Instructor
Manual
,CHAPTER
1 DEFINING MARKETING
FOR THE NEW REALITIES
LEARNING OBJECTIVES
After studying this chapter, you should be able to:
1.1 Define the scope of marketing.
1.2 Describe the new marketing realities.
1.3 Explain the role of marketing in an organization.
1.4 Illustrate how to organize and manage a modern marketing department.
CHAPTER SUMMARY
1. Marketing is an organizational function and a set of processes for creating,
communicating, and delivering value to customers and for managing customer
relationships in ways that benefit the organization and its stakeholders. Marketing
management is the art and science of choosing target markets and getting,
keeping, and growing customers through creating, delivering, and communicating
superior customer value.
2. Companies aim to create value by marketing goods, services, events, experiences,
persons, places, properties, organizations, information, and ideas. Firms must
constantly move forward. At greatest risk are those companies that fail to
continually improve their value offerings and marketing strategies.
3. Today’s marketplace is fundamentally different as a result of major societal
forces that have resulted in many new consumer and company capabilities. In
particular, technology, globalization, and social responsibility have created new
opportunities and challenges and significantly changed marketing management.
Companies seek the right balance of tried-and-true methods with breakthrough
new approaches to achieve marketing excellence.
4. The holistic marketing concept is based on the development, design, and
implementation of marketing programs, processes, and activities that are
grounded on breadth and interdependencies. Holistic marketing recognizes that
everything matters in marketing and that a broad, integrated perspective is often
necessary. The four components of holistic marketing are relationship
marketing, integrated marketing, internal marketing, and performance marketing.
OPENING THOUGHT
Good marketing is no accident. It is both an art and a science, and it results from careful
planning and execution using state-of-the-art tools and techniques. Skillful marketers are
continually updating classic practices and inventing new ones to find creative, practical
,ways to adapt to new marketing realities. In this chapter, we lay the foundation for sound
marketing practices by reviewing important marketing concepts, tools, frameworks, and
issues. Marketing applies to a variety of different areas and is increasingly involving
many levels of the organization. Students who are not marketing majors may have some
difficulty accepting the encompassing role that marketing has on the other functional
disciplines within a firm. For those students who have never been exposed to marketing
and its components, the instructor’s challenge is to educate the students about the world
of marketing.
TEACHING STRATEGY AND CLASS ORGANIZATION
PROJECTS
1. Semester-Long Marketing Plan Project
An effective way to help students learn about marketing management is through the actual
creation of a marketing plan for a product or service. This project is designed to accomplish
such a task.
Dividing the class into groups, have each group decide on a “fictional” consumer product
or service they wish to bring to market. During the course of the semester, each of the
elements of the marketing plan, coordinating with the text chapter, will be due for the
instructor’s review. The instructor is encouraged to review each submission and suggest
areas for improvement, for more detailed study, or if acceptable, to allow the students to
proceed to the next phase in development. Students can use a computer program in creating
their proposals and submissions and in their final presentation(s). At the end of the semester,
each group is to present their entire marketing plan to the class.
The following is an outline of this process:
Chapter # Title Element of the Marketing Plan Due
1 Defining Marketing for the None; group formation and begin the
New Realities process of selecting the product or service.
2 Marketing Planning and Formation of groups; first presentation of
Management “product” to instructor for approval.
3 Analyzing Consumer Definitive data on the consumer for the
Markets product/service including all demographic
and other pertinent information obtained
and ready for instructor’s approval.
4 Analyzing Business No report due for this chapter; allows
Markets students and instructor to “catch up” on the
project.
5 Conducting Marketing Initial marketing research parameters
Research completed; demand forecasted and target
market selections defined.
, 6 Identifying Market Specific market segmentation, targeting,
Segments and Target and positioning statements by the students
Customers due.
7 Crafting a Customer Value At this point in the semester, student
Proposition and Positioning projects should include their fictional
product or service’s brand positioning. In
relationship to the material contained in the
chapter, students should have delineated
and designed a differentiated brand
positioning for their project.
8 Designing and Managing At this point in the semester-long project,
Products students should have set their group
project’s product or service strategy.
Instructors are to evaluate their
submissions on the product (or service)
features, quality, and price and other
considerations of “product” found in this
chapter.
9 Designing and Managing At this point in the semester-long project,
Services those students who have selected a
“service” idea for the marketing plan must
submit their offering. Students whose
project is a “product-based” component do
not have anything to submit for this
chapter.
10 Building Strong Brands At this point in the semester, students are to
have their “branding” strategy developed
for their project. Questions to have been
completed include the brand name, its
equity position, and the decisions in
developing the brand strategy.
11 Managing Pricing and Sales At this point in the semester-long project,
Promotions students should be prepared to hand in their
pricing strategy decisions for their fictional
product/service. In reviewing this section,
the instructor should make sure that the
students have addressed all or most of the
material concerning pricing covered in this
chapter.
