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Instructor’s Resource Manual

Lilly Anne Buchwitz

MARKETING An Introduction

Third Canadian Edition

Gary Armstrong Philip Kotler Peggy Cunningham Lilly Anne Buchwitz

Copyright © 2010 Pearson Education Canada, a division of Pearson Canada Inc., Toronto, Ontario.

Pearson Prentice Hall. All rights reserved.

This work is protected by Canadian copyright laws and is provided solely for the use of instructors in teaching

their courses and assessing student learning. Dissemination or sale of any part of this work (including on the

Internet) will destroy the integrity of the work and is not permitted. The copyright holder grants permission to

instructors who have adopted Marketing: An Introduction, Third Canadian Edition, by Gary Armstrong, Philip

Kotler, Peggy Cunningham, and Lilly Anne Buchwitz to post this material online only if the use of the website is

restricted by access codes to students in the instructor’s class that is using the textbook and provided the

reproduced material bears this copyright notice.


Copyright © 2010 Pearson Education Canada 2

Introduction

This manual is intended to assist the instructor in teaching an introductory marketing course

using the textbook Marketing: An Introduction 3rd Canadian Edition. It can be used by both the

novice and the experienced instructor. For the novice instructor, the manual provides a LESSON

PLAN intended to be used in conjunction with the PowerPoint slides when teaching a lecture-

style class covering an entire chapter in the book. The LESSON PLAN is organized to coincide

with the chapter’s Student Learning Objectives. For the more experienced instructor, many

suggestions for in-class activities; and both short and longer written, oral, and group assignments

are suggested.

All the assignments and projects suggested in this manual require the students to read and re-

examine the material covered in the chapter, therefore it is vitally important that you, as the

instructor, have read the relevant chapter in the textbook before using the suggestions in this

manual to teach that chapter. In other words, please do not consider this manual a replacement

for reading the textbook yourself.

Each chapter in this manual contains many more suggestions and assignments than can possibly

be covered during the one or two classes in which you’ll be teaching that chapter. These sections

are offered, therefore, not to provide you with a single comprehensive lesson plan but rather to

provide you with options and suggestions that might assist you in all aspects of your teaching:

from preparing your course syllabus, preparing assignments for the students, and evaluating

those assignments, to organizing your time and activities in the classroom.

Each chapter in this manual contains:

Introducing Chapter X

This section raises some of the challenges you might face in teaching the topics and concepts

covered in the chapter, based on the collective experience of this and previous authors of the

textbook and this manual, and offers suggestions for how to introduce the chapter in a way that

will break through any barriers to learning.

Lesson Plan for Chapter X

This section organizes the content of the chapter into five or six segments, corresponding to the

student learning objectives for that chapter. Each segment in the lesson plan is numbered to

correspond to the SLO. Each segment includes the key terms and concepts for that SLO, as well

as suggestions for in-class activities, which can be expanded or condensed as necessary, and as

your time allows.

Talk About Marketing

At the end of each chapter in the text there are six discussion questions under the heading TALK

ABOUT MARKETING. These questions are repeated in the instructors’ manual with some

additional suggestions for points of discussion. These questions can also be used as individual or

group assignments.

Think Like A Marketing Manager

Each chapter includes at the end a very short case under the heading THINK LIKE A MARKETING

MANAGER, followed by four questions designed to force the students to think like a real



marketing manager. There are no right or wrong answers. These questions are repeated in the

instructors’ manual with some additional suggestions for points of discussion. These questions

can also be used as individual or group assignments.

Marketing Ethics

This is a new learning supplement appearing at the end of each chapter of the text. A short

paragraph describing some event in the news is given, and two questions about the marketing

ethics involved are posed. Some of the questions require research to prepare an answer. Here in

the instructors’ manual additional suggestions for how to use this feature are given.

Marketing Technology

This is a new learning supplement appearing at the end of each chapter of the text. A short

paragraph describing some event in the news is given, and two questions about the technology

involved are posed. Some of the questions require research to prepare an answer. Here in the

instructors’ manual additional suggestions for how to use this feature are given.

Case

Each chapter in the textbook includes a longer (2-3 pages) case that further illustrates one of the

major topics in that chapter. A set of questions follows each case. Those questions are repeated

in this manual, with suggested answers and points for discussion and further inquiry.

Student Projects

Five suggestions are given for more in-depth, longer term, group or individual projects, based on

the subject matter of the chapter.

Small Group Presentation Assignment (based on Opening Vignette)

Each chapter in the textbook begins with an opening vignette, a real-world marketing case that

sets the stage for that chapter’s topic. The small group assignment is based on this opening

vignette. The assignment assumes that the students have read the chapter, and requires them to

apply the concepts and vocabulary contained in it. You might wish to begin the class by forming

groups and giving students 10 minutes to read the vignette and complete the assignment, and

then give a short oral presentation, or allow them to work in groups first, and then conduct a

group discussion. The TEST YOURSELF questions immediately following each opening vignette

can also be used as part of this discussion.

Individual Written Assignments (based on Marketing@Work features)

Each chapter in the textbook has two Marketing at Work features. These are short, real-world

marketing cases, and are intended to illustrate the academic theory presented in the chapter. The

Individual Assignments section of the instructor’s manual suggests one short, written assignment

for each Marketing at Work segment. The assignments can be assigned in advance of the class,

or can be done in 15-20 minutes at the end of the class and collected, perhaps as a participation

exercise if participation grades are given in the class.

Think-Pair-Share

This activity is intended to be done in the classroom, with the students working in pairs. The

teaching purpose of this activity is to focus the students’ attention on their own experiences with



the marketing concept being studied, as well as to improve their listening and reporting skills.

Five questions about the topics in the chapter are given.

Online Research Assignment

This section describes, in one short paragraph, a real organization, product, or situation which is

not included elsewhere in the textbook, followed by a set of related questions. It is presented as a

supplemental activity that requires the students to do some online research, and therefore must be

given in advance of any required presentation, written assignment, or discussion.



Chapter 1

Marketing: Creating and Capturing Customer Value

Introducing Chapter 1

Introducing the subject of marketing to a group of students who have never studied it before is

not as difficult as it might seem. They are all consumers, and as such have been experiencing

marketing their whole lives. They are sitting there, on the first day of class, thinking that they

know nothing about marketing. It’s your job to show them they’re wrong about that: they are

actually experts! (They’ll get enthusiastic right away when you tell them that.) Go around the

room and ask each student to give one example of marketing they saw either yesterday or today.

The first few will find this difficult, but you’ll see a snowball effect once they get it. Write all

their answers on the board, so they can see the cumulative effect at the end of the exercise.

