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Chapter 1

Defining Marketing for the 21

Key Chapter Concepts:
What Is Marketing?
What Is Marketed?
Who Markets?
Key Customer Markets
How Is Marketing Done?
Core Marketing Concepts
A) Marketing Channels
B) Marketing Environment
The New Marketing Realities
New Consumer Capabilities
New Company Capabilities
Production Concept
Product Concept
Selling Concept
Marketing Concept
Holistic Marketing Concept
Relationship Marketing
Integrated Marketing
Internal Marketing
Performance Marketing
Social Responsible Marketing


1) What is Marketed?
Ask each student to select a company of their choosing and prepare a listing of all of the
marketing messages the company disseminates through their various communication channels.
The student is to examine the company’s public relations messages, their television advertising,
Internet advertising, and printed messages. Students should collect this information and try to
discover if there is a commonality of message, preference for one form of communication over
another (by frequency), or a series of non-related messages.

2) Marketers and Prospects
In small groups, ask the students to visit an on campus eatery. During this experience, have the
students keep a diary of their exposures to marketing messages. How are the messages being
communicated—visually through signs and posters, by sound, or via verbal communication?
Ask the students to break down these messages into 1-minute segments, and then total the
amount of messages for the time spent in the eatery. What conclusions can you draw from the
number of messages exposed to in the time-period for marketers?
Assign students the task of visiting some companies’ Web sites to see if they feel that the
company is responding to the changes in marketing today, namely, customer-orientated
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marketing. Suggestions include firms like: Rollerblade and Ben and Jerry’s Ice Cream. Have
the students comment on what they find there of particular interest to them.

Students can choose a firm of their preference, interview key marketing management members
and ask the firm how they are reacting to the changes in marketing management for the 21

Century (students should ask and have answers to all of the 14 points listed in the chapter in
Table 1.1).

3) Marketplaces, Marketspaces, Metamarkets

Have the students reflect upon their favorite product and/or service. Then have the students
collect marketing examples from each of these companies. This information should be in the
form of examples of printed advertising, copies of television commercials, Internet advertising,
or radio commercials. During class, have the students share what they have collected with
others. Questions to ask during the class discussion should focus on why this particular example
of advertising elicits a response from you. What do you like/dislike about this marketing
message? Does everyone in the class like/dislike this advertising?

4) Marketing Environment
Have the students visit a retail mall or other type of retail establishment. During their visit, ask
the students to keep a log of the marketing messages they encounter. Such messages can be in
the form of emotional advertising, price-point advertisements, store design and layout, or
sensual advertisements such as smell or sound. Ask the students which retail establishment
enticed them the most and why? Have the students share these experiences and ask the class if
others in the class would be similarly affected (male versus female for example).

5) Shifts in Marketing Management

Have the students read Suzanne Veronica’s “Marketers Aim New Ads at Video iPod Users,”
Wall Street Journal, January 31, 2006 and Li Yuan and Brian Steinberg’s “Sales Call: More Ads
Hit Cell Phone Screens,” Wall Street Journal, February 2, 2006, p. B3 and comment on how
effective they believe cell phone advertisements will be in the future.

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Chapter 2

Developing Marketing Strategies and Plans

Key Chapter Concepts:

Marketing And Customer Value
The Value Delivery Process
The Value Chain
A Holistic Marketing Orientation And
Customer Value
Value Exploration
Value Creation
Value Delivery—What Companies Must
The Central Role Of Strategic Planning
Corporate And Division Strategic Planning
Defining The Corporate Mission
Defining The Business
Assessing Growth Opportunities
Intensive Growth
Integrative Growth
Diversification Growth
Downsizing And Divesting Older Businesses

Marketing Innovation
Business Unit Strategic Planning
Business Mission
SWOT Analysis
External Environment (Opportunity And
Threat) Analysis
Internal Environment (Strengths/Weaknesses)
Goal Formulation
Strategic Formulation
Porter’s Generic Strategic
Strategic Alliances
Program Formulation And Implementation
Feedback And Control
Product Planning: The Nature And Contents
Of A Marketing Plan


1) Marketing and Customer Value
Each student is in effect a “product.” Like all products you (they) must be marketed for success.
Have each of your students write their own “mission statement” about their career and a “goal
statement” of where they see themselves in 5 years, 10 years, and after 20 years.

2) Core Competencies
Select a local firm or have the students select firms in which they are familiar (current
employers or past employers, for example) and have them answer the questions posed by the
Marketing Memo, Marketing Plan Criteria regarding the evaluation of a marketing plan. Make
sure the students are specific in their answers.
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3) Defining the Corporate Mission
Students should be encouraged to review selected company’s annual reports to collect from
these reports the corporations’ mission statements, strategy statements, and target market
definintions. The collected material can be discussed in class comparing the company’s overall
business, marketing, and customer strategies.

4) Value Creation

Have students read J on R. Katzenbach and Douglas K. Smith, The Wisdom of Teams:
Creating the High-Performance Organization (Boston: Harvard Business School Press,
1993); Hammer and Champy, Reengineering the Corporation and report on their findings
in a written and/or oral presentation.

5) Assessing Growth Opportunities

As a group presentation project, have the students read: Peter Lorange and Johan Roos,
Strategic Alliances: Formation, Implementation and Evolution (Cambridge, MA: Blackwell,
1992); Jordan D. Lewis, Partnerships for Profit: Structuring and Managing Strategic Alliances
(New York: The Free Press, 1990); John R. Harbison and Peter Pekar, Smart Alliances: A
Practical Guide to Repeatable Success, (San Francisco, CA: Jossey-Bass, 1998) and have each
group present their findings.

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Chapter 3

Gathering Information and Forecasting Demand

Key Chapter Concepts:
Components Of A Modern Marketing Information System
Internal Records And Marketing Intelligence
Marketing Intelligence System
Databases, Data Warehouses, And Data-Mining
Sales Information Systems
Analyzing The Macroenvironment
Needs And Trends
Identifying The Major Forces
Demographic Environment
Worldwide Population Growth
Ethnic And Other Markets
Home Delivery

Educational Groups
Household Patterns
Geographical Shifts In Population
Other Major Macroenvironments
Social-Cultural Environment
High Persistence Of Core Cultural Values
Existence Of Subcultures
Natural Environment
Technological Environment

Political-Legal Environment


1) Internal Records and Marketing Intelligence

Using information from the web like FEDSTATS and the U.S. Census Bureau, have the
student’s predict the population of the U.S. for the years 2020, and 2060 and specifically answer
the following questions: a) What is the demographic makeup of the U.S. in these years? b) What
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is the age dispersion in the U.S. in these years and c) Which industries do you see
benefiting/losing within the U.S. because of these population figures.

2) Population Age Mix

Obesity has been officially called an epidemic as cited in the opening vignette of the chapter. In
small groups, have the students collect, from the university or college administrators,
information about the students eating habits (on campus students would be one group;
commuting students another group), exercise, and lifestyle. For example, how many students (as
a percentage of the total student population) regularly take advantage of the available exercise
facilities? How many students presently on campus are clinically obese? This is a very good
project to demonstrate the skill of data mining and the use of secondary data.

3) Social-Cultural Environment

Select or suggest a current “fad” or “trend” exhibited by students on campus. Each student is to
select either a fad or trend and then research this fad and trend in light of the marketing
opportunities present. Would a firm be successful in capitalizing on this “fad”? If so, why?
Should companies capitalize on this “trend”—What are the “upsides” for producing products
that are currently “trendy”? What are the “downsides”? What generation do these fads and
trends appeal to? How large is the potential market for the fad and/or trend? Students should
prepare a report with as much detail into the specific characteristics of these markets as is
available. This is a good secondary data and data mining assignment.

