Solution Manual for Marketing, 8th Edition

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Chapter 1-Overview of MarketingMarketing8th1Chapter 1Overview of MarketingTools for Instructors•Brief Chapter Outline•Learning Objectives•Extended Chapter Outline with Teaching Tips•Answers to End of Chapter Learning Aids•Chapter Case Study•Additional Teaching Tips•Connect ActivitiesBrief Chapter OutlineWhatIsMarketing?The Importance of Marketingover TimeHow Does Marketing Create Value, and How Do Firms Become More Value Driven?End of Chapter Learning AidsChapter Case Study:A Flood of Water Consumption ChoicesLearning ObjectivesLO1-1Define the role of marketing.According to the American Marketing Association, formally, marketing is the “activity, set of institutions,and processes for creating, capturing, communicating, delivering, and exchanging offerings that havevalue for customers, clients, partners, and society at large.But marketing has a prominent role in everyperson’s daily life, whether he or she is exchanging money for conventional products, exchangingpersonal information for services, or exchanging time for a cause that gives him or her a good feeling.Itincludes a vast range of stakeholders, including not just the firm and the customer but also othermembers of the supply chain, communities, and society as a whole.Furthermore, the foundation of allmarketing can be summarized in the four Ps, such that marketing defines the product, price, place, andpromotion that firms use to get their offerings into consumers’ hands.LO1-2Detail the evolution of marketing over time.Marketing has evolved from a production orsales-orientedapproach, in which firms told people what theycould and should buy, to a market-and value-oriented perspective.In this more recent view, firms lookto their markets to tell them what they need to product and provide, in awaythat creates value for themand their customers.LO1-3Describe how marketers create value for a product or service.Valuestems from at least four main activities that value-driven marketers undertake and are reinforcedthroughout the book:•Addingvalue,suchthattheyleveragevariouselementsofmarketingandworktobuildrelationships with partners and customers to ensure that they introduce their product, service, orideato the marketplace at just the place and time that customers want it.

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Chapter 1-Overview of MarketingMarketing8th2•Marketing analytics, which companies use to gather vast amounts of information about customersand competitors, then analyze it and share it across their own organization and with partner firms.•Social and mobile marketing, to take advantage of new technologies and connect with customersusing the latest social media channels.•Ethical and societal dilemmas, such that firms engage in conscious marketing that takes intoaccount the benefits and costs of their actions for all stakeholders.Extended Chapter Outlinewith Teaching TipsI.What Is Marketing?A.Marketing Is About Satisfying Customer Needs and WantsB.Marketing Entails an ExchangeC.Marketing Creates Value through Product, Price, Place, and Promotion Decisions1.Product: Creating Value2.Price: Capturing Value3.Place: Delivering the Value Proposition4.Promotion: Communicating the Value PropositionD.Marketing Can Be Performed by Individuals and OrganizationsE.Marketing Affects Various StakeholdersProgress Check:Several questions are offered for students to check their understanding of coreconcepts.1.What is the definition of marketing?Answer: Marketing is the activity, set of institutions, and processes for creating, capturing,communicating, delivering, and exchanging offerings that have value for customers, clients,partners, and society at large2.Marketing is about satisfying _____ and _____.Answer: Marketing is about satisfying needs and wants.3.What are the four components of the marketing mix?Answer: The four components of the marketing mix are product, place, price, and promotion.4.Who can perform marketing?Answer: Both individuals and organizations can perform marketing as marketing can entail B2C,B2B, and C2C.

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Chapter 1-Overview of MarketingMarketing8th3II.The Importance of Marketing over TimeA.Marketing Helps Create Value1.Production-Oriented Era2.Sales-Oriented Era3.Market-Oriented Era4.Value-Based Marketing EraProgress Check:Aquestionisoffered for students to check their understanding ofmarketing over time.5.What are the various eras of marketing?Answer: The eras of marketing include the production era, sales era, market era, and value-based era.III.How Does Marketing Create Value, and How Do Firms Become Value Driven?A.Adding ValueB.Marketing AnalyticsC.Social and Mobile MarketingD.Ethical and Societal DilemmaProgress Check:Several questions are offered for students to check their understanding of coreconcepts.1.Does providing a good value mean selling at a low price?Answer: Value-based marketing isn’t just about low price; it is also about creating strong productsand services.2.How are marketers connecting with customers using social and mobile media?Answer: Marketers are steadily embracing new technologies, such as social and mobile media, toallow them to connect better with their customers and thereby serve their needs.Answers to End of Chapter Learning AidsMarketing Digitally1.Visit the websites forHydro Flask(www.hydroflask.com),Yeti(www.yeti.com), andNalgene(www.nalgene.com)bottles. What value do these manufacturers provide customers? How aretheir value propositions different?