One of the most difficult concepts for students to grasp in an introductory marketing course is the

fact that not every product on the market is meant for them. They tend to view any product, or

retail store, or television commercial, as either “good” or “bad,” where good means, I like it, and

bad means I don’t like it. Therefore, it is important for you to begin to introduce this idea to them

right at the beginning, and reinforce it throughout the course: not every product is made for you!

Using extreme examples can help. For example, denture cream, arthritis medicine, tricycles and

Barbie dolls are all products that the students will immediately grasp are not for them, but are

nonetheless products of value that are being marketed to an appropriate segment of the market.

Not every product is made for you. If you end up working in marketing one day, you will almost

certainly be working for a company that makes a product that you know nothing about. One of

the greatest challenges marketing managers face is understanding who their product is made for.

Lesson Plan for Chapter 1





your time allows.

1.1 Define marketing and outline the steps in the marketing process

Refer to pages 6-8. Key terms: marketing, customer, value, exchange, the marketing process.

Ask students to provide their own definitions of what marketing means to them. Then,

show the textbook definition on a slide, and ask them to comment on the definition. Ask

them whether they think it’s possible for a company to design a product that everybody

wants, build a store that everybody wants to shop in, or create a television commercial



that everybody likes and responds to. Introduce the terms target market, and market

segmentation.

Show the students the slide with Figure 1.1 (this is the simplified marketing process

diagram). Tell them, this is what you’re going to learn today. Then show them Figure 1.6

(in the textbook— the expanded marketing process) and tell them, this is what you’re

going to learn in this course. Briefly describe the marketing process to them.

This chapter provides an excellent basis for introducing the basic concepts of marketing,

and introducing some key marketing terms, to a group of students who are new to the

subject. An excellent way to begin the first class is to tell them, “You are all experts in

marketing.” That will surprise them, and get their attention. They are experts, because

they are consumers, and they are exposed to marketing messages, tactics, and programs

every day of their lives.

Ask the students how they would define marketing—not the textbook definition, but

informally. For example, if they were to tell a friend, “I’m taking a marketing class,” and

their friend were to ask, “What’s marketing?” how would they answer?

What is a customer? The word customer implies a relationship, and should not be

confused with the word consumer. Ask the students to describe some of the relationships

they have as a customer, with a marketer.

Marketing is “managing profitable customer relationships.” One of the central ideas of

the marketing concept is that all organizations, not only for-profit businesses, must

conduct marketing. Ask students to consider who are the customers of MADD, The

Canadian Cancer Society, and the Girl Guides. Ask them how their university marketed

itself to them, and why they, as consumers, made the “purchase decision” to go to this

university.

Marketing involves an exchange, and not only the exchange of cash for merchandise. In

marketing, value is exchanged for value. The consumer gives time, effort (in researching

the purchase, for example), and money in exchange for the value they perceive they are

getting. Value is defined by the consumer, and is highly subjective.

The marketing process is the process by which marketers create value for customers,

and build customer relationships. Refer to Figure 1.1 on page 8. (This figure is included

on a slide in the accompanying PowerPoint presentation.)

Suggested in-class activity: Show the diagram of the marketing process on a slide.

Choose a well known marketer such as Coca-Cola, or McDonald’s, and ask the students

to apply the five steps to that marketer. For example, ask them, “Does McDonald’s

understand the marketplace and the needs and wants of its customers? How do you

know/why do you think so?”

1.2 Explain the importance of understanding customers and the marketplace, and identify the five core marketplace concepts

Refer to pages 8-13; 12. Key terms: needs/wants/demands, market, market offer, marketing

myopia; value and satisfaction; exchange and transaction.



The marketing process begins and ends with customers. Marketers must understand the

needs, wants, and demands of the market. The market is a more general term for the

group of people who are potential customers, but may not necessarily become customers.

Marketing strives to serve customers’ needs, though customers may not always know

what they need. An example is wheels on luggage: no one knew they “needed” that until

the product marketers of a luggage company first developed it. Marketers who

understand the market can figure out what the market wants.

Marketing presents a marketing offer to the market—some combination of goods,

services, information, or experiences. The marketing offer we are most familiar with, as

consumers, in the consumer product; items such as clothing, food, shampoo, and

household cleaning supplies. But IBM’s marketing offer is consulting services to other

businesses; the Marriott’s marketing offer is a luxurious private room with a bed and

bathroom, and the Girl Guides’ marketing offer is life skills training for young girls.

The phrase marketing myopia comes from the 1960 Harvard Business Review article of

that title, written by Theodore Levitt. It refers to the dangers of being shortsighted in

planning a marketing strategy, illustrated by the lesson of the wealthy family that went

broke because its patriarch mandated in his will that the family’s money forever and

always be invested in the streetcar industry—because people will always need

transportation. He was correct on the latter statement, but shortsighted in believing that

transportation would always be provided by streetcars.

Customer value and satisfaction are key building blocks for developing and managing

customer relationships.

Marketing involves exchange, and a transaction. An exchange—the act of obtaining a

desired object from someone by offering something in return—is a core concept of

marketing. A transaction, a trade of values between two parties, is marketing’s unit of

measurement.

1.3 Identify the key elements of a customer-driven marketing strategy, and discuss the marketing management orientations that guide marketing strategy

Refer to page13-19. Key terms: target market, market segmentation, value proposition,

production concept, selling concept, product concept, marketing concept, societal marketing

concept, integrated marketing, marketing mix, marketing program

Give the students five minutes in class to read the opening vignette about Tide laundry

detergent. Use it as a lead-in to introducing the marketing concept.

The role of marketing management is to develop and implement marketing strategy.

Marketing managers design a marketing plan, which consists of a detailed plan of how

the marketing mix (the 4Ps) will be used. Chapter 2 covers these topics in more detail—

introduce the terms here.

Marketing managers must define and promote their organization’s value proposition to

the market, that is, what customer value does their marketing offer actually offer the

customer, and in what ways is it different from the competitor’s marketing offer.

Marketing managers must make a very important decision: what markets will we serve?

In other words, what is our target market? To be able to answer this question marketers



must first study the entire market, then segment it—divide it into groups of people or

organizations that share similar characteristics.

The text mentions the term “demarketing” on page 13, however, this is not a term that is

in actual use in the world of marketing. The concept is a valid one—it is the notion that

marketers must be aware of cycles of demand in the market, and may sometimes have to

work to adjust the levels of demand. This concept is more commonly referred to as

demand management.

A key idea of this section is that all organizations must perform marketing tasks,

however, the focus of those tasks, in other words, their guiding philosophy, may differ.

