INSTRUCTOR MANUAL
FOUNDATIONS OF MARKETING
10TH EDITION
CHAPTER NO. 01: CUSTOMER-DRIVEN STRATEGIC MARKETING
DISCUSSION QUESTIONS
1. What is marketing? How did you define the term before you read this chapter?
● Marketing is exploring, developing, and delivering value to satisfy the needs of a target
market. The second part of this question can be used to stimulate class discussion about
how the average person views marketing.
2. What is the focus of all marketing activities? Why?
● Customers are the focal point of all marketing activities because they are the purchasers of
the products which organizations develop, promote, distribute, and price. Without
customers for its products, a firm would quickly fail.
3. What are the four variables of the marketing mix? Why are these elements known as variables?
● The marketing mix includes product, price, distribution, and promotion. They are called
variables because marketing managers decide what type of each element to use and to what
degree.
4. What is value? How can marketers use the marketing mix to enhance the perception of value?
● Value is a customer’s subjective assessment of benefits relative to costs in determining the
worth of a product. Examples of ways marketers can modify their marketing mixes to
enhance perceptions of value include offering product features or enhancements that
provide desirable consumer benefits, using promotion to create positive images or
prestigious characteristics that consumers consider in value assessment, pricing products
according to how consumers use them, and offering convenient distribution outlets.
5. What conditions must exist before a marketing exchange can occur? Describe a recent exchange in
which you participated.
● For an exchange to take place, four conditions must exist. First, two or more individuals,
groups, or organizations must participate, and each must possess something of value that
the other party desires. Second, the exchange should provide a benefit or satisfaction to
, both parties involved in the transaction. Third, each party must have confidence in the
promise of the “something of value” held by the other. Finally, both parties to the exchange
must meet expectations. The second part of this exercise can be used to stimulate class
discussion about exchanges based on students’ experiences.
6. What are the forces in the marketing environment? How much control does a marketing manager
have over these forces?
● The marketing environment, which involves uncontrollable factors that exist outside of the
marketing mix, includes competitive, economic, political/legal/regulatory, technological,
and sociocultural forces. These forces can have a swift and strong effect on an
organization, but marketers have little control over them. Marketers must be aware of
environmental forces, adapt to them, and capitalize on the opportunities they provide.
7. Discuss the basic elements of the marketing concept. Which businesses in your area use this
philosophy? Explain why.
● The marketing concept is an organizational philosophy that states that an organization
should try to provide products that satisfy customers’ needs through a coordinated set of
activities that also allow the organization to achieve its goals. The major focus is customer
satisfaction. The answers to the other parts of this question are based on local examples.
8. How can an organization implement the marketing concept?
● To implement the marketing concept, a marketing organization must first establish an
information system to discover customers’ real needs and then use the information to create
satisfying products. The organization must also coordinate all its activities.
9. What is customer relationship management? Why is it so important to “manage” this relationship?
● Customer relationship management focuses on using information about customers to create
marketing strategies that develop and sustain desirable customer relationships. “Managing”
customer relationships is important to marketers because it can foster customer loyalty and
thereby increase long-term profitability. A loyal lifelong customer can be worth a
considerable sum of money, so the loss of such customers can result in lower profits.
10. Why is marketing important in our society? Why should you study marketing?
● Marketing is important in our society because it provides employment for many people and
helps sell products that address stakeholder needs. This, in turn, generates profits essential
to the survival of individual businesses as well as to the health and ultimate survival of the
, global economy. Many organizations—including nonbusiness organizations like
governments and NGOs—use marketing activities.
● The study of marketing is important because marketing costs consume a sizable portion of
buyers’ dollars, and knowledge about how this money is used helps consumers understand
product costs. By becoming informed about marketing activities, students can one day
become good marketers themselves, working effectively and efficiently to create products
that satisfy needs and provide them to the stakeholders who need them. The study of
marketing activities also enables consumers to weigh the costs and benefits of marketing
activities and to evaluate laws, regulations, and industry guidelines intended to stop unfair,
misleading, and unethical marketing practices.
ADDITIONAL ACTIVITIES AND ASSIGNMENTS
The following are activities and assignments developed by Cengage but not included in the PPTs or
courseware (if courseware exists)—they are for you to use if you wish.
DISCUSSION STARTERS
You can assign these questions several ways: in a discussion forum in your LMS, as whole-class
discussions in person, or as a partner or group activity in class.
1. The Marketing Mix. Duration 25 minutes
● Marketing managers strive to develop a marketing mix that matches the needs of customers
in the target market. Before marketers can develop an appropriate marketing mix, they
must collect in-depth, up-to-date information about customer needs.