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Chapter 1-Overview of MarketingMarketing8th4Student responses will vary, and faculty should review the websites to verify currency.Hydro Flashfocuses on its interpretation ofsimplicity throughfun, adventure, and the outdoors.Yeti’s mission is to“build the cooleryouuse every day if it existed.”Nalgene focuses on the fact that their produce is made of50% recycled content.The three companies differ in the way they view the benefits of the product.Hydro Flash views the psychological benefits of their products by stressing the adventures consumerscan enjoy while using their products; whereas, yeti looks at the practical side in the variety of placeswhere it makes sense to use their product.Nalgene uses an appeal to those who are concerned aboutthe sustainability of the environment.2.Go toInstagram.com andnavigate to the“AboutUs”section. What isInstagram’smission?How could a marketer useInstagram, and what other social media tools could they use? Whatare the drawbacks a marketer might face when usingInstagramto communicate with theircustomers?Mission: Facebook's mission is tocapture and share the world’s moments.Marketers can use Instagram by encouraging users to incorporate #tags into their postings to promote thecompany.For marketers with a budget,Instagramoffersfiltersto reachto promote the location where thepicture was taken.They also offer the Instagram logo and other assets for use on websites, in storewindows, or other marketing materials.Facebook and TicTok are other social media platforms that canbe. Used.One drawback a marketermightface when using Instagram to communicate with theircustomers is that they have no control over the types of pictures the user might take and the image theymight portray.3.Visit the site of any company from which. You receive some free service (e.g. Facebook,Spotify, TikTok, Twitter, Gmail). Check you setting to see what information to have given thecompany to exchange for theservice. Is the value of the information you have providedequivalent to the value the company provides you with as a service?Students answers will vary greatly depending on the service they visit and the privacy settings they have.Many people set up these services without really checking what information they don’t have to share andwhat they do. Those who blindly set up these services without investigating the restrictions they can givein the privacy settings.The looser the privacy settings, the less likely students will believe that theexchange is worth it.Another factor that comes into play is that many times students lack the lifeexperience to realize that negative ramifications that can come with sharing too much information so theymay not realize how much they are giving away.Marketing Applications1.Do you know the difference between needs and wants? When companies that sellcoffeedevelop their marketing strategy, do they concentrate on satisfying their customers’ needs orwants? What about a utility company, such as the local power company? A humanitarianagency, such as Doctors without Borders?Needs are essential items that individuals cannot live without. These include necessities like shelter,health care, basic food,and basic transportation.Wants are products thatcustomerswould like to haveand view as improving their quality of life, likebrand-nameclothing, computers, and luxury vehicles.This question is intended to make students think about the difference between customer needs andwants, as well as how companies might address one or both. It also challenges students to explorewhether different types of companies address the needs and wants of consumers differently. Companies

