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Marketing Excellence >>The Ritz-Carlton
Few brands attain such a high standard of customer service as
the luxury hotel, The Ritz-Carlton. The Ritz-Carlton
dates back to the early 20th century and the original Ritz-
Carlton Boston, which revolutionized the way U.S.
travelers viewed and experienced customer service and luxury
in a hotel. The Ritz-Carlton Boston was the first of its
kind to provide guests with a private bath in each guest room,
fresh flowers throughout the hotel, and an entire staff
dressed in formal white tie, black tie, or morning coat attire.
In 1983, hotelier Horst Schulze and a four-person development
team acquired the rights to the Ritz-Carlton name and
created the Ritz-Carlton concept as it is known today: a
company-wide concentration on both the personal and the
functional side of service. The five-star hotel provides
impeccable facilities but also takes customer service extremely
seriously. Its credo is, “We are Ladies and Gentlemen serving
Ladies and Gentlemen.” According to the company’s
Web site, The Ritz-Carlton “pledge(s) to provide the finest

personal service and facilities for our guests who will
always enjoy a warm, relaxed, yet refined ambience.”
The Ritz-Carlton fulfills this promise by providing impeccable
training for its employees and executing its Three
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Steps of Service and 12 Service Values. The Three Steps of
Service state that employees must use a warm and
sincere greeting always using the guest’s name, anticipate and
fulfill each guest’s needs, and give a warm good-bye
again using the guest’s name. Every manager carries a
laminated card with the 12 Service Values, which include
bullets such as number 3: “I am empowered to create unique,
memorable and personal experiences for our guests,”
and number 10: “I am proud of my professional appearance,
language and behavior.” Simon Cooper, the company
president and chief operating officer, explained, “It’s all about
people. Nobody has an emotional experience with a
thing. We’re appealing to emotions.” The Ritz-Carlton’s 38,000
employees at 70 hotels in 24 countries go out of their
way to create unique and memorable experiences for their
guests.
While The Ritz-Carlton is known for training its employees on
exceptional customer service, the hotel also
reinforces its mission and values to its employees on a daily
basis. Each day, managers gather their employees for a
15-minute “line up.” During this time, managers touch base

with their employees, resolve any impending problems,
and spend the remaining time reading and discussing what The
Ritz-Carlton calls “wow stories.”
The same “wow story” of the day is read to every single
employee around the world. These true stories recognize an
individual employee for his or her outstanding customer service
and also highlight one of the 12 Service Values. For
example, one family staying at the Ritz-Carlton, Bali, needed a
particular type of egg and milk for their son who
suffered from food allergies. Employees could not find the
appropriate items in town, but the executive chef at the
hotel remembered a store in Singapore that sold them. He
contacted his mother-in-law, who purchased the items and
personally flew them over 1,000 miles to Bali for the family.
This example showcased Service Value 6: “I own and
immediately resolve guests’ problems.”
In another instance, a waiter overheard a man telling his wife,
who used a wheelchair, that it was too bad he couldn’t
get her down to the beach. The waiter told the maintenance
crew, and by the next day they had constructed a wooden
walkway down to the beach and pitched a tent at the far end
where the couple had dinner. According to Cooper, the
daily wow story is “the best way to communicate what we
expect from our ladies and gentlemen around the world.
Every story reinforces the actions we are looking for and
demonstrates how each and every person in our
organization contributes to our service values.” As part of
company policy, each employee is entitled to spend up to
$2,000 on a guest to help deliver an anticipated need or desire.
The hotel measures the success of its customer service efforts
through Gallup phone interviews, which ask both
functional and emotional questions. Functional questions ask
“How was the meal? Was your bedroom clean?” while

emotional questions uncover a sense of the customer’s well-
being. The Ritz-Carlton uses these findings as well as
day-to-day experiences to continually enhance and improve the
experience for its guests.
In less than three decades, The Ritz-Carlton has grown from 4
locations to over 70 and earned two Malcolm Baldrige
Quality Awards—the only company ever to win the prestigious
award twice.
Questions
1.
How does The Ritz-Carlton match up to competitive hotels?
What are the key differences?
2.
Discuss the importance of the “wow stories” in customer service
for a luxury hotel like The Ritz-Carlton.
Sources: Robert Reiss, “How Ritz-Carlton Stays at Top,”
Forbes, October 30, 2009; Carmine Gallo, “Employee
Motivation the Ritz-Carlton
Way,” BusinessWeek, February 29, 2008; Carmine Gallo, “How
Ritz-Carlton Maintains Its Mystique,” BusinessWeek, February
13, 2007;
Jennifer Robison, “How The Ritz-Carlton Manages the
Mystique,” Gallup Management Journal, December 11, 2008;
The Ritz Carlton,

