Principles of Marketing Seventh Canadian Edition

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1 INSTRUCTOR S MANUAL Harish Kapoor Acadia University Principles of Marketing Seventh Canadian Edition Philip Kotler Northwestern University Gary Armstrong University of North Carolina Peggy H. Cunningham Queen s University Toronto, a division of Pearson Canada Inc., Toronto, Ontario. Pearson Prentice Hall. All rights reserved. This work is protected by Canadian copyright laws and is provided solely for the use of instructors in teaching their courses and assessing student learning. Dissemination or sale of any part of this work (including on the Internet) will destroy the integrity of the work and is not permitted. The copyright holder grants permission to instructors who have adopted Principles of Marketing, Seventh Canadian Edition, by Kotler/Armstrong/Cunningham, to post this material online only if the use of the website is restricted by access codes to students in the instructor s class that is using the textbook and provided the reproduced material bears this copyright notice.

2 CONTENTS Introduction iv Part 1 Defining Marketing and the Marketing Process C1 Marketing: Managing Profitable Customer Relationships 1 C2 Company and Marketing Strategy: Partnering to Build Customer Relationships 29 C3 The Marketing Environment 61 C4 Marketing and Society: Social Responsibility and Marketing Ethics 89 Part 2 Understanding the Market Places and Consumers C5 Managing Marketing Information 124 C6 Consumer Markets and Consumer Buyer Behaviour 154 C7 Business Markets and Business Buyer Behaviour 186 Part 3 Designing a Customer-Driven Strategy and Marketing Mix C8 Segmentation, Targeting, and Positioning: Building the Right Relationships with the Right Customers 213 C9 Product, Services, and Branding Strategies 244 C10 New-Product Development and Life-Cycle Strategies 278 C11 Pricing 306 C12 Distribution Channels and Supply Chain Management 343 C13 Retailing and Wholesaling 378 C14 Integrated Marketing Communication Strategy 406 C15 Advertising, Sales Promotion, and Public Relations 438 C16 Personal Selling and Direct Marketing 470

3 Part 4 Extending Marketing C17 Marketing in the Digital Age 510 C18 The Global Marketplace 544 Additional Resources Appendix 1: Rocky Mountain Soap Company Comprehensive Case Teaching Notes 578 Appendix 2: CBC Video Cases Teaching Notes 587

4 INTRODUCTION HOW TO USE The Seventh Canadian Edition of Kotler/Armstrong/Cunningham s Principles of Marketing has a complete set of supplemental learning and teaching aids. The Instructor s Resource Manual plays a central role in organizing this package. This manual has been designed so the instructor can plan lectures, demonstrations, discussions, visual presentations, and written assignments in a coordinated and efficient manner. All 18 chapters of the textbook have been carefully reviewed in order to develop the most logical and helpful manual for you, the instructor. Primary features of the Instructor s Resource Manual are described below. LEARNING OBJECTIVES Each chapter of the textbook contains a list of important learning objectives. These Learning Objectives are also listed at the beginning of each chapter of the Instructor s Resource Manual. In addition, each Learning Objective (by number) is tied to the specific section(s) of the textbook (to which it pertains) in the Chapter Outline section of the Instructor s Resource Manual. You will find this to be helpful in ensuring that all primary learning objectives have been covered in the course of the chapter lecture. CHAPTER OVERVIEW Each chapter of the textbook is summarized in the Chapter Overview. This section provides the instructor with a condensed version of the information included in the chapter. This condensation of material is especially helpful in planning chapter sequence presentation and any desired chapter combinations. In addition, this section may help the instructor plan introductory lecture remarks. CHAPTER OUTLINE This section is the core of the Instructor s Resource Manual. This teaching outline is a thorough outline (specifically tied to the actual phrases and definitions used in the textbook) of the material included in the textbook chapters. This outline includes major and minor headings from the textbook. The instructor will notice special information blocks that appear periodically in the body of the outline. The purpose of the information block is to indicate to the instructor where key material appears in the textbook and when to use teaching aids. These information blocks may contain the following items of information: Key Terms (term is identified); Learning Objective (learning objective iv

5 is listed by number); Discussing the Concepts questions (discussion question is listed by number); Applying the Concepts questions (application concepts question is listed by number); Company Cases and Case Pilots (listed by number); reference to Power Point slides; chapter Figures (listed by number); chapter Tables (listed by number); and Real Marketing business applications (listed by number as found in the textbook). It is recommended that the instructor carefully review the Chapter Outline prior to preparing a chapter lecture. This review will help in coordinating the learning activities that are available with the textbook and in making advance discussion assignments to students. In addition, the instructor will find it useful to use the additional features found in the Instructor s Resource Manual when reviewing the Chapter Outline. Additional features (see descriptions below) include: (a) Barriers to Student Learning (common learning problems associated with each chapter), (b) Classroom Management Strategies (useful suggestions on classroom management and time sequencing for the chapters), (c) Student Projects (useful in-class and out-of-class assignments to reinforce learning concepts), (d) Interactive Assignments (includes discussion assignments for small groups, individuals, and think-pair-share exercises), (e) Professor on the Go! A one-totwo page summary of the chapter, (f) Applying the Concepts (these marketing applications found in the end of chapter materials are briefly answered and suggestions for implementation are given), (g) Discussing the Concepts (these marketing discussion and review exercises found in the end of chapter materials are briefly answered), (h) Company Cases (a synopsis, teaching objectives, insight into how to solve the case, analysis grids, answers to case questions, and teaching suggestions are provided for the instructor s convenience. BARRIERS TO EFFECTIVE LEARNING This section has been developed to aid the instructor in understanding which of the concepts or activities contained in the textbook chapters may be difficult learning assignments for the average student. By reviewing this section, the instructor may be able to direct preparation toward those topics that are perceived as being more difficult. In addition, this section also provides suggestions for dealing with difficult learning concepts. Please note that this section and the Student Project section are somewhat complementary in that the learning exercises suggested in the Student Project section may be used to deal with many of the difficult subjects identified in this section. CLASSROOM MANAGEMENT STRATEGIES This section is divided into two parts. First, a general guidance section describes how to prepare and start the individual chapter lecture. Suggestions for guest speakers, primary topics that must be covered, Internet challenges, and vocabulary usage may be made. This section can be coordinated with the Chapter Outline found in the Instructor s Resource Manual. v