Descriptions of the five different marketing management orientations or philosophies

follow. Suggestion for in-class discussion: ask students to think of companies or

organizations that follow one of these marketing management orientations, and ask them

to comment on situations where each is most appropriate. Suggestion for an in-class

discussion: use the selling concept vs. the marketing concept for a discussion aimed at

clarifying the differences between sales and marketing—most students who have never

studied marketing have trouble making this distinction.

An organization whose focus is the production concept believes that by focusing on the

production of their products and services, and making them as widely available as

possible, the customer will be best served and the goals of the organization best realized.

It could be argued that Coca-Cola follows this marketing management orientation,

because it understands that most consumers will not go out of their way to buy a Coke,

especially if there is Pepsi available.

The product concept philosophy is the “Build a better mousetrap and the world will beat

a path to your door” idea. The company believes it will best serve the market by focusing

on product development, and building the best possible product it can build. There are

those who believe that the Sony Betamax was a superior product to the VCR, yet it did

not survive in the market.

The selling concept philosophy is the “We can sell ice cubes to Eskimos” idea. The

company believes that if it focuses on building a strong and knowledgeable sales team,

those salespeople can sell whatever product the company produces.

The marketing concept philosophy is one of the main ideas of modern marketing, and of

this textbook. An organization that believes in the marketing concept is customer

focused, has an outside-in perspective, and always looks to the market and asks itself,

how can we better serve that market, and our customers.

The societal marketing concept is the notion that the company can “do well by doing

good.” The company’s marketing offer is a product or service, but the company also

focuses on community or society in its marketing efforts. The exemplar of this marketing

management philosophy is The Body Shop.

1.4 Discuss customer relationship management, and identify strategies for creating value for customers and capturing value from customers in return

Refer to pages 19-31. Key terms: customer relationship management, touchpoint, customer

perceived value, customer satisfaction, customer loyalty, customer retention, share of customer,



customer equity, partner relationship management, marketing channels, supply chain, customer

lifetime value

Note: the acronym CRM usually refers to software systems used by marketing, sales, and

customer service managers to mange customer information. Here, customer relationship

management refers to a concept or a philosophy; the idea that it is a key task of

marketing to build, grow, and manage relationships with customers.

The terms customer value and customer satisfaction, introduced earlier, are developed

more fully in this section.

An important point to emphasize with the students—as described on page 20—is the idea

that what a customer perceives as value (customer perceived value), though it may or

may not be “real” or “true” is what matters; that marketers need to understand the

market’s perception of the value the company provides. People do not necessarily judge

product values and costs accurately or objectively (p. 20); what one person considers

valuable, another doesn’t. Value, and customer value, are key concepts in marketing.

Ask students what tools marketers can use to manage relationships with customers. They

should be able to draw on their own experience as consumers for an understanding of

this. If they have ever purchased tickets for a concert of a sporting event online, they

might have a relationship with that team, or band, or venue, or third party organization

such as Ticketmaster. Examples from the text (pages 22-23) are websites, 1-800 numbers,

and groups such as Harley Davidson’s “HOG” or Harley Owners Group.

Ask students what benefits they get from having a relationship with marketers? Most

students will agree that customer service is of paramount importance. Ask one or two

students to recount a time that they had poor customer service, and a time that they had

excellent service, and their responses, as a consumer, to each. Then raise the issue of self-

service. If there is time, allow them to read—or assign them to read for the next class—

the case at the end of the chapter. Ask them to debate the issue of excellent customer

service vs. self-service. This can be done in a semi-formal debate structure, for example,

with three students arguing for self-service, three arguing against.

Partner relationships: Page 26 describes the partners that marketers must work with, and

makes the point that partner relationships must be managed in much the same way as

customer relationships. Partners include other departments within the organization,

suppliers, and channel partners such as retailers that carry the company’s products.

The final step of the marketing process is capturing value from customers. Marketers who

understand the necessity of customer relationship management recognize the value of

customer loyalty and customer retention.

Share of customer is a term used by marketers. It’s similar to market share, or “share of

market” which refers to the portion of the entire market that buys your product. Share of

customer, similarly, refers to the portion of that customer that buys your product—

customers buy many, many products..

Customer equity refers to the value of the customer himself. Customers are valuable to a

company not just in making one purchase, but in the purchases they will make over their

lifetime. A satisfied Volkswagen customer, for example, might buy five or six (or even

more) cars in his or her life, making the “lifetime value” several hundred thousand



dollars. One of the reasons why customer relationship management is such an important

concept for marketers to understand and use is because, without it, it would not be

possible to keep a customer for their lifetime.

Another reason why customer relationships must be managed is so that marketers can

identify high value customers, and low value customers, and focus their marketing efforts

on the high value customers, while allowing the low value customers to drop off. the

customer relationship groups illustrated in Figure 1.5 on page 30 classify customers as

“butterflies,” “true friends,” “strangers,” and “barnacles.” This diagram would provide a

good basis for a lively discussion about these groups. Ask the students to think about a

company, product, or organization to whom they are a barnacle, and one to whom they

are a true friend.

1.5 Describe the major trends and forces that are changing the marketing landscape in this age of relationships

Refer to pages 31-38. Key terms: Internet marketing, Web 2.0, mobile marketing, global

marketing

This section describes some of the forces and trends that have changed marketing in the

last decade. There are five major forces/trends:

1. New technologies such as cell phones, PDAs, iPods, and, of course, the Internet

2. Globalization

3. Pressure on companies to be more ethical and socially responsible

4. The growth of not-for-profit marketing, and the recognition by non-profit organizations

that they, too, must perform marketing activities

5. The concept of “relationship marketing” as opposed to the old fashioned, sales-oriented

concept of focusing only on making the sale


These questions appear at the end of the chapter under the heading TALK ABOUT MARKETING.

Some suggestions for points of discussion are provided here.

1. Imagine you are a marketing manager working at a large company that makes and

markets a variety of soft drinks, from sodas to juices and flavoured water. You are

planning the launch of a new soft drink product, a coffee-flavoured sparkling soda. What

customer needs and wants should you learn about? What values and satisfactions can your

product provide? What might your value proposition be?

Students tend to want to generalize, so force them to be specific here. You are guiding them to

come up with market research questions. For example, how would a marketer learn about the

coffee drinking habits of consumers? How would they learn about similar products from

competitors (grocery store research, or company website). Have the students commit the value

proposition to writing ― this will be much harder than they might think. There are no right or

wrong answers, but forcing them to write it forces them to think about it and articulate it clearly.