● Why is it important for marketers to consider their target market before changing parts of
the marketing mix like price and product?
● Answer: If a firm is market oriented, it will want to meet the needs of its target market.
Although customers do not like price increases, they are more likely to accept gradual
rate changes. Turing, a pharmaceutical firm, received major backlash from both
consumers and regulators after its CEO raised the price of the drug Daraprim by over
5,000 percent. The pill’s price increased from $13.50 to $750.00 a pill. Turing
attempted to pacify critics by offering large-scale price reductions to hospitals and
, smaller bottles of the drug. The CEO of Turing was eventually arrested on an unrelated
charge. Rising prices at other drug companies have sparked frustration with the
industry.
● Diet Pepsi also made the decision to change its product by replacing aspartame with
sucralose. The move was in response to consumers’ growing distrust of aspartame.
Initial reaction to the reformulated Diet Pepsi was negative. Similar reactions occurred
when Coca-Cola introduced New Coke, prompting it to pull the product. Most of the
time, changes to beloved products initiate consumer backlash, at least in the beginning.
This requires marketers to carefully consider changes to products, prices, and other
elements of the marketing mix.
● What can the pharmaceutical industry do differently to keep customers satisfied? Will
customers ever approve of price increases?
● Answer: Students should have a lot of ideas to answer this question. As consumers,
they probably disapprove of price increases for drugs, especially drugs that are
necessary for survival. However, it is important for students to think like
businesspeople and decide how they would handle changing the marketing mix.
Pharmaceutical firms argue that research and development as well as innovation
necessitate higher costs for certain drugs. Students may suggest that drug firms
should raise prices more slowly. They may also argue that the pharmaceutical firms
should reveal the reasoning behind decisions. For those drugs where the price must
be increased dramatically, offering hospitals discounts and finding other methods to
keep the costs affordable would help stem the tide of criticism. Transparency with
consumers and regulators is key to maintaining trust.
2. Customer Service. Duration 25 minutes
● The customer relationship often endures over an extended time period, and repeat
purchases are critical for the firm. A dissatisfied customer who lacks trust in the
relationship often searches for alternative organizations or products.
● How many of you have ever experienced rejection or disappointment in a customer service
experience?
● Answer: This question can lead to a discussion on good and bad customer service.
FOUNDATIONS OF MARKETING
10TH EDITION
CHAPTER NO. 01: CUSTOMER-DRIVEN STRATEGIC MARKETING
DISCUSSION QUESTIONS
1. What is marketing? How did you define the term before you read this chapter?
● Marketing is exploring, developing, and delivering value to satisfy the needs of a target
market. The second part of this question can be used to stimulate class discussion about
how the average person views marketing.
2. What is the focus of all marketing activities? Why?
● Customers are the focal point of all marketing activities because they are the purchasers of
the products which organizations develop, promote, distribute, and price. Without
customers for its products, a firm would quickly fail.
3. What are the four variables of the marketing mix? Why are these elements known as variables?
● The marketing mix includes product, price, distribution, and promotion. They are called
variables because marketing managers decide what type of each element to use and to what
degree.
4. What is value? How can marketers use the marketing mix to enhance the perception of value?
● Value is a customer’s subjective assessment of benefits relative to costs in determining the
worth of a product. Examples of ways marketers can modify their marketing mixes to
enhance perceptions of value include offering product features or enhancements that
provide desirable consumer benefits, using promotion to create positive images or
prestigious characteristics that consumers consider in value assessment, pricing products
according to how consumers use them, and offering convenient distribution outlets.
5. What conditions must exist before a marketing exchange can occur? Describe a recent exchange in
which you participated.
● For an exchange to take place, four conditions must exist. First, two or more individuals,
groups, or organizations must participate, and each must possess something of value that
the other party desires. Second, the exchange should provide a benefit or satisfaction to
, both parties involved in the transaction. Third, each party must have confidence in the
promise of the “something of value” held by the other. Finally, both parties to the exchange
must meet expectations. The second part of this exercise can be used to stimulate class
discussion about exchanges based on students’ experiences.
6. What are the forces in the marketing environment? How much control does a marketing manager
have over these forces?
● The marketing environment, which involves uncontrollable factors that exist outside of the
marketing mix, includes competitive, economic, political/legal/regulatory, technological,
and sociocultural forces. These forces can have a swift and strong effect on an
organization, but marketers have little control over them. Marketers must be aware of
environmental forces, adapt to them, and capitalize on the opportunities they provide.
7. Discuss the basic elements of the marketing concept. Which businesses in your area use this
philosophy? Explain why.
