Marketing 5th Edition Charles W. Lamb Joe F. HairCarl McDaniel Marc Boivin David Gaudet Kim Snow Ins

Instructor Solution MANUAL For MKTG, 5th Edition Charles W. LambJoe F. HairCarl McDanielMarc BoivinDavid GaudetKim Snow Chapter 1-19

Chapter 1 An Introduction to Marketing Learning Outcomes 1-1

Define marketing

The term marketing is used in a variety of ways and misrepresented in many others. But, without marketing, there is no customer. Marketing is about understanding the needs of consumers.

Marketing helps to shape the products and services of a firm based on an understanding of what the customer is looking for. The goal of marketing is summarized nicely by the marketing concept. At its core, the marketing concept is about offering the customer what they are looking for. It includes the following: 

Focus on customer needs.



Integrate all organization’s activities, including production, to satisfy customers’ wants.



Achieve long-term goals for the organization by satisfying customer wants and needs legally and responsibly.

Marketing is becoming a conversation with the customer rather than a distraction.

1-2

Describe the evolution of marketing

The misconceptions about marketing come from the evolution of how marketing has been used in firms for more than a century. Today’s marketing has resulted from many shifts in both the field of marketing and society. Some prior perspectives on marketing help to provide a better understanding of how marketing is perceived today.

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a. The production era focuses on marketing as a messenger. It focuses on internal capability of the firm, which is best reflected by the questions ―What can we do best?‖ and ―What can our engineers design?‖ rather than by asking ―What do our customers need and want?‖ and ―How best can we provide solutions to our customers?‖ b. The sales era is highlighted by the increased power of consumer choice. It assumes that buyers resist purchasing items that are not essential and that consumers must be persuaded to buy through aggressive sales techniques. c. The marketing company era is highlighted by the coordination of marketing activities— advertising, sales, and public relations—into one department in an organization. It is based on the ―marketing concept‖ that meeting customers’ needs and wants through innovative products and services while meeting organizational goals is the best approach.

Responsiveness to customer wants is the central focus of the marketing orientation. In this orientation, customers are grouped into market segments, with marketing professionals tasked with understanding their customer before making their moves. d. The societal marketing era holds that the firm should strive to satisfy customer needs and wants while meeting organizational objectives and preserving or enhancing both the individual’s and society’s long-term best interests. It examines the longer-term impacts on the customer and the environment when customers seek to satisfy needs. e. The relationship marketing era is about developing a real and sustainable relationship with the customer. Marketing has gone from interruption to interaction. As companies look to move away from interruption, they see the benefit of looking for a series of transactions that turn into a true interaction. Engagement is the focus of this era, aided by the use of two essential customer-based strategies: customer satisfaction and relationship marketing.

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Customer satisfaction is the evaluation of a good or service in terms of whether that good or service has met customer expectations. Retaining customers is considerably less expensive then attracting new. Customer relationship management is an important result of the relationship marketing era and best serves the ultimate goal of meeting the needs of customers and building relationships.

1-3 Define key marketing terms Exchange—a desired outcome of marketing, people giving up one thing to receive another thing they would rather have Customer value—the relationship between the benefits and the sacrifice necessary to obtain those benefits Market segments—groups of individuals, families, or companies that are placed together because it is believed that they share similar needs Building relationships—the best companies view attracting new customers as the launching point for developing and enhancing a long-term relationship Marketing mix—also referred to as the 4Ps of marketing: product, price, place, and promotion.

Each must be studied and developed to create a proper strategy to go after a market segment.

1-4

Explain why marketing matters

Because marketing is part of every company. No matter what, you will have customers, and if you don’t concern yourself with customers, you will cease to have any.

Because marketing is a rewarding career. Marketing can provide both financial and personal rewards. Marketing exists in many industries; there is no ―Big 6‖ of marketing companies, such as there is in accounting. Marketing careers are broad and rewarding—it’s a matter of taking initiative to find the opportunities.

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Because marketing provides an important skill set. Even if your career is not in the field of marketing, you will still need to sell yourself to a future employer.

Marketing is part of everyday life. You will see how needs, value, and other basic marketing concepts can be applied to almost any part of your life.

Glossary Terms customer satisfaction customer value exchange marketing marketing company era need production era relationship marketing sales era societal marketing era

Lesson Plan for Lecture Brief Outline with Suggested PowerPoint Slides Slides are available at login.cengage.com.

LEARNING OUTCOMES AND TOPICS

POWERPOINT SLIDES

Define marketing 1-1 What Is Marketing?

Describe the evolution of marketing 1-2 The Evolution of Marketing 1-2a The Production Era 1-2b The Sales Era 1-2c The Marketing Company Era 1-2d Societal Marketing Era 1-2e Relationship Marketing Era Define key marketing terms 1-3 Key Marketing Terms 1-3a Exchange Explain why marketing matters 1-4 Why Marketing Matters 1-4a Marketing Is Part of Every Company 1-4b Marketing Is a Rewarding Career

Slides 3–5

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Slides 17–22

Slide 24

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LEARNING OUTCOMES AND TOPICS

POWERPOINT SLIDES

1-4c Marketing Provides an Important Skill Set 1-4d Marketing Is Part of Everyday Life

Lesson Plan for Group Work Activities in class that relate to group work are a good way to apply the concepts in each chapter and a meaningful way to engage students in active learning in the classroom. With each activity, it is at the discretion of the instructor to determine how to best apply the group work that is provided. This will likely depend on factors such as classroom size, classroom layout, and overall delivery method. Each group activity below has a task that is detailed, followed by an overview of the outcome that results from engaging in the activity.

Activity #1 The following group in-class exercise can be used to illustrate the differences between the various stages in the evolution of the marketing orientation.

Task Students should be placed in groups of four (or whatever number works for your class). Each group will be assigned one of the four eras in the evolution of marketing. Each group is tasked with creating a salesperson scenario—two people will serve as the seller and two as the buyer.

Groups are to create a scenario based on the marketing eras provided by their instructor. Each group of four will then present a one- to two-minute presentation to the rest of the class, and the audience must guess which stage they were assigned, along with specific reasons for their choice. The product that they are marketing is a new air-filtration system model with a highefficiency particulate air (HEPA) filter, which is capable of capturing at least 97.97 percent of particles as small as 0.3 microns—smaller than the size of most airborne pathogens. The system

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is portable and can be especially helpful to someone living with a person who has contracted the COVID-19 virus. For example, it could be used in communal-living environments and private homes.

Outcomes Marketing is best learned by a combination of individual and group learning methods. This activity compels students to work together in a challenging and creative way. For this activity, groups should clearly use material from the textbook and class notes in order to create their scenario. The other added outcome of this activity is providing an opportunity to build presentation skills in a less formal environment.

Activity #2 Task First, divide the class into groups of four or five people, depending on class size (for an online class, consider using breakout rooms). Then, ask students to assume that they have just purchased an artisan chocolate manufacturer with its own retail outlets. The chocolate-making equipment and other required systems (inventory management, customer relationship management, etc.,) are in excellent shape, and the personnel needed to run the factory are readily available. But, before jumping into production, each group needs to determine how to answer a number of questions that relate to marketing.

The following suggested questions should be provided to the students. You should decide which questions are most relevant to your discussion, but it is important not to provide the whole following list: 1. What are the needs of consumers as they relate to chocolate?

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2. How many different categories of attributes are there for chocolate? (Types, flavours, shapes, sizes, purpose, price, and location to buy are factors.)

3. Which category of consumer does this firm want to sell to? Where are these consumers located?

4. What are the environmental trends as they relate to the consumption of chocolate?

5. Who is the competition?

6. Where do customers shop for artisan chocolate?

7. What are the price ranges in the segment?

8. How will the company communicate with potential customers?

9. How will the chocolates be packaged?

10. How will the firm provide customer service?

12. What is the best way to build long-term relationships with customers?

The most important aspect of this exercise is to ensure that groups do NOT talk with each other about their answers. They should be asked to present their findings either in a small report or presentation.

Outcomes The aim of this activity is for students to understand how broad and far-reaching marketing truly has become. Student groups should be tasked with answering questions from the exercise, and a good follow-up exercise would be to ask students which concepts from Chapter 1 best apply to the questions that they were asked to answer. This is a good way to tie back content to the activity and have students see the wide array of marketing responsibilities that are charged to a company.

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As mentioned in the task for this activity, it is important for student groups to work on this assignment independently. As each group presents, it should become quite clear that their answers won’t match: some might have segmented for gift giving, other groups might have focused on a special events (Christmas, Easter) and some on chocolate connoisseurs. This part of the exercise is an excellent chance to discuss with the group how important segmentation is in marketing and how it drives cohesive marketing decisions.

Students should have a strong understanding of the complexity of marketing after this activity has been completed. As an instructor, you can choose to continue using this example in future classes. For example, when you discuss pricing later in the term, you can go back and see what groups wrote about pricing and how much their answers would be different once they understand the complexities of pricing strategies and tactics.

Great Ideas for Teaching Chapter 1 Great Idea #1 Good marketing makes the company look smart. Great marketing makes the customer feel smart.

—Joe Chrenov This is the quote that begins the chapter. A good individual or group activity is to have students do some research on marketing today, then explain in their own words why this quote makes so much sense as the lead quote to this chapter and to this introductory study of marketing.

Once students have completed their research, it would be useful to share with them other databases and online resources available through an academic library.

At the end of the paper, students should briefly describe why it is important to understand what marketing is all about and why marketing is all about the customer.

Great Idea #2

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Discussion Board Topics to Encourage Participation Discussion board questions provided to encourage students to engage in thinking and writing about the content of the course usually take the form of a provocative statement inviting response. An example of this would be ―All PR is good PR.‖ Discussion topics such as this one are abstract and often require that the instructor provide an initial reply to show students what is expected of them in their own replies. For students with limited work experience, this approach may be quite appropriate. For adult students with extensive experience as employees and consumers, however, the abstract nature of such topics can be frustrating.

Therefore, it can be helpful for students to be part of contributing to and reading online postings that pose a challenging and unique question that does reside in the textbook.

Each question has three parts: 1. First, there is a sentence or two from the students’ textbook introducing the topic. By using the text author’s own words, students are enabled to locate relevant material in the text more easily, the text content is reinforced, and confusion resulting from use of variant terms or expressions is minimized.

2. Second, there is a reference to section in the text that students should review before proceeding. Since the goal of the exercise is for students to apply the course content to their own experiences, reviewing the content first is important.

3. Third, there is a request for the student to think about or remember some specific situation in their experience to which they can apply the text material, and a question or questions for them to address in their reply.

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The following example is for Chapter 1 of MKTG, 5Ce. The three parts have been separated here so that they are more readily visible: 1. Five competing philosophies strongly influence an organization’s marketing activities. These philosophies are commonly referred to as the production era, sales era, market company era, societal marketing era, and relationship marketing era.

2. Review these philosophies in section 1-2 The Evolution of Marketing in the text.

3. Then, describe an experience you’ve had recently as a customer or employee that illustrates one of these philosophies.

If you have a participation quotient as part of a class deliverable, you can track student participation and engagement in the discussion boards. It is important to encourage quality rather than quantity, and students should be reflecting and researching before replying to questions that have been posted on a discussion board.

Instructors have the choice of using discussion boards within the Learning Management Systems (LMS) of their institution, or you can use discussion boards within MindTap. Contact your Learning Solutions Consultant (LSC) for more information on, and help with, MindTap.

Great Idea #3 Is a marketing career for me?

For many of your students, marketing is not a career choice. They are taking the course as part of their business degree but have no intention of pursuing a career in the field. Yet, marketing skills are often considered life skills that will enhance many aspects of a person’s life and/or career.

Have the students complete a short research project that requires them to learn what skills are required in a good marketer and then summarize in their paper/presentation what value they believe they will get out of this introductory marketing course. It would be interesting to have

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them answer theses questions: Should a chief financial officer have a marketing background?

Should a chief information officer have a marketing background? Should someone pursuing a career in financial services have a marketing background? Should someone who wants to pursue a career in the non-profit sector take a marketing course? What about those who end up in healthcare start-up companies—should they have an understanding of, and skills in, marketing?

The point of the exercise is to drive home that marketing is the hub of the wheel in organizations because of the customer focus, and an understanding of marketing will enhance career success in many different fields.

Chapter 2 The Marketing Environment, Social Responsibility, and Ethics Learning Outcomes 2-1

Discuss the external environment of marketing, and explain how it

affects a company The external marketing environment consists of social, economic, technological, regulatory, and competitive variables. Marketers generally cannot control the elements of the external

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environment. Instead, they must understand how the external environment is changing and the impact of that change on the target market. Marketing managers have the ability, now more than ever, to anticipate changes in the environment and proactively revise the marketing mix. Then, marketing managers can create a marketing mix to effectively meet the needs of target customers within the larger context of the external environment.

2-2

Describe the competitive factors that affect marketing

The competitive environment encompasses the number of competitors a firm must face, the relative size of the competitors, and the degree of interdependence within the industry. Declining population growth, rising costs, and shortages of resources have heightened domestic competition. The forces in Porter’s five forces model highlight the complexity and pervasiveness of competitive forces that exist for any company in their chosen marketplace. Big data, analytics, and social media are used companies to gather information on competitors. The problem is that when companies do that, it is also being viewed by its competitors, creating an obvious dilemma.

2-3

Describe the regulatory factors that affect marketing

All marketing activities are subject to provincial and federal laws and the rulings of regulatory agencies. Marketers are responsible for remaining aware of and abiding by such regulations. In Canada, the Constitution divides legal jurisdiction between the provincial legislatures and the federal government, thus allowing each level of government to legislate in areas for which they have been given responsibility. For example, Quebec’s Bill 101 restricts the use of English in certain advertising and promotion material, and this requires national businesses to meet the provincial as well as federal laws (refer to Exhibit 2.3 in the book).

2-4

Describe the economic factors that affect marketing

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Economic factors in the environment affect consumer demand. The four economic areas of greatest concern to most marketers are consumers’ incomes, purchasing power, inflation, and recession. Marketers follow trends in consumer income to forecast what types of products will be demanded. Purchasing power is measured by comparing income to the relative cost of a set standard of goods and services in different geographic areas, usually referred to as the cost of living. Inflation, a period of rising prices, tends to make consumers less brand loyal and likely to stock up on sale items. Increased incomes don’t mean a higher standard of living, as evidenced by the increasing problem of consumer debt in Canada. A recession is a period of economic activity characterized by negative growth—when the GDP falls for two consecutive quarters.

2-5

Describe the social factors that affect marketing

Within the external environment, social factors are perhaps the most difficult for marketers to anticipate. Social factors include demographics, attitudes, values, and lifestyles. Social factors influence the products people buy, the prices paid for products, the effectiveness of specific promotions, and how, where, and when people expect to purchase products. Several major social trends are currently shaping marketing strategies. For example, people of all ages have a broader range of interests, defying traditional consumer profiles. Canadian consumers are piecing together component lifestyles, and while the role of family hasn’t changed, the makeup of the Canadian family has.

2-6

Explain the importance to marketing managers of current demographic

trends Demography is the study of people’s vital statistics, such as their age, ethnicity, and location.

Today, there are several demographic patterns that are influencing marketing mixes. It is necessary to tailor mixes to age groups as each generation enters a life stage with its own tastes

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and biases, and tailoring products to what customers value is key to sales. The cohorts have been named Generation Z, Generation Y/millennials, Generation X, and baby boomers. Each cohort has its own needs, values, and consumption patterns. Canada is a large country with a relatively small population that was, historically, spread out between rural and urban areas. Since the mid1970s, however, the population has shifted out of rural areas so that now over 82 percent of Canadians are considered to be urban dwellers.

Multiculturalism occurs when all major ethnic groups in an area are roughly equally represented. Growing multiculturalism makes the marketer’s task more challenging. The population of Canada is becoming increasingly diverse. Immigration is an important source of population growth needed to sustain and improve Canada’s economic growth.

2-7

Describe technological factors that affect marketing

Monitoring new technology is essential to keeping up with competitors in today’s marketing environment. Canada excels in basic research and, in recent years, has dramatically improved its track record in applied research. Information technology and the Internet have been driving increased Canadian productivity for the past decade. Without innovation, Canadian companies can’t compete in global markets.

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2-8

Discuss the role of corporate social responsibility and ethics in business

Corporate social responsibility is a business’s concern for social and environmental welfare.

With due awareness and concern of these and other related issues, society has forced companies to pursue the triple bottom line: profitability, care for the planet, and care for people. Thus, at a high level, CSR has evolved into a core value of any successful company, while at a nuts-andbolts level, it is indeed a cost of doing business. Business ethics may be viewed as a subset of the values of society as a whole. The ethical conduct of businesspeople is shaped by societal elements, including family, education, religion, and social movements. As members of society, businesspeople are morally obligated to consider the ethical implications of their decisions.

Glossary Terms applied research baby boomers basic research code of ethics Competition Bureau component lifestyles corporate social responsibility demography discretionary income disposable income environmental factors ethics Generation X

Generation Y Generation Z green marketing gross income inflation morals purchasing power pyramid of corporate social responsibility recession self-regulation social acceleration target market triple bottom line

Lesson Plan for Lecture Brief Outline with Suggested PowerPoint Slides Slides are available at login.cengage.com.

LEARNING OUTCOMES AND TOPICS

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POWERPOINT SLIDES

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LEARNING OUTCOMES AND TOPICS

POWERPOINT SLIDES

Discuss the external environment of marketing and explain how it affects a company 2-1 The External Marketing Environment 2-1a Understanding the External Environment Describe the competitive factors that affect marketing 2-2 Competitive Factors Describe the regulatory factors that affect marketing 2-3 Regulatory Factors 2-3a Federal Legislation 2-3b Provincial and Territorial Laws 2-3c Self-Regulation Describe the economic factors that affect marketing 2-4 Economic Factors 2-4a Consumers’ Incomes 2-4b Purchasing Power 2-4c Inflation 2-4d Recession Describe the social factors that affect marketing 2-5 Social Factors 2-5a Marketing-Oriented Values 2-5b The Growth of Component Lifestyles 2-5c Families Today Explain the importance to marketing managers of current demographic trends 2-6 Demographic Factors 2-6a Generation Z 26b Generation Y 26c Generation X 2-6d Baby Boomers—A Mass Market 2-6e Population Shifts in Canada 2-6f Ethnic and Cultural Diversity Identify the impact of technology on a firm 2-7 Technological Factors 2-7a Research 2-7b Technology and the Future of Businesses Discuss the role of corporate social responsibility and ethics in business 2-8 Corporate Social Responsibility and Ethical Behaviour in Business 2-8a Growth of Social Responsibility 2-8b Green Marketing 2-8c Ethical Behaviour in Business 2-8d Morality and Business Ethics 2-8e Ethical Decision Making 2-8f Ethical Guidelines

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Slide 8 Slides 10–13

Slides 15–19

Slides 21–22

Slides 23–28

Slides 30–31

Slides 33–38

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Lesson Plan for Group Work Activities in class that relate to group work are a good way to apply the concepts in each chapter and a meaningful way to engage students in active learning in the classroom. With each activity, it is at the discretion of the instructor to determine how to best apply the group work that is provided. This will likely depend on factors such as classroom size, classroom layout, and overall delivery method. Each group activity below has a task that is detailed, followed by an overview of the outcome that results from engaging in the activity.

Activity #1 Task Understanding trends is an important skill involved with external environmental scanning. It is one thing to find the trends; it is another to discuss the implications. This activity focuses on purchasing trends of baby boomers as it relates to cars. Research has shown two different (if not divergent) trends: •

They want to buy practical cars (e.g., electric cars, like the Prius) that have a social impact.

•

They want to buy expensive cars (e.g., Mercedes) and impractical muscle trucks (e.g., Ford F150).

The class should be split in half, with one half of the class also broken out in groups ranging from three to six people, depending on class size. Depending on the assigned trend, students should research the reasons behind each trend. There should then be a class discussion on how each trend can be happening at the same time. The class discussion should look at nostalgia, purchasing power, and other environmental factors in this discussion.

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Outcomes The result of this activity should be that students become aware of the complexity of the external environment. Often when the external environment is presented in a textbook or class, it seems relatively straightforward how there are trends in defined areas: economic, regulatory, etc.

However, this exercise shows that there can be almost contradictory trends happening, thanks to the complex external environment that ends up having a distinct impact on the market. This exercise also compels students to understand the needs of a market segment that is very likely different than their cohort, and this empathy is helpful in many areas of marketing, including segmentation and external environmental scanning.

Activity #2 Task The impact of the uncontrollable environment was most clearly evident in 2020 as the coronavirus pandemic swept the world. Many countries experienced the devastating impact of the pandemic on businesses—in particular, in hospitality and restaurant businesses—as people of all ages stopped or were forced to stop eating out. Restaurant in-house seating capacity was severely limited, and people were simply frightened to get together or congregate. In addition to the restaurant business, the not-for-profit sector experienced huge declines in donations and revenue-generating capabilities. Companies cut back on giving, as events could not be executed due to crowd size limitations. As well, end-of-life celebrations were halted, thereby reducing inmemoriam donations, and individuals reduced their giving for fear of the economic fallout of the measures put in place to reduce the spread of the virus.

Separate the class into groups and have each group choose an industry impacted by the virus. Have each group discuss the impact on their industry of choice and how the industry

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responded. In addition, have the groups present a short evaluation of the response with recommendations for a possible recovery plan.

Outcomes The result of this activity should be that students become aware of the complexity of the external environment. Often when the external environment is presented in a textbook or class, it seems relatively straightforward, but somehow not real, until students are required to reflect on the concept as it relates to something that they themselves have experienced. By asking them to apply it to an industry of their choice, they will more clearly be able to reflect and understand the huge impact on organizations and the importance of understanding such impacts and managing for them.

Great Ideas for Teaching Chapter 2 Great Idea #1 Discussion Board Topics to Encourage Participation Refer to the Instructor’s Manual for Chapter 1 in the ―Great Ideas for Teaching‖ section to read about the benefits and details around discussion boards.

DISCUSSION BOARD TOPIC A 1. Dual-career families have a poverty of time, with few hours to do anything but work and caregiving, handle family situations, do housework, shop, sleep, and eat.

2. Review the marketing implications of this poverty of time for today’s family discussed in section 2-5c Families Today in the text.

3. Then, describe how your poverty of time has affected how you shop and what you buy.

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DISCUSSION BOARD TOPIC B 1. Canada is, without question, a multicultural society. More than 320,000 immigrants arrived in Canada between July 2015 and July 2016. Close to three-quarters of these arrivals are classified as visible minorities. By 2031, Statistics Canada projects that the visible minority population will account for around 30 percent of the country’s population.

2. Review the material in section 2-6f Ethnic and Cultural Diversity in the text.

3. Then, describe how this trend affects the ads you see and the products you buy.

Great Idea #2 The retail book industry has been heavily affected by the entrance of online retailers like Amazon, online reading habits via electronic devices, and big box stores such as Walmart and Costco. Have students complete a thorough review of the retail book industry in Canada. They will research the trends that have impacted growth, the changing competitive environment, and social and cultural shifts, and then recommend how a small book retailer in a midsized urban city in Canada could adapt its marketing strategy to survive.

Great Idea #3 Using the information gathered in Great Idea #2, each student should use Porter’s five forces model to assess the retail book industry. What key insights did students gain by using this structured model? How can a firm in the book publishing industry use the student’s assessment of the retail book industry in their marketing strategy and planning activities?

Chapter 3 Strategic Planning for Competitive Advantage Learning Outcomes

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3-1

Explain the importance of strategic planning and a business mission

statement Business planning happens in an organization at the strategic and tactical levels. It is the process of anticipating future events and determining strategies to achieve organizational objectives in the future. Strategic marketing planning is the leadership and managerial process of establishing the organization’s objectives and then determining how to achieve them given resources and the marketing environment. The goal of strategic planning is long-run profitability and growth.

Strategic decisions require long-term resource commitment. Strategic planning takes place on three levels: (1) corporate, (2) business unit, and (3) marketing. Corporate planning leads to objectives for business and marketing-level planning that address issues related to when, where, how, and against whom to compete.

Business planning is undertaken at the strategic business unit (SBU) level. SBUs are a group of related businesses with a distinct mission, specific targets, control over resources, its own competitors, and plans independent of other SBUs. Marketing planning activities are aimed at a target and involve decisions on the marketing mix. Corporate planning guides business and marketing planning, but it is a two-way street.

Strategic decisions are made at all three levels of planning, but tactical decisions are limited to the implementation of the marketing plan.

The process of strategic marketing planning is accomplished through a strategic plan that addresses all three levels of planning (refer to Exhibit 3.1 in the text).

The foundation of any marketing plan is the firm’s mission statement, which answers the question ―What value do we provide for the consumer?‖ The mission statement is based on a careful analysis of benefits sought by present and potential customers and analysis of existing

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and anticipated environmental conditions. The firm’s long-term vision, embodied in the mission statement, establishes boundaries for all subsequent decisions, objectives, and strategies. A mission statement should focus on the market or markets the organization is attempting to serve rather than on the good or service offered. Separate mission statements can exist for each SBU within the organization.

3-2

Describe how to conduct business portfolio analysis

To set an organization’s strategic direction, businesses must thoroughly understand their current environment and any potential environment in which they will be operating. This is accomplished by completing a SWOT analysis—a review of strengths and weaknesses, which are internal to the organization, and of opportunities and threats, which are external to the organization. (Refer to Exhibit 3-2 in the text.) The process of environmental scanning is how external opportunities and threats are identified.

Once the organization decides on the portfolio of businesses, it must identify opportunities to grow the businesses. One method is the Ansoff strategic opportunity matrix.

(See Exhibit 3.3 in the text.) Selecting a strategic alternative to pursue depends on a company’s philosophy and culture.

3-3

Summarize how business planning is used for competitive advantage

Once an organization has completed an environmental scan and a SWOT, and has considered the most appropriate growth strategy, it needs to outline how it will implement and execute the strategy. More detailed planning is undertaken with the goal of identifying a sustainable competitive advantage—the core competencies. The competitive advantage is a set of unique features of a company and its products that are perceived by the target market as significant and superior to competition. They can be based on cost, product/service, or a market niche. The key

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to having a competitive advantage is the ability to sustain it. A sustainable competitive advantage is one that cannot be copied by competition.

3-4

Discuss marketing planning, identification of target markets, and the

elements of the marketing mix The third level of planning is aimed at developing a marketing strategy, which involves selecting target market(s) and the corresponding marketing mix. The process begins with establishing marketing objectives that should be specific, measurable, attainable, relevant, and time bound (SMART). Marketing objectives serve several functions.

The target market strategy identifies which market segment or segments to focus on. A market opportunity analysis (MOA) describes and estimates the size and sales potential of market segments that are of interest to the firm. In addition, an assessment of key competitors in these market segments is performed. After the market segments are described, one or more may be targeted by the firm by (1) appealing to the entire market with one marketing mix, (2) concentrating on one segment, or (3) appealing to multiple market segments by using multiple marketing mixes.

The term marketing mix refers to a unique blend of product, place (distribution), promotion, and pricing strategies designed to produce mutually satisfying exchanges with a target market. Products can be tangible goods, ideas, or services. Typically, the marketing mix starts with the product. Distribution is often referred to as place, thus giving us the four Ps of marketing: product, place, promotion, and price. Place or distribution strategies are concerned with making products available when and where customers want them. Promotion includes personal selling, advertising, sales promotion, and public relations. Price is what the buyer must give up to obtain a product.

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3-5

Explain why implementation, evaluation, and control of the marketing

plan are necessary After selecting strategic alternatives, plans should be implemented—that is, put into action. The plan should be evaluated to see whether it has achieved its objectives. The final step in the strategic planning process, control, is the alteration of plans if necessary. A marketing control system ensures that marketing goals are achieved within guidelines. The broadest control device available to marketing managers is the marketing audit, which is a thorough, systematic, and periodic evaluation of objectives, strategies, structure, and performance of the marketing organization.

3-6

Identify several techniques that help make strategic planning effective

Effective strategic planning should be treated as an ongoing process, not an annual exercise.

Effective planning requires continual attention, creativity, and management commitment. It should challenge existing assumptions about the firm and the environment. Perhaps the most critical element is the support and participation of top management. Their involvement in planning must be sincere and ongoing.

Glossary Terms competitive advantage control core competencies cost competitive advantage diversification environmental scanning evaluation experience curves four Ps implementation market development

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market opportunity analysis (MOA) market penetration marketing audit marketing environment marketing mix marketing objective marketing strategy mission statement niche competitive advantage planning product development

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product/service differentiation competitive advantage strategic business unit (SBU)

strategic planning sustainable competitive advantage SWOT analysis

Lesson Plan for Lecture Brief Outline with Suggested PowerPoint Slides Slides are available at login.cengage.com.