4) Growth of Special-Interest Groups

Each student is a member of an identifiable ethic and demographic segment of society. As an
individual assignment, ask each student to describe their sub-segment in terms of population,
age distribution, growth potential, income, education levels, and other demographic
characteristics. The conclusion of their report should explain the marketing implications of their
findings in terms of potential market, oversaturated market, declining market, or hidden or
ignored market with potential.
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Chapter 4

Conducting Marketing Research

Key Chapter Concepts:

Marketing Research System
Effective Marketing Research Involves Six
Focus Group Research
Survey Research
Behavioral Data
Qualitative Measures
Sampling Plan
Contact Methods
Mail Questionnaire
Measuring Marketing Productivity
Marketing-Mix Modeling
Forecasting And Demand Measurement
A) Potential Market
B) Available Market
C) Target Market
D) Penetrated Market
Market Demand
Market Forecast
Market Potential
Company Demand

Company Sales Forecast
Estimating Current Demand
Company Sales Potential
Total Market Potential
Area Market Potential
Market-Buildup Method
Multiple-Factor Index Method
Estimating Future Demand
Survey Of Buyers’ Intentions
Composite Of Sales Force Opinions
Past Sales Analysis
Expert Opinion
Market Test Method


1) The Marketing Research Process

The story of Tata Ace Motors, an Indian company shows the power of conducting marketing
research before producing the product. In small groups for an in-class discussion, have the
students comment on the case in light of the marketing research process examined in the

2) Survey Research

Have students read these sources on the concept of “neuromarketing” and comment on whether
such brain research is ethical or not ethical because such research may lead to more marketing
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3) Experimental Research

Sources: Daryl Travis, “Tap Buyers’ Emotions for Marketing Success,” Marketing News,
February 1, 2006, pp. 21-22. Deborah L. Vence, “Pick Someone’s Brain,” Marketing News,
May 1, 2006, p. (missing page number) Louise Witt, “Inside Intent,” American Demographics
(March 2004): 34–39; Melanie Wells, “In Search of the Buy Button,” Forbes, September 1,
2003. See also Carolyn Yoon, Angela H. Gutchess, Fred Feinberg, and Thad A. Polk, “A
Functional Magnetic Resonance Imaging Study of Neural Dissociations between Brand and
Person Judgments,” Journal of Consumer Research, 33 (June 2006), pp. 31-40; Samuel M.
McClure, Jian Li, Damon Tomlin, Kim S. Cypert, Latané M. Montague, and P. Read Montague,
“Neural Correlates of Behavioral Preference for Culturally Familiar Drinks,” Neuron, 44
(October 14, 2004), pp. 379-387.

4) Questionnaires

In the Marketing Memo, Questionnaire Dos and Don’ts, the author lists 12 ways to phrase
questions that will maximize unbiased responses. Prepare a set of questions (10–12 questions)
for a hypothetical consumer products company trying to break into the toy business. Make sure
that your questions meet each one of these 12 criteria. Comment on how easy or hard such
question formatting is to accomplish.

5) Research Instruments

Ask students to contact a local marketing research firm in the area for the purpose of an
interview regarding research techniques, methods, and the difficulties in conducting research.
Pre-approve the set of questions prepared by the students prior to the appointment. Ensure that
the students will be able to collect information from the research company regarding how
information is collected. Once it is collected, what are some of the difficulties faced by the
researcher in presenting this information to the client?

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Chapter 5

Creating Customer Long-Term Loyalty Relationships

Key Chapter Concepts:
Building Customer Value, Satisfaction, And
Customer Perceived Value
Determinants Of Customer-Delivered Value
Applying Value Concepts
Delivering High Customer Value
Total Customer Satisfaction
Monitoring Satisfaction
Measurement Techniques
Customer Complaints
Product And Service Quality
Impact Of Quality
Total Quality
Maximizing Customer Lifetime Value
Customer Profitability
Customer Profitability Analysis
Measuring Customer Lifetime Value
Cultivating Customer Relationships
Customer Relationship Management (CRM)
One-To-One Marketing
Increasing Value Of The Customer Base
Attracting, Retaining, And Growing

Reducing Defection:
Retention Dynamics
Interacting With Customers
Building Loyalty
Customer Databases And Database Marketing
Customer Databases
Data Warehouses And Datamining
The Downside Of Database Marketing And


1) Customer Perceived Value

Key manufacturers and others must be concerned with how customers view products
(customer satisfaction perceptions) being disseminated throughout the “electronic world” via
the Internet. No longer can one discount the “power of the mouse” for affecting potential
customers. In small groups, students are to select a particular firm or product and are to
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research what is being said on the Internet regarding this company/product. What
affects/effects does this type of dissemination of consumer opinions via the Internet have on
the company’s marketing strategies? What can the company do to stem the tide of such
comments? How does a company defend itself against blatantly untrue consumer opinions?

2) Total Customer Satisfaction

Have each of the students read Michael Tsiros, Vikas Mittal, William T. Ross J r., “The
Role of Attributions in Customer Satisfaction: A Reexamination,” Journal of Consumer
Research, 31 (September), 2004, pp. 476-483 and comment on their findings.

3) Customer Expectations

Customer relations management is a current business “buzz word.” Students can be directed to
do an Internet research project from named marketing/business journals on the subject of
customer relations management (the chapter’s endnotes can provide a good source of leads for
the students). Each student can be directed to research, read, and compile a report on their
findings from a minimum of five articles from five different marketing (and business
magazines such as Fortune). The student’s report is to comment on how these articles
compare, complement, or contrast the material contained in this chapter.

4) Competitive Advantage

The research firm J.D. Powers and Associates ( lists eight categories of products
for consumers to research before purchasing the product or service. Breaking up the class into
eight groups, have the students research the top performers for each category and be able to
share their findings as to what characteristics, policies, procedures, and vision these top rated
companies have in common. Is there a “common” link among all of the winners? Are there
differences? In terms of the material contained in this chapter, how would you explain these
similarities and differences?
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Chapter 6

Analyzing Consumer Markets

Key Chapter Concepts:

What Influences Consumer Behavior?
Marketing To Cultural Market Segments
Personality And Self-Concept
Lifestyles And Value
Key Psychological Processes
Herzberg’s Theory
Maslow’s Theory
Selective Attention
Selective Distortion
Selective Retention
Subliminal Perception
Memory Processes:
Memory Processes: Retrieval
The Buying Decision Process: The Five-Stage
Problem Recognition
Information Search
Information Sources
Search Dynamics
Evaluation Of Alternatives
Beliefs And Attitudes
Expectancy-Value Model
Purchase Decisions
Non-Compensatory Models Of Consumer
Intervening Factors
Post-Purchase Behavior
Post-Purchase Satisfaction
Post-Purchase Use And Disposal
Post-Purchase Actions
Other Theories Of Consumer Decision-
Level Of Consumer Involvement
Elaboration Likelihood Model
Low Involvement Marketing Strategies
Mental Accounting
Variety-Seeking Buying Behavior
Decision Heuristics And Biases
Profiling The Customer Buying Decision


1) Cultural Factors

The Marketing Insight entitled, Marketing to Cultural Market Segments includes examples of
how companies are capitalizing on these markets. Students should be assigned to survey their
local business environment (city, town, campus area) and collect examples of how local area
businesses are trying to capture these cultural market segments. For example, the students
should collect information regarding the number of cultural restaurants in the area and then
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compare these numbers to the total amount of eating establishments and the percentage of the
population that is of that ethnicity. How do the numbers compare, contrast, and what
marketing strategies do they hint at?

2) Problem Recognition

Figure 6.1 defines the model of consumer behavior. In an examination of each of these
segments, ask the students to rank the importance of each of these characteristics in their
purchase behavior. For example, under the box entitled, Marketing Stimuli, some students will
rank price ahead of products and services as their primary stimulus.

3) Lifestyles and Value

Consumers often choose and use brands that have a brand personality consistent with their
own actual self-concept, ideal self-concept, or others self-concept. Have the students review
their recent purchases of a car, computer, furniture, or clothing and ask them to comment on,
why they purchased this product, who influenced their purchases, and what does this purchase
say about their own self-concept ideas. What is their definition of the “brand personality” of
this recent purchase—as compared to the definitions stated in the chapter by Stanford’s
Jennifer Aaker?

