1. Part 1 STRATEGIC MARKETING AND ITS ENVIRONMENT

2. 1: Customer-Driven Strategic Marketing
2: Planning, Implementing, and Evaluating Marketing Strategies
3:The Marketing Environment, Social Responsibility, and Ethics

3. Chapter 1 Customer-Driven Strategic Marketing
Professor Jason C. H. Chen, Ph.D.
School of Business Administration
Gonzaga University
Spokane, WA 99258

4. Marketing Applications

5. Marketing Applications
#2. Identify possible target markets for the following products:
a. Kellogg’s Corn Flakes
b. Wilson tennis rackets
c. Disney World
d. Diet Pepsi

6. #2. (cont.) a. Kellogg’s Corn Flakes b. Wilson tennis rackets
children or college students
b. Wilson tennis rackets
athletes or active seniors
c. Disney World
families with young children (parents are the buyers but children contribute to the decision-making process),
families trying to organize an event like a reunion or anniversary party, honeymooners
d. Diet Pepsi
people concerned about their weight such as athletes or dieters

7. Marketing Applications
#3 Discuss the variables of the marketing mix (product, price, promotion, and distribution) as they might relate to each of the following:
Product
Price
Promotion
Distribution
A trucking company
A men’s clothing store
A skating rink
A campus bookstore

8. A trucking company A men’s clothing store A skating rink
Product
Price
Promotion
Distribution
A trucking company
A men’s clothing store
Clothes; customer service
Value (is the product worth the price?)
Directly to consumers
Location and proximity to shopping areas; online; catalog
A skating rink
Skating experience; rentals
Consider the needs of target market
Location in city; customer service
A campus bookstore
Competitive with other shipping options including air freight
The service of shipping
Business to business
Locations nationwide
Books; supplies; clothing
On campus; targeted to students and staff
In-store; Alternative pick-up methods
Competitive with online and used prices

9. Internet Exercise

10. Internet Exercise – AMA (p.23)
The American Marketing Association
The American Marketing Association (AMA) is the marketing discipline’s primary professional organization. In addition to sponsoring academic research, publishing marketing literature, and organizing meetings of local businesspeople with student members, it helps individual members to find employment in member firms. Visit the AMA website at

11. 1. What type of information is available on the AMA website to assist students in planning their careers and finding jobs?
According to the AMA website, AMA provides collegiate members with an access to all member-only content on MarketingPower.com, including the AMA College 2 Career Resource Center that provides students and young professionals with the resources (webcasts, podcasts, articles, whitepapers, virtual networking etc.) that are critical in making a successful transition from life as a college student to life as a productive marketing professional.
In addition, their career management resources assist marketing graduates entering the workforce or searching for internships. Apart from this one can find AMA’s popular job board, career advice in their “Ask the Expert” series, and skill boosting activities at their Marketing Boot Camps.

12. 2. If you joined a student chapter of the AMA, what benefits would you receive?
According to the AMA website, a student chapter will help students gain valuable experience managing finances, people, projects and deadlines - perfect leadership skills to highlight on their resume.
Collegiate chapters focus on professional development, community service and fundraising as well hosting activities like Marketing Week, with marketing speakers, etiquette dinners, open houses and more.

13. 3. What marketing-mix variable does the AMA’s Internet marketing effort exemplify?
The AMA’s internet marketing focuses on
__________.
It provides a list of member benefits and assists potential members in finding local chapters and other resources.
The other parts of the marketing mix (product, price, and distribution) are more difficult to find on the site.
promotion

14. Video Case

15. Video Case 1.1: Cruising to Success: The Tale of New Belgium Brewing
Summary
This case illustrates how New Belgium Brewing’s market orientation has helped the company grow from a small business to America’s third largest brewery. Since its founding, New Belgium has emphasized the importance of meeting the needs of its many stakeholder groups, and that philosophy continues to guide the company’s marketing activities. While students may be familiar with the company’s corporate social responsibility activities, it is important for them to realize that those activities are part of the company’s marketing strategy and thus its profitability.

16. 1. How has New Belgium implemented the marketing concept?
According to the marketing concept, an organization should try to provide products that satisfy customers’ needs through a coordinated set of activities that also allow the organization to achieve its goals. New Belgium considers its customers and other stakeholders at every level of its marketing activities, which has led to the company’s popularity and success. Students may cite examples related to each part of the marketing mix, so make sure they focus on how the marketing mix contributes to customer satisfaction and the marketing concept.

17. 1 (cont.)
To ensure customer satisfaction, New Belgium focuses on creating quality products. The company engages in market research when creating its beers. It continually creates new products to keep customers engaged and excited about the brand. Even the company’s focus on sustainability reflects what is important to their customers. However, New Belgium’s corporate social responsibility activities are not just philanthropic—they are strategic. Because New Belgium beers provide more value, customers are willing to pay premium prices, which leads to higher profits for the company and its impressive 15 percent growth rate.
Philanthropic - Generous, bighearted

18. 2. What has Kim Jordan done to create success at New Belgium?
Kim Jordan created a unique marketing mix for New Belgium. Under her direction, the company crafted quality beers (product), placed them on shelves and in bars (distribution), created a unique indie brand (promotion), and increased their profit by providing more value and charging a higher price.
In addition, Jordan’s vision for New Belgium’s corporate culture creates value for all stakeholder groups, including employees, customers, the environment, and the community and fosters loyalty to the New Belgium brand

19. 3. How does New Belgium’s focus on sustainability as a core value contribute to its corporate culture and success?
Sustainability has been a major part of the company’s vision since its founding. For this reason, NBB strives to incorporate environmental responsibility directly into its business strategies. Sustainability is important to several of New Belgium’s stakeholder groups, which increases customer and employee loyalty.
Because of this, the company’s environmental philosophy creates a competitive advantage. Environmentally conscious consumers are more likely to do business with a company that incorporates green practices into its business activities. Sustainable practices also increase consumers’ perceptions of the value of New Belgium’s prices, which results in higher prices and better financial returns for the company.