LEARNING OUTCOMES AND TOPICS

POWERPOINT SLIDES

Explain the importance of strategic planning and a business mission statement 3-1 The Importance of Strategic Planning 3-1a Strategic Business Units 3-1b Corporate Planning— Defining the Business Mission Describe how to conduct business portfolio analysis 3-2 Strategic Directions—Designing the Business Portfolio 3-2a Conducting a SWOT Analysis 3-2b Strategic Alternatives—Linking SWOT to Growth Strategies 3-2c Selecting a Strategic Alternative Summarize how business planning is used for competitive advantage 3-3 Business Planning for Competitive Advantage 3-3a Competitive Advantage 3-3b Cost Competitive Advantage 3-3c Product Differentiation Competitive Advantage 3-3d Niche Competitive Advantage 3-3e Building Sustainable Competitive Advantage Discuss marketing planning, identification of target markets, and the elements in the marketing mix 3-4 Marketing Planning 3-4a Setting Marketing Plan Objectives 3-4b Target Market Strategy 3-4c The Marketing Mix

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3-4d Product Strategies 3-4e Pricing Strategies 3-4f Place (Distribution Strategies) 3-4g Promotion Strategies Explain why implementation, evaluation, and control of the marketing plan are necessary 3-5 Marketing Plan Implementation, Evaluation, and Control— 3-5a Implementation 3-5b Evaluation and Control Identify several techniques that help make strategic planning effective 3-6 Effective Strategic Planning

Slides 30–32

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Lesson Plan for Group Work Activities in class that relate to group work are a good way to apply the concepts in each chapter and a meaningful way to engage students in active learning in the classroom. With each activity, it is at the discretion of the instructor to determine how to best apply the group work that is provided. This will likely depend on factors such as classroom size, classroom layout, and overall delivery method. Each group activity below has a task that is detailed, followed by an overview of the outcome that results from engaging in the activity.

Activity #1 Task This task will have students create a marketing plan framework in 20 minutes or less. Many Internet searches for ―marketing plans‖ offer quick and simple ways to create a marketing plan.

Clearly, the goal of a marketing plan is of such importance that ease and timeliness of creation probably shouldn’t be the most important factors. With that being said, it is still possible for students to get a taste of creating a marketing plan framework in a class setting. The first item

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needed for this activity is a model or image detailing the essential elements of a marketing plan.

See Exhibit 3.1 in the text.

Based on the exhibit, provide students with an appropriate company and mission statement. Another option for a marketing plan could be the one for your postsecondary institution. No matter what firm(s) you chose, make sure the organization is well known to the students.

Give students a brief scenario to help focus the marketing plan exercise. For example, assume you are using your school’s marketing plan. Provide a background such as ―School X is facing declining enrollment due to COVID-19 measures that have impacted teaching methods and the learning experience. The school is looking to go after younger students (in Grade 10) to entice them to choose School X when making their final postsecondary decision. Your job is to come up with an overall plan to reach these students and get them interested in your school.‖ Then, have students break out into groups and give them some time to create one market segment (in brief if they haven’t learned segmentation) and briefly describe it. From there, the groups should think about the products/services that would have to be offered to entice this segment, the pricing that should be offered, the way in which the product/service will be delivered, and the promotional tactics necessary to get the segment’s attention and lead it to take action. (If you use marketing strategy later in the semester, you can ask groups to use relevant course concepts. If earlier in the semester, having students use ideas and notions of these concepts is perfectly acceptable.)

Finally, ask students to write down a few ideas as to how they would go about implementing these ideas. How would they measure the effectiveness of their efforts?

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Outcomes This activity gets students to work through the ―big‖ concepts in marketing: segmentation, external analysis, and the marketing mix. While they may not get into the details of a marketing plan, understanding the basic building blocks is important for students.

Activity #2 Task Divide the class into groups of four or five students. Ask each group to come up with one wellknown company. Put the company names in a hat and have one member of each group draw a name. Then, give the groups 10 minutes to come up with a marketing strategy for their chosen companies. Each group will need to work together to get through the questions below.

The questions that should be considered for this activity include 1. What is the product?

2. Who is the target market?

3. According to what criteria is this market segmented?

4. What demographic factors affect the choice of this target?

5. What is the price strategy? Promotion strategy? Distribution strategy?

6. How is the product/service packaged? Why? 7. Who is the direct competition? Indirect competition? Which firms would be appropriate benchmarks for this firm? What competitive advantage does this product/service have?

8. How are environmental factors affecting the marketing of this product/service? Consider social, demographic, legal, political, economic, technological, and competitive factors.

9. Is the purchase of this product/service affected by psychological or social needs? Situational factors?

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10. Is the marketer attempting market penetration? Market development? Product development?

Diversification?

11. Does this company appear to have a total-quality management orientation? What is its reputation on overall quality when compared to the competition?

12. Is this firm known for being responsive to customers? Brainstorm a list of adjectives that describe this firm and its products. How does this list fit with the concept of value?

Depending on the size of the class and the instruction time remaining, a few groups can be chosen to present their strategies. The class can then vote on the best marketing strategy for each company. You can provide incentives by stating that the group with the highest rankings will have first choice of a company for a semester-long project.

Outcomes It should become clear during this activity that skills are being learned. Group work forms a big part of almost every marketing class. This group activity compels groups to get through the material by splitting up tasks and bringing things back together to form a cohesive marketing strategy. As well, groups should realize that some of the 12 questions are more important than others and that trying to get through all 12 in 10 minutes is impossible. This compels groups to start selectively choosing the best questions, thus honing their analytical skills as well.

Activity #3 Task Many businesses across Canada were significantly affected by the mandated lockdown and temporary closure of businesses put in place to help manage the spread of the COVID-19 virus.

While the impact of the virus on the health of Canadians varied by province and city, it appeared that all businesses, large and small, experienced significant challenges. One business that was

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significantly affected was the movie theatre business. Cineplex, Canada’s leading chain with 1695 screens across 165 locations in Canada, closed its doors in March 2020 and wasn’t able to reopen until early July. The ability to reopen profitably depended on the number of patrons that could be seated in a single auditorium, and that number varied by province. Further impacting its ability to emerge successfully from the crisis was the fact that Hollywood continued to push the release date of its biggest films down the calendar. So, while Cineplex could open, it didn’t have the usual inventory of films to draw consumers. Also, many would-be moviegoers were simply too scared to attend an indoor showing for fear of community spread of the virus. In addition, many much-anticipated films were being released directly to streaming platforms, allowing moviegoers the convenience of watching the latest releases from the comfort of their homes.

With the information provided above, instruct students to research online to learn more about the movie theatre business—for example, who the typical users/attendees are and what theatres had been doing pre-COVID to entice audiences. Instruct students to use what they have learned to complete an Ansoff’s strategic marketing opportunity matrix for Cineplex with the objective of trying to rebuild the industry in the wake of COVID. Outcomes This example asks students to do an environmental scan of the movie theatre industry within the context of an uncontrollable environmental issue that, while unexpected and out of management’s control, must be considered in light of the impact on profitability—both shortterm and long-term. Once the environmental scan is done, the exercise of completing Ansoff’s matrix will demonstrate the value of the tool in strategic marketing planning. This exercise can be done in groups or individually and ideally in advance of class discussion, so that all are

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prepared for thought-provoking and lively discussion on how to keep a business that has weathered many downturns alive for the future.

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Great Ideas for Teaching Chapter 3 Great Idea #1 Discussion Board Topics to Encourage Participation Refer to the Instructor’s Manual for Chapter 1 in the ―Great Ideas for Teaching‖ section to read about the benefits and details around discussion boards.

DISCUSSION BOARD TOPIC A 1. The term marketing mix refers to a unique blend of product, distribution, promotion, and pricing strategies designed to produce mutually satisfying exchanges with a target market.

2. Review the four parts of the marketing mix in the chapter (see section 3-4c The Marketing Mix).

3. Then, choose an idea, good, or service with which you are familiar and describe its marketing mix and how it resulted (or did not result) in a satisfying exchange for you.

Great Idea #2 Self SWOT To understand the assessment of the external market, a SWOT analysis can be done. But, instead of choosing a company, have the students choose themselves. Have them look at themselves as a ―product‖ or ―company‖ from the perspective of a future job seeker. There will be a variety of approaches students take to completing their SWOT; students enrolled in an intro marketing (marketing principles) course may be first-year students exploring a business major, second-year students fulfilling a requirement for an accounting degree, or even senior English majors taking ―something, anything!‖ at their parents’ urging to help them get a job. Have them analyze their strengths and weaknesses and assess the opportunities and threats inherent to their upcoming job

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search. This gets them thinking about the importance of planning to understanding one’s own internal organization as well as the external environment that influences internal decisions.

Great Idea #3 Mission Statement Jeopardy Guess the mission statement! Collect a number of mission statements from companies, but only show students the missions and not the company names. Have students guess the companies that are behind the mission statements. This gets students thinking about the importance of creating a mission that the entire company can follow and tailor its activities around achieving.

Examples We are a global family with a proud heritage passionately committed to providing personal mobility for people around the world.

Answer: Ford To bring inspiration and innovation to every athlete in the world Answer: Nike Undisputed marketplace leadership Answer: Hershey Company To inspire our customers and those they care about with life-enriching products and experiences Answer: Indigo Books and Music

Great Idea #4 Marketing Mix Reports At the beginning of the semester, have students choose a product by brand name. Many popular brands will be chosen, but ask students to look for smaller companies or non-profits on which to

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focus. You will likely have to vet the students’ choices, with the main criterion being that enough marketing information is readily available on the good or service.

Have students prepare four separate reports, one on each of the four Ps, done at the conclusion of when the topic is covered. These one- or two-page reports are easy to prepare but require the student to apply and properly use marketing terms and concepts. As you cover each of the four Ps, the students must prepare a report, which can be handed in or presented in class.

Great Idea # 5 Competitive Advantage A sustainable competitive advantage is critical for long-term success. A competitive advantage is a set of unique features of a company and its products that are perceived by the target market as significant and superior to the competition. Present students with the following two examples.

McDonald’s main competitive advantage relies on a cost leadership strategy. It uses economies of scale and produces products at a low cost and, as a result, offers products at a lower selling price than its competition.

Louis Vuitton relies on a product differentiation competitive advantage. It is a leader in the luxury market and commands premium prices through product uniqueness.

Now, have students consider Activity #3 on Cineplex and work them through the process of emerging from the COVID-19 business crisis by developing a competitive advantage. The following can be shared with the students: Considering what you learned in Activity #3 on Cineplex, articulate its competitive advantage. Using the concept of a sustainable competitive advantage and the three areas that competitive advantage strategies fall into, present five strategic alternatives for

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Cineplex. These alternatives would form the basis of its marketing plans to survive the challenges that COVID-19 has caused for its business.

Great Idea #6 Core Competencies In Great Idea #2, students completed a SWOT analysis on themselves. Following the process outlined in Elements of a Marketing Plan (Exhibit 3.1), the next step in their ―personal planning process‖ is to understand their core competencies and develop a competitive advantage. If the exercise is stimulating good conversation, move students through that process via discussion in class. A student’s core competency might be their strong work ethic or their skills as a defensive soccer player. From here, they would move into their marketing plan, which begins with establishing marketing objectives. Have students write their own ―personal marketing objective.‖ The intent of the exercise is to not critique what students write but rather how they write their personal objective. It must meet the criteria of a SMART objective; for example, To gain entrance in X school and make the intercollegiate soccer team as the first-string goalie in my first year. Be sure not only to have students write the objective but to assess it against SMART criteria.

Chapter 4 Marketing Research and Marketing Analytics Learning Outcomes 4-1

Explain marketing research and marketing analytics

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Marketing research is about using information-gathering processes to discover the needs of customers and how to better serve those needs. Marketing research is a process like any other kind of research, and it needs guidelines and direction to follow. Marketing research helps decision makers not by solving the problem but by providing information based on which decisions can be made. In a firm, marketing research can take on any one of three roles: descriptive, diagnostic, and predictive. Closely related to marketing research, marketing analytics is the use of data to optimize marketing decisions. As technology has developed, marketers have more access to data, leading to advances in marketing analytic techniques to help make decisions.

4-2

List the steps in the marketing research process

Marketing research is a process of collecting and analyzing data to use in solving specific marketing problems. There are six steps in the process of properly gathering data and creating information used to make marketing decisions. The first step, the most important and strategic decision in the research process, is to identify the problem. The second step is to choose the research design and determine whether to use an exploratory, descriptive, or causal approach.

The third step is to decide how much secondary and primary data will be collected and then to collect the data. The fourth step is to analyze the data. Technology can provide a lot of help to researchers, and analysis goes well beyond the basic pie chart or bar graph. The fifth step is for researchers to present their report, taking the reams of data and turning it into something actionable for a company’s decision makers. The last step is to follow up, and because marketing research is about helping to make decisions, it’s important that marketing researchers be able to see how their data and information are used in those decisions.

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4-3

Discuss the impact of technology on marketing research and marketing

analytics Technology has an impact on many aspects of our lives both at home and at work. Marketing researchers are using technology to help make decisions at work and to gather information from people at home and on the go. The Internet has allowed companies to mine information about consumers long thought unreachable. Marketers use the Internet to administer surveys, conduct focus groups, and preform various other types of research.

4-4

Explain how marketing analytics is used to develop a marketing

strategy The goal of marketing analytics is to use data to gain insights and make better decisions. While this field overlaps considerably with traditional marketing research, it differs in two ways.

Marketing analytics involves larger data sets and more complex data analysis than that used by traditional market research, and marketing analytics seeks to find new insights that might be missed when traditional market research seeks to answer questions that are predefined. See Exhibits 4-9 and 4-10.

4-5

Summarize the concerns related to the collection and use of marketing

data While big data has many benefits, there are downsides. These include the intrusive methods of data collection and the lack of transparency about data sharing. It is likely that the intrusive methods of data collection will become an even more important issue as the use of voiceintegrated devices in the home become more mainstream. The issue is whether the terms of sale communicated by marketers actually represents informed consent. With respect to the lack of

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transparency, the question remains, are consumers aware of how and when data that is collected from them is shared?

4-6

Describe when to conduct marketing research or when to use marketing

analytics Managers should not instinctively call for market research and analytics. They need to ensure that they clearly understand the problem and determine whether currently available resources are not sufficient to answer the problem. Marketers must always consider the cost and time it will it take.

Glossary Terms anonymized data big data causal research closed-ended question competitive intelligence (CI) conclusive research data mining data visualization data warehouse database depth interview descriptive research ethnographic research experiment exploratory research focus group marketing analytics marketing dashboard marketing information system (MIS)

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marketing research measurement error mystery shoppers nonprobability sample observation research online research panel open-ended question personally identifiable information primary data probability sample research design sample sampling error scaled-response question secondary data sentiment analysis structured data survey research unstructured data web survey and design systems

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Lesson Plan for Lecture Brief Outline with Suggested PowerPoint Slides Slides are available at login.cengage.com.

LEARNING OUTCOMES AND TOPICS

POWERPOINT SLIDES

Explain marketing research and marketing analytics 4-1 Marketing Research and Marketing Analytics List the steps in the marketing research process 4-2 The Marketing Research Process 4-2a Step 1: Identify and Formulate the Problem/Opportunity 4-2b Step 2: Plan the Research Design and Gather Secondary Data 4-2c Step 3: Specify the Sampling Procedures 4-2d Step 4: Collect Primary Data 4-2e Step 5: Analyze the Data 4-2f Step 6: Prepare and Present the Report 4-2g Step 7: Provide Follow-Up Discuss the impact of technology on marketing research and marketing analytics 4-3 The Impact of Technology on Marketing Research and Marketing Analytics 4-3a Uses of the Internet 4-3b Online Research Panels 4-3c Online Focus Groups 4-3d Online Research Communities 4-3e Mobile Market Research 4-3f Social Media Marketing Research 4-3g The Rise of Big Data Explain how marketing analytics is used to develop a marketing strategy 4-4 Marketing Analytics and Marketing Strategy 4-4a Data Used in Marketing Analytics 4-4b Organizing the Data 4-4c Analyzing the Data 4-4d Categories of Data for Marketing Analytics

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LEARNING OUTCOMES AND TOPICS 4-4e Marketing Analytics Techniques Summarize the concerns related to the collection and use of marketing data 4-5 Data Collection Concerns 4-5a Intrusive Methods of Data Collection 4-5b Lack of Transparency about Data Sharing Describe when to conduct marketing research or when to use marketing analytics 4-6 When to Use Market Research or Marketing Analytics

POWERPOINT SLIDES Slide 36

Slide 38

Lesson Plan for Group Work Activities in class that relate to group work are a good way to apply the concepts in each chapter and a meaningful way to engage students in active learning in the classroom. With each activity, it is at the discretion of the instructor to determine how to best apply the group work that is provided. This will likely depend on factors such as classroom size, classroom layout, and overall delivery method. Each group activity below has a task that is detailed, followed by an overview of the outcome that results from engaging in the activity.

Activity #1 Task Students always seem to enjoy discussions about movies and popular culture. The motion picture industry is pervasive, and students are in the ideal target demographic age range for most movies. From product placement to merchandising, there is a lot of marketing involved in the movie industry. But at lot of hard work comes before T-shirts and video games appear for the promotion of a film—and that work, of course, is marketing research.

Show the students a trailer for an upcoming movie. (Note: Choose a movie that is not popular or easily defined or categorized; otherwise, the exercise won’t be as effective.) Now, tell

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students that, based on this one clip, they have to decide what market research tools they would use in order to best determine who the target market is for this movie. Have students break out into groups and devise a plan to use at least two research methods to determine their target market and record what types of questions they asked themselves while they made their decision.

Another question for the groups to consider is who they feel the target market is. This is a good indication of how well students understand segmentation, a topic that has likely not been taught in great detail in marketing principles classes.

If you want the exercise to be less repetitive, show more than one movie trailer and have each group consider a different trailer.

Outcomes Applying the concept of marketing research to movies is an engaging way for students to think about the topic of research. However, given that the movies are (ideally) not likely to be ones that students are familiar with or that they likely even want to see, this activity does lend well to an understanding among students that they may not always work on products or services they would use themselves. Sometimes this can be a challenge for students to truly understand the needs of others, but this is essentially what marketing research is all about.

Activity #2 Task Refer students to section 4-2d Step 4: Collect Primary Data and the discussion on qualitative and quantitative research, including Exhibits 4.6 and 4.7. Have students prepare a paper describing the difference between qualitative and quantitative primary data and the various ways in which primary data can be collected. Then, present them with this scenario:

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You are the owner and head chef of Joe Beef, a renowned restaurant located in the west end of Montreal. Joe Beef has been named one of the best restaurants in Canada (https://canadas100best.com/no-3-joe-beef-2017-2). Your success is built on both your unique décor and a menu that combines top-quality ingredients with French flair. It is time to update the menu, but you do not want to mess with a good thing. Present a plan for how to capture the data to ensure the new menu that you ultimately create is as good as the current one so that your restaurant remains one of the best in Canada.

Outcome In this situation, students are given the opportunity to demonstrate their understanding of the value of primary data collection in a situation they can relate to. As noted in Activity #1, the opportunity to apply market research in an engaging way allows students to better see its value and importance in all aspects of marketing decision making.

Great Ideas for Teaching Chapter 4 Great Idea #1 Discussion Board Topics to Encourage Participation Refer to the Instructor’s Manual for Chapter 1 in the ―Great Ideas for Teaching‖ section to read about the benefits and details around discussion boards.

DISCUSSION BOARD TOPIC A 1. Marketing research is the process of planning, collecting, and analyzing data relevant to a marketing decision.

2. Review the information on the role of marketing research in section 4-1 Marketing Research and Marketing Analytics in the text.

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3. Then, describe how your college, university, or employer uses marketing research or, if you do not think it does, how it could use marketing research.

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DISCUSSION BOARD TOPIC B 1. One of the most difficult parts of doing marketing research is creating good questionnaires.

2. Review the section Questionnaire Design in the text (see section 4-2d).

3. Suppose you wished to design a questionnaire that could be used by the student recruitment office to do marketing research. Describe what the questionnaire would be designed to find out and write one good closed-ended question that could be used on it.

Great Idea #2 Secondary Research and Market Strategy Tell students they are responding to a request for proposal (RFP) from the Boys & Girls Club of Canada to hire a marketing research firm to conduct a Canada-wide research study to address the question ―Why have fundraising initiatives during the past 18 months resulted in less support for the organization?‖ Without an answer to this question and a change in fundraising, the organization faces significant sustainability issues. Using Exhibit 4.1 The Marketing Research Process and the information presented in section 4-2 The Marketing Research Process, students will present a fully comprehensive plan for how their organization would conduct research to answer this very important question. This is a lengthy assignment requiring thoughtful consideration of each step in the research process, so ask students to be thorough and ensure they have enough time to fully and appropriately respond to the RFP. They should be prepared to present their RFP responses to the class for a decision on who will be awarded the contract.

Great Idea #3 Technology and Data Collection Technology has had significant impact on marketing research and marketing analytics. There are many benefits to online research, such as the wealth of data that can be collected quickly. An

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important factor of the online research process is that it can create brand advocates by regularly engaging customers in a space where they are comfortable. The challenge, however, is to appropriately use the data to enhance decision making. Have students discuss the issues with data collection by thoroughly researching this topic and be prepared to share their knowledge with the class. In their research, they should find examples of situations where data has been breached and the implications for the organizations involved.

Great Idea #4 Using Social Media Many of us have become social media junkies. That behaviour can ultimately provide organizations with useful data for decision making if the organization can find ways to extract meaningful data from the millions of conversations their customers are having on social media.

The text identifies the company Hootsuite as one that provides a means of helping organizations manage social media activity and track what is being said. Ask students to imagine they are the social media manager for a local charity and that they believe an investment in Hootsuite would result in improved stakeholder engagement. Have students visit the Hootsuite website, learn all they can about it, and then provide a recommendation to their employer as to why the investment is worthwhile.

Chapter 5 Consumer Decision Making Learning Outcomes

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5-1

Explain why marketing managers should understand consumer

behaviour Consumers’ product and service preferences are constantly changing. To address this constant state of flux and to create a proper marketing mix for a well-defined market, marketing managers must have a thorough knowledge of consumer behaviour. Understanding how consumers make purchase decisions can help marketing managers in several ways. An understanding of consumer behaviour is essential to the marketer who endeavours to satisfy the needs and wants of their customers and who wants to communicate effectively with them. Understanding consumer behaviour reduces uncertainty when creating the marketing mix.

5-2

Analyze the components of the consumer decision-making process

The consumer decision-making process begins with a stimulus that triggers problem recognition, revealing an unmet need or want. The next step is to determine whether additional information is needed to make the decision. Next, the alternatives are evaluated and purchase decision rules are established. A purchase decision is then made. Postpurchase evaluation, including the important concept of cognitive dissonance, is based on the evaluation of the outcomes (refer to Exhibit 6.1 in the text). Consumers do not always follow this decision process in the steps outlined in Exhibit 6.1; as a matter of fact, depending on consumers’ previous knowledge and/or experience with a product, they may begin the process at a later stage, or skip the process altogether, and are free to terminate the process at any time.

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5-3

Identify the types of consumer buying decisions and discuss the

significance of consumer involvement Consumers face three basic categories of decision making: (1) routine response behaviour, used for frequently purchased, low-cost items that require very little decision effort; (2) limited decision making, used for products that are purchased occasionally; and (3) extensive decision making, used for products that are unfamiliar and expensive or infrequently bought (refer to Exhibit 5.2 in the text).

Involvement is the amount of time and effort a buyer invests in the search, evaluation, and decision processes of consumer behaviour. The levels of consumer involvement in the purchase task signify the economic and social importance of the purchase to the consumer. Depending on the level of consumer involvement, the extensiveness of the purchase process will vary greatly.

5-4

Identify and understand the cultural and social factors that affect

consumer buying decisions Culture comprises the set of values, norms, attitudes, and other meaningful symbols that shape human behaviour and the artifacts, or products, of that behaviour as they are transmitted from one generation to the next. The underlying elements of every culture are the values, language, myths, customs, rituals, and laws that shape the behaviour of the culture as well as the artifacts or products of that behaviour as they are transmitted from one generation to the next. Culture is pervasive, encompassing all the things consumers do without conscious choice. It is functional, giving order to society. It is learned from parents, teachers, and peers. It is dynamic, adapting to changing needs. Culture affects consumer behaviour in conjunction with other social, psychological, and individual variables. The most defining element of culture is its values.

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Social factors include reference groups, opinion leaders, and family members. Consumers may use products or brands to identify with or become a member of a reference group. Opinion leaders are members of reference groups who influence others’ purchase decisions. Family members also influence purchase decisions; children tend to shop in patterns like their parents’.

5-5

Identify and understand the individual factors that affect consumer

buying decisions A person’s buying decisions are also influenced by personal characteristics that are unique to each individual, such as gender, age, family life cycle stage, personality, self-concept, and lifestyle. Individual characteristics are generally stable over the course of one’s life. Marketers often define their target markets in terms of consumers’ age and life cycle stage as well as personality, self-concept, and lifestyle.

5-6

Identify and understand the psychological factors that affect consumer

buying decisions An individual’s buying decisions are further influenced by the following psychological factors: perceptions, motivation, learning, and beliefs and attitudes. These factors are what consumers use to interact with their world, recognize their feelings, gather and analyze information, formulate thoughts and opinions, and take action. Unlike the other three influences on consumer behaviour, psychological influences can be affected by a person’s environment because they are applied on specific occasions.

Glossary Terms aspirational reference groups attitude belief cognitive dissonance

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consumer behaviour consumer decision-making process culture decision confirmation

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evoked set (consideration set) extensive decision making external information search ideal self-image internal information search involvement learning lifestyle limited decision making marketing-controlled information source Maslow’s hierarchy of needs motives need need recognition nonaspirational reference groups (dissociative groups) nonmarketing-controlled information source norms opinion leader

perception personality primary membership groups psychological factors real self-image reference group routine response behaviour secondary membership groups selective distortion selective exposure selective retention self-concept social class socialization process stimulus subculture value want

Lesson Plan for Lecture Brief Outline with Suggested PowerPoint Slides Slides are available at login.cengage.com.

LEARNING OUTCOMES AND TOPICS

POWERPOINT SLIDES

Explain why marketing managers should understand Slide 4 consumer behaviour 5-1 The Importance of Understanding Consumer Behaviour Slides 5‒15 Analyze the components of the consumer decisionmaking process 5-2 Consumer Decision-Making Process 5-2a Step 1: Need Recognition 5-2b Step 2: Information Search 5-2c Steps 3 and 4: Evaluation of Alternatives and Purchase 5-2d Step 4: Postpurchase Behaviour

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LEARNING OUTCOMES AND TOPICS

POWERPOINT SLIDES

Identify the types of consumer buying decisions and discuss the significance of consumer involvement 5-3 Types of Consumer Buying Decisions and the Significance of Consumer Involvement 5-3a Factors Determining the Level of Consumer Involvement 5-3b Marketing Implications of Involvement 5-3c Factors Influencing Consumer Buying Decisions Identify and understand the cultural and social factors that affect consumer buying decisions 5-4 Cultural and Social Factors Affect Consumer Buying Decisions 5-4a Cultural Influences on Consumer Buying Decisions 5-4b Social Influences on Consumer Buying Decisions Identify and understand the individual factors that affect consumer buying decisions 5-5 Individual Influences on Consumer Buying Decisions 5-5a Gender 5-5b Age and Family Life-Cycle Stage 5-5c Personality, Self-Concept, and Lifestyle Identify and understand the psychological factors that affect consumer buying decisions 5-6 Psychological Influences on Consumer Buying Decisions 5-6a Perception 5-6b Motivation 5-6c Learning 5-6d Beliefs and Attitudes 5-6e Consumer Behaviour Elements—Working Together

Slides 17‒20

Slides 22‒25

Slide 27

Slide 29

Lesson Plan for Group Work Activities in class that relate to group work are a good way to apply the concepts in each chapter and a meaningful way to engage students in active learning in the classroom. With each activity, it is at the discretion of the instructor to determine how to best apply the group work that is

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provided. This will likely depend on factors such as classroom size, classroom layout, and overall delivery method. Each group activity below has a task that is detailed, followed by an overview of the outcome that results from engaging in the activity.

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Activity #1 Task Most students have not made a high-involvement purchase decision concerning a car or a house on their own. Sometimes, this makes it more difficult for them to understand the consumer decision-making process. One way to deal with this is to have them reflect on the process they followed to decide to attend their current postsecondary institution.

First, have students write down the top three reasons why they chose to attend this postsecondary institution. Then, have them write out the process they followed to make the decision and provide the top three sources they used in making their decision. Once this is done, have the students join three or four other students and, as a group, list any regrets they have about the choice they made.

Now that the student groups have an overview of the process they followed, who the influencers were, and their concerns about their decision, have them create a promotional campaign targeting people who are now facing the decision to choose a postsecondary institution. The goal here is to ensure that the promotional campaign is integrated and comprehensive enough to deal with the many challenges inherent in making a high-involvement decision. Be sure that groups take into consideration all five stages of the consumer decisionmaking process when creating this application. Allow groups to be as creative as possible—they don’t have to worry too much about feasibility in this exercise, but whatever they create should be within the realm of possibility.

Outcomes At the end of the exercise, have each group present their idea to the class. You can then assess each group on how well they handled each of the five consumer decision-making process stages.

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Activity #2 Task Divide the class into groups of three or four students and have each group make a list of their top three places to shop. Have them discuss how these places adapted to the challenges presented by the COVID-19 pandemic and how their shopping behaviour changed as a result of COVID. Then, have them discuss the key influences that have impacted this change in behaviour. Finally, each group should choose one of their retailers and prepare a presentation on how to change/adapt its retail strategy given the change in consumer behaviour as a result of COVID. Outcome External environmental conditions can and do have a very significant impact on organizations ability to achieve objectives. Retailers had to be very creative in how they pivoted their business model to survive during COVID. This is an excellent way for students to see the importance of fluid marketing strategy planning.

