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Solution Manual for Marketing Management 4th EditionMark Johnston Greg
Marshall
en
en
tia
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Chapter 01
l
l
Marketing in Today’s Business Milieu
LEARNING OBJECTIVES
LO 1-1 Identify typical misconceptions about marketing, why they persist, and the resulting
challenges for marketing management.
LO 1-2 Define what marketing and marketing management really are and how they contribute
to a firm’s success.
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LO 1-3 Appreciate how marketing has evolved from its early roots to be practiced as it is today.
on
LO 1-4 Recognize the impact of key change drivers on the future of marketing.
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CHAPTER OUTLINE
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I. WELCOME TO MARKETING MANAGEMENT
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II. MARKETING MISCONCEPTIONS
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A. Behind the Misconceptions
1. Marketing Is Highly Visible by Nature
2. Marketing Is More Than Buzzwords
B. Beyond the Misconceptions and Toward the Reality of Modern Marketing
III. DEFINING MARKETING
A. Value and Exchange Are Core Marketing Concepts
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B. A New Agenda for Marketing
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IV. MARKETING’S ROOTS AND EVOLUTION
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A. Pre-Industrial Revolution
en
1-1
© McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of
tia
McGraw Hill LLC.
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B. Focus on Production and Products
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C. Focus on Selling
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D. Advent of the Marketing Concept
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l 1. The Marketing Mix
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E. Post-Marketing Concept Approaches
1. Differentiation Orientation
2. Market Orientation
3. Relationship Orientation
4. One-to-One Marketing
V. CHANGE DRIVERS IMPACTING THE FUTURE OF MARKETING
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A. Shift to Product Glut and Customer Shortage
on
B. Shift in Information Power from Marketer to Customer
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C. Shift in Generational Values and Preferences
D. Shift to Distinguishing Marketing (Big M) from marketing (little m)
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1. Marketing (Big M)
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2. marketing (little m)
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E. Shift to Justifying the Relevance and Payback of the Marketing Investment
VI. YOUR MARKETING MANAGEMENT JOURNEY BEGINS
VII. SUMMARY
KEY TERMS
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marketing management The leading and managing of the facets of marketing to improve
individual, unit, and organizational performance.
on
marketing’s stakeholders Any person or entity inside or outside a firm with whom marketing
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interacts, impacts, and is impacted by.
en
1-2
© McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of
tia
McGraw Hill LLC.
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on
on
societal marketing The concept that, at the broadest level, members of society at large can be
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viewed as a stakeholder for marketing.
sustainability The practicing of business that meet humanity’s needs without harming future
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en
generations.
tia
tia
value A ratio of the bundle of benefits a customer receives from an offering compared to the
costs incurred by the customer in acquiring that bundle of benefits.
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exchange The giving up of something of value for something desired.
production orientation The maximization of production capacity through improvements in
products and production activities without much regard for what is going on in the marketplace.
sales orientation The increase of sales and consequently production capacity utilization by
having salespeople ―push‖ product into the hands of customers.
marketing concept Business philosophy that emphasizes an organization-wide customer
orientation with the objective of achieving long-run profits.
C
marketing mix (4Ps of marketing) Product, price, place, and promotion—the fundamental
elements that comprise the marketer’s tool kit that can be developed in unique combinations to
on
set the product or brand apart from the competition.
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offering A product or service that delivers value to satisfy a need or want.
en
solution A bundle of benefits from an offering that solves a problem or fills a need of a
customer.
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differentiation Communicating and delivering value in different ways to different customer
groups.
l
customer orientation Placing the customer at the core of all aspects of the enterprise.
market orientation The implementation of the marketing concept, based on the understanding
of competitors and listening to the market.
relationship orientation Investing in keeping and cultivating profitable current customers
instead of constantly having to invest in gaining new ones.
one-to-one marketing Directing energy and resources into establishing a learning relationship
with each customer and connecting that knowledge with the firm’s production and service
capabilities to fulfill that customer’s needs in as custom a manner as possible.
