Marketing Chapter 24 Homework Target Marketing Involves Consciously Picking Some Target

Part IV

CHAPTER 1: MARKETING’S VALUE TO CONSUMERS,

FIRMS, AND SOCIETY

CHAPTER 1 – COMMENTS ON QUESTIONS AND PROBLEMS

1- 1. This question is intended to stimulate the same kind of thinking that is prompted by the

introduction to the chapter. The point is to encourage students to take a more personal view of

1- 2. This is really just a contemporary variation on the “better mousetrap” line of thought – framed

in the context of an important new technology. Even so, it deals with the question of whether it

is “enough” just to develop a good new product that serves an important need. It is certainly

1- 3. The macro view of marketing is concerned with how a whole marketing system works, while

the micro view of marketing is concerned with how individual firms do and/or should operate.

1- 4. Answers to this question will vary from student to student. The point of the question is to

prompt the student to think more deeply about the concepts of separation of information and

separation of time between consumers and producers. Take a look at Exhibit 1-1 in the text.

Separation of time results because consumers may not want to consume goods at the time

they are produced, and time may be required to transport goods from producer to consumer.

Student responses about how these separations are overcome will usually focus on

transporting, storing, and functions provided by intermediaries.

Separation of information occurs because producers do not know who needs what, where,

when and at what price. Consumers do not know what is available from whom, where, when

and at what price. For example, if you want to take a trip by plane you usually know where you

want to go and when, but you typically have little idea about what airline, what flight, and at

what cost.

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1- 5. This question seeks to get the students to see that considerable planning and thinking has

1- 6. See section “Macro–Marketing” in the text.

1- 7. There is no doubt that growth of the Internet will open up new marketing opportunities – it

already has, and so far we’re just seeing the tip of the iceberg. Will growth of these services

ultimately eliminate the need for retailers and wholesalers? Perhaps over the longer run we

will see services such as these taking over for some types of retailers and wholesalers.

Clearly, at present the focus of the Internet (and other similar network systems) is on fast,

interactive communication. In the past, most marketing communication has been limited – it’s

one way communication from seller to buyer – except in the case of personal selling. The

Internet, direct response cable TV, and even toll–free telephone systems are quickly changing

that.

1- 8. A small producer might want an independent marketing research firm to take over some of its

information gathering activities if the research specialists can do the job more effectively (i.e.,

with greater accuracy) or more efficiently (i.e., at lower cost) than the firm could do it. The

focus here should be on the possibilities of capturing the advantages (skill, experience) of

1- 9. In a command economy, government officials decide what and how much is to be produced

and distributed by whom, when, and to whom. In a market–directed economy, on the other

hand, producers and consumers make their own economic decisions. That is, the producers

decide what they are going to offer, and consumers decide, independently, which of all of the

offerings they will accept. In other words, the economy is directed by the “market mechanism”

that relies on many micro level decisions by individual producers and consumers. Each

decision may be small, but together they determine the macro level decisions for the whole

economy.

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1-10. The students should be led to see that the evolution of wholesaling and retailing, as we have

traced it, was the result of enterprising businesses attempting to satisfy consumers more

efficiently. Some organizations have started with government support, but basically most of

our business organizations were formed to make a profit serving consumers. In contrast, in a

command economy, some consumer–oriented, but not necessarily profit–oriented, government

Some good students have difficulty visualizing the development of a wholesaling and retailing

system under a command economy. They can see the possibility of operating a simple

agrarian community where everyone shares according to his needs; but as these economies

grow, they have difficulty seeing how such a system can expand (i.e., what or who directs the

growth and who provides the risk capital). As has been hypothesized by some economists,

perhaps a command economy would not naturally evolve into an advanced system. Incentives

may be necessary to keep a command economy growing. And “black markets” may have to

develop to adjust for “errors” in planning by government officials. Historically, “black markets”

usually develop when there is planning and/or rationing, unless very severe penalties are

imposed (and this may only raise the price!).

1-11. Students will give many different examples here. The basic point is that a market–directed

system encourages innovation because there is incentive (profit) to find a better way to meet

1-12. In the text, the marketing concept is defined in section “What Does the Marketing Concept

Mean.” A firm must have some objective to guide its efforts – and a profit orientation provides

such an objective. But the marketing concept says that an organization should have more than

1-13. The question is intended to deepen the students’ understanding of the marketing concept.

