Chapter 1

Welcome To The World of Marketing

Overview: The primary goal of this first chapter is help dispel misconceptions that
students have about what is marketing. Much time is devoted to helping the student
understand what is marketing. In addition to providing the standard definition of
marketing and the marketing concept, the terms and concepts which are used in these
definitions are also examined. The evolution of the marketing concept and the role of
marketing in society are also discussed. Levi Strauss is the focus of the real people, real
choices segment.

Objectives

1. Define the marketing concept.

2 Describe the marketing mix.

3. Understand the basics of marketing planning.

4. Describe the evolution of the marketing concept.

5. Explain how marketing is important to both individual and business customers in the
marketplace, in our daily lives, and in society.

6. Explain marketing’s role within an organization.

Lecture Outline and Suggested Activities

Introduction: The following exercise could be used at the beginning of class to help
students understand what marketing is and the role that marketing activities have in their
everyday life. Begin by asking students to answer a few questions about their activities
for that day. For example, you might begin the discussion by asking students to think
about their answers to the following questions:
What did you have for breakfast and why did you eat that particular food? Or

What brand(s) of bath soap or shampoo did you use this morning? And Why did you use
that brand?
Student responses to these questions will of course vary, but if you probe and ask “why”
did you eat Lucky Charms cereal or “why” did you use Dove body wash you will begin
to find some aspects of the marketing concept and the marketing mix emerge.
 Try to engage students in a discussion directed toward examining the 4 P’s of the
marketing mix. For example:

Product: Why do you eat Lucky Charms and not Special K? Try to probe and
discuss the feature benefits of products and the use of brand names. You might want to
also discuss the new cereal combos which are available from Kellogg where a milk box
and cereal box are packaged together. You might also want to mention that some cereals,
like Cheerio’s for example, are now packaged in small single serving bags and are
available at convenience stores. Discuss the importance of convenience and adapting
packaging to meet the demands of a time pressured society.
Ask students if the product they mentioned satisfied a need or a want? See if students
know the difference between a need and a want.

Place: Where did you buy the cereal? Discuss all of the possible places for
purchasing cereal. Responses will probably be the grocery store or the store cafeteria, but
be sure to discuss the importance of modifying where a product is sold and the channels
of distribution used to deliver the product. Mention that groceries can even be purchased
over the Internet and the role of the Internet in delivering goods.

Price: Was price a factor in your selection? For example did you buy a cereal
that was on sale or that you had a coupon for? Price competition from private brands of
cereal could also be explored.

Promotion: Ask students about any marketing messages they recall for the cereal.
Discuss whether or not these messages had any impact on their selection and purchase of
a cereal. Ask students if marketers create needs.

Ideally the above discussion will provide the class with an overview of marketing
and the objectives for the first chapter.

Class Discussion
Having completed the opening exercise, ask students to define marketing and then show
them the definition of marketing and lead them through the terms found in the definition.

1. What Is Marketing?
Marketing: is the process of planning and executing the conception, pricing,
promotion, and distribution of ideas, goods, and services to create exchanges that
satisfy individual and organizational objectives.

Class Discussion
Refer students to the definition of marketing. Who are the individuals and organizations
and what do they desire? Engage students in a discussion to examine who are the
individuals and organizations referred to in the definition and what are their needs and
wants.

a. Marketing Satisfies Needs

1). Marketing more than any other business function deals with people. The
consumer, the ultimate user of a good or service is the focus all marketing
activities.
2). The consumer can be individuals or organizations, whether a company (Levi),
government (federal, state, local), sorority, or a charity.
3). The Marketing Concept: A management orientation that focuses on identifying
and satisfying consumer needs to ensure the organization’s long term profitability
objectives.
a). Need: Recognition of any difference between a consumer’s actual state
and some ideal or desired state.
b). Want: The desire to satisfy needs in specific ways that are culturally and
socially influenced.
c). Benefit: The outcome sought by a customer that motivates buying
behavior.
d). Demand: Customers’ desire for products coupled with the resources to
obtain them.

