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CHAPTER 2
COMPANY AND MARKETING STRATEGY: PARTNERING TO BUILD
CUSTOMER RELATIONSHIPS
General Teaching Tips for this Chapter

This chapter starts outlining some fairly difficult subjects for students. Strategic planning,
growth- share matrices, and even the development of the marketing mix are relatively tough
concepts for a second chapter in a beginning marketing text. Therefore, when planning how to
present the material, be sure to leave plenty of time to go through at least some of the Applying
the Concepts, as well as defining what the Key Terms really mean in the everyday working
world. Several of the concepts presented in this chapter become important later in the text, and
if the students come away understanding this chapter, they will have an easier time later in the
semester.
15 MIN covering companywide strategic planning. Focus on the “thread” that ties
together the corporate strategic plan, corporate and business unit objectives, and the
business or product portfolio. This last topic should be prominent in the discussion,
as it sets the stage for later discussions of new product development.
5 MIN on the second major section of the chapter, Planning Marketing. Although this
section is important and touches on issues that will come up later in the text, it does not
need to have the same level of focus as the other topics in this chapter.
20 MIN devoted to marketing strategy. In particular, ensuring the students understand the
true meaning of developing an intelligent marketing mix will set the stage for such later
topics as integrated marketing communications, because they will already have thought
about how different components of a plan should work together.
20 MIN on managing the marketing effort. This section should really drive home the
notion that marketing isn’t just a creative endeavour. For instance, under marketing
Copyright © 2017 Pearson Canada Inc.

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analysis as well as understanding the marketing environment, you can point out how
these topics are a big part of what market research is all about.
More teaching tips follow below, in conjunction with each content section of this chapter.
Ideas for Activities and Assignments based on Opening Story

(Christie Digital)
This point of this story is make students realize that not every company markets a consumer
product that they, personally, will buy and use—but that doesn’t mean B2B companies are
boring. Far from it. Students have probably all seen the end results of the projection mapping
equipment that Christie Digital manufactures and markets. To introduce the idea of projection
mapping to students, show some videos from the Christie Digital YouTube channel
(https://www.youtube.com/user/christieDigital/), such as their installations for Disney’s
Star Wars: The Force Awakens red carpet, York University, and Microsoft.
Ideas for Activities and Assignments based on M@W 2.1 (Nike)

Nike’s marketing success resulted in its brand losing its cachet and street cred, and signaled the end
of the spend-big, win-big era of “push” marketing, This feature highlight’s Nike’s move into the
customer-relationship marketing era, in which brands increasingly derive value from customers.
In-class group participation exercise: Form students into groups of three to five. Each group
should read the opening vignette to the chapter on Nike. Each group should answer the following
questions:
1. What has caused Nike’s lasting popularity?
2. What has been the company’s primary strategy?
3. What is Nike doing to ensure its future growth and success?
Each group should then share its findings with the class.
Ideas for Activities and Assignments based on M@W 2.2 (Red Bull)
This feature describes how Red Bull managed to compete against beverage giants Coca-Cola and
PepsiCo by creating it’s own category—energy drinks—and supporting it with a well-defined
brand differentiation and positioning. Red Bull has become synonymous with extreme sports and
wild stunts, like Felix Baumgaurtner’s jump from space.
In-class small group participation exercise: Compare the positioning of other beverages in the
energy drink category, such as Monster, Rockstar, Full Throttle and Amp. In what ways are they
differentiated? In what ways are they the same? Do all the brands clearly communicate what
makes them different? Do they communicate with the same customers? Students should consider
product attributes, prices, distribution, and promotion. Each group should then share its findings
with the class.

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LO1: Explain company-wide strategic planning and its four steps.

To understand the role and place of top level marketing planning within a corporation, we first
teach students the basic, typical, top level organization of a corporation. Refer to Figure 2.1:
Most companies start their strategic planning process by defining an overall purpose and
mission. This mission is turned into specific objectives that guide the whole company. Next,
senior managers at the corporate level decide what portfolio of businesses and products is best
for the company and how much support to give each one. In turn, each business and product
develops detailed marketing and other departmental plans that support the company-wide plan.
Marketing planning occurs at the business unit, product, and market levels.
Marketing planning step 1: Defining the mission statement. A mission statement is a
statement of the organization’s purpose, and should be market-oriented, not product-oriented.
Marketing planning step 2: Setting company objectives and goals.
LO1: Assignments and Activities

Students will largely be unfamiliar with strategic planning and its concepts and objectives.
Making this come alive with the examples in the textbook, or your own examples from your
own experience, will help them deal with the complex issues in this section. Working through a
mission statement for the marketing department of your university, or for the business college
within which it exists, may give the students a greater appreciation for the difficulty and
importance of defining a mission that lives and breathes life into the objectives that follow.
You can also have the students look up the mission statements for the companies used
as examples in the text, to see if those missions have changed—they shouldn’t have, and
you can make the point that mission statements rarely, if ever, change.
Another activity they’ll find interesting is to look up the mission statement of the dream
organization they would like to work for one day.
LO2: Discuss how to design business portfolios and develop growth

strategies.
Marketing planning step 3: Designing the business portfolio; the collection of businesses and
products that make up the company—i.e. the groupings of what the company markets. This only
applies to large companies; small companies will have only one “portfolio” of products.
Strategic business units (SBUs): this is another name for the sub-businesses and product
groupings that make up the company’s business portfolios. Again, it is important for students
to understand this only applies to large companies like Procter & Gamble, Disney, Campbell’s,
Rogers, General Motors, and the other examples given in the text. Another important point to
make is that the structure and organization of SBUs changes from time to time, as companies

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re-think and re-organize. So one in-class exercise you can do for this section is to have students
research the large companies mentioned, and find out (a) what their SBUs are; and (b) whether
and how they have changed since they were described in the text.

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BCG’s growth-share matrix: stars, cash cows, question marks, dogs. This portfolio analysis
tool can also be difficult to understand. Again, working through examples with companies the
students should be familiar with will aid understanding. University business courses rarely
talk about cross-functional team work, so this may come as a surprise to students. If they
have worked in internships with large companies, they may well have seen functional silos
at work, and their coursework only serves to reinforce that mentality. Examples of companies
failing because of a lack of team work—which can happen frequently at small companies in
particular—will open many students’ eyes to the importance of ensuring that all functions work
in concert to make the company a success.
Strategies for growth and downsizing: Students should be familiar with the product/market
expansion grid (Figure 2.3), and with the terms market penetration strategy vs. market
development strategy. Also with the terms diversification, downsizing, and harvesting. Focus
on Under Armour, the example used in this section of the text—it’s a brand the students are
probably familiar with.
Students may find it difficult to understand the growth strategies shown in the product/market
expansion grid, because this is a theoretical model and an abstract concept. Though these areas
are carefully described in the text, it is useful to make sure that students understand the mix of
alternatives available to the strategist. One way to do this is to pick another example besides the
example used in the text and have the students suggest acceptable alternatives. Remind students
to think about how the example companies have expanded or contracted in recent years. Also,
make students practice using the terms from the expansion grid in their discussions so a proper
business strategy vocabulary will be built. This practice will really help the students when an
exam rolls around.