2. Why is it necessary to identify and describe a market segment to target with a new

product? Why don’t marketers just try to create a soft drink (or other product) that

everyone would like?

Student will probably say, there’s no such thing as a soft drink everyone likes, but that’s a

simplistic answer and it’s not true: everyone likes water. So let them give the simplistic answer,

then guide them to think beyond it: why don’t we all just drink water? Why do we need all those

different drinks in the stores? We don’t ― so why are they there?

3. If you were launching a new soft drink, which marketing management philosophy do

you think is the most appropriate for your management team to adopt? What if you were

developing a new technology product, such as a cell phone?

Students can choose any of the five philosophies; what’s important is how well they defend their

reasons for their choice. The best choice for the soft drink is the production concept, because a

soft drink is a small, inexpensive item with mass distribution, and the consumer’s choice of a soft

drink is usually made while looking at the selection ― therefore, focusing on production, so that

your brand is part of that selection, is key. For technology products, the best argument can be

made for the product concept, because consumers typically choose a technology product based

on its features.

4. For what types of products might it be appropriate to adopt the product concept, the

selling concept, or the production concept?

This question forces the student to really understand the definitions, and be able to work

backward from the definition and reason what type of products best fit each. The production

concept is most appropriate for commodities, the selling concept for products that require

learning and customization, and the product concept for products that are differentiated on

features.

5. What are the advantages for a company in building relationships with its customers?

What are some of the ways that they can do this?

The most obvious answer is that customers who have a relationship with a company are more

likely to continue buying its products, but push the students to think beyond that. Consider the

analogy to human relationships ― what are all the benefits we get from those, and do any of

those benefits apply to our relationship with marketers? Students will find it amusing, and

instructive, if you compare a customer relationship to a human one as follows: meet before you

date, date before you marry.

There’s a saying in marketing: It costs ten times as much to acquire a new customer as it does to

keep one you already have. If a customer is happy with a product or service they purchased they

are likely to continue to purchase that item (shampoo, coffee; consumable products), and are

likely to purchase other products from that manufacturer, or retailer, in the future. The

advantages for the company in developing, encouraging, and managing relationships with its

customers, therefore, are lower customer acquisition costs and higher lifetime value of customer.

6. What are the advantages for the consumer in having a relationship with a marketer?

What brands, products, retailers, or services do you have a relationship with?

This question is open and is intended to encourage the student to apply introductory marketing

concepts to his or her own personal experience. The students likely do not think of themselves as



having a “relationship” with any company, yet they almost certainly do. In class discussion, ask

them to think of a company that they have purchased from more than one time. Ask whether they

belong to any customer loyalty programs, such as Air Miles, HBC points, or Shoppers Drug

Mart’s Optimum program. They may have a card from a coffee shop or a sub shop that entitles

them to a free coffee or sub after they’ve purchased eight or ten times. With that in mind,

encourage them to probe their own motivations (consumer behaviour) and attempt to articulate

what value they feel they are getting from those purchases, other than the practical use of the

product they purchased. Then, ask them to consider what value the company gets from them,

other than the obvious (the revenue from their purchase).




marketing manager. There are no right or wrong answers.

1. You are a marketing manager at Vans. How would you describe your value proposition?

What you are looking for here is the students’ ability to phrase a value proposition, that is, to

state what the company offers of value to the market. Vans offers shoes that are specially

designed to meet the needs of skateboarders.

2. How would you use social media to create customer loyalty?

It’s very easy for the students to say “I’d create a MySpace or Facebook site.” Force them to

think it through: what marketing purpose would the MySpace site serve? What would compel

consumers to visit it?

3. The president of your company has made the strategic decision to expand into

international markets. Which international market would you recommend entering first,

and why?

Don’t accept superficial, off-the-cuff answers here. Give the students time and force them to do

research to support their answer.

Marketing Ethics

This feature requires students to consider their personal ethics, and to compare them to the

ethical guidelines of the CMA, the Canadian Marketing Association. To answer the questions,

students will need time to research the CMA’s website.


This feature asks students to consider the value to customers (that is, themselves) of high-tech

features such as automated pizza ordering. An interesting way to delve into this topic might be to

do role playing in the classroom. Have a couple of students act out a scene, for example, have

one play the role of a consumer ordering a pizza online; another the role of the customer service

person receiving the order; another the manager of the store where the pizza will be made; and

ask the rest of the class to evaluate what the benefits of the technology were. Is it really a better

solution than ordering pizza the old fashioned way?



Case 1: The Self-Serve Society

This chapter’s case describes various organizations that offer their customers the option of self-

service, such as bank machines and check-in kiosks at the airport, and encourages students to

consider the pros and cons of self-service, and what forms self-service might take in the future.

There are four questions following the case, which are repeated here with suggested answers and

points for in-class discussion.

1. Does the marketing concept apply to organizations that rely on self-service for high

proportions of transactions?

Of course the marketing concept applies—companies that offer self service options are giving

their customers options, and many customers prefer the convenience of serving themselves.

There are always customers, however, who prefer to be served by a human being, or who are

unable, for whatever reason, to use the self-service options. Ask students to draw on their own

experiences and discuss which form of service they prefer. For example, is it worth paying a few

cents more for gas to have someone at a gas station fill your tank for you? Or is the savings

worth the extra “work”? This is an opinion question; there is no right or wrong.

2. Is it possible for self-serve based organizations to create customer value? If so, what value(s)

can be created?

The value of most self-serve options is the time saving factor, however, this only applies if the

person knows how to “use” the self service feature. Almost all consumers today know how to

use a bank machine, but what about airport check-in kiosks? Ask students if they have ever used

one, or if they would use one next time they’re in the airport. Encourage them to consider that

there is a learning curve—if you’re in a hurry to catch your flight, are you likely to spend time

trying to learn how the kiosk works?

3. How do companies with significant levels of self-service exemplify a new model of connecting

with customers, as explained in this chapter?

Self-serve kiosks replace a human customer service representative with a machine. The form of

the touchpoint has changed, but the fact of it has not—kiosks are still a customer touchpoint. In

fact, in many cases they are an additional touchpoint. Airports still have, and will likely always

have, humans whose job includes checking the customer in, and banks will continue to have

human tellers. So while self-service is a new model of connecting with customers, it is not so

much a change in service, but an expansion; the providing of additional options so that the

customer may choose how they wish to be served.

4. Take the position of a company such as the Kiosk Factory. What would be an industry that you

would target for integrating self-serve technology?