12 Managing Marketing At this point in the semester-long project,
Communications students should have agreed upon their
communication campaign that spans
different media. The instructor is
encouraged to evaluate the submissions
vis-à-vis the material presented in this
chapter. In reviewing the submissions, the
Manual
,CHAPTER
1 DEFINING MARKETING
FOR THE NEW REALITIES
LEARNING OBJECTIVES
After studying this chapter, you should be able to:
1.1 Define the scope of marketing.
1.2 Describe the new marketing realities.
1.3 Explain the role of marketing in an organization.
1.4 Illustrate how to organize and manage a modern marketing department.
CHAPTER SUMMARY
1. Marketing is an organizational function and a set of processes for creating,
communicating, and delivering value to customers and for managing customer
relationships in ways that benefit the organization and its stakeholders. Marketing
management is the art and science of choosing target markets and getting,
keeping, and growing customers through creating, delivering, and communicating
superior customer value.
2. Companies aim to create value by marketing goods, services, events, experiences,
persons, places, properties, organizations, information, and ideas. Firms must
constantly move forward. At greatest risk are those companies that fail to
continually improve their value offerings and marketing strategies.
3. Today’s marketplace is fundamentally different as a result of major societal
forces that have resulted in many new consumer and company capabilities. In
particular, technology, globalization, and social responsibility have created new
opportunities and challenges and significantly changed marketing management.
Companies seek the right balance of tried-and-true methods with breakthrough
new approaches to achieve marketing excellence.
4. The holistic marketing concept is based on the development, design, and
implementation of marketing programs, processes, and activities that are
grounded on breadth and interdependencies. Holistic marketing recognizes that
everything matters in marketing and that a broad, integrated perspective is often
necessary. The four components of holistic marketing are relationship
marketing, integrated marketing, internal marketing, and performance marketing.
OPENING THOUGHT
Good marketing is no accident. It is both an art and a science, and it results from careful
planning and execution using state-of-the-art tools and techniques. Skillful marketers are
continually updating classic practices and inventing new ones to find creative, practical
,ways to adapt to new marketing realities. In this chapter, we lay the foundation for sound
marketing practices by reviewing important marketing concepts, tools, frameworks, and
issues. Marketing applies to a variety of different areas and is increasingly involving
many levels of the organization. Students who are not marketing majors may have some
difficulty accepting the encompassing role that marketing has on the other functional
disciplines within a firm. For those students who have never been exposed to marketing
and its components, the instructor’s challenge is to educate the students about the world
of marketing.
TEACHING STRATEGY AND CLASS ORGANIZATION
PROJECTS
1. Semester-Long Marketing Plan Project
An effective way to help students learn about marketing management is through the actual
creation of a marketing plan for a product or service. This project is designed to accomplish
such a task.
Dividing the class into groups, have each group decide on a “fictional” consumer product
or service they wish to bring to market. During the course of the semester, each of the
elements of the marketing plan, coordinating with the text chapter, will be due for the
instructor’s review. The instructor is encouraged to review each submission and suggest
areas for improvement, for more detailed study, or if acceptable, to allow the students to
proceed to the next phase in development. Students can use a computer program in creating
their proposals and submissions and in their final presentation(s). At the end of the semester,
each group is to present their entire marketing plan to the class.
The following is an outline of this process:
Chapter # Title Element of the Marketing Plan Due
1 Defining Marketing for the None; group formation and begin the
New Realities process of selecting the product or service.
2 Marketing Planning and Formation of groups; first presentation of
Management “product” to instructor for approval.
3 Analyzing Consumer Definitive data on the consumer for the
Markets product/service including all demographic
and other pertinent information obtained
and ready for instructor’s approval.
4 Analyzing Business No report due for this chapter; allows
Markets students and instructor to “catch up” on the
project.
5 Conducting Marketing Initial marketing research parameters
Research completed; demand forecasted and target
market selections defined.
, 6 Identifying Market Specific market segmentation, targeting,
Segments and Target and positioning statements by the students
Customers due.
7 Crafting a Customer Value At this point in the semester, student
Proposition and Positioning projects should include their fictional
product or service’s brand positioning. In
relationship to the material contained in the
chapter, students should have delineated
and designed a differentiated brand
positioning for their project.
8 Designing and Managing At this point in the semester-long project,
Products students should have set their group
project’s product or service strategy.
Instructors are to evaluate their
submissions on the product (or service)
features, quality, and price and other
considerations of “product” found in this
chapter.
9 Designing and Managing At this point in the semester-long project,
Services those students who have selected a
“service” idea for the marketing plan must
submit their offering. Students whose
project is a “product-based” component do
not have anything to submit for this
chapter.
10 Building Strong Brands At this point in the semester, students are to
have their “branding” strategy developed
for their project. Questions to have been
completed include the brand name, its
equity position, and the decisions in
developing the brand strategy.
11 Managing Pricing and Sales At this point in the semester-long project,
Promotions students should be prepared to hand in their
pricing strategy decisions for their fictional
product/service. In reviewing this section,
the instructor should make sure that the
students have addressed all or most of the
material concerning pricing covered in this
chapter.
12 Managing Marketing At this point in the semester-long project,
Communications students should have agreed upon their
communication campaign that spans
different media. The instructor is
encouraged to evaluate the submissions
vis-à-vis the material presented in this
chapter. In reviewing the submissions, the