Class Discussion
What is the difference between a need and a want? Students will probably be quick to
answer this question. If they are having trouble distinguishing between the two ask if any
student has recently made a large purchase (i.e., car, stereo, computer, or even a diamond
ring). Then ask what need was meet when you made the purchase? How was your want
satisfied by the purchase? Discuss with students that needs can be satisfied in different
ways that are culturally and socially influenced. If you have any international students in
your class might ask to discuss how needs might be satisfied differently in their home
country.

Class Discussion
Have students comment on the growth of the cosmetic surgery market. Discuss how new
procedures, like Botox injections and lazer peels can be done during lunch hour and the
individual can return to work immediately after the procedure is performed. Discuss the
concepts of need, want, desire, and demand.

4). The market is composed of all customers and potential customers who share a
common need that can be satisfied by a specific product, who have the resources
to exchange for it and are willing to make the exchange, and who have exchange
authority.
a). Marketplace: is any location or medium used to conduct an exchange.
 b). Technology has greatly changed the meaning of “marketplace”. Today
exchanges occur via telephone, fax, and the Internet. These new
technologies, coupled with the increased use of credit and debit cards,
have changed where and how exchanges occur.

Class Discussion
Involve students in a discussion of purchasing over the Internet. What types of products
have they purchased and why did they choose to make the purchases via the Internet
rather than through a retail store? What concerns do students have about Internet
purchasing?

5). A recent movement in marketing is the societal marketing concept: an

orientation that focuses on satisfying consumer needs while addressing
the needs of a larger society.

Class Discussion
In what ways might a firm practice the societal marketing concept? How does the
consumer, society, and the firm benefit from these actions?

b. Marketing is an Exchange of Value.

1). Exchange: The process by which some transfer of value occurs between a
buyer and a seller. There are two requirements which must be meet for
an exchange to occur:
a). Need two willing people or organizations.
b). Each must possess something that the other wants.
2). Electronic commerce systems are changing not only the place where the
transaction occurs, but the role of money in the exchange process.

c. (Almost) Anything Can Be Marketed

1). Consumer Goods and Services
a). Product: A tangible good, a service, an idea, or some combination
of these that through the exchange process satisfies consumer or
business customer needs, a bundle of attributes, features,
functions, benefits, and uses.
b). Consumer goods are purchased by individuals for personal or
family consumption.
c). Services: Intangible products that are exchanged directly from the
producer to the customer. Examples include a haircut or computer
assistance.
2). Business-to-Business Marketing
 a). Businesses and organizations are also consumers of goods and
services.
b). Industrial Goods: Goods bought by individuals or organizations
for further processing or for use in doing business.

Class Discussion
Consider a product that is purchased by both individual customers and organizations. For
each group discuss the needs and benefits sought.

3). Not-For-Profit Marketing

Marketing is not just for goods and services. Local school districts, churches, and
the Red Cross are all examples of not-for-profit organizations which engage in
marketing activities.
4). Idea, People, and Place Marketing
Marketing activities can be used to convince consumers to change a behavior,
change their attitude about a person, and to help consumers decide on a vacation
location.

Class Discussion
What behaviors have you changed as a result of idea marketing? Listed below are some
slogans from recent advertisements. Have any of these had an impact on behaviors?
Just Say No to Drugs
Don’t Drink and Drive
Get High, Get Aids, Die
Abuse hurts

People – How are the principles of marketing applied to people? Consider President
Clinton, or Monica Lewinsky? Discuss candidates for public offices, how are marketing
concepts used by these individuals?
How do you market yourself? A resume and/or an interview are both examples of
situations in which you market yourself.
Place: Places are also involved in marketing. For example, your school baseball team,
the symphony, Disney World, New York City all relay heavily on the activities involved
in marketing.