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Chapter 1-Overview of MarketingMarketing8th5thatsellcoffeemostlikelyconcentrateonsatisfyingcustomers’wants,astheirproductsarenotconsidered essential items.Firms also must respond to competitors’ offerings. An electric utility companymight have a strong imperative to satisfy customers’ needs for reliable electricity but not focus as muchon customer wants because it faces little market competition. Student responses should reflect anawareness of considering both consumers’wants and needs.Humanitarian agencies, like Doctorswithout Borders, are satisfying customers’ needs, especially their basic needs for health care andmedicine.2.People can apply marketing principles to finding a job. If the person looking for a job is theproduct, describe the other three Ps.Students should define the remaining Ps in the marketing mix and better define the product P. In addition,answers should consider how a person seeking employment can offer value to a potential employer andhow employers might add value to prospective employees. Responses should answer the followingquestions.What employer needs and wants can the applicant offer to fulfill (product)?What will it cost the potential employer tohirethe applicant (price)?How will the employer promote the job to the pool of possible applicants (promotion)?Where and when will the job be available (place)?3.What is the difference between a good and a service? When you buy a music subscription onSpotify, are you buying a good or service? Would your answer be different if you bought anMP3 album on Amazon?Goods are items that you can physically touch, whereasservices are intangible customer benefits thatare produced by people or machines and cannot be separated from the producer.Students should understand that in terms of the creation of each, they are both “created” using rawmaterials that are “processed” into a finished output.4.One of your friends was recently watching TV and saw an advertisement that she liked. Shesaid, “Wow that was great marketing!” Was the ad,in fact,marketing?Students frequently associate advertising withmarketing butfail to recognize that advertising is just onepartofallthefunctionsencompassedbymarketing.Studentresponsesshouldacknowledgethatmarketing is made up of product, price, place, and promotion decisions and advertising is one of thepromotional tools available to marketers.5.Using the four Ps, discuss howHydro Flaskcreates value for customers with theirwaterbottles.•Products:Vacuum insulated stainless steel water bottles•Place:Hydro Flask water bottles are available online and at a. variety of retailers nationwide includingWalmart, Urban Supply,and Simple modern•Promotion:The company tends to stay away from more traditional advertising to promote its bottles.Instead they promote through enter-to-win campaigns, discounts, and other giveaway promotions.•Price:Generally the bottles are $44.99, but price can vary based on the retail outlet6.Explain how a $45 Timex watch and a $10,000 Rolex watch deliver value to respective targetmarkets? Which factors account for the dramatic difference in watch prices?

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Chapter 1-Overview of MarketingMarketing8th6Both Timex and Rolex watches meet the basic need of providing the time to consumers. Both are wornon the wrist and deliver the time, and often the date, in a readily-available format. Timex has a massdistribution channel strategy and a low price point that allows multiple segments of consumers to be ableto afford and use this product. Timex has also built a reputation for reliable, tough watches that can beused by active people or consumers that work in harsh environments. Timex wearers are those lookingfor an affordable, durable watch that does its job.Rolex watches are hand-crafted, built to meticulous standards, and often contain precious gems ormetals. The watches incorporate the latest in technology and are known to become collectors’ items.Wearing this watch convey elite status and the watches are recognizable as a luxury item. Rolex wearersare consumers who can afford one of the best watches money can buy and desire the craftsmanship andtechnical precision present in a handmade watch. They want a watch that conveys to the world more thanjust the day or time.7.Assume you have been hired into the marketing department of a majorconsumer productsmanufacturersuch as Nike. You are having lunch with some new colleagues in otherdepartments—finance, manufacturing, and logistics. They are arguing that the company couldsave millions of dollars if it just got rid of the marketing department. Develop an argument thatwould persuade them otherwise.This scenario forces students to think about the purpose and value of marketing in an organizationalcontext and allows for a variety of justifications. For example, a student could use an internal or externalperspective and argue that finance, manufacturing, and logistics tend to worry less about the customerand more about internal processes, whereas the marketing and sales functions constantly focus outwardon the customers the company serves. Using this argument, the student might question whether otherdepartments are willing or prepared to take on customer relations and develop an understanding of howand why customers buy the company’s product or service. Another argument might simplyquestionhowcustomers will even know about the company’s products if the marketing department doesn’t broadcasttheir features, benefits, and value outward.8.Why do marketers likethose atApplefind it important to embrace societal needs and ethicalbusiness practices? Provide an example of a societal need or ethical business practice thatAppleis addressing.This question centers on the role of social and ethical issues in a marketing context. Students mightmention efforts such as keeping the environment clean and offering fair wages to workers. For example,Appledevelops multiple green initiatives. Some examples:•The Apple Supplier Code of ConductoOur Supplier Code of Conduct outlines our high standards for creating safer workingconditions, treating workers fairly, and using environmentally responsible practices. It’sone of the strictest in our industry and often requires practices above and beyond locallaw.TocomplywiththeCodeofConduct,allsuppliersmustmeetthestringentrequirements in our Supplier Responsibility Standards.•Clean Energy ProgramoIn 2015, we launched our Clean Energy Program to reduce carbon emissions across oursupply chain, which makes up nearly three-quarters of Apple’s total carbon footprint. InChina alone, we’re working with our suppliers to install more than 2 gigawatts of cleanenergy.Quiz Yourself(answers are bolded)