C
on
mass customization Combining flexible manufacturing with flexible marketing to greatly
enhance customer choice.
fid
Marketing (Big M) The dimension of marketing that focuses on external forces that affect the
organization and serves as the driver of business strategy.
en
1-3
© McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of
tia
McGraw Hill LLC.
l
, C
C
on
on
strategic marketing The long-term, firm-level commitment to investing in marketing—
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supported at the highest organization level—for the purpose of enhancing organizational
performance.
en
en
market creation Approaches that drive the market toward fulfilling a whole new set of needs
that customers did not realize was possible or feasible before.
tia
tia
marketing (little m) The dimension of marketing that focuses on the functional or operational
l
l
level of the organization.
tactical marketing Marketing activities that take place at the functional or operational level of a
firm.
marketing metrics Tools and processes designed to identify, track, evaluate, and provide key
benchmarks for improvement of marketing activities.
marketing analytics The practice of measuring, managing, and analyzing marketing
performance to maximize marketing effectiveness and optimize return on marketing investment
(ROMI).
C
return on marketing investment (ROMI) What impact an investment in marketing has on a
on
firm’s success, especially financially.
fid
APPLICATION QUESTIONS
en
1. Consider the various marketing misconceptions introduced in this chapter.
tia
a. Pick any two of the misconceptions and develop a specific example of each from your
l
own experience with firms and brands.
• Catchy and entertaining advertisements — or perhaps the opposite, incessant and
boring advertisements.
• Pushy salespeople trying to persuade someone to buy it right now.
• Famous brands and their celebrity spokespeople, such as Nike’s athlete endorsers.
• Product claims that turn out to be overstated or just plain false, causing doubt about
the trustworthiness of a company.
• Marketing departments ―own‖ an organization’s marketing initiative.
b. How will it be beneficial for a new marketing manager to understand the misconceptions
C
that exist about marketing?
on
Effective marketing management isn’t about buzzwords or quick fixes. In today’s business
milieu, the reality of marketing is that it is a central function and set of processes
fid
essential to any enterprise. Moreover, leading and managing the facets of marketing in
en
1-4
© McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of
tia
McGraw Hill LLC.
l
C
on
on
fid
fid
Solution Manual for Marketing Management 4th EditionMark Johnston Greg
Marshall
en
en
tia
tia
Chapter 01
l
l
Marketing in Today’s Business Milieu
LEARNING OBJECTIVES
LO 1-1 Identify typical misconceptions about marketing, why they persist, and the resulting
challenges for marketing management.
LO 1-2 Define what marketing and marketing management really are and how they contribute
to a firm’s success.
C
LO 1-3 Appreciate how marketing has evolved from its early roots to be practiced as it is today.
on
LO 1-4 Recognize the impact of key change drivers on the future of marketing.
fid
CHAPTER OUTLINE
en
I. WELCOME TO MARKETING MANAGEMENT
tia
II. MARKETING MISCONCEPTIONS
l
A. Behind the Misconceptions
1. Marketing Is Highly Visible by Nature
2. Marketing Is More Than Buzzwords
B. Beyond the Misconceptions and Toward the Reality of Modern Marketing
III. DEFINING MARKETING
A. Value and Exchange Are Core Marketing Concepts
C
B. A New Agenda for Marketing
on
IV. MARKETING’S ROOTS AND EVOLUTION
fid
A. Pre-Industrial Revolution
en
1-1
© McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of
tia
McGraw Hill LLC.
l
,C
C
on
on
B. Focus on Production and Products
fid
fid
C. Focus on Selling
en
en
D. Advent of the Marketing Concept
tia
tia
l 1. The Marketing Mix
l
E. Post-Marketing Concept Approaches
1. Differentiation Orientation
2. Market Orientation
3. Relationship Orientation
4. One-to-One Marketing
V. CHANGE DRIVERS IMPACTING THE FUTURE OF MARKETING
C
A. Shift to Product Glut and Customer Shortage
on
B. Shift in Information Power from Marketer to Customer
fid
C. Shift in Generational Values and Preferences
D. Shift to Distinguishing Marketing (Big M) from marketing (little m)
en
1. Marketing (Big M)
tia
2. marketing (little m)
l
E. Shift to Justifying the Relevance and Payback of the Marketing Investment
VI. YOUR MARKETING MANAGEMENT JOURNEY BEGINS
VII. SUMMARY
KEY TERMS
C
marketing management The leading and managing of the facets of marketing to improve
individual, unit, and organizational performance.