Spotlight on Real People at JobDirect

Summary: Rachel Bell and Sara Sutton, two 21 year olds, believed that the Internet was
the answer to matching up student job seekers with employers. So Bell and Sutton put
their last year of college on hold and started JobDirect, an Internet-based service that is
now the largest database of entry-level student jobs on the Web (www.jobdirect.com).
Suggested Answers to Discussion Questions

1. What is JobDirect’s market?

JobDirect serves two markets, the consumer market and the business market. College
students who are looking for jobs use the services of JobDirect and so do businesses who
are searching for employees.

2. What benefits does the service provide to customers?

For college students the service is free. Students can enter their resume directly into the
database and they also have access to one of the largest databases of entry-level jobs on
the Web. Although businesses pay a fee to access the resume database, they can search
for resumes fitting specific criteria.

3. How does the chapter’s concept of people marketing fit here?

A resume is nothing more than a vehicle to market ones self. In a resume the product, in
this case the person, is described. It is very important that the resume be professionally
written and contain the appropriate information desired by firms in the area where
employment is being sought. Thus, the resume is similar to product packaging.
Consumers often examine a product’s package when they are purchasing a new product.
In the same way, employers examine resumes to help determine if an individual would be
a good candidate for a position in their organization.

4. If you were running this business, what advice might you give to Bell and Sutton
about how to get even more students to register their resumes in the database?

Bell and Sutton need to be more aggressive about recruiting students. The bus tour of
universities was successful, but now Bell and Sutton need to develop some new
promotional activities. Below are some suggested promotional activities:

a. Be a guest speaker on university campuses.

b. Provide promotional give-aways which include the firms name. T-shirts and drink
cup holders would be good promotional items.
c. Spend time networking and calling on prospective businesses.

d. Marketing’s Tools: The Marketing Mix

** Refer to Objective 2
** Use the video on Terra Chips
** Use Instructor’s Manual Mini-Project 1-B
** Use Marketing in Action: Real Choices at Florida International Museum
 ** Use Figure 1.1

Class Discussion
Begin this topic by referring to the opening exercise and the class discussion which
followed. You might also want to use question one in Marketing Practice: Applying What
You’ve Learned as part of a class discussion on the marketing mix.

Marketing Mix: A combination of the product itself, the price of the product, the place
where it is made available, and the activities that introduce it to consumers that creates a
desired response among a set of pre – defined consumers.
1). Product: Good, service, idea offered for exchange.
2). Price: The assignment of value to a product.

Class Discussion
What is value? Students will probably provide a variety of definitions, but basically
value is based on perception. Do consumer’s definitions value change for different
purchase situations? For example, would value be defined the same way for a purchase
of a pair of jeans and dinner at a fine restaurant? Discuss the popularity and growth of
value oriented retail formats like the Dollar Store where every item in the store costs only
$1 dollar.

3). Place: The availability of the product to the customer at the desired time and
location.

Class Discussion
Discuss the channel of distribution used for Levi Jeans. How has the Internet changed
channels of distribution?

4). Promotion: The coordination of efforts by a marketer to inform or persuade

consumers or organizations about goods, services or ideas.

Class Discussion
Many think that promotion is only advertising. Promotion includes the combination of
advertising, sales promotion, and personal selling. Discuss the variety of promotional
methods which might be used by Levi. If you are using the Computer Friendly Stuff
(CFS) case series, refer to the Marketing Plan (Appendix A) for CFS and examine the
promotional activities used by CFS.

2. How is Marketing Done?

** Refer to Objective 3

a. Marketing Planning: The first phase of marketing planning is analyzing

the organization’s current strengths and weaknesses. This analysis also
examines threats and opportunities the organization might face in the
marketplace.

b. Finding and Reaching a Target Market

Part of the marketing planning process is determining which customer
groups should be reached and with which product. There are several
strategies which can be used to find and reach the desired target market.
Some products, like sugar, fresh fruit, and toilet paper have mass market
appeal.