In-class group participation/game show activity: Break students into groups of four or five
and have each team prepare a set of 12-15 slides that show images of products they believe to be
either stars, cash cows, question marks, or dogs. (They should research BCG’s website and the
terms for more information.) Each team must assign a team captain, and the team captain must
have some kind of buzzer they can use to indicate they are ready to answer the question. Then,
one team at a time goes to the front of the class and goes through their slide, asking the other
teams, is this an example of a star, a cash cow, a question mark, or a dog? To avoid anarchy,
only the team captains may “buzz” in to answer the question. It is up to the team asking the
questions to judge whether the answer is right or not. As the instructor, all you need to do is
facilitate and observe, and record participation points as you see fit.
LO3: Explain marketing’s role in strategic planning and how marketing

works with its partners to create and deliver customer value.
Marketing planning step 4: At market level, plan marketing strategies and tactics.
This section builds on what was learned in chapter 1: Marketing plays a key role in the company’s
strategic planning in several ways. It provides a guiding philosophy—the marketing concept—

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important consumer groups. Marketing provides inputs to strategic planners by helping to identify
attractive market opportunities and by assessing the firm’s potential to take advantage of them.
And within individual business units, marketing designs strategies for reaching the unit’s objectives.
Once the unit’s objectives are set, marketing’s task is to help carry them out—profitably.
Customer value and value chains: As we learned in chapter 1, customer value is the key
ingredient in the marketer’s formula for success, but marketers alone cannot produce value
for customers. Although marketing plays a leading role, it can be only a partner in attracting,
keeping, and growing customers. In addition to customer relationship management, marketers
must also practice partner relationship management.
Partnering with other company departments: Value chains and supply chains are important
concepts that also are typically not discussed in other courses. Getting students to understand
these concepts is important for their understanding of the remainder of the course. Showing how
sloppy quality in a component purchased from a vendor ultimately affects customer satisfaction
will help.
Partnering with Others in the Marketing System: Companies must look beyond their own
internal value chain and into the value chains of their suppliers, distributors, and, ultimately,
customers. Think of McDonald’s as a marketing system. People do not swarm to McDonald’s
because they love the chain’s hamburgers—they flock to the McDonald’s system, for everything
it comprises and represents: a familiar restaurant; breakfast sandwiches; late night snacks; fun
products and services for kids; a drive-through; and a consistent level of service and value for the
money. Another way to view the marketing system is as a value delivery network; a network
made up of the company, suppliers, distributors, and, ultimately, customers who partner with
each other to improve the performance of the entire system.

Small group in-class participation : Draw a diagram representing McDonald’s marketing
system or value delivery network.
LO4: Describe the elements of a customer-driven marketing strategy and

mix, and the forces that influence it.
Introduce the term “marketing mix” by showing Figure 2.4 and Figure 2.5 and discussing it
with the class. Students often miss this concept at the early stages of the course, and then weeks
later start asking, “What do you mean by marketing mix?” The marketing mix is simply the
collection of marketing tools and activities a company employs, and includes considerations of
product, pricing, distribution (i.e. place/location), and promotion (i.e. marketing communications
and advertising). They should think of the term marketing strategy as describing the company’s
top level decisions about how, exactly, to employ the tactics of each of the four Ps—the
marketing mix.

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This section also introduces the topics of market segmentation, targeting, differentiation, and
positioning. At this point, students only need a general idea of what these terms mean; they will
be studied in detail in chapter 7.

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Market segmentation and targeting is universally a new concept to students, unless they
happen to have a parent who works in marketing. Although this is discussed in detail in a
future chapter, showing how a large, amorphous market can be broken down in more and
more detailed groups of buyers will help.
Market positioning can be difficult to understand as well. Students will normally think of a
product in terms of its features, and although positioning includes the features, it also spans the
concepts of benefits and perceptions. Using examples of brands at opposite ends of a price
continuum, such as Rolex versus Timex watches, helps drive home what positioning means.
The concept of “translating” the four Ps into the four Cs is an application of the marketing
concept—the four Ps are the “old fashioned” way of looking at marketing, from the perspective
of the company. The four Cs are the same ideas, but the perspective is that of the customer.

In-class group participation activity: Examine the websites of Harry Rosen’s and Moore’s.
What is the positioning strategy for each of these clothing retailers? How are they similar? How
are they different? Have students brainstorm these questions, jot down answers, and hand in one
page with their names for participation points.
LO5: List the marketing management functions, including the elements of a

marketing plan, and discuss the importance of measuring and managing
return on marketing investment.
The most important concept in this section is the theoretical model of the SWOT analysis.
Students may have learned this in an intro to business or other business strategy course, but it
never hurts to give them more opportunities to practice using it. The biggest problem you’ll find
with students is that they think of doing a SWOT analysis as an academic exercise; they write
down points but don’t really think about what they mean, or whether they are important. It’s as
though they think the goal is to have as many items under each SWOT category as possible.
A good way to introduce the SWOT analysis is to do one as a group, using a company and
industry that they are all familiar with, and writing their ideas on the board, like in a group
brainstorming session. But after you’ve got 4-5 points under each SWOT letter, go back through
each one and discuss and analyze them further. Get students to narrow it down to only one point
under each—the most important strength of the company, the most important weakness, the most
important opportunity, and the most important threat.
Figure 2.7 is another important, basic theoretical concept of marketing that students need to
understand before moving on in the text. It’s the idea that marketing is an ongoing function that
“starts” with analysis of the situation (SWOT analysis), then plans the strategies, tactics, and
programs; then implements those programs; and then “controls” or reviews and monitors them.
Reviewing and monitoring marketing programs also requires analysis, which brings us back to
the first stage in the process. And so on, and so on, in a never-ending cycle.

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Introduction to the marketing plan: Most instructors who teach introduction to marketing give
a term assignment for students to write a marketing plan for a company of their choosing. In this
section, you can introduce the topic and go over the outline of a marketing plan on page 64.