Applying it to the local situation can be illuminating, especially if there has been much

discussion of the role of the student in college affairs. Substantial change might be indicated in

some circumstances. But at the same time, it should be seen that “all” students’ views (not just

Chapter–by–chapter aids: Chapter 1

IV-1-4 Perreault, Cannon, & McCarthy

institutions – academic, government, and business.

1-14. Distinguishing between a “production orientation” and a “marketing orientation” is not always

easy because the differences may not be readily observable – that is, they may be more in the

mind and attitude of the business manager or his firm than in his physical facilities or actions.

1-15. If the marketing concept is accepted and the firm comes to see that all the activities of the firm

ought to be directed toward satisfying some customers’ needs at a profit, then it is obvious that

all the internal activities should be integrated as well – into a “total system.”

1-16. Students will come up with a variety of benefits and costs associated with the products for this

question. At this point in their thinking about customer value, it is probably less important that

they be detailed or exhaustive in coming up with examples than it is that they grasp the

concept that each product (actually, each marketing mix) may have a variety of different

benefits and costs. A class discussion is likely to highlight some cases when one student sees

something as a benefit, but a different student argues that it is not so much a benefit as it is a

cost if it is missing (e.g., good gas mileage may be a benefit of a car, or it may represent a cost

if it is missing). The fact that different customers may “frame” benefits and costs in different

1-17. This exercise is designed to help students see how marketing principles can apply beyond the

typical products. It also allows them to develop a deeper understanding of the concepts of

value, costs, and benefits which are covered in this chapter. Students may come across any

range of benefits they can provide for a prospective employer — from broad ideas like problem

solving or new ideas to something very specific — such as completing tax forms, building

websites, and making sales calls. Costs include the more obvious salary, wages, and benefits

— but also include training. An employee that frequently arrives late or often misses work

Part IV

provides lower benefits but also increases costs when other employees must be added to

1-18. Student answers will vary significantly here. The purpose of the question is to prompt students

to think more deeply about the difference between buyer–seller exchange and the opportunities

that exist for more enduring relationships, especially when a customer is likely to have the

same need (or a similar need) again in the future.

1-19. High performance cars are fun, and their popularity has been enduring. At the same time, as

accident statistics show, people driving high performance cars are more likely to be in

accidents. High performance cars also tend to use more fuel and to spew more fumes into the

atmosphere. These side effects impact consumers who are not interested in owning or driving

a high performance car. Over time there has been discussion of regulations to limit the top

Many consumers like the convenience of bank credit cards. They don’t like to carry cash, but

want to be able to make purchases when the need arises. On the other hand, critics argue

that “instant credit” encourages many people – especially the poor – to spend money they

don’t have. Some economists also argue that “too–easy” credit has had serious economic

effects – because many Americans do not save as they once did. Another issue here is the

cost of providing credit services. Banks take a percent of the revenue from credit card

purchases – and there is a cost of “bad debt” that is included in the cost of using cards. Some

critics argue that all consumers – not just those who use credit cards – have to pay higher

prices because of this. Of course, some firms offer two prices – one for credit card purchases

and one for cash.

Chapter–by–chapter aids: Chapter 1

IV-1-6 Perreault, Cannon, & McCarthy

example, run–off of pesticides from fields into lakes, streams, and rivers (or into groundwater in

other ways) has the potential to contaminate drinking water. Some people think that the use of

pesticides leaves toxic residue in or on crops, and that there is a serious hazard, over time, of

eating food that has been treated with pesticides. Other critics argue that the use of pesticides

DISCUSSION OF COMPUTER-AIDED PROBLEM 1: REVENUE, COST, AND

PROFIT RELATIONSHIPS

This is a simple “practice” problem to introduce students to the software, to sensitivity analysis, and to

revenue, cost, and profit relationships – a recurring theme in later problems.

The spreadsheet for this problem involves only a few rows. The focus of the questions is on making

certain that the student knows how to “read” the spreadsheet. The various questions involved also lead

the student through the steps of using the various features in the PLUS software.

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Instructor’s Manual to Accompany Basic Marketing IV-1-7

P L U S – SpreadSheet

Calendar

Notebook

Selling Price

5.00

*

2.00

*

Quantity Sold

2700

*

6000

*

Profit or Loss (Revenue – Total Cost)

Answers to Computer–Aided Problem 1:

a. This question just encourages the student to study the spreadsheet layout and understand the

numbers on the screen. The answers, as can be seen from the initial spreadsheet display above, are

as follows:

Revenue from Calendars

$13,500

Revenue from Notebooks

$12,000

Profit from Calendars

$ 2,000

Profit from Notebooks

$ 3,000

b. If Quantity Sold remains 2,700 and the price of calendars is increased to $6.00, then

Revenue from Calendars

$16,200

Profit from Calendars

$ 4,700

This question encourages students to do their own “checking” of numbers from the spreadsheet.