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www.RitzCarlton.com.
Marketing Excellence >>Mayo Clinic
Mayo Clinic is the first and largest integrated not-for-profit
medical group practice in the world. William and Charles
Mayo founded the clinic over 100 years ago as a small
outpatient facility and pioneered the concept of a medical
group practice—a model that is widely used today.
Mayo Clinic provides exceptional medical care and leads the
nation in many specialties such as cancer, heart disease,
respiratory disorders, and urology. It consistently ranks at the
top of U.S. News & World Report’s Best Hospitals list
and enjoys 85 percent brand recognition among U.S. adults. It
has reached this level of success by taking a different
approach from most clinics and hospitals and putting a
relentless focus on the patient’s experience. The clinic’s two
interrelated core values trace back to its founders and are at the
heart of all the organization does: placing the
patient’s interests above all others and practicing teamwork.
Every aspect of the patient’s experience is considered at Mayo
Clinic’s three campuses in Rochester (MN),
Scottsdale (AZ), and Jacksonville (FL). The moment a patient
walks into one of Mayo Clinic’s facilities, he or she
feels the difference. New patients are welcomed by professional
greeters who walk them through the administrative
processes. Returning patients are greeted by name and with a
warm smile. The buildings have been designed so that,
in the words of the architect of one, “patients feel a little better
before they see their doctors.” The 21-story Gonda

Building in Rochester has spectacular wide-open spaces with
the capability of adding 10 more floors. Fine art hangs
on the walls, and doctor’s offices are designed to feel cozy and
comforting rather than sterile and impersonal.
http://www.ritzcarlton.com/
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The lobby of the Mayo Clinic hospital in Scottsdale has an
indoor waterfall and a wall of windows overlooking
mountains. In pediatric exam rooms, resuscitation equipment is
hidden behind a large cheery picture. Hospital rooms
feature microwave ovens and chairs that really do convert to
beds because, as one staff member explained, “People
don’t come to the hospital alone.” The newest emergency
medical helicopter was customized to incorporate high-
tech medical equipment and is one of the most advanced aircraft
in the world.
The other significant difference in serving patients is Mayo
Clinic’s concept of teamwork. A patient can come to
Mayo Clinic with or without a physician’s referral. At that time,
the patient’s team is assembled, which can include
the primary physician, surgeons, radiation oncologists,
radiologists, nurses, residents, or other specialists with the
appropriate skill, experience, and knowledge.
Teams of medical professionals work together to diagnose
patients’ medical problems, including debating test results
for hours to determine the most accurate diagnosis and best

treatments. Once a team consensus has been reached, the
leader meets with the patient and discusses his or her options.
Throughout the process, patients are encouraged to
take part in the discussion. If surgery is necessary, the
procedure is often scheduled to take place within 24 hours, a
dramatic difference from the long wait patients experience at
many hospitals. Mayo Clinic’s doctors understand that
those who seek their care want action as soon as possible.
Mayo’s doctors are put on salary instead of being paid by the
number of patients seen or tests ordered. As a result,
patients receive more individualized attention and care, and
physicians work together instead of against each other.
As one pediatrician at Mayo explained, “We’re very
comfortable with calling colleagues for what I call
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Applications
Marketing Debate
How Different Is Business-to-Business Marketing?
Many business-to-business marketing executives lament the

challenges of business-to-business marketing,
maintaining that many traditional marketing concepts and
principles do not apply. For a number of reasons, they
assert that selling products and services to a company is
fundamentally different from selling to individuals.
Others disagree, claiming marketing theory is still valid and
only requires some adaptation in marketing tactics.
Take a position: Business-to-business marketing requires a
special, unique set of marketing concepts and
principles versus Business-to-business marketing is really not
that different, and the basic marketing concepts and
principles apply.
Marketing Discussion
B-to-C & B-to-B Concepts
Consider some of the consumer behavior topics for business-to-
consumer (B-to-C) marketing from Chapter 6.
How might you apply them to business-to-business (B-to-B)
settings? For example, how might noncompensatory
models of choice work? Mental accounting?
Marketing Excellence >>Accenture
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Accenture began in 1942 as Administrative Accounting Group,