Great Ideas for Teaching Chapter 5 Great Idea #1 Discussion Board Topics to Encourage Participation Refer to the Instructor’s Manual for Chapter 1 in the ―Great Ideas for Teaching‖ section to read about the benefits and details around discussion boards.

DISCUSSION BOARD TOPIC A 1. When purchasing products, consumers generally follow the consumer decision-making process.

2. Review this process in section 5-2 Consumer Decision-Making Process in the text.

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3. Then, describe a retail purchase you made that involved extensive decision making in terms of the five steps in the consumer decision-making process. Refer to the box feature ―Rethinking the Consumer Decision-Making Process‖ and describe the process you followed as a ―classic journey,‖ and then discuss how that retailer was able to move the consumer from the classic journey to one where they became an advocate in the loyalty loop.

Great Idea #2 Lemon to Lemonade Provide students with the following information: An accident left former gymnast Taylor Lindsay-Noel quadriplegic—but it didn’t stop her from dreaming big. Just a few years after the accident, she started the online specialty tea company Cup of Té (https://cupofte.ca). On the 12th anniversary of her accident, Taylor received an email that changed everything. The email was from someone on Oprah Winfrey’s team from O Magazine. Taylor initially discounted the email as not real, but with a bit more follow-up, she realized that it was legitimate. Oprah was making a point of celebrating Black lives in 2020 and was choosing 50 Black-owned or Black-led companies to be on her list of ―Oprah’s Favourite Things.‖ She was considering including Taylor’s company on the list. After months of back-and-forth, Cup of Té made the list and the business results were astonishing. Taylor had been at a low point of almost being ready to give up on her business the day she received the email. Today, orders are through the roof.

Taylor notes that entrepreneurs can have many doubts about their businesses, but being selected to be on Oprah’s list made her feel that she was doing the right thing and gave her hope for the future of her business. Learn more about Taylor’s story at http://cbc.ca/news/canada/toronto/her-olympic-dreams-were-dashed-in-a-brutal-fall-now-

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her-company-is-on-oprah-s-2020-favourite-things-list-1.5844811 and visit the Cup of Té website.

Then, ask the students, considering everything they’ve learned about Taylor and the Oprah story, why was being on Oprah’s list of favourite things was so important for this young company?

Great Idea #3 Cognitive Dissonance and the University Experience The selection of an institution for higher education or the selection of a particular degree program and program of study within that institution are decisions of considerable import for most individuals. The choice of one institution over another can cause the decision maker some psychological discomfort (cognitive dissonance) as they grapple with the relative correctness of the decision. The same can be said for the selection of a particular discipline of study (e.g., business, education, arts, sciences, nursing, communications) as other options are bypassed. In 2020, complicating the decision about which school to attend was the question of whether to bother attending at all, given that all classes were moved online due to the restrictions placed on the delivery of in-person classes during the COVID-19 pandemic.

Given the seriousness of the postsecondary decision, some individuals may feel the psychological discomfort of cognitive dissonance at some point in their academic careers. The challenge for marketing organizations (including the institutions under discussion) is to deal effectively with this phenomenon in order to achieve the highest levels of consumer satisfaction.

In a college or university setting, addressing cognitive dissonance is vital to student retention efforts. Simply stated, some students (customers) may act upon this level of discomfort by removing themselves from the college or university in favour of other institutions or other employment/training opportunities, or they may not attend at all.

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The purpose of this project is to provide students with the opportunity to integrate marketing theory with marketing practice. Simply put, students analyze the concept (cognitive dissonance) and its presence on their particular campus and offer creative marketing solutions for consideration by college or university administrative personnel. The institution is used as the focal point of the project in the interest of building the students’ sense of belonging and commitment to their institution.

The inclusion of this project in a marketing course provides the following outcomes: (1) the realization of an institutional desire for operational and management effectiveness; (2) the provision of experiential learning outcomes; (3) the realization of the learning objectives for the course; and (4) student participation in the strategic planning processes of the institution.

The project can be developed with the students over the course of the term, with the final output delivered to college or university administrative personnel for consideration or on a smaller scale for completion as the chapter on consumer behaviour is studied. The project may be done on an individual or group basis, depending on the nature of the audience or the desires of the instructor.

The following focus areas are suggested in relation to the problem of cognitive dissonance on a college/university campus: •

students during their first-year experience

•

students transferring from other institutions

•

students entering upper-division degree or post-diploma programs

•

students selecting particular academic programs in favour of others

•

students selecting academic/service/professional organizations for membership and participation

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•

mature students returning to the university/college Ongoing efforts: student academic counselling; student academic tutoring; student career

counselling; student counselling (more personal in nature); scheduling of classes; payment of fees; financial-aid assistance; library accessibility; student on-campus activities; adequacy of physical plant.

Note that the above list is meant to be illustrative, not exhaustive. The students should consider all aspects of the undergraduate experience and suggest direct actions for dealing with the presence of cognitive dissonance on a college/university campus.

The following outline is offered to guide the preparation of the documents and/or presentations to be made available to university personnel for consideration and implementation: 1. Illustrate your understanding of the concept of cognitive dissonance. (What problem are you addressing?)

2. Briefly discuss why a college or university should be concerned with the presence of cognitive dissonance among its student population. (Why are you concerned?)

3. What solutions can you suggest to address the presence of cognitive dissonance on a college or university campus? (What are your solutions?) a. focal point b. target group c. discuss specific action d. desired outcomes 4. Attempt to integrate your actions into a short-term plan that can be operationalized and put into action by university officials. (How should your solutions be implemented?)

Great Idea #4

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Communicating Consumer Behaviour: An Exercise Using Personal Consumption Journals In studying consumer behaviour, it is vital that, upon completion of the course, students have acquired a sound understanding of how consumers search for, purchase, and use products and services. Furthermore, students should also be exposed to the social and psychological influences on these behaviours. Finally, to garner the most benefit, students should understand how to integrate the theoretical concepts into their real-world experiences. To achieve these broad objectives, the instructor must present a large amount of information and the students must then process it.

The purpose of this paper is to describe the use of consumption journals. This exercise enables students not only to observe and record their own consumption habits but also to explore the social and psychological factors that may be influencing their own and others’ purchase decisions. The greatest benefit is that they enjoy the learning process.

This exercise is designed as an incremental, three-part assignment. The first part requires students to maintain a personal consumption journal. In the second part, each student is asked to construct a portrait of themselves as a consumer by developing a list of 10 products or services they typically purchase. The third portion of the assignment is an advertisement evaluation. This requires students to select 2 products from their 10-product list and locate advertisements or promotions for them. For each advertisement selected, students are required to identify four to six consumer behaviour concepts used in the ad, to describe the demographic and psychographic segments at which the ad was targeted, and to explain the reasoning for their conclusions.

Finally, students are asked to assess whether they are representative of these segments.

Each student is responsible for maintaining a consumption journal that describes the products and services they purchase. Descriptions include which products and services are

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purchased, where the items are purchased, why the items are purchased, and what feelings are associated with the purchases. Students are required to complete a minimum of two entries each week. Students are asked to submit the preceding weeks’ entries with the new entries, allowing the instructor to view the weekly progress and making the students more aware of the patterns of their consumption behaviour.

An example journal entry template should be provided to the students when the assignment is introduced: Date: Place of purchase: Item(s) purchased: Brand name (of each item): Price (of each item): Other descriptive information: Reason for purchase: Feelings associated with purchase: The length of time that students are required to maintain consumption journals is at the discretion of the instructor, but four weeks’ worth of submissions should be the minimum, as students only begin to understand and appreciate the assignment around the fourth submission.

After the third submission of the consumer journal, students should review their consumption behaviour and create a list of 10 products or services that they own and/or regularly use. Students should select only those products and services that best portray their personality, values, and lifestyle. Similar to the journal entry, the list is required to contain detailed information such as brands, sizes, colours, and/or models of the products and services.

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Once the 10-item product list is complete, each student should select 2 of the items on the list and locate an ad for each. The two ads then serve as the medium for a short analysis paper.

For the paper, the analysis of each ad will be broken down into three sections. First, students should identify between four and six consumer behaviour concepts used in the ads. Second, students should identify and explain the demographic and psychographic segments to which the ads were designed to appeal. Finally, students should explain whether or not they fit into the identified target market.

The consumption journals allow students to immediately begin to understand the relevance of studying consumer behaviour. They will also apply their own experience to the material presented in class lectures. In all three parts of the assignment, students should use consumer behaviour theory and principles to justify their points. This exercise allows students to demonstrate an understanding of segmentation, motivation, personality, psychographics, learning, attitudes, and reference-group influence. Perhaps most importantly, journals can move students from a passive state of learning to participatory learning.

A class exercise that integrates class material with students’ lives increases their interest in learning the core concepts. This increased interest is highly desirable, and the use of consumption journals provides this advantage.

Via the journal entries, the 10-product list, and the ad analysis, students will learn about their personal consumption habits. This self-discovery is an exploration of the social and psychological factors that influence their consumption behaviour and how their behaviour can be generalized to others. Thus, although the instructor’s investment in developing this exercise is considerable, the return for students is well worth the effort!

Great Idea #5

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Reference Group—Lecture Alternative and Class Participation Exercise Students are instructed to come to the next class displaying some symbol that identifies them with a reference group. They are told they will have to identify the reference group, what type of reference group it is, its influence, and its power structure.

On the day of class, ask the students to find their reference group peers among the other students and to form groups based on their reference symbols. Allow the groups several minutes to discuss and define themselves as a group and for each group to choose a spokesperson.

Begin with a series of questions and follow with an open discussion of the material.

Sometimes you have to lead the students through this exercise; other times they proceed without much assistance. The following questions are helpful in covering the material; however, they are just suggestions. Feel free to improvise as you go along. Each group represented in class is asked the following questions: 1. What type of reference group do you represent (formal or informal)? Explain.

2. What type of social influence does the group have on its members (normative or informational)? Explain.

3. Why do group members conform to the standards of the group (cultural pressure, fear of deviance, commitment)? Explain.

4. Do group size, unanimity, expertise, or sex differences cause greater or lesser conformity within the group? Explain.

5. (Directed to the group’s spokesperson) How does the group influence the consumption of its members? (informational, utilitarian, value-expressive)

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6. Is there a difference of opinion within the group? (This can lead to a discussion of the social power of the group and whether members conform to the dictates of the group by private agreement or by surveillance.)

7. Is there agreement or disagreement with any of the positions that have been expressed by the groups’ spokespersons? (Allow an open discussion for several minutes.)

8. Is the spokesperson the opinion leader of the group? (Answers will vary and leave room for further discussion on the topic of opinion leadership.)

9. (Directed to the group’s spokesperson) Did the comments of your group change your perception of your position within the group? (This allows you to discuss group opinion and the social power of the group.)

10.

What types of power does the group have on its members (referent power, information power, legitimate power, expert power, reward power, or coercive power)? (Make sure that you link this to conformity.)

There are usually students who do not have similar symbols and who cannot find a

reference group within the class. If you have independents within the class, ask whether they avoid groups because of their power structure. This allows the class to discuss the need for uniqueness or freedom. A discussion of social comparison theory is a good idea at this point.

Finally, ask the students whether word-of-mouth information from a group they belong to or aspire to has more influence on them than the word of a stranger.

This exercise covers most of the material on reference group influences. It also involves the students, and they feel free to open up in class.

Chapter 6 Business Marketing Lamb, MKTG, 5Ce, Instructor’s Manual

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Learning Outcomes 6-1

Describe business marketing

Business-to-business (B2B) marketing is more than simply using the same aspects of consumer marketing and putting ―business‖ in front of the concepts and terms. B2B marketing is about making matches between the capabilities of firms and focusing on active cooperation between parties. In B2B marketing, there has to be active interaction between businesses to ensure needs are meet. There has to be trust, mutual respect, and an understanding that both parties working together can achieve both companies’ goals.

6-2

Explain the differences between business and consumer marketing

Business marketing is about an active buyer and an active seller. Often, consumer marketing focuses on a customer that passively waits for a business to develop an offering based on the four Ps. The Canadian Marketing Association’s definition of business marketing is particularly relevant to our understanding of B2B: ―What makes B-to-B different than consumer marketing is the complex nature of relationships and interactions that form a buying process and customer lifecycle that lasts months or years. It involves a network of individuals from buyer, seller and even third-party partners who have different needs and interests.‖ The business market has some other important characteristics: large purchase volume, large number of customers, geographically concentrated customers, direct distribution, professional buyers, negotiation of purchasing prices and terms, the practice of reciprocity, leasing, and the emphasis on personal selling.

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6-3

Summarize the network and relationships approach to business marketing

In business marketing, relationships are more complex, with two important aspects: commitment and trust. The concepts of trust and commitment show the importance of collaboration between entities in a B2B relationship. In B2B marketing, the movement to interaction versus interruption has created a long-term perspective, with engaged customers who are interested in sharing content that has been created. Networks in business marketing take the interactions and relationships between businesses and place them into a bigger context where relationships are built over time and cooperation occurs because it is clear that cooperation ensures goals are achieved.

6-4

State the fundamental aspects of business marketing

One of the most important and unique aspects of business marketing is how demand is treated— whether derived, inelastic, joint, or fluctuating. Compared with consumer marketing, in business marketing, the number of customers is fewer, the locations of businesses are strategic, negotiations are important, and understanding reciprocity is essential to learning about business relationships. Business products that are offered as part of a business relationship are varied, ranging from major equipment purchases to basic supplies. Services to businesses are unique and more prevalent than in consumer marketing.

6-5

Classify business customers

To understand the customer landscape in business marketing, it is helpful to categorize business customers into different groups. Most businesses considered major players in business marketing are producers and resellers. However, government, MASH (municipal, academic, social, and hosptials), and institutions are also important in business marketing. A well-established system to classify companies in North America is the North American Industrial Classification System

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(NAICS). NAICS provides a way to identify, analyze, segment, and target business and government markets. Organizations can be identified and compared by using the NAICS numeric codes, which indicate a business’s sector, subsector, industry group, industry, and country industry. NAICS is a valuable tool for analyzing, segmenting, and targeting business markets.

6-6

Identify aspects of business buying behaviour

Business buying involves a much larger group of individuals working together to make a decision. While consumers can make decisions on their own or with the aid of the reference group, a business often will have a buying centre from which decisions are made. A buying centre has six types of members: initiator, influencer, gatekeeper, decider, purchaser, and user.

Buying also involves understanding the situation in which a company is making a purchase.

Companies may be in a new-task-buy situation; that is, this is the first time they have made this type of purchase. Otherwise, business buyers are in a straight rebuy situation where they are generally satisfied and buy the same offering again or in a modified rebuy where some element of the previous offering was unsatisfactory and they are seeking some improvement. Finally, most business purchases are made based on the evaluative criteria of quality, service, price, and the supplier-buyer relationship.

6-7

Describe the ways in which business marketing has gone online

While much discussion of business marketing is focused on how it differs from consumer marketing, much of what is happening online is similar for both B2B and B2C. Mobile marketing and content marketing are strong trends for business marketers, providing opportunity for both new markets and new relationships but also making it necessary to understand the needs

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of a more informed marketplace. Trends in B2B include the importance of content marketing and social media growth.

Glossary Terms business services business-to-business (B2B) marketing buying centre derived demand joint demand modified rebuy multiplier effect (accelerator principle) new task buy North American Industry Classification System (NAICS) original equipment manufacturers (OEMs) reciprocity relationship commitment straight rebuy trust

Lesson Plan for Lecture Brief Outline with Suggested PowerPoint Slides Slides are available at login.cengage.com.

LEARNING OUTCOMES AND TOPICS

POWERPOINT SLIDES

Describe business marketing 6-1 What Is Business Marketing?

Explain the differences between business and consumer marketing 6-2 Business versus Consumer Marketing Summarize the network and relationships approach to business marketing 6-3 The Network and Relationships Approach to Business Marketing 6-3a Relationships in Business Marketing 6-3b Interaction in Business Marketing 6-3c Networks in Business Marketing

Slide 4

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LEARNING OUTCOMES AND TOPICS

POWERPOINT SLIDES

State the fundamental aspects of business marketing 6-4 Fundamental Aspects of Business Marketing 6-4a Types of Demand 6-4b Number of Customers 6-4c Location of Buyers 6-4d Type of Negotiations 6-4e Use of Reciprocity 6-4f Use of Leasing 6-4g Types of Business Products Classify business customers 6-5 Classifying Business Customers 6-5a Major Categories of Business Customers 6-5b Classification by Industry Identify aspects of business buying behaviour 6-6 Business Buying Behaviour 6-6a Buying Centres 6-6b Buying Situations 6-6c Evaluative Criteria for Business Buyers Describe the ways in which business marketing has gone online 6-7 Business Marketing Online 6-7a Trends in B2B Online Marketing

Slides 15‒19

Slides 21–23

Slides 25‒29

Slides 31‒34

Lesson Plan for Group Work Activities in class that relate to group work are a good way to apply the concepts in each chapter and a meaningful way to engage students in active learning in the classroom. With each activity, it is at the discretion of the instructor to determine how to best apply the group work that is provided. This will likely depend on factors such as classroom size, classroom layout, and overall delivery method. Each group activity below has a task that is detailed, followed by an overview of the outcome that results from engaging in the activity.

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Activity #1 Task This activity is called The Network Game. Students are first asked to each write their name in the middle of a sheet of paper. Then, they are asked to draw the connections they have made through a job search. No more than five connections need to be at this ―first level.‖ Then, students are asked to add people whom they know or have met through these first-level people and go as far and as deep as possible into the connections they have made beyond that.

The connections should look something like this:

Next, the students will create a network model for a company. Provide them with a wellknown firm that every student should be able to relate to; for example, Apple. Then, have the students to get into groups and create a network model for that company. Be sure to have them include customers and the customers’ customers, along with competitors, suppliers, etc.

Outcomes This activity gets students to think visually about B2B marketing. You could also do variations on this activity and have them create a network model for their college/university or for their current employer. This activity helps students transition to the network perspective of B2B marketing from the traditional perspective that business marketing is only slightly different from consumer marketing. This network approach should resonate with students if they think of this exercise with respect to LinkedIn, where most students will (and should) have a profile set up.

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Activity #2 Task Place students in groups and tell them they are acting as the marketing team for the Myant mask, manufactured by Myant—a company known as a leader in textile innovations (https://myantppe.ca/collections/copper-silver). The team is considering selling the masks to both the consumer and B2B markets to capitalize on demand generated by the COVID-19 virus. The burning question is how the team can grow both the consumer and business markets.

Groups should first brainstorm several ways they could transform this new product into a successful consumer and business product. Divide each group of students into different areas of focus: product strategies, pricing strategies, distribution strategies, promotion strategies, and segmentation. Groups should be keenly aware of the differences between B2B and B2C marketing and should refer to the textbook and class notes to help develop their ideas. At the end of the exercise, groups should prepare a summary of up to one page on their findings. This summary should then be circulated to other groups, and groups should assess how well their own approach lines up with the ideas of the other groups in the class.

Outcomes Groups are given exposure to business-to-business marketing and consumer marketing by considering both sectors when attempting to establish a product. Students may not be familiar with the B2B market for masks, but if they consider the consumer market to start with, they will then easily transition to a consideration of how to grow the B2B market.

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Great Ideas for Teaching Chapter 6 Great Idea #1 Discussion Board Topics to Encourage Participation Refer to the Instructor’s Manual for Chapter 1 in the ―Great Ideas for Teaching‖ section to read about the benefits and details around discussion boards.

DISCUSSION BOARD TOPIC A 1. The business market consists of four major categories of customers: producers, resellers, government, and institutions.

2. Review these categories and the types of business products in the text (see sections 6-4g Types of Business Products and 6-5 Classifying Business Customers).

3. Choose one of the types of business products and find a company that manufactures a good that falls into this category. Describe why you think this is so, and also describe which category of business market this company falls into.

DISCUSSION BOARD TOPIC B 1. Business buyers behave differently from consumers. A buying centre includes those persons in an organization who become involved in the purchase decisions.

2. Review the material on buying centres in section 6-6a Buying Centres in the text.

3. Interview the buyer of the campus bookstore and determine what role they play.

Great Idea #2 A Decision-Making Exercise for Business Marketing This exercise is designed to introduce your students to decision making in the context of organizational buying. Several distinctions of organizational buying, compared to consumer buying, can be made by using this exercise. For example, differences in decision criteria are

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highlighted and individual versus group decision-making can be demonstrated. In addition, the variations in the marketing strategy can be discussed. Present the situation below to the students.

Situation You are a sales manager for a company that safely handles the healthcare waste in hospitals, research labs, and other medical/healthcare facilities. Your solutions include sharps disposal and various other disposals for hazardous waste generated in healthcare and laboratory environments.

The rollout of the COVID-19 vaccine has created many new opportunities within individual hospitals, hospital networks, and other locations that will be set up as vaccine sites. Other possible locations include pharmacies, long-term care homes, and any other facilities the governments establish for the mass vaccination. Considering this scenario, answer the following: 1. Relating to the products that the company described above, discuss a. the nature of demand b. the number and location of customers c. the nature of the buying process d. the types of business products that are being sold 2. The purchase of many of the company’s products and services would be made by a buying group or buying centre. Discuss the implications of this for you, as the sales manager.

3. What might the evaluative criteria be for the purchase?

4. For those customers who have never been involved in mass vaccinations—some pharmacies and other health centres—buying the products and services to ensure safe removal of healthcare waste is a new task. Explain how your sales presentation to these

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people would be different from your presentation to a doctor’s office that currently uses your products and services.

Great Idea #3 Researching Keiretsu Have students conduct research on the Japanese concept of keiretsu, and have them describe its value in business marketing using examples from that research.

Great Idea #4 Researching a Corporation Students are divided into teams of three to five members. Each team works together throughout the quarter. Teams each select a corporation and research that company for all project assignments. The final project grade is based partly on peer evaluations. Each team presents its project to the class and must be able to defend its plan to the class, with all members participating equally. The use of visual aids is encouraged. If you choose to add the element of a group competition, then, in addition to the instructor’s evaluation, class members vote for the best group presentation. The winning team members earn bonus points.

By writing a 10- to 12-page paper, students become familiar with the company and the environmental forces that shape the company and its industry. The report also entails a marketing opportunity analysis.

Based on the findings of the marketing opportunity analysis, teams recommend one of the following options and produce a marketing plan accordingly: a new marketing mix targeted to a new market, a current marketing mix extended to a new target market, a new or improved product/service targeted to the current market, or a combination of any of these.

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Each team will produce a marketing plan that includes the following: customer and competitive situation analysis, marketing objectives, marketing strategies, and control/evaluation procedures.

Great Idea #5 The Impact of Technology on B2B Marketing Exhibit 6.5 lists the top 10 content types used in B2B marketing. Have students pick a company that they are familiar with and examine its online presence, considering each of the 10 content types listed. Each student should conclude their evaluation with a discussion on whether the company has a good online presence and what they would do to improve it.

Chapter 7 Segmenting, Targeting, and Positioning Learning Outcomes 7-1

Discuss markets, market segments, and the importance of market

segmentation A market consists of people or organizations with wants and needs and the ability and willingness to buy that can be satisfied by particular product categories. If a group lacks any of these characteristics, it is not a market.

A market segment is a subgroup of people or organizations sharing one or more characteristics that cause them to have relatively similar product needs. The process of dividing a market into meaningful groups that are relatively similar and identifiable is called market segmentation.

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Market segmentation plays a key role in the marketing strategy of most successful organizations and is a powerful marketing tool for several reasons. Most importantly, nearly all markets include groups of people or organizations with different product needs and preferences.

Market segmentation helps marketers develop more precise definitions of customer needs and wants. Because market segments differ in size and potential, segmentation helps decision makers more accurately define marketing objectives and better allocate resources. In turn, performance can be better evaluated when objectives are more precise.

7-2

Describe the bases commonly used to segment consumer and business

markets Marketers use segmentation bases, or variables—which are characteristics of individuals, groups, or organizations—to divide a total market into segments. Many different characteristics can be used. Some common bases for segmenting consumer markets are geographic, demographic, psychographic, benefits offered by product, and usage rate by consumers. Markets can be segmented by a single variable or several variables. The choice of segmentation bases is crucial because an inappropriate segmentation strategy may lead to lost sales and missed profit opportunities. To maximize the potential of multiple variable segmentation, marketers often turn to data-driven consulting firms, which use data-driven research and data-based products and services to assist organizations to better understand their customers and, thus, create better and more profitable marketing campaigns. The bases for segmenting business markets include company characteristics and buying processes. The key is to identify bases that will produce substantial, measurable, and accessible segments that exhibit different response patterns to marketing mixes.

7-4

Discuss criteria for successful market segmentation

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To be useful, a segmentation scheme must produce segments that meet four basic criteria: (1) substantiality, (2) identifiability and measurability, (3) accessibility, and (4) responsiveness.

A selected segment must be substantial, or large enough, to justify the development and maintenance of a special marketing mix. The marketer must be able to profit by serving the specific needs of this segment, whatever its size. The segments must be identifiable and their size measurable. The target market must be accessible by the firm’s customized marketing mixes. A market segment must respond differently to some aspect of the marketing mix than other segments do.

7-4

List the steps involved in segmenting markets

Six steps are involved when segmenting markets: (1) select a market or product category for study; (2) choose a basis or bases for segmenting the market; (3) select segmentation descriptors; (4) profile and analyze segments; (5) select target markets; and (6) design, implement, and maintain appropriate marketing mixes.

7-5

Discuss alternative strategies for selecting target markets

A target market is a group of people or organizations for which an organization designs, implements, and maintains a marketing mix intended to meet the needs of that group, resulting in mutually satisfying exchanges. There are four general strategies for selecting target markets (see Exhibit 7.2 in the text). A firm using an undifferentiated targeting strategy essentially adopts a mass-market philosophy, viewing the world as one big market with no individual segments. It formulates only one marketing mix and assumes that the individual customers in the market have relatively similar needs.

A concentrated targeting strategy entails focusing marketing efforts on one segment of a market. Because the firm is appealing to a single segment, it can concentrate on understanding

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the needs, motives, and satisfactions of the members of that segment and develop a highly specialized marketing mix. The term niche targeting strategy is sometimes used to describe that strategy.

When a firm chooses to serve two or more defined market segments and develops distinct marketing mixes for each, it is practising multisegment targeting. A firm can use various methods to achieve that goal. Some companies have very specialized marketing mixes, including specialized products for each segment; other companies may only customize the promotional message that is directed to the various target markets.

One-to-one marketing is an individualized marketing method that utilizes customer information to build a long-term, personalized, and profitable relationship with each customer.

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7-6

Explain how and why firms implement positioning strategies and how

product differentiation plays a role Positioning is the development of a specific marketing mix to influence potential customers’ overall perception of a brand, product line, or organization in general. The term position refers to the place that a product, brand, or group of products occupies in consumers’ minds relative to competing offerings. Firms use the elements of the marketing mix to clarify their position or to reposition the product in the consumers’ minds.

The purpose of product differentiation is to distinguish one firm’s products from another’s. The differences can be real or perceived. The marketer attempts to convince customers that a brand is significantly different from the others and should, therefore, be demanded over competing brands. Perceptual mapping is a means of displaying or graphing, in two or more dimensions, the location of products, brands, or groups of products in customers’ minds. There is a variety of bases that can be used to create a positioning.

Glossary Terms benefit segmentation cannibalization concentrated targeting strategy demographic segmentation Pareto Principle (80/20 rule) family life cycle (FLC) geodemographic segmentation geographic segmentation market market segment market segmentation multisegment targeting strategy niche

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one-to-one marketing optimizers perceptual mapping position positioning product differentiation psychographic segmentation repositioning satisficers segmentation bases (variables) undifferentiated targeting strategy usage-rate segmentation

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Lesson Plan for Lecture Brief Outline with Suggested PowerPoint Slides Slides are available at login.cengage.com.

LEARNING OUTCOMES AND TOPICS

POWERPOINT SLIDES

Discuss markets, market segments, and the importance of market segmentation 7-1 Market Segmentation 7-1a The Importance of Market Segmentation Describe the bases commonly used to segment consumer and business markets 7-2 Bases for Segmenting Consumer Markets 7-2a Geographic Segmentation 7-2b Demographic Segmentation 7-2c Psychographic Segmentation 7-2d Benefit Segmentation 7-2e Usage-Rate Segmentation 7-2f Bases for Segmenting Business Markets Discuss criteria for successful market segmentation 7-3 Criteria for Successful Segmentation List the steps involved in segmenting markets 7-4 Steps in Segmenting a Market Discuss alternative strategies for selecting target markets 7-5 Strategies for Selecting Target Markets 7-5a Undifferentiated Targeting 7-5b Concentrated Targeting 7-5c Multisegment Targeting 7-5d One-to-one Marketing Explain how and why companies implement positioning strategies and how product differentiation plays a role 7-6 Positioning 7-6a Perceptual Mapping 7-6b Positioning Bases 7-6c Repositioning 7-6d Developing a Positioning Statement

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Lesson Plan for Group Work Activities in class that relate to group work are a good way to apply the concepts in each chapter and a meaningful way to engage students in active learning in the classroom. With each activity, it is at the discretion of the instructor to determine how to best apply the group work that is provided. This will likely depend on factors such as classroom size, classroom layout, and overall delivery method. Each group activity below has a task that is detailed, followed by an overview of the outcome that results from engaging in the activity.

