TOOLS FOR INSTRUCTORS

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Chapter One: Overview of Marketing

TOOLS FOR INSTRUCTORS

• Learning Objectives • Annotated Chapter Outline with Instructor’s Notes/Teaching Tips • Answers to End of Chapter Learning Aids Marketing Application Questions Marketing Digitally • Chapter Case Study • Video Activities • Additional Teaching Tips • Newsletter Teaching Aid

Learning Objectives

• Define the role of marketing and explain its core concepts
• Describe how marketers create value for a product or service
• Summarize the four orientations of marketing
• Understand the importance of marketing both within and outside the firm

Annotated Chapter Outline Instructor’s Notes

Opening Vignette: Hydro Flask

Today many people carry water bottles with them every day. Consumers have turned away from traditional plastic bottles, demanding higher quality, BPA free, reusable bottles. With numerous types of water bottles on the market, brands need to clearly communicate the features and benefits of their products, e.g., keep water cold and fresh longer, protect the planet. Clear communication efforts can show consumers the value their products offer.

Ask students: Describe the value water bottle

maker Hydro Flask provides customers. What do you consider are the main reasons for its growth and success?

Answer: (1) It positions its products as supporting

a healthy lifestyle and a healthy planet to appeal to customers, (2) it offers the ability to personalize the bottles, and (3) it embraces social media to attract new users and spread its message.

LO1: What is Marketing?

• Marketing is a set of business practices

designed to plan for and present an organization’s products or services in ways that build effective customer relationships (The Canadian Marketing Association

Marketing is used to create value in products & services.

The interrelated marketing mix – or the 4 P’s – creates, transacts, communicates & delivers value.

(Marketing, 6th Canadian Edition, 6e Dhruv Grewal, Michael Levy, Shirley Lichti) (instructor Manual, For Complete File, Download link at the end of this File) 1 / 4

Chapter 01 - Overview of Marketing 1-2 Annotated Chapter Outline Instructor’s Notes

• The marketing plan is a written document

that specifies marketing activities in terms of the 4 P’s, action programs & projected or pro forma income & other financial statements, for a specific period of time.

Good marketing is not a random activity and it requires thoughtful planning with an emphasis on the ethical implications of decisions made on the consumer and society in general.

Marketing is NOT just about buyers and sellers exchanging money for goods and services or about making a profit.

Group activity: The chapter opens by pointing out

that people engage in marketing every day as both buyers and sellers. Have students make a list of all marketing transactions in which they were involved today. List the types of activities on the board and categorize them as buy or sell.

***Ethics There is a strong ethics orientation in this book. At the start of the semester, stress that marketers’ actions have ethical implications that must be understood and addressed.

***Value is a key theme throughout the textbook, that is, creating value for both a firm and its customers. A more in-depth discussion follows later in the chapter.Discuss how the same product can provide lots of value to one consumer but little or no value to another. Use the example of a recent movie that split the audience, e.g., people either love or hate Tom Holland in “Spider-Man No Way Home.” Why?

• Marketing consists of six core aspects that

work together to create value for customers and the firm.

For a shorter lecture, one slide can be used to introduce all six core aspects. More detailed slides can be used for expanded discussion if desired.

• Marketing Is About Satisfying Customers’

Needs and Wants

• The marketplace can be defined as the

world of trade or more narrowly defined by segments.

• It is often not practical to sell the firm’s

product to everyone, so marketers focus on the groups or segments that are most profitable (referred to as the market).

Ask students if they have ever thought about the number of brands and types of toothpaste available.

Group activity: Ask students to list the types and

brands of toothpaste they know. Then ask: Why do

you think there are so many? Point out that the

benefits of each one differ. Ask: Are these

differences based on needs or wants or a combination of both?

• Marketing Entails an Exchange.
• Exchange refers to the trade of things of

value between the buyer and seller so that each is better off as a result.

Ask students to discuss how these exchanges occur in nonprofit settings. What is the exchange at a museum or a lecture?