on
marketing’s stakeholders Any person or entity inside or outside a firm with whom marketing
fid
interacts, impacts, and is impacted by.
en
1-2
© McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of
tia
McGraw Hill LLC.
l
,C
C
on
on
societal marketing The concept that, at the broadest level, members of society at large can be
fid
fid
viewed as a stakeholder for marketing.
sustainability The practicing of business that meet humanity’s needs without harming future
en
en
generations.
tia
tia
value A ratio of the bundle of benefits a customer receives from an offering compared to the
costs incurred by the customer in acquiring that bundle of benefits.
l
l
exchange The giving up of something of value for something desired.
production orientation The maximization of production capacity through improvements in
products and production activities without much regard for what is going on in the marketplace.
sales orientation The increase of sales and consequently production capacity utilization by
having salespeople ―push‖ product into the hands of customers.
marketing concept Business philosophy that emphasizes an organization-wide customer
orientation with the objective of achieving long-run profits.
C
marketing mix (4Ps of marketing) Product, price, place, and promotion—the fundamental
elements that comprise the marketer’s tool kit that can be developed in unique combinations to
on
set the product or brand apart from the competition.
fid
offering A product or service that delivers value to satisfy a need or want.
en
solution A bundle of benefits from an offering that solves a problem or fills a need of a
customer.
tia
differentiation Communicating and delivering value in different ways to different customer
groups.
l
customer orientation Placing the customer at the core of all aspects of the enterprise.
market orientation The implementation of the marketing concept, based on the understanding
of competitors and listening to the market.
relationship orientation Investing in keeping and cultivating profitable current customers
instead of constantly having to invest in gaining new ones.
one-to-one marketing Directing energy and resources into establishing a learning relationship
with each customer and connecting that knowledge with the firm’s production and service
capabilities to fulfill that customer’s needs in as custom a manner as possible.
C
on
mass customization Combining flexible manufacturing with flexible marketing to greatly
enhance customer choice.
fid
Marketing (Big M) The dimension of marketing that focuses on external forces that affect the
organization and serves as the driver of business strategy.
en
1-3
© McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of
tia
McGraw Hill LLC.
l
, C
C
on
on
strategic marketing The long-term, firm-level commitment to investing in marketing—
fid
fid
supported at the highest organization level—for the purpose of enhancing organizational
performance.
en
en
market creation Approaches that drive the market toward fulfilling a whole new set of needs
that customers did not realize was possible or feasible before.
tia
tia
marketing (little m) The dimension of marketing that focuses on the functional or operational
l
l
level of the organization.
tactical marketing Marketing activities that take place at the functional or operational level of a
firm.
marketing metrics Tools and processes designed to identify, track, evaluate, and provide key
benchmarks for improvement of marketing activities.
marketing analytics The practice of measuring, managing, and analyzing marketing
performance to maximize marketing effectiveness and optimize return on marketing investment
(ROMI).
C
return on marketing investment (ROMI) What impact an investment in marketing has on a
on
firm’s success, especially financially.
fid
APPLICATION QUESTIONS
en
1. Consider the various marketing misconceptions introduced in this chapter.
tia
a. Pick any two of the misconceptions and develop a specific example of each from your
l
own experience with firms and brands.
• Catchy and entertaining advertisements — or perhaps the opposite, incessant and
boring advertisements.
• Pushy salespeople trying to persuade someone to buy it right now.
• Famous brands and their celebrity spokespeople, such as Nike’s athlete endorsers.
• Product claims that turn out to be overstated or just plain false, causing doubt about
the trustworthiness of a company.
• Marketing departments ―own‖ an organization’s marketing initiative.
b. How will it be beneficial for a new marketing manager to understand the misconceptions
C
that exist about marketing?
on
Effective marketing management isn’t about buzzwords or quick fixes. In today’s business
milieu, the reality of marketing is that it is a central function and set of processes
fid
essential to any enterprise. Moreover, leading and managing the facets of marketing in
en
1-4
© McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of
tia
McGraw Hill LLC.
l
