Solutions Manual for
Marketing, 3e Greg
Elliott Sharyn, Rundle
Thiele, David Waller
(All Chapters)
, Marketing, 3rd Edition
Chapter 1
Introduction to Marketing
In Chapter Questions
Opening Question
1. Find one marketing message that concerns you. Why is this message concerning?
(pg. 2)
Students will provide a range of examples to answer this question. Reasons why the
examples are concerning may include false advertising, misleading claims,
persuading people to buy things they don’t really need, concerns about the long
term effects of the product, concerns about the impact the product will have on the
environment or society and / or concerns about the manufacturing or construction
process.
Learning Objective 1
Spotlight question
1. Visit USM Events website (www.usmevents.com.au). In terms of what you have read
in the chapter so far, how would you describe USM Events’ approach to business
and the marketing process? (pg. 10)
Marketing is an approach to business that puts the customer, client, partner and
society at the heart of all business decisions. The marketing process involves
understanding the market to create, communicate and deliver an offering for
exchange. The USM Events approach to business encompasses the marketing
process; “USM Events is a young and dynamic team that is close to its stakeholders
and listens to the market forces….the company places high priority on listening to
what its customers would like…”(pg. 10).
Concepts and applications check
1.1 Find an example of marketing in action and analyse the extent to which you think
the marketer has adopted ‘marketing thinking’. (pg. 10)
Student answers will vary depending on their own interests. One of the prominent
Australian examples of marketing in action is the ‘Target 140’ campaign. This
campaign ran from March 2007 to July 2008, with the primary objective being to
get Queensland residents to reduce their water consumption to 140 litres per person
per day. The campaign was structured around TV and print advertising (often
including tips on how to conserve water, e.g. turning off the tap while shampooing
, Marketing, 3rd Edition
hair or brushing teeth) and free four-minute shower timers to residents. This is, of
course, part of a larger effort surrounding sustainable living and development. The
campaign was highly successful, reducing the average amount of water used per
person from 300 litres to 129 litres per day (more information can be found at
www.target140.com.au). This campaign fulfils the aim of mutual benefits; due to
the decrease in water consumption, the government was able to postpone
investments in, for example, desalination plants, which in turn had a positive impact
on resident’s tax burden.
1.2 Find an example of a socially responsible company. Explain why you feel this is
company is socially responsible. (pg. 10)
Students may wish to look at companies that are topping corporate social
responsibility indexes, such as the FTSE4GoodIndice or the Australian Corporate
Responsibility Index. Students may also want to search corporate websites to
consider sustainability or corporate social responsibility reports.
1.3 Find an example of a company that is co-creating with customers. Explain why you
feel this is an example of co-creation. (pg. 10)
Co-creation is the process whereby consumer experiences are used to drive
organisation improvement and change, resulting in enhanced market performance
drivers for the firm (loyalty, relationships, customer word of mouth). Two examples
of companies utilising co-creation are Facebook and YouTube.
1.4 Define marketing in your own words. How has your understanding of marketing
changed after reviewing the first part of this chapter? (pg. 11)
Student answers will vary. Students may comment that they thought marketing was
advertising. The text 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.
1.5 Explain how marketing can be used by not-for-profit organisations. Discuss an
example in your answer. (pg. 11)
A not-for-profit organisation (NPO) is prohibited from distributing profits to its
members, owners or managers. However, NPOs still strive to produce profits, but
must adhere to certain restrictions in regards to their use of those profits. In general,
charities, community services and sporting organisations are all examples of NPOs.
NPOs regularly engage in marketing for a range of reasons. It might be to collect
funds for a certain charity, or to inform and educate certain groups of the population
(educational marketing, e.g. Australia’s AIDS campaigns).
, Marketing, 3rd Edition
A highly successful NPO marketing effort is the National Breast Cancer
Foundation’s use of the ‘Pink Ribbon’ and the related cooperation with several
multinational corporations. Examples include Dove Pink range deodorant products
and the Dove Pink Star Walk (more information at www.mydove.com.au).
Learning Objective 2
Spotlight question
1. How can Telstra deliver value to customers while increasing shareholder value?
(pg. 14)
Value is a customer’s overall assessment of the utility of an offering based on
perceptions of what is received and what is given. In order to maintain an offering of value
of its customers, Telstra needs to be prepared to move with the times into the growth
markets. One option is to aim for a small amount of profit from a lot of customers. This
will give the company a market dominating position which if managed well, should result
in an increase in shareholder value.
Concepts and applications check
2.1 Provide three examples of products for which the customer may not necessarily be
the consumer. Briefly outline how this would affect the marketing of each product.
(pg. 14)
There are a myriad of examples in the marketplace, please find three listed below:
1. When a busy family wants take-away food for dinner, it often happens that the
kids gets to decide what should be on the table. This is an example of Pester
Power, where children keep pestering their parents to buy something until they
get it their way. Most parents would probably prefer their children to have a
Subway sandwich or something similar, but mighty is the impact of ads targeted
towards children. So although the parents purchase the take-away dinner, they
often do not make the final decision about what to bring home. This affects the
marketing of McDonald’s meals, and is the reason behind the toys forming part
of the Happy Meal and the tendency to advertise on TV at times where children
will be watching.