the consulting arm of accounting firm Arthur
Andersen. In 1989, it launched as a separate business unit
focused on IT consulting and bearing the name
Andersen Consulting. At that time, though it was earning $1
billion annually, Andersen Consulting had low brand
awareness among information technology consultancies and was
commonly mistaken for its accounting corporate
parent. To build its brand and separate itself from the
accounting firm, Andersen Consulting launched the first
large-scale advertising campaign in the professional services
area. By the end of the decade, it was the world’s
largest management and technology consulting organization.
In 2000, following arbitration against its former parent,
Andersen Consulting was granted its full independence
from Arthur Andersen—but it had to relinquish the Andersen
name. Andersen Consulting was given three months
to find a name that was able to be trademarked in 47 countries,
effective and inoffensive in over 200 languages,
and acceptable to employees and clients—and that corresponded
with an available URL. The effort that followed
was one of the largest—and most successful—rebranding
campaigns in corporate history.
As luck would have it, the company’s new name came from a
consultant at the company’s Oslo office, who
submitted “Accenture” as part of an internal name-generation
initiative dubbed “Brandstorming.” The consultant
coined the Accenture name because it rhymed with “adventure”
and connoted an “accent on the future.” The
name also retained the “Ac” of the original Andersen
Consulting name (echoing the Ac.com Web site), which
would help the firm retain some of its former brand equity. On
midnight, December 31, 2000, Andersen
Consulting officially adopted the Accenture name and launched
a global marketing campaign targeting senior

executives at Accenture’s clients and prospects, all Accenture
partners and employees, the media, leading industry
http://ac.com/
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analysts, potential recruits, and academia.
The results of the advertising, marketing, and communications
campaigns were quick and impressive. Overall,
Accenture’s brand equity increased 11 percent, and the number
of firms inquiring about its services increased 350
percent. Awareness of Accenture’s breadth and depth of
services achieved 96 percent of its previous level.
Globally, awareness of Accenture as a provider of management
and technology consulting services was 76
percent of levels for the former Andersen Consulting name.
These results enabled Accenture to successfully
complete a $1.7 billion IPO in July 2001.
In 2002, Accenture unveiled a new positioning to reflect its new
role as a partner to aid execution of strategy,
summarized succinctly by the tagline “Innovation Delivered.”
This tagline was supported by the statement, “From
innovation to execution, Accenture helps accelerate your
vision.” Accenture surveyed senior executives from
different industries and countries and confirmed that they saw
inability to execute and deliver on ideas as the
number one barrier to success.

Accenture saw its differentiator as the ability both to provide
innovative ideas—ideas grounded in business
processes as well as IT—and to execute them. Competitors such
as McKinsey were seen as highly specialized at
developing strategy, whereas other competitors such as IBM
were seen as highly skilled in technological
implementation. Accenture wanted to be seen as excelling at
both. As Ian Watmore, its UK chief, explained:
“Unless you can provide both transformational consulting and
outsourcing capability, you’re not going to win.
Clients expect both.”
In 2002, the business climate changed. After the dot-com crash
and the economic downturn, innovation was no
longer enough. Executives wanted bottom-line results. As part
of its new commitment to helping clients achieve
their business objectives, Accenture introduced a policy
whereby many of its contracts contained incentives that it
realized only if specific business targets were met. For instance,
a contract with British travel agent Thomas Cook
was structured such that Accenture’s bonus depended on five
metrics, including a cost-cutting one.
In late 2003, Accenture built upon the “Innovation Delivered”
theme and announced its new tagline, “High
Performance. Delivered,” along with a campaign that featured
golf superstar Tiger Woods as spokesperson. When
Accenture sought Woods out, the athlete was at the top of his
game—the world’s best golfer with an impeccable
image. What better symbol for high performance? Accenture’s
message communicated that it could help client
companies become “high-performing business leaders,” and the
Woods endorsement drove home the importance
of high performance.
Over the next six years, Accenture spent nearly $300 million in