This is a wonderful open-ended question that provides the students with an opportunity to be

creative, as well as to apply marketing concepts to real situations. Suggest some industries, and

ask whether they think it’s possible to offer self service, and if so, how would it work? Some

suggestions: fast food restaurants, regular eat-in restaurants, hotels, car repair shops, hospitals.

Some might sound ridiculous, but ask the students to consider whether any level of self-service

might be provided. Fifty years ago the idea of a self-service grocery store checkout and a bank

machine would have sounded ridiculous, too.



Student Projects

Form a relationship with a company or organization. This could be a term project; it

will take some time. Students choose their favourite product, or brand, or retail store, then

investigate ways in which they can form a relationship with it. The store may have a

membership card, or the product or brand may have a website that offers member

registration. After several weeks of being engaged in this relationship, have the students

report on the benefits they received from the relationship, and analyze what benefits they

believe the marketer received.

Study a print advertisement. Ask students to analyze an advertisement from their

favourite magazine and determine what need or want the marketer is appealing to.

Find a CRM tool. There are many companies that market customer relationship

management software to organizations. (At least one is a Canadian company: Pivotal.)

Have the students research CRM software online, and choose one company and study its

product offering, and prepare a short report on the functions, features and benefits of that

company’s product.

Design a new product to fill an unmet market need. Think of a need, want, or desire

that you have as a consumer that is not being met by any product or service currently

available on the market. Describe a product or service that would fill that void. Then,

describe the market for that product. That is, list the characteristics of the group of people

who would be interested in this product.

Technological forces changing marketing. Choose a high tech device such as a

computer, DVD player, iPod, or Blackberry and list all the ways that this device has

changed marketing. Be specific, and consider product changes, price changes,

distribution (of information, software, or other products), and promotion.

Small Group Presentation Assignment (based on opening vignette)

This assignment is based on the opening vignette, about Tide laundry detergent. It is designed to

force students to practice their group work skills, and their presentation skills. The size and

number of groups will depend on your class size. Give them 15 minutes to come up with a short

presentation of their answer to the question, “Describe the five steps of the marketing process as

they pertain to Tide.

Individual Written Assignments (based on Marketing@Work features)

These assignments are designed for individual written work, and are based on the Marketing at

Work segments in each chapter. Each chapter’s Marketing at Work segments are short, real-

world marketing cases, and are intended to illustrate the academic theory presented in the

chapter. These assignments are likewise short, written assignments that can assigned in advance

of the class, or that can be done in 15-20 minutes at the end of the class and collected, perhaps as

a participation exercise if participation grades are given in the class.



M@W 1.1 Bike Friday: Creating Customer Evangelists (p. 21) Write about a product you

loved to the point of wanting to evangelize it. Why did you feel so strongly about the product?

What did you get out of your relationship with the marketer?

M@W 1.2 The new Starbucks experience—still coffee, now with more rewards (p. 23) Visit

the My Starbucks Idea website and browse the content. Think of an idea that you’d like to submit

to the company, and compose a short paragraph suitable for submission to the website.

Think-Pair-Share

Direct the students to working in pairs and take turns asking and answering the following

questions. For example, Student A asks Student B question 1; Student B answers question 1, then

asks Student A question 2, and so on. Give the students five minutes to form answers to each

question, then ask the questions of the class, and choose students to share their answers with the

larger group. The teaching purpose of this assignment is to focus the students’ attention on their

own experiences with the marketing concept being studied, as well as to improve their listening

and reporting skills. Tell the students before they begin the exercise that they may be called upon

afterwards to report, orally, to the rest of the class, their partner’s answers. When conducting the

group discussion at the end of the activity, be sure to phrase your question in this manner: “Jerry,

when did Elaine say was the last time she was completely satisfied, as a consumer, with a

product she purchased, and what was the product?”

1. What is the difference between marketing and selling?

2. What was the chief “want” you had when you began your university or college program?

Has that want changed since then? If so, how? Of what value would this knowledge be to

those responsible for marketing your school to prospective students?

3. When was the last time you were completely satisfied with something you purchased?

What was it? Why were you satisfied? In what way did marketing play a role in your

satisfaction?

4. If you were the head of marketing at a company that manufactures personal care products

such as shampoo and cosmetics, would you follow the societal marketing concept?

5. As a marketer, how would you convince your customers that it is in their best interests to

have a “relationship” with your organization?


This short case assignment requires the students to do some online research, and therefore must

be given in advance of any required presentation, written assignment, or discussion. The case

described in the following paragraph features a real organization, product, or situation. This case

is not included in the text, and is presented here as a supplemental activity.

The name Pez, as in Pez dispenser, is an abbreviation of pfefferminz, the German word for

peppermint. Pez candies and their popular, collectible dispensers, are said to have been the

inspiration for the formation of online auction company, eBay. Collectors were after those hard

to find Pez dispensers long before Beanie Babies were ever conceived. A few years ago Pez

signed a licensing agreement with a Florida perfume company which will allow the candy’s fans



to eat their Pez and wear it too. Parlux Fragrances planned to introduce a Pez fragrance, and a

line of Pez cosmetics.

Your assignment: Before doing any research, do you think that this new product idea will be

successful? Don’t discount the idea simply because you are not the target market for such a

product. Consider who you envision the target market to be. Now, research both companies, Pez

and Parlux, and find out what happened. Was the product ever launched into the market? Was it

a success?



Chapter 2

Strategic Planning and the Marketing Process

Introducing Chapter 2

To introduce this chapter, try to find areas where students might have had some life experience

in strategic planning ― for example in athletics, or student politics, or even playing chess. By

asking the students to recall and relate these experiences, parallels can be drawn to business

strategies and how these strategies are formulated.

The students might have heard the term mission statement, but they probably think it’s

meaningless b.s. that companies put out. (A lot of the time, it is.) Find out what the mission

statement of your school is, before class, and bring it to the class to show it to them. Ask them

what they think about it. Ask them if they think they could write a better one. What do they think

the mission of their school should be? Should all schools have the same mission statement? If

not, what makes their school different from others? Since the students have a vested interest in

attending your school, this discussion should get them actively involved and thinking about the

concepts in this chapter.

Lesson Plan for Chapter 2





your time allows.

2.1 Explain companywide strategic planning and its four steps.

Refer to pages 52-57. Key terms: strategy, strategic planning, mission statement

This chapter introduces the notion of strategy, both at a companywide level and as the

guiding principle for the marketing effort. An excellent way to begin this class is to ask

them, “What strategy are you currently following in your life?” They will likely have no

idea how to answer that, but the fact is, each one of them, by virtue of the fact that they

are sitting in a school of higher education, does have a strategy. Try to draw it out of

them. If they can articulate their own strategy, they will be prepared to begin to consider

business and marketing strategy.

