Chapter 1 Defining Marketing for the 21 st Century key chapter concepts: what is marketing? who markets? key customer markets? how is marketing done? assignments: 1) what is marketed? examine a company's public relations messages, their television advertising, Internet advertising, and printed messages. 2) marketers and prospects? visit some companies' Web sites to see if they feel the company is responding to the changes in marketing today, namely, customer-orientated marketing.
Chapter 1 Defining Marketing for the 21 st Century key chapter concepts: what is marketing? who markets? key customer markets? how is marketing done? assignments: 1) what is marketed? examine a company's public relations messages, their television advertising, Internet advertising, and printed messages. 2) marketers and prospects? visit some companies' Web sites to see if they feel the company is responding to the changes in marketing today, namely, customer-orientated marketing.
Chapter 1 Defining Marketing for the 21 st Century key chapter concepts: what is marketing? who markets? key customer markets? how is marketing done? assignments: 1) what is marketed? examine a company's public relations messages, their television advertising, Internet advertising, and printed messages. 2) marketers and prospects? visit some companies' Web sites to see if they feel the company is responding to the changes in marketing today, namely, customer-orientated marketing.
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Chapter 1
Defining Marketing for the 21 st Century
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
Assignments:
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 companys 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 communicatedvisually 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 Professors on the Go
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marketing. Suggestions include firms like: Rollerblade and Ben and Jerrys 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 st
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 Veronicas Marketers Aim New Ads at Video iPod Users, Wall Street Journal, January 31, 2006 and Li Yuan and Brian Steinbergs 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 DeliveryWhat Companies Must Become? 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) Analysis Goal Formulation Strategic Formulation Porters Generic Strategic Strategic Alliances Program Formulation And Implementation Feedback And Control Product Planning: The Nature And Contents Of A Marketing Plan
Assignments:
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. Professors on the Go
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3) Defining the Corporate Mission Students should be encouraged to review selected companys 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 companys 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
Assignments:
1) Internal Records and Marketing Intelligence
Using information from the web like FEDSTATS and the U.S. Census Bureau, have the students 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 Professors on the Go
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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 trendWhat 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. Professors on the Go
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Chapter 4
Conducting Marketing Research
Key Chapter Concepts:
Marketing Research System Effective Marketing Research Involves Six Steps. Focus Group Research Survey Research Behavioral Data Qualitative Measures Questionnaires 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
Assignments:
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 chapter.
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 manipulation. Professors on the Go
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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 Someones Brain, Marketing News, May 1, 2006, p. (missing page number) Louise Witt, Inside Intent, American Demographics (March 2004): 3439; 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, Latan 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 Donts, the author lists 12 ways to phrase questions that will maximize unbiased responses. Prepare a set of questions (1012 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 Loyalty 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 Customers
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 CRM
Assignments:
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 Professors on the Go
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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 companys 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 chapters 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 students 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 (jdpower.com) 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? Professors on the Go
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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 Motivation Herzbergs Theory Maslows Theory Perception Selective Attention Selective Distortion Selective Retention Subliminal Perception Learning Memory Memory Processes: Memory Processes: Retrieval The Buying Decision Process: The Five-Stage Model Problem Recognition Information Search Information Sources Search Dynamics Evaluation Of Alternatives Beliefs And Attitudes Expectancy-Value Model Purchase Decisions Non-Compensatory Models Of Consumer Choice Intervening Factors Post-Purchase Behavior Post-Purchase Satisfaction Post-Purchase Use And Disposal Post-Purchase Actions Other Theories Of Consumer Decision- Making 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 Process
Assignments:
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 Professors on the Go
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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 purchaseas compared to the definitions stated in the chapter by Stanfords 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. Professors on the Go
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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 Buying Center Targeting The Purchasing/Procurement Process Stages In The Buying Process Problem Recognition General Need Description And Product Specification Risks and Opportunism Supplier Search E-Procurement Lead Generation Supplier Selection Proposal Solicitation The Number Of Suppliers Order-Routine Specifications Performance Review Managing Business-To-Business Customer Relationships The Benefits Of Vertical Coordination Institutional And Government Markets
Assignments:
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 universitys Central Purchasing or Procurement department (you may have to clear this with your administration before assigning). Have the students conduct interviews with Professors on the Go
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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 Donaths 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 companys 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 GEs Medical SystemsWeb site (www.gehealthcare.com/). 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 Gender Income Social Class Psychographic Segmentation Behavioral Segmentation The Conversion Model Basis For Segmenting Business Markets Evaluating And Selecting The Market Segments Effective Segmentation Criteria Single-Segment Concentration Selective Specialization Product Specialization Market Specialization Full Market Coverage Differentiated Marketing Costs A) Segment-By-Segment Invasion Plans
Assignments:
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? Professors on the Go
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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 usefulthe 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 fortable 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 VALSsegmentation (www.sric-bi.com). 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? Professors on the Go
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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 Personalization Integration Internalization Leveraging Secondary Associations
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 brands 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 (www.brandchannel.com) and a) choose a brand listed and summarize the views regarding the brand as expressed by brandchannel.com or b) choose the papers icon and read and summarize one of the papers listed.