The objective here is not just to get them to do arithmetic, but rather to make them realize that in this

spreadsheet (and all the others that follow!), that they can “follow” how the numbers on the

Calendar

Notebook

6.00

*

2.00

*

2700

*

6000

*

Chapter–by–chapter aids: Chapter 1

IV-1-8 Perreault, Cannon, & McCarthy

c. This question simply introduces the student to the PLUS program What If capability. The What If

data display for this result is given below.

P L U S – What If Data Display

–Notebook–

Selling Price

Revenue

Profit or loss

1.60

9600.00

600.00

1.76

1560.00

1.84

2040.00

1.92

2520.00

2.00

3000.00

2.08

3480.00

2.16

3960.00

2.24

4440.00

2.32

4920.00

The correct answers are underlined in the Display. Profit reaches $5,400 at a price of $2.40 and is

$1,080 when the price is $1.68.

CHAPTER 1 – COMMENTS ON USE OF SUGGESTED CASES WITH THIS

CHAPTER

Case 1: McDonald’s “Seniors” Restaurant

This case can be used to illustrate what marketing and business is all about – anticipating the material in

Chapter 2 – on market–oriented strategy planning – without introducing the technical words which are

Case 2: Golden Valley Foods, Inc.

V.

Case 18: Whistler Township Volunteer Fire Department

If this case is used with Chapter 1, the instructor may have to introduce students to some of the

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Instructor’s Manual to Accompany Basic Marketing IV-1-9

Video Case 1: Chick-fil-A

This video summarizes the marketing strategy of Chick–fil–A®, the second largest quick–service chicken

restaurant chain in the United States, based on sales ($1.975 billion in 2005). It operates over 1,250

restaurants in 37 states and Washington, D.C. Its 2005 performance marks the 38th consecutive year of

system–wide sales gain. The case provides a nice overview of the micro–marketing. For more details see

the Video Instructor’s Manual on the Instructor’s Resource CD or the Instructor side of the Online

Learning Center (www.mhhe.com/fourps).

CHAPTER 1 – COMMENTS ON USE OF ETHICS QUESTION WITH THIS CHAPTER

Situation: A customer purchases a Sony digital camera that comes with a 90–day manufacturer’s

warranty on parts and labor. The salesperson suggests that the customer consider the store’s three–year

extended service to cover any problems with the camera. The customer replies, “I’m getting a Sony

because it’s a reputable brand—and at $98 the service agreement is one–third the cost of the camera.”

This situation allows for discussion of a variety of topics. One concerns the extent to which customers

are responsible for the choices they make. The customer was offered the extended warranty – and made

the decision, on her own, to not purchase it. The customer also decided to purchase the Sony rather than

some other brand that might have had a longer manufacturer’s warranty. The store might be able to get

Sony to honor the warranty, but we don’t know here if that is possible or if the store manager would want

to try. Manufacturers worry that retailers sometimes misrepresent when problems with a product

occurred to “give customers a break” or pass an out–of–warranty problem back to the manufacturer.

The manager might want to consider how her response may affect the store’s reputation (effects which

may be greatly magnified by the threat of posting online). The discussion could also reference the

marketing concept – where the foundations of profit and customer satisfaction may be seen as at odds in

this situation.

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IV-1-10 Perreault, Cannon, & McCarthy

consumer organizations advise against buying extended service agreements on just about any product—

because they are not a good value. Most problems arise within the warranty period anyway. So some

students may argue that it is not ethical to sell service agreements. If other students don’t counterrgue, it

may be useful to ask whether consumers are required to buy the agreement and, further, whether it’s ok

to let consumers (who don’t want the risk) decide if it’s worth the price.

CHAPTER 1 – COMMENTS ON USE OF CREATING MARKETING PLANS

QUESTION WITH THIS CHAPTER

Note: The Creating Marketing Plans questions begin in Chapter 2

CHAPTER 1 – SUMMARY OF CONNECT HOMEWORK EXERCISES

Exercise 1.1: Universal Functions of Marketing

Question Type: Drag–and–drop

Exercise 1.2: Five Stages of Marketing Evolution

Question Type: Timeline

Exercise 1.3: Production and Marketing Orientation

Question Type: Drag–and–drop

Learning Objectives: 1–1, 1–5, 1-8

Topic: What does the marketing concept mean?