Strategic Planning is the process of developing and maintaining a strategic fit between

the organization’s goals and capabilities and its changing marketing opportunities. It is

the basis for all of the rest of planning for the firm (including marketing planning).



Refer to Figure 2.1, page 53. This figure shows the steps in the strategic planning

process: The company begins by defining its overall purpose and mission. A mission

statement is a statement of the organization’s purpose—what it wants to accomplish in

the larger environment (i.e. the market). Mission statements should be market oriented,

not focused on the product(s) the company produces. This means that the mission should

be defined in terms of satisfying basic human needs.

Ask students to imagine what the mission statement might be for a company they are

familiar with. The mission statement of a company should answer the question, why are

we in business? If time permits, have them look it up online.

Or, have the students write their personal mission statement. Remind them that they have

a personal “life strategy”, and that their personal mission should follow from that.

Setting company objectives and goals: The mission must then be developed into

detailed objectives, and goals for each department, including marketing.

2.2 Discuss how to design business portfolios and develop growth strategies.

Refer to pages 57-62. Key terms: business portfolio, strategic business unit (SBU), the Boston

Consulting Group’s Growth Share Matrix; strategies: market penetration, market development,

product development, and diversification

Designing the business portfolio: A business portfolio is the collection of businesses and

products that make up the company. A company’s businesses are sometimes called

SBUs, or strategic business units.

The Boston Consulting Group is an organization that developed a model called the

Growth Share Matrix. It’s a way for marketers to think about the products/services

offered by each business unit.

The BCG Growth Share Matrix may seem to the students, upon first glance, as a dry

business concept, however, they typically end up having fun with it if you ask them to

categorize products they are familiar with as either stars, question marks, cash cows, or

dogs. Doing so gives them insight into marketing—they have to make an attempt to

examine the products they are familiar with as consumers, the way marketers view them.

International growth: How does a company decide whether to offer its products and

services in foreign markets? How does the company then decide which markets to enter,

considering there are approximately 180 countries in the world? In facilitating this

discussion with your class, guide them to consider decision criteria, rather than to make

specific decisions about which company should enter which market.

If the company has decided to enter international markets, it becomes the marketing

manager’s job to translate the marketing strategy into an appropriate one for the new

market. Ask the students to list all the questions the marketing manager must ask and

answer. For example: What competing products are there in the new market? Which are

the most popular? How might our product be used in the new market? Should the name

of the product be changed or translated?

Every student will be familiar with Tim Hortons, the products they sell, their advertising,

and their stores, so the company makes an excellent example for a discussion of changing

business strategies, and how companies grow. The students will almost certainly



remember a time when Tim Hortons didn’t sell some of the product lines they sell today,

like lunch items, soup and sandwiches. Direct the discussion so that they see how these

changes were strategic decisions, designed to serve the goal of growing the business. Ask

them what they would do next to grow the business, if they were the president of Tim

Hortons.

Continue the discussion, using Tim Hortons as an example, and ask the students to

consider the four types of growth strategy (market penetration, market development,

product development, and diversification) with respect to Tim Hortons. What are the

pros and cons of each strategy, for this particular company?

2.3 Explain marketing’s role in strategic planning and how marketing works with its partners to create and deliver customer value.

Refer to pages 62-65. Key terms: value chain, value delivery network

Marketing is one department of a large company. Ask the students to name the others.

They can think of it this way: a department typically has a vice president, whose title is

Vice President of _____. The blank is the name of the department. The major ones are:

Human Resources, Finance/Accounting, Sales, Information Technology/Technical

Support, Customer Service, and, depending on the type of company, Research &

Development, and Production.

Working from the list the students just created, ask them to think about how marketing

managers would work with each of these departments. Are there any departments that are

not part of the marketing system?

The relationship between marketing and other company departments forms part of the

company’s value chain. The value chain, however, also includes external business

partners that together provide customer value by producing, delivering, marketing, and

supporting the company’s products.

Suggestion for an in-class discussion: Discuss, and sketch on the board, the value chain

for a large retailer such as Loblaws.

“A company’s value chain is only as strong as its weakest link.” (See p. 64). Do you

agree or disagree with this statement?

A company’s value delivery network is the entire collection (larger and broader than the

value chain) of company suppliers, distributors, and ultimately customers, who partner

with one another to improve the performance of the entire marketing system.

Consider Toyota Motor Manufacturing Canada. (See p. 65). This very large

manufacturing plant in Cambridge, Ontario, produces all the Toyota Corollas sold in

North America. Examine the company’s website and make a list of all the suppliers,

distributors, and customers― either by name, if you can find them, or by type of

company―for example, one of the customers of TMMC are Toyota dealers all over

North America. (Consumers are not customers of TMMC. Or are they?)



2.4 Describe the elements of a customer-driven marketing strategy, and the forces that influence it.

Refer to pages 65-73. Key terms: marketing strategy, marketing mix (i.e. the “Four Ps”), target

market, market segment, market targeting, niche market, positioning

The most important concept in this section is the idea that customers are central to the

formation of marketing strategy. See Figure 2.4, p. 66 ― customers are, literally, at the

centre.

Marketing strategy is developed with a target market in mind. There is no such thing as

a product that is for everyone. This is a very important concept, and often one that is very

difficult for students to truly understand. (They think everything is made for them, and

that products that are not things that they like, are useless and shouldn’t be on the market.

That’s an extreme statement, of course, but it lies at the heart of their mindset.)

Marketers look at the whole market ― that is, every consumer, every human being,

everywhere in the world ― and then segment that market, in other words, divide it up

into market segments. Market segments are groups of people described in terms of their

shared characteristics.

Marketers then decide which of those segments to target with their products and

advertising.

The market segment(s) that a company decides to serve do not necessarily have to be

large, they just have to be clearly defined. A great example of a niche market, that is, a

small but highly targeted group of customers, is Ostriches Online, shown on p. 69. This is

a great website to explore with your students, if you have the time.

Positioning is a concept that will be explored in more detail in Chapter 7, but is

introduced here. Use the example of Telus (p. 70), and ask the students to position the

different cell phone providers in their minds. How do they differentiate the products and

services?

An important part of understanding marketing strategy is grasping how the marketing

function includes more than just advertising. With a focus on the diagram on page 71

(Figure 2.5), conduct an in-class discussion on how the Four Ps of marketing determine

strategy, and how strategy influences the Four Ps. Allow the students to choose a

company to use as an example.