4) Roles and Statuses

We all belong to some sort of reference group. Students that are members of fraternities,
sororities, and clubs are influenced by their members and through their participation. Students
should investigate (within their own reference group) who the opinion leaders are, how these
opinion leaders affect the overall dynamics of the group, and most importantly, how these
opinion leaders affect consumption decisions. Answers should be specific in their definitions
of how these opinion leaders influence specific consumption/purchase decisions and students
should share their observations with the class.
Individually, ask each student to select a print advertisement and identify its behavioral,
cognitive, and affective parts and have them discuss how they feel reading the advertisement.

5) Selective Attention

It had been estimated that the average person may be exposed to over 1,500 ads or brand
communications per day. In a group setting, ask the students to keep diaries of all of the ads,
commercials, billboards, pop-ups, and “spam” messages they receive in one week. After the
collection process has been completed, ask the students to go back over their notes, and reflect
upon which messages they remember, which ones they acted upon (purchased something),
and which ones had no effect on them and why. Each group should share these experiences in
a classroom setting.
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Chapter 7

Analyzing Business Markets

Key Chapter Concepts:

What Is Organizational Buying?
Buying Situations
Systems Buying And Selling
Participants In The Business Buying Process
The Buying Center
There Are Seven Roles In The Purchase
Decision Process:
Buying Center Influences
Buying Center Targeting
The Purchasing/Procurement Process
Stages In The Buying Process
Problem Recognition
General Need Description And Product
Risks and Opportunism
Supplier Search
Lead Generation
Supplier Selection
Proposal Solicitation
The Number Of Suppliers
Order-Routine Specifications
Performance Review
Managing Business-To-Business Customer
The Benefits Of Vertical Coordination
Institutional And Government Markets


1) The Buying Center

In the journal Marketplace, Winter 2006, the Institute for the Study of Business Markets listed
the Top Business Marketing Challenges for the years 2005-2007 (Table 7.1). In small groups
or individually, ask the students to interview local business managers/owners to see: a) These
challenges have migrated to this year b) How well they faired against these challenges or c)
There are more challenges ahead for business in the years to come.

2) The Purchasing/Procurement Process

In small groups (five students suggested as the maximum), have the students visit your college
or university’s Central Purchasing or Procurement department (you may have to clear this
with your administration before assigning). Have the students conduct interviews with
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purchasing personnel on how they buy, who is involved in a purchase decision, and what
characteristics do the best salespeople who call on them share. Students should format their
questions to the key concepts contained in this chapter. Student reports should also
characterize the differences found between government or institutional buying, business-to-
business buying, and consumer purchasing.

3) Types of Purchasing Processes

Have each of the students read Bob Donath’s “Emotions Play Key Role in Biz Brand
Appeal,” Marketing News, June 1, 2006, p.7 and comment on their perception of how
effective “biz” is in their lives and in their purchasing of products.

Contact your local Prentice-Hall sales representative and ask him / her to make a presentation
to the class on how he / she sells to your college or university.

4) E-Procurement

To improve effectiveness and efficiency, business suppliers and customers are exploring
different ways to manage their relationships. Have the students visit each of the company’s
Web sites mentioned throughout the chapter. Which one(s) do the students feel most
effectively and efficiently addresses the needs of the corporate buyer? Which Web sites do
not? Why and what in their opinion is missing from the least effective Web sites? How can the
firm do better in its execution?

5) Buying Center Targeting

Have the students visit GE‘s Medical Systems®Web site ( In
context to the major points of this chapter, have the students define how GE is addressing the
needs of their hospital customers by the design of this Web site? Where and what is GE doing
right, what is GE doing wrong, and where can GE improve?

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Chapter 8

Identifying Market Segments and Targets

Key Chapter Concepts:

Levels Of Market Segmentation
Segment Marketing
Niche Marketing
Local Marketing
Bases For Segmenting Consumer Markets
Geographic Segmentation
Demographic Segmentation
Age And Life-Cycle Stage
Life Stage
Social Class
Psychographic Segmentation
Behavioral Segmentation
The Conversion Model
Basis For Segmenting Business Markets
Evaluating And Selecting The Market
Effective Segmentation Criteria
Single-Segment Concentration
Selective Specialization
Product Specialization
Market Specialization
Full Market Coverage
Differentiated Marketing Costs
A) Segment-By-Segment Invasion Plans


1) Segment Marketing

The upcoming demographic changes for the U.S. population calls for Hispanic to be the
largest demographic segment in the U.S. by 2050. Assuming that this is true, either in small
groups or individually, ask the students to comment on how will this demographic shift
change the segmentation in: a) the grocery industry, b) the fast-food industry, and c) the casual
dining industry. Student answers should include key demographic and lifestyle facts and
figures about these markets and their consumers.

2) Life Stage

The Marketing Insight, Marketing to Generation Y, is a compilation of thoughts and notes
from a number of sources. Ask the students to read each of these sources and be prepared to
share their thoughts as well as comments about what they have read in class. Specifically, are
these authors “on-target” when it comes to characterizing their generation? Are these insights
an oversimplification of the buying habits of their generation? Are there any “missing
insights” from these readings that will have a profound impact on future marketing strategies?
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3) Psychographic Segmentation

Effective segmentation criteria are necessary for target market identification. Market segments
must be measurable, substantial, accessible, differentiable, and actionable. However, not all
segmentation schemes are useful—the text uses table salt buyers for example. Students are to
provide three examples of those products or services in which segmentation criteria are not
necessary and three examples of where segmentation criteria are an absolute necessity.
Students are to exchange their findings and explain these differences. Additional discussion
(or assignment) could be to have the students devise a segmentation strategy for the products
or services that they found not currently, where segmentation criteria are necessary. In other
words, to “create” a segmentation distinction for—“table salt!”

4) Age and Life Cycle Stage

Students should select a product or service that they are familiar with, such as jeans,
computers, or personal CD players. Once these items are selected, the students must undertake
research into the specific items: target market and market segmentation. Student reports
should contain information like: How large is the target market, what is the future growth
potential of this target market, how do/does the marketer reach this target market and so on?
The second section of this project is for the students to “re-position” this product to another
market segment. For example, if the students select personal CD players as their product of
choice, and confirm that the target market for this is Gen Y, then the students should define
how the manufacturers of personal CD players will attempt to re-position the product to attract
the baby boomer generation to increase their purchases of personal CD players.

5) Local Marketing

The firm Claritas, Inc. has developed a geoclustering system called PRIZM. Assign students
the task of visiting this site and collecting the marketing information available for their
particular zip code (home or school). In a report, ask the students to comment on the accuracy,
implications of, and usefulness, of this information for marketers. How can a marketer
“target” his/her audience using PRIZM?

6) Niche Marketing

Figure 8.4 outlines the major VALS®segmentation ( Students are asked to
characterize either themselves, family members, or others and place them in one of these
groups. How closely does the person the student selected, “fit” the profile? If so, can the
marketer rely on these characterizations in mapping out marketing plans? Are there major
differences? If major differences exist, what impact does this have on marketers’ developing
marketing plans?
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Chapter 9

Creating Brand Equity

Key Chapter Concepts:

What Is Brand Equity
The Role Of Brands
The Scope Of Branding
Defining Brand Equity
Brand Equity As A Bridge
Brand Equity Models
A) Brand Asset Valuator
B) Brand Resonance
Building Brand Equity
Choosing Brand Elements
Brand Element Choice Criteria
Developing Brand Elements
Marketing Activities
Designing Holistic
Leveraging Secondary Associations

Measuring Brand Equity
Brand Valuation
Managing Brand Equity
Brand Reinforcement
Brand Revitalization
Devising A Branding Strategy
Branding Decision:
Brand Extensions
Disadvantage Of Brand Extensions
Positive Feedback Effects
Success Characteristics
Brand Portfolios
Customer Equity
Cash Cows
Low-End Entry-Level
High-End Prestige


1) The Scope of Branding

In small groups (five students suggested as the maximum), have the class list their favorite
branded product or service (Google, Nike, or others). Based upon the information contained in
this chapter, the students are to collect information, via on-campus research, on the brand’s
brand equity based upon the Brand Asset Valuator, developed by Young and Rubicam.
Individually, Small Group Assignment

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2) Defining Brand Equity

In small groups, have the students visit Brandchannel ( and a) choose
a brand listed and summarize the views regarding the brand as expressed by or b) choose the “papers” icon and read and summarize one of the papers

3) Brand Equity as a Bridge

Figure 9.3 illustrates secondary sources of brand knowledge. Selecting the brand of their
choice, students should attempt to illustrate the secondary sources of their brand knowledge by
using Figure 9.3 as a guide. Specifically, students should delineate all of these elements and
show how these secondary sources affect/effect/impact their brand perceptions.