Exercise 1.4: Chick Fil A: Eat Mor Chikin (Except on Sunday)

Question Type: Video case

Chapter–by–chapter aids: Chapter 2

CHAPTER 2: MARKETING STRATEGY PLANNING

CHAPTER 2 – COMMENTS ON QUESTIONS AND PROBLEMS

2- 1. A marketing strategy includes the selection of a target market and the development of a

marketing mix. So a marketing mix is only part of a marketing strategy.

2- 2. Target marketing involves consciously picking some target (which might be the “mass market”)

while mass marketing is not focused on some specific customers. The managers just naively

2- 3. The target customer is placed in the center of the four Ps because the customer should be the

focal point of all marketing efforts and really all business efforts. Without potential customers –

2- 4. It is important for a firm to have a clearly defined target market even if a company sells its

products only from a website. This question is designed to prompt students to think about the

idea of the website in the context of the marketing mix. The fact that the firm is distributing to

customers “direct” via its website (rather than through wholesalers or retailers) is certainly an

important decision in the marketing mix context, but the fact that the website it available to

customers from all over the world doesn’t mean that the firm’s offering will be attractive to

customers regardless of geographic location. The marketer still needs to think about the

2- 5. This question basically serves as a review of the text discussion in section “Developing

Marketing Mixes for Target Markets.”

2- 6. This question is designed to get the students thinking more seriously about what should be

included in a marketing strategy – that is, to get them below a superficial definition of marketing

strategy. Ideally, a strategy should include policy statements with respect to how each of the

IV-2-2 Perreault, Cannon, & McCarthy

2- 7. Strategy decisions are concerned with “grand plans,” while operational decisions are

concerned with more detailed decisions – which are made within the framework of the strategy.

2- 8. This question provides students with an opportunity to demonstrate their level of comfort with

this concept. This chapter provides the following definition: “the expected earnings stream

(profitability) of a firm’s current and prospective customers over some period of time.”

2- 9. A strategy is a “big picture” of what a firm will do in some market. A marketing plan includes a

strategy and the time–related details for carrying out the strategy. And a marketing program is

2-10. This question is designed to get the students thinking about the various target markets which

might be aimed at for a particular product – and the many factors which ought to be

considered. If the instructor is familiar with the development of a new marketing strategy, it

probably will be preferable to substitute this product for one of those suggested – in order to

give the students a better “feel” for reality.

This exercise can easily lead into an interesting discussion of marketing strategy planning and

all of the problems that can arise (but the instructor must guard against it degenerating into just

a “bull” session). The general approach will be illustrated below for the new toothbrush.

The students must be led to see that there are many different potential target markets before

going on to the development of one whole strategy. It might help to begin by trying to

determine the degree of interest of some target consumers in toothbrushes in general – and

the extent of interest they might have in the particular kind of product being considered. Using

the marketing strategy diagram in Exhibit 2-9 as a framework – to begin to segment the

“toothbrush market” – you could lead them to ask questions such as: What do consumers look

for in toothbrushes? Why do they buy them? Where do they buy them? How much do they

pay for them? Who buys them? All of these questions should be raised by the students.

Chapter–by–chapter aids: Chapter 2

The next step would be to analyze the product in the light of the consumers’ image of

toothbrushes and the ritual of toothbrushing. If this product seems to have any possibilities for

satisfying the needs of some consumers, then the other three Ps – Place, Promotion, and

Price – will have to be considered. Where consumers traditionally buy toothbrushes may have

a bearing on where they will have to be distributed. If the same types of places are chosen, a

A. The marketing problems I believe I would face if I were to develop a new design for a

toothbrush:

Concerning the consumer:

1. Characteristics of buyer and users.

Concerning the product:

1. Quality.

2. Models and sizes.

Concerning the place:

1. Number of wholesalers and retailers.

2. Degree of aggressive retailer cooperation.

Concerning the price:

1. Factory price.

Concerning the promotion:

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IV-2-4 Perreault, Cannon, & McCarthy

B. The first thing we have to do in setting up the marketing strategy is to determine the target

market. The target for a new spinning reel would, most naturally, be the sport fisherman.

Since the consumer is of such great importance in the selection of a strategy, he should be

considered first and quite well. To begin with, sport fishermen can be from any social or

financial class. This fact in itself presents somewhat of a problem. The reel has to be such

that it will appeal to the majority of the people from these different groups.

The price of the reel now has to be set so that it will move fairly fast on the market.