ads that mostly featured Tiger Woods, alongside
slogans such as “We know what it takes to be a Tiger” and “Go
on. Be a Tiger.” The campaign capitalized on
Woods’s international appeal, ran all over the world, and
became the central focus of Accenture-sponsored events
such as the World Golf Championships and the Chicago
Marathon.
That all changed when the scandal surrounding Tiger Woods,
his extramarital affairs, and his indefinite absence
from golf hit the press in late 2009. Accenture dropped Woods
as a spokesperson, saying he was no longer a good
fit for its brand. Indeed, focus groups showed that consumers
were too distracted by the scandal to focus on
Accenture’s strategic message. Accenture quickly searched for a
new concept that not only resonated across the
world, translated appropriately into different cultures, but also
cut its ties with Woods.
The result came after the firm dusted off some previous
concepts, tested them with focus groups of business
professionals, and launched a $50 million campaign featuring
animals and the same slogan, “High Performance.
Delivered.” In one ad, an elephant is pictured surfing alongside
copy that reads, “Who says you can’t be big and
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nimble?” In a later ad, a lizard tries to catch a butterfly by
transforming its tongue into the design of a flower. The

copy stated, “If you innovate, they will come.”
Today, Accenture continues to excel as a global management
consulting, technology services, and outsourcing
company. Its clients include 99 of the Fortune Global 100 and
more than three-quarters of the Fortune Global
500. The company ended fiscal 2009 with revenues of $21.5
billion.
Questions
1.
What has Accenture done well to target its B-to-B audience?
2.
Has Accenture done the right thing by dropping Tiger Woods as
its spokesperson? Discuss the pros and cons of its
decision.
Sources: “Annual Reports,” Accenture.com; “Lessons Learned
from Top Firms’ Marketing Blunders,” Management Consultant
International, December 2003, p. 1; Sean Callahan, “Tiger Tees
Off in New Accenture Campaign,” BtoB Magazine, October 13,
2003, p. 3;
“Inside Accenture’s Biggest UK Client,” Management
Consultant International, October 2003, pp. 1–3; “Accenture’s
Results Highlight
Weakness of Consulting Market,” Management Consultant
International, October 2003, pp. 8–10; “Accenture Re-Branding
Wins UK
Plaudits,” Management Consultant International, October 2002,
p. 5; Mary Ellen Podmolik, “Accenture Turns to Tiger for
Global
Marketing Effort,” BtoB Magazine, October 25, 2004; Sean

Callahan, “Tiger Tees Off in New Accenture Campaign,” BtoB
Magazine,
October 13, 2003; Emily Steel, “After Ditching Tiger,
Accenture Tries New Game,” Wall Street Journal, January 14,
2010.
http://accenture.com/
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Marketing Excellence >>Red Bull
Red Bull’s integrated marketing communications mix has been
so successful that the company has created an
entirely new drink category—functional energy drinks—and has
become a multibillion-dollar brand among
competition from beverage kings like Coca-Cola and Pepsi. In
less than 20 years, Red Bull has become the energy
drink market leader by skillfully connecting with the global
youth. Dietrich Mateschitz founded Red Bull in Austria
and introduced the energy drink into Hungary, its first foreign
market, in 1992. Today, Red Bull sells 4 billion cans
of energy drinks each year in over 160 countries.
So how does Red Bull do it? The answer: differently than

others. For years, Red Bull offered just one product, Red
Bull Energy Drink, in one size—a slick silver 250 ml. (8.3 oz.)
can with a European look and feel. Red Bull’s
ingredients—amino acid taurine, B-complex vitamins, caffeine,
and carbohydrates—mean it’s highly caffeinated
and energizing, so fans have called it “liquid cocaine” and
“speed in a can.” Over the last decade, Red Bull has
introduced three additional products: Red Bull Sugarfree, Red
Bull Energy Shots, and Red Bull Cola—each slight
variations of the original energy drink.
Since its beginning, Red Bull has used little traditional
advertising and no print, billboards, banner ads, or Super
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Bowl spots. While the company runs minimal television
commercials, the animated spots and tagline “Red Bull
Gives You Wiiings” are meant to amuse its young audience and
connect in a nontraditional, nonpushy manner.
Red Bull builds buzz about the product through grassroots, viral
marketing tactics, starting with its “seeding
program” that microtargets trendy shops, clubs, bars, and stores.
As one Red Bull executive explained, “We go to
on-premise accounts first, because the product gets a lot of
visibility and attention. It goes faster to deal with
individual accounts, not big chains and their authorization
process.” Red Bull is easily accepted at clubs because “in
clubs, people are open to new things.”