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Marketing department organization: The size of the marketing department depends on the
size of the company, and in a large company there might be several sub-departments like a group
working only on market research, another on marketing programs, and another on marketing
communications. In a company with a large sales force, there might be a marketing department
devoted exclusively to sales support. The lowest job level is the marketing assistant or marketing
specialist, reporting to a marketing manager, reporting to a marketing director, reporting to a
marketing vice president. A large company may even have more than one marketing VP. And a
very large, marketing-focused organization will have a chief marketing officer, or CMO.
Marketing ROI: Marketing has traditionally been viewed as a cost, and the marketing department
as a cost centre (as opposed to a profit centre, which is how sales departments are viewed—hence
the longstanding animosity between marketing and sales), but in today’s modern marketing world,
marketers are under pressure to show proof of a return on the company’s investment in marketing.
This is called marketing ROI.
Return on marketing investment is the net return from a marketing investment divided by the
costs of the marketing investment. It is difficult to measure primarily due to lack of a consistent
definition of marketing ROI and tools to measure it. In measuring financial ROI, both the R and
the I are uniformly measured in dollars. But measuring marketing benefits such as advertising
impact aren’t easily put into dollar returns.

In-class small group participation exercise: Read the WestJet marketing plan in Appendix 2. If
you were WestJet’s marketing executives, which market opportunity would you recommend to
the company that it pursue next year? Draft a one page proposal of your recommendation.
In-class small group participation exercise: Conduct a SWOT analysis, develop objectives,
and create a marketing strategy for your school.
Individual research/writing assignment: Explain the role of a chief marketing officer (CMO).
Summarize an article that describes the importance of this position, the characteristics of an
effective CMO, or any issues surrounding this position. Note to instructor: Students’ selection of
articles will vary. One issue regarding the CMO position is that the average tenure of a CMO is
just over two years, which has created some controversy surrounding this position. An important
skill for CMOs is the ability to communicate the financial value of marketing to the others in the
executive suite. Some interesting articles are listed below:
Rooney, Jennifer (2010), “For CMOs of the Future, Agility Is Key to Success,” Advertising Age,
(June 21), pp. 4, 31. This article discusses how today’s CMO must be able to communicate the
financial value of marketing the rest of the C-level suite.
Cata, Carlos (2008), “CMOs Stop Obsessing Over the Tenure Stat,” Advertising Age, (May 19),
p. 40. This article discusses the characteristics of an effective CMO: leadership, trust, intent, and
results.

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Rooney, Jennifer (2008), “Marty Hamlish Knows Why CMOs Don’t Last,” Advertising Age,
(April 17), pp. 18–19. This article is an interview with the CMO of SAP, Marty Hamlish. He
explains how the role of the CMO is to nurture, grow, and protect the organization’s brands.

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Kiley, David and Burt Helm (2007), “The Short Life of the Chief Marketing Officer,”
BusinessWeek, (December 12), pp. 63–65. This article discusses the tenure of CMOs and what it
takes to be successful.
Court, David (2007), “The Evolving Role of the CMO,” McKinsey Quarterly, pp. 28–39. This
article discusses how the role of the CMO must broaden due to significant changes in the
marketplace. The author notes that changing customer needs and behavior are the reasons for this
shift in importance of the CMO.
Individual research/writing assignment: Marketers are increasingly held accountable for
demonstrating marketing success. Research the various marketing metrics, in addition to those
described in the chapter and Appendix 3, used by marketers to measure marketing performance.
Write a brief report of your findings. Note to instructor: Students will learn in their research that
there are numerous academic and trade articles outlining several marketing metrics. There are
several resources on the Internet as well but students need to be aware that marketing metrics
encompass all areas of marketing, not just advertising or direct marketing that seem to come up
high on search results. A comprehensive source on marketing metrics is Farris et al. (2006),
Marketing Metrics: 50+ Metrics Every Executive Should Master, Pearson Education: Upper
Saddle River, NJ, published as Wharton School Publishing.
Boston Pizza Comprehensive Case—Questions and Answers

1. Do you think there is a priority system to Boston Pizza’s four pillar strategy? If not,
do you think there should be? Why?
Answer: Students answers will differ, but most will likely take a customer-centric view.
It’s interesting to note, however, that the pillars appear in a different order on the investor
website, with franchisee profitability leading the list.
2. Is it practical (or even possible) to make all corporate decisions while ensuring that
all four decision criteria (aka the four pillars strategy) are met?
Answer: Students might find the growth strategy impractical, in which case, have them
consider what might be permissible exceptions to the four pillars, and they might soon
realize there’s value in sticking to a system.
3. Visit bostonpizza.com. Find and state BP’s mission statement. Does it appear to be
consistent with the brand’s four pillar strategy?
Answer: “To be a world class franchisor through selecting and training people to
profitably manage an outstanding food service business. To achieve this goal we are
innovative and responsive in our approach in business. We work as a team providing
attention to detail but never losing sight of the larger picture. We recognize the need to
provide leadership in all areas of operations, marketing and restaurant development.”
(http://www.bpincomefund.com/en/about-bp/mission.aspx) Students may think the
mission statement mostly reflects the first pillar, commitment to franchisee profitability,
but that profitability doesn’t happen without a strong brand and happy and loyal
customers, as reflected by the other three pillars.

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End of Chapter Materials
Discussion Questions
1. Define strategic planning and briefly describe the four steps that lead managers and
the firm through the strategic planning process. Discuss the role marketing plays in
this process. (AASCB: Written and oral communication)
Answer: Strategic planning is the process of developing and maintaining a strategic fit
between the organization’s goals and capabilities and its changing marketing opportunities.
At the corporate level, the company starts the strategic planning process by defining its
overall purpose and mission (see Figure 2.1). This mission then is turned into detailed
supporting objectives that guide the whole company. Next, headquarters decides what
portfolio of businesses and products is best for the company and how much support to
give each one. In turn, each business and product develops detailed marketing and other
departmental plans that support the company-wide plan. Marketing planning occurs at the
business-unit, product, and market levels. Marketing supports company strategic planning
with more detailed plans for specific marketing opportunities.
Marketing plays a key role in the company’s strategic planning in several ways: (1) it
provides a guiding philosophy—the marketing concept—that suggests that company
strategy should revolve around building profitable relationships with important consumer
groups; (2) it provides inputs to strategic planners by helping to identify attractive market
opportunities and by assessing the firm’s potential to take advantage of them; and (3)
within individual business units, marketing designs strategies for reaching the unit’s
objectives.
2. What is a SWOT analysis? How is this analysis useful in developing and
implementing marketing strategies? (AACSB: Written and oral communication)
Answer: Managing the marketing function begins with a complete analysis of the
company’s situation. The marketer should conduct a SWOT analysis, by which it
evaluates the company’s overall strengths (S), weaknesses (W), opportunities (O), and
threats (T). Strengths include internal capabilities, resources, and positive situational
factors that may help the company serve its customers and achieve its objectives.
Weaknesses include internal limitations and negative situational factors that may interfere
with the company’s performance. Opportunities are favorable factors or trends in the
external environment that the company may be able to exploit to its advantage. And
threats are unfavorable external factors or trends that may present challenges to
performance.
The company should analyze its markets and marketing environment to find attractive
opportunities and identify environmental threats. It should analyze company strengths
and weaknesses as well as current and possible marketing actions to determine which
opportunities it can best pursue. The goal is to match the company’s strengths to
attractive opportunities in the environment, while simultaneously eliminating or

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overcoming the weaknesses and minimizing the threats. Marketing analysis provides
inputs to each of the other marketing management functions.