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Chapter 1-Overview of MarketingMarketing8th71. Which of the followingisnota function of marketing’s value creation process?a.Capturing valueb.Delivering value.c.Communicating value.d.Exchanging value.e.All of these functionsarepart of marketing’s value creation process.2.Value creation is the central activity of marketing. Which is not a benefit to the frim from engaging invalue creation and the ongoing process of identifying value-adding options for consumers?a.The firm is able to satisfy consumers’needs.b.The firm is able to expand.c.The firm is able to build brand loyalty.d.The firm is able to sell fewer products.e.All of these ae benefits to the firm.Chapter Case Study:A Flood of Water Consumption Choices1.How does marketing impact the consumption of water, and howhasthis impact changedsince the mid-20thcentury?Students answers will vary, but they should include at least one of the following: as different consumergroups have diverse needs, marketers have expanded their offerings and thus provided more customervalue. A wide range of companies produce a variety of products offered at distinct price points withunique promotions and found in expected places.Since the mid-20th century, these actionshaveaddedto the expansion of the consumption of water.2.Describe three distincttarget markets fordrinkingwater. How does marketing createvalue foreach of these segments using the four Ps:product, price, place, and promotion?Answerswill varyasthisquestionisasking thestudentsto identifydifferenttargetmarkets.Forexample, first,foroutdoorenthusiasts,marketersofferstainlesssteelcontainersthatcanwithstandextreme temperatures and powerful impacts. These items are priced at a slight premium due to premiummanufacturingcosts.Theseitemsaresoldatoutdoorstores,alongsideoutdoorgearandhikingboots.These items are advertised in outdoor magazines and demonstrated at outdoorenthusiasts’tradeshows.Second, for urban commuters, marketers offervacuum insulation technology for max temperatureretention.These items are priced at acompetitive levelto be appealing to thiscost-conscioustargetmarket.These items are sold at general and discount retailers where these commuters do most of theirshopping.These items are advertised with banner ads alongsidesearch results for urban transportationinformation.Finally,forthefashion-conscious,marketersofferchicdesignsthatcanbeusedincustomer’s style choices. These items are priced at a high premiumin alignment with this customer’sother fashion choices.These items are sold athigh-end clothing and shoe stores wherefashion-forwardcustomers shop.These items are advertised with banner ads alongside search results for fashion choicesand style recommendations.3.Howhaschangingsocietalvaluesimpactedthewayinwhichwaterispurchasedandconsumed?

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Chapter 1-Overview of MarketingMarketing8th8Students answers will vary, but they should includesustainabilityin their answer.Recent changesreflecting societal and ethicalnorms have prioritized sustainability.These changeshaveledto differentpricing structures. Conventional spring water in a single-use plastic bottle is quite inexpensive; however,some are willing to pay $60 to obtain a sustainably produced, reliable, safe water bottle that they can usefor years.They also might seek water that has been filtered or otherwise certified safe, which constitutesa growing concern. The products thus have shifted and expanded to meet consumers’diverse needs.4.How has the manner in which you consume water changed in the past five years?Answers will vary as this question is asking the students to identifytheir own behavior..Additional Teaching TipsIn this chapter, the goal is to provide an overview of marketing and encourage students to think about thespecific aspects of themarketing mix.Placeis one of the most difficult concepts for students because it is largely invisible to them asconsumers. They touch hard goods, experience services, view and hear promotions, and pay for whattheybuy,butitcanseemthatproductsalmostappearmagically.Onerecenttrendamongenvironmentally consciousconsumers is to seek out products produced within a 100-mile radius of theirhometowns. Buying these products reduces costs and detrimental environmental effects by reducingemissions associated with transportation and storage. Students should visit local grocery markets, identifygoods, and investigate how far the products traveled (and by what means) to reach the store’s shelves.From this experience, a rich discussion of both distribution decisions and marketing’s impact on societycan evolve.To make theeras of marketingclear to students, divide the class into groups with each group assigned toa specific era. Ask the students to identify a business that adheres to their assigned era in terms of itsbusiness philosophy and approach. They should present the business to the class with evidence of thebusiness’s philosophy. Each brief presentation should include an assessment of whether the orientationis appropriate to the business given its competitive environment, target audience, and positioning strategyand if not, what orientation would be best.

