SM
CH. 1
MARKETING: CREATING AND CAPTURING CUSTOMER VALUE
General Teaching Tips for this Ch.
This ch. introduces the__ subject of marketing, starting with the__ question: What is marketing? There are many
definitions. The__ American Marketing Association defines marketing as the__ activity, set of institutions, and
processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients,
partners, and society at large. The__ Oxford English Dictionary defines marketing as the__ action or business of
promoting and selling products or services, including market research and advertising. Wikipedia defines it as is the__
process of communicating the__ value of a product or service to customers, for selling that product or service. This
textbook defines marketing simply as managing profitable customer relationships. Another simple definition of
marketing is, everything that is done in support of sales.
For most students, this will be their first introduction to marketing and all its ramifications. To most of them,
marketing is nothing more than selling and/or advertising, and this gets reinforced daily when they see
“marketing” job ads that are really sales positions. It helps
to get students talking about what marketing is, and to give examples of what they think is really good marketing.
Try to bring in contemporary examples that the__ students can relate to.
The__ first ch. of this textbook sets the__ stage for the__ rest of the__ content. It outlines the__ major topics and
principles that will be discussed in each of the__ following chapters, and gives the__ student a good grounding in
what to expect in their journey into the__ world of marketing.
First classes are always difficult, both for the__ instructor and for the__ student. Therefore,
using examples that students can relate to easily is always a good idea when starting out.
In reviewing the__ material in class, a good way to break it down follows. This assumes a typical one-hour
structure; if the__ class is longer, spend a little more time on each topic. If shorter, you can either break the__ ch.
over two sessions, or shorten each topic’s allotted discussion time:
10 MIN discussing what marketing really is. Many students will come into class thinking they are going to
be learning all about advertising, or all about selling. Ask students to talk about what they think marketing
is, and to use examples of what they’ve encountered in their own lives.
10 MIN on the__ second major topic of the__ ch., understanding the__ marketplace and consumer needs.
Discussing the__ differences of needs, wants, and demands, and how
they relate to marketing, can greatly enhance the__ students’ understanding of the__ basis of marketing.
Also included in this section are the__ notions of marketing offers, satisfaction, and relationships. You can
discuss the__ various ways companies develop relationships with their customers. Using Amazon.com as an
example can really help the__ students understand that a company with millions of customers can still
easily develop relationships with each and every one of them.
10 MIN on designing customer-driven marketing strategies. Many students will still not understand how
needs, wants, and demands can drive companies’ product development, but this section of the__ ch. will
help them see it a little more clearly.
5 MIN on preparing a marketing plan and program. This section shows how everything they learn in
marketing will be pulled together, but it is too soon in the__ semester to be spending a lot of time on the__
topic.
1
,SM
15 MIN on customer relationships, because this topic is the__ heart of the__ ch. and the__ entire text. Use
examples that the__ students will appreciate. Discussing the__ difference in the__ relationships they have
with their hairdresser or barber and that of Amazon.com or other online seller (Ticketmaster?) can drive
home the__ importance of holding on to good customers. Students will also be well aware of frequency
marketing programs, and examples of those will also be beneficial.
10 MIN discussing the__ future of marketing and the__ development of customer relationships. Remember
your students have known an era without the__ Internet. Asking them how they would have developed
relationships with their customers without the__ assistance of technology is a good way to get a discussion
started on how marketing programs are developed. Then you can talk about how the__ advent of email and
the__ Internet has opened the__ entire world for even a small retailer.
If time permits, revisit the__ question of “what is marketing?” The__ students should now have a greater
appreciation of the__ science behind marketing, as well as the__ creativity necessary to develop successful
marketing programs.
Students need to truly understand and internalize what it means to work in marketing, and to be
a marketer, before they can proceed with the__ topics in this book. They need to do more than just memorize and
repeat back a definition; they need to demonstrate understanding. So, a good way to start off the__ first class is to
ask students how they would define marketing. Or, less formally, “How would you explain what marketing is to a
friend who has never taken a marketing course?” (Variations: how would you explain it to your grandparents; how
would you explain it to the__ Martians if they just landed on Earth and no nothing about us.)