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3. Explain the roles of market segmentation, market targeting, differentiation, and

positioning in implementing an effective marketing strategy. (AACSB: Written and
oral communication)
Answer: The market consists of many types of customers, products, and needs. The
marketer must determine which segments offer the best opportunities. Consumers can be
grouped and served in various ways based on geographic, demographic, psychographic,
and behavioral factors. The process of dividing a market into distinct groups of buyers
who have different needs, characteristics, or behaviors, and who might require separate
products or marketing programs is called market segmentation. After a company has
defined its market segments, it can enter one or many of these segments. Market
targeting involves evaluating each market segment’s attractiveness and selecting one or
more segments to enter. A company should target segments in which it can profitably
generate the greatest customer value and sustain it over time. After a company has
decided which market segments to enter, it must decide how it will differentiate its
market offering for each targeted segment and what positions it wants to occupy in those
segments. A product’s position is the place it occupies relative to competitors’ products
in consumers’ minds. Marketers want to develop unique market positions for their
products. If a product is perceived to be exactly like others on the market, consumers
would have no reason to buy it. Positioning is arranging for a product to occupy a clear,
distinctive, and desirable place relative to competing products in the minds of target
consumers. Marketers plan positions that distinguish their products from competing
brands and give them the greatest advantage in their target markets. In positioning its
brand, a company first identifies possible customer value differences that provide
competitive advantages on which to build the position. Effective positioning begins with
differentiation—actually differentiating the company’s market offering so that it gives
consumers more value. Once the company has chosen a desired position, it must take
strong steps to deliver and communicate that position to target consumers. The
company’s entire marketing program should support the chosen positioning strategy.
4. Define each of the four Ps. What insights might a firm gain by considering the four
Cs rather than the four Ps? (AACSB: Written and oral communication; Reflective
thinking)
Answer: The four Ps of marketing are: product, price, place, and promotion. Product
means the goods-and-services combination the company offers to the target market.
Price is the amount of money customers have to pay to obtain the product. Place includes
company activities that make the product available to target consumers. Promotion refers
to activities that communicate the merits of the product and persuade target customers to
buy it. The four Cs—customer solution, customer cost, convenience, and communication—
describe the four Ps from the customer’s viewpoint. By examining products and services
using the four Cs, marketers may be better equipped to build customer relationships and
offer true value.
5. How are marketing departments organized? Which organization is best? (AACSB:
Written and oral communication, Reflective thinking)

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Answer: Modern marketing departments can be arranged in several ways. The most
common form of marketing organization is the functional organization. Under this
organization, different marketing activities are headed by a functional specialist—a sales
manager, an advertising manager, a marketing research manager, a customer service
manager, or a new product manager. A company that sells across the country or
internationally often uses a geographic organization. Its sales and marketing people are
assigned to specific countries, regions, and districts. Geographic organization allows
salespeople to settle into a territory, get to know their customers, and work with a
minimum of travel time and cost. Companies with many very different products or brands
often create a product management organization. Using this approach, a product manager
develops and implements a complete strategy and marketing program for a specific
product or brand.
For companies that sell one product line to many different types of markets and
customers who have different needs and preferences, a market or customer management
organization might be best. A market management organization is similar to the product
management organization. Market managers are responsible for developing marketing
strategies and plans for their specific markets or customers. This system’s main
advantage is that the company is organized around the needs of specific customer
segments. Many companies develop special organizations to manage their relationships
with large customers. Large companies that produce many different products flowing into
many different geographic and customer markets usually employ some combination of
the functional, geographic, product, and market organization forms.
6. Discuss the four marketing management functions. (AACSB: Written and oral
communication)
Answer: Managing the marketing process requires the four marketing management
functions—analysis, planning, implementation, and control. Managing the marketing
function begins with a complete analysis of the company’s situation. The marketer should
conduct a SWOT analysis (pronounced “swat” analysis), by which it evaluates the
company’s overall strengths (S), weaknesses (W), opportunities (O), and threats (T).
Marketing planning involves choosing marketing strategies that will help the company
attain its overall strategic objectives. Marketing implementation is the process that
turns marketing plans into marketing actions to accomplish strategic marketing
objectives. Whereas marketing planning addresses the what and why of marketing
activities, implementation addresses the who, where, when, and how. Because many
surprises occur during the implementation of marketing plans, marketers must practice
constant marketing control—evaluating the results of marketing strategies and plans
and taking corrective action to ensure that the objectives are attained. Marketing control
involves four steps. Management first sets specific marketing goals. It then measures its
performance in the marketplace and evaluates the causes of any differences between
expected and actual performance. Finally, management takes corrective action to close

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the gaps between goals and performance. This may require changing the action programs
or even changing the goals.

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Critical Thinking Exercises
1. In a small group, research a company and construct a growth-share matrix of the

company’s products, brands, or strategic business units. Recommend a strategy for
each unit in the matrix. (AACSB: Written and oral communication; Reflective thinking)
Answer: Students should be given this exercise with ample time to do research, and
instructors may want to assign specific companies to different groups. Most standard
portfolio analysis methods evaluate SBUs on two important dimensions: the
attractiveness of the SBU’s market or industry and the strength of the SBU’s position in
that market or industry. The best-known portfolio-planning method was developed by the
Boston Consulting Group. Using the now-classic Boston Consulting Group approach, a
company classifies all its SBUs according to the growth-share matrix. On the vertical
axis, market growth rate provides a measure of market attractiveness. On the horizontal
axis, relative market share serves as a measure of company strength in the market. The
growth-share matrix defines four types of SBUs:
Stars. Stars are high-growth, high-share businesses or products. They often need
heavy investments to finance their rapid growth. Eventually their growth will
slow down, and they will turn into cash cows.
Cash cows. Cash cows are low-growth, high-share businesses or products. These
established and successful SBUs need less investment to hold their market share.
Thus, they produce a lot of the cash that the company uses to pay its bills and
support other SBUs that need investment.
Question marks. Question marks are low-share business units in high-growth
markets. They require a lot of cash to hold their share, let alone increase it.
Management has to think hard about which question marks it should try to build
into stars and which should be phased out.
Dogs. Dogs are low-growth, low-share businesses and products. They may
generate enough cash to maintain themselves but do not promise to be large
sources of cash.
Once it has classified its SBUs, the company must determine what role each will play in
the future. It can pursue one of four strategies for each SBU. It can invest more in the
business unit to build its share. Or it can invest just enough to hold the SBU’s share at the
current level. It can harvest the SBU, milking its short-term cash flow regardless of the
long-term effect. Finally, it can divest the SBU by selling it or phasing it out and using
the resources elsewhere.
2. Find the mission statements of two for-profit and two not-for-profit organizations.
Evaluate these mission statements with respect to their market orientations.
(AACSB: Written and oral communication; Reflective thinking)
Answer: Students should be able to find mission statements by searching on the Internet.