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Chapter 1-Overview of MarketingMarketing8th9Connect ActivitiesActivityTypeLearning Objectives 01-010203Zipcar: Creating Value in the MarketplaceCase AnalysisXXXThe Marketing Mix: Travel Goods and ServicesClick & DragXThe Marketing Mix: Travel Goods and ServicesKeyboardNavigableXJeansVideo CaseXXValue: The Bottled Water IndustryVideo CaseXXDelivering Value at Red MangoVideo CaseXXDunkin’ Donuts: Delivering on the Brand PromiseVideo CaseXXFrom Beans to Pralines: The Global Chocolate MarketCase AnalysisXXXMaking a Market: Vosges Haut-ChocolatVideo CaseXXISeeIt Video Case: Value Creation Through theMarketing MixVideo CaseXMarketing at The Gluten Free Bar (GFB)Video CaseXXXA Flood of Water Consumption ChoicesCase AnalysisXZipCar: Creating Value in the Marketplace▪Activity Type:Case Analysis▪Learning Objectives:01-01, 01-02, 01-03▪Difficulty:Medium▪Activity Summary:This case describes Zipcar’s operations, focusing on how it creates value.Students answer questions relating the case to chapter concepts.Activity•Introduction:Nearly a decade ago, the founders of Zipcar decided to bring the car-sharingexperience to the United States. Since then, Zipcar has developed the gold standard by offering itsmembers 24/7 access to thousands of cars around the world and creating a revolution in the waymany think about alternate transportation.This activity is important because understanding the marketplace, especially consumers' needs andwants, is fundamental to marketing success.The goal of this exercise is to demonstrate how marketing focuses on creating value for customers,clients, partners, and society at large.▪Concept Review:Understanding the marketplace, and especially consumers’ needs and wants, isfundamental to marketing success. Marketing focuses on creating value for customers, clients,partners, and society at large.Follow-up ActivityZipcar has a special program targeted at universities. Ask the students the following questions:▪How might students’ wants and needs differ from those of Zipcar customers in general?

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Chapter 1-Overview of MarketingMarketing8th10▪What kind of marketing (B2C, B2B, C2C) is Zipcar engaging in when it works with universities to getZipcar locations approved on campus?▪How can Zipcar create value for university administrators, such that they would be interested inhaving Zipcar locations on campus?After discussing these points, visit the Zipcar website and look at the “for universities” tab. Note the twocolumns addressing how Zipcar creates value for two different audiences: university administrators andstudents.The Marketing Mix: Travel Goods and Services▪Activity Type:Click &Drag▪Learning Objectives:01-01▪Difficulty:Medium▪Activity Summary:The student is presented with eight marketing activities performed by two travelcompanies—one that manufactures products, and one that offers services. Students are asked toclassify the activities according to both the marketing mix element and the product type (goods orservices) it represents.Activity•Introduction:Two travel-oriented companies—one a producer of goods, the other a serviceprovider—have different marketing mixes. In this activity, you categorize a set of statements abouteach company's marketing activities according to the four Ps (product, price, place, and promotion).This activity is important because one of the core aspects of marketing is to create value forcustomers. Marketing traditionally has been divided into a set of four interrelated decisions known asthe marketing mix, or four Ps: product, price, place, and promotion. Two travel-oriented companies—one a producer of goods, the other a service provider—have different marketing mixes.The goal of this exercise is to recognize that companies make different marketing mix decisions tooffer value.In this activity, you will categorize a set of statements about each company's marketingactivities according to the four Ps (product, price, place, and promotion).▪Concept Review:Marketing traditionally has been divided into a set of four interrelated decisionsknown as the marketing mix, or four Ps: product, price, place, and promotion.A sentence of explanation is offered for each of the rectangles to the left when the student rolls themouse pointer over it.Follow-Up Activity▪In small groups, have students select a company/brand from which they buy products or services.Then, have them fill in examples of marketing activities that fit into each of the four Ps.The Marketing Mix: Travel Goods and Services-Alternative▪Activity Type:Keyboard Navigable Version of the Drag and Drop Above▪Learning Objectives:01-01▪Difficulty:Medium▪Activity Summary:The student is presented with eight marketing activities performed by two travelcompanies—one that manufactures products, and one that offers services. Students are asked to