At this stage, students are very apprehensive about the__ course. When they walked into class, they thought they
might learn about selling and advertising, and now they’ve discovered that there is much more to marketing than
just those two subjects. Talking about how much fun it is to be the__ centre of the__ company, and knowing more
about customers than any other functional area in the__ company, can sometimes ease their minds and make them
look forward to learning more. Emphasizing that marketing combines both the__ analytical and the__ creative can
also ease some tension. The__ accounting and finance majors will find that there is something in it to suit their
more analytical frame of reference, and the__ artists and designers who hope to become fashion mavens can also
rest assured that although they will need to understand the__ more logical areas
of the__ subject, their intuition can still reign supreme.
Finally, you might want to show the__ students the__ website of the__ Canadian Marketing Association, just to
introduce them to the__ organization, and show them what it is. More teaching tips follow below, in conjunction
with each content section of this ch..
Ideas for Activities and Assignments based on Opening Story (Joe Fresh)
The__ opening story is about grocery giant Loblaw’s clothing line, Joe Fresh, which has become one of Canada’s
most successful apparel brands—a success attributed to the__ company’s approach to marketing. The__ Joe Fresh
brand creates value for customers, and in return it captures value from those customers, through the__ money they
spend in the__ store, and the__ fact that they keep coming back.
The__ main retail segment, which operates under several grocery banners and the__ Joe Fresh clothing chain, had
$7.41 billion in sales, up 1.8 per cent or $130 million from $7.29 billion
(Feb 20, 2014, CBC News, Canadian Press). The__ brand expanded its product line to include beauty and cosmetics
in 2009 (which it rolled out in Shoppers’ Drug Mart store in January 2016), and launched an ecommerce site in
2013. Joe Fresh is now set to expand to 140 more stores in 23 new countries to respond to customer demand and
requests for more current
service strategies.
2
,SM
You’ll see this theme of creating customer value, to capture value in return repeated throughout the__ first ch. and
throughout the__ text.
Group discussion: What some of the__ strategic marketing decisions (under the__ 4 P’s of marketing) that Joe
Fresh made that has led to their success?
Some answers to look for:
o Distribution or P=place decision: Locating the__ stores inside or beside Loblaw’s grocery stores and
creating e-commerce options
o P=price decision: Very low prices/affordable, so consumers can pick up a few things at the__ same time as
groceries, without having to make a major shopping investment
o P=product decision: Constantly rotating stock so that people can visit every week and always see
something new and adding in new diversified products such as shoes and cosmetics
o P=promotion: Brand name has a Canadian sound to it (“Joe”) and the__ word fresh communicates what
the__ brand stands for
In-class group participation activity: Joe Fresh was launched in 2006 and in less than 8 years has grown to
become the__ largest apparel brand in Canada in terms of both units sold and dollars. Research (search online)
the__ other top apparel brands in Canada. Collect data such as annual sales if possible.