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Some mission statements can be found at an organization’s Web site or from other

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sources, such as articles or Web sites that compile this type of information. For example,
http://retailindustry.about.com/od/retailbestpractices/ig/Company-Mission-Statements/
provides a collection of over 100 retailers’ mission statements and
http://drdianehamilton.wordpress.com/2011/01/13/top-10-company-mission-statements-
in-2011/ gives top 10 company missions statements for 2012. See
www.nonprofithub.org/featured/storytelling-like-bruce-three-examples-of-strong-
nonprofit-mission-statements/ for links to non-profit organization mission statements.
A market-oriented mission statement should be described in terms of satisfying basic
customer needs and not a focus on products.
Online, Mobile, and Social Media Marketing: Hewlett-Packard PCs

In 2011, Hewlett-Packard CEO Leo Apothekar made the strategic decision to exit the personal
computer business, but he got fired and incoming CEO Meg Wittman reversed that decision.
However, sales of personal computers have plummeted since the introduction of post-PC devices
(tablets, eReaders, and smartphones). In the first quarter of 2013 alone, total PC shipments fell
almost 14 percent, and no one felt that more than leading PC-maker HP. The company’s PC sales
fell 23.7 percent that quarter. Now, PC-makers are dropping prices—some more than 50
percent—on laptops and some are offering touch screens to compete with tablets and mobile
devices in an attempt to gain back market share. HP’s former CEO wanted to shift strategic focus
more toward offering software to business markets. Maybe he had read the future correctly and
was on the right strategic path. With the game-changing introduction of tablets, mobile
technology, and social media, the future is not what it used to be.
1. Explain which product/market expansion grid strategy PC-makers are currently
pursuing to deal with the threat of post-PC devices. Is this a smart strategy?
(AACSB: Written and oral communication; Reflective thinking)
Answer: Lowering prices to garner more sales from current customers is an example of a
market penetration strategy. Adding touch screens to PCs to sell to current customers,
however, is a product modification, which is an example of a product development
strategy. This may work in the short term, but predictions are that mobile device growth
will continue unabated.
Think Like a Marketing Manager: Apple
1. Which of Apple’s products are its stars, cash cows, question marks, and dogs?
Answer: There are no right or wrong answers, but students should be forced to research
Apple’s website, rather than just coming up with answers off the top of their heads. There
will always be new products ― are those the Stars? Are Apple’s Star products always
their Star products, or do their Stars change? Does Apple have any Dogs? (All companies
do, but they aren’t necessarily easy to find.) This question appears superficially easy, but
finding good answers requires research and critical analysis.

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2. Which of the four market growth strategies in the product/market expansion grid
have you observed Apple using?
Answer: Rather than just answer with one of the four growth strategies, have the
students consider each of the four, and try to come up with examples for each.
Again, this will require research, not only on Apple’s website, but in the news of the last
few years.
3. How does Apple employ the elements of the marketing mix—product, price,
place (distribution), and promotion?
Answer: Don’t let the students give superficial answers. Guide them to consider the
strategy behind each of the four Ps. For example, if you were working in Apple’s product
development group, what do you think your managers are giving you as direction, in
terms of product strategy? The prices of Apple products are not arrived at simply by
calculating how much it costs to make them and adding a markup ― why do you think
the original iPhone cost $500 U.S.? What was the strategy behind that pricing? Apple’s
distribution strategy is selective. What does that mean? Where can you buy Apple
products? And what is the communications strategy behind Apple’s various advertising
campaigns?
4. The iPhone was available in the U.S. in June 2007, but was not available in Canada
until a year later. Similarly, Apple released the iPad in the United States in April
2010 but international consumers, who were only able to pre-order the product on
May 10, were still faced with an “undetermined” launch date. What can you infer
about Apple’s international growth strategy?
Answer: Encourage students to research the details of what happened before formulating
their answer. They can search news websites, and search for old press releases on Apple’s
and Rogers’s websites, or on Canada Newswire.
Marketing Ethics
The topic here is selling digital monitoring technologies to autocratic regimes.
1. In most cases, it is not illegal to sell such products to governments, oppressive or
otherwise. But is it moral? Should companies be allowed to pursue a market
development strategy wherever they find demand? (AACSB: Written and oral
communication; Ethical understanding and reasoning)
Answer: Students’ responses will vary. In some cases, embargoes prohibit U.S.
companies from selling products or services to foreign nations for security reasons but
also because of a country’s human rights violations. However, other countries do not
impose such embargoes, and often U.S. products get to these countries via other
companies in other countries.

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An interesting essay adapted from the book, The New Digital Age: Reshaping the Future
of People, Nations, and Business, written by Google’s Eric Schmidt and Jared Cohen is
“A Trip to the Digital Dark Side,” The Wall Street Journal (April 20-21, 2013), C1-C2.

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2. Research the Blue Coat Systems incident and write a report of your findings. Did
the company illegally sell surveillance products to Syria? Which element of the
marketing mix is most related to this issue? (AACSB: Written and oral
communication; Reflective thinking)
Answer: Students can do an Internet search of “Blue Coat Systems and Syria” and find
considerable information. For example, see www.eff.org/deeplinks/2013/05/blue-coat-
syria-scandal-next-shoe-drops-computerlinks-fzco for more information. Apparently,
Computerlinks, an intermediary, was fined for dealing Blue Coat’s technology to Syria.
This article illustrates the importance of knowing who distributes your products in the
channel of distribution—the “place” P of the marketing mix.
Marketing by the Numbers

1. Calculate the net marketing contribution (NMC) for this company.
Answer: Net marketing contribution (NMC) measures marketing profitability and includes only
components of profitability that are controlled by marketing. It is calculated as:
NMC = net sales − cost of goods sold − marketing expenses where,
marketing expenses = selling expenses + promotion expenses + marketing salaries
and
expenses = $70,000,000 + $30,000,000 + $10,000,000 = $110,000,000
so,
NMC = $800,000,000 − $375,000,000 − $110,000,000 = $315,000,000
2. Calculate both marketing return on sales (or marketing ROS) and marketing return
on investment (or marketing ROI) as described in Appendix 3. Is this company
doing well?
marketing ROS = net marketing contribution / net sales
= $315,000,000 / $800,000,000 = 39.4%
marketing ROI = net marketing contribution / marketing expenses
= $315,000,000 / $110,000,000 = 286%
Students’ responses regarding whether or not this business is doing well will vary. These ratios
should be compared to previous ratios for the company, competitors, and industry averages.
However, 39.4 percent marketing ROS and 286 percent marketing ROI are very good. In other
words, each dollar invested in marketing is returning $2.86 in net marketing contribution.