6 The second section provides a timetable for individual chapter lectures. Note that many of the chapters can be broken into two parts (instructions are given as suggestions on how to accomplish the split). The timetable provided normally has four to six sections (time segments are suggested) which give guidance to the instructor on what topics to cover, how to coordinate these topics with text features (i.e., Figures, Tables, Real Marketing, Company Cases, Case Pilots, Digital Connections, and guest speakers) and in-class discussions. When this material is coordinated with Video Shorts, the instructor will have several powerful educational tools with which to construct classroom strategies for the successful accomplishment of learning objectives. Students today demand tight coordinated presentations and clear paths to discussion and involvement. This manual, and the strategies found in this section, will aid the instructor in involving and energizing the adult learner. PROFESSORS ON THE GO! New to the seventh edition of the Instructor s Manual is a section entitled Professors on the Go! This section was created with the busy professor in mind. It serves to bring key material upfront in the manual, where an instructor who is short on time can take a quick look and find key concepts, activities, and exercises that he/she can incorporate into the lecture, without having to page through all the material provided for each chapter. STUDENT PROJECTS This section suggests several projects that may be assigned to the students for a specific class or for several class periods (short- or long-term projects). The projects may be assigned to individuals or to small groups. The instructor may require that the material be analyzed in a written format or be used just as an active learning discussion motivator. All of the material contained in this section has been written in a student assignment format (each project assignment may be given to the students directly without rewording). Please consider coordinating this section with the Barriers to Effective Learning section for more beneficial discussion sessions. INTERACTIVE ASSIGNMENTS This unique section is broken into three parts: Small Group Assignments, Individual Assignments, and Think-Pair-Share. Each of these assignment areas (should you choose to use them) will increase the amount of active learning in your classroom and will aid with connections to the text. First, Small Group Assignments are tied to the opening vignette associated with each chapter. Students are asked to form themselves into small groups, read the vignette, and then, by sharing information and thoughts, answer a series vi

7 of questions related to the vignette. This information can then be discussed in the larger class. This is an excellent way to ensure that the opening vignette is read. Second, Individual Assignments is done in the same way as the Small Group Assignment except the questions are prepared for individuals rather than for small groups. Students can be given these questions at the end of one class period and be asked to respond in the following class discussion time period (or they may be part of a written assignment or examination). These questions might also be an excellent way for students to earn extra credit. Third, Think-Pair-Share is an excellent and simple active learning technique in which the students practice sharing information and then responding to class discussion. It will ensure that all students read class material before hand. In this way, class time can be spent discussing and applying instead of reading or lecturing this is at the heart of active learning. Notice the instructions provided on how to do Think-Pair-Share. All questions do not have to be covered. However, by being selective, student understanding and comprehension can be dramatically enhanced. All of the above areas have been classroom tested by this author to ensure applicability and usefulness in the classroom. These sections have been written so they may be given directly to the student without requiring the instructor to rewrite them. Also, please modify these assignments to fit your individual needs or preferences. Have fun with these assignments, my students do. FOCUS ON TECHNOLOGY Given the increasing importance of the role technology plays, each chapter has an exercise that discusses the role of technology in marketing. The intent here is to introduce students to the various aspects of technology and instructors can incorporate student assignments to this effect. FOCUS ON TECHNOLOGY Another new feature in the seventh edition of this text is a chapter-end exercises that emphasis the importance of ethical decision making in marketing. The instructors can include some of these assignments in their classes to enhance student awareness of the opportunities and challenges that marketers face in this regard. DISCUSSING THE CONCEPTS Discussion questions and associated comments appear in this section. The questions appear in the textbook (assignments can be made from text book chapters), however, the vii

8 comments only appear in the Instructor s Resource Manual. Note that proper placement of the Discussing the Concepts question is in the boxes of the Chapter Outline section. APPLYING THE CONCEPTS Concepts and associated comments appear in this section. The Applying the Concepts questions and/or statements appear in the textbook (assignments can be made from textbook chapters). However, the comments only appear in the Instructor s Resource Manual. Note that proper placement of Applying the Concepts questions is up to the instructor. However, placement suggestions do appear in the Chapter Outline section. KEY TERMS All of the Key Terms found in each chapter appear on the Companion Website at On the website, the instructor will find all Key Terms listed in the Flashcards module. This information will be especially helpful to students who are having difficulty with vocabulary, or for review prior to examinations. CBC/PEARSON VIDEO CASES There are seven video cases that can be used with this text that cover major topics of interest to the students. Teaching notes for using this resource and suggested answers to the case questions are included in a separate section at the end of this manual. POWERPOINT (Basic and Media-Rich!) SLIDES Two sets of PowerPoint slides are available with this edition. PowerPoint Extendit! Presentations include up to slides per chapter with images and figures used in the text. PowerPoint Express slideshows are shorter and more basic, aimed at instructors who like to customize more electronic files for each chapter. The Express slides may be found on the Companion Website, ( The Basic slides can be found on the online catalogue, and both the Basic and the Media-Rich can be found on the Instructor s Resource CD-ROM provided with the Kotler/Armstrong/Cunningham text. Contact your local Pearson sales representative for any needed assistance. viii

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