Ideas for Activities and Assignments based on M@W 1.1 (Canada Goose)
Canada Goose was the__ comprehensive case in the__ 4th Canadian edition of this textbook, so if you still have a
copy, might want to use it for more ideas and material. Canada Goose is a brand that many Canadian students are
familiar with, especially ones who come from, or live in, very cold parts of the__ country. But the__ brand has taken
off rapidly in the__ last decade by marketing its made-in-Canada ethos and trendy goose down parkas with red,
white, and blue circular patches to Europeans, who have flocked to the__ outerwear. Celebrities such as Toronto-
born rapper Drake, Prime Minister Justin Trudeau, and model Kate Upton (on the__ cover of the__ 2013 Sports
Illustrated swimsuit edition, sporting nothing else) have been spotted donning the__ puffy coats. Even after its sale
to U.S. equity firm Bain, the__ President and CEO Dani Reiss still uses Canadian-made as the__ moniker for its brand
dominance. “Made in Canada is extremely important, and extremely important to Canada Goose, and we’ve chosen
partners to whom it is also extremely important to,” Mr. Reiss said in an interview. “And I have no expectation that
that’s going to change. If I thought that it was going to change, I would not have done this deal.” (Retail and
Marketing, Dec. 2013)
Group/class discussion: Though the__ subject of branding isn’t covered in detail until ch. 9, it is mentioned in this
story so this is a good time to introduce it. The__ story says, “Canada Goose is a company that has always chosen its
own path and stayed true to its brand.” Ask students what they think that means, especially the__ part about
staying true to a brand.
Some points to look for: A very good student might pick up on this point, quoted from the__ story: “Customers
know what to expect when they buy a Canada Goose product.” That, essentially, is what it means to be a brand—it
is an identification that “signals” meaning to consumers, so they know what to expect. It’s why people go into
McDonald’s when they’re
in interesting foreign countries. Brands mean something; they stand for something in the__ consumer’s mind. Ask
students what Canada Goose means to them. Ask them what Canada Goose stands for. Another quote they should
pick up on is “Canada Goose… realized early on that having its clothes made in Canada was integral to the__
authenticity of its brand.” Ask students what is meant by “authenticity” when it comes to a brand. Ask them what
brands they feel are authentic, and which are not. (They will likely have strong opinions about this.) Other points
3
, SM
they might mention about the__ Canada Goose brand are the__ fact that it still manufactures in Canada; the__
designs are all by Canadian designers; and the__ fact that CG uses animal products
in an ethical, humane, and sustainable manner.
Ideas for Activities and Assignments based on M@W 1.2
(Life is Good, Inc.: Engaging Customers and Spreading Optimism)
The__ example of Life is good illustrates how brands are more than a company’s products, and how brands creating
meaning beyond the__ product form and function.
Group discussion: How would you describe Life is good’s market offering?
Some answers to look for:
According to the__ text, a market offering is “some combination of products, services, information, or
experiences offered to a market to satisfy a need or want.” Students
will easily identify t-shirts as their product. However, students should be challenged
to identify the__ rest of the__ Life is good offerings and how they’re part of the__ “product.” This could
include: 10% of profits to children’s charity; consumer-generated marketing through the__ community of
Optimists on Facebook, Twitter, Pinterest, and YouTube; Life is Good Radio, Lifeisgood.com, and the__ Life
is good Festival.
Research assignment: What other brands are successful at engaging customers and in creating vibrant online
communities? What do the__ brands have in common? What value do the__ brands deliver to customers, and what
value does the__ brand get in return?
LO1: Define marketing and outline the__ steps in the__ marketing process.
In addition to the__ introductory notes above, an important point for students to learn in this section is, “Sound
marketing is critical to the__ success of every organization.”
Also, they need to understand that every business, every company, and every organization—even not-for-profit
ones—exists for only one reason: to offer something to the__ market. (They usually have to chew on this idea for a
while.) So therefore, logically, if a business exists to offer something to the__ market, how can they possibly exist
without marketing? It is, arguably, the__ most important function of every business.
Students should memorize the__ steps of the__ marketing process (Figure 1.1) so that throughout the__ course they
can fit every new thing they learn into this framework:
1. Understand the__ marketplace and customer needs and wants.
2. Design a customer-driven marketing strategy.
3. Construct an integrated marketing program that delivers superior value.
4. Build profitable relationships and create customer delight.
5. Capture value from customers to create profits and customer equity.
LO1: Assignments and Activities
Think-Pair-Share: Consider the__ following questions, formulate an answer, pair with the__ student on your right,
share your thoughts with one another, and respond to the__ questions from the__ instructor. These questions could
also be given as out-of-class assignments:
4
CH. 1
MARKETING: CREATING AND CAPTURING CUSTOMER VALUE
General Teaching Tips for this Ch.