1). Mass Market: All possible customers in a market, regardless of the

differences in their specific needs and wants.
The mass market approach does not work for all goods. Consider a one-
size fits-all jacket. Does this jacket fit all or just “fit – most”? The success
of an organization’s marketing plan is its ability to find, reach, and satisfy
a market.
2). The Market Segment is a distinct group of customers within a larger
market who are similar to one another in some way and whose needs
differ from other customers in the larger market. For Levi, the market
segment of interest is aging Baby Boomers.
3). The Target Market is the market segment(s) on which an organization
focuses it’s marketing plan and toward which it directs its market efforts.
4). Target marketing involves 3 steps:
 Segmenting
 Targeting
 Positioning

Class Discussion
Discuss the market segment(s) targeted by firms like Levi, Kellogg, and Saturn. Discuss
the variables which were perhaps used to segment the market. How is the product
positioned relative to competitors?

3. When Did Marketing Begin? The Evolution of the Marketing

Concept.
** Refer to Objective 4
** Use Q #3 Marketing Practice: Applying What You’ve Learned
** Refer to Table 1.1
4. Why is Marketing Important?
** Use Objective 5

Class Discussion
Marketing is important to individuals, business and society. Refer to the opening
exercise. What role does marketing play in our daily lives.

a. Marketing creates utility, the usefulness or benefit received by consumers from a

product. Marketing activities create four types of utility:
1). Form Utility: The consumer benefit provided by organizations when they
change raw materials into finished products desired by customers.

2). Place Utility: The consumer benefit provided when organizations make
products available to consumers.

3). Time Utility: The consumer benefit provided by storing products until
they are needed by buyers.

4). Possession Utility: The consumer benefits provided by an organization

by allowing the consumer to own, use, and enjoy the product.

b. Marketing’s Role In the Firm

** Use Marketing Mini- Project: Learning by Doing

Marketers work with financial and accounting officers to determine which products are
financially profitable to produce, to set marketing budgets, and to determine prices.
Organizations function most efficiently when the marketing department interacts with the
other functional areas of the organization. For example, marketing must work with R/D
on the creation of new products and with manufacturing.

a. Marketing’s Role In Our Daily Lives: Opera To Oprah

Class Discussion
Refer students to the Introduction exercise (if used) for this chapter. How does
marketing daily impact out lives? You might also want to discuss with students how
popular culture and marketing myths impact our daily lives and the purchase decisions
we make.

1). Popular Culture: The music, movies, sports, books, celebrities, and other forms
of entertainment consumed by the mass market.
 2). Myths: Stories containing symbolic elements that express the shared emotions
and ideals of culture.

b. Marketing’s Role In Society

In business, just as in everyday life, conflicts often arise concerning ethical and moral
behavior.
1). Ethical behavior is good business

Class Discussion
Firms which practice ethical behavior are usually better off in the long run. For example,
when a firm decides to recall a product which is defective, and might even cause harm to
individuals, the firm will most surely lose money in the short term. However, the firm
hopefully gains the respect of customers and society.

2). Social and Ethical Criticisms of Marketing

a). Marketing creates artificial needs
b). Marketing teaches us to value people for what they own rather than who
they are.

Class Discussion
Have students comment on the two social and ethical and criticisms of marketing. Do
they agree or disagree with these criticisms?

Real People, Bad Choices?

Summary: To promote an on-line game, Segasoft creates a fictional violent cult called
the Cyber Diversion Movement. The firm set up Web sites that were deigned to look like
they were put up by members of the cult.

Suggested Answer to the Discussion Question

1. Is it appropriate to market a product that may encourage violence?

Hopefully many of your students will respond no to this question. Creating products
which do not encourage violence is part of the ethical behavior and social responsibility
of the firm. However, the US is still a free market economy where producers have the
right to manufacture and sell the products demanded and desired by consumers. Other
students may also comment that parents have a responsibility to monitor the video games
and Internet usage of their children. However, what happens when your child is spending
the night at a friends house and has the opportunity to play violent video games?
 Real People, Real Choices:
How it worked out at Levi – Strauss
The “How it worked out” section provides a good summary for chapter one. You
may want to begin by reviewing with students the facts surrounding the situation at Levi.
Then review the three options developed by Steve Goldstein. Ask students to comment on
which option they would choose. Are there any other options which should be
considered?