Once Red Bull has gained some momentum in the bars, it next
moves into convenience stores located near colleges,
gyms, health-food stores, and supermarkets, prime locations for
its target audience of men and women aged 16 to
29. Red Bull has also been known to target college students
directly by providing them with free cases of Red Bull
and encouraging them to throw a party. Eventually, Red Bull
moves into restaurants and finally, into supermarkets.
Red Bull’s marketing efforts strive to build its brand image of
authenticity, originality, and community in several
ways. First, Red Bull targets opinion leaders by sampling its
product, a lot. Free Red Bull energy drinks are
available at sports competitions, in limos before award shows,
and at exclusive after-parties. Free samples are
passed out on college campuses and city streets, given to those
who look like they need a lift.
Next, Red Bull aligns itself with a wide variety of extreme
sports, athletes, teams, events, and artists (in music,
dance, and film). From motor sports to mountain biking,
snowboarding to surfing, dancing to extreme sailing, there
is no limit to the craziness of a Red Bull event or sponsorship.
A few have become notorious for taking originality
and extreme sporting to the limit, including the annual Flugtag.
At Flugtag, contestants build homemade flying
machines that must weigh less than 450 pounds, including the
pilot. Teams then launch their contraptions off a
specially designed Red Bull branded ramp, 30 feet above a body
of water. Crowds of up to 300,000 young
consumers cheer on as the contestants and their “planes” stay
true to the brand’s slogan: “Red Bull gives you
wings!”
Another annual event, the Red Bull Air Race, tests the limits of

sanity. Twelve of the world’s top aerobatic stunt
pilots compete in a 3.5 mile course through a low-level aerial
racetrack made up of air-filled Red Bull branded
pylons 33 feet apart and reaching 65 feet in height. In other
words, pilots fly planes with a 26-foot wingspan through
a gap of 33 feet at 230 mph. These Red Bull–branded planes
crash occasionally, but to date no fatalities have ever
occurred.
Red Bull’s Web site provides consumers with information about
how to find Red Bull events, videos of and
interviews with Red Bull–sponsored athletes, and clips of
amazing feats that will be tested next. For example, Bull
Stratos is a mission one man is undertaking to free-fall from
120,000 feet, or 23 miles high. The jump will be
attempted from the edge of space and, if successful, it will mark
the first time a human being has reached supersonic
speeds in a free fall.
Red Bull buys traditional advertising once the market is mature
and the company needs to reinforce the brand to its
consumers. As one Red Bull executive explained, “Media is not
a tool that we use to establish the market. It is a
critical part. It’s just later in the development.”
Red Bull’s “anti-marketing” IMC strategy has been extremely
successful connecting with its young consumers. It
falls directly in line with the company’s mission to be seen as
unique, original, and rebellious—just as its
Generation Y consumers want to be viewed.
Questions

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1.
What are Red Bull’s greatest strengths and risks as more
companies (like Coca-Cola, Pepsi, and Monster) enter the
energy drink category and gain market share?
2.
Should Red Bull do more traditional advertising? Why or why
not?
3.
Discuss the effectiveness of Red Bull’s sponsorships, for
example, Bull Stratos. Is this a good use of Red Bull’s
marketing budget? Where should the company draw the line?
Sources: Kevin Lane Keller, “Red Bull: Managing a High-
Growth Brand,” Best Practice Cases in Branding, 3rd ed. (Upper
Saddle River, NJ:
Prentice Hall, 2008); Peter Ha, “Red Bull Stratos: Man Will
Freefall from Earth’s Stratosphere,” Time, January 22, 2010;
Red Bull,
www.redbull.com.
Marketing Excellence >>Target
Like other discount retailers, Target sells a wide variety of
products, including clothing, jewelry, sporting goods,
household supplies, toys, electronics, and health and beauty
products. However, since its founding in 1962, Target