This ch. introduces the__ subject of marketing, starting with the__ question: What is marketing? There are many
definitions. The__ American Marketing Association defines marketing as the__ activity, set of institutions, and
processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients,
partners, and society at large. The__ Oxford English Dictionary defines marketing as the__ action or business of
promoting and selling products or services, including market research and advertising. Wikipedia defines it as is the__
process of communicating the__ value of a product or service to customers, for selling that product or service. This
textbook defines marketing simply as managing profitable customer relationships. Another simple definition of
marketing is, everything that is done in support of sales.
For most students, this will be their first introduction to marketing and all its ramifications. To most of them,
marketing is nothing more than selling and/or advertising, and this gets reinforced daily when they see
“marketing” job ads that are really sales positions. It helps
to get students talking about what marketing is, and to give examples of what they think is really good marketing.
Try to bring in contemporary examples that the__ students can relate to.
The__ first ch. of this textbook sets the__ stage for the__ rest of the__ content. It outlines the__ major topics and
principles that will be discussed in each of the__ following chapters, and gives the__ student a good grounding in
what to expect in their journey into the__ world of marketing.
First classes are always difficult, both for the__ instructor and for the__ student. Therefore,
using examples that students can relate to easily is always a good idea when starting out.
In reviewing the__ material in class, a good way to break it down follows. This assumes a typical one-hour
structure; if the__ class is longer, spend a little more time on each topic. If shorter, you can either break the__ ch.
over two sessions, or shorten each topic’s allotted discussion time:
10 MIN discussing what marketing really is. Many students will come into class thinking they are going to
be learning all about advertising, or all about selling. Ask students to talk about what they think marketing
is, and to use examples of what they’ve encountered in their own lives.
10 MIN on the__ second major topic of the__ ch., understanding the__ marketplace and consumer needs.
Discussing the__ differences of needs, wants, and demands, and how
they relate to marketing, can greatly enhance the__ students’ understanding of the__ basis of marketing.
Also included in this section are the__ notions of marketing offers, satisfaction, and relationships. You can
discuss the__ various ways companies develop relationships with their customers. Using Amazon.com as an
example can really help the__ students understand that a company with millions of customers can still
easily develop relationships with each and every one of them.
10 MIN on designing customer-driven marketing strategies. Many students will still not understand how
needs, wants, and demands can drive companies’ product development, but this section of the__ ch. will
help them see it a little more clearly.
5 MIN on preparing a marketing plan and program. This section shows how everything they learn in
marketing will be pulled together, but it is too soon in the__ semester to be spending a lot of time on the__
topic.
1
,SM
15 MIN on customer relationships, because this topic is the__ heart of the__ ch. and the__ entire text. Use
examples that the__ students will appreciate. Discussing the__ difference in the__ relationships they have
with their hairdresser or barber and that of Amazon.com or other online seller (Ticketmaster?) can drive
home the__ importance of holding on to good customers. Students will also be well aware of frequency
marketing programs, and examples of those will also be beneficial.
10 MIN discussing the__ future of marketing and the__ development of customer relationships. Remember
your students have known an era without the__ Internet. Asking them how they would have developed
relationships with their customers without the__ assistance of technology is a good way to get a discussion
started on how marketing programs are developed. Then you can talk about how the__ advent of email and
the__ Internet has opened the__ entire world for even a small retailer.
If time permits, revisit the__ question of “what is marketing?” The__ students should now have a greater
appreciation of the__ science behind marketing, as well as the__ creativity necessary to develop successful
marketing programs.
Students need to truly understand and internalize what it means to work in marketing, and to be
a marketer, before they can proceed with the__ topics in this book. They need to do more than just memorize and
repeat back a definition; they need to demonstrate understanding. So, a good way to start off the__ first class is to
ask students how they would define marketing. Or, less formally, “How would you explain what marketing is to a
friend who has never taken a marketing course?” (Variations: how would you explain it to your grandparents; how
would you explain it to the__ Martians if they just landed on Earth and no nothing about us.)