4) Building Brand Equity

Either in small groups or individually, ask the students to conduct a small research project
with students on campus regarding the student’s brand knowledge of a particular brand (again,
the students can select their “brand” for this exercise). In their research, the students are to
delineate the brands: unique brand association, the thoughts, feelings, images, experiences,
and beliefs elicited by the brand. This exercise builds on the concepts of marketing research
covered in Chapter 4 of this text. Important information for the students to postulate is why in
their research, some of the respondents held such beliefs about the brand and why others did

5) Leverage Secondary Associations

In Seth Godin’s book, Permission Marketing: Turning Strangers into Friends, and Friends
into Customers, New York: Simon & Schuster, 1999, he lists five steps in developing
effective permission marketing. After reading Mr. Godin’s book comment on whether or not
you believe that “permission marketing” will work for all products and services in the future.
Specifically, explore whether or not the proliferation of “permission marketing” will wear out
its effectiveness, similar to the experiences of spam, “pop-ups,” and other forms of customer
specific marketing techniques.

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Chapter 10

Crafting the Brand Position

Key Chapter Concepts:

Developing And Communicating A
Positioning Strategy
STP—Segmentation, Targeting, And
Competitive Frame Of Reference
Points-Of-Parity And Points-Of-Difference
Points-Of-Parity Versus Points-Of-Difference
Straddle Positioning
Communicating Category Membership
Choosing Pops And Pods
Creating Pops And Pods
Differentiation Strategies
a. Personnel Differentiation
b. Channel Differentiation
c. Image Differentiation
Product Life-Cycle Marketing Strategies
Product Life Cycles
Style, Fashion, And Fad Life Cycles
Marketing Strategies: Introduction Stage And
Pioneer Advantage
Marketing Strategies: Growth Stage
Marketing Strategies: Maturity Stage
Market Modification
Product Modification
Marketing Program Modification
Marketing Strategies: Decline Stage
Evidence On The Product Life-Cycle Concept
Critique Of The Product Life-Cycle Concept
Market Evolution


1) Competitive Frame of Reference

Most campus communities have their own radio and/or television broadcasting stations. If one
is present on your campus, students are to define the college or university’s station(s) in terms
of positioning and differentiation strategy. What stage in the product’s life cycle are the
station(s)? What can be done to reposition the station(s) to attract more viewership? What is
the competitive advantage present in their operations?

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2) Positioning Strategy: Points-of-Parity and Points-of-Difference

Points-of-differences and points-of-parity are two important concepts of brand development
and are driven by two differing strategies—inclusion and differentiation. Students should
devise a list of at least five other products/services that they believe demonstrate points-of-
differences and points-of-parity in their brand positioning. Student must include their
reasoning behind the inclusion of these products/services into a category. Good students will
present “proof” of their correct selection by including advertising copy supporting the product
or services POD or POP.

3) Points-of-Difference

Determining the proper competitive frame of reference requires understanding consumer
behavior and the consideration sets consumers use in making brand choices. For a set of three
products or services (selected by the students) students should research these companies and
provide the companies (and its products) value proposition in a matrix similar to Table 10.1.

4) Creating POPS and PODS

Consultants Michael Treacy and Fred Wiersema, in their book, The Disciplines of Market
Leaders (Reading, MA: Addison-Wesley, 1994) proposed a positioning framework called
value disciplines. Within its industry, a firm could aspire to be the product leader,
operationally excellent firm, or customer intimate firm. Choosing an industry, each student is
to identify one or more firms operating within that industry that fits each of these three value
disciplines. Students should define their reasoning for selecting each firm and in its placement
as either the product leader, operationally excellent, or customer intimate.

5) Product Life Cycle

Styles, fashions, and fads fall into special categories when talking about product life cycles.
Some may have a product life cycle measured in weeks, others in months, and yet others in
years. Ask the students to list the current fads, fashions, and styles prevalent around campus
today. Do any of these fashions, styles, or fads meet or satisfy a strong need? If so, can they
predict the length of the life cycle of the ones that satisfy a strong need? Which of the
fashions, styles, or fads do the students predict will have longevity? Why or why not?

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Chapter 11

Competitive Dynamics

Key Chapter Concepts:

Competitive Forces
Identifying Competitors
Analyzing Competitors
Competitive Strategies For Market Leaders
Expanding The Total Market
New Customers
More Usage
Defending Market Share
Expanding Market Share
Other Competitive Strategies
Market-Challenger Strategies
Choosing A Specific Attack Strategy
Market-Follower Strategies
Market-Niche Strategies
Balancing Customer And Competitor
Competitor-Centered Companies
Customer-Centered Companies


1) Identifying Competitors

For a market leader, increased sales must come from expanding the total market through
adding new customers or increasing the usage of the product. Picking a market leader in an
industry (Dell computers for example) explain how your market leader can expand the total
market by adding new customers or increasing the usage of the product. Be as specific as

2) Number of Sellers and Degree of Differentiation

Identify the major competitors in the blue jeans market. Who has the leading market share,
whose shares have declined? What segmentation is (has) occurring/occurred in the blue jeans
market and why? Did demographic changes affect the market (from baby boomers to Gen X
or Gen Y)? What competitive signs, symbols, events, or occurrences did Levi-Strauss miss?
What current shifts in competition and channel power is occurring and what can Levi-Strauss
do to minimize the impact from these changes?
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3) Entry, Mobility, and Exit Barriers

Have the students read: Tarum Khanna and Krishna G. Palepu, “Emerging Giants.” Harvard
Business Review, October 2006, Vol. 84, Issue 10. pp. 60-69 and comment on the emerging
competition from the “Third World” such as India and China on companies in the United
States. Specifically, ask the students to comment on whether or not they believe that this 1)
competition will increase in the future and 2) how a U.S. company should respond to this

Using Figure 11.2 as a starting point, assign the students the job of trying to figure out a “blue-
ocean” strategy for industries facing declining usage such as your local daily newspaper. How
can this venerable institution survive into the future filled with computers and instant access to
global information?

4) Degree of Vertical Integration

Michael Porter’s Five Forces model is as applicable today as it was when it was introduced.
Have the students select a market or market segment (jeans, cell phones, etc.) and using
Michael Porter’s model, completely define these five forces for the market or market segment.
Who are the potential entrants, who are the suppliers (and how much power do they have),
who are the buyers (and what sort of buying power do they have), what are the substitutes and
how is the industry segmented (market share is a good indicator of segmentation for this
project)? Student’s analysis and answers should be comprehensive.

5) Market Concept of Competition

In challenging a market leader, the challenger has a number of differing strategies to employ.
Choosing the right one (or wrong one) could result in a larger market share and increased
profits (or disaster) for the challenger. In choosing a specific attack strategy, the challenger
must go beyond and develop specific strategies of price, lower price goods, value priced goods
and services, and so on. Students should explore these strategies and come prepared to identify
one company (or brand) that has chosen each of these strategies to implement and to defend
their selection(s).

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Chapter 12

Setting Product Strategy

Key Chapter Concepts:

Consumer-Goods Classification
Industrial-Goods Classification
Product Differentiation
Product And Brand Relationships
The Product Hierarchy
Product Systems And Mixes
Product-Line Analysis
Sales And Profits
Market Profile
Product-Line Length
Line Stretching
Up-Market Stretch
Two-Way Stretch
Line Filling
Line Modernization, Featuring, and Pruning
Product-Mix Pricing
Co-Branding And Ingredient Branding
Ingredient Branding
Packaging, Labeling, Warranties, and


1) Product Levels: The Customer Value Hierarchy

In planning its market offering, the marketer needs to address five product levels: core benefit,
basic product, expected product, augmented product, and potential product. Students should
select a firm within an industry and through research (Internet and other formats) outline the
firm’s five product levels for its products. In their research, students should be challenged to
discover the firm’s perception of the customer’s value hierarchy and total consumption

2) Product Differentiation

Product differentiation is essential to the branding process. In choosing to differentiate a
product, a marketer has the choice of form, features, performance quality, conformance
quality, durability, reliability, repairability, and style. Collect examples of currently produced
products that have been differentiated and branded for each of these design parameters.