2. Whenever we purchase presents for friends or family, it is actually an example
of us as the customer but someone else as the consumer. We can see the
difference in marketing strategies for a range of products such as, around
Mothers Day, Fathers Day and Valentines. An example is a campaign run by
Marketing, 3e Greg
Elliott Sharyn, Rundle
Thiele, David Waller
(All Chapters)
, Marketing, 3rd Edition
Chapter 1
Introduction to Marketing
In Chapter Questions
Opening Question
1. Find one marketing message that concerns you. Why is this message concerning?
(pg. 2)
Students will provide a range of examples to answer this question. Reasons why the
examples are concerning may include false advertising, misleading claims,
persuading people to buy things they don’t really need, concerns about the long
term effects of the product, concerns about the impact the product will have on the
environment or society and / or concerns about the manufacturing or construction
process.
Learning Objective 1
Spotlight question
1. Visit USM Events website (www.usmevents.com.au). In terms of what you have read
in the chapter so far, how would you describe USM Events’ approach to business
and the marketing process? (pg. 10)
Marketing is an approach to business that puts the customer, client, partner and
society at the heart of all business decisions. The marketing process involves
understanding the market to create, communicate and deliver an offering for
exchange. The USM Events approach to business encompasses the marketing
process; “USM Events is a young and dynamic team that is close to its stakeholders
and listens to the market forces….the company places high priority on listening to
what its customers would like…”(pg. 10).
Concepts and applications check
1.1 Find an example of marketing in action and analyse the extent to which you think
the marketer has adopted ‘marketing thinking’. (pg. 10)
Student answers will vary depending on their own interests. One of the prominent
Australian examples of marketing in action is the ‘Target 140’ campaign. This
campaign ran from March 2007 to July 2008, with the primary objective being to
get Queensland residents to reduce their water consumption to 140 litres per person
per day. The campaign was structured around TV and print advertising (often
including tips on how to conserve water, e.g. turning off the tap while shampooing
, Marketing, 3rd Edition
hair or brushing teeth) and free four-minute shower timers to residents. This is, of
course, part of a larger effort surrounding sustainable living and development. The
campaign was highly successful, reducing the average amount of water used per
person from 300 litres to 129 litres per day (more information can be found at
www.target140.com.au). This campaign fulfils the aim of mutual benefits; due to
the decrease in water consumption, the government was able to postpone
investments in, for example, desalination plants, which in turn had a positive impact
on resident’s tax burden.
1.2 Find an example of a socially responsible company. Explain why you feel this is
company is socially responsible. (pg. 10)
Students may wish to look at companies that are topping corporate social
responsibility indexes, such as the FTSE4GoodIndice or the Australian Corporate
Responsibility Index. Students may also want to search corporate websites to
consider sustainability or corporate social responsibility reports.
1.3 Find an example of a company that is co-creating with customers. Explain why you
feel this is an example of co-creation. (pg. 10)
Co-creation is the process whereby consumer experiences are used to drive
organisation improvement and change, resulting in enhanced market performance
drivers for the firm (loyalty, relationships, customer word of mouth). Two examples
of companies utilising co-creation are Facebook and YouTube.
1.4 Define marketing in your own words. How has your understanding of marketing
changed after reviewing the first part of this chapter? (pg. 11)
Student answers will vary. Students may comment that they thought marketing was
advertising. The text 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.
1.5 Explain how marketing can be used by not-for-profit organisations. Discuss an
example in your answer. (pg. 11)
A not-for-profit organisation (NPO) is prohibited from distributing profits to its
members, owners or managers. However, NPOs still strive to produce profits, but
must adhere to certain restrictions in regards to their use of those profits. In general,
charities, community services and sporting organisations are all examples of NPOs.
NPOs regularly engage in marketing for a range of reasons. It might be to collect
funds for a certain charity, or to inform and educate certain groups of the population
(educational marketing, e.g. Australia’s AIDS campaigns).
, Marketing, 3rd Edition
A highly successful NPO marketing effort is the National Breast Cancer
Foundation’s use of the ‘Pink Ribbon’ and the related cooperation with several
multinational corporations. Examples include Dove Pink range deodorant products
and the Dove Pink Star Walk (more information at www.mydove.com.au).
Learning Objective 2
Spotlight question
1. How can Telstra deliver value to customers while increasing shareholder value?
(pg. 14)
Value is a customer’s overall assessment of the utility of an offering based on
perceptions of what is received and what is given. In order to maintain an offering of value
of its customers, Telstra needs to be prepared to move with the times into the growth
markets. One option is to aim for a small amount of profit from a lot of customers. This
will give the company a market dominating position which if managed well, should result
in an increase in shareholder value.
Concepts and applications check
2.1 Provide three examples of products for which the customer may not necessarily be
the consumer. Briefly outline how this would affect the marketing of each product.
(pg. 14)
There are a myriad of examples in the marketplace, please find three listed below:
1. When a busy family wants take-away food for dinner, it often happens that the
kids gets to decide what should be on the table. This is an example of Pester
Power, where children keep pestering their parents to buy something until they
get it their way. Most parents would probably prefer their children to have a
Subway sandwich or something similar, but mighty is the impact of ads targeted
towards children. So although the parents purchase the take-away dinner, they
often do not make the final decision about what to bring home. This affects the
marketing of McDonald’s meals, and is the reason behind the toys forming part
of the Happy Meal and the tendency to advertise on TV at times where children
will be watching.
2. Whenever we purchase presents for friends or family, it is actually an example
of us as the customer but someone else as the consumer. We can see the
difference in marketing strategies for a range of products such as, around
Mothers Day, Fathers Day and Valentines. An example is a campaign run by