Summary: When Steve Goldstein saw sales figures decline, he realized that there was a
problem. The problem for Levi related to the issue of satisfying the needs of a changing
consumer market. Customers had to be given a reason to buy yet another pair of Levi
pants.
Which products to produce for which consumer groups was the issue which Levi
had to address. Listed below are the four issues which Levi had to consider.

 Aging Baby Boomers: This group grew up wearing Levi jeans. For some
members of this growth changes in body shape have made the traditional fit
Levi’s less figure flattering.

 Growth of the Casual Apparel Market: The growth and popularity of casual
dress in the workplace is an opportunity for Levi. Levi specifically developed
the Docker’s brand to meet the needs of this market.

 Closet full of Jeans: How do you convince a customer that she needs another
pair of jeans? One strategy used by Levi and others is to develop new style
features, such as a stone washed or loose fit and new colors, like brown, black,
and red.

 Growth of Fashion: Jeans had also seen a growth in popularity and

acceptance. Many restaurants and places of business consider “nice jeans” to
be acceptable. Changes in jean styles and consumer acceptance have lead to
this change.

Three options were developed by Goldstein and his marketing team:

Option 1: Make looser fitting jeans under the Dockers label.

Option 2: Forget it. – Do nothing
Option 3: Market a modified looser – fitting jean for the 18 – 34 year old.
Mr. Goldstein chose option 3. Levi’s introduced “Loose Fitting Jeans” and gave them the
numbers 550 and 560. This proved to be a successful strategy because it meet the needs
and wants of a very loyal group of customers. If Levi had not developed a pair of loose
fitting jeans for this segment one of their competitors would.
students:

Potential Discussion Questions:

** You might also want to include a discussion of the questions found on page 21 in the
book. Answers to these questions were presented in section 2.
** Information from the Real People, Real Surfers: Exploring the Web exercise could
also be used in a discussion of Levi jeans.

1. Why is option 3 the best choice?

2. Do you think Levi - Strauss is operating as a New Era firm?

 Chapter Review

Marketing Concepts: Testing Your Knowledge

1. Briefly explain what marketing is.

Though marketing can be described in many ways, the best definition is that marketing is
the process of planning and executing the conception, pricing promotion, and distribution
of ideas, goods, and services to create exchanges that satisfy individual and
organizational objectives.

2. What is the marketing concept? How is it different from the social marketing
concept?

The marketing concept is a management orientation that focuses on identifying and

satisfying consumer needs to ensure the organization’s long-term profitability objectives.

The marketing concept differs from the societal marketing concept in that today many
firms are moving toward a new interpretation of responsibility and orientation to the
consumer that focuses on satisfying consumer needs while also addressing the needs of
the larger society. The philosophy is an expansion of the marketing concept that focuses
on making a profit but also on enhancing benefits to communities and society in general.

3. How does marketing facilitate exchange?

Marketers facilitate exchange by creating marketing, communication, and information

system. Marketing systems make it easier for buyers and sellers to come together.
Information systems are used to collect and analyze data that help the organization find,
reach, and satisfy consumers. Communication systems provide the means for informing,
persuading, and influencing consumers.

4. Define the terms consumer goods, services, and industrial products.

Consumer goods are products which are purchased by individual consumers for personal
or family use. Some examples include food, health and beauty products, automobiles,
and computers.
Services are tangible products that we pay for and use, but we never own. Consider a
haircut. When you go to the stylist you receive a service, a haircut; however, you cannot
physically hold the service in your hand. You can collect hair trimmings of course, but
that is not the service which you received, rather it is a product which is produced as a
result of the service.
Industrial goods are goods bought by individuals or organizations for further processing
or for use in doing business. For example, an office may purchase some of the same
office supplies which you, an individual consumer, purchase at Office Depot. The
difference is that you are using these supplies for personal or family use and the
organization is using the supplies in the operations of the firm.