At this stage, students are very apprehensive about the__ course. When they walked into class, they thought they
might learn about selling and advertising, and now they’ve discovered that there is much more to marketing than
just those two subjects. Talking about how much fun it is to be the__ centre of the__ company, and knowing more
about customers than any other functional area in the__ company, can sometimes ease their minds and make them
look forward to learning more. Emphasizing that marketing combines both the__ analytical and the__ creative can
also ease some tension. The__ accounting and finance majors will find that there is something in it to suit their
more analytical frame of reference, and the__ artists and designers who hope to become fashion mavens can also
rest assured that although they will need to understand the__ more logical areas
of the__ subject, their intuition can still reign supreme.
Finally, you might want to show the__ students the__ website of the__ Canadian Marketing Association, just to
introduce them to the__ organization, and show them what it is. More teaching tips follow below, in conjunction
with each content section of this ch..
Ideas for Activities and Assignments based on Opening Story (Joe Fresh)
The__ opening story is about grocery giant Loblaw’s clothing line, Joe Fresh, which has become one of Canada’s
most successful apparel brands—a success attributed to the__ company’s approach to marketing. The__ Joe Fresh
brand creates value for customers, and in return it captures value from those customers, through the__ money they
spend in the__ store, and the__ fact that they keep coming back.
The__ main retail segment, which operates under several grocery banners and the__ Joe Fresh clothing chain, had
$7.41 billion in sales, up 1.8 per cent or $130 million from $7.29 billion
(Feb 20, 2014, CBC News, Canadian Press). The__ brand expanded its product line to include beauty and cosmetics
in 2009 (which it rolled out in Shoppers’ Drug Mart store in January 2016), and launched an ecommerce site in
2013. Joe Fresh is now set to expand to 140 more stores in 23 new countries to respond to customer demand and
requests for more current
service strategies.
2
,SM
You’ll see this theme of creating customer value, to capture value in return repeated throughout the__ first ch. and
throughout the__ text.
Group discussion: What some of the__ strategic marketing decisions (under the__ 4 P’s of marketing) that Joe
Fresh made that has led to their success?
Some answers to look for:
o Distribution or P=place decision: Locating the__ stores inside or beside Loblaw’s grocery stores and
creating e-commerce options
o P=price decision: Very low prices/affordable, so consumers can pick up a few things at the__ same time as
groceries, without having to make a major shopping investment
o P=product decision: Constantly rotating stock so that people can visit every week and always see
something new and adding in new diversified products such as shoes and cosmetics
o P=promotion: Brand name has a Canadian sound to it (“Joe”) and the__ word fresh communicates what
the__ brand stands for
In-class group participation activity: Joe Fresh was launched in 2006 and in less than 8 years has grown to
become the__ largest apparel brand in Canada in terms of both units sold and dollars. Research (search online)
the__ other top apparel brands in Canada. Collect data such as annual sales if possible.
Ideas for Activities and Assignments based on M@W 1.1 (Canada Goose)
Canada Goose was the__ comprehensive case in the__ 4th Canadian edition of this textbook, so if you still have a
copy, might want to use it for more ideas and material. Canada Goose is a brand that many Canadian students are
familiar with, especially ones who come from, or live in, very cold parts of the__ country. But the__ brand has taken
off rapidly in the__ last decade by marketing its made-in-Canada ethos and trendy goose down parkas with red,
white, and blue circular patches to Europeans, who have flocked to the__ outerwear. Celebrities such as Toronto-
born rapper Drake, Prime Minister Justin Trudeau, and model Kate Upton (on the__ cover of the__ 2013 Sports
Illustrated swimsuit edition, sporting nothing else) have been spotted donning the__ puffy coats. Even after its sale
to U.S. equity firm Bain, the__ President and CEO Dani Reiss still uses Canadian-made as the__ moniker for its brand
dominance. “Made in Canada is extremely important, and extremely important to Canada Goose, and we’ve chosen
partners to whom it is also extremely important to,” Mr. Reiss said in an interview. “And I have no expectation that
that’s going to change. If I thought that it was going to change, I would not have done this deal.” (Retail and
Marketing, Dec. 2013)
Group/class discussion: Though the__ subject of branding isn’t covered in detail until ch. 9, it is mentioned in this
story so this is a good time to introduce it. The__ story says, “Canada Goose is a company that has always chosen its
own path and stayed true to its brand.” Ask students what they think that means, especially the__ part about
staying true to a brand.