Competition will naturally have something to do in determining this price. You must also take

into account the distributors and sales force and whether you are going to pay them a high

commission.

Since this is a new product, promotion is going to be of major importance in establishing good

markets. You will have to concern yourself with advertising, sales promotions, and training

salespeople among other things. I think these would be the greatest problem areas you would

encounter.

**********

C. Consumers: The market target for the new wonder drug is all consumers, since at one time or

another everybody gets sick. The drug will be also aimed at children since children are always

getting sick. The drug should be promoted more to residents of cold or damp sections of the

country since susceptibility to sickness is greater in these areas.

The number of other brands are few since this is a new wonder drug. Brand loyalty will be low

since this is a new product.

Place: Samples should be distributed to doctors. The main distribution will be through

drugstores and drug counters in department stores.

Chapter–by–chapter aids: Chapter 2

Promotion: Since it is a medical discovery and a significant one, an attempt should be made to

have articles printed in the various medical journals to show doctors how good the product

really is. Television is the best medium for advertising the product. ‘A famous doctor says’

approach should be avoided since I think it is boring to people. But the doctor should not be

left completely out the advertisement. It should be brought out that the drug is safe for all

ages. All other modes of advertisement should also be used.

**********

2-11. This is an integrative question. As indicated in section, “What Does the Marketing Concept

Mean,” of the text, all functional areas are dependent upon a firm’s market–oriented plans. A

market–oriented plan starts with customers and then expects the rest of the firm to arrange its

affairs accordingly. Therefore, an example from any functional area would be appropriate

here.

2-12. This is an important question. It gets at a key reason why it is hard for firms to be successful!

It will prompt a wide variety of different answers (and has the potential to generate some very

good interaction if it is discussed in class). Most students think that the marketing concept

sounds like a simple idea, and students with less work experience often think that it is easy for

a firm to implement. Those with more experience are likely to “make excuses” for companies

because they are more attuned to the problems. But discussion of this question helps to

highlight some of the reasons that the marketing concept is not easy to implement.

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IV-2-6 Perreault, Cannon, & McCarthy

or maybe just in a bad mood that day? Is it possible that the customer was partly at fault? Is

the customer really always right? Can a firm afford to satisfy everyone?

2-13. An “attractive” opportunity for a firm is one that the firm has some chance of doing something

about – given its resources and objectives. A “breakthrough” opportunity is an attractive

opportunity that will enable the innovators to develop hard–to–copy marketing mixes which will

be very profitable for a long time.

Students will give a wide variety of examples here. They are often better at identifying

“attractive” opportunities than “breakthrough” opportunities. In particular, it is not unusual for

students to think that just about everything is “hard to copy.” Discussion of this question is a

good way to highlight the importance of analyzing the current competitive environment and/or

what is likely to happen with it in the future. This can be used to foreshadow discussion in

Chapter 3 as well as product life cycle concepts that are developed more fully in Chapter 9.

2-14. By defining a market in terms of a market’s needs, it is usually possible to see subsets that are

not completely satisfied with the present offerings. And the students should be able to come

2-15. The basic logic for thinking of the marketing strategy planning process as a narrowing down

process is to be certain that the marketing manager considers the various alternative

opportunities that might be available before putting all of his or her energy and the firm’s

2-16. The major differences among the opportunities are related to whether the firm uses its present

products or new products while pursuing present markets or new markets. Note: The

2-17. Familiarity with the firm’s current market would probably reduce the cost and risk. The farther

a firm moves from its present activities, the less it is likely to know about the market and its

problems. “The grass is not always greener on the other side of the fence.”

2-18. The text provides a discussion of reasons that international opportunities should be

Chapter–by–chapter aids: Chapter 2

(b) people in a foreign market may have needs that the firm could meet, and the people

may have the money they need to be customers;

2-19. The main purpose of this question is to encourage students to think about all of the products

that they buy/use/consume that come from foreign producers. The reasons that they give for

purchasing a specific product will vary dramatically – ranging from economic–oriented issues

(low cost, good reliability) to emotional reasons (the status of French perfume, the “in” styling

of an Italian designer). Regardless of the purchase reasons, students will usually conclude

firms from all over the world are competing to “capture” customers wherever they may be.

DISCUSSION OF COMPUTER-AIDED PROBLEM 2: TARGET MARKETING

In this problem, the student evaluates the profitability of a target marketing approach compared to a mass

marketing approach. The spreadsheet for the problem focuses student attention on the size of the

segments, the “share” that a firm wins in that market, costs of blending a marking mix to reach the

market, and revenue and profit relationships.