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End-of-Chapter Case: Dyson
Synopsis
Dyson started out as so many storybook success stories do—by one person, in a garage, tinkering
away at a product idea. In this case, it took James Dyson over 15 years and 5,000 prototypes to
come up with his first product. Dyson quickly became known as an innovative vacuum cleaner
company. But this story quickly reveals that Dyson is about much more than making vacuums.
At its core, Dyson is a technology company that seeks to develop new and innovative versions of
everyday products that wow customers. With this as its mission, Dyson has not limited itself to
vacuums.

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Teaching Objectives
The teaching objectives for this case are to:
1. Introduce students to the concepts of business and marketing strategy.
2. Highlight the difference between a mission statement and a market-oriented mission
statement.
3. Establish the role of goals and objectives in marketing strategy.
4. Help students understand the importance of the business portfolio in growing a business.
5. Introduce the marketing mix as a core concept of marketing.
Discussion Questions
1. Write a market-oriented mission statement for Dyson.
Searches of the Internet in general and the Dyson site specifically do not reveal a
mission statement for Dyson. But if there were one, it might read something like this:
“Take everyday products that don’t solve customer problems well, and make them
better.” This not only describes the core of what every Dyson product does, but it
frames it in the context of satisfying customer needs and resolving customer problems,
as a market-oriented mission statement should.
2. What are Dyson’s goals and objectives?

This is a question that will require students to do some thinking and not just “seek-
and-find” the information in the case. The only real objective stated in this case is a
business objective: to double the annual revenues of $1.5 billion “quite quickly.” But
students should be pressed to understand Dyson as thoroughly as possible. Then, based
on the information given in the case, they should extrapolate business and marketing
goals. Some possibilities include:
To expand into new businesses. They did this with the washing machine, the
hand dryer, the fan, and the bathroom faucet. What’s next?
To support existing and new products with informational integrated marketing
campaigns.
To ensure every product meets customer needs through thorough market
testing.
3. Does Dyson have a business portfolio? Explain.

Dyson most certainly has a business portfolio. Its original business was defined by
vacuum cleaners. Then, it expanded into hand dryers. Then, into fans and heaters. The
new bathroom faucet could be considered a subset of hand dryers as it seems to fit into
the same category in terms of customers. It took a shot at washing machines with the
Contrarotator, a product that was pulled from the market because it was not profitable.
Each of these product lines represents a different business. Each has different
characteristics in terms of size, revenues, profits, growth, etc. What is not apparent
from this case is where Dyson will go next in terms of new businesses.

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4. Discuss Dyson’s marketing mix techniques and how they fit within the context of
its business and marketing strategy.
Product: Dyson does a lot of R&D and focuses on developing technology through
the building of prototypes and trial-and-error. As a technology company, it also
seeks to use the technologies it develops for a given product or product line by
finding other uses for them. This is all in line with its mission of creating new
versions of everyday products that solve customer problems in new and exciting
ways.
Price: This is not discussed in the case. But Dyson prices its products at a
premium. For example, its fans start at about $300. That’s a huge price premium
over typical household fans. Its new Airblade Tap retails for $1,500, a steep price
for a bathroom faucet. But this pricing strategy fits the overall strategy of selling
products that are innovative and high quality.
Promotion: With its no nonsense promotional strategy, Dyson supports its
marketing strategy. These products are designed to do the job, and its advertising
focuses on demonstrating that.
Distribution: There is not enough information in the case to illustrate this element
of the marketing mix.
5. Is Dyson a customer-centered company? Explain.

This is a good question for discussion and debate. Dyson seems to start with
developing technology. It is an engineering/design driven company. That would
suggest a product orientation. However, as with a few other design driven companies
(think 3M and Bose), Dyson produces hit after hit of products that customers love.
They seem to be just what customers need and seem to resolve customer problems in
ways that existing products simply cannot. Dyson’s market testing procedures
certainly contribute to this. But it may also simply be that like Apple and Steve Jobs,
Dyson (the man and the company) has an uncanny knack for identifying gaps in the
market and filling them with new and exciting products.
Teaching Suggestions
This is a great story to illustrate some of the factors that go in to making a new company a huge
success. These days, the marketing environment is littered with success stories that seem to be
magical, Cinderella, rags-to-riches types of stories. This has been fueled by the success of online
companies, where startup and growth are far faster than for manufactured goods and services that
are more traditional. In any case, it is easy for students to see a company go from nothing to a
billion dollars in revenue and perceive that it is luck or that it is easy.
Dyson’s story certainly puts that to rest. For every person who has ever said, “Why didn’t I just
do that” when they see a company that succeeds, the answers here should be very clear. It took
Dyson 15 years to get his first product to market. During that time, he had no income, needed to
raise the funds that would allow him to do the research and development, and ultimately had to
produce over 5,000 prototypes. Once his product was finished, he then had to find someone to
sell it. As students consider these factors that were very necessary for Dyson’s success, it should
become very clear why everyone doesn’t just start their own company and become a billionaire.

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More Ideas for In-class Activities and Assignments Based on Chapter 2
Individual Writing Assignments

1. Develop a strategy for attracting new students to your college or university. Write a
statement that describes your college/university’s fit between the goal of attracting the
best students and their capabilities for then educating those students.
2. Pick a company or brand from which you buy frequently. Visit their website and find
the portfolio of products/services they sell. Pretend you are the company CEO.
Categorize the products into logical groupings that will become your strategic business
units (SBUs). Using your best judgment, allocate resources, using percentages, not dollar
amounts, to each SBU (make sure the total comes to 100 percent).
3. Examine Rachael Ray’s website. Consider the market for television cooking programs.
Who do you believe Rachel Ray is targeting? How is Rachael Ray and her shows
differentiated in the marketplace as a “product?”
4. Get the current issue of Fortune magazine; most university libraries carry it. Read the
cover story and define the 4 Ps of one of the company’s products mentioned. Then
define the 4 Cs of the same product. Are there differences?
Mini Case Analysis: Apple’s Marketing Strategy for the iPad

Have students research the launch and subsequent milestones in development of the iPad, up to
the present day. Once they have a basic timeline of events established, they should answer the
following questions:
1. What is Apple’s mission statement? How does this apply to the iPad?
2. How do you think Apple describes the target market for the iPad? Is there more than one
target market segment? If so, describe each segment.
3. What are Apple’s SBUs? Which SBU does the iPad belong to?
Small Group Assignments

1. Research NASCAR and (a) Describe NASCAR’s secret for their incredible growth; (b)
Discuss NASCAR’s multi-avenue promotions used to deliver the NASCAR experience;
(c) A big part of the NASCAR experience is the feeling that the sport, itself, is
personally accessible. How does NASCAR accomplish this?
2. The marketing mix is the set of controllable, tactical marketing tools the firm blends to
product the responses it wants from the target market. These marketing tools can all be
collected into four sets of variables known as the “four Ps.” Consider Air Canada. Briefly
describe the “four Ps” as they are utilized by Air Canada.