Activity #1 Task A great introduction to segmentation involves having students create their ―own‖ segments before they have learned the variables and concepts that make up proper segments. While each instructor will have their own approach and may or may not follow the textbook variables, segmentation variables are essentially the same. It is important that you ask students to write down their answers and that you come back to these ―old‖ segments, possibly at a later date.

Make a list of 10 to 15 products that are each unique. Some suggestions include 

Baby-D Drops



Depends Adult diapers



Ensure Meal Replacement



Roots sweatshirt



cordless leaf blower



electric planer



cashmere sweater



fleece-lined slippers

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

trail-running shoes



hiking poles



air fryer



bread maker

Assign one product to each group, then have the groups write down what they feel the target market is for their assigned products. Don’t give them any instructions or restrictions, just ask them to write down the market segment in whatever way each group feels most appropriate.

Discuss the completed segments as a class, ensuring that the student groups fully rationalize why they have decided that the market segment chosen is the most appropriate.

Outcomes Segmentation exercises often reveal preconceived notions that students have about products and market segments. This exercise works best when they are interacting with a real product and are compelled to really think about who should be targeted. The concept of needs is essential to marketing and so, when segmenting, students should be thinking first about needs and then about how to group the segments. As the students are discussing the segments, be sure to engage in a discussion about the segmentation variables they are using. They are likely to start with demographics. But it can be interesting, as they likely will move on to benefit and psychographics quite easily.

Activity #2 Task Scrabble is a word game in which two to four players score points by placing tiles, each bearing a single letter, onto a game board divided into a 15 × 15 grid of squares. The tiles must form words that, in crossword fashion, read left to right in rows or downward in columns and be

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included in a standard dictionary or lexicon. The game was developed in 1938 and today is sold in 121 countries and is available in more than 30 languages. Give students the following scenario: You have just acquired the rights from Hasbro to sell Scrabble and would like to grow the business. Using the four methods for selecting target markets, discuss how each could be used to grow the business. Sales of Scrabble have been sluggish for the past few decades, as consumers have sought newer games, more strategic games, and games that can be played online. Using the concept of positioning, discuss how you could reinvigorate sales.

Outcomes Once students get used to creating segments, the next step is to have them imagine other market segments for a product or service—ones that go beyond the original segment they assumed or created. This activity looks to expose students to other market segments for a given product, and it allows them to see how a company can expand their business beyond a single target market.

Strategic marketing and marketing plans rely on the ability to create new market segments for companies to focus on as they develop their business model.

Great Ideas for Teaching Chapter 7 Great Idea #1 Discussion Board Topics to Encourage Participation Refer to the Instructor’s Manual for Chapter 1 in the ―Great Ideas for Teaching‖ section to read about the benefits and details around discussion boards.

DISCUSSION BOARD TOPIC A 1. Marketers use segmentation bases, or variables—which are characteristics of individuals, groups, or organizations—to divide a total market into segments.

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2. Review the five general segmentation bases discussed in the text (see section 7-2 Bases for Segmenting Consumer Markets).

3. To assist in contact tracing the COVID-19 virus, the COVID Alert app was developed and launched in Canada in October 2020. What bases would you use to segment the market to gain wide-spread acceptance of the app? What strategy for selecting a target market would you use?

DISCUSSION BOARD TOPIC B 1. The development of any marketing mix depends on positioning, a process that influences potential customers’ overall perception of a brand, product line, or organization in general.

Position is the place a product, brand, or group of products occupies in consumers’ minds relative to competing offerings.

2. Review the topic of positioning in the text (see section 7-6 Positioning).

3. What positioning bases would you use for the COVID Alert app? Develop the positioning statement.

Great Idea #2 One of the outcomes of a segmentation and targeting process is the design, implementation, and maintenance of an appropriate marketing mix for the product/service. Present students with this scenario: You have just opened a new restaurant that specializes in Mexican food. Your entrée menu is limited to tacos, but your uniqueness is that the variety of tacos served is extensive and changes seasonally. Your starters are nachos and a variety of guacamole dips that research indicates are well liked. There are no desserts on the menu right now, but that may change with further research. Your beverages are Mexican beers and a variety of margueritas.

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You are opening the restaurant in town not far from your school. From the information presented above, describe your market segment and then, based on that information, develop a positioning statement and the appropriate marketing mix. Make any assumptions that you must to complete this exercise.

Great Idea #3 Marketing Starts with STP: Segmenting, Targeting, and Positioning This project should be launched at the beginning of the semester so as to provide students with a target date for oral and written completion. It is highly recommended that this project start early and finish toward the end of the semester, using a team approach. Team members should not exceed five students per group—two, three, or four are preferred. You may want to assign students to particular groups, or students may choose their team members. Also, you might provide class or library research time to complete the project, although most work will be completed out of class. A final note: Contingent on semester duration, the required marketing strategy project outline can be lengthened or shortened with no loss of importance to the marketing plan.

Have each group choose one of the following sectioning/targeting/positioning topics: (1) new musical group, (2) new feature movie, (3) new online gaming app. Then, each group should conduct a brainstorming session in which the group addresses all of the topics in all three sections of the marketing strategy project outline below.

Marketing Strategy Project Outline 1. Segmenting Your Product Market a. Current product identification and information (e.g., name, location, size, logo, symbols, insignias, models, etc.)

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b. Product’s (mission statement) philosophy, climate, and culture c. Short-term/long-term goals d. Demographics—age, sex, income, occupation, lifestyle, factors, activities, interests, values, etc. e. Present market size, where are your customers—percentage of market you want to capture, and why f. How to increase market share—describe market growth potential 2. Targeting Your Product Market a. Primary target market—main consuming group Secondary target market—additional sales potential b. Product life cycle—describe anticipated adjustments in the marketing mix—changes through the stages c. Supply five different and potential promotional vehicles. d. Advertising detail schedules e. How are you going to generate publicity?

3. Positioning Your Product Market a. What is special about this product? b. List and describe features and benefits. c. Explain the image and character you would like your customer to see. d. Describe and provide your three closest competitors’ activities. e. Analyze your product’s opportunities and threats in the market.

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Chapter 8 Customer Relationship Management (CRM) Learning Outcomes 8-1

Summarize customer relationship management

In customer relationship management (CRM), a company gathers information about its customers and then uses that information to build loyalty and long-term commitments among those customers. CRM provides the tools to know the customer better. CRM started out as a technology solution for companies looking for data on customers. Much of what was developed was strong from the technology side but did not have the loyalty focus necessary for a true CRM system. While IT is part of the development of a strong CRM program, companies must know how to use the information to attract customers and to keep them over the longer term.

CRM is different from customer relationship marketing, which is more of a customer database than a comprehensive system of tracking and maintaining customer loyalty. See Exhibit 8-1 in the text.

8-2

Explain the CRM cycle

At its core, CRM is a relationship-building tool built around three stages of a cycle. Stage 1 requires that companies understand what they have to offer to their customers and the marketing and market research tools that can help them use the four Ps. Stage 2 focuses on the use of technology to systematically identify customers, gather information on them, and store that information. Finally, in Stage 3, companies look at ways to use the information about customers to retain them in the long term by satisfying their needs.

Stage 2 of the CRM cycle includes many of the CRM tools and concepts a firm offering these types of solutions to companies would use. However, without an understanding of the

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context in Stage 1 and the ramifications of those CRM tools in Stage 3, CRM is a one-sided effort that lacks cooperation and inclusion of a most vital component—the customer. See Exhibit 8-2 in the text.

8-3

Describe the three stages in the CRM cycle: marketing research,

business development, and customer feedback During the first stage of creating a CRM system, companies must create an offering. In the first stage of the cycle, there is a renewed focus on marketing as part of CRM. Much of what was initially developed for CRM concerned technology solutions and systems rather than what needed to go into those systems. Marketing research techniques—such as competitive intelligence, focus groups, and surveys—are all possible inputs to this first stage of the CRM cycle. As the CRM cycle begins, it becomes clear that CRM is about cross-functional integration of activities in a firm that will lead to customer loyalty. The drivers of this process are those with knowledge of marketing strategy.

Stage 2, business development, begins with the assumption that we understand the needs of our customers and have developed an offering that should satisfy them. Now that an offering has been developed that satisfies an identified customer need, the technological tools can be unleashed to seek out more detailed customer information. Using such tools as learning and knowledge management, those relationships are identified, and the nature of the relationships and interactions is used to build a knowledge base. The action then moves to the technology side of CRM by tackling the data needs. Companies need to figure out at this stage how to capture data, store them, and determine which IT tools will best mine them. Data mining helps with this.

See Exhibit 8-4 for a flow model of the technology stage of the CRM cycle.

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Companies that have a CRM system follow a customer-centric approach. See Exhibit 8-5.

This stage relies on understanding the interactions of the current customer base by considering all customer touch points. With the vast amount of data that can be captured it is imperative to know what types of data to capture and how to use it for relationship management, considering such tools as customer segmentation and RFM analysis and predictive modelling. In addition, companies must consider how to safely store data. Today, consumer privacy is a significant issue given the amount and types of data that are captured and stored. Companies must abide by PIPEDA (the Personal Information Protection and Electronic Documents Act).

Even after the data have been collected and mined, they will only get a company so far in developing effective CRM. At Stage 3, companies need to look beyond the reams of data and see the people and companies that make up their customer base. CRM must be focused on relationship development, not just database development. Companies can use different methods and applications to build customer loyalty. Companies can develop campaigns and loyalty programs, they can try to cross-sell, and they can target their communications. They can look at product trials and distribution channel marketing. All these tools must have one goal: to truly change the way in which customers are managed and build a loyal customer base from a foundation of customer service. See Exhibit 8-8 for some common CRM marketing database applications.

8-4

Identify privacy issues in CRM

The three-stage process of CRM offers numerous options and great potential for data collection, but companies must incorporate strong policies on privacy to protect their customers. Online options are enticing given the potential access to data, as discussed in Chapter 5 on marketing research, but big data and online options can be a dangerous mix if not managed properly. When

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developing CRM systems, companies should familiarize themselves with legislation such as PIPEDA and the Privacy Act.

8-5

Determine the future challenges for CRM

While technology has been an important part of the growth and success of CRM, continued use of the newest and best technologies will be vital to CRM maintaining its relevance. Cloud storage has been one of the most impactful technological innovations.

There is a movement in CRM toward customer relationship automation.

The emergence of on-demand marketing is taking CRM to new levels. As a result of consumer expectations, companies must deliver high-quality experiences across all touch points with the customer.

Glossary Terms campaign management compiled lists customer relationship management (CRM) customer-centric data mining empowerment interaction knowledge management learning (CRM)

lifetime value (LTV) analysis on-demand marketing point-of-sale interactions predictive modelling recency-frequency-monetary (RFM) analysis response list touch points

Lesson Plan for Lecture Brief Outline with Suggested PowerPoint Slides Slides are available at login.cengage.com.

LEARNING OUTCOMES AND TOPICS

POWERPOINT SLIDES

Summarize customer relationship management 8-1 What Is Customer Relationship Management?

8-1a The Other CRM

Slides 4‒7

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LEARNING OUTCOMES AND TOPICS

POWERPOINT SLIDES

Explain the CRM cycle 8-2 The CRM Cycle Describe the three stages in the CRM cycle: marketing research, business development, and customer feedback 8-3 Steps in the CRM Cycle 8-3a The CRM Cycle—Stage 1 (Marketing Research) 8-3b The CRM Cycle—Stage 2 (Business Development) 8-3c The CRM Cycle—Stage 3 (Customer Feedback) Identify privacy issues in CRM 8-4 Privacy Concerns and CRM Determine the future challenges for CRM 8-5 The Future of CRM

Slide 9 Slides 10‒34

Slide 36 Slides 37–38

Lesson Plan for Group Work Activities in class that relate to group work are a good way to apply the concepts in each chapter and a meaningful way to engage students in active learning in the classroom. With each activity, it is at the discretion of the instructor to determine how to best apply the group work that is provided. This will likely depend on factors such as classroom size, classroom layout, and overall delivery method. Each group activity below has a task that is detailed, followed by an overview of the outcome that results from engaging in the activity.

Activity #1 Task Companies with a strong online presence have been quick to adopt many concepts of CRM. A good example is Indigo.ca, which gathers information about a customer each time the customer inputs data or purchases products.

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In this exercise, students should select a business that they believe has a good CRM program. It will be easier if at least one of the students is a current customer of that particular business (or has purchased something from that business in the past). Divide the class into teams of four or five students and have them do the following: 1. Visit a few websites and select one that the team believes has a good CRM program.

2. Define the elements of a good CRM program. What elements does this Internet business have?

3. Describe the kinds of information the business requests of customers or potential customers.

What information is required and what is optional?

4. Describe how the business handles privacy and security issues.

5. Explain what kinds of interactions the customer has with the business. What channels are used for these interactions?

Students should prepare a short presentation to make to the class.

Outcomes This is a good exercise to let students complete without much in the way of instruction. The reason for this is that CRM is often ignored as part of marketing, and it is an area that many students believe is mere common sense. The overall objective should be to improve and build relationships with customers. Student groups will likely come up with good ideas but won’t have much of a structure to follow.

Once the activity is completed, you can provide structure around the three-stage process described in the text. It should become clear that developing a process to follow to build relationships involves a lot more than simply a series of ideas.

Activity #2

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Task A very pressing issue within the concept of CRM is privacy. Many customers are concerned about databases because of the potential for invasion of privacy. The sheer volume of information that is aggregated in databases makes this information vulnerable to unauthorized access and use. A fundamental aspect of marketing using CRM databases is providing valuable services to customers based on knowledge of what customers really value. It is critical, however, that marketers remember that these relationships should be built on trust. Although database technology enables marketers to compile rich information about their customers that can be used to build and manage relationships, if these customers feel their privacy is being violated, then the relationship becomes a liability.

To ensure students fully understand the issues related to consumers privacy when it comes to CRM, have each student group visit the website www.priv.gc.ca/en/privacy-topics/privacy-laws-in-canada/the-personal-informationprotection-and-electronic-documents-act-pipeda and review PIPEDA in brief. Have each group take a section of that information, summarize it, and present it to the class. Then,

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have each group search for examples in the press of situations where privacy has been breached and how the legislation was applied.

Outcomes This is an excellent exercise to heighten student awareness of privacy issues as they relate to CRM. They should also be thinking about it with respect to themselves and how they share data about themselves through their online activity. Understanding the legislation is critical for all potential marketers, and it is never to early to be aware of and understand it.

Great Ideas for Teaching Chapter 8 Great Idea #1 Analyzing an Organization’s Web Presence The COVID-19 virus that brought the world to its knees in 2020 had a major impact on many retail businesses. Those that did survive were those that already had or quickly created a strong web presence and were able to capitalize on the online shopping explosion that resulted from brick-and-mortar stores being forced to reduce hours, reduce capacity, or close altogether.

Have students choose an established online retailer and a retailer that had to build an online presence quickly and compare their online shopping experiences. How are they different?

How could they be improved? They should provide examples of how the websites capture data.

How can these businesses use this data to improve sales?

Great Idea #2 Salesforce A box feature in the chapter provides a brief overview of Salesforce, one of the most recognizable enterprise software companies in the world, the name of which is now practically

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synonymous with CRM. Have students complete an online audit of the company. They should discuss its history, its products and services, and its impact on businesses today. Then, based on that information, have students formulate a plan to present to a local business specializing in kitchen renovations showing why the company should invest in one of Salesforce’s products to support their sales team as they seek to build a custom kitchen renovation business.

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Great Idea #3 Analyzing an Organization’s Web Presence Assignment Overview

The rapid proliferation of the World Wide Web has seen the emergence of a multitude of websites accompanied by a multitude of business models. While there is no certainty as to who will survive in the competitive Web environment, one thing is for certain: the Web has changed the way business is conducted. The intent of this assignment is to heighten student awareness and understanding of an organization’s Web strategy by critically evaluating its online presence. The assignment may be completed by students working in teams or individually, depending on the desired level of rigour in the analysis.

Project Objective

Company websites should mirror the ―marketing strategy‖ of the business those sites drive. This assignment serves the dual purpose of 1. making students critically evaluate and identify the key elements of an organization’s Web presence; and 2. requiring students to evaluate an organization’s website from the integrated marketing communications (IMC) perspective.

Students are assigned specific websites and are required to evaluate the key elements driving an organization’s Web strategy.

Overview of the Website •

Identify the nature of the site (product/service) provider. Develop a brief industry profile.

•

What is the value source from the customer vantage point?

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•

What is their revenue model (i.e., how they generate revenue)? Is their path to profitability clearly identified?

•

What is the source of volume? Which non-Web-driven activity is being replaced (substituted) by the website?

•

What is the target market? Develop a detailed profile of consumers attracted to the website and why they are attracted to it. What share of the existing business volume do they represent?

•

If this is a website for a traditional business, what is the value addition for the current or new customer base?

•

What are the primary methods used to drive traffic to the website? What is the implication of this strategy on profitability?

Competitor Analysis •

Who are the main non-Web competitors? What are their main competitive strengths?

•

Who are the Web competitors? What is their Web strategy? What are their unique strengths? Is their source of volume and target market share different from ours?

•

How does this website ―rate/rank‖ relative to the respective competitors’ strengths?

•

Is this website crossing traditional competitive boundaries and forming a new basis of competition?

•

What is the main competitive threat to this Web business?

Competitive Advantage—Is It Sustainable?

•

The Web brand: provide a brand positioning statement (the value proposition).

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How are the end users’ (and intermediary users’) value propositions redefined?

Compare the old benefits structure with the new, website-driven benefits structure.

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How is the delivery system redefined?

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What is the economic benefit (to the customer and to the business)?

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What benefits provided by the website (individually or in combination as a bundle) are truly unique and provide the potential for sustainable competitive advantage?

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What is the likely competitor response to this Web benefit structure?

Consumer Perspective •

Does this website provide a personalized and convenient shopping experience? Does it build a customer profile? Is this profile automatically deployed on subsequent visits?

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Is the website easy to use? Is it involving? Can it generate loyalty? Will it be in business five years from now (why)?

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Evaluate customer service/contact options provided.

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Is the website actively involved in conducting marketing research?

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What is the adopted privacy policy of the organization?

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What are some suggested improvements/modifications? How will they make for a more competitive/profitable and sustainable business?

Web Presence from the Integrated Marketing Communications (IMC) Perspective •

Discuss how this Web presence parallels the organization’s overall marketing strategy.

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Identify and match common elements of the creative strategy along with the media utilized in the promotional process.

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Evaluate the clarity and consistency of message components.

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Evaluate the tonality of the promotional campaign.

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Chapter 9 Product Concepts Learning Outcomes 9-1

Define the term product

The product offering, at the heart of an organization’s marketing efforts, is usually the starting point in creating a marketing mix. A product may be defined as everything, both favourable and unfavourable, that one receives in an exchange. A product may be a tangible good (a pair of shoes), a service (a haircut), an idea (―wear a mask in public to reduce the threat of the COVID19 virus‖), or any combination of these. The concept of a product will continue to evolve with technology in the mix. One technology already seeping into how products are defined, identified, and sold is augmented reality (AR). The marketing process identified in Chapter 1 is the same whether a product is a good, a service, an idea, or some combination of these.

9-2

Classify consumer products

Consumer products can be differentiated from business products according to intended use.

Consumer products are purchased to satisfy an individual’s personal wants. We need to know about product classifications because business and consumer products are marketed differently.

They are marketed to different target markets and tend to use different distribution, promotion, and pricing strategies.

There are several ways products can be classified, but the most widely used classification approach has four categories: (1) convenience products, (2) shopping products, (3) specialty products, and (4) unsought products. This approach classifies products on the basis of the amount of effort that is normally expended in the shopping process.

9-3

Define the terms product item, product line, and product mix

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More often than not, companies sell more than one product, with the consequence that the marketing program for one product affects, positively or negatively, the other products being offered. So, it is important to understand the distinction between a product item, a product line, and the product mix. A product item is a specific version of a product that can be designated as a distinct offering among an organization’s products (see Exhibit 9.1 in the text). A product line is a group of closely related products offered by the organization. An organization’s product mix includes all the products it sells. Product mix can be described in terms of product mix width, length, and depth.

Marketing strategies and mixes may be built around individual product items, product lines, or the entire product mix. Product line and mix decisions can affect advertising economies, packaging strategies, standardization of components, and the efficiency of the sales and distribution functions.

Over time, companies change product items, lines, and mixes to take advantage of new technical or product developments or to respond to the environment. They may adjust by modifying products, repositioning products, or extending or contracting product lines.

9-4

Describe marketing uses of branding

The success of any business or consumer product depends on the successful differentiation of the company’s products from those of its competitors in a positive and unique manner. Branding is the major tool marketers use to distinguish their products from those of the competition. A brand is a name, term, symbol, design, or combination thereof that identifies a seller’s products and that differentiates them from competitors’ products. Branding has three main objectives: (1) product identification, (2) generation of repeat sales, and (3) facilitation of new product sales.

A successful branding strategy results in enhanced brand equity and customer loyalty.

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Associated with branding is the concept of trademarks—the exclusive right to use a brand or part of a brand.

9-5

Describe marketing uses of packaging and labelling

Packaging is an important strategic part of the marketing mix. The product and its package are often inseparable in the consumer’s mind. Subtle changes in packaging can dramatically alter the consumer’s perception of the product. A package should communicate an image to the consumer that will help the firm achieve its positioning objectives. Packaging serves a number of purposes: (1) containing and protecting products, (2) promoting products, (3) recycling and reducing waste, and (4) facilitating the storage, use, and convenience of the product.

An integral part of any package is its label. Labelling strategy generally takes one of two forms. Persuasive labelling focuses on a promotional theme or logo, with information for the consumer taking secondary importance. Informational labelling is designed to help consumers make proper product selections and to lower cognitive dissonance after the purchase.

9-6

Discuss global issues in branding and packaging

In addition to brand piracy, international marketers must address a variety of concerns regarding branding and packaging, including choosing a brand name policy, translating labels and meeting host-country labelling requirements, making packages aesthetically compatible with host-country cultures, and offering the sizes of packages preferred in host countries. When planning to enter a foreign market with an existing product, a company has three options for handling the brand name: one brand name everywhere, adaptations and modifications, or different brand names in different markets.

9-7

Describe how and why product warranties are important marketing

tools

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Just as packaging is designed to protect a product, a warranty protects the buyer and provides essential information about the product. One part of the product is its warranty, a protection and information device for consumers. A warranty guarantees the quality or performance of a good or service. An express warranty is a guarantee made in writing; an implied warranty is an unwritten guarantee that a good or service is fit for the purpose for which it was sold. All sales have an implied warranty, and governments pass regulations covering express warranties.

Glossary Terms brand brand equity brand loyalty brand mark brand name business product cobranding consumer product convenience product express warranty family brand generic product generic product name global brand implied warranty individual branding informational labelling manufacturer’s brand persuasive labelling

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planned obsolescence private brand product product item product line product line depth product line extension product line length product mix product mix width product modification service mark shopping product specialty product trademark universal product codes (UPCs) unsought product warranty

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Lesson Plan for Lecture Brief Outline with Suggested PowerPoint Slides Slides are available at login.cengage.com.

LEARNING OUTCOMES AND TOPICS

POWERPOINT SLIDES

Define the term product 9-1 What Is a Product?

Slides 4‒5

Classify consumer products 9-2 Types of Consumer Products 9-2a Convenience Products 9-2b Shopping Products 9-2c Specialty Products 9-2d Unsought Products Define the terms product item, product line, and product mix 9-3 Product Items, Lines, and Mixes 9-3a Adjustments to Product Items, Lines, and Mixes Describe marketing uses of branding 9-4 Branding 9-4a Benefits of Branding 9-4b Branding Strategies 9-4c Trademarks Describe marketing uses of packaging and labelling 9-5 Packaging 9-5a Packaging Functions 9-5b Labelling 9-5c Universal Product Codes (UPCs) Discuss global issues in branding and packaging 9-6 Global Issues in Branding and Packaging Describe how and why product warranties are important marketing tools 9-7 Product Warranties

Slides 7‒12

Slides 14‒19

Slides 21‒27

Slides 29‒31

Slides 32‒33

Slide 34

Lesson Plan for Group Work Activities in class that relate to group work are a good way to apply the concepts in each chapter and a meaningful way to engage students in active learning in the classroom. With each activity,

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it is at the discretion of the instructor to determine how to best apply the group work that is provided. This will likely depend on factors such as classroom size, classroom layout, and overall delivery method. Each group activity below has a task that is detailed, followed by an overview of the outcome that results from engaging in the activity.

Activity #1 Task In most introductory marketing courses, the subject of consumer product packaging is discussed, at least in passing, as part of the product umbrella in the marketing mix. Some instructors address it in discussions of the bundle of benefits concept, the rationale that ultimately serves consumers’ interests. However you handle the subject, an alternative to the standard treatment of asking students what makes for good packages is to give them an example that the instructor has selected as the best consumer product package in existence and ask them to come up with reasons why. The product package in question is the banana peel.

Separating the class into teams of two to four students, giving each a banana, and then tasking them with coming up with as many reasons as they can to support your contention that the banana peel is the best packaging generates a healthy competition and can lead to some interesting rationales. Below are some of the many reasons students may come up with: •

protects the product from damage

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attracts attention because of bright colour

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informs consumer of freshness through colour change as it ages

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easy to carry (grip in hand, backpack, briefcase)

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easy to open

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resealable (to some degree)

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code number on label allows for automated checkout

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biodegradable

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product is instantly recognizable

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package size accurately depicts amount of product within

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package contains a single serving portion

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package doubles as a holder for product (no napkin needed)

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other uses: compost, practical jokes

Outcomes From these reasons, the instructor can then generalize, perhaps by bringing into the discussion the VIEW (visibility, information, emotional appeal, workability) rules for package evaluation.

The ultimate goal is to change the way students look at the world outside the classroom and acknowledge the role that other disciplines and perspectives can play in problem solving.

Activity #2 Task Divide the class into three- or four-member teams. Each team is to come up with a product that they really don’t like. That could be anything from apple juice to a certain shampoo, from a Volkswagen Golf to a pair of Bauer hockey skates. They are to print out a picture of the latest version of the product. Now, have teams trade that product’s picture with that of another group.

Each group is to analyze the product they’ve been given by the other group and present a short synopsis of why they think the other group dislikes the product, why it is still successful today, and how the product could be changed to ensure the other group comes to like it. As many textbook concepts as possible should be used in their discussion/presentation.

Outcomes

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Students should display an awareness of concepts such as utility, product differentiation, and line extension as well as pricing, placement, and promotion. Students should get some real, informal, hands-on research experience, and they can learn to have fun and entertain their classmates while working in a team and developing important team-building skills.

Great Ideas for Teaching Chapter 9 Great Idea #1 Discussion Board Topics to Encourage Participation Refer to the Instructor’s Manual for Chapter 1 in the ―Great Ideas for Teaching‖ section to read about the benefits and details around discussion boards.

DISCUSSION BOARD TOPIC A 1. A consumer product is bought to satisfy an individual’s personal wants. Although there are several ways to classify them, the most popular approach includes these four categories: convenience products, shopping products, specialty products, and unsought products.

2. Review the descriptions of these categories in the text (see section 9-2 Types of Consumer Products).

3. Then, describe products you have purchased recently that represent each category. What made each product fall into that category for you?

DISCUSSION BOARD TOPIC B 1. Rarely does a company sell a single product. More often, it sells a variety of products.

Marketing managers make important decisions regarding the number and types of products a company should sell under a brand name in a given market.

2. Review section 9-3 Products Items, Lines, and Mixes.

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3. Visit the Subaru Canada website and, using the information you find there, explain the concepts of product items, product lines, product mixes, product-mix width, product-line length, and product-line depth. What has been the value to Subaru Canada of expanding their products to include the variety that they have? Does each of the products in the product line have its own marketing mix? Are there any synergies and, if so, what is the value of this synergy to Subaru?

Great Idea # 2 Logos and Branding Go online and gather images of 10 different logos to show the class. Some good ones to include are Amazon, CIBC, Dominos Pizza, eBay, Starbucks, HBC, MEC, Twitter, Apple, Coca-Cola, McDonalds, Mercedes Benz, and Buick. Once the logos have been posted for the students to view, have the students answer the following questions: 1.

Which logos do you recognize?

2. Why do you think the logos were designed the way they were? What are they trying to communicate?

3. Are logos used for quick recognition or are they trying to tell a story? Could they be used for both?

4. How often should a logo be changed? Choose one of the logos shown and research how the logo has evolved over the years.

5. In addition to the brand’s logo, what are some other brand elements that are evident in helping to tell the story?

6. Does every product or service need a logo? Why or why not?

Great Idea #3

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Win, Lose, or Draw Brands Ask students to guess the names of the top 10 brands in the world. Then, provide a list of the top 10 brands in the world, but make sure you give only the textual names of each brand. There are numerous sources for these top-10-brand lists. Interbrand is a popular one and it’s also a Canadian firm: https://interbrand.com/best-brands. Then, choose three random brands from the list and ask students to draw what their logos look like from memory. (Make sure students turn off their laptops and phones so they don’t cheat!) This is a great way for students to think about what is successful about brands, how we are all familiar with brands, and the pervasiveness of brands in our society generally. The game also provides a great introduction to brand names and brand marks and the importance of both.

