Note to InstructorThis Web link is to Procter & Gamble is an interesting site to explore with the students. Click on the Family of products. Discussion QuestionWhich product categories might be growing markets, slower markets, and emerging markets. This site can be explored again when viewing Figure 2.2—the BCG grid.
Note to InstructorStars are high-growth, high-share businesses or products requiring heavy investment to finance rapid growth. They will eventually turn into cash cows.Cash cows are low-growth, high-share businesses or products that are established and successful SBUs requiring less investment to maintain market share.Question marks are low-share business units in high-growth markets requiring a lot of cash to hold their share.Dogs are low-growth, low-share businesses and products that may generate enough cash to maintain themselves but do not promise to be large sources of cash.
Note to InstructorConsumers stand in the center. The goal is to create value for customers and build profitable customer relationships. Next comes marketing strategy—the marketing logic by which the company hopes to create this customer value and achieve these profitable relationships. The company decides which customers it will serve (segmentation and targeting) and how (differentiation and positioning). It identifies the total market, then divides it into smaller segments, selects the most promising segments, and focuses on serving and satisfying the customers in these segments. Guided by marketing strategy, the company designs an integrated marketing mix made up of factors under its control—product, price, place, and promotion (the four Ps). To find the best marketing strategy and mix, the company engages in marketing analysis, planning, implementation, and control. Through these activities, the company watches and adapts to the actors and forces in the marketing environment.
Note to InstructorIt is interesting to ask how to make the 4Ps more customer centric? This leads to a redefining of the 4Ps to the 4Cs as follows:Product—Customer solutionPrice—Customer costPlace—ConveniencePromotion—Communication
Note to InstructorIn slideshow view, click on movie icon to launch Tom’s Shoes video snippet. See accompanying DVD for full video segment
Note to InstructorThis graphic highlights a car targeted to India’s growing middle class. Discussion QuestionsWhat changes might there be in U.S. income over the next year? What are positioned as “value cars.”The students might quote current economic declines or rises. The “value cars” will probably include some of the smaller cars by Kia, Ford, Honda, and Toyota.
Note to InstructorDiscussion QuestionAsk students what changes they have seen in technology in the past four years including medical products, communications, and media.They will most likely talk about the use of artificial organs and stem cell research, the growth of PDA’s like the iPod, and the use of new media products including DVR or TiVo.
Note to InstructorThese can be explained in more depth:Exploratory research—objective is to gather preliminary information that will help define the problem and suggest hypotheses.Descriptive research—describes things.Causal research—tests hypothesis about cause and effect relationships.Discussion QuestionConsider a local business near campus. . .How would they conduct exploratory research? What might they want to find out in descriptive research?What relationships might they explore in causal research?Students will have the following responses for the above questions: exploratory research (focus groups, interviews); descriptive research (who, when, how, why);causal research (price/demand, environment/purchase rate).
Note to InstructorDiscussion QuestionAsk students the disadvantages with open-ended questions.They might realize from their own experience that they get tired filling out many open ended questions and that they often lead to hard-to-code information.
Note to InstructorIt is interesting to talk about the buyer’s black box and one of the largest challenges in marketing is to understand what happens in this black box. Students will enjoy this video by Derren Brown. It is unclear how he obtains his results and how scientific this is, but it will certainly have students realize the mystery of the consumer’s brain.
Note to InstructorDiscussion QuestionWhat groups are you a member of and what are your aspirational groups. How does this influence you as a consumers?
Note to InstructorIt is interesting to talk about brand personalities and ask students the personality of several brands:A brand personality is the specific mix of human traits that may be attributed to a particular brand. One researcher identified five brand personality traits1. Sincerity (down-to-earth, honest, wholesome, and cheerful)2. Excitement (daring, spirited, imaginative, and up-to-date)3. Competence (reliable, intelligent, and successful)4. Sophistication (upper class and charming)5. Ruggedness (outdoorsy and tough)
Note to InstructorDiscussion QuestionIf you watched television last night, what ads do you remember seeing?Probe to find out why they remember certain ads—was it that they broke through the clutter, that they saw them many times, or that they are in the market for that certain product?
Note to InstructorThis Web link brings you to PriceGrabber—an online comparison shopping site. What is interesting on this site is on the left hand side, you can search by features. These features help a consumer know how to evaluate a product. For instance, this example is laptop computers and one can search by processing speed, processor type, screen size, etc.
Note to InstructorThe IKEA example in the text is excellent on understanding the importance of supplier development:IKEA challenge is finding enough of the right kinds of suppliers to help design and produce the billions of dollars of affordable goods.IKEA currently relies on about 1,800 suppliers in more than 50 countries to stock its shelves.If the giant retailer continues at its current growth rate, it will need to double its supply network by 2010.IKEA doesn’t just buy from its suppliers. It involves them deeply in the process of designing and making stylish but affordable furniture.
Note to InstructorThis Web link goes to the American Enterprise Institute’s economic outlook newsletter. There are other economic indicators that might be interesting to draw to the students attention including GDP and CPI.