Another random document with
no related content on Scribd:
The Project Gutenberg eBook of Accept no
substitutes
This ebook is for the use of anyone anywhere in the United States
and most other parts of the world at no cost and with almost no
restrictions whatsoever. You may copy it, give it away or re-use it
under the terms of the Project Gutenberg License included with this
ebook or online at www.gutenberg.org. If you are not located in the
United States, you will have to check the laws of the country where
you are located before using this eBook.
Title: Accept no substitutes
Author: Robert Sheckley
Illustrator: Ed Emshwiller
Release date: October 12, 2023 [eBook #71859]
Language: English
Original publication: New York, NY: Royal Publications, Inc, 1957
Credits: Greg Weeks, Mary Meehan and the Online Distributed

Proofreading Team at http://www.pgdp.net
*** START OF THE PROJECT GUTENBERG EBOOK ACCEPT NO

SUBSTITUTES ***
Accept No Substitutes
By ROBERT SHECKLEY
Illustrated by ED EMSH
The Sexual Morality Act was fierce

to buck, but the Algolian sex surrogate
was ... er ... even fiercer!
[Transcriber's Note: This etext was produced from

Infinity March 1958.
Extensive research did not uncover any evidence that
the U.S. copyright on this publication was renewed.]
Ralph Garvey's private space yacht was in the sling at Boston
Spaceport, ready for takeoff. He was on yellow standby, waiting for
the green, when his radio crackled.
"Tower to G43221," the radio buzzed. "Please await customs
inspection."
"Righto," said Garvey, with a calmness he did not feel. Within him,
something rolled over and died.
Customs inspection! Of all the black, accursed, triple-distilled bad
luck! There was no regular inspection of small private yachts. The
Department had its hands full with the big interstellar liners from
Cassiopeia, Algol, Deneb, and a thousand other places. Private
ships just weren't worth the time and money. But to keep them in
line, Customs held occasional spot checks. No one knew when the
mobile customs team would descend upon any particular spaceport.
But chances of being inspected at any one time were less than fifty
to one.
Garvey had been counting on that factor. And he had paid eight
hundred dollars to know for certain that the East coast team was in
Georgia. Otherwise, he would never have risked a twenty-year jail
sentence for violation of the Sexual Morality Act.
There was a loud rap on his port. "Open for inspection, please."
"Righto," Garvey called out. He locked the door to the after cabin. If
the inspector wanted to look there, he was sunk. There was no place
in the ship where he could successfully conceal a packing case ten
feet high, and no way he could dispose of its illegal contents.
"I'm coming," Garvey shouted. Beads of perspiration stood out on his
high, pale forehead. He thought wildly of blasting off anyhow, running
for it, to Mars, Venus.... But the patrol ships would get him before he
had covered a million miles. There was nothing he could do but try to
bluff it.
He touched a button. The hatch slid back and a tall, thin uniformed
man entered.
"Thought you'd get away with it, eh, Garvey?" the inspector barked.
"You rich guys never learn!"
Somehow, they had found out! Garvey thought of the packing crate
in the after cabin, and its human-shaped, not-yet-living contents.
Damning, absolutely damning. What a fool he'd been!
He turned back to the control panel. Hanging from a corner of it, in a