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Chapter 1-Overview of MarketingMarketing8th11classify the activities according to both the marketing mix element and the product type (goods orservices) it represents.Activity•Introduction:Two travel-oriented companies—one a producer of goods, the other a serviceprovider—have different marketing mixes. In this activity, you categorize a set of statements abouteach company's marketing activities according to the four Ps (product, price, place, and promotion).This activity is important because one of the core aspects of marketing is to create value forcustomers. Marketing traditionally has been divided into a set of four interrelated decisions known asthe marketing mix, or four Ps: product, price, place, and promotion. Two travel-oriented companies—one a producer of goods, the other a service provider—have different marketing mixes.The goal of this exercise is to recognize that companies make different marketing mix decisions tooffer value.In this activity, you will categorize a set of statements about each company's marketingactivities according to the four Ps (product, price, place, and promotion).▪Concept Review:Marketing traditionally has been divided into a set of four interrelated decisionsknown as the marketing mix, or four Ps: product, price, place, and promotion.A sentence of explanation is offered for each of the rectangles to the left when the student rolls themouse pointer over it.Follow-Up Activity▪In small groups, have students select a company/brand from which they buy products or services.Then, have them fill in examples of marketing activities that fit into each of the four Ps.Jeans▪Activity Type:Video Case▪Learning Objectives:01-01, 01-02▪Difficulty:Medium▪Activity Summary:This video case discusses the market for blue jeans, with its wide price rangeand many different sets of customer needs and wants. After the video ends, students are askedquestions about the video and related course concepts.Activity▪Introduction:Marketing involves satisfying the needs and wants of consumers. However, not allconsumers have the same needs and wants. The marketing of blue jeans is a good example of howmarketers develop a different marketing mix to suit the needs of different consumers.▪Concept Review:First invented in the United States, blue jeans represent everything American. Howblue jeans went from their humble beginnings to the height of high fashion is a marketing successstory. There are dozens of brands, ranging from the $10 pair to the $1,000 pair, with numerousofferings between the two extremes to meet the needs of every type of consumer. Marketers mustunderstand what consumers value in order to manage the marketing mix to deliver the right set ofbenefits to different consumers.▪Video:The video is presented to the student below the introductory information. The video playsembedded on the page, after which questions are presented.

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Chapter 1-Overview of MarketingMarketing8th12Follow-Up ActivityIn groups or individually, ask students to:1.List all the brands of jeans they can think of, from basic discount brands to the hip designerbrands.2.Use the Internet to find typical prices for a pair of jeans in each brand.3.Enter the prices into a spreadsheet and generate a scattergram of the prices. (You can useoptions to have each point labeled by its brand name.)Then discuss: How could this scattergram be useful to marketers of each brand? Possible answers:▪It shows the overall price range so a brand can tell if its price is unusually high or low.▪It MIGHT indicate which brands are competing head-to-head (the ones whose dots on thescattergram are closest together), though it’s important to note that pricing is only one dimension onwhich brands can be similar or different. They may be targeting different age or sizeranges oraimingto establish different brand images.Value: The Bottled Water Industry▪Activity Type:Video Case▪Learning Objectives:01-01, 01-02▪Difficulty:Medium▪Activity Summary:This video case traces the evolution of the bottled water industry. After the videoends, students are asked questions about the video and related course concepts.Activity▪Introduction:Bottled water companies create value for customers even though they sell a naturalresource that is free and abundant. Water was first positioned as a premium product that indicatedstatus and sophistication. Since then, soft drink companies with large distribution networks, such asPepsiCo and Coca-Cola, have marketed bottled water at lower prices.This activity is importantbecause all marketers must consistently find ways to integrate their different functions into customervalue.▪Concept Review:The American Marketing Association states that marketing is “an organizationalfunction and a set of processes for creating, communicating, and delivering value to customers andfor managing customer relationships in ways that benefit the organization and its stakeholders.”Thegoal of this exercise is to demonstrate your understanding that marketing is a multifacetedfunction.Although marketing is a multi-faceted function, its fundamental purpose is to create value bydeveloping a variety of offerings, including goods, services, and ideas, to satisfy customer needs.▪Video:The video is presented to the student below the introductory information. The video playsembedded on the page, after which questions are presented.Follow-Up ActivitiesHold a group discussion—or a structured debate, with students assigned to argue a particular position—on the ethics of the bottled water industry. Some potential sources:Summary of the issues from environmental and clean water advocacy groups:▪http://www.nrdc.org/water/drinking/qbw.asp-Natural Resources Defense Council. Addresses bothwater safety and environmental impact