Some points to look for: A very good student might pick up on this point, quoted from the__ story: “Customers
know what to expect when they buy a Canada Goose product.” That, essentially, is what it means to be a brand—it
is an identification that “signals” meaning to consumers, so they know what to expect. It’s why people go into
McDonald’s when they’re
in interesting foreign countries. Brands mean something; they stand for something in the__ consumer’s mind. Ask
students what Canada Goose means to them. Ask them what Canada Goose stands for. Another quote they should
pick up on is “Canada Goose… realized early on that having its clothes made in Canada was integral to the__
authenticity of its brand.” Ask students what is meant by “authenticity” when it comes to a brand. Ask them what
brands they feel are authentic, and which are not. (They will likely have strong opinions about this.) Other points
3
, SM
they might mention about the__ Canada Goose brand are the__ fact that it still manufactures in Canada; the__
designs are all by Canadian designers; and the__ fact that CG uses animal products
in an ethical, humane, and sustainable manner.
Ideas for Activities and Assignments based on M@W 1.2
(Life is Good, Inc.: Engaging Customers and Spreading Optimism)
The__ example of Life is good illustrates how brands are more than a company’s products, and how brands creating
meaning beyond the__ product form and function.
Group discussion: How would you describe Life is good’s market offering?
Some answers to look for:
According to the__ text, a market offering is “some combination of products, services, information, or
experiences offered to a market to satisfy a need or want.” Students
will easily identify t-shirts as their product. However, students should be challenged
to identify the__ rest of the__ Life is good offerings and how they’re part of the__ “product.” This could
include: 10% of profits to children’s charity; consumer-generated marketing through the__ community of
Optimists on Facebook, Twitter, Pinterest, and YouTube; Life is Good Radio, Lifeisgood.com, and the__ Life
is good Festival.
Research assignment: What other brands are successful at engaging customers and in creating vibrant online
communities? What do the__ brands have in common? What value do the__ brands deliver to customers, and what
value does the__ brand get in return?
LO1: Define marketing and outline the__ steps in the__ marketing process.
In addition to the__ introductory notes above, an important point for students to learn in this section is, “Sound
marketing is critical to the__ success of every organization.”
Also, they need to understand that every business, every company, and every organization—even not-for-profit
ones—exists for only one reason: to offer something to the__ market. (They usually have to chew on this idea for a
while.) So therefore, logically, if a business exists to offer something to the__ market, how can they possibly exist
without marketing? It is, arguably, the__ most important function of every business.
Students should memorize the__ steps of the__ marketing process (Figure 1.1) so that throughout the__ course they
can fit every new thing they learn into this framework:
1. Understand the__ marketplace and customer needs and wants.
2. Design a customer-driven marketing strategy.
3. Construct an integrated marketing program that delivers superior value.
4. Build profitable relationships and create customer delight.
5. Capture value from customers to create profits and customer equity.
LO1: Assignments and Activities
Think-Pair-Share: Consider the__ following questions, formulate an answer, pair with the__ student on your right,
share your thoughts with one another, and respond to the__ questions from the__ instructor. These questions could
also be given as out-of-class assignments:
4