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Chapter 01 - Overview of Marketing 1-3 Annotated Chapter Outline Instructor’s Notes You might also use the example of a swap or barter page. (An excellent example of swaps can be found on the First Canadian Barter Exchange

website http://barterfirst.com/).

Each party to the exchange gives up something of

value: The customer gives up not only money but

also time and information, and the firm gives up the good or service. The exchange in the end is mutually beneficial.

You can visit the Chapters/Indigo website to initiate a discussion of what customers give up in exchange for the company’s products.

http://www.chapters.indigo.ca/home/

LO2: Marketing Requires Marketing Mix

Decisions The marketing mix (4Ps) of product, price, place, and promotion refers to the controllable set of activities the firm uses to respond to the wants and needs of its target market.

Stress that the concept of the 4Ps is fundamental to marketing. Remind students that “4Ps” and “the marketing mix” may be used interchangeably to refer to product, price, place, and promotion.

Products: Creating value

• The fundamental purpose of the firm

is to create value by developing a variety of offerings, including goods, services, and ideas, to satisfy consumer needs.

• Goods are items that you can

physically touch.

• Services are intangible customer

benefits produced by people or machines that cannot be separated from the producer.

• Ideas include thoughts, opinions,

philosophies, and intellectual concepts that also can be marketed.

Students often can relate to goods and services, but the marketing of ideas is a new concept to them. Use the example of drunk- driving prevention.

Ask: How is that idea marketed?

Organizations such as Mothers Against Drunk Driving or Students Against Drunk Driving often receive support from brewers and distillers in promoting responsible drinking and safe driving.

Ask students: What is the exchange these groups

are asking consumers to enter?

Answer: They want you to consume alcohol in a

manner that is consistent with safety, which means giving up some consumption or drinking responsibly – do not get behind the wheel if you drink.

Price: Transacting value This is a good opportunity to remind students that

the price paid is more than cash. Also tell them that later in the semester, you will look at how 3 / 4

Chapter 01 - Overview of Marketing 1-4 Annotated Chapter Outline Instructor’s Notes Price refers to everything the buyer gives up—money, time, and energy— in exchange for the product.

marketers view price, which often differs from the conceptions they may have been taught in finance courses about how to determine price.

Place: Delivering value.

Place includes all activities undertaken to get the product to the right customer when that customer wants it.

Of all the areas in marketing, place is the least recognizable in relation to marketing. Students tend not to think about the importance of getting goods from manufacturers to consumers, which currently requires global approaches.

This semester, they will learn about marketing’s role in this crucial process.

Distribution strategy can be complex and requires consideration of many factors, as well as a high level of coordination.

Promotion: Communicating value

Promotion is communication by a marketer that informs, persuades, and reminds potential buyers about a product or service to influence their opinions or elicit a response.

Ask students to identify the target audience for an ad from Chapter 1. What value proposition is it offering and to which audience?

Answer: For example, the Street Smart ad is

targeted at drivers to help them understand why they need to give cyclists room on the road. The ad promotes ideas, in this case, bicycle safety.

Marketing Can Be Performed by Both Individuals and Organizations

A. B to C: Business-to- consumer marketing.

B. B to B: Business-to-business marketing.

C. C to C: Consumer-to-consumer marketing.

Students often fail to consider that the products they purchase have changed hands before. Offer

them the following example: The computer you

recently purchased from Best Buy (B to C) was purchased by Best Buy from the manufacturer (B to B). If you sell your computer to your roommate, you have engaged in C to C selling. Thus, the same product might be a part of all three types of marketing.

Marketing impacts many stakeholders:

• Both for-profit and not-for-profit entities

use marketing.

• Developing economies can benefit from

marketing.

• Entire industries can benefit from

marketing.

An interesting example of a nonprofit that makes extensive use of marketing is Heifer International

(http://www.heifer.org/) Consumers choose from

a series of options, ranging from a goat to an ark full of animals, to donate to a family in need, who uses the donation as a source of both income and food, which means the recipients have access to new marketing opportunities.

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