2.5 List the functions of marketing management, including the elements of a marketing plan.

Refer to pages 73-78. Key terms: marketing analysis, planning, implementation, and control

The marketing process flows through four levels of management: analysis, planning,

implementation, and control—see Figure 2.7 p. 73.

Marketing analysis is performed to understand the market, and the marketing

environment. Marketing planning—preparing the marketing plan—is usually done

annually for each SBU, product, or brand. Marketing implementation turns those plans

into marketing programs and activities. Marketing control is the evaluation of those

marketing activities after they have taken place.



A SWOT analysis is an important part of marketing analysis. A useful classroom activity

would be to choose a company and sketch a SWOT analysis for it on the board, using

suggestions from the students.

Marketing implementation depends on the organization of the marketing department

within the company. In small companies, one person may perform all the marketing

functions. In large companies, the marketing department may consist of many marketing

managers and specialists, for example product managers, brand managers, advertising

managers, market research specialists. The marketing department may have a functional

organization, a geographic organization, a product management organization, a

market or customer management organization, or any combination of these forms.

Marketing control is a four-step process . Marketing control includes operating control

and strategic control. A tool used by marketers to manage strategic control of the

marketing function is the marketing audit.

The marketing plan: The contents of a marketing plan are shown in Table 2.1 on page

75, and a sample marketing plan for Grassroots is in Appendix 2 on page 567.

2.6 Discuss the importance of measuring and managing return on marketing investment.

Refer to pages 70-82. Key terms: return on investment, ROI

Segment 6: Managing marketing

Ask the students how many of them would like to eventually work as a marketing

manager. For those who raise their hands, ask them to describe the job they imagine they

might do. The goal in this segment is to give them an appreciation for the role of

marketing in the organization, and a taste of what kinds of jobs are available. The top job

in the marketing organization today is the CMO, or Chief Marketing Officer (see p. 77).

Introduce the concept of ROI by asking students how, after graduation, they would

measure the return on their investment in their education. Then lead into a discussion of

how marketers measure the return on their marketing investment.

After discussing and covering all the topics in strategic planning and marketing strategy,

you may wish to use the topic of international marketing strategy as a way of summing

up. This works especially well if the class includes foreign students who have an

understanding of markets other than Canada.


These questions appear at the end of the chapter under the heading TALK ABOUT MARKETING.

Some suggestions for points of discussion are provided here.

1. Imagine you are a team of marketing managers at a large consumer packaged goods

company, and you’re planning the launch of a new line of shampoo. With which

departments in your company will you need to work to plan the launch, and what role will

each department play?



Marketing is one department of a large company. The other major ones are: Human Resources,

Finance/Accounting, Sales, Information Technology/Technical Support, Customer Service, and,

depending on the type of company, Research & Development, and Production. Briefly describe

why the marketing department needs each of these departments in order to successfully launch

the new shampoo.

2. With what types of companies, organizations, or agencies outside the company does the

marketing department need to partner? What role does each play in the implementation of

the company’s marketing strategy?

This assignment or discussion could be done as an extension of #1 above, using the same

company as an example.

3. Imagine you work for a successful Canadian company that manufactures and markets

environmentally friendly “sustainable” fashion—clothing made of natural fibres such as

cotton, linen, and flax. Should your company expand into foreign markets? If so, which

ones?

The students could use Grassroots as a start for this assignment. Have them examine the

Grassroots website, and find out whether there are such products available. They can then

investigate the supplier of those products, and use that company as the example to study to

answer this question.

4. Think of a company with which you are familiar that markets many different products.

Which of those products do you think are its Stars? Which are its Dogs?

Any car company would work nicely for this example. Large electronics manufacturers, such as

Sony, would also work well.

5. Discuss how TELUS might use the processes of market segmentation, market targeting,

and market positioning. How is TELUS differentiated from its competitors?

Part of the answer to this question can be found on page 70. The students should also investigate

TELUS’s website to develop their answer.

6. Briefly describe a new consumer packaged-good product, such as a new laundry

detergent, shampoo, or toothpaste; then outline your plans for pricing, distribution (i.e.,

place), and promotion. Other than simply sales, how will you measure the return on your

marketing investment in this new product?

The purpose of this question is to engage the students in really thinking about the so-called Four

Ps of marketing, and to understand that marketing is not just promotion, but that all four are the

important foundations, and all four must work together, and understand each other. Students can

have fun with this assignment if they invent a new product to work with. How about banana

flavoured toothpaste? Or a non-allergenic laundry detergent? Or a shampoo for men?




marketing manager. There are no right or wrong answers.

1. Which of Apple’s products are its Stars, Question Marks, Cash Cows, and Dogs?



There are no right or wrong answers, but students should be forced to research Apple’s website,

rather than just coming up with answers off the top of their heads. There will always be new

products ― are those the Stars? Are Apple’s Star products always their Star products, or do their

Stars change? Does Apple have any Dogs? (All companies do, but they aren’t necessarily easy to

find.) This question appears superficially easy, but finding good answers requires research and

critical analysis.

2. Which of the four market growth strategies in the product/market expansion grid have

you observed Apple using?

Rather than just answer with one of the four growth strategies, have the students consider each of

the four, and try to come up with examples for each. Again, this will require research, not only

on Apple’s website, but in the news of the last few years.

3. How does Apple employ the elements of the marketing mix—product, price, place

(distribution), and promotion?

Don’t let the students give superficial answers, like simply listing all of Apple’s products. Guide

them to consider the strategy behind each of the four Ps. For example, if you were working in

Apple’s product development group, what do you think your managers are giving you as

direction, in terms of product strategy? The prices of Apple products are not arrived at simply by

calculating how much it costs to make them and adding a markup ― why do you think the

original iPhone cost $500 U.S.? What was the strategy behind that pricing? Apple’s distribution

strategy is selective. What does that mean? Where can you buy Apple products? And what is the

communications strategy behind Apple’s various advertising campaigns?

4. The iPhone was available in the United States in June 2007 but was not available in

Canada until a year later. Why not? What can you infer about Apple’s international

growth strategy?

Encourage students to research the details of what happened before formulating their answer.

They can search news websites, and search for old press releases on Apple’s and Rogers’s

websites, or on Canada Newswire.

Marketing Ethics

This example requires students to consider the real and ethical implications of the same company

marketing multiple versions of what is essentially the same product, laundry detergent. If you ask

them to do the field work ― go to a large grocery store and make a list of all the laundry

detergent products ― it will be far more enlightening than if they just try to create the list from

memory. The ethical questions can be considered in two ways: first, using their own, personal,

ethical judgment; and second, by examining the CMA’s code of ethics (which they should

become familiar with as the course progresses) to see what the professional organization has to

say about the subject.