● The marketing concept is an organizational philosophy that states that an organization
should try to provide products that satisfy customers’ needs through a coordinated set of
activities that also allow the organization to achieve its goals. The major focus is customer
satisfaction. The answers to the other parts of this question are based on local examples.
8. How can an organization implement the marketing concept?
● To implement the marketing concept, a marketing organization must first establish an
information system to discover customers’ real needs and then use the information to create
satisfying products. The organization must also coordinate all its activities.
9. What is customer relationship management? Why is it so important to “manage” this relationship?
● Customer relationship management focuses on using information about customers to create
marketing strategies that develop and sustain desirable customer relationships. “Managing”
customer relationships is important to marketers because it can foster customer loyalty and
thereby increase long-term profitability. A loyal lifelong customer can be worth a
considerable sum of money, so the loss of such customers can result in lower profits.
10. Why is marketing important in our society? Why should you study marketing?
● Marketing is important in our society because it provides employment for many people and
helps sell products that address stakeholder needs. This, in turn, generates profits essential
to the survival of individual businesses as well as to the health and ultimate survival of the
, global economy. Many organizations—including nonbusiness organizations like
governments and NGOs—use marketing activities.
● The study of marketing is important because marketing costs consume a sizable portion of
buyers’ dollars, and knowledge about how this money is used helps consumers understand
product costs. By becoming informed about marketing activities, students can one day
become good marketers themselves, working effectively and efficiently to create products
that satisfy needs and provide them to the stakeholders who need them. The study of
marketing activities also enables consumers to weigh the costs and benefits of marketing
activities and to evaluate laws, regulations, and industry guidelines intended to stop unfair,
misleading, and unethical marketing practices.
ADDITIONAL ACTIVITIES AND ASSIGNMENTS
The following are activities and assignments developed by Cengage but not included in the PPTs or
courseware (if courseware exists)—they are for you to use if you wish.
DISCUSSION STARTERS
You can assign these questions several ways: in a discussion forum in your LMS, as whole-class
discussions in person, or as a partner or group activity in class.
1. The Marketing Mix. Duration 25 minutes
● Marketing managers strive to develop a marketing mix that matches the needs of customers
in the target market. Before marketers can develop an appropriate marketing mix, they
must collect in-depth, up-to-date information about customer needs.
● Why is it important for marketers to consider their target market before changing parts of
the marketing mix like price and product?
● Answer: If a firm is market oriented, it will want to meet the needs of its target market.
Although customers do not like price increases, they are more likely to accept gradual
rate changes. Turing, a pharmaceutical firm, received major backlash from both
consumers and regulators after its CEO raised the price of the drug Daraprim by over
5,000 percent. The pill’s price increased from $13.50 to $750.00 a pill. Turing
attempted to pacify critics by offering large-scale price reductions to hospitals and
, smaller bottles of the drug. The CEO of Turing was eventually arrested on an unrelated
charge. Rising prices at other drug companies have sparked frustration with the
industry.
● Diet Pepsi also made the decision to change its product by replacing aspartame with
sucralose. The move was in response to consumers’ growing distrust of aspartame.
Initial reaction to the reformulated Diet Pepsi was negative. Similar reactions occurred
when Coca-Cola introduced New Coke, prompting it to pull the product. Most of the
time, changes to beloved products initiate consumer backlash, at least in the beginning.
This requires marketers to carefully consider changes to products, prices, and other
elements of the marketing mix.
● What can the pharmaceutical industry do differently to keep customers satisfied? Will
customers ever approve of price increases?
● Answer: Students should have a lot of ideas to answer this question. As consumers,
they probably disapprove of price increases for drugs, especially drugs that are
necessary for survival. However, it is important for students to think like
businesspeople and decide how they would handle changing the marketing mix.
Pharmaceutical firms argue that research and development as well as innovation
necessitate higher costs for certain drugs. Students may suggest that drug firms
should raise prices more slowly. They may also argue that the pharmaceutical firms
should reveal the reasoning behind decisions. For those drugs where the price must
be increased dramatically, offering hospitals discounts and finding other methods to
keep the costs affordable would help stem the tide of criticism. Transparency with
consumers and regulators is key to maintaining trust.
2. Customer Service. Duration 25 minutes
● The customer relationship often endures over an extended time period, and repeat
purchases are critical for the firm. A dissatisfied customer who lacks trust in the
relationship often searches for alternative organizations or products.
● How many of you have ever experienced rejection or disappointment in a customer service
experience?
● Answer: This question can lead to a discussion on good and bad customer service.