Solution Manual for Marketing, 8th Edition - Page 14 preview image

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Chapter 1-Overview of MarketingMarketing8th13▪http://thewaterproject.org/bottled_water_wasteful-from The Water ProjectHow bottled water brands are trying to address concerns:▪http://www.prnewswire.com/news-releases/pepsicos-aquafina-launches-the-eco-fina-bottletm-the-lightest-weight-bottle-in-the-market-61940397.html-a press release from Pepsi about the AquafinaEco-Fina® bottle.▪http://www.dasani.com-Dasani’s statement about its recycling efforts. Click on “DASANI Initiatives.”▪http://www.evian.com/en-us-Evian’s website contains severalsections addressing concerns (“evianand your health” discusses water quality;“evian and the environment” discusses various initiativesrelated to environmental protection). Also, showone of the Evian Babies ads.https://www.youtube.com/watch?v=XQcVllWpwGs&list=PL9F5EBE51067E2A88isprobably Evian’sbest known ad, featuringthe Roller Babies. How might this ad,with its use of babies,help to combatthe view of bottled water as an unhealthy and environmentally undesirable product?▪http://blogs.ei.columbia.edu/2009/08/11/%E2%80%9Cethical%E2%80%9D-bottled-water-companies-Discusses strategies of Ethos water and others selling “ethical” bottled water.Delivering Value at Red Mango▪Activity Type:Video Case▪Learning Objectives:01-01, 01-02▪Difficulty:Medium▪Activity Summary:This video reviews Red Mango’s marketing mix and its approaches to valuecreation. After the video ends, students are asked questions about the video and related courseconcepts.Activity▪Introduction:Founder Dan Kim opened the first U.S.-based Red Mango in Los Angeles in 2007.Hequickly expanded, and there are currently more than 200 locations in 27 states, plus three locationsoutside the U.S.Red Mango has successfully combined a healthy product (frozen yogurt) with cool,fun shops to hang out in. Red Mango uses 100% all natural, non-fat or low-fat kosher, and gluten-freefrozen yogurt fortified with probiotics. It has expanded its menu to include fresh fruit smoothies,parfaits, and probiotic iced teas. Red Mango was named the number one smoothie and frozen yogurtchain in America in Zagat’s 2011 National Chain Restaurants Survey. The following video illustrateshow Red Mango delivers superior value to customers.▪Concept Review:This activity is important because you must understand that marketing strivesto create value in many ways. If marketers are to succeed, their customers must believe that thefirm’s products and services are valuable; that is, they are worth more than they cost. Valuerepresents the relationship of benefits to costs. Marketers deliver value through the marketingmix—the 4 Ps: product, price, place, and promotion. Firms become value driven by sharinginformation, balancing customer benefits and costs, concentrating on building long-term relationswith loyal customers, and creating connections with customers by using social and mobilemedia. To achieve this, marketers must understand customers' needs and wants. The goal ofthis activity is to demonstrate your awareness that successful marketing also requires thoughtfulplanning, with an emphasis on the ethical implications of any of those decisions on society ingeneral.▪Video:The video is presented to the student below the introductory information. The video playsembedded on the page, after which questions are presented.

