levels
Estimated Class Time:
About 10 to15 minutes
Preparation/Materials
None needed
Exercise:
Ask your class why they think it is so difficult to achieve a free flow of information and ideas in
most companies. As they share their thoughts, you may want to point out that money isn’t always
the answer; in fact, offering money in exchange for ideas can spawn a counterproductive,
Questions for Reflection:
Chapter 2 Strategic Planning in Contemporary Marketing 47
Defining the Organization’s Mission and Objectives
Purpose:
To give students a personal perspective on mission statements
Background:
This exercise is designed to explore and articulate their personal “mission statements.” Typically it
is both interesting and inspiring, and helps students understand how organizations use their
mission statements to differentiate themselves and to guide their decision-making at a more
visceral level.
Relationship to Text:
Defining the Organization’s Mission and Objectives
Estimated Class Time:
About 10 minutes
Preparation/Materials:
Each student will need paper and a pencil or pen.
Exercise:
Ask each student to spend a few moments writing a personal mission statement for his or her life.
For the discussion to be effective, avoid providing many cues. You can let the discussion
Questions for Reflection:
• What are the characteristics of a strong mission statement? (You might want to precede this
question with some examples of corporate mission statements. Some possibilities: Merck—to
preserve and improve human life; Mary Kay—to give unlimited opportunities for women.)
• Extend the exercise by asking each student to do a personal SWOT analysis, the logical next
step in strategic planning.
Strategic Planning
Purpose:
To give your students hands-on experience with basic strategic planning for a very familiar
entity—themselves!
Background:
48 Part 1 Designing Customer-Oriented Marketing Strategies
Relationship to Text:
Strategic Planning
Estimated Class Time:
About 15 minutes
Preparation/Materials:
Each student will need paper and a pencil or pen
Exercise:
Ask students to write down a brief strategic mission statement for their careers, looking at the five-
year horizon. From a professional standpoint, what do they aspire to be? Collect the papers,
shuffle them, and redistribute them to the class. Ask each student to write a five-point strategic
Questions for Reflection:
• Was it easy or hard to write the plan? Why? Where did they have problems?
• How could a strategic plan help develop your career? Why?
• How does developing a personal strategic plan compare to developing a business strategic
plan?
Formulating a Marketing Strategy
Purpose:
To help students explore strategic solutions for a contemporary marketing issue
Background:
Not surprisingly, fast-food restaurants are feeling under siege. Recent studies are highlighting
health hazards across the U.S. and citing rampant obesity, child obesity, the dangers of trans fats,
and more. As low-carb diets became popular, retail sales of french fries—a staple of fast-food
Relationship to Text:
Formulating, Implementing, and Monitoring a Marketing Strategy
Estimated Class Time:
About 20 to 25 minutes
Preparation/Materials:
Chapter 2 Strategic Planning in Contemporary Marketing 49
You may want to copy the background and the case situation for each student.
Exercise:
Divide your class into small groups and share with them the following case. Situation: You and
your teammates are partners in the ownership of a medium-sized fast-food chain in the Midwest.
You own 41 outlets, most of them in small towns. The mainstay of your menu is hamburgers and
Questions for Reflection:
• What additional information do you need to formulate the best solution?
• What are the ethical implications of each choice?
• Should your personal perspective play a role in your strategic decision making? Why or why
not? (You may want to preface this question by asking how many of your students eat fast
food more than once a week.)
Promotion Strategy and Pricing Strategy
Purpose:
To explore the relationship between the promotional and pricing strategies
Background:
Clearly, all elements of the marketing mix are interrelated, so this exercise is designed to highlight
the links between promotion and pricing
Relationship to Text:
Promotion Strategy and Pricing Strategy
Estimated Class Time:
About 15 minutes
Preparation/Materials:
Each student needs to have unlined paper and a pencil or pen
Exercise*:
Break your class into small groups. Ask each group to choose a good or a service that they all
know and like, and to create two ads for that product: one that focuses on price, the other on the
50 Part 1 Designing Customer-Oriented Marketing Strategies
The Marketing Environment
Purpose:
To highlight the importance of the marketing environment
Background:
This quick, discussion-based exercise is designed to help students better understand the impact
of the external environment on marketing decisions
Relationship to Text:
The Marketing Environment
Estimated Class Time:
About 10 minutes
Materials/Preparation:
None needed
Exercise:
Choose a branded product that your students seem to all know and enjoy. Higher-end products,
such as an Apple iPod or a Burton snowboard seem to work especially well for this exercise.
Guide your students in a discussion of how each element of the external environment—
Questions for Reflection:
• Which element of the marketing environment is most important? Why? Would the answer be
different for different product categories?
BCG Matrix
Purpose:
To help students gain a fuller understanding of the BCG matrix as a planning tool
Chapter 2 Strategic Planning in Contemporary Marketing 51
Background:
While the concept of the BCG matrix is straightforward, many students have trouble
understanding how it applies to actual situations as an investment tool. This exercise is designed
to foster a deeper understanding through a hands-on case study approach.
Relationship to Text:
BCG Matrix
Estimated Class Time:
About 25 minutes
Materials/Preparation:
None needed
Exercise:
Announce to your class that they will do a case study on the talent agency business (which most
of them find more glamorous and exciting than it really is). Begin by brainstorming a list of movie