5. What are the elements of the marketing mix?

The marketing mix has been characterized as the marketers strategic tool box. Elements
found in this tool box include product, price, place (or channel of distribution), and
promotion.

6. What are target markets? How do marketers select and reach target markets?

A target market is the market segment(s) on which an organization focuses its marketing
plan and toward which it directs its marketing efforts. Marketers select and reach target
markets by first slicing up the “marketing pie” (segmenting the market), targeting specific
pieces of it (choosing a targeting strategy), and then developing specific products and
design tactics which meet the segment’s specific needs (positioning the product).

7. Trace the evolution of the marketing concept.

Early in this century, companies followed a production orientation in which they focused
on the most efficient ways to produce and distribute products. Beginning in the 1930’s
some firms adopted a sales orientation that encouraged sales people to push products
aggressively on consumers. In 1950’s organizations began to adopt a consumer
orientation that focused on customer satisfaction and that led to the widespread adoption
of the marketing concept. The future of the concept’s application seems to be in the
direction of quality improvement, concern for society’s welfare, appreciation of the
environment through stewardship, and a commitment to a long – term relationship with
the consumer. New Era marketing means a devotion to excellence in designing and
producing products that benefit the customer, plus, the firms employees, shareholders,
and communities.

8. What is utility? How does marketing create different forms of utility?

Utility is the usefulness or benefit received by consumers from a product. Marketing

creates several forms of utility: form utility – raw materials are changed into finished
products; place utility – the organization makes products available where consumers want
them; time utility – products are stored until they are needed by the consumer; and,
possession utility-the organization allows the consumer to own, use, and/or enjoy the
product.

9. How is marketing related to popular culture?

Marketing influences popular culture (such as movies, sports, music, etc.) by producing
products that are an expression of the popular culture and people’s ideas. Many popular
cultural myths come from marketing organizations such as McDonald’s, Betty Crocker,
and Ivory Snow. Our nation’s culture and the products produced by that culture are very
closely tied.

10. What are some of the criticisms of marketing?

Some of the criticisms of marketing include: 1) marketers create artificial needs; 2)

marketing teaches us to value people for what they own rather than who they are; 3)
marketers promise miracles.

Marketing Concepts: Discussing Choices and Issues

1. The marketing concept focuses on the ability of marketing to satisfy
customer needs. As a typical college student, how does marketing satisfy your
needs? What areas of your life are affected by marketing? What areas of
your life (if any) are not affected by marketing?

In answering this question the student should be encouraged to examine their life
personally and relate marketing to their daily activities and events. Areas that
should be mentioned in this discussion are consumer purchases (such as buying
food, clothes, supplies at the bookstore, and major purchases such as computers or
cars), advertising’s impact on their learning processes (such as learning about new
products, how to do things, and contemporary trends), interactions with groups
(such as learning about new products, how to do things, and contemporary
trends), interactions with groups (such as the role that reference groups plays in
their purchase processes and how others might be affected by marketing practice),
and career plans and aspirations (since most of these students will be business
student they should understand how to pursue job opportunities and market
themselves). There are obviously other areas that the students might mention
(such as the the international environment, the environment itself, and the legal
environment). Each area mentioned should be examined and justified. Most
students will find that there will be few (if any) activities that they pursue in their
daily lives that are not touched by marketing. One way to stimulate discussion in
this area is to relate your own (the instructor’s) personal daily experiences with
marketing.
2. Do you think students should study marketing even if they are not planning a
career in marketing or business? Explain your reasoning.

This question is one of judgement and could be defended in either direction.