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3) Durability and Tangibility

Convenience items and capital good items can be seen as two ends of the “product
continuum.” Convenience items are purchased frequently, immediately, and with minimum
effort. Capital goods are those items that last a long period of time and are purchased
infrequently by consumers. Students should select a convenience good and a capital good of
their choice and compare and contrast the consumers value hierarchy and users total
consumption system for each item using the concepts presented in this chapter.

4) Consumer Goods Classification

Assign the following readings to students: Robert Bordley, “Determining the Appropriate
Depth and Breadth of a Firm’s Product Portfolio,” Journal of Marketing Research, 40
(February), 2003, pp. 39-53 or Peter Boatwright and Joseph C. Nunes, “Reducing Assortment:
An Attribute-Based Approach,” Journal of Marketing, 65 (July), 2001, pp. 50-63. After
reading each article, students should submit a paper summarizing their findings and
illustrating the concepts exposed in these papers to the material covered in this chapter.

5) Design: The Integrative Force

When the physical product cannot easily be differentiated, the key to competitive success may
lie in adding valued services and improving their quality. Examples of adding value in the
service component of a product include computers, education, and pizzas. Each student is to
select a product in which they think that the additional value present lies in the service and
quality components. Students should be prepared to defend their selections using the material
presented in this chapter.

6) Product Differentiation

In the Marketing Memo entitled, Making Ingredient Branding Work, the authors list four
requirements for success in ingredient branding. As a group, students should collect examples
of ingredient branding currently present in the marketplace (supermarkets, hotels/motels,
automobile companies, and causal dining establishments are good places to start) and examine
these examples versus the four requirements stated in the memo. Students should be able to
defend their positions in comparing these products to the statements in the Marketing Memo.

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Chapter 13

Designing and Managing Services

Key Chapter Concepts:

Service Businesses Increasingly Fuel The
World Economy
The Nature Of Services
Categories Of Service Mix
Services Have Four Distinctive Characteristics
That Greatly Affect The Design Of Marketing
Distinctive Characteristics Of Services
Marketing Strategies For Service Firms
Shifting Customer Relationship
Profit Tiers
Customer Empowerment
Holistic Marketing For Services
Managing Service Quality
Customer Expectations
Best Practices Of Service Quality Management
Strategic Concept
Top-Management Commitment
High Standards
Self-Service Technologies (Ssts)
Satisfying Customer Complaints
Every Complaint Is A Gift If Handled
Satisfying Employees As Well As Customers
Managing Service Brands
Differentiating Services
Developing Brand Strategies For Services
Choosing Brand Elements
Establishing Image Dimensions
Devising Branding Strategy
Managing Product Support Services
Identifying And Satisfying Customer Needs
Postsale Service Strategy
Customer Service Evolution
The Customer Service Imperative


1) Services are Everywhere

Using the information on marketing research covered in this text, ask the students to prepare a
teaching SERQUAL®form to be administered in all the classes taught in your department.
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This SERQUAL survey should focus on evaluating the student’s understanding of their role in
the service delivery process of teaching. If your college or university has a standardized form
for evaluating students’ perceptions of learning, ask the students to compare and contrast these
two measures. Where is there a difference and where are they similar?

2) Categories of Service Mix

As the opening vignette indicated, The Mayo Clinic has been built as one of the most
powerful services brands on its firmly held belief and focus on the experience of the patient.
As one staff member explained, “People don’t come to the hospital alone.” In small groups
students should review their local hospitals (especially the one on campus) to see if their local
hospital adheres to the tenants’ of a good service provider. A starting point is an examination
of the hospital’s mission statement, beliefs, and patient right policies (if available).

3) Marketing Strategies for Service Firms

In the Marketing Memo entitled, “Recommendations for Improving Service Quality,” the
authors Berry, Parasuraman, and Zeithaml, offer 10 lessons that they maintain are essential for
improving service quality across service industries. Individually or in small groups, have the
students analyze their department, college, or university against these 10 criteria and list their
recommendations for improving …

4) Managing Service Quality

In the Marketing Memo entitled, “Assessing E-Service Quality,” the authors identify a 14-
item scale that forms the basic building blocks of a “compelling online experience.” Students
should be directed to find Web sites (one or more) that meet all or a majority of these 14 items
and those that do not meet a majority of the items mentioned. In preparing their papers,
students should include rationale for their characterizations of these Web sites.

5) Customer Expectations

We all have “service failure” stories to tell. As a matter of fact, most people love to tell about
the time that such and such firm provided sub-par service to us as consumers. Sometimes
these stories are humorous and other times they are sad. Ask the students to think about such
stories and prepare to tell these stories in class. These stories can be either their own stories or
that of a close friend or family member. In preparing to recount the story line, students should
first analyze the incident in terms of the concepts and tenants presented in this chapter. For
example, the restaurant that did not address a customer’s “cold food” is a service failure.
However, was that service failure due to insufficient training, inadequate hiring practices, or
an inability of the restaurant to monitor customer expectations? Students should come to class
prepared to identify (as close as possible) the causes of the service failure.
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Chapter 14

Developing Pricing Strategies and Programs

Key Chapter Concepts:

Understanding Pricing
A Changing Pricing Environment
How Companies Price
Consumer Psychology And Pricing
Reference Prices
Price Cues
Setting The Price
Step 1: Selecting The Pricing Objective
Maximum Current Profit
Maximum Market Share
Maximum Market Skimming
Product-Quality Leadership
Step 2: Determining Demand
Price Sensitivity
Estimating Demand Curves
Price Elasticity Of Demand
Step 3: Estimating Costs
Types Of Costs And Levels Of Production
Fixed And Variable.
Accumulated Production
Target Costing
Step 4: Analyzing Competitors’ Costs, Prices,
and Offers
Step 5: Selecting A Pricing Method
Markup Pricing
Target-Return Pricing
Perceived Value Pricing
Value Pricing
Going-Rate Pricing
Auction-Type Pricing
Step 6: Selecting The Final Price
Impact Of Other Marketing Activities
Company Pricing Policies
Gain-And-Risk Sharing Pricing
Impact Of Price On Other Parties
Adapting The Price
Geographical Pricing (Cash, Countertrade,
Price Discounts And Allowances
Promotional Pricing
Differentiated Pricing
Initiating And Responding To Price
Initiating Price Cuts
Initiating Price Increases
Reactions To Competitor’s Price Changes

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1) How Companies Price

Paul W. Farris and David J. Reibstein, in their article, “How Prices, Expenditures, and Profits
Are Linked,” Harvard Business Review (November-December 1979); pp. 173–184, found a
relationship between relative price, relative quality, and relative advertising (their findings are
summarized in the chapter). Students should read the full report, and then be prepared to
discuss the validity of this study in light of the consumer information explosion that has
occurred due to the emergence of the Internet. Are these relationships still valid today? If not,
why or what has caused them to change?

2) Reference Prices

Consumer perceptions of prices are also affected by alternative pricing strategies. Marriott
Hotels, for example, has different brands for differing price points. Building upon the Marriott
example, students are to scan the environment to find examples of a company whose pricing
strategy is closely tied to its branding strategy. Caution: students may want to list just the
different price points in the same company such as Ford automobiles. What this project is
designed to accomplish, is that students should note that the Lincoln line of cars are priced at a
premium to the Ford and Mercury divisions. Good students will also have researched the
actual percentage difference between the three divisions.

3) Price Cues

Many consumers use price as an indicator or quality. As a group assignment, students should
choose a product produced by a firm. Subsequently, the students should conduct a small
research project (utilizing the material learned from Chapter 4) and either, confirm or deny this
relationship for the chosen product. For example, do more women or men rely on price as an
indicator of quality for product X? If there is a difference, what is the quantifiable difference in
terms of marketing research data? Does this difference suggest that marketer’s must or can
revise/revamp price clues to reach their target market?