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 students 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 not.
5) Leverage Secondary Associations
In Seth Godins 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. Godins 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 STPSegmentation, Targeting, And Positioning Competitive Frame Of Reference Points-Of-Parity And Points-Of-Difference Points-Of-Difference Points-Of-Parity 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 Emergence Growth Maturity Decline
Assignments:
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 universitys station(s) in terms of positioning and differentiation strategy. What stage in the products 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 strategiesinclusion 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 Orientations Competitor-Centered Companies Customer-Centered Companies
Assignments:
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 possible.
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? Professors on the Go
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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 threat.
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 Porters 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 Porters 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)? Students 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 Differentiation 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 Guarantees
Assignments:
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 firms five product levels for its products. In their research, students should be challenged to discover the firms perception of the customers value hierarchy and total consumption system.
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 Firms 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 Programs: Intangibility Inseparability Variability Perishability 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 Well 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
Assignments:
1) Services are Everywhere
Using the information on marketing research covered in this text, ask the students to prepare a teaching SERQUALform to be administered in all the classes taught in your department. Professors on the Go
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This SERQUAL survey should focus on evaluating the students 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 dont 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 hospitals 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 customers 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. Professors on the Go
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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 Survival 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, Barter) Price Discounts And Allowances Promotional Pricing Differentiated Pricing Initiating And Responding To Price Changes Initiating Price Cuts Initiating Price Increases Reactions To Competitors Price Changes
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Assignments:
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. 173184, 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 marketers 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 companies. Professors on the Go
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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 NetworkA 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 Members Conditions Of Sale 1) Distributors Territorial Rights 2) Mutual Services And Responsibilities 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 Companys Business
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Assignments:
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 companys 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 wont 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 consumers 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:
Retailing
Types Of Retailers
The New Retail Environment
Marketing Decisions Target Market Product Assortment Procurement Services Store Activities And Experiences Communication Decisions
Private Labels The Private Label Threat Role Of Private Labels Wholesaling Market Logistics Trends In Wholesaling
Integrated Logistics Systems
Market-Logistics Decisions Organizational Lessons
Assignments:
1) Types of Retailers
Shophave 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 stores 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. Professors on the Go
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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 Dells distribution strategy based on the PLC of personal computers? Or is it a short-term tactical switch to boost sales?
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 Environment 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 Mix Advertising 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 Professors on the Go
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Assignments:
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 customers 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 selling.
2) Creative Strategy
The opening vignette of this chapter is about Doves advertising campaign featuring normal women. Either individually or in groups, have the students go to the Web site: www.campaignforrealbeauty.com 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 campaigns 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 Program 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 Effectiveness Deciding On Reach, Frequency, And Impact Choosing Among Major Media Types Alternative Advertising Options Place Advertising Product Placement Point-Of-Purchase 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 Results Assignments:
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 objectives.
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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 Word-Of-Mouth 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
Assignments:
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? Professors on the Go
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2) The Benefits of Direct Marketing
The direct market offering, according to the text, consists of five elementsthe 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 groups 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 salespersons 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? Professors on the Go
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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 Products Repositionings 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 Trial First Repeat Adoption Purchase Frequency Simulated Test Marketing Sales-Wave Research Controlled Test Marketing Test Markets Business-Goods Market Testing Commercialization The Consumer-Adoption Process Stages In The Adoption Process Factors Influencing The Adoption Process Characteristics Of The Innovation Organizations Readiness to Adopt Innovations Professors on the Go
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Assignments:
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?
Apples iPodand iPhonehas 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 Apple. Professors on the Go
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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 Licensing Joint ventures Direct investment Deciding on the marketing program Product adaptation Product invention Communications Price 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
Assignments:
1) Competing on an International Basis
The instructor is encouraged to challenge the students by assigning students to find their favorite products corporate offices. Examples may include Nestle, Nike, Suzuki, Nokia, Ben & Jerrys 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 todays 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. Professors on the Go
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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 www.cia.gov; www.ita.doc.gov, www.exim.gov, www.sba.gov, and www.bxa.doc.gov, 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.
Professors on the Go
Copyright 2012 Pearson Education, Inc. publishing as Prentice Hall
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 Sustainability 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
Assignments:
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.
Professors on the Go
Copyright 2012 Pearson Education, Inc. publishing as Prentice Hall
2) Social Responsibility
Some companies like the Newmans 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 Browns 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 st
Century.
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 firms 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.