has focused on differentiating itself from the competition. This
became evident in the mid-1980s when Kmart
dominated the mass retail industry and Walmart was growing
rapidly. Kmart and Walmart’s marketing messages
communicated their low price promise, but their merchandise
was perceived as cheap and low-quality. Target sensed
a gap in the market for “cheap chic” retail and set out to
distinguish itself from the other big-box retailers.
Target planned to build an up-market cachet for its brand
without losing its relevance for price-conscious
consumers. It positioned itself as a high-fashion brand with
trendy styles and quality merchandise at affordable low
prices. To fulfill this brand promise, Target’s teams of
merchandisers travel the world looking for the next hot items.
Next, Target brings these trends to the shelves faster than its
competitors.
Many styles are sold exclusively at Target through partnerships
with world-renowned designers, such as Mossimo
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Giannulli, Jean Paul Gaultier, and Liz Lange in clothes; Anya
Hindmarch in handbags; Sigerson Morrison in shoes;
Michael Graves in home goods; and Pixi by Petra Strand in
beauty. They are either staples in Target stores or part of
the Go International line, a special design collection available
for only a few months. In 2006, Target introduced

U.S. consumers to the concept of “fast fashion,” already popular
in Europe, to help keep the product selection fresh,
which in turn led to more frequent shopper visits.
Target’s designer line collections are just one unique part of its
entire integrated marketing communications mix.
The company uses a variety of tactics to communicate its
“cheap chic” positioning, beginning with its slogan,
“Expect More, Pay Less.” In its stores, Target uses strategically
placed low shelves, halogen and track lighting,
cleaner fixtures, and wider aisles to avoid visual clutter.
Signage features contemporary imagery but is printed on
less expensive materials. Target even catches the eye of
consumers in the air by painting its signature red bull’s eye
on the roof of stores located near busy airports.
Target uses a wide range of traditional advertising such as
television ads, direct mailers, print ads, radio, and
circulars. Its messages feature hip young customers, a variety of
strong name-brand products, and a lighthearted
tone—all which have helped make Target’s bull’s eye logo well
recognized. Target also aligns itself with a variety of
events, sports, athletes, and museums through corporate
sponsorships. From Target Field, the home of the
Minnesota Twins in Minneapolis, to Target NASCAR and Indy
racing teams and contemporary athletes like
Olympic snowboarder Shaun White, sponsorships help Target
pinpoint specific consumers, interests, attitudes, and
demographics. Target also advertises on and sponsors major
awards shows such as the Oscars, Emmys, Grammys,
and the Golden Globes.
Target has a strong online presence and uses Target.com as a
critical component in its retail and
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With budgets, they can compare planned expenditures with
actual expenditures for a given period. Schedules
allow management to see when tasks were supposed to be
completed and when they actually were. Marketing
metrics track actual outcomes of marketing programs to see
whether the company is moving forward toward its
objectives.
Summary
1. The value delivery process includes choosing (or
identifying), providing (or delivering), and
communicating superior value. The value chain is a tool for
identifying key activities that create value and
costs in a specific business.
2. Strong companies develop superior capabilities in managing
core business processes such as new-product
realization, inventory management, and customer acquisition
and retention. Managing these core processes
effectively means creating a marketing network in which the
company works closely with all parties in the
production and distribution chain, from suppliers of raw
materials to retail distributors. Companies no

longer compete—marketing networks do.
3. According to one view, holistic marketing maximizes value
exploration by understanding the
relationships between the customer’s cognitive space, the
company’s competence space, and the
collaborator’s resource space; maximizes value creation by
identifying new customer benefits from the
customer’s cognitive space, utilizing core competencies from its
business domain, and selecting and
managing business partners from its collaborative networks; and
maximizes value delivery by becoming
proficient at customer relationship management, internal
resource management, and business partnership
management.
4. Market-oriented strategic planning is the managerial process
of developing and maintaining a viable fit
between the organization’s objectives, skills, and resources and
its changing market opportunities. The aim
of strategic planning is to shape the company’s businesses and
products so they yield target profits and
growth. Strategic planning takes place at four levels: corporate,
division, business unit, and product.
5. The corporate strategy establishes the framework within
which the divisions and business units prepare
their strategic plans. Setting a corporate strategy means defining
the corporate mission, establishing strategic
business units (SBUs), assigning resources to each, and
assessing growth opportunities.
6. Strategic planning for individual businesses includes defining
the business mission, analyzing external
opportunities and threats, analyzing internal strengths and
weaknesses, formulating goals, formulating
strategy, formulating supporting programs, implementing the
programs, and gathering feedback and
exercising control.
7. Each product level within a business unit must develop a

marketing plan for achieving its goals. The
marketing plan is one of the most important outputs of the
marketing process.
Applications
Marketing Debate
What Good Is a Mission Statement?
Mission statements are often the product of much deliberation
and discussion. At the same time, critics claim they
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sometimes lack “teeth” and specificity, or do not vary much
from firm to firm and make the same empty promises.
Take a position: Mission statements are critical to a successful
marketing organization versus Mission
statements rarely provide useful marketing value.
Marketing Discussion
Marketing Planning
Consider Porter’s value chain and the holistic marketing
orientation model. What implications do they have for
marketing planning? How would you structure a marketing plan
to incorporate some of their concepts?
Marketing Excellence >>Cisco