4) Price Sensitivity

Choosing a product that is available online and in stores (books or tires, for example), ask the
students to research the various pricings choices available online. After collecting this data,
ask the students to comment on whether or not the variety of price points found lowers their
price sensitivity?

5) Promotional Pricing

Katherine Heires in Business Week 2.0 October 2006 wrote “Why it Pays to Give Away the
Store.” Either in small groups or individually, have the students read Ms. Heires’ article and
comment on the validity/invalidity of these nine suggestions as being applicable to key service
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Chapter 15

Designing and Managing Integrated Marketing

Key Chapter Concepts:

Marketing Channels And Value Networks
The Importance Of Channels
Push Strategy
Pull Strategy
Channel Development
Understanding Customer Needs
Different Consumers Have Different Needs
During The Purchase Process
Value Networks
Demand Chain Planning
Supply Chain View
Value Network—A System Of Partnerships
And Alliances That A Firm Creates To Source,
Augment, And Deliver Its Offerings
The Role Of Marketing Channels
Channel Functions And Flows
1) A Sales Channel
2) A Delivery Channel
3) A Service Channel
Key Functions
Channel Levels
Service Sector Channels
Channel-Design Decisions
Analyzing Customers’ Desired Service Output
Establishing Objectives And Constraints

Channel Objectives Should Be Stated In

Terms Of Targeted Service Output Levels

Identifying Major Channel Alternatives
Types Of Intermediaries
Number Of Intermediaries
Terms And Responsibilities Of Channel
Conditions Of Sale
1) Distributors’ Territorial Rights
2) Mutual Services And
Evaluating The Major Alternatives

Each Channel Alternative Needs To Be
Evaluated Against Economic, Control, And
Adaptive Criteria
Control And Adaptive Criteria

To Develop A Channel, Members Must Make
Some Degree Of Commitment To Each Other
For A Specified Period Of Time
Channel-Management Decisions
Selecting Channel Members
Training Channel Members
Motivating Channel Members
Evaluating Channel Members
Modifying Channel Arrangements
Channel Integration And System
Vertical Marketing Systems
The New Competition In Retailing
Horizontal Marketing Systems
Integrating Multi-Channel Marketing Systems
Planning Channel Architecture
Conflict, Cooperation, And Competition
Vertical Channel Conflict
Horizontal Channel Conflict

E-Business Describes The Use Of Electronic
Means And Platforms To Conduct A
Company’s Business

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1) The Role of Marketing Channels

Top marketing companies are employing both a “push” and a “pull” strategy to deliver
incremental sales. Take the example of the company called Sepracor, Inc. as defined in the
chapter. Its product Lunestra has increased the company’s stock price to soar. Using this
product as an example, have the students’ track the number of pharmaceutical products
advertised on television and b) comment on whether or not this increased advertising is
increasing the demand by increasing the “awareness of” certain medical conditions.

2) Channel Functions and Flows

Ask the students to comment on the hybrid channel of distribution. The hybrid channel as
defined in the chapter poses an interesting channel for future marketers. As students grow into
consumers will they or won’t they rely on purchasing products exclusively through the
Internet? Or will they demand hybrid distribution choices like free shipment to store sites (like
Wal-Mart) or pick up at the store like Circuit City?

3) Service Sector Channels

In the Marketing Insight article entitled, “Transforming Your Go-to-Market Strategy: The
Three Disciplines of Channel Management,” V. Kasturi Rangan Boston, MA: Harvard
Business School Press, 2006 identifies new opportunities for marketing products through
multiple channels by crafting a “channel steward.” Ask the students to read this article
and comment on its practicality in light of the changes posed by Internet shopping.

4) Analyzing Customers’ Desired Service Output Levels

Channel members add value to the consumer’s purchase of certain products and services.
Table 15.1 details key channel member functions. Yet some firms have abandoned channel
partners and tried to reach the consumer on a one-to-one basis. Selecting a product or firm
that (a) is maintaining its channel members, and (b) that has decided to sell directly to the
consumer thus bypassing channel intermediaries. Comment on these two systems in terms of
the information contained in the chapter.

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Chapter 16

Managing Retailing, Wholesaling, and Logistics

Key Chapter Concepts:


Types Of Retailers

The New Retail Environment

Marketing Decisions
Target Market
Product Assortment
Store Activities And Experiences
Communication Decisions

Private Labels
The Private Label Threat
Role Of Private Labels
Market Logistics
Trends In Wholesaling

Integrated Logistics Systems

Market-Logistics Decisions
Organizational Lessons


1) Types of Retailers

Shop—have students visit as many differing types of retailers (and non-store retailers) as they
can over the course of a week. For each shopping occasion, ask the students to record their
impressions of the store’s atmospherics, location, service levels, product selections, and
others. Then rank their preferences from best to least and be able to explain why they assigned
the ranking to each store in terms of the material covered in this chapter.

2) New Models of Success

New retail forms and combinations is one of the trends in retailing today. Examples include
supermarkets with banks and bookstores featuring coffee shops. After reading the material in
this chapter, ask the students to “speculate” on potential new retail forms or retail
combinations yet undeveloped. In their selection of a “new” form of retailing or combination
of retailers, ask the students to defend their choices using the ideas and concepts presented in
this chapter.
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3) Product Assortment

Atmospherics is an important component of store attractiveness. Every store has its own
unique look, feel, and smell. Yet each consumer may react differently to each of these
elements. In groups composed of male and female students, ask the students to visit three
retailers of their own choosing and comment on how the store atmospherics affected them
personally and then group the findings by sex. Why are there such differences? What can a
store do to appeal to both sexes?

4) Private Labels

Store brands, or private label brands, account for one of every five items sold in the United
States today. Students should purchase differing store brands/private label items (ice cream is
a favorite choice for this experiment and can be conducted in class), the national branded
product, and do a taste test comparing the store brands and the national brand. Does the store
or private label item meet or exceed the taste and quality of the national brand? What are the
implications for national branded products if store/private label items meet or exceed the
national brand? What should or could marketers’ do to differentiate these products?

5) Market-Logistic Decisions

Recently, Dell Computers, a company that wrote the book about managing logistics and
selling to the consumer, announced that it will begin selling its products in Best Buy stores
and through retailers in China. Question: Is this a fundamental change in Dell’s distribution
strategy based on the PLC of personal computers? Or is it a short-term tactical switch to boost

Students should include in their answers comments on product positioning, and comment on
the stage(s) they think the personal computer now occupies.

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Chapter 17

Designing and Managing Integrated Marketing Communications

Key Chapter Concepts:

The Role Of Marketing Communications
The Changing Marketing Communication
Marketing Communications Mix
Marketing Communication Effects
The Communication Process Models
Macro Model Of The Communication Process
Micro Model Of Consumer Responses
Developing Effective Communications
Identifying The Target Audience
Determine The Communication Objectives
Design The Communication
Message Strategy
Creative Strategy
Informational Appeals

Transformational Appeals
Message Source
Global Adaptations
Select The Communication Channels
Personal Communication Channels
Non-Personal Communication Channels
Establish The Total Marketing
Communications Budget
A) The Affordable Method, Percentage-
Of-Sales Method

B) Competitive-Parity Method

C) And Objective-And-Task Method

Deciding On The Marketing Communications
Sales Promotion
Public Relations And Publicity
Events And Experiences

Direct And Interactive Marketing
Personal Selling
Type Of Product Market
Buyer-Readiness Stage
Product Life-Cycle Stage
Measuring Communication Results
Managing The Integrated Marketing
Communications Process
1) Clarity
2) Consistency
3) Maximum Impact Through The
Seamless Integration Of Messages
Coordinating Media
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1) The Communication Process Models

This chapter states that the marketing communications mix consists of six major modes of
communication and that every brand contact delivers an impression that can strengthen or
weaken a customer’s view of the company. In small groups, have the students select a
company and see if its messages are consistent across all major modes of media: advertising,
sales promotion, events and experiences, public relations, direct marketing, and personal

2) Creative Strategy

The opening vignette of this chapter is about Dove’s advertising campaign featuring “normal”
women. Either individually or in groups, have the students go to the Web site: and read Randall Rothenberg, “Dove Effort Gives
Packaged-Goods Marketers Lessons for the Future,” Advertising Age, March 5, 2007; Theresa
Howard, “Ad Campaign Tells Women to Celebrate Who They Are,” USA Today, July 8,
2005; Jack Neff, “In Dove Ads, Normal is the New Beautiful,” Advertising Age, September
27, 2004. After reading and visiting the site, have the students share their impressions on the
campaign’s effectiveness with the target market.