Those students that have carefully read Chapter One will understand that
knowledge of marketing (just like knowledge of consumer activities) will aid the
individual in making decisions in their daily lives. From the standpoint of
business, knowledge of marketing is essential if the business person is to fully
appreciate the various functions (accounting, finance, computer science,
manufacturing, information processing, economics, and management) and be able
to integrate them into and overall business plan or strategy. It has often been said
that “nothing happens until someone sells something.” This phrase might be used
to stimulate the students thinking in the above area. The answer to this question is
not as important as is the justification.

3. In this chapter a number of criticisms of marketing were discussed. Have

you heard these criticisms? What other criticisms of marketing have you
heard? Do you agree or disagree with these criticisms and why?

The criticisms cited in the text were: 1) Marketers create artificial needs; 2)
Marketing teaches us to value people for what they own rather that who they are;
and, 3) Marketers promise miracles.

Students will probably not have heard the above criticisms in those exact words
but they will most certainly have heard criticisms of marketing and marketers.
This would be an interesting side discussion---are the primary criticisms by
consumers with marketing (as a field, function, or practice) or are criticisms more
likely associated with marketers themselves (individuals, retailers, wholesalers, or
manufacturers)? The answer to this question might indicate what the true
consumer’s criticisms might be. For instance, if a person feels that they have
been cheated or deceived, what is the source of that fraud or deception? Is it the
field or marketing or the marketer?

Other criticisms that are commonly cited that might be discussed are that
marketing is deceptive (promises are false), marketers really don’t care about your
needs or solving your problems, marketers only care about money, marketers will
say anything to make a sale, marketers don’t care about the environment,
marketers show too much sex and sexual innuendo, and marketers don’t care
about social reform or the welfare of society.

Be sure to ask students to generalize their specific complaints about marketing so

they can be discussed in a broader context. Once the students have voiced their
complaints, press them for solutions.
4. In this chapter we talked about how marketing communicates myths. What
exactly is a myth? What are popular myths depicted in marketing? Does
marketing create some of these myths?

Myths are stories containing symbolic elements that express the shared emotions and
ideals of culture. At McDonald’s the basic struggles of good versus evil are played
out in the fantasy world of advertising when Ronald McDonald confounds the
Hamburgler. Jimmy Buffett created a fantasy tropical paradise in his hit song
Margaritaville. In the case of McDonald,s marketing has helped to create the myth.
However, fans of Jimmy Buffett helped to imortalized this fantasy place called
Margaritaville.

Real People, Real Surfers: Exploring the Web

This exercise could be used when discussing New Era firms and/or market segmentation.
Students should enjoy searching the Web for information on jeans. Encourage students to
identify other jean manufacturers on the Web. Responses to questions 3, 4 , and 5 might
be very interesting to use for class discussion.
 Marketing In Action: Real Choices at Florida International Museum

Summary: Florida International Museum had suffered several disastrous years which
had resulted in a $10 million debt. Management reorganization occurred and a new in-
house marketing team led by Wayne Altherholt was established. Atherholt knew that
marketing was not just for laundry detergents and that marketing planning needed to take
place in order for the museum to be financially successful.

Suggested Answers to Case Questions

1. What is the problem facing Florida International Museum?

There are many problems which students might discuss, but the primary problem
is the need for a marketing plan.

2. What factors are causing the problem?

The following factors are important to understanding the above problem.

a. The museum is $10 million in debt and needs to make a profit.

b. Putting on an exhibit, like Titanic would be very expensive.
c. In the past local hotels and travel agents had been ignored. These
organizations should have been used to help market the museum.
d. The museum suffered from a lack of awareness in the community.
e. The atmosphere of the museum was not comfortable or relaxed.
f. The outside of the building looked liked a department store.
g. Nothing was done to encourage repeat visits to the museum.