Cisco Systems is the worldwide leading supplier of networking
equipment for the Internet. The company sells
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hardware (routers and switches), software, and services that
make most of the Internet work. Cisco was founded in
1984 by a husband and wife team who worked in the computer
operations department at Stanford University. They
named the company cisco—with a lowercase c, short for San
Francisco, and developed a logo that resembled the
Golden Gate Bridge, which they frequently traveled.
Cisco went public in 1990 and the two founders left the
company shortly thereafter, due to conflicting interests
with the new president and CEO. Over the next decade, the
company grew exponentially, led by new-product
launches such as patented routers, switches, platforms, and
modems—which significantly contributed to the
backbone of the Internet. Cisco opened its first international
offices in London and France in 1991 and has opened
a number of new international offices since then. During the
1990s, Cisco acquired and successfully integrated 49
companies into its core business. As a result, the company’s
market capitalization grew faster than for any
company in history—from $1 billion to $300 billion between
1991 and 1999. In March 2000, Cisco became the
most valuable company in the world, with market capitalization
peaking at $582 billion or $82 per share.

By the end of the 20th century, although the company was
extremely successful, brand awareness was low—Cisco
was known to many for its stock price rather than for what it
actually did. Cisco developed partnerships with Sony,
Matsushita, and US West to co-brand its modems with the Cisco
logo in hopes of building its name recognition
and brand value. In addition, the company launched its first
television spots as part of a campaign entitled “Are
You Ready?” In the ads, children and adults from around the
world delivered facts about the power of the Internet
and challenged viewers to ponder, “Are You Ready?”
Surviving the Internet bust, the company reorganized in 2001
into 11 new technology groups and a marketing
organization, which planned to communicate the company’s
product line and competitive advantages better than it
had in the past. In 2003, Cisco introduced a new marketing
message, “This Is the Power of the Network. Now.”
The international campaign targeted corporate executives and
highlighted Cisco’s critical role in a complicated,
technological system by using a soft-sell approach. Television
commercials explained how Cisco’s systems change
people’s lives around the world and an eight-page print ad
spread didn’t mention Cisco’s name until the third page.
Marilyn Mersereau, Cisco’s vice president of corporate
marketing, explained, “Clever advertising involves the
reader in something that’s thought-provoking and provocative
and doesn’t slam the brand name into you from the
first page.”
The year 2003 brought new opportunities as Cisco entered the
consumer segment with the acquisition of Linksys,
a home and small-office network gear maker. By 2004, Cisco
offered several home entertainment solutions,
including wireless capabilities for music, printing, video, and