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Chapter 1-Overview of MarketingMarketing8th14Dunkin’ Donuts: Delivering on the Brand Promise▪Activity Type:Video Case▪Learning Objectives:01-01, 01-02▪Difficulty:Medium▪Activity Summary:This video case discusses the overall strategy Dunkin’ Donuts uses to build itsbrand and create value for customers. After the video ends, students are asked questions about thevideo and related course concepts.Activity•Introduction:For more than sixty years Dunkin' Donuts has been known for its donuts, but recentlythe company has increased its focus on coffee, responding to the growing popularity of coffee in theUnited States. This activity is important because it shows how Dunkin' Donuts uses the four Ps tohelp differentiate its coffee brand from that of its many competitors.The goal of this exercise is for you to gain a better understanding of how firms develop strategiesbased around the four Ps.▪Video:The video is presented to the student below the introductory information. The video playsembedded on the page, after which questions are presented.Follow-Up Activity▪Discuss how Dunkin’ Donuts uses its strategy to differentiate itself from its major competitors in theCoffee and Breakfast marketplace. Some points to consider:oDunkin’ Donuts focuses on good value at a reasonable price, mixing coffee and food.oStarbucks focuses more on quality to justify its high price, and has a stronger focus on coffeedrinks, with food available but not a primary focus.oMcDonald’s offers food at all times of the day in addition to its McCafé offerings. It has thousandsoflocations andkeeps a strong focus on low price and fast service.From Beans to Pralines: The Global Chocolate Market▪Activity Type:Case Analysis▪Learning Objectives:01-01, 01-02, 01-03▪Difficulty:Medium▪Activity Summary:Students read a case reviewing strategies adopted by different chocolate brands,and then answer questions requiring them to apply the six core aspects of marketing to what theyhave read.Activity•Introduction:The worldwide chocolate market is huge, with cocoa bean growers spanning threecontinents, processors located all over the world, and multiple chocolate brands serving thepreferences of different consumers. This activity is important because it gives you a solid “big picture”view of the scope of marketing via the chocolate industry.

Solution Manual for Marketing, 8th Edition - Page 16 preview image

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Chapter 1-Overview of MarketingMarketing8th15The goal of this exercise is to test your understanding of the six core aspects of marketing byapplying these concepts to the global chocolate market.Follow-Up Activity•Students might enjoy learning about Dr. Dan Ariely’s “Hershey Kiss Experiment,” in which studentswere offered a Lindt truffle or a Hershey kiss. When the truffle cost 26 cents and the kiss cost 1 cent,equal numbers of students chose each; when the truffle cost 25 cents and the kiss was free, the vastmajority chose the kiss.It illustrates the power of “FREE!”, and is discussed further in this article:http://danariely.com/2009/08/10/the-nuances-of-the-free-experiment/.Making a Market: Vosges Haut-Chocolat▪Activity Type:Video Case▪Learning Objectives:01-01, 01-02▪Difficulty:Medium▪Activity Summary:This video case presents a marketing mix for a small brand that seeks todifferentiate itself through luxury and innovation.After the video ends, students are asked questionsabout the video and related course concepts.Activity•Introduction:Vosges Haut-Chocolat is a chocolate brand seeking to make consumption of theirchocolate a luxury experience, which has grown along with the market for high-end chocolate. Thevideo discusses how Vosges has created a cohesive marketing strategy focused on luxury andinnovation.This activity is important because successful marketing requires an understanding of the full range ofmarketing activities, and of the importance of ensuring that all these activities serve a commonstrategy.The goal of this exercise is to test your understanding of the basic concepts of marketing.▪Video:The video is presented to the student below the introductory information. The video playsembedded on the page, after which questions are presented.Follow-Up Activity▪Compare Vosges to Godiva, which is probably the best-known luxury chocolate brand in the USA.What advantages does Godiva have over Vosges? How can Vosges compete successfully withGodiva (both in terms of its current activities and other things it might do)? Points to consider:oGodiva has far more brand recognition, more of its own stores, and a wider distributionnetwork.oVosges has its innovative flavors; in addition, the very fact that it is not aswell-knownmightallow the brand to create a more exclusive, super-premium image.iSeeIt Video Case:Value Creation Through the Marketing Mix▪Activity Type:Video Case▪Learning Objectives:01-01

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