3) The Macro Model of the Communication Process

The starting point in planning marketing communications is an audit of all the potential
interactions that customers in the target market may have with the brand and the company.
Students should select a brand and in their papers “map” out or create an audit of all the
potential interactions that customers in the target market have with the brand and company.
Students should, for the purpose of this assignment, assume that they are a member of the
target market.

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Chapter 18
Managing Mass Communications:
Advertising, Sales Promotions, Events and Experiences, and Public Relations

Key Chapter Concepts:
Developing And Managing An Advertising
Setting The Objectives
Deciding On The Advertising Budget

How Does A Company Know If It Is Spending
The Right Amount?
Factors Affecting Budget Decisions
Advertising Elasticity
Creative Development And Execution
Message Execution Can Be Decisive
Deciding On Media And Measuring
Deciding On Reach, Frequency, And Impact
Choosing Among Major Media Types
Alternative Advertising Options
Place Advertising
Product Placement
Evaluating Alternative Media
Selecting Specific Vehicles
Deciding On Media Timing And Allocation
Communication-Effect Research
Sales-Effect Research
Sales Promotion
Advertising Versus Promotion
Selecting Consumer-Promotion Tools
Selecting Trade-Promotion Tools
Selecting Business-And Sales-Force-
Promotion Tools
Pre-testing, Implementing, Controlling, And
Evaluating The Program
Events And Experiences
Major Sponsorship Decisions
Choosing Event Opportunities

Designing Sponsorship Programs
Measuring Sponsorship Activities
Public Relations
Marketing Public Relations
Establishing Objectives

Choosing Message And Vehicles
Implementing The Plan And Evaluating

1) Creative Development and Execution

In small groups, have the students create an advertising campaign for a product/service of their
choosing, including ad copy and creative execution (mock-up print ads, a “homemade”
television commercial for example). This campaign should contain each of the elements of the
chapter material and most importantly, define the 5Ms objectives. Each group should then be
evaluated, by the remainder of their class members, as to the effectiveness of their campaign.

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2) Developing and Managing an Advertising Program

Organizations handle advertising in differing ways. In this assignment, students should contact
different size companies in their community (one large, one medium, and one small company)
and find out who is responsible for working with their ad agencies and how (and where) did
they receive their training in developing advertising messages. Was or did their training
primarily consist of “on-the-job” training? Experience learned from previous positions in
larger firms? Or is their understanding of the operation of advertising more of a “learn as I go”
process? In compiling their data, can the students identify any common elements? Can we
draw any inference from or about advertising from the data?

3) Deciding on Media and Measuring Effectiveness

This assignment should be a favorite one for the students to complete. Breaking the class up
into groups, assign a different television channel (cable and network) to each group. Have the
students’ record all the television commercials shown during prime time for a particular night
(say for a Thursday night). After watching the commercials, students should list their favorite
ones, their not so favorite ones, and the ones that annoyed them the most. Have the students
share their commercials with the other class members and see if the other members share the
same opinion(s). Finally, in light of the advertising objectives presented in this chapter, can the
students “pick out” the message of the ad?

4) Place Ads

It has been suggested that over 70 percent of all buying decisions are made in the store and as
a result, point-of-purchase advertising has grown in its appeal. Students should give three
examples of point-of-purchase advertising that they have recently come across (ads in-store,
personal selling by a cosmetic counter salesperson, etc.) and comment on the effectiveness of
this type of advertising to them. Did they buy the product? Did the advertising annoy them?
Moreover, in the role of a marketing executive, would the student recommend spending part
of their advertising budget on this form of media?

5) Events and Experiences and Sponsorships

Events, experiences, and sponsorship advertising is increasing. The chapter outlines eight
reasons given for sponsoring events. Students should choose an event or sponsorship (recent
activity on campus, attendance by students at an event, etc.) and evaluate how effective they
feel the event is/was towards achieving these eight objectives. Students should also be able to
comment on why they feel that the sponsorship event did not achieve some of these stated

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Chapter 19

Managing Personal Communications:
Direct and Interactive Marketing, Word of Mouth, and Personal Selling

Key Chapter Concepts:

Direct Marketing

The Benefits Of Direct Marketing

Public And Ethical Issues In Direct Marketing

Interactive Marketing
Placing Ads And Promotion Online
Placing Ads and Promotion Online
A) Web sites
B) Microsite
C) Search Ads
D) Interstitials
E) Internet-Specific Ads and Videos
F) Sponsorships
G) Alliances
H) Online Communities
I) E-mail
Mobile marketing

Buzz And Viral Marketing
Designing The Sales Force

Sales-Force Structure

Managing The Sales Force

Principles Of Personal Selling
Relationship Marketing


1) Direct Marketing

Market demassification has resulted in an ever-increasing number of market niches and the
use of direct marketing to reach these niches is growing. In small groups (five students
suggested as the maximum), have students collect as many direct marketing advertising pieces
of information sent to them over the course of a month during the semester. After collecting
the catalogs, credit card offers, e-mail notices, and other forms, students are to evaluate the
effectiveness of these techniques in causing them to purchase. Which one(s) of these direct
market techniques do they feel is the most successful (caused a purchase) or least effective
(caused irritation to them) and, why? What can astute marketers do to increase the
effectiveness of direct marketing?
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2) The Benefits of Direct Marketing

The direct market offering, according to the text, consists of five elements—the product, offer,
medium, distribution method, and creative strategy. Have the students collect direct marketing
offerings (sent to them, their families, and close friends). On a scale of 1-5 (1 being does not
work, 5 being works very well), rank each of these offerings in terms of these five elements.
What is the group’s consensus as to which offers work the best (and worse) and why?

3) Buzz and Viral Marketing

In a research paper, students are to comb appropriate Internet sites, and documents, illustrating
the power of the “buzz” and “viral marketing” about products and/or services. Which ones do
they think are effective and why?

4) Sales Force / SPIN Selling

Students are to assume the role of a salesperson calling on Jones Inc., which is a firm
employing 50 salespeople, but currently does not use any customer relationship software.
Students are to “sell” the “buyer” on the advantages of “NOW!” by demonstrating situation,
problem, implication, and need-payoff questions. Students should reverse roles at appropriate
time intervals so that each student has the opportunity to “play” buyer and seller. Questions for
the class: How effective did you find the SPIN method to be in your “selling situation”? How
difficult is it to frame questions in terms of situation, problem, implication, and need-payoff?
Do you believe that the SPIN method works?

5) Relationship Marketing

Infomercials can be found selling almost everything imaginable! As a group, have the students
videotape three different infomercials and critically evaluate the effectiveness of these
commercials in light of the five elements of the direct market offering. Which one(s) do the
students believe is the most (least) effective and why?