3. What are the alternatives?

a. The museum could decide to have the Titanic exhibit in hopes this exhibit
would help to increase museum traffic.
b. Attempt to develop relationships with local hotels and travel agencies.
c. Give the interior and the exterior of the building a facelift.
d. Develop a web site for the museum.
e. Develop a season pass program for museum patrons.
f. Create new signage for the museum.

4. What are your recommendations for solving the problem?

Students may have developed other alternatives and recommendations will be tied to
those alternatives. Florida International Museum should consider all of the above
alternatives in the development of a marketing plan. Try to help student’s understand that
implementing only one of the above alternatives would only represent a “short-term fix”
and would not solve the big problem facing the museum.

5. What are some ways to implement your recommendations?

Wayne Atherholt should begin by examining each element of the marketing mix (product,
price, place, and promotion). Some amount of research may be necessary to determine
what customers and potential customers actually desire. After the marketing plan has
been developed and approved, Wayne needs to prioritize the marketing tactics and decide
which actions need to be taken first.

Yes. New Era firms are devoted to excellence in designing and producing products that
benefit the customer and society. Not only did Levi design a new line of jeans for the 18-
34 year old group, but they also practiced social marketing by using natural dyes which
were less harmful to the environment. Finally, by meeting the needs of an important
group of consumers, Levi was practicing relationship marketing. In other words, Levi
did not abandon their loyal customers just because their waist lines began to expand.
Mini-Project 1-A
Examining a New Era Organization
Purpose: To learn about the ways in which New Era organizations seek and earn both
economic and social profit.

1. With two or three others in your class, first identify one or two firms which may
be classified as having a New Era Orientation. If possible, find firms which are
located in your area. You may find the following useful in identifying such firms:

 Newspaper articles on firms that have been recognized for their service to
the community
 Recommendations from one or more of your instructors for firms which
qualify as New Era organizations
 Firms which have been Baldridge Award winners
 Library resources such as corporate annual reports
 Recommendations of business leaders in your community
 Information about businesses provided at internet sites

2. Learn as much as you can about one particular firm. If possible visit the firm and
talk with the firm’s employees. Interview other business people to find out what
they think about the firm.

3. Prepare a report which includes the following:

a. Describe the firm’s business and its marketing management
structure.f
b. Tell about the firm’s commitment to quality.
c. Describe the ways the firm practices environmental stewardship?
d. Explain the ways the form works to earn social profit?
e. Describe efforts the firm has made to promote consumers’ health,
safety, and social well-being?
f. How does the firm rate on its efforts to encourage cultural diversity
and ethical business practices?
g. Your recommendations for ways in which the firm could make
improvements in its New Era focus.

4. Present your findings to your class.

Mini-Project 1-B
The 4 Ps for Different Organizations

Purpose: To better understand how different types of organizations implement product,

price, place, and promotion.

The American Marketing Association has formulated the following as its definition of
marketing:

“The process of planning and executing the conception, pricing,

promotion and distribution of ideas, goods, and services to create
exchanges that satisfy individual and organizational objectives.”

For each of the organizations and other marketing opportunities listed, identify the
following:

a. The product which is marketed

b. Individual or organizational consumer of the product

c. The need satisfied by the product

d. The price or value exchanged in return for the product

e. The channels of distribution used to make the product available to the customer

f. The promotional activities used by the marketer to inform or persuade

customers
Opportunity Product Customer Consumer Need Price/value exchanged Distribution channels Promotional activities

1. A candidate for governor

2. A new up-and-coming
country and western singer

3. A new prescription
medicine which will cure
teenage acne in a matter of
a few weeks.

4. A local church,
synagogue or other place of
worship

5. A new process which

turns radioactive waste into
glass pellets which can be
safely stored indefinitely.

6. A campaign to get people

to wear seat belts

7. A new line of sexy

swimwear.
8. Swish, a new non-cola
soft drink.

9. The Peace Corps

10. The American Red

Cross’s blood drives

11. Your college teams’

basketball games

12. The medical practice of

a group of family
physicians
24