Chapter 10 Developing and Managing Products Learning Outcomes 10-1 Explain the importance of developing new products and describe the six categories of new products New products are important to sustain growth, increase revenues and profit, and replace obsolete items. New-product development and introduction are also important to meeting ever-changing consumer wants and are compounded by the development of new technologies and shrinking product life cycles. Companies spend huge sums of money to develop new products despite knowing their high failure rates. The newness of a product cannot be defined using any one set of criteria—how ―new‖ a product is depends on the perception of its newness by customers and the company. New products can be classified as (1) new-to-the-world products (discontinuous

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innovations), (2) new product lines, (3) additions to existing product lines, (4) improvements to or revisions of existing products, (5) repositioned products, or (6) lower-cost products. Each different type of new product introduction would require a different type of marketing strategy to achieve the organizational goals behind the new product. See Exhibit 10-1.

The product life cycle concept reminds us that developing and introducing new products is vital to business growth and profitability. Major manufacturers expect new products to account for a substantial portion of their total sales and profits.

10-2 Explain the steps in the new-product development process Most companies use a formal new-product development process, which usually begins with identifying the firm’s new-product strategy (refer to Exhibit 10.2 in the text), which outlines the characteristics and roles of future products. Each subsequent stage in the process acts as a screen, filtering out ideas that should not be considered further. After setting a new product strategy, the steps are as follows: (1) idea generation, (2) screening, (3) business analysis, (4) development, (5) testing, and (6) commercialization. It is critical to keep in mind here that the preceding stages of the new-product development process must be consistent with the overall marketing strategy that a business has in place.

10-3 Discuss global issues in new-product development Increasing globalization of markets and of competition encourages multinational firms to consider new-product development from a worldwide perspective. A marketer with global vision seeks to develop products that can easily be adapted to suit local needs; the goal is not simply to develop a standard product that can sell worldwide. Smart marketers also look for good product ideas worldwide, not just in their home country. Increasing globalization of markets and of

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competition encourages multinational firms to consider new product development from a worldwide perspective.

10-4 Explain the diffusion process through which new products are adopted Companies sometimes introduce products that are new to the world or that are true innovations.

This poses a significant marketing challenge that requires a deep understanding of how customers go about adopting a product they have never heard of before. A person who buys a new product they have never before tried may ultimately become an adopter, a consumer who was happy enough with the trial experience with a product to use again. Diffusion is the process by which the adoption of an innovation spreads. Adopters in the diffusion process belong to five categories: (1) innovators, (2) early adopters, (3) early majority, (4) late majority, and (5) laggards. Product characteristics that affect the rate of adoption include complexity, compatibility with existing social values, relative advantage over substitutes, observability, and trialability. The diffusion process is largely dependent upon word-of-mouth (both digital and traditional) promotion among consumers and upon communication from marketers to consumers.

10-5 Explain the concept of product life cycles The product life cycle is one of the most familiar concepts in marketing and a common marketing management tool (refer to Exhibit 10.4 in the text). It has been adopted as a way to trace the stages of a product’s acceptance from introduction to demise. The stages are introduction, growth, maturity, and decline.

The length of time a product spends at any one stage of the product life cycle may vary dramatically—from a few weeks to decades. The life cycle concept does not predict how long a product will remain in any one stage; rather, it is an analytical tool to help marketers understand where their product is now, what may happen, and which strategies are normally appropriate.

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Glossary Terms adopter brainstorming business analysis commercialization concept test decline stage development diffusion growth stage innovation introductory stage maturity stage new product new-product strategy product category product life cycle (PLC) screening simulated (laboratory) market testing test marketing

Lesson Plan for Lecture Brief Outline with Suggested PowerPoint Slides Slides are available at login.cengage.com.

LEARNING OUTCOMES AND TOPICS

POWERPOINT SLIDES

Explain the importance of developing new products and describe the six categories of new products 10-1 The Importance of New Products 10-1a Categories of New Products

Slides 4‒8

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LEARNING OUTCOMES AND TOPICS

POWERPOINT SLIDES

Explain the steps in the new-product development process 10-2 The New-Product Development Process 10-2a New-Product Strategy 10-2b Idea Generation 10-2c Idea Screening 10-2d Business Analysis 10-2e Development 10-2f Test Marketing 10-2g Commercialization Discuss global issues in new-product development 10-3 Global Issues in New-Product Development Explain the diffusion process through which new products are adopted 10-4 The Spread of New Products 10-4a Diffusion of Innovation 10-4b Product Characteristics and the Rate of Adoption 10-4c Marketing Implications of the Adoption Process Explain the concept of product life cycles 10-5 Product Life Cycles 10-5a Introductory Stage 10-5b Growth Stage 10-5c Maturity Stage 10-5d Decline Stage 10-5e Implications for Marketing Management

Slides 10‒20

Slide 22

Slides 24‒29

Slides 31‒35

Lesson Plan for Group Work Activities in class that relate to group work are a good way to apply the concepts in each chapter and a meaningful way to engage students in active learning in the classroom. With each activity, it is at the discretion of the instructor to determine how to best apply the group work that is provided. This will likely depend on factors such as classroom size, classroom layout, and

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overall delivery method. Each group activity below has a task that is detailed, followed by an overview of the outcome that results from engaging in the activity.

Activity #1 Task The top brands by value in Canada in 2020, according to Brand Directory (the most comprehensive directory of brand values and company profiles, updated annually since 2008), include the ―big five‖ banks in the top five positions: TD, RBC, Scotiabank, BMO, and CIBC. Additional brands include TELUS, Rogers, McCain, Tim Horton’s, Lululemon, and Canadian Tire. See the complete list here: https://brandirectory.com/rankings/canada/table.

Divide the class into groups of four to six. Have each group pick a company from the list of the top 100 brands. Then, have the groups brainstorm new products that could extend their assigned brand beyond the products it is known for. Give the students 15 minutes to brainstorm, and then come back together as a class to discuss the viability of the options suggested.

Interbrand lists the top global brands (https://interbrand.com/best-global-brands). LEGO is listed as one of the top global brands at number 72. How has LEGO managed to stay relevant and among the top 100 global brands since its product’s introduction in 1932?

Outcomes Students are able to assess brands based on shared experiences with these brands. This exercise has them consider brands that they likely have some experience with and, through conversation, they begin to recognize how branding supports brand growth and recognition. The conversation about LEGO will help them understand the relevance and importance of investing in a brand.

Activity #2 Task

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Exhibit 10.6 shows the relationship between the stages in the product life cycle and the diffusion process. Present students with this scenario: Knowing what you do about the various adopter categories and the implications of each stage of the PLC on sales and profits, present a launch and growth strategy for a new glutenfree and egg-free cookie that is targeted to children.

Outcomes This exercise is excellent for engaging with students concerning two very important product concepts by using their creativity. This exercise is the beginning of enabling strategic thinking on students’ part as they learn to become strategic marketers.

Great Ideas for Teaching Chapter 10 Great Idea #1 Discussion Board Topics to Encourage Participation Refer to the Instructor’s Manual for Chapter 1 in the ―Great Ideas for Teaching‖ section to read about the benefits and details around discussion boards.

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DISCUSSION BOARD TOPIC A 1. An innovation is a product perceived as new by a potential adopter. Diffusion is the process by which the adoption of an innovation spreads. There are five categories of adopters: innovators, early adopters, early majority, late majority, and laggards. A consumer falls into a different category of adopter depending on the type of product involved.

2. Review the discussion in the text on how new products spread (see section 10-4 The Spread of New Products).

3. Then, choose a product that you have recently adopted. Which category of adopter are you for that product? Do you fall into a different category for a different type of product? Give an example.

DISCUSSION BOARD TOPIC B 1. The product life cycle is a concept that provides a way to trace the stages of a product’s acceptance from its introduction to its decline.

2. Review the stages of the product life cycle in the text in section 10-5 Product Life Cycles.

3. Suggest an example of a product in each stage of the product life cycle. Explain your examples. Which of these products do you own? What does this suggest about the type of adopter you are?

Great Idea #2 There are several websites that list new products that have recently been launched. One such site is www.oberlo.ca. Time magazine also lists the 25 best products launched at the annual Consumer Electronics Show: https://time.com/5761770/best-ces-2020. Have students visit either site and pick a new product that interests them. Then, they should do as much research as they need to do to fully understand the product. Now, students will present a plan to gain acceptance

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of the product by each adopter category and to move it through each of the stages of the PLC. They should be sure their plan addresses the characteristics of each of the adopter categories.

Great Idea #3 Through online research, students should identify a product failure that they find interesting.

There are many sites that list product failures (for example, www.cbinsights.com/research/ startup-failure-post-mortem). Now, students should summarize what the product is, what it was intended to do, and who its target market was. Based on their research and the knowledge they have gained from this chapter, students will discuss why they think the product failed and what should have been done to prevent that failure. Students will then present a plan to successfully launch the product today.

Chapter 11 Services and Non-profit Organization Marketing Learning Outcomes 11-1 Discuss the differences between services and goods A service is the result of applying human or mechanical efforts to people or objects. Services involve a deed, a performance, or an effort that cannot be physically possessed. Today, the service sector substantially influences the Canadian economy. Services have four unique characteristics that distinguish them from goods. Services are intangible performances in that they lack clearly identifiable physical characteristics, which makes it difficult for marketers to communicate their specific benefits to potential customers. Services are characterized by inseparability; that is, the production and consumption of services occur simultaneously. Because

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services depend on the service provider, the quality of the service can reveal inconsistency. The final characteristic of services is inventory; services cannot be stored, warehoused, or inventoried.

11-2 Describe the components of service quality and the gap model of service quality Because of the unique characteristics of services, service quality is more difficult to define and measure than the quality of tangible goods. The improvement of service quality is one of the most critical challenges facing business leaders today. Customers evaluate service quality along the dimensions of reliability, responsiveness, assurance, empathy, and tangibles. Overall service quality is measured by combining customers’ evaluations for all five components (refer to Exhibit 11.1 in the text), known as the gap model of service quality. The gap model highlights the five critical areas that require common understanding and consistency at all levels within the organization to create a flawless service experience.

11-3 Develop marketing mixes for services Positioning services favourably in the eyes and minds of potential customers is more difficult than positioning goods. This is because of the many unique characteristics that define services: intangibility; the inseparability of production and consumption; heterogeneity; and perishability.

Elements of the marketing mix (product, price, promotion, and distribution) need to be adjusted to meet the special needs created by the characteristics of services. In addition, effective marketing of services requires the management of four additional Ps: people, process, productivity, and physical environment.

11-4 Discuss relationship marketing in services

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Many services involve an ongoing interaction between the service organization and the customer. Thus, these services can benefit from relationship marketing, the strategy described in Chapter 1, as a means of attracting, developing, and retaining customer relationships. The idea is to develop strong loyalty by creating satisfied customers who will buy additional services from the firm and who are unlikely to switch to a competitor. Satisfied customers are also likely to engage in positive word-of-mouth communication, thereby helping bring in new customers.

Relationship marketing involves attracting, developing, and retaining customer relationships.

There are four levels of relationship marketing: level 1, financial, focuses on pricing incentives; level 2, social, uses pricing incentives and social bonds with customers; level 3, customization, encourages loyalty through intimate knowledge of the consumer; and level 4, structural, uses financial and social bonds, with the addition of structural bonds, to build long-term relationships.

11-5 Explain internal marketing in services The service and the service provider are inseparable. Thus, the quality of a firm’s employees is crucial to delivering a consistently superior product and to building long-term relationships with customers. Employees who like their jobs and are satisfied with the firm they work for are more likely to deliver superior service to customers. Their superior service, in turn, increases the likelihood of retaining customers. Internal marketing means treating employees as customers and developing systems and benefits that satisfy their needs. Internal marketing activities include competing for talent, offering a vision, training employees, stressing teamwork, giving employees the freedom to make decisions, measuring and rewarding good service performance, and knowing employees’ needs.

11-6 Describe non-profit organization marketing

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Canada’s non-profit and voluntary sector includes over 170,000 organizations. More than 2 million people are employed in the non-profit sector, generating 8.1 percent of the nation’s gross domestic product. Non-profit organizations do not seek to make a profit for redistribution to owners or shareholders. Rather, their focus is often on generating enough funds to deliver the service while covering expenses. Non-profit marketing is the effort by non-profits organizations to bring about mutually satisfying exchanges with target markets.

Glossary Terms assurance core service credence quality empathy experience quality gap model heterogeneity inseparability intangibility internal marketing mass customization

non-profit organization (not-for-profit) non-profit organization marketing perishability public service advertisement (PSA) reliability responsiveness search quality service supplementary services tangibles

Lesson Plan for Lecture Brief Outline with Suggested PowerPoint Slides Slides are available at login.cengage.com.

LEARNING OUTCOMES AND TOPICS

POWERPOINT SLIDES

Discuss the differences between services and goods 11-1 How Services Differ from Goods 11-1a Intangibility 11-1b Inseparability 11-1c Heterogeneity 11-1d Perishability

Slides 4–8

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LEARNING OUTCOMES AND TOPICS

POWERPOINT SLIDES

Describe the components of service quality and the gap model of service quality 11-2 Service Quality 11-2a Evaluating Service Quality 11-2b The Gap Model of Service Quality Develop marketing mixes for services 11-3 Marketing Mixes for Services 11-3a Product (Service) Strategy 11-3b Process Strategy 11-3c People Strategy 11-3d Place (Distribution) Strategy 11-3e Physical Evidence Strategy 11-3f Promotion Strategy 11-3g Price Strategy 11-3h Productivity Strategy Discuss relationship marketing in services 11-4 Relationship Marketing in Services Explain internal marketing in services 11-5 Internal Marketing in Service Companies Describe non-profit organization marketing 11-6 Non-profit Organization Marketing 11-6a What Is Non-profit Organization Marketing?

11-6b Unique Aspects of Non-profit Organization Marketing Strategies

Slides 10‒14

Slides 16‒28

Slides 30‒31 Slide 33 Slides 34–39

Lesson Plan for Group Work Activities in class that relate to group work are a good way to apply the concepts in each chapter and a meaningful way to engage students in active learning in the classroom. With each activity, it is at the discretion of the instructor to determine how to best apply the group work that is provided. This will likely depend on factors such as classroom size, classroom layout, and overall delivery method. Each group activity below has a task that is detailed, followed by an overview of the outcome that results from engaging in the activity.

Activity #1 Task

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Non-profit organizations serve several stakeholders. Have students name five non-profits. They should then determine the respective stakeholders of those organizations. After that has been done, break the class into groups. Have each group select one of the non-profit organizations and determine the benefits that each of the identified stakeholders desires from the non-profit organization. Based on that knowledge, have the students design a strategy to appeal to each of these stakeholders to make a financial contribution to the organization. The financial contribution can be anything from a small monthly gift right up to a large gift of funds pledged over five years. After they have had time to do this, have them present their ideas and explain why they believe their approach will achieve their objectives.

Outcomes Non-profits rely on donations from a variety of stakeholders to be able to offer their services. To build a successful pipeline for donations, non-profit marketers must understand the motivations of the various stakeholders and create customized strategies for engagement, stewardship, and recognition. This exercise will demonstrate that importance.

Activity #2 Task Often, non-profit marketing involves trying to convey serious ideas to consumers. The challenge is to gain attention for a non-profit without overwhelming the audience with negative or contentious information. Habitat for Humanity is a non-profit (see the box feature in the textbook) that relies on volunteers and donations to build homes for those who otherwise may not be able to afford to own one. Have students create a campaign to encourage volunteers and donations from people and businesses in their hometown for a Habitat for Humanity build.

Students should then present their campaigns to the class.

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Outcomes Services include much of what is offered by the non-profit companies, which usually sell ideas or causes. It is important for non-profit marketers to cut through the clutter of for-profit marketing and make a case for the consumer to pay attention to their ideas.

Great Ideas for Teaching Chapter 11 Great Idea #1 Internal Marketing in Service Companies Services are performances, so the quality of a company’s employees is an important part of building long-term relationships with customers. Employees that like their jobs and are satisfied with the company they work for are more likely to deliver superior service to customers. Thus, it is critical that service companies practice internal marketing. Present the following scenario to the students: You have been hired as the human resources manager for a small chain of boutique gyms targeting high-income people who want quality workouts, experienced personal trainers, an attractive environment, and high-quality equipment. Your membership research indicates that one-year memberships renewals are low compared to industry standards. You believe this is a result of members not feeling a sense of belonging and kinship with the trainers.

Develop a strategy to deal with this issue that recognizes the importance of internal marketing.

Great Idea #2 A Live Consumer Testing Project on Service Marketing A project that involves student participation invariably creates more enthusiasm about service marketing among the students. Also, it cultivates a camaraderie among them.

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As part of the learning process, have students evaluate two similar service establishments in the area. For convenience, they can choose any two similar restaurants; for example, Wendy’s and McDonald’s. The students will first establish the goals for the project and then choose variables they wish to measure and the measuring instrument they want to use. Once this is done, each student is equipped with two copies of the measuring instrument—one for each restaurant.

Typically, the project goals centre on measuring service quality, price, speed of service, and so on. Often, the measurement instrument is the semantic differential method, which has 10 bipolar adjectives reflecting potency (ambience), competency (service quality), and evaluative (food quality) dimensions. The students will visit these restaurants in two- or three-member groups and eat there to evaluate the restaurants on 10 determined semantic differential scales.

They will include items such as food quality, variety, price, service quality, atmosphere, furniture, location, layout, speed of service, and cleanliness, ranked on a seven-point scale (1 = good; 7 = bad).

These values are totalled in class. This is followed by a class discussion on what is wrong with each of the restaurants and how they can possibly improve the quality of their service mix while recognizing the fact that giving a perfect service is not practical and it is expensive to do so.

This mini-project is both entertaining and educative. It also helps cultivate a group spirit in the class. The students eat out together (each student pays for their own food) to evaluate two similar restaurants (preferably chain restaurants). Also, it provides students with a hands-on experience in setting objectives for measurement, developing scales of measurement, applying a method of measurement, and analyzing and interpreting the data generated by this method. Thus, the major aim of the project is to educate students on setting up measurement objectives and

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using a measurement instrument to compare two identical service establishments. This measurement procedure has other applications such as evaluating any two similar types of businesses (e.g., dry cleaning, auto repair, hospitals, and so on).

Great Idea #3 Provide students with the following scenario: You have been hired by the Canadian Football League’s Winnipeg Blue Bombers to develop a marketing strategy to increase attendance at their home games. With the 2020 season cancelled due to COVID, enthusiasm for the game seems to have waned, negatively affecting season-ticket sales. Complete a thorough research analysis of the team and their performance, ticket sales and any other variables you deem important. Then complete a comprehensive, actionable and defendable marketing strategy to increase season-ticket sales and with emphasis on retention. Include all components of a service marketing strategy. Be prepared to present this to the class with rationale for all components.

Great Idea #3 Non-profit Marketing Plan Project Marketing instructors like to give their students the opportunity to do real-world projects, especially in a capstone undergraduate marketing course. Working with for-profit businesses can be problematic, though, for a variety of reasons: (1) students are not given enough information by the firm to address issues thoroughly; (2) students are not taken seriously by the firm or are not given enough of the managers’ time; (3) competitors, who may even donate to the university, may get upset with other businesses getting free advice; and (4) students may feel they are doing the grunt work for a potential paid consulting project for their instructor.

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One way to give students the needed experience in creating a marketing plan while avoiding the above problems is to work with non-profit organizations. One’s local United Way director may be an excellent resource for steering marketing instructors to those non-profit organizations that are willing to work with students and that have more of a marketing orientation. The purpose of this marketing plan project is to allow the students the opportunity to apply what they have learned regarding marketing strategy, management, and planning. This project allows students the chance to provide a real service to the community while practising their marketing skills.

If possible, instructors should find a couple of organizations to give students a choice of who they would like to work with and, through the presentations made at the end of the quarter, to expose the entire class to different marketing issues. Non-profit directors may each make a short presentation to the class about their organizations early in the quarter. At the end of the quarter, the directors can return for the students’ oral presentations of the marketing plan and receive a copy of the final plan.

The marketing plans the students create need to include the following: I. Executive Summary (synopsis and major aspects of the marketing plan) II. Situation Analysis (examine the environment) SWOT Analysis A. internal strengths and weaknesses (recognized by customers—both those who use the service and donors) B. external opportunities and threats (external threats to marketing activities and opportunity analysis) III. Desired Outcomes/Marketing Objectives (goals and objectives)

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IV. Marketing Strategies A. target market selection (either a specific target market of donors or users of the not-forprofit’s services) B. marketing mix (product, price, promotion, place) V. Action Plans (tactics)

Chapter 12 Setting the Right Price Learning Outcomes 12-1 Explain the importance of price and the pricing process Price is that which is given up in an exchange to acquire a good or service. It is typically the money exchanged for the good or service, but it may also include the time lost while waiting to acquire the good or service. Price is a source of revenue for the firm, not a cost centre like many promotional activities. Price involves an understanding of revenues, expenses, and the resulting profit. Many economic factors go into pricing a product or service, but there are also many other factors that are more psychological.

12-2 Describe the four-step pricing process The first step in the pricing process is to establish pricing objectives. Companies must determine whether they are profit oriented, are focused on meeting a profit objective or a target return, or will look to sales as a way to create their pricing goals. All pricing objectives have trade-offs that managers must weigh. A profit-maximization objective

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may require a bigger initial investment than the company can commit or wants to commit. A sales-oriented objective, such as reaching the desired market share, often means sacrificing short-term profit because, without careful management, long-term profit objectives may not be met. Meeting the competition, a status quo objective, is the easiest pricing objective to implement, but it can also be short-sighted and costly.

The second step is to estimate costs, demand, and profit. This step is tied in with the product and, specifically, the product life cycle. There are two kinds of costs to consider: variable and fixed. Estimating demand can be tricky but is assisted by considering price sensitivity and the elasticity of demand. Break-even analysis is a tool to bring together the concepts of demand, costs, and profits. Break-even analysis calculates the threshold of either units sold or total revenue required that a company must meet to cover its costs.

The third step is to establish a pricing strategy. Companies can decide to price higher (skimming), lower (penetration), or about the same (status quo) as the competition.

The fourth step is to establish a pricing tactic. Pricing tactics tend to be used once the base price has been established. They do not change the general price level but result in changes within a general price level. Tactics include discounts, geographic pricing, value-based pricing, and dynamic pricing.

12-3 Recognize the legalities and ethics of setting a price Some pricing decisions are subject to government regulation. Companies and marketers need to be aware of the laws within the Competition Act. The act covers legal and ethical issues relating

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to deceptive pricing, price fixing, predatory pricing, resale price maintenance, and price discrimination.

Glossary Terms bait pricing base price break-even analysis cash discount costs cumulative quantity discount deceptive pricing demand dynamic pricing flexible pricing (variable pricing) functional discount (trade discount) loss-leader pricing market share noncumulative quantity discount odd‒even pricing (psychological pricing) pay-what-you-want pricing penetration pricing predatory pricing price

price bundling price elasticity of demand price fixing price lining price sensitivity price skimming price strategy professional services pricing profit quantity discount resale price maintenance return on investment (ROI) revenue seasonal discount single-price tactic status quo pricing two-part pricing unbundling value-based pricing

Lesson Plan for Lecture Brief Outline with Suggested PowerPoint Slides Slides are available at login.cengage.com.

LEARNING OUTCOMES AND TOPICS

POWERPOINT SLIDES

Explain the importance of price and the pricing process 12-1 The Importance of Price and the Pricing Process 12-1a What Is Price?

12-1b The Importance of Price to Marketing Managers

Slides 3‒6

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LEARNING OUTCOMES AND TOPICS

POWERPOINT SLIDES

Describe the four-step pricing process 12-2 The Pricing Process 12-2a Step 1—Establish Pricing Objectives 12-2b Step 2—Estimate Demand, Costs, and Profits 12-2c Step 3—Choosing a Price Strategy 12-2d Step 4—Using a Price Tactic Recognize the legalities and ethics of setting a price 12-3 The Legality and Ethics of Setting a Price 12-3a Bait Pricing 12-3b Deceptive Pricing 12-3c Price Fixing 12-3d Predatory Pricing 12-3e Resale Price Maintenance 12-3f Price Discrimination

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Slides 34‒35

Lesson Plan for Group Work Activities in class that relate to group work are a good way to apply the concepts in each chapter and a meaningful way to engage students in active learning in the classroom. With each activity, it is at the discretion of the instructor to determine how to best apply the group work that is provided. This will likely depend on factors such as classroom size, classroom layout, and overall delivery method. Each group activity below has a task that is detailed, followed by an overview of the outcome that results from engaging in the activity.

Activity #1 Task Divide the class into groups of three to five students and give them the following scenario: Imagine that you are a marketing team for a mid-sized amusement park. You attended an industry-wide meeting where a colleague gave a talk about new pricing strategies for amusement parks. You were very motivated by the seminar. You now must outline a new

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pricing strategy for the park. As a team, decide on a base price (either a single, high entrance fee or à la carte, pricing each attraction separately). Then, consider refinements for other situations (group pricing, season passes, bundles, etc.).

Each group should present its strategy to the class. The class can then decide which plan is most viable.

Outcomes This exercise is designed to ensure the students understand the complexity of developing a pricing strategy and the various tools available to create the most effective price plan. The process of having them decide which plan is most viable will enable excellent class discussion and will ensure all students understand the strategy behind creating the best pricing plan.

Activity #2 Task Have students split up into groups and collect price quotes for airline tickets to a city with departure dates that are less than 7 and 14 days away as well as over 21 days from the present date. Have groups pick different routes. Have some groups go to the airlines’ websites while others are restricted to online travel sites that compile multiple offers. How do the prices differ?

Then, have students search for pricing that includes a Saturday night stay and pricing that excludes a Saturday night stay. How do the prices vary now?

Have students then check the same flight schedule to compare economy-class, businessclass, and first-class fares. What kind of pricing strategy is being used?

Outcomes The goal of this exercise is to make students aware of pricing strategies used by the airline industry. This activity brings up an important concept in pricing in the airline industry—yield

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management. Given the nature of proving a service, especially one that expires at a specific time, it is important to price flights based on simultaneously getting the most revenue but also filling seats with someone willing to pay some price, as there is no inventory that can be stored for airline flights. Having different groups search for different prices from different sites should show how airlines try their best to offer up a variety of price tactics and strategies depending on the context of time and demand.

There are many variant factors in price, including value and perception. This activity works through many preconceived notions about pricing and sees students work through the complicated world of yield management. They will become better consumers once they understand how pricing is established and what the goals are when determining a selling price to the market.

Activity #3 Task Present students with the following scenario: You are launching a store on Etsy that sells leather-bound journals that you create yourself using a time-honoured leather-making process you have perfected over the years by making journals for friends and family. There are seven different journal styles that are of three different quality levels in five different colour tones. The journals can be made with 100 to 600 pages in them. The paper is high quality and highly tactile. Create a pricing strategy for your business that simplifies consumers’ decision making, recognizing the various quality levels offered, the fact that this is a new product with competition (albeit not as great quality nor as unique as your journals), and that your objective in your first year is to sell as many journals as possible. In your strategy, consider that a critical part of your success is to ensure

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competitive shipping rates and that demand during key gift-giving periods must be capitalized on.

Outcomes By applying the concept of a pricing strategy for a product, students will get a better understanding of the steps in the pricing process and the considerations that go into setting a price.

Great Ideas for Teaching Chapter 12 Great Idea #1 Tesla It has been said that Tesla’s pricing strategy is ―as hard to follow as a plastic bag in a hurricane.‖1 While auto manufacturers are known for adjusting prices yearly, research on Tesla seems to demonstrate that it changes its prices multiple times in a single year. For example, in the beginning of 2019, Tesla lowered prices by $2000 to compensate for the loss of the federal tax credit that was offered to consumers for purchasing fuel-efficient electric cars. The lowestend versions of the Model S and Model X were also discontinued. Then, just a few months later, the remaining Model S and Model X cars saw significant further price cuts. That was followed by a standardization of Tesla’s global lineup and a reduction in the number of options offered on various models to limit pricing options in an attempt to ―improve affordability for customers.‖2 Yet, it has been noted that Tesla dealerships will not negotiate price at the point of purchase.

Every customer pays the same price for the same model.

1

https://carbuzz.com/news/tesla-s-pricing-strategy-just-got-more-confusing-again Ibid

2

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Have students complete their own research on Tesla and the Tesla product lineup and, upon completion of that research, present a discussion on its pricing strategy. Students should comment on whether they believe the strategy is a good one or not, with an appropriate rationale.

Great Idea #2 Price Legality: The Competition Act In June 2019, Ticketmaster L.L.C., TNow Entertainment Group, Inc., and Ticketmaster Canada LP were ordered to pay a $4 million penalty and $5 million for costs incurred by the Competition Bureau during its investigation into alleged misleading pricing claims in online ticket sales. Have students research this case, discuss the basis for the case, the legality being contested, and the impact the decision has had on the industry since being handed down. Students will then conduct further research on the Competition Bureau site to present another case where an organization has been found guilty of a pricing legality violation. They will discuss the nature of the case, the legal issue being contested, and the results.