cracked leather holster, was his revolver. Rather than face twenty
years breaking pumice on Lunar, he would shoot, then try—
"The Sexual Morality Act isn't a blue law, Garvey," the inspector
continued, in a voice like steel against flint. "Violations can have a
catastrophic effect upon the individual, to say nothing of the race.
That's why we're going to make an example of you, Garvey. Now
let's see the evidence."
"I don't know what in hell you're talking about," Garvey said.
Surreptitiously his hand began to creep toward the revolver.
"Wake up, boy!" said the inspector. "You mean you still don't
recognize me?"
Garvey stared at the inspector's tanned, humorous face. He said,
"Eddie Starbuck?"
"About time! How long's it been, Ralph? Ten years?"
"At least ten," Garvey said. His knees were beginning to shake from
sheer relief. "Sit down, sit down, Eddie! You still drink bourbon?"
"I'll say." Starbuck sat down on one of Garvey's acceleration
couches. He looked around, and nodded.
"Nice. Very nice. You must be rich indeed, old buddy."
"I get by," Garvey said. He handed Starbuck a drink, and poured one
for himself. They talked for a while about old times at Michigan State.
"And now you're a Customs inspector," Garvey said.
"Yeah," said Starbuck, stretching his long legs. "Always had a yen for
the law. But it doesn't pay like transistors, eh?"
Garvey smiled modestly. "But what's all this about the Sexual
Morality Act? A gag?"
"Not at all. Didn't you hear the news this morning? The FBI found an
underground sex factory. They hadn't been in business long, so it
was possible to recover all the surrogates. All except one."
"Oh?" said Garvey, draining his drink.
"Yeah. That's when they called us in. We're covering all spaceports,
on the chance the receiver will try to take the damned thing off
Earth."
Garvey poured another drink and said, very casually, "So you figured
I was the boy, eh?"
Starbuck stared at him a moment, then exploded into laughter. "You,
Ralph? Hell, no! Saw your name on the spaceport out-list. I just
dropped in for a drink, boy, for old time's sake. Listen, Ralph, I
remember you. Hell-on-the-girls-Garvey. Biggest menace to virginity
in the history of Michigan State. What would a guy like you want a
substitute for?"
"My girls wouldn't stand for it," Garvey said, and Starbuck laughed
again, and stood up.
"Look, I gotta run. Call me when you get back?"
"I sure will!" A little light-headed, he said, "Sure you don't want to
inspect anyhow, as long as you're here?"
Starbuck stopped and considered. "I suppose I should, for the
record. But to hell with it, I won't hold you up." He walked to the port,
then turned. "You know, I feel sorry for the guy who's got that
surrogate."
"Eh? Why?"
"Man, those things are poison! You know that, Ralph! Anything's
possible—insanity, deformation.... And this guy may have even more
of a problem."
"Why?"
"Can't tell you, boy," Starbuck said. "Really can't. It's special
information. The FBI isn't certain yet. Besides, they're waiting for the
right moment to spring it."
With an easy wave, Starbuck left. Garvey stared after him, thinking
hard. He didn't like the way things were going. What had started out
as an illicit little vacation was turning into a full-scale criminal affair.
Why hadn't he thought of this earlier? He had been apprehensive in
the sexual substitute factory, with its low lights, its furtive, white-
aproned men, its reek of raw flesh and plastic. Why hadn't he given
up the idea then? The surrogates couldn't be as good as people
said....
"Tower to G43221," the radio crackled. "Are you ready?"
Garvey hesitated, wishing he knew what Starbuck had been hinting
at. Maybe he should stop now, while there was still time.
Then he thought of the giant crate in the after cabin, and its contents,
waiting for activation, waiting for him. His pulse began to race. He
knew that he was going through with it, no matter what the risk.
He signalled to the tower, and strapped himself into the control chair.
An hour later he was in space.
Twelve hours later, Garvey cut his jets. He was a long way from
Earth, but nowhere near Luna. His detectors, pushed to their utmost
limit, showed nothing in his vicinity. No liners were going by, no
freighters, no police ships, no yachts. He was alone. Nothing and no
one was going to disturb him.
He went into the after cabin. The packing case was just as he had
left it, securely fastened to the deck. Even the sight of it was vaguely
exciting. Garvey pressed the activating stud on the outside of the
case, and sat down to wait for the contents to awaken and come to
life.
The surrogates had been developed earlier in the century. They had
come about from sheer necessity. At that time, mankind was
beginning to push out into the galaxy. Bases had been established
on Venus, Mars and Titan, and the first interstellar ships were
arriving at Algol and Stagoe II. Man was leaving Earth.
Man—but not woman.
The first settlements were barely toeholds in alien environments. The
work was harsh and demanding, and life expectancy was short.
Whole settlements were sometimes wiped out before the ships were
fully unloaded. The early pioneers were like soldiers on the line of
battle, and exposed to risks no soldier had ever encountered.
Later there would be a place for women. Later—but not now.
So here and there, light-years from Earth, were little worlds without
women—and not happy about it.
The men grew sullen, quarrelsome, violent. They grew careless, and
carelessness on an alien planet was usually fatal.
They wanted women.
Since real women could not go to them, scientists on Earth
developed substitutes. Android females were developed, the
surrogates, and shipped to the colonies. It was a violation of Earth's
morals; but there were worse violations on the way if these weren't
accepted.
For a while, everything seemed to be fine. It would probably have
gone on that way, had everyone left well enough alone.
But the companies on Earth had the usual desire to improve their
product. They called in sculptors and artists to dress up the
appearance of the package. Engineers tinkered with the surrogates,
re-wired them, built in subtler stimulus-response mechanisms, did
strange things with conditioned reflexes. And the men of the
settlements were very happy with the results.
So happy, in fact, that they refused to return to human women, even
when they had the opportunity.
They came back to Earth after their tours of duty, these pioneers,
and they brought their surrogates with them. Loud and long they
praised the substitute women, and pointed out their obvious
superiority to neurotic, nervous, frigid human women.
Naturally, other men wanted to try out the surrogates. And when they
did, they were pleasantly surprised. And spread the word. And—
The government stepped in, quickly and firmly. For one thing, over
fifty percent of the votes were at stake. But more important, social
scientists predicted a violent drop in the birth rate if this went on. So
the government destroyed the surrogates, outlawed the factories,
and told everyone to return to normal.
And reluctantly, everyone did. But there were always some men who
remembered, and told other men. And there were always some men
who weren't satisfied with second-best. So....
Garvey heard movements within the crate. He smiled to himself,

remembering stories he had heard of the surrogates' piquant habits.
Suddenly there was a high-pitched clanging. It was the standby
alarm from the control room. He hurried forward.
It was an emergency broadcast, on all frequencies, directed to Earth
and all ships at space. Garvey tuned it in.
"This is Edward Danzer," the radio announced crisply. "I am Chief of
the Washington branch of the Federal Bureau of Investigation. You
have all heard, on your local newscasts, of the detection and closure
of an illegal sexual substitute factory. And you know that all except
one of the surrogates have been found. This message is for the man
who has that last surrogate, wherever he may be."
Garvey licked his lips nervously and hunched close to the radio.
Within the after cabin, the surrogate was still making waking-up
noises.
"That man is in danger!" Danzer said. "Serious danger! Our
investigation of the molds and forms used in the factory showed us
that something strange was going on. Just this morning, one of the
factory technicians finally confessed.
"The missing surrogate is not an Earth model!
"I repeat," Danzer barked, "the missing surrogate is not an Earth
model! The factory operators had been filling orders for the planet
Algol IV. When they ran short of Earth models for humans, they
substituted an Algolian model. Since the sale of a surrogate is illegal
anyhow, they figured the customer would have no kickback."
Garvey sighed with relief. He had been afraid he had a small
dinosaur in the packing case, at the very least.
"Perhaps," Danzer continued, "the holder of the Algolian surrogate
does not appreciate his danger yet. It is true, of course, that the
Algolians are of the species homo sapiens. It has been established
that the two races share a common ancestry in the primeval past.
But Algol is different from our Earth.
"The planet Algol IV is considerably heavier than Earth, and has a
richer oxygen atmosphere. The Algolians, raised in this physical
environment, have a markedly superior musculature to that of the
typical Earthman. Colloquially, they are strong as rhinos.
"But the surrogate, of course, does not know this. She has a
powerful and indiscriminate mating drive. That's where the danger
lies! So I say to the customer—give yourself up now, while there's
still time. And remember: crime does not pay."
The radio crackled static, then hummed steadily. Garvey turned it off.
He had been taken, but good! He really should have inspected his
merchandise before accepting it. But the crate had been sealed.
He was out a very nice chunk of money.
But, he reminded himself, he had lots of money. It was fortunate he
had discovered the error in time. Now he would jettison the crate in
space, and return to Earth. Perhaps real girls were best, after all....
He heard the sound of heavy blows coming from the crate in the
after cabin.
"I guess I'd better take care of you, honey," Garvey said, and walked
quickly to the cabin.
A fusillade of blows rocked the crate. Garvey frowned and reached
for the de-activating switch. As he did so, one side of the heavy crate
splintered. Through the opening shot a long golden arm. The arm
flailed wildly, and Garvey moved out of its way.