Part 1
STRATEGIC MARKETING
AND ITS ENVIRONMENT
Dr. Chen, Principle of Marketing
1: Customer-Driven Strategic
Marketing
2: Planning, Implementing, and
Evaluating Marketing
Strategies
3:The Marketing Environment,
Social Responsibility, and Ethics
Dr. Chen, Principle of Marketing
Chapter 1
Customer-Driven Strategic
Marketing
Professor Jason C. H. Chen, Ph.D.
School of Business Administration
Gonzaga University
Spokane, WA 99258
[email protected]
Dr. Chen, Principle of Marketing
Marketing Applications
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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
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 #2. (cont.)
 a.
Kellogg’s Corn Flakes
• 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
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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
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Product
A trucking
company
The service
of shipping
Price
Competitive
with other
shipping options
including air
freight
Promotion
Distribution
Business to
business
Locations
nationwide
A men’s
clothing
store
A skating
rink
Clothes;
Value (is the
customer service product worth
the price?)
Directly to
consumers
Location and
proximity to
shopping areas;
online; catalog
Skating
experience;
rentals
Consider the
needs of target
market
Directly to
consumers
Location in city;
customer service
A campus
bookstore
Books;
supplies;
clothing
On campus;
Competitive
with online and targeted to
students and
used prices
staff
Dr. Chen, Principle of Marketing
In-store;
Alternative
pick-up
methods
8
Internet Exercise
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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 www.marketingpower.com.
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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.
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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.
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3. What marketing-mix variable does the AMA’s
Internet marketing effort exemplify?

 The AMA’s internet marketing focuses on
__________.
promotion
 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.
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Video Case
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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.
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 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.
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 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.
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 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
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 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.
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