6) Managing the Sales Force

Most managers agree that to increase the motivation of their salespeople they have to reinforce
the intrinsic and extrinsic rewards offered. However, this is not a universally accepted opinion.
Many managers use one type of reward almost exclusively in their motivation techniques.
Students should interview three sales managers and ask them if they emphasize intrinsic or
extrinsic rewards in their salesperson’s motivation? Which method do they personally feel is
the most effective and why? Which method do they wish they did a better job in and why?
From this research, can the students form a causal relationship between the industry,
competitive nature of the industry, and the motivation techniques used?
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Chapter 20

Introducing New Market Offerings

Key Chapter Concepts:

New Product Options
Types Of New Products
Organic Growth
New-To-The-World Products
New Product Lines
Additions To Existing Product Lines
Improvements And Revisions Of Existing
Cost Reductions
Challenges In New Product Development
New Product Failure
New Product Success
Budgeting For New-Product Development

Organizing New-Product Development
New-Product Manager
High-Level Management Committee
New-Product Department
Venture Teams
Managing The Development Process: Ideas
Idea Generation
Marketing Strategy
Business Analysis
Managing The Development Process:
Development To Commercialization
Product Development
Quality Function Deployment (Qfd)
Customer Tests
Beta Testing
Alpha Testing
Market Testing
Interacting With Others
Creativity Techniques
Idea Screening
Managing The Development Process: Concept
To Strategy
Concept Development And Testing
Concept Testing
Conjoint Analysis
Consumer-Goods Market Testing
First Repeat
Purchase Frequency
Simulated Test Marketing
Sales-Wave Research
Controlled Test Marketing
Test Markets
Business-Goods Market Testing
The Consumer-Adoption Process
Stages In The Adoption Process
Factors Influencing The Adoption Process
Characteristics Of The Innovation
Organizations’ Readiness to Adopt
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1) Improvements And Revisions Of Existing Products
Identify three new products (introduced to the consumer and/or business markets within the
last year) and classify them as either: a new-to-the-world product, a new product line, an
addition to the existing product line, an improvement and/or revision of existing product(s), or
a repositioning of an existing item. For each product selected, identify what challenges you
think the developing company faced in marketing this product. What rate of diffusion and
consumer adoption do you foresee for these new products?

2) Idea Generation

Use the class and conduct a brainstorming session using the tips from the Marketing Memo
entitled “How to Run a Successful Brainstorming Session.” Use the students as the “group”
and appoint one as the moderator.

3) Managing The Development Process: Concept To Strategy

Using the suggestions in the Marketing Memo entitled “Eight Ways to Draw New Ideas from
Your Customers,” set up a project in which students (individually or in groups) observe
consumers using products such as automobiles, use of the Internet, use of the “mall,” etc. to
see if they can come up with some ideas from their observations.

4) Consumer-Goods Market Testing

New products fail at a disturbing rate. Recent studies put the rate at 95 percent in the United
States and 90 percent in Europe. In small groups (five students suggested as the maximum),
find three products that have “failed” (been introduced then withdrawn from the market by the
company) and suggest the
cause or causes of these product failures. A listing of some of the reasons why new products
fail can be found in the chapter.

In the opening vignette of the chapter, Johnson & Johnson is noted for being one of the most
innovative U.S. companies. Other innovative companies exist as well. In a small group, find at
least three U.S. companies that have introduced numerous new products into the marketplace
over the last two years. What characteristics do all of these companies share? What has been
their success rate?

Apple’s iPod®and iPhone®has been a successful new product introduction for the company.
It has been suggested that the introduction of iPhone and iPod was targeted at the “innovators”
—technology enthusiasts and “early adopters.” Question: Can the iPhone/iPod continue its
rate of diffusion throughout the adoption curve and reach the early majorities and late
majorities users? Or will it become stuck appealing to just those first two segments? In your
answer, carefully review the sales, pricing, and products recently introduced by competitors to
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Chapter 21

Tapping into Global Markets

Key Chapter Concepts:

Competing on a global basis
Deciding whether to go abroad
Deciding which markets to enter
How many markets to enter
Developed versus developing markets
Evaluating potential markets
Deciding how to enter the market
Indirect and direct export
Using a global web strategy
Joint ventures
Direct investment
Deciding on the marketing program
Product adaptation
Product invention
A) Price escalation
B) Transfer prices
C) Dumping charges
D) Gray markets
Distribution channels
Country-of-origin effects

Building country images
Consumer perceptions of country-of-origin
Deciding on the marketing organization
Export department
International division
Global organization
Waterfall approach Sprinkler approach


1) Competing on an International Basis

The instructor is encouraged to challenge the students by assigning students to find their
favorite product’s corporate offices. Examples may include Nestle, Nike, Suzuki, Nokia, Ben
& Jerry’s and others. Beyond just discovering examples of global or international firms,
students should uncover via financial information, the origin of sales by country. Such an
exercise will provoke interesting classroom discussions as the students begin to realize the
global nature of business in today’s international marketplace.

2) Developed versus developing markets

Have the students look at Table 21.1 which lists the 25 leading global firms based in
developing markets and see how many they recognize and more importantly how many
products have they and their families recently purchased from these companies. Were there
any surprises among the students that these companies were in fact, international? In fact,
based in emerging countries? Share student comments in class.
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3) Product adaption

Table 21.3 shows some famous “blunders” in international marketing. Students should
research these examples (and find others) and provide insight into why they think such
“blunders” were allowed to occur. This can lead to a classroom discussion into the complexity
facing many firms in international and multicultural marketing.

Recently, some marketers are more focused on global “tribes” than on nationalities (WSJ
article, December 10, 2007, “In the Lead,” p. B1. Have the students read this article and
comment on whether or not they believe that the growth and influence of the Internet has
made us all “global tribe members.” Have those students who are of the belief that we are
indeed “one tribe,” comment on what this will mean for product adaption/adoption/advertising
in the future.

4) Deciding how to enter the market

Finding free information about trade and exporting has never been easier. Web sites such as;,,, and,
provide valuable information for marketers. Visit each site and compile a list of information
that you, as a marketer, might find valuable in deciding how to market internationally.

Have the students prepare an international campaign and marketing plan for one consumer
product. Ask them to refer to Global Marketing Pros and Cons (Table 21.2) and being
cognizant of these pros and cons, develop strategies to minimize the risks involved in
international marketing.

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Chapter 22

Managing a Holistic Marketing Organization

Key Chapter Concepts:

Trends in marketing practices the role of
marketing in the organization is changing
Internal marketing
Product-or brand-management organization
Market-management organization
Matrix-management organization
Relations with other departments
Marketing vice president, or CMO
Building a creative marketing organization
Socially responsible marketing
Corporate social responsibility

Legal behavior
Ethical behavior
Social responsibility behavior
Socially responsible business models
Cause-related marketing
Cause marketing benefits and costs
Social marketing
Marketing implementation
Evaluation and control
Sales analysis
Market share analysis
Marketing expense-to-sales analysis
Financial analysis
Marketing-profitability analysis
Efficiency control
Strategic control
The marketing audit
The marketing excellence review
The future of marketing


1) Holistic Marketing

Successful holistic marketers have integrated relationship marketing, internal marketing, and
social marketing into their organizations. Students should choose three companies that they
believe practice holistic marketing and then defend their choices by outlining the marketing
programs of the selected companies.

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2) Social Responsibility

Some companies like the Newman’s Own Brand, have built a business model on social
responsibility. Students should find three other examples of such socially responsible firms
and comment on whether or not they see “social responsibility” as a need component for
marketing in the future. Specifically, knowing what we now know about consumer-buying
behavior, is “socially responsible” a determinant for future success? Is it a mega-trend? Or just
a “trend?”

3) Strategic Innovation

In the Marketing Memo entitled “Fueling Strategic Innovation,” Professor Steven Brown of
Ulster University claims that marketers are spending too much of their time in research and
not enough in marketing imagination and producing products with significant consumer
impact. Split the class into two sections: pros and cons and have them defend/attack Professor
Brown’s assumption.

4) Sustainability

Have the students read Michael F. Porter and Mark R. Kramer, “Strategy & Society,”
Harvard Business Review, December 2006, pp. 78-82; Clayton M. Christense, Heiner
Baumann, Rudy Ruggles, and Thomas M. Stadtler, “Disruption Innovation for Social
Change,” Harvard Business Review, December 2006, pp. 94-101 and report on their findings.
In particular, ask the students to comment on the sustainability of these concepts into the 21


5) Cause-Marketing

Students should research and find two examples of a successful cause-marketing program
currently available in their area and evaluate whether or not they believe that this cause-
marketing program is (a) building the firm’s brand awareness; (b) enhancing brand image; (c)
establishing brand credibility; (d) evoking brand feelings; (e) creating a sense of brand
community; and (f) eliciting brand engagement. Students should be able to defend their
opinions citing financial, market share, stock price growth, and other definitive measures.