Great Idea #3 Rip-Off Artists—Assessing Overpriced Items Overpriced items list. Ask students to write down the most overpriced items in the marketplace.

Tell them they should think of products that seem inexpensive to produce but are priced at a high mark-up in the marketplace. Then, provide students with the list from www.moneytalksnews .com/19-of-the-most-outrageously-overpriced-products. It is very likely students will be surprised to see what is number one on the list, and this can lead to an interesting discussion on what consumers are willing to pay for without complaining, as compared to price increases that are met with some level of consumer backlash.

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Within this concept, you can present the students with the LARQ Self-Cleaning Water Bottle (https://www.livelarq.com) that sell for over $100 and have them discuss the sensibility of this price point.

Chapter 13 Marketing Channels and Supply Chain Management Learning Outcomes 13-1 Explain the nature of marketing channels Marketing channels describe the journey taken by marketing offerings from those who produce them to those who consume them. A marketing channel is a business structure of interdependent organizations that eases the transfer of ownership as products move from producer to consumer.

Represented by ―place‖ in the marketing mix, it encompasses the processes involved in getting the right product to the right place at the right time. Members of a marketing channel (intermediaries) create a continuous and seamless supply chain that performs or supports the marketing channel functions. The supply chain is the connected chain of all the business entities, both internal and external to the company, that perform or support the marketing channel function. As products move through the supply chain, channel members facilitate the distribution process through three key actions: providing specialization and division of labour, overcoming discrepancies, and providing contact efficiency.

13-2 Identify different channel intermediaries and their functions

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The intermediaries in a channel system and supply chain undertake important tasks that are key to a properly functioning distribution system. Intermediaries in a channel will have to negotiate with one another, decide on terms of ownership transfer between buyers and sellers, and coordinate the physical movement of finished products from the manufacturer to the final consumer. What separates intermediaries is the fundamental idea of ownership or title.

In determining what type of intermediary to use, a producer should look at a number of factors, including product characteristics, buyer considerations, and market characteristics. Retailers sell mainly to customers. Wholesalers help move goods through the supply chain.

Channel intermediaries perform three basic types of functions (see Exhibit 13-2).

Transactional functions include contacting and promoting, negotiating, and risk taking.

Logistical functions performed by channel members include physical transportation, storing, and sorting functions. Finally, channel members may perform facilitating functions, such as researching and financing.

13-3 Describe the types of marketing channels Marketing channels are paths to move goods from producer to customer. Marketing channels for consumer and business-to-business products vary in degree of complexity. For consumer goods, producers can sell directly to consumers. This is straightforward and is called a direct channel: a producer has direct contact with the end customer and does not have to rely on intermediaries. A retail channel includes a retailer, a wholesale channel includes both wholesalers and retailers and

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an agent/broker channel, which is complicated is used in markets where many small manufacturers and retailers lack the resources to find each other. (Refer to Exhibit 13.3.)

Business channels focus on B2B interactions, and they too grow more complex as intermediaries become involved (refer to Exhibit 13.4). Many manufacturers and customers are bypassing distributors and going direct, often online. Companies looking to take on more intermediary duties from the supply chain have created online exchanges. Some other considerations include multiple channel arrangements, nontraditional channels, and strategic channel alliances.

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13-4 Summarize how to make channel strategy decisions To make the correct decisions when selecting the overall makeup of a channel, companies look at several important factors. Market factors relate to the customer to determine the likely behaviours and patterns that they will display. Product factors deal with the product on offer and, depending on the complexity of the product, will determine how the product moves through the channel system. Finally, producer factors connect to the company behind the product and whether it has the necessary size and capabilities to manage a certain type of channel system.

Distribution intensity is another important consideration. The three main types of distribution intensity are intensive, selective, and exclusive; each has its own benefits and drawbacks.

13-5 Recognize how to handle channel relationships A marketing channel is more than a set of institutions linked by economic ties. Social relationships play an important role in building unity among channel members. A critical aspect of supply chain management, therefore, is managing the social relationships among channel members to achieve synergy. The basic social dimensions of channels are power, control, leadership, conflict, and partnering. Issues of power and control are not surprising in channels, and managing them, along with taking a leadership role, is an important step for any company in a channel. Conflict in a channel can be horizontal, meaning it occurs at the same level of intermediary between different channels (e.g., distributor versus distributor). Conflict can also be vertical within a channel (e.g., distributor versus retailer). But, with all of this conflict comes some positive cooperation, and firms work together to make things easier for the entire channel, which also benefits individual firms in the process.

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13-6 Learn about supply chain management A supply chain consists of a group of companies working together to produce, handle, and distribute products to an end customer. Many modern companies are turning to supply chain management to gain a competitive advantage. Supply chain management strives to coordinate and integrate all the activities involved in getting a product to market. This includes everything from raw materials all the way to managing of the delivery of the final product to a customer.

Logistics is often described as ―the grease in the wheels of supply chain management,‖ offering the flow and storage necessary for supplies and products to make their way to the necessary points in a channel system. Purchasing and procuring the right items is a vital task in supply chain management. Companies that focus on supply chain management commonly report lower costs of inventory, transportation, warehousing, and packaging; greater supply chain flexibility; improved customer service; and higher revenues.

13-7 List channel and distribution challenges in global markets With the spread of free-trade agreements and treaties, global marketing channels and management of the supply chain have become increasingly important to Canadian companies and corporations that export their products or manufacture abroad. Given the volume of trade between the United States and Canada, the process of moving goods across the border needs continuous updating and standardization.

Manufacturers introducing products in global markets must decide what type of channel structure to use. Should the product be marketed through direct channels or through foreign intermediaries? Foreign intermediaries must be chosen very carefully because they will affect the brand image. Also, channel structures in other countries may be very different from those in Canada. The most recent development in the logistics arena is electronic distribution—any kind

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of product or service that can be distributed electronically, whether via traditional methods, such as fibre-optic cable, or through satellite transmission of electronic signals.

Glossary Terms channel conflict channel control channel leader (captain) channel leader (channel captain) channel members channel partnering (channel cooperation) channel power coverage direct channel discrepancy of assortment discrepancy of quantity dual distribution (multiple distribution) electronic data interchange (EDI) electronic distribution exclusive distribution horizontal conflict intensive distribution inventory control system

just-in-time production (JIT) logistics logistics information system marketing channel (channel of distribution) mass customization (build-to-order) order processing system procurement retailer selective distribution spatial discrepancy strategic channel alliances supply chain supply chain management supply chain team temporal discrepancy three-dimensional printing (3DP) vertical conflict

Lesson Plan for Lecture Brief Outline with Suggested PowerPoint Slides Slides are available at login.cengage.com.

LEARNING OUTCOMES AND TOPICS

POWERPOINT SLIDES

Explain the nature of marketing channels 13-1 The Nature of Marketing Channels 13-1a Change the Channel 13-1b The Marketing Channel and Intermediaries Defined 13-1c How Intermediaries Help the Supply Chain

Slides 4‒9

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LEARNING OUTCOMES AND TOPICS

POWERPOINT SLIDES

Identify different channel intermediaries and their functions 13-2 Channel Intermediaries and Their Functions 13-2a Channel Functions Performed by Intermediaries Describe the types of marketing channels 34-3 Types of Marketing Channels 13-3a Channels for Consumer Products 13-3b Channels for Business and Industrial Products 13-3c Alternative Channel Arrangements Summarize how to make channel strategy decisions 13-4 Making Channel Strategy Decisions 13-4a Factors Affecting Channel Choice 13-4b Levels of Distribution Intensity Recognize how to handle channel relationships 13-5 Handling Channel Relationships 13-5a Channel Power, Control, and Leadership 13-5b Channel Conflict 13-5c Channel Partnering Learn about supply chain management 13-6 Managing the Supply Chain 13-6a Benefits of Supply Chain Management 13-6b Managing Logistics in the Supply Chain 13-6c Sourcing and Procurement 13-6d Production Scheduling 13-6e Order Processing 13-6f Inventory Control List channel and distribution challenges in global markets 13-7 Distribution Challenges in World Markets 13-7a Developing Global Marketing Channels 13-7b Electronic Distribution

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Slides 18‒22

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Slides 29‒35

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Lesson Plan for Group Work Activities in class that relate to group work are a good way to apply the concepts in each chapter and a meaningful way to engage students in active learning in the classroom. With each activity, it is at the discretion of the instructor to determine how to best apply the group work that is

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provided. This will likely depend on factors such as classroom size, classroom layout, and overall delivery method. Each group activity below has a task that is detailed, followed by an overview of the outcome that results from engaging in the activity.

Activity #1 Task In this exercise, students learn how to select a mode of transportation. Divide the class into small groups and have them review the following list of products to be shipped. As a group, they should determine two or three possible ways to transport each item from the town where their campus is located to the location given or proposed. Each group should make a guess as to the cost for shipping via each mode of transportation selected. Once the estimates have been made, ask each student to select one product to research before the next class.

•

Twenty-four air compressors, each in a shipping crate 90 cm by 90 cm by 160 cm and weighing 190 kg each, to a customer 150 km away. Choose a city relevant to your location.

•

Two crates of rare orchids, each 30 cm by 60 cm by 120 cm and weighing 12 kg each, to a florist in Montreal (if you are in the west) or Vancouver (if you are in the east). The orchids can be without refrigeration for only 12 hours.

•

Two 340 g, 10 cm gears that are needed at a plant 480 km away for a customer’s machine that has broken down and stopped an assembly line.

•

Six classic Corvettes purchased by an eccentric, wealthy customer in a province 1500 km away. The buyer plans to spend the next year restoring these cars from the early 1960s.

The cars are not currently roadworthy.

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Outcomes This activity looks for students to investigate the very tangible part of place—shipping. You can alter this assignment depending on the time of year—just before the holidays, you can have students assess the cost and timing of shipping for consumer products. With the increased popularity of online marketplaces, this creates a good discussion about how intermediaries in many channels are having to provide services for the online shopping environment.

Students working in groups should not simply split the tasks, as it is important to share this information and for the group to come up with an overall set of findings. You can include an in-class component to this activity by asking students to complete the activity in class rather than research a product for the next class. You can also have student groups complete only one of the above tasks and then have them present their selected shipping task.

Ask students to research the cost and means of transporting their item from the group activity. If two or three viable modes are not available, students will need to explain why. They need to secure quotes on costs and time (from more than one carrier if possible) and consider other factors such as availability, reliability, accessibility, and traceability. They should present to the class their comparison and selection in the form of a simple chart.

Activity #2 Task Have students get into groups, pick a product, and to trace the channel(s) of distribution for that product as far back as feasibly possible. They must then give a five-minute PowerPoint presentation that fully describes the channel and channel members.

Not only must student groups identify the various participants (by company name) involved in moving the product from the producer to the final buyers, they must also show the

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various sources (names and locations) of the component parts of the product, if any. The methods of transportation (UPS, railroad, ship, truck, etc.) must also be identified at each stage.

Examples of interesting products that could be researched by groups include •

Bricks produced by a local brick manufacturer—the kiln from a company in Germany; the clay from an open pit mine in Weir, Kansas; the water from Baxter Springs, Kansas; the sand from Kansas City; the manganese sulfate and iron oxide from Springfield, Missouri; and the colour additives from St. Louis

•

Diamonds sold by a local jewellery store—purchased direct from diamond wholesalers in the Netherlands; bought by wholesalers from diamond cutters in South Africa; brought out of mines owned by a company in South Africa

Students often choose to research a product where the information is readily available online. In a typical class, the products covered tend to include a wide variety of products, such as T-shirts, La-Z-Boy chairs, Goodyear tires, microwave rice packets, Coors beer, McDonald’s Big Macs, bananas, Pizza Hut pizza, and Folgers coffee.

Outcomes The students tend to be fascinated by the presentations and often ask their fellow students to further explain the details of the channel presented. There usually are many comments made by students regarding the positive learning experience that the project gave them, and they are able to relate many of the concepts presented in class lecture to the projects presented by other groups.

This results in a decidedly different perspective for our students from which to view the rationale and concepts of international trade. These ―new countries‖ are still larger than most

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European countries, but one must also now cope with multiple languages, cultures, infrastructure, monetary systems, communication modes, legal systems, and tariffs.

Activity #3 Task Now that the students have presented the channel of distribution for the products in Activity #2, they can be asked to critique the channel by using the factors that affect channel choice.

Outcomes This exercise is designed to ensure the students can apply the concept of the factors that affect channel choice. By using all the factors that affect channel choice in this critical fashion, they will enhance their ability to create the most effective channels regardless of product or service.

When students can evaluate channel options, they are thinking critically about the topic, and a group-based discussion in this regard will further enhance their abilities.

Great Ideas for Teaching Chapter 13 Great Idea #1 Discussion Board Topics to Encourage Participation Refer to the Instructor’s Manual for Chapter 1 in the ―Great Ideas for Teaching‖ section to read about the benefits and details around discussion boards.

DISCUSSION BOARD TOPIC A 1. Marketing channels aid in overcoming discrepancies of quantity, assortment, time, and space created by economies of scale in production.

2. Review the information about marketing channels in section 13-1 The Nature of Marketing Channels in the text.

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3. Then, pick a product you recently purchased. Where did you purchase it? How did that intermediary help to overcome these discrepancies? Explain your answer.

DISCUSSION BOARD TOPIC B 1. Organizations have three options for distribution intensity: intensive distribution, selective distribution, or exclusive distribution.

2. Review the information about levels of distribution intensity in section 13-4b Levels of Distribution Intensity in the text.

3. Then, select a product you recently purchased. At what level of distribution intensity is this product distributed? Why do you think this might be the case? Explain your answer.

Great Idea #2 Using video games as the example, have students draw a timeline that demonstrates how the means by which consumers can grow their video game libraries has changed over the past 30 years. This exercise should expose students to the significant changes that ―place‖ as an element in the marketing mix has experienced, using as an example a product that has been around for a very long time.

Great Idea #3 The last part of the chapter discusses adaptive manufacturing (three-dimensional printing, or 3DP) and how it is radically transforming the ways global supply chains work. The text refers to Lowes and the restaurant industry (FoodInk and 3DSamba). Have students research either of the situations described in the text and provide a paper (presentation) on the likelihood of 3DP revolutionizing supply chains, as suggested in the text.

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Chapter 14 Retailing Learning Outcomes 14-1 Discuss the importance of retailing in the Canadian economy Retailing is a huge and visible portion of marketing. Retailing is one of the largest employment sectors in Canada, with over 2 million workers. The industry accounts for over $600 billion in sales annually, contributing over $100 billion to Canada’s GDP. Global retailers are successfully entering the Canadian market and challenging domestic retailers. Canadian consumers are changing quickly and expect retailers to anticipate their changing needs and offer personalized shopping experiences.

Consumers continue to shop online from every device and invest a significant amount of their time in social media. Technology continues to change the retail experience for Canadians.

14-2 Explain the ways in which retailers can be classified and the major types of retail operations Retailers can be differentiated and positioned on the basis of ownership, level of service, product assortment, and general price levels. These three variables can be combined in several ways to create distinctly different retail operations. Exhibit 14.1 lists the major types of retail stores

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discussed in this chapter and classifies them by level of service, product assortment, price, and gross margin. On the basis of ownership, retailers can be broadly differentiated as independent retailers, chain stores, or franchise outlets. The levels of service that retailers provide can be classified along a continuum of high to low. Retailers also classify themselves by the breadth and depth of their product assortment; some retailers have concentrated product assortments whereas others have extensive product assortments. Lastly, general price levels also classify a store, from discounters offering low prices to exclusive specialty stores where high prices are the norm.

Traditionally, retail stores have been of several distinct types, with each offering a different product assortment, type of service, and price level, according to its customers’ shopping preferences. In a recent trend, however, retailers are experimenting with alternative formats that are more difficult to classify. For instance, supermarkets are expanding their nonfood items and services, discounters are adding groceries, drugstores are becoming more like convenience stores, and department stores are experimenting with smaller stores. Nevertheless, many stores still fall into one of the basic types.

There are several types of retailing, such as department stores, specialty stores, supermarkets, drugstores, convenience stores, discount stores, and restaurants.

Retailers have been experimenting with alternative formats that make it difficult to categorize them by the traditional classifications. However, many still fall within one of the basic types listed in Exhibit 14-1.

14-3 Discuss nonstore retailing techniques and franchising

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The retailing methods discussed so far are in-store methods, requiring customers to physically shop at stores. In contrast, nonstore retailing is shopping without visiting a store. Because consumers demand convenience, nonstore retailing is currently growing faster than in-store retailing. The major categories are automatic vending, direct marketing (DM), and Internet retailing (e-tailing).

14-4 Define franchising and describe its two basic forms A franchise is a continuing relationship in which a franchiser grants retail-operating rights to a franchisee. The franchiser originates the trade name, product, methods of operation, and so forth, and in return receives a fee and continuing revenues from the business operations of the franchisee.

To be granted the rights to a franchise, a franchisee usually pays an initial, one-time franchise fee. The amount of this fee depends solely on the individual franchiser. In addition to this initial franchise fee, the franchisee is expected to pay royalty fees, usually in the range of 3 to 7 percent of gross revenues. In Canada, franchised business accounts for over 40 percent of retail sales. There are over 75,000 franchise units in Canada and over 60 percent of these are in nonfood sectors and industries.

The two basic forms of franchises used today are product and trade name franchising and business format franchising.

14-5 List the major tasks involved in developing a retail marketing strategy Retailers must develop marketing strategies based on overall goals and strategic plans. The key tasks in retail strategy are defining and selecting a target market and developing the six Ps of the retailing mix to successfully meet the needs of the chosen target market (refer to Exhibit 14.3 in

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the text). These elements include the four Ps of marketing discussed earlier along with presentation and personnel.

The first task in developing the retail strategy is to define the target market. The process begins with market segmentation; markets are often defined based on demographic, geographic, and psychographic dimensions.

The six Ps of the retailing mix consist of those elements controlled by the retailer that are combined in varying degrees and forms and directed as a single retailing method to the target market. The six Ps include product, place, price, promotion, personnel, and presentation.

Together, those items project the store’s image.

The presentation of a retail store to its customers helps determine the store’s image. The most predominant aspect is the store’s atmosphere—the store’s overall impression established by the physical layout or decor.

Personnel and customer service are prominent aspects of retailing. Most retail sales involve a customer–salesperson interaction.

The fastest-growing part of our economy is the service sector. Although distribution in the service sector is difficult to visualize, the same skills, techniques, and strategies used to manage retailers can and do apply.

14-6 Discuss retail product and service failures and means to improve Retailers cannot be all things to all people. The retail environment is a constant state of change and often reflects the societal changes around it. There is a real connection between success and customer service in the retail environment, and retailers that provide consistently strong service will have a good chance of survival so long as they are delivering products and services that are in need. But, probably most importantly, retailers must learn from their mistakes, and how a

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company responds and makes changes is likely one of the greatest determinants of success in the retail world.

14-7 Discuss retailer and retail consumer trends that will affect retail in the future As Canadians continue to adopt online shopping and as U.S. retailers continue to move into Canada, Canadian retailers have to evolve their retail strategy. There is a blur between the worlds of online and offline retailing. With access to a myriad of options and choices online, retail customers are become more sophisticated. Many of the most interesting and effective retail innovations are related to the use of technology and shopping data to help find new and better ways to entice customers into a store or to a website—and then to spend more money once there.

A retailing trend with great growth potential is the leveraging technology to increase touchpoints with customers and thereby generate greater profitability. One trend as a result of consumers’ willingness to use technology when shopping is showrooming. The increased use of technology has resulted in retailers reducing multiple retail channel systems into a single, unified system for the purpose of creating efficiencies or saving costs a process called retail channel omnification.

Glossary Terms atmosphere automatic vending beacon brand cannibalization category killers chain stores click and collect convenience store department store destination stores Lamb, MKTG, 5Ce, Instructor’s Manual

direct mail direct marketing direct retailing discount store drugstores factory outlet franchise franchisee franchiser full-line discount store

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gross margin independent retailers mass merchandising microtargeting nonstore retailing off-price retailer online retailing (e-tailing) pop-up shop product offering retail channel omnification retailing retailing mix

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scrambled merchandising self-service technologies (SST) sharing economy shop-at-home television network shopper analytics shopper marketing specialty discount stores specialty store supercentres supermarkets telemarketing warehouse membership clubs

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Lesson Plan for Lecture Brief Outline with Suggested PowerPoint Slides Slides are available at login.cengage.com.

LEARNING OUTCOMES AND TOPICS

POWERPOINT SLIDES

Discuss the importance of retailing in the Canadian economy 14-1 The Role of Retailing Explain the ways in which retailers can be classified and the major types of retail operations 14-2 Classification of Retail Operations 14-2a Classification of Retail Operations 14-2b Major Types of Retail Operations Discuss nonstore retailing techniques and franchising 14-3 The Rise of Nonstore Retailing 14-3a Automatic Vending 14-3b Self-service Technologies (SST) 14-3c Direct Retailing 14-3d Direct Marketing (DM) 14-3e Online Retailing or E-tailing 14-3f Sharing Economy Define franchising and describe its two basic forms 14-4 Franchising List the major tasks involved in developing a retail marketing strategy 14-5 Retail Marketing Strategy 14-5a Defining a Target Market 14-5b Choosing the Retailing Mix 14-5c Retailing Decisions for Services Discuss retail product and service failures and means to improve 14-6 Addressing Retail Product/Service Failures

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LEARNING OUTCOMES AND TOPICS

POWERPOINT SLIDES

Discuss retailer and retail consumer trends that will affect retail in the future 14-7 Retailer and Retail Consumer Trends and Advancements 14-7a Big Data 14-7b Shopper Marketing Analytics 14-7c Future Developments in Retail Management

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Lesson Plan for Group Work Activities in class that relate to group work are a good way to apply the concepts in each chapter and a meaningful way to engage students in active learning in the classroom. With each activity, it is at the discretion of the instructor to determine how to best apply the group work that is provided. This will likely depend on factors such as classroom size, classroom layout, and overall delivery method. Each group activity below has a task that is detailed, followed by an overview of the outcome that results from engaging in the activity.

Activity #1 Task This in-class activity involves taking the information from channels and retailing and using it to assess a retailer unfamiliar to most students. You can make up your own retailer or use retailers targeted at markets other than students. A few examples might be a jeweller, a quilting store, an art gallery gift shop, a high-end men’s clothing retailer, a maternity clothing retailer, or a specialty food store. Then, have students get into groups and split the class up into as many sections as you have found retailers. Then, give each section a specific retailer and ask them to evaluate it using prompts such as the following: •

Create the target market for this store (with proper segmentation variables).

•

Decide which type of store location would be most appropriate for this store.

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Describe the store atmospherics/store image by imagining what would be most appropriate for your chosen target market.

•

Determine what type of wholesale intermediary would make sense for this retailer.

Provide reasons for your choice.

Have students present their findings. Once this is done, you can have the students

complete some online research of the retailer to determine whether their target, location, and image are consistent with other retailers in the sector.

Outcomes There are many benefits to this exercise, especially the possibility of asking students to complete some primary research on the retailers that were chosen in this activity. Completing the activity in class and then following up in the ―real world‖ can be very beneficial to students when they compare theoretical answers with what happens in a real retail environment.

Activity #2 Task Soda Stream is a unique kitchen appliance for consumers who wish to increase their water consumption but don’t like still water. Have students visit the Soda Stream website, www.sodastream.ca, and complete some research on the product, the product lineup, and all the different places that Soda Stream can be purchased. Follow that up with a discussion on why there are so many different locations that sell the Soda Stream. What would make the typical purchaser choose one location over another?

Outcomes By applying the concept of location analysis to a product they can relate to, students should more clearly understand the retail idea that a key element to success is location and that location is

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very much dependent on the nature of product, the product life cycle, and the way consumers perceive the product. You can always have students prepare a location analysis paper to solidify their thinking.

Great Ideas for Teaching Chapter 14 Great Idea #1 Behind the Curtain—Understanding Purchasing in Retail To understand the complexity of channels and retailing, a good activity to start a discussion is putting your students in the position of a purchasing manager at a retailer. A good example is London Drugs. Have student write down what manufacturers they would need to work with in order to stock shelves. Get them to think about the product assortment in a store like London Drugs, and get them to name brands (and companies if possible). Once this list is done (and it is likely to be very long), talk to students about wholesalers and other intermediaries who might make this task easier by providing various functions.

Great Idea #2 Site Selection—Deciding on Where a Store Should Be This exercise should aid students in understanding the multitude of factors that must be considered when selecting a site for a store.

Provide the students with a brief overview of a retail store that they must open in their hometown. The retail store should be either a high-end bike shop or a specialty athletic shoe retailer. Have the students determine the target market and the product mix and then complete a location analysis of where the store is to be located in their hometown. The students should then submit their proposal to you or present to the class.

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Great Idea #3 Opening a Franchise Opening a franchise would be a great way for a young entrepreneur to get started at running a business. Have the students research various franchise opportunities by visiting www.cfa.ca/lookforafranchise with the purpose of finding a franchise they would like to invest in upon graduation. They need to decide in advance where they will be located after graduation, the field/category in which they would like to own a franchise, and then do their search. If they do this without limiting their search by investment, they will get a feel for the cost of various franchises. They can then search by investment and make a decision. Once they have decided, they should develop their business plan for the successful launch of the franchise. The business plan should ideally contain their target market and their retail marketing mix, with additional considerations as presented in the franchisee information and requirements. This could then be presented to the class or submitted to you in a report.

Great Idea #4 Retail Innovation Retailing, like everything else, is changing daily. Retailers are constantly innovating and always looking for new ways to differentiate themselves within their retail landscape. Many of the most interesting innovations in retailing in the recent past have been related to the use of technology.

Have students choose a retail sector, food, pharmacy, health care, apparel, shoes, home entertainment, or a particular large retailer and research how technology has impacted the retail landscape. For example, Walmart has invested in self-driving shopping carts. The carts follow the consumer around the store, connected to a mobile app so that the consumer has both hands free to select items off the shelf. Best Buy has invested in a robot that will retrieve DVDs and

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CDs for customers so they need not wait for a sales clerk to come along and open the locked cabinets where the products are securely displayed (www.retailcouncil.org/community/ technology/tech-rescue-smart-retail-cost-savers). The students should then present their findings to the class. A discussion of how smaller retailers who cannot compete with these technological investments can still find other ways to compete would be a valuable conversation.

Great Idea #5 Retail Store Classifications Create a chart for the students to work on during class. The chart will have seven headings across the top of the page: (1) name of store; (2) ownership (chain, independent, franchise); (3) level of service (limited/moderate/extensive); (4) product assortment (narrow/wide); (5) depth of assortment (shallow/deep); (6) price (low/moderate/high); and (7) major type of store (department/specialty/discount, etc.). Students are told to begin by listing, in the first column, 10 stores that reflect where they shop and that are somewhat different from one another. Then, they are instructed to fill out the remainder of the table. The class will come up with a variety of stores—some very familiar to all; some that are truly out of the ordinary.

If you so choose, create other handouts in addition to the chart discussed above. One page could be a floor plan for a typical hypermarket. The other pages can include the following: •

List anything you have purchased in the last few years from a direct mail offer. This would include items purchased from so-called ―junk‖ mail.

•

List items you’ve purchased via catalogues over the last few years.

•

Have you purchased anything online? If so, what? Have you considered purchasing anything online, even if you didn’t follow through? If so, what?

•

What advantages and disadvantages do you associate with buying from a supercentre?

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•

How can smaller stores attempt to compete with superstores?

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What reasonable explanations account for vending machine prices being so high? Or is it just marketers taking advantage of your hunger or thirst?

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Name a successful retail business in your area. What marketing strategy has led to its success?

•

What retail store do you most dislike? What accounts for your negative feelings?

Chapter 15 Marketing Communications Learning Outcomes 15-1 Discuss the role of promotion in the marketing mix Few goods or services, no matter how well developed, priced, or distributed, can survive in the marketplace without effective promotion—communication by marketers that informs, persuades, reminds, and connects potential buyers of a product or service for the purpose of influencing their opinion or eliciting a response. Promotional strategy is a plan for the optimal use of the elements of promotion—advertising, public relations, sales promotion, direct response communication, and digital marketing (refer to Exhibit 15.1 in the text) to meet the firm’s overall objectives and marketing goals. Using these goals, marketers combine the elements of the promotional strategy (the promotional mix) to form a coordinated and integrated marketing communications plan. The main function of promotion is to convince target customers that the goods and services offered provide a competitive advantage over the competition.

15-2 Apply the communication process to marketing communications

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Promotional strategy is built on the foundation of the communication process. Communication is the process by which we exchange or share meanings through a common set of symbols.

Communication can be divided into two major categories: interpersonal communication and mass communication. The communication process begins when the sender has a thought or idea and wants to share it with one or more receivers. The source then encodes this message and sends it, via a channel, to the receiver(s) for decoding. In turn, the sender receives feedback from the receiver(s) as to whether the message was understood (refer to Exhibit 15.3 in the text). The elements of the promotional mix vary in their ability to affect the target market.