The initial spreadsheet for the problem appears below:

P L U S – SpreadSheet

Targeting

Mass Marketing

PRODUCT: Production Cost per Unit

8.00

*

7.50

*

PLACE: Distribution Cost per Unit Sold

2.00

*

2.50

*

PROMOTION: Total Promotion Cost

12000.00

*

60000.00

*

PRICE: Selling Price per Unit

16.00

*

14.00

*

10000.00

*

20000.00

*

Percent of People Who Will Buy

80.00

*

40.00

*

50.00

*

20.00

*

38000.00

Answers to Computer–Aided Problem 2:

a. The numbers needed to answer this question are given on the initial spreadsheet (given above).

Students will approach the calculations in different ways, but an example approach is given below:

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IV-2-8 Perreault, Cannon, & McCarthy

First, let’s look at the quantity sold:

25,000 number of people in the market

x .80 percent of people who will buy

20,000 people who will buy

x .50 firm’s share of purchases

10,000 people who will buy from the firm = quantity sold

Then, to get total costs we must add total promotion cost and overhead:

$100,000 total production and distribution cost

$ 12,000 total promotion cost

+ $ 10,000 overhead costs

$122,000 total cost

Many students will compute profit by simply subtracting costs from revenue. At this point, that is fine.

But, it may be useful to go through the type of detail given above in class – or provide the information

as a hand–out. The idea here is to encourage students to think carefully about the numbers of the

spreadsheet – about what they mean and how they relate. Developing skill in this area is important

to marketing managers – and attention is focused on this throughout the whole computer–aided

problem set.

b. If the target marketer could reduce distribution cost by $.25 per unit, from $2.00 to $1.75, total profit

would increase by $2,500.00 – from $38,000.00 to $40,500.00. The point here is that reducing the

cost of any element of the marketing mix – if it still meets the needs of target customers – will help to

improve profits. The spreadsheet for this analysis is shown below:

P L U S – SpreadSheet

Targeting

Mass Marketing

PRODUCT: Production Cost per Unit

8.00

*

7.50

*

PLACE: Distribution Cost per Unit Sold

1.75

*

2.50

*

PROMOTION: Total Promotion Cost

*

PRICE: Selling Price per Unit

*

Percent of People Who Will Buy

*

Chapter–by–chapter aids: Chapter 2

c. If the target marketer can increase his share of the market from 50 percent to 60 percent, his profit

will increase to $53,000.00 (assuming that the lower distribution cost from question b above is

maintained). Or, if the original $2.00 a unit distribution cost is used in the spreadsheet, the profit will

increase to $50,000. This analysis shows that the target marketer who can really fine–tune his

marketing mix to the needs of the target market can increase his share of the business from that

CHAPTER 2 – COMMENTS ON USE OF SUGGESTED CASES WITH THIS

CHAPTER

Case 3: NOCO United Soccer Academy

This case can be used to introduce the marketing strategy planning process and customer equity – both

of which are discussed throughout the rest of the book. The NOCO United case provides an early

opportunity to use both of these frameworks. The marketing strategy planning process in Exhibit 2-9

might be shown on the board and used to help guide discussion. In fact the shortage of information on

competitors – at least in the short case – becomes more obvious when this framework is shown. There is

a need to match the company strengths with customer needs. A S.W.O.T. analysis might be done to help

students understand these concepts.

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Case 4: Hometown Tech

This case can be used to illustrate ideas related to marketing strategy planning, including S.W.O.T.

analysis. A young woman decides to go into business (doing computer service work) in a small town

where she is in direct competition with another established competitor who has a strong reputation and a

Case 5: Polystyrene Solutions

Case 12: DrJane.com—Custom Vitamins

This case can be used as an opportunity to introduce students to a relatively straightforward financial

analysis involving some topics related to customer equity. See case discussion in Part V.

Case 29: Quality Iron Castings, Inc.

This case can be used here to illustrate production–oriented thinking – and the need for more marketing–

oriented strategy planning. It also can be used toward the end of the course to “wrap everything up.”

See case discussion in Part V.

Video Case 1: Chick-fil-A

This video summarizes the marketing strategy of Chick–fil–A®, the second largest quick–service chicken

restaurant chain in the United States, based on sales ($1.975 billion in 2005). It operates over 1,250

Video Case 2: Bass Pro Shops

Bass Pro Shops is the nation’s leading retailer of outdoor gear. It also is regarded as a master marketer

Video Case 4: Potbelly Sandwich