Students should begin by searching for information about Blue&Me on Google, and following

whatever links they find to learn about the product. Does it still exist as described, or has it

evolved? They will likely discover that it has evolved into something more advanced than what



was described in the book ― and learn the lesson that technology is always evolving. They

should also consider the question of how technology influences marketing strategy (here,

Microsoft making a strategic decision to expand into the automobile market).

Case 2: Duelling Marketing Strategies: Microsoft vs. Apple

This chapter’s case gives an overview of the history of competition between Microsoft and

Apple. There are three questions following the case, which are repeated here with suggested

answers and points for in-class discussion.

1. Visit Apple’s website and read about the company. How many business divisions or SBUs

does the company have? How are they organized? Now, visit Microsoft’s website and examine

how their business divisions are organized. Are the two companies similar, or different, in their

company organization?

This activity must be done as a take-home or next day assignment, to give the students time to

research the Apple and Microsoft websites. They should be able to find the answers to these

questions by reading the “About us” or corporate sections of the companies’ websites. Also,

since both companies are publicly-traded, the most recent annual reports should be publicly

available. Corporate websites and annual reports usually include the company’s mission

statement—this concept could also be included in this assignment. This activity makes a good

group assignment, and lends itself to a short presentation by the students, especially if Internet

access is available in the classroom.

2. Imagine you are a marketer responsible for the iPod marketing strategy. How would you

classify the iPod as a product? How would you segment the market for the iPod? Describe the

target market for the iPod.

This assignment also requires some online research and can be assigned as a short written

assignment, or a short in-class presentation. Have the students look up, on search engines, online

magazines, and Apple’s website, the company’s description/classification of the iPod. Market

segmentation is done by demographics, psychographics, geography, and behaviour (i.e. how the

product is used). To simplify this part of the question, ask the students to imagine two groups of

people (i.e. two market segments): those people who own, use, or would like to own/use an iPod,

and those who don’t. Then have them describe, in terms of the four bases of segmentation, those

two groups of people. The description of the target market comes from the group of people who

owns/uses an iPod.

3. Describe the positioning of Apple’s iPod versus the positioning of Microsoft’s PMC. What

other personal music playing devices are available on the market? How does their positioning

differ from the iPod and the PMC? Which device would you choose, as a consumer? Why?

Remind the students that positioning exists in the mind of the customer, and relative to the

competition. In describing the positioning of the iPod and the PMC they should use specific

terms, not vague adjectives like “higher” or “lower.” The rest of the question depends on the

current market situation and the students’ personal preferences as consumers.



Small Group Presentation Assignment (based on opening vignette)

This assignment is based on the chapter’s opening vignette, about Eukanuba pet food, and how

the brand differentiated itself by developing and marketing pet food for different breeds of dogs.

The assignment is designed to force students to practice their group work skills, and their

presentation skills. .The size and number of groups will depend on your class size. Give them 15

minutes to come up with a short presentation of their answer to the question, “Describe how

Eukanuba’s new marketing strategy affected their promotion strategy.” Students should go on

line and search for examples of the advertisements from the campaign.

Individual Written Assignments (Based on Marketing@Work Features)

These assignments are designed for individual written work, and are based on the Marketing at

Work segments in each chapter. Each chapter’s Marketing at Work segments are short, real-

world marketing cases, and are intended to illustrate the academic theory presented in the

chapter. These assignments are likewise short, written assignments that can assigned in advance

of the class, or that can be done in 15-20 minutes at the end of the class and collected, perhaps as

a participation exercise if participation grades are given in the class.

M@W 2.1 Health Insurance for our Furry Friends (p. 68) Describe how VPI segmented the

market. What market does the company target? Is health insurance for pets a niche market? Why

or why not? How might VPI describe its positioning against other competing pet health

insurance providers?

M@W 2.2 The ROI of doing good: cause marketing generates profits while saving the

planet (p. 79) Research the latest on the honeybee problem. Do you think the problem still

exists, and that companies like Häagen-Dazs should still be influenced by it, when developing

their marketing strategies?

Think-Pair-Share

Direct the students to working in pairs and take turns asking and answering the following

questions. For example, Student A asks Student B question 1; Student B answers question 1, then

asks Student A question 2, and so on. Give the students five minutes to form answers to each

question, then ask the questions of the class, and choose students to share their answers with the

larger group. The teaching purpose of this activity is to focus the students’ attention on their own

experiences with the marketing concept being studied, as well as to improve their listening and

reporting skills. Tell the students before they begin the exercise that they may be called upon

afterwards to report, orally, to the rest of the class, their partner’s answers. When conducting the

group discussion at the end of the activity, be sure to phrase your question in this manner: “Jerry,

when did Elaine say was the last time she was completely satisfied, as a consumer, with a

product she purchased, and what was the product?”

1. Tell me about a company that you are familiar with. How would you describe the

company’s business strategy?

2. How would you describe the marketing strategy of this college or university?



3. What is a target market, and why is it important for marketers to define and describe it?

4. Describe the positioning of Grassroots.

5. Why should a firm conduct a marketing audit?


This short case assignment requires the students to do some online research, and therefore must

be given in advance of any required presentation, written assignment, or discussion. The case

described in the following paragraph features a real organization, product, or situation. This case

is not included in the text, and is presented here as a supplemental activity.

Several established soft drink and beer bottlers are betting that the drink you will demand will be

one of the growing number of “energy” drinks now available on the market. All of these new

energy drinks promote vitamins, pep, health, flavor, and an energy boost. Distribution outlets are

as varied as grocery stores to bars and nightclubs. Do Canadians really have a “lack of vigour?”

If one is to believe the commercials for the energy drinks, one would have to say yes. Are these

products really energy drinks or just over-caffeinated fruit juice? Some marketers believe that

what the consumer is really buying is a social statement about lifestyle and health. In other

words, psychographics not just taste preferences are what might be most important with this

highly popular drink niche. “Power your body” and “Energy Kick” are not usually terms

associated with traditional soft drinks or beer. Serious attention is being paid to this category of

beverages. Are you ready to Power Up?

Your assignment: Choose one energy drink to examine. Buy it, and drink it. Visit the website of

the company that markets it. Then, describe the company’s business and marketing strategy, in

one sentence. What markets are being targeted by this drink? What position would this drink

occupy on the BCG portfolio analysis grid? How does this product match the manufacturer’s

mission statement?

Documents

Instructor’s Resource Manual - Frat Stock...instructor, have read the relevant chapter in the textbook before using the suggestions in this manual to teach that chapter. In other