more. Since previous marketing strategies had
targeted corporate and IT decision makers, the company
launched a rebranding campaign in 2006, to increase
awareness among consumers and help increase the overall value
of Cisco’s brand. “The Human Network”
campaign tried to “humanize” the technology giant by
repositioning it as more than just a supplier of switches and
routers and communicating its critical role in connecting people
through technology. The initial results were
positive. Cisco’s revenues increased 41 percent from 2006 to
2008, led by sales increases in both home and
business use. By the end of 2008, Cisco’s revenue topped $39.5
billion and BusinessWeek ranked it the 18th
biggest global brand.
With its entrance into the consumer market, Cisco has had to
develop unique ways to connect with consumers.
One recent development is Cisco Connected Sports, a platform
that turns sports stadiums into digitally connected
interactive venues. The company already has transformed the
Dallas Cowboys, New York Yankees, Kansas City
Royals, Toronto Blue Jays, and Miami Dolphins stadiums into
“the ultimate fan experience” and plans to add
more teams to its portfolio. Fans can virtually meet the players
through Telepresence, a videoconferencing system.
Digital displays throughout the stadium allow fans to pull up
scores from other games, order food, and view local
traffic. In addition, HD flat-screen televisions throughout the
stadium ensure that fans never miss a play—even in
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int?from=56&to=58
the restroom.
Today, Cisco continues to acquire companies—including 40
between 2004 and 2009—that help it expand into
newer markets such as consumer electronics, business
collaboration software, and computer servers. These
acquisitions align with Cisco’s goal of increasing overall
Internet traffic, which ultimately drives demand for its
networking hardware products. However, by entering into these
new markets, Cisco has gained new competitors
such as Microsoft, IBM, and Hewlett-Packard. To compete
against them, it reaches out to both consumers and
businesses in its advertising efforts, including tapping into
social media such as Facebook, Twitter, and blogs.
Questions
1.
How is building a brand in a business-to-business context
different from doing so in the consumer market?
2.
Is Cisco’s plan to reach out to consumers a viable one? Why or
why not?
Sources: Marguerite Reardon, “Cisco Spends Millions on
Becoming Household Name.” CNET, October 5, 2006; Michelle
Kessler, “Tech
Giants Build Bridge to Consumers.” USA Today, March 13,
2006; Marla Matzer, “Cisco Faces the Masses.” Los Angeles
Times, August 20,
1998; David R. Baker, “New Ad Campaign for Cisco.” San

Francisco Chronicle, February 18, 2003; Bobby White,
“Expanding into
Consumer Electronics, Cisco Aims to Jazz Up Its Stodgy
Image,” Wall Street Journal, September 6, 2006, p. B1; Burt
Helm, “Best Global
Brands” BusinessWeek, September 18, 2008; Ashlee Vance,
“Cisco Buys Norwegian Firm for $3 Billion.” New York Times,
October 1, 2009;
Jennifer Leggio, “10 Fortune 500 Companies Doing Social
Media Right.” ZDNet, September 28, 2009.
Marketing Excellence >>Intel
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Intel makes the microprocessors found in 80 percent of the
world’s personal computers. Today, it is one of the
most valuable brands in the world, with revenues exceeding $37
billion. In the early days, however, Intel
microprocessors were known simply by their engineering
numbers, such as “80386” or “80486.” Since numbers
can’t be trademarked, competitors came out with their own
“486” chips and Intel had no way to distinguish itself.
Nor could consumers see Intel’s products, buried deep inside
their PCs. Thus, Intel had a hard time convincing
consumers to pay more for its high-performance products.
As a result, Intel created the quintessential ingredient-branding
marketing campaign and made history. It chose a
name for its latest microprocessor introduction that could be

trademarked, Pentium, and launched the “Intel
Inside” campaign to build brand awareness of its whole family
of microprocessors. This campaign helped move
the Intel brand name outside the PC and into the minds of
consumers. In order to execute the new brand strategy, it
was essential that the computer manufacturers who used Intel
processors support the program. Intel gave them
significant rebates when they included the Intel logo in their PC
ads or when they placed the “Intel Inside” sticker
on the outside of their PCs and laptops.
The company created several effective and identifiable
marketing campaigns in the late 1990s to become a
recognizable and well-liked ingredient brand name. The “Bunny
People” series featured Intel technicians dressed
in brightly colored contamination suits as they danced to disco
music inside a processor facility. Intel also used the
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famous Blue Man Group in its commercials for Pentium III and
Pentium IV.
In 2003, Intel launched Centrino, a platform that included a new
microprocessor, an extended battery, and wireless
capabilities. The company launched a multimillion-dollar media
effort around the new platform called “Unwired,”
which urged the wired world to “Unwire. Untangle. Unburden.
Uncompromise. Unstress.” “Unwired” helped the
company generate $2 billion in revenue during the first nine

months of the campaign.
As the PC industry slowed in the mid-2000s, Intel sought
opportunities in new growth areas such as home
entertainment and mobile devices. It launched two new
platforms: Viiv (rhymes with “five”) aimed at home
entertainment enthusiasts, and Centrino Duo mobile. In
addition, the company created a $2 billion global
marketing campaign to help reposition Intel from a brainy
microprocessor company to a “warm and fuzzy
company” that offered solutions for consumers as well. As part
of the campaign, Intel’s new slogan “Leap Ahead”
replaced the familiar “Intel Inside” campaign that had become
synonymous with the Intel brand, and a new logo
was created.

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