15-3 Outline the goals and tasks of promotion People communicate with one another for many reasons; however, the goal of promotion is different from that of ordinary communication between two individuals. Promotion seeks to modify behaviour and thoughts in some way and to reinforce existing behaviour. There are four tasks for promotion: (1) informing, (2) persuading, (3) reminding, and (4) connecting the target market (see Exhibit 15.4). Informative promotion explains a good’s or service’s purpose and benefits. Promotions that inform the consumer are typically used to increase demand for a general product category or to introduce a new good or service. Persuasive promotion is designed to stimulate a purchase or an action. Promotions that persuade the consumer to buy are essential during the growth stage of the product life cycle, when competition becomes fierce.

Reminder promotion is used to keep the product and brand name in the public’s mind.

Promotions that remind are generally used during the maturity stage of the product life cycle.

Connecting is a new task made possible by the increasing acceptance of social media. Social media allows companies to connect with their consumers and it allows consumers to connect

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with each other. Often, a marketer will try to accomplish two or more of these tasks at the same time.

15-4 Discuss the elements of integrated marketing communications (the promotional mix) Most promotional strategies use combinations of several ingredients to reach a target market.

That combination is called the promotional mix. The introduction of digital marketing in the late 1990s brought both the opportunity of leveraging many of these simultaneously but with the challenge of integrating them in a manner that kept the messages consistent. Hence, the concept of integrated marketing communications (IMC). The elements of the promotional mix include advertising, public relations, sales promotion, personal selling, direct-response communication, and social media. Advertising is a form of impersonal, one-way mass communication paid for by the source. Public relations is the function of promotion concerned with a firm’s public image.

Firms can’t buy good publicity, but they can take steps to create a positive company image. Sales promotion is typically used to back up other components of the promotional mix by stimulating immediate demand. Personal selling typically involves direct communication, in person or by phone, through which the seller tries to initiate a purchase by informing and persuading one or more potential buyers. Direct-response communication—often referred to as direct marketing— is the communication of a message directly from a marketing company to an intended individual target audience. The objective is to generate profitable business results through targeted communications to a specific audience. Online marketing, content marketing, and social media are communication delivered through the Internet and/or mobile devices. The penetration of Internet usage has allowed marketers to be the publishers of their own content that is easily accessible to consumers. This adds value to the brand. Social media are promotional tools used

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to facilitate conversations and other interactions between people. Social media include blogs, microblogs, video platforms, podcasts, and social networks. See Exhibit 15-6.

15-5 Discuss promotional goals and the AIDA concept The ultimate goal of any promotion is to have someone buy a good or service. The AIDA concept outlines the six basic stages in the purchase decision-making process: (1) awareness, (2) knowledge, (3) liking, (4) preference, (5) conviction, and (6) purchase. These stages are initiated and propelled by promotional activities. The promotional mix needs to recognize and fit the customer’s stage in the hierarchy. This model proposes that consumers respond to marketing messages in a cognitive (thinking), affective (feeling), and conative (doing) sequence.

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15-6 Discuss the concept of integrated marketing communications and the factors that affect the promotional mix Consumers do not think in terms of the six elements of promotion: advertising, sales promotion, direct-response communication, public relations, personal selling, and digital marketing. Ideally, marketing communications from each promotional mix element should be integrated—that is, the message reaching the consumer should be the same regardless of whether it is from an advertisement, a salesperson in the field, a magazine article, or a coupon in a newspaper insert.

Integrated marketing communications is a method for carefully coordinating all promotional activities—advertising, sales promotion, personnel selling, public relations, direct marketing, packaging, and other forms of communication—to produce a consistent, unified, customerfocused message. Marketing managers carefully coordinate all promotional activities to ensure that consumers see and hear one message. Integrated marketing communications has received more attention in recent years due to the proliferation of media choices, the fragmentation of mass markets, and the decrease in advertising spending in favour of promotional techniques that generate an immediate sales response. A firm may choose not to use all six promotional elements in its promotional mix, or it may choose to use them in varying degrees. Many factors can affect the promotional mix. They include the (1) nature of the product, (2) product life cycle stage (refer to Exhibit 15.8 in the text), (3) target market characteristics, (4) the type of buying decision involved, (5) the availability of funds, and (6) the feasibility of either a push or pull strategy.

Glossary Terms advertising AIDA concept branded (or in-bound) content Lamb, MKTG, 5Ce, Instructor’s Manual

channel communication consumer-generated content

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decoding direct-response communication earned media encoding feedback influencer marketing integrated marketing communications (IMC) interpersonal communication mass communication noise online marketing owned media paid media

personal selling promotion promotional mix promotional strategy public relations publicity pull strategy push strategy receivers sales promotion sender social media

Lesson Plan for Lecture Brief Outline with Suggested PowerPoint Slides Slides are available at login.cengage.com.

LEARNING OUTCOMES AND TOPICS

POWERPOINT SLIDES

Discuss the role of promotion in the marketing mix 15-1 The Role of Promotion in the Marketing Mix Apply the communication process to marketing communications 15-2 Marketing Communication 15-2a The Communication Process Outline the goals and tasks of promotion 15-3 The Goals of Promotion 15-3a Informing 15-3b Persuading 15-3c Reminding 15-3d Connecting

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LEARNING OUTCOMES AND TOPICS

POWERPOINT SLIDES

Slides 13‒22 Discuss the elements of integrated marketing communications (the promotional mix) 15-4 The Promotional Mix 15-4a Advertising 15-4b Public Relations (PR) and Publicity 15-4c Sales Promotion 15-4d Personal Selling 15-4e Direct-Response Communication 15-4f Online Marketing, Content Marketing, and Social Media 14-4g The Communication Process and the Promotional Mix Slides 24‒26 Discuss promotional goals and the AIDA concept 15-5 Promotional Goals and the AIDA Concept 15-5a AIDA and the Promotional Mix Discuss the concept of integrated marketing Slides 28‒34 communications and the factors that affect the promotional mix 15-6 Integrated Marketing Communications and the Promotional Mix 15-6a Factors Affecting the Promotional Mix

Lesson Plan for Group Work Activities in class that relate to group work are a good way to apply the concepts in each chapter and a meaningful way to engage students in active learning in the classroom. With each activity, it is at the discretion of the instructor to determine how to best apply the group work that is provided. This will likely depend on factors such as classroom size, classroom layout, and overall delivery method. Each group activity below has a task that is detailed, followed by an overview of the outcome that results from engaging in the activity.

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Activity #1 Task Divide the class into teams and give each team one of the following situation descriptions: Situation #1 Consumer durable product that is slightly complex Introductory stage of product life cycle Selective distribution Large firm Highly concentrated market (in large urban areas only)

Situation #2 Industrial product that is large, complex, and expensive Introductory stage of product life cycle Small company (few available funds) Small market, highly dispersed

Each team should present a plan that outlines the promotion ingredients to be used and the relative importance of each element in the promotional mix. The team should be able to explain which factors were most important and how the team arrived at its decisions.

Outcomes This exercise is designed to ensure students can build a promotional plan that recognizes the various elements in the mix and that they can, based on the nature of the product, build the most effective plan. By considering the factors that impact the promotional mix, students will be forced to think critically about the plan ensuring a strong understanding. Having the student teams present their plans will ensure that they build on their presentation and communication skills.

Activity #2 Task The introduction of digital marketing in the late 1990s brought both the opportunity of leveraging many of the elements in the marketing mix with the challenge of integrating them in a manner that keeps the message consistent. Thus, the concept of integrated marketing communications was born. Have students choose a product they are familiar with and interests

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them. Students will research and identify all the different ways that their chosen product is promoted, with as many examples as they can find. For example, for the iPhone, Apple uses advertising (e.g., television), sales promotion (e.g., trade in your old iPhone for a discount on a new phone), public relations (e.g., articles in technology-specific publications), personal selling via Apple sales staff in the store, digital marketing via their website, and content marketing and social media through various social networks.

As students choose their products and begin their audit, they should be sure to be open to all components of the promotional mix as they seek to audit and report on all the promotional mix components used. Now, based on what they have found, students should explain how their product’s promotional mix is an example of good or bad integrated marketing communications.

Outcomes By assessing what is a good or bad example of integrated marketing communications, students will enhance their understanding of the subject. By having them choose and audit a product they use or are familiar with, they are likely to be more engaged and, hence, more committed to the critical process of assessment.

Activity #3 Task The Internet has changed the communication landscape tremendously. Both the marketer and the consumer are now sharing the communication space, with the consumer often in control.

Consumers are encouraged to pass judgement on a brand, and marketers have created campaigns that are encouraging consumers to create ―consumer-generated‖ content. An example is TELUS’ #StayStrongStayConnected campaign created in the spring of 2020 to urge people to keep up their morale and to stay moving, learning, giving, and safe during the COVID-19 lockdown and

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to safely connect socially through glass barriers and digital collaborations. The campaign was created completely through videos sent to TELUS by people who recorded them at home. The resulting new video was then shared via TELUS’ social media channels and through traditional media across Canada.

Ask students to do some research and find an example of a user-generated content campaign that resonates with them. Then, they should discuss why this campaign resonates with consumers and why user-generated content is so successful.

Outcomes User-generated content is something students are likely very aware of and may have even created themselves. This exercise should be fun for them to complete while at the same time it demonstrates a very influential form of communications today. The assessment of why the campaign resonates will force critical reflection and considering why user-generated content is so successful will force a critical assessment of the tool.

Great Ideas for Teaching Chapter 15 Great Ideas #1 Strategy Magazine Strategy magazine is a useful tool for all students and practitioners of marketing to read and learn about what is happening in the Canadian market with respect to all forms of communication.

Have students visit Strategy online: https://strategyonline.ca. They will find an article about a product/brand/company/service that interests them and, based on that article and other research, document the integrated marketing communications campaign being used to successfully market the product/brand/company/service. Students should critique the integrated marketing communications campaign based on the concepts presented in the textbook.

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Great Ideas #2 I Have a Dream: To Persuade One of the single most important takeaways from a marketing communications course is the importance of two-way interaction between customer and company. Students should be able to differentiate between promotion and communication and understand that it is necessary to clearly communicate to another party in order to develop relationships.

In most marketing classes, oral presentations are a requirement and often a source of stress for students. One way to talk to students about presentations is to use a marketing communications concept to show them how to better handle presentations.

A goal of most marketing communications programs is to persuade the customer to do something—to buy a product or service. Giving a presentation in class should be about persuasion as well—persuading the audience to listen and be convinced to take a recommended course of action. Too often, student presentations are simply information dumps where they regurgitate a written piece word-for-word. But, any oral presentation a student gives in the real world will involve some form of persuasion.

When in a job interview, students should know they cannot simply provide information about their background and employment history. They have to persuade the interviewer that they have the necessary skills and abilities to be the best candidate for the position.

Giving a work presentation won’t be very effective if one simply reads off of cue cards and merely provides information. Most career advancement will involve some ability not just to speak in front of others, but to persuade clients, coworkers and others that one’s course of action is best.

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A great speech to demonstrate the importance of persuasion is Martin Luther King, Jr.’s ―I Have a Dream‖ speech (audio and transcript available at www.npr.org/2010/01/18/122701268/i-have-a-dream-speech-in-its-entirety). King’s goal was to end racial segregation and discrimination and to do so in a nonviolent manner. Much was at stake when he spoke in Washington, D.C., in 1963, and King needed to persuade all listeners— followers, government, and the general public—to make the necessary changes to society.

Simply reading off statistics or facts would not have been good enough—he needed to persuade.

If you take the time to show the speech in class, students should appreciate the importance of persuasion when speaking.

Great Ideas #3 Computer Clothing Myant (www.myant.ca) is a Canadian company based in Toronto and is the world’s first end-toend textile computing company. Myant integrates technology directly into the one thing we use every day of our lives—clothing. Myant knits sensors and actuators into textiles, giving them the ability to sense and react to the human body. One of Myant’s product lines is Skiin, a line of everyday clothing that has sensors knitted into the textile so you can check in on your loved ones at anytime from anywhere. Have students learn more about Skiin by visiting the Myant website.

They should assume the product has been proven in clinical trials and is now available to be sold to the public. Students should prepare an integrated marketing communications campaign for the launch of Myant Skiin that is completely rationalized by considering the factors that influence the promotional mix.

Great Idea #4 Marketing Communication Process

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Have students try this activity when first discussing the subject of marketing communications: 1. Select one advertisement from a magazine and one from a newspaper and evaluate their effectiveness using the marketing communication process.

2. Identify the source.

3. What methods were used in encoding the message? How effective were they?

4. What is the message and is it effectively stated? Is the message one-sided, two-sided, comparative, etc.?

5. What is the medium, and how effective do you feel the magazine or newspaper would be in getting the message across?

6. How would the audience translate the message sent by the source, and would all readers get the same meaning?

7. Who is the audience (target market)? Could there be audiences other than the intended target market?

8. What form of feedback does the source expect to get from its audience? Does the ad do an effective job of communicating the type of feedback it wants to the audience?

9. Were there any hints of noise that might interfere with the communication process at any stage?

10. Overall, how effective or ineffective will these ads be, and why? How would you improve the company’s communication process to make the ads more effective?

Chapter 16 Advertising, Public Relations, and Direct Response Lamb, MKTG, 5Ce, Instructor’s Manual

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Learning Outcomes 16-1 Define advertising and understand the effect of advertising Advertising is any form of impersonal, one-way mass communication, using time and space owned by an advertising medium company, that is paid for by an organization. The amount spent on advertising continues to grow, with dollars spent on digital advertising growing tremendously.

Advertising can help increase or maintain brand awareness and, subsequently, market share. The challenge is to determine the most appropriate advertising budget.

Advertising affects consumers’ daily lives as well as their purchases. Advertising can seldom change strongly held consumer values, but it may transform a negative attitude toward a product into a more positive one. It can affect their beliefs and, ultimately, their purchases.

Companies today must recognize that, while advertising can be powerful, the balance of power has shifted such that consumers and advertisers are having an influence on each other.

16-2 Identify the major types of advertising The major types of advertising are institutional advertising and product advertising. If the goal of the promotion plan is to build up the image of the company or the industry, institutional advertising may be used. Advocacy advertising is a form of institutional advertising. In contrast, if the advertiser wants to enhance the sales of a specific good or service, product advertising (which promotes the benefits of a specific good or service) is used. Product advertising is designed primarily to promote goods or services and is classified into three categories: pioneering, competitive, and comparative.

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16-3 Discuss the creative decisions in developing an advertising campaign Advertising strategies are typically organized around an advertising campaign. An advertising campaign is a series of related advertisements focusing on a common theme, slogan, and set of advertising appeals. Before any creative work can begin on an ad campaign, it is important to determine what the advertising objectives are. The objectives of a specific ad campaign often depend on the overall corporate objectives and the product being advertised. The DAGMAR approach establishes a protocol for writing objectives. Once objectives are defined, creative work can begin on the ad campaign. Creative decisions include identifying the product’s benefits, developing possible advertising appeals (refer to Exhibit 16.1 in the text), executing the message, and post-campaign evaluation (refer to Exhibit 16.2 in the text).

16-4 Describe media evaluation and selection techniques and how media are purchased Media planning is the series of decisions advertisers make regarding the selection and use of media to allow the marketer to communicate the message optimally and cost-effectively to the target audience. Media evaluation and selection is a crucial step in the advertising campaign process. Major types of advertising media include newspapers, magazines, radio, television, outof-home media such as billboards and bus panels, and the Internet. Each media type has certain strengths and weaknesses (refer to Exhibit 16.4 in the text). Promotion managers choose the ad campaign’s media mix on the basis of the following variables: cost per contact, reach, frequency, characteristics of the larger audience, flexibility of the medium, noise level, and the life span of the medium. After choosing the media mix, a media schedule designates when the advertisement will appear and the specific vehicles in which it will appear (see Exhibit 16.5). Buyers in ad agencies are often the ones charged with buying media, and although there are rate cards to

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follow, often the price and frequency of media purchased are heavily dependent on supply and demand.

16-5 Discuss the role of public relations in the promotional mix Advertising is paid media; public relations is earned media. Public relations is the element in the promotional mix that evaluates public attitudes, identifies issues that may elicit public concern, and executes programs to gain public understanding and acceptance. Publicity is the effort to capture media attention. A company fosters good publicity to enhance its image and promote its products. Major public relations tools include product publicity, product placement, sponsorship, experiential marketing, and the Internet. An equally important aspect of public relations is crisis management or managing bad publicity in a way that is least detrimental to a firm’s image.

16-6 Discuss the role of direct-response communication in the promotional mix Direct-response communication, which is often referred to as direct marketing, involves generating profitable business results through targeted communications to a specific audience.

Direct-response communication utilizes a combination of relevant messaging and offers that can be tracked, measured, analyzed, stored, and leveraged to drive future marketing initiatives.

Direct-response communication can be highly successful because the targeted communication is often more appealing to the consumer than mass-market communication.

A number of different direct-response communication tools are used: (1) telemarketing (2) direct mail, (3) digital direct marketing which included company websites, (4) direct response broadcast, and (5) direct-response print.

Glossary Terms advergaming Lamb, MKTG, 5Ce, Instructor’s Manual

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advertising campaign advertising objective advocacy advertising ambush marketing audience selectivity cause-related marketing click-through rate competitive advertising continuous media schedule cooperative advertising cord cutting cost per click cost per contact crisis management direct response broadcast direct-response print direct-response television (DRTV) do not call list (DNCL) experiential marketing flighted media schedule

frequency infomercial institutional advertising media mix media planning media schedule medium mobile advertising pay per click percentage of sales pioneering advertising product advertising product placement programmatic buying pulsing media schedule reach seasonal media schedule social gaming sponsorship unique selling proposition

Lesson Plan for Lecture Brief Outline with Suggested PowerPoint Slides Slides are available at login.cengage.com.

LEARNING OUTCOMES AND TOPICS

POWERPOINT SLIDES

Define advertising and understand the effect of advertising 16-1 What Is Advertising?

16-1a Advertising and Market Share 16-1b The Effects of Advertising on Consumers Identify the major types of advertising 16-2 Major Types of Advertising 16-2a Institutional Advertising 16-2b Product Advertising

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LEARNING OUTCOMES AND TOPICS

POWERPOINT SLIDES

Discuss the creative decisions in developing an advertising campaign 16-3 Creative Decisions in Advertising 16-3a Identifying Product Benefits 16-3b Developing and Evaluating Advertising Appeals 16-3c Executing the Message 16-3d Postcampaign Evaluation Describe media evaluation and selection techniques and how media are purchased 16-4 Media Decisions in Advertising 16-4a Media Types 16-4b Media Selection Considerations 16-4c Media Scheduling 16-4d Media Buying Discuss the role of public relations in the promotional mix 16-5 Public Relations 16-5a Major Public Relations Tools 16-5b Managing Unfavourable Publicity Discuss the role of direct-response communication in the promotional mix 16-6 Direct-Response Communication 16-6a The Tools of Direct-Response Communication

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Lesson Plan for Group Work Activities in class that relate to group work are a good way to apply the concepts in each chapter and a meaningful way to engage students in active learning in the classroom. With each activity, it is at the discretion of the instructor to determine how to best apply the group work that is provided. This will likely depend on factors such as classroom size, classroom layout, and overall delivery method. Each group activity below has a task that is detailed, followed by an overview of the outcome that results from engaging in the activity.

Activity #1 Task

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Divide the class into groups of three to five students and give them the following scenario: As a result of the continued threat of community spread of the COVID-19 virus in early 2021, the Canadian government instituted a requirement that all international travellers returning to Canada must provide proof of a COVID-19 test with a negative result taken within 72 hours of boarding the plane. Many travellers who were already outside of Canada when the announcement was made and who could not get access to a test where they were holidaying were denied boarding on their return flights, leaving them stranded. These travellers often took out their frustration out on airline staff in the airports from which they were attempting to return home to Canada. Put yourself in the position of an airline’s management team and develop a crisis management plan to deal with the negative publicity created by the decision that was made and quickly instituted by the federal government.

Groups can be paired up, and one group can present their crisis management plan to the other group, who can take on the role of the media or consumers.

Outcomes Role-play in situations like this is helpful for students to work on empathy skills. Public relations is an area of marketing that is much maligned, and sometimes for good reason. Groups should look for compassionate and realistic actions to take to deal with this situation. Many people have experienced travel delays and understand the feeling of helplessness from the consumers’ perspective. This activity applies the crisis management model from the textbook and can include any other methods or approaches that you choose to add to make it more realistic.

Activity #2 Task

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The Break-Up was created a few years ago, but it didn’t get much attention at the time. Have students watch the video here: www.youtube.com/watch?v=D3qltEtl7H8. This humorous video is a good introduction to the overreliance on advertising. There is also mention of coupons, loyalty, and relationships. The video provides an ideal starting point for a discussion about the need for two-way conversation with consumers and companies, and it does so in a humorous way.

The video provides a great opportunity for group work and class discussion. It uses humour to highlight real problems that were developing between consumers and companies at the time—and marketing was the conduit that was often used. The dialogue between the two parties can get strained when companies ignore that fact that marketing promotion is more about marketing communication.

Have students break into small groups of even numbers (e.g., four or six). Have one half of the group take on the role of the ―consumer‖ and the rest of the group take on the role of the ―advertiser.‖ You can ask students to update the discussion to include social media, but the end goal is to create the scene after the one shown in the video. The groups will have to come up with their own perspectives, depending on which role they have been given. But, the interaction between the two parties is something that will have to be worked on together. Groups should then be asked to role-play their scenario to the rest of the class.

Outcomes This type of creativity for an exercise fits well within the topic of communications and advertising. The humour and engagement of the video and the activity should provide students with some creative freedom to investigate the idea of how pervasive marketing is and the importance of two-way interactions. With a stronger knowledge of social media than students in

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the past, your students should be able to see that social networks and overall social marketing have really improved the duality and two-way nature of relationships between buyers and sellers.

Advertising gets a bad reputation, with some of it quite deserved. It can be interesting to see how students handle this scenario.

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Great Ideas for Teaching Chapter 16 Great Idea #1 Creating an Advertising Campaign Ask students to develop an advertising campaign for the Smart Farmer Game, one of the games developed and marketed by Smart Games (www.smartgames.eu) for a specific time period and a specific budget. Students are to choose the time period, and the budget is limited given that this is a small company with international presence. The exercise might be easier if you give students a budget of $150,000 and tell them they are developing a campaign only for their province. In addition, it might be easier if the students answer the questions below, or you can simply let them improvise on their own.

Specific Guidelines Students must address the following somewhere in the project: 1. Establish written goals for the campaign.

2. Define the market segment your campaign will appeal to and why.

3. Select the media you will use and explain why.

4. Develop sample ads for the chosen media and explain each ad and commercial in detail regarding the message you are trying to get across and to whom. Also, include the cost of each ad and commercial and state the time periods they will run.

5. Develop an evaluation method for determining whether the campaign was successful (if your campaign gets used).

Tell students to be creative and include anything else in the campaign that they think will make it succeed. They may use any outside resource they can find. Also suggest that they not wait until the last minute to get started on this project. It will take time to do an adequate job.

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Great Idea #2 Pop-Up Patios Pop-Up Patios is a young business that has seen tremendous growth. Many restaurants hurt by the indoor seating restrictions imposed by provinces and municipalities to limit the spread of the COVID-19 virus turned to Pop-Up Patio (http://streetpatios.ca) to install their attractive and quick-to-assemble outdoor patios.

Ask students to imagine they are the recently hired marketing manager for Pop-Up Patio.

Students must develop a public relations campaign to build awareness of the patios across the province, recognizing in the campaign that the critical variable for restaurateurs considering a patio is the fact that municipalities’ by-laws may have to be altered to allow for patios to be installed on streets.

Great Idea #3 Discussion Board Topics to Encourage Participation Refer to the Instructor’s Manual for Chapter 1 in the ―Great Ideas for Teaching‖ section to read about the benefits and details around discussion boards.

DISCUSSION BOARD TOPIC A 1. If the goal of a promotion plan is to build up the image of the company or the industry, institutional advertising may be used. In contrast, if the advertiser wants to enhance the sales of a specific good or service, product advertising is used.

2. Review the information on major types of advertising including the various types of product advertising in section 16-2 Major Types of Advertising.

3. Then, watch an hour or two of prime-time television (8:00 p.m. to 11:00 p.m.). Describe the various commercials you saw and what type they were.

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DISCUSSION BOARD TOPIC B 1. An advertising appeal identifies a reason for a person to buy a product.

2. Review the information on advertising appeals and the various appeals that are used in advertising in section 16-3b Developing and Evaluating Advertising Appeals, including Exhibit 16.1.

3. Then, find examples of each of the advertising appeals listed in Exhibit 16.1. Take screenshots or pictures of each and describe why you believe it is this type of appeal.

Chapter 17 Sales Promotion and Personal Selling Learning Outcomes 17-1 Define and state the objectives of sales promotion Sales promotion consists of those marketing communications activities in which short-term incentives motivate consumers or members of the distribution channel to purchase a good or service immediately, either by lowering the price or adding value. Sales promotion is a key element in an integrated marketing communications program because it stimulates sales. It is easy to measure. The purpose of sales promotion is to affect behaviour in the short term.

Immediate purchase is the main goal. See Exhibit 17-1.

17-2 Discuss the most common forms of consumer sales promotion Consumer forms of sales promotion include discounts and coupons, rebates, premiums, loyalty marketing programs, contests and sweepstakes, sampling, and shopper marketing. Coupons are certificates entitling consumers to an immediate price reduction when they purchase the product or service. In-store coupons are still popular because they are more likely to influence customers’ buying decisions. Instant coupons on product packages and electronic coupons issued at the

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counter now achieve much higher redemption rates because consumers are making more in-store purchase decisions. Rebates provide purchasers with a price reduction when they mail in a rebate form with a proof of purchase. Premiums offer an extra item or incentive to the consumer for buying the product or service. Loyalty programs are extremely effective at building long-term, mutually beneficial relationships between a company and its key customers. Contests and sweepstakes are generally designed to create interest. Sampling is effective for encouraging consumers to try a new product. Shopper marketing used to be referred to as point-of-purchase promotion. Shopper marketing focuses on the consumer from the point at which the need is stimulated through to selection and purchase of the item. The tool used must suit the objectives.

See Exhibit 17-1.

17-3 Discuss the most common forms of trade sales promotion Trade promotions push a product through the distribution channel. Manufacturers use many of the same sales promotion tools used in consumer promotions, such as sales contests, premiums, and point-of-purchase displays. In addition, manufacturers and channel intermediaries use several unique promotional strategies: (1) trade allowances, (2) push money, (3) training programs, (4) free merchandise, (5) store demonstrations, (6) co-op advertising, and (7) meetings, conventions, and trade shows.

17-4 Describe personal selling Personal selling is a direct communication between a sales representative and one or more prospective buyers in an attempt to exert influence in a purchase situation. Personal selling allows salespeople to thoroughly explain and demonstrate a good or service (see Exhibit 17-2).

Salespeople have the flexibility to tailor a sales pitch to the particular needs and preferences of individual customers. Personal selling is more efficient than some other promotion methods

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because salespeople target qualified prospects and avoid wasting effort on unlikely buyers.

Personal selling affords greater managerial control over promotion costs.

17-5 Discuss the key differences between relationship selling and traditional selling Traditional personal selling methods attempt to persuade the buyer to accept a point of view or to convince the buyer to take some action. Relationship selling is the practice of building, maintaining, and enhancing interactions with customers in order to develop long-term satisfaction through mutually beneficial partnerships. Traditional selling, on the other hand, is transaction focused. That is, the salesperson is most concerned with making one-time sales and moving on to the next prospect. Salespeople practising relationship selling spend more time understanding a prospect’s needs and developing solutions to meet those needs (refer to Exhibit 17.3 in the text).

17-6 List the steps in the selling process and discuss key issues Completing a sale actually requires several steps. The sales process, or sales cycle, is simply the set of steps a salesperson goes through to sell a particular product or service. The sales process or cycle can be unique for each product or service, depending on the features of the product or service, the characteristics of customer segments, and the internal processes in place within the firm, such as how leads are gathered. The selling process consists of seven basic steps (refer to Exhibit 17.4): (1) generating leads, (2) qualifying leads, (3) approaching the customer and probing needs, (4) developing and proposing solutions, (5) handling objections, (6) closing the sale, and (7) following up.

Glossary Terms cold calling Lamb, MKTG, 5Ce, Instructor’s Manual

consumer sales promotion

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coupon follow-up freemium frequent-buyer program lead generation (prospecting) lead qualification loyalty marketing program needs assessment negotiation networking preapproach premium

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push money rebates referrals relationship selling (business development) sales presentation sales process (sales cycle) sales proposal sampling social selling trade allowance trade sales promotion Trojan Horse method

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Lesson Plan for Lecture Brief Outline with Suggested PowerPoint Slides Slides are available at login.cengage.com.

LEARNING OUTCOMES AND TOPICS

POWERPOINT SLIDES

Define and state the objectives of sales promotion 17-1 What Is Sales Promotion?

17-1a The Sales Promotion Target 17-1b The Objectives of Sales Promotion Discuss the most common forms of consumer sales promotion 17-2 Tools for Consumer Sales Promotion 17-2a Discounts and Coupons 17-2b Rebates 17-2c Premiums 17-2d Loyalty Marketing Programs 17-2e Contests and Sweepstakes 17-2f Sampling 17-2g Shopper Marketing Discuss the most common forms of trade sales promotion 17-3 Tools for Trade Sales Promotion Describe personal selling 17-4 Personal Selling Discuss the key differences between relationship selling and traditional selling 17-5 Relationship Selling List the steps in the selling process and discuss key issues 17-6 The Selling Process 17-6a Some Key Issues in Each Step of the Selling Process 78-6b Personal Selling in a Global Marketplace 17-6c The Impact of Technology on Personal Selling

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Slides 20‒22 Slides 23‒24

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Lesson Plan for Group Work Activities in class that relate to group work are a good way to apply the concepts in each chapter and a meaningful way to engage students in active learning in the classroom. With each activity, it is at the discretion of the instructor to determine how to best apply the group work that is provided. This will likely depend on factors such as classroom size, classroom layout, and overall delivery method. Each group activity below has a task that is detailed, followed by an overview of the outcome that results from engaging in the activity.

Activity #1 Task Divide the class into groups of three to five and give the students the following scenario: At the height of the COVID-19 pandemic, Rose and her partner, Min, followed through on a lifelong dream and opened up a boutique athletic shoe store specializing in running and hiking shoes. They are seasoned and experienced athletes, with Rose currently the track-and-field coach for a postsecondary institution and Min an ambassador for a national brand of running shoes and apparel. The time to open was clearly not ideal, but the lease was signed, rent was incurring, and inventory had arrived. Utilizing what you’ve learned about sale promotion techniques, prepare a sales promotion plan for Rose and Min that would (1) drive traffic to the store, (2) sell shoes, and (3) build their reputation as the most preferred location for your running and hiking needs.

Have the groups present their plans to each other for critical analysis.

Outcomes The intent of this exercise is to ensure students can demonstrate an understanding of how various sales promotion techniques can be used to satisfy different objectives. For example, the

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techniques used to drive traffic to the store may be very different from the techniques used to sell shoes. By having the groups present to each other, presentation skills will be enhanced. To improve their critical evaluation skills, it might be useful to provide a rubric to use in the evaluations of each presentation. At the least, ensure that they are considering the objective and the creativity of the recommendations while evaluating.

Activity #2 Task Present students with the following scenario: You have just been promoted to sales manager at a large, multinational company that specializes in hazardous waste removal from hospitals and other healthcare settings. Your territory includes all of the province you live in. One member of your sales team is a very good transactional sales rep, as she can easily close a sale, but she has not built the business (no new clients have been added to her territory) and she has not increased her sales revenue numbers over the past 24 months. When asked, she doesn’t appear to really know or understand her customers very well. However, during sales meetings, she is highly engaged and all the other team members seem to really like her. You don’t believe she is a good addition to your team but are concerned with the impact on team morale if you let her go. Develop a sales training plan for this rep to implement over the next six months, with an emphasis on relationship selling, to move her away from the apparent transactional approach she seems to be using. Be prepared to present this plan to the class for feedback and alterations before finalizing it.

Outcomes

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This exercise is designed to ensure students understand the difference between a transactional sales skill versus relationship selling skills. By having the students develop a sales training plan, all aspects of what makes for a skilled relationship selling sales rep should be demonstrated. The presentation of the plan will ensure students can justify their decisions.

Great Ideas for Teaching Chapter 17 Great Idea #1 Discussion Board Topics to Encourage Participation Refer to the Instructor’s Manual for Chapter 1 in the ―Great Ideas for Teaching‖ section to read about the benefits and details around discussion boards.

DISCUSSION BOARD TOPIC A 1. Until recently, personal selling focused almost entirely on making a one-time sale and then moving on to the next prospect. Modern views of personal selling emphasize the relationship that develops between a salesperson and a buyer.

2. Review the information on relationship selling in section 17-5 Relationship Selling in the text.

3. Then, identify a recent experience when you either bought or sold something. Was relationship selling used? If so, how? If not, how could it have been used? Would relationship selling have made the selling or buying experience more pleasant? How?

Great Idea #2 Ragin’ Cajun Ideas Have students break up into teams and imagine they are a project group at an advertising agency.

The agency has recently been assigned the task of developing promotional techniques to introduce a client’s new product, a Cajun chicken sandwich. Advertising spending is limited, so

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the introduction will only include some low-budget sales promotion techniques. Teams must write a sales promotion plan that will increase awareness of the new sandwich and provide an excellent trial. The students should be sure to include social media in their plan to augment the client’s limited spending potential.

Great Idea #3 Value of a Brand “For a brand to be valued versus sell on value, it must beat with what makes my heartbeat. I don’t care who is the fastest, the biggest or the best, and I am not interested in the company that you keep, or the celebrities that you pay, to capture my attention. I care about brands that help my family and me get to where we need and deserve to go. I care about brands that care about jobs and my community, and my planet; if I feel you have a higher purpose than profit and that you are personally vested in my outcome, I will open my mind and wallet to you.”

—Tony Chapman, founder of Chapman Reactions3 Ask students to evaluate the quote above, considering what they have learned in Chapter 17 on the role and purpose of sales promotion. To get them thinking, begin by asking the questions ―Does sales promotion, particularly consumer sales promotion, devalue a brand? How can a marketer use consumer sales promotion to achieve the many benefits it provides while not devaluing the brand?‖

Great Idea #4 Consumer Sales Promotions There are plenty of examples of good and bad consumer sales promotions that we are exposed to every single day. Have students either complete an audit of the ones they are exposed to over a

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two-day period or, through online research, identify five different consumer promotions that they find interesting. Have students chose two promotions and critique each by answering the following: 1. Who is the intended target?

2. What type of buyer is the intended target?

3. What do you believe are the intended results of the promotion?

4. What type of sales promotion is this?

5. How would you improve on it?

Students should be prepared to present the promotions and their critiques to the class. They should also be sure to capture visuals of the promotion.

Great Idea #5 Learning about Sales Presentations SALESPERSON INTERVIEW Have each student interview a salesperson and go on a few calls with that salesperson. They should do this after they themselves have done sales presentations for the class (which are recorded).

Outline for Interview with Salesperson •

Name, job title, company, product lines

•

How long has the salesperson been at the company?

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How long has the salesperson been in sales? Describe other sales jobs.

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Describe the customers.

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Describe what the salesperson likes most about the job.

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Describe what the salesperson likes least about the job.

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What is their selling philosophy?

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What type of training did they receive?

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Describe their attitude about quotas, paperwork, and sales managers.

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Income—ask how much someone makes when starting out and then five years later.

•

Is income based on a salary, commission bonus, or some combination?

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What perks come with the job?

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What is the most embarrassing thing that has ever happened to the salesperson during a call?

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What was the most satisfying sale they ever made?

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Would they recommend a career in sales?

Outline for Things to Observe during Sales Call •

Before the sales call, have the salesperson outline who they are calling on and purpose of the call.

•

Identify the customer type.

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What type of selling model did the salesperson use?

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How did the salesperson begin the presentation?

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How did the salesperson uncover needs?

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How many objections did the customer bring up?

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Did you hear any trial closes? What were they? When did they occur?

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Did the buyer give any closing signals?

•

How many times did the salesperson try to close? What techniques did they use?

•

Did the salesperson try to relieve postpurchase dissonance?

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Chapter 18 Social Media and Digital Strategies Learning Outcomes 18-1 Describe social media’s role in an integrated marketing communication plan While the World Wide Web quickly made Internet use pervasive in the late 1990s, social media made Web use ubiquitous 10 years later. Now, in the 2020s, it is unfathomable to imagine a time without social media. Not since the dawn of television has a medium been so revolutionary in reaching consumers. Today, eyeballs are on not just one large screen but on multiple screens.

Social media have not only revolutionized where we pay attention, but where we receive our news.

Social media as communication tools provide marketers with the opportunity not only to respond immediately but also to listen. Marketers who listen can tap into comarketing—capitalizing on consumer input to create message content. These new media stars are called influencers and they have much impact. Social media offer more sophisticated methods of measuring the impact and effectiveness of conversations, which is critical for the creation of new and innovative marketing communication campaigns. Canadians are active social media consumers. We regularly use and visit

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social media sites, and almost three-quarters of Canadians follow at least one brand or company on social media. Canadians use a variety of devices when online.

18-2 Describe the social media tools in a marketer’s toolbox, and explain how they are useful A number of tools and platforms can be employed as part of an organization’s social media strategy. These include social networking sites, social news sites, blogs, microblogs, locationbased social network sites, review sites, podcasts, virtual worlds, and social gaming. Each has its own purpose within a social media plan. Given the relative ease and efficiency with which organizations can use social media, a positive return on investment (ROI) is likely, but as for anything else, the greater a company’s investment in time, money, and human resources, the greater return it can expect. Some social media metrics include buzz, interest, participation, search engine ranks and results, influence, sentiment analysis, and website metrics.

18-3 Understand the mobile infrastructure supporting social and digital marketing Mobile and smartphone penetration has seen a significant increase in mobile advertising revenue—to over $8 billion. Smartphones have led the way to instant messaging and millions of apps and widgets to enhance life. Much of the most recent growth has been in new platforms, which have grown beyond smartphones and tablets into wearable technology, such as the Apple Watch. The implication: consumers have even more ways to access the Internet and, thus, companies and their products.

18-4 Explain the role of search, and distinguish between SEO and SEM

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Online search is a fully engrained human behaviour, and marketers must understand how it works. Search engine optimization (SEO) is a process that marketers take to optimize the chance of search engines, “driven” by persons looking for information online, to produce their company’s website, name, products—or all three—when people perform those online searches. Companies must understand how to use this to their advantage—how to optimize searchability. SEO maximizes a company’s chance to be ranked high in one of those 100,000 searches per second based solely on no-cost tactics such as keywords, tagging, website design, and so on. SEM is generally explained as the “paid search” partner in manipulating search. “Keyword” is also an important concept to understand.

18-5 Describe general guidelines involved in a social media campaign Refer to the feature box entitled ―Digital Marketing Plan at a Glance‖ in the text. A key component of a good plan is that companies have a system in place to track their customers in the digital space in order to listen to them.

Glossary Terms apps blogs corporate or professional blogs crowdsourcing

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influencer location-based social networking sites media-sharing sites microblogs

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noncorporate blogs organic traffic podcasts review sites search engine marketing (SEM)

search engine optimizations (SEO) social commerce social networking sites social news sites

Lesson Plan for Lecture Brief Outline with Suggested PowerPoint Slides Slides are available at login.cengage.com.

LEARNING OUTCOMES AND TOPICS

POWERPOINT SLIDES

Describe social media’s role in an integrated marketing communication plan 18-1 What Is Social Media’s Role in Integrated Marketing Communications?

18-1a How Canadians Use Social Media Describe the social media tools in a marketer’s toolbox, and explain how they are useful 18-2 The Tools of Social Engagement 18-2a Social Networks 18-2b Social News Sites 18-2c Blogs 18-2d Microblogs 18-2e Location-Based Social Networking Sites 18-2f Review Sites 18-2g Audio: Podcasts and Beyond 18-2h Virtual Worlds and Online Gaming 18-2i Evaluation and Measurement of Social Media 18-2j The Changing World of Social Media Understand the mobile infrastructure supporting social and digital marketing 18-3 Mobile’s Role in Digital Marketing 18-3a Mobile and Smartphone Technology 18-3b The Second Coming of Text 18-3c Apps and Widgets Explain the role of search, and distinguish between SEO and SEM 18-4 Search: SEO and SEM

Slides 4‒7

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Slides 14‒17

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Describe general guidelines involved in a social media campaign 18-5 Designing a Digital Marketing Strategy 18-5a The Listening System

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Lesson Plan for Group Work Activities in class that relate to group work are a good way to apply the concepts in each chapter and a meaningful way to engage students in active learning in the classroom. With each activity, it is at the discretion of the instructor to determine how to best apply the group work that is provided. This will likely depend on factors such as classroom size, classroom layout, and overall delivery method. Each group activity below has a task that is detailed, followed by an overview of the outcome that results from engaging in the activity.

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Activity #1 Task Companies are increasingly using social networking sites such as Snapchat and Twitter as part of their ongoing business practices. The outcome of this exercise is to get students to understand the impact of corporate social networking.

Divide the class into groups of four or five. Each group should identify one company that engages in corporate social networking. Students are encouraged to select companies with social networking sites that they have personally used in the past. The company may be public or private, for-profit or not-for-profit, and provide either products or services. Once a company has been identified, groups should work to answer each of the following questions in writing: •

What social media platform(s) does the company utilize?

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Who is the company’s target market? Does the company do a good job of targeting these individuals through its social networking site? Why or why not?

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Compare the company’s social networking site with its official website. How does the content and language compare between the two sites?

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Identify the company’s primary social media objectives based on actual communications on its social networking site. Be sure to provide examples.

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Describe the promotional methods that the company uses to market products or services on its social networking site.

•

What do you recommend that the company do to stay on top of current social media trends?

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After the groups are finished, have them share their ideas with the class.

Outcomes The outcome of this exercise is to ensure students understand the impact and importance of corporate social networking. By addressing each of the questions, they will be able to methodically review the company’s social media presence and apply textbook concepts to their evaluation. Encouraging the students to choose a company they have had experience with will ensure more engagement in their analysis. The presentation at the end will serve to further enhance their presentations skills.

Activity #2 Task The report entitled ―The State of Social Media in Canada 2020‖ released by the Ryerson Social Media Lab (https://socialmedialab.ca/2020/07/13/the-state-of-social-media-in-canada-2020-anew-survey-report-from-the-ryerson-social-media-lab) states that 94 percent of online Canadian adults have at least one social media account and that 99 percent of Canadian households have access to broadband Internet. With so many Canadians forced to stay at home due to the COVID-19 pandemic, online activity and social media became the tools for social engagement— a way to manage the social isolation that physical distancing measures created. Our social media accounts and new online tools became our way to stay connected with family and friends. They became indispensable for allowing working Canadians to work remotely. However, as our online activity increased and our reliance on social media sites exploded, we knowingly or unknowingly began generating more and more data about our interests, habits, likes, and dislikes that were readily available to businesses. Are Canadians adequately protected from this data being used by companies as they create campaigns to reach and influence us?

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Ask students whether they have experienced situations where conversations online led to emails, posts, or ads on their social media sites that made them think that someone was watching or listening to them. Have them consider these issues and comment on their own experiences.

Are they concerned about privacy issues because of their use of social media? What, if any, precautions do they take?

Outcomes The purpose of this activity is to sensitize students to the very real issue of privacy in social media communication today. This activity should enhance their understanding of how to protect themselves and also how to ensure that their consumer information is held with the highest degree of privacy.

Great Ideas for Teaching Chapter 18 Great Idea #1 Discussion Board Topics to Encourage Participation Refer to the Instructor’s Manual for Chapter 1 in the ―Great Ideas for Teaching‖ section to read about the benefits and details around discussion boards.

DISCUSSION BOARD TOPIC A 1. In the 2020s, it is unfathomable to imagine a time without social media. But, commercialization took longer than expected, and even now, stakeholders of social media are constantly striving to gain maximum efficiency from its overall reach and its complex roster of different players. The increased proliferation of online social engagement tools, the ongoing evolution of email and the use of cookies and data capture, and increased use of SEO strategies

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by companies have changed the business model for many companies. Companies are more agile and more responsive, and consumers expect that.

2. Review the chapter, specifically sections 18-1 What Is Social Media’s Role in Integrated Marketing Communications?, 18-2 The Tools of Social Engagement, and 18-5 Designing a Digital Marketing Strategy.

3. Choose an organization you are interested in, one that maybe you have bought something from or would like to work for, and critically evaluate its online presence. Identify the key elements of its online presence, evaluating it from an integrated marketing communications (IMC) perspective. How effective is its IMC strategy? What do you think works well? What does not work? This may require you to search out their offline activity and include that in your analysis.

Great Idea #2 How Do Non-profit Organizations Use Social Media?

Social media can be a cost-effective way for non-profits to build awareness for a variety of reasons, including to help build a donor base, to remain relevant to donors, to steward donors, and to ensure that in the competitive arena of fundraising they are able to sustain the organization as it seeks to make a difference in your community.

Have students choose a non-profit whose cause resonates with them and then audit the company’s social media. Is it being used effectively? What tools are they using? How could these tools be used more effectively? What other tools would students recommend they use?

Based on this audit and the answers to these questions, students should detail what changes they would recommend for this non-profit and why.

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Great Idea #3 Creating a Digital Marketing Plan Present students with the following scenario: In early 2021, a new zero-waste, waterless line of hair care products called Everist was launched (https://helloeverist.com). You have been hired as their digital marketer. Complete a thorough audit of the brand(s) and then present a digital marketing plan to the two founders of Everist to successfully build the brand in the coming year. While their target audience can be very broad, the unique selling proposition of Everist should provide you with a better understanding of the segment they are seeking, thus making it possible to effectively build your customer persona(s), which is step one in the digital marketing plan. Complete all components/steps (or explain how to complete the steps) of the plan as presented in the feature box ―Digital Marketing Plan at a Glance‖ in the text. Be prepared to present your plan to the class as an agency would pitch it to a client.

Chapter 19 Developing a Global Vision Learning Outcomes 19-1 Discuss the importance of global marketing Today, global revolutions are underway in many areas of our lives: management, politics, communications, and technology. The word global has assumed a new meaning, referring to a boundless mobility and competition in social, business, and intellectual arenas. As world trade barriers are removed and domestic competition increases, global marketing is becoming a viable

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and important opportunity for Canadian businesses. However, Canada’s ability to compete in global markets is facing significant challenges from many countries, and many domestic firms are losing market share to foreign businesses. Often, a Canadian firm’s toughest domestic competition comes from foreign companies. Moreover, a global vision enables a manager to understand that customer and distribution networks operate worldwide, blurring geographic and political barriers and making them increasingly irrelevant to business decisions.

19-2 Discuss the impact of multinational companies on the world economy Many large Canadian companies are global marketers, and many have been very successful. A company that is heavily engaged in international trade, beyond exporting and importing, is called a multinational corporation. Because of their vast size and financial, technological, and material resources, multinational corporations (MNCs) have a tremendous influence on the world economy. These firms have the potential to solve complex social, economic, and environmental problems in both developed and undeveloped nations. But, if these corporations misuse their power, they can have a devastating effect on economic conditions in the world.

Traditionally, marketing-oriented multinational corporations have used a strategy of providing different product features, packaging, advertising, and so on in each country in which they operate. In contrast is global marketing standardization, which involves producing uniform products that can be sold in the same way all over the world. Today, many multinational companies use a combination of global marketing standardization and variation.

19-3 Describe the external environment facing global marketers Global marketers face the same environmental factors domestically or internationally: culture, economic and technological development, political structure and actions, demographic makeup, and natural resources. However, several of these factors have a greater impact and are more

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difficult to understand in the global environment. Cultural considerations include the language, societal values, attitudes and beliefs, and customary business practices. Level of economic development may vary widely among countries. Economic considerations such as average family incomes impact purchasing power and demand. A consideration of economic data can provide a marketer with an aid in measuring market potential in countries around the world. The political structure may include tariffs, quotas, boycotts, exchange controls, trade agreements, and market groupings. Demographic makeup (and population density in particular) impacts decisions, as does the shortage of natural resources. In short, all the external environment factors may be different and more complicated in global marketing.

19-4 Identify the various ways of entering the global marketplace A company should consider entering the global marketplace only after its management has a solid grasp of the global environment. Companies decide to go global for a number of reasons.

One reason is to earn additional profits; managers may feel that international sales will result in higher profit margins or more added-on profits. A second stimulus is that a firm may have a unique product or technological advantage not available to other international competitors. Such advantages should result in major business successes abroad. Firms use the following strategies to enter global markets, listed in descending order of risk and profit: direct investment, joint venture, contract manufacturing, licensing, and exporting.

19-5 List the basic elements involved in developing a global marketing mix To succeed, firms seeking to enter into foreign trade must adhere to the principles of the marketing mix. Information gathered on foreign markets through research is the basis for the four Ps of global marketing strategy: product, place (distribution), promotion, and price.

Marketing managers who understand the advantages and disadvantages of different ways of

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entering the global market and the effect of the external environment on the firm’s marketing mix have a better chance of reaching their goals. In developing a global marketing mix, a firm’s major consideration is how much it will adjust the four Ps within each country. Using a global marketing approach, a firm makes few or no adjustments to product and promotion strategies.

However, national differences in distribution channels and economic conditions usually require such firms to adjust place and price.

19-6 Discover how the Internet is affecting global marketing Going global is easier than it has ever been as a result of the Internet. Opening an e-commerce site immediately puts a company in the international marketplace. Social media help global marketers to have conversations with the customer. These conversations can help the global marketer gather consumer intelligence to alter marketing strategies as needed.

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Glossary Terms buyer for export Canadian–European Union Comprehensive Economic and Trade Agreement (CETA) capital intensive contract manufacturing countertrade direct foreign investment dumping European Union (EU) export agents export broker exporting floating exchange rates General Agreement on Tariffs and Trade (GATT) global marketing global marketing standardization

global vision gross domestic product (GDP) gross national income (GNI) per capita Group of Twenty (G20) high-net-worth individuals (HNWI) inshoring International Monetary Fund (IMF) joint venture licensing Mercosur multinational corporations offshoring Canada–United States–Mexico Agreement (CUSMA) Uruguay Round World Bank World Trade Organization (WTO)

Lesson Plan for Lecture Brief Outline with Suggested PowerPoint Slides Slides are available at login.cengage.com.

LEARNING OUTCOMES AND TOPICS

POWERPOINT SLIDES

Discuss the importance of global marketing 19-1 Rewards of Global Marketing 19-1a Importance of Global Marketing to Canada Discuss the impact of multinational companies on the world economy 19-2 Multinational Companies 19-2a Global Marketing Standardization

Slides 4‒9

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Describe the external environment facing global marketers 19-3 External Environment Facing Global Marketers 19-3a Culture 19-3b Economic and Technological Development 19-3c The Global Economy 19-3d Political Structure and Actions 19-3e Demographic Makeup 19-3f Natural Resources Identify the various ways of entering the global marketplace 19-4 Global Marketing by the Individual Company 19-4a Exporting 19-4b Licensing and Franchising 19-4c Contract Manufacturing 19-4d Joint Venture 19-4e Direct Investment List the basic elements involved in developing a global marketing mix.

19-5 The Global Marketing Mix 19-5a Product Decisions 19-5c Promotion Adaptation 19-5c Place (Distribution) 19-5d Pricing Discover how the Internet is affecting global marketing 19-6 The Impact of the Internet

Slides 15‒24

Slides 26‒27

Slides 29‒36

Slide 38

Lesson Plan for Group Work Activities in class that relate to group work are a good way to apply the concepts in each chapter and a meaningful way to engage students in active learning in the classroom. With each activity, it is at the discretion of the instructor to determine how to best apply the group work that is provided. This will likely depend on factors such as classroom size, classroom layout, and overall delivery method. Each group activity below has a task that is detailed, followed by an overview of the outcome that results from engaging in the activity.

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Activity #1 Task Students from other countries who are studying in Canada bring with them a rich cultural heritage and a perspective that most Canadian-born students seldom bother to learn about.

Divide the class into teams consisting of four students. Each team is assigned a country.

Their task is to develop a plan for marketing a specific consumer product to their assigned country. You can assign products to groups or allow them to choose. Each of the four students should also be assigned one of the four Ps for the product. One helpful idea is to bring familiar household items (e.g., cleaning supplies, packaged foods, etc.) to class and tell groups to imagine what those products would need to be like to meet the needs of the market. This activity requires some research, and students should be encouraged to investigate their assigned country during this process.

If your class is quite multicultural, you could ensure that each group has at least one new Canadian or immigrant in the group and have the group create the product for that student’s country of origin. This should help to stimulate conversation around the uncontrollable factors in the student’s home country such that the whole group can more effectively create a marketing strategy.

Outcomes This activity requires students to work together and possibly work with classmates they don’t know or don’t usually sit with during class. Working together is an important skill in a marketing class, as there are often group projects where students work in groups to complete semester-long projects. Sometimes these groups are assigned and sometimes students are allowed to choose their groups. One approach to this activity or to a semester group project is to have groups with

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diverse members based on gender, year of study, country of birth, and other factors. This can provide students with a valuable group experience, where they will need to bring together different viewpoints to complete project tasks.

Activity #2 Task Despite a worldwide pandemic and the economic challenges associated with it, November 11, 2020, was the biggest shopping day of the year. November 11 is China’s Singles Day. The holiday was originally founded in 1993 by college students as a celebration for people who are single, and the date was chosen because of the connection between singles and the number 1.

Eventually, Chinese e-commerce company Alibaba capitalized on the new holiday craze and created an online shopping event to take advantage of that interest and the growing trend toward online shopping. In 2020, sales reached approximately $75 billion, an increase of over 25 percent from 2019.

Singles Day is more than a single-day shopping event. It is a multi-day, multiactivity event, with live concerts, fashion shows, TV galas with celebrities making appearances, and much more. In 2020, Singles Day was kicked off on November 1 with an evening gala featuring Katy Perry, who was livestreamed due to COVID-19 travel restrictions. To counter the impact of the lost sales during the COVID-19 lockdown, the kickoff event was extended by three days.

With COVID-19 curtailing travel to Europe by well-to-do Chinese consumers, many luxury brands signed up for Singles Day on Tmall for the first time. Their sales were unprecedented!

Provide the above information to the students, and then ask the following questions: 1. How does this holiday compare to Black Friday and Cyber Monday?

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2. Why is it so important for global brands to participate in this shopping day?

3. How should global brands participate in Singles Day? 4. How should Canadian companies participate in Singles Day? Outcomes This exercise is designed to heighten sensitivity to an event that has become a global phenomenon, which should be of interest to students. By asking how Canadian companies could participate in Singles Day, you are encouraging students to think like a global marketer—to consider how such an event could positively influence a company’s sales and consumer engagement.

Great Ideas for Teaching Chapter 19 Great Idea #1 Discussion Board Topics to Encourage Participation Refer to the Instructor’s Manual for Chapter 1 in the ―Great Ideas for Teaching‖ section to read about the benefits and details around discussion boards.

DISCUSSION BOARD TOPIC A 1. No longer just an option, global marketing—marketing that targets markets throughout the world—has become an imperative for business.

2. Review the information on the rewards of global marketing in section 19-1 Rewards of Global Marketing in the text.

3. Describe how your employer (current or past) participates in the global marketplace by buying foreign-made goods and services or selling its goods and services abroad.

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DISCUSSION BOARD TOPIC B 1. A company that is heavily engaged in international trade, beyond exporting and importing, is called a multinational corporation.

2. Review the information on multinational companies in section 19-2 Multinational Companies in the text.

3. Describe the products you buy that are manufactured by multinational corporations. How many of them are not made in this country? (Check labels or packaging to see where they were made.) Do you think this is a good situation? Why or why not?

Great Idea #2 What Are the 10 Most Valuable Brands in the World?

For this activity, ask students to write out what they think are the top 10 most valuable brands in the world. Now, have them go to https://interbrand.com/best-global-brands and compare their lists to the list prepared by Interbrand. Students should then choose one of the top 10 global brands and discuss in their own words why the brand has become such a global success.

Encourage the students to research and reflect on the brands’ global marketing mix in their answers.

Great Idea #3 Cross-Cultural Marketing: Taking the Brand Local?

What must international and cross-cultural marketers think about when introducing products into foreign markets? Instead of focusing on familiar Canadian products being introduced into a new foreign market, this exercise has students introduce a foreign product into Canada.

Simple is a skin care line sold in the UK. It was founded in the 1960s with the creation and marketing of a soap that was free of perfume, colour, and harsh chemicals. Today, it has a

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very comprehensive list of skin care products that are free of alcohol, chemicals, colours, and other harsh ingredients, packaged in recycled materials. Have students visit the company website (www.simple.co.uk) and learn as much as they can about the product. Now, considering the uniqueness of the Canadian marketplace, they will develop a marketing plan for Simple’s introduction into Canada. The plan should include the target market, the product’s positioning statement, packaging and size considerations, price (or pricing strategy), distribution strategy, and promotional strategy. The differences and similarities between consumers in Canada and in the home country of the product should be highlighted during a class discussion.

Great Idea #4 Globalizing the Thinking of Business Students During the past decade, we have seen a strong emphasis placed on providing business students with a more global orientation. To accommodate this, we need to make the students realize that being raised in a particular culture results in their ―business perceptions‖ being at least partly a function of their cultural background. These quotes below should help them think about the impact of globalization. Once they complete the exercise, it would be worthwhile to have a thought-provoking class discussion as to why they feel as they do, with the intent of identifying how a student’s own culture and privilege influences their perception of the strengths and weaknesses of globalization.

“In too many instances, the march to globalization has also meant the marginalization of women and girls. And that must change.”

—Hillary Clinton

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“Despite its challenges, globalization has led to one of the most peaceful and productive times in world history.”

—Mike Quigley “The Internet is becoming the town square for the global village of tomorrow.”

—Bill Gates “Where globalization means, as it so often does, that the rich and powerful now have a new means to further enrich and empower themselves at the cost of the poorer and weaker, we have a responsibility to protest in the name of universal freedom.”

—Nelson Mandela Have students choose one of the quotes above and explain in their own words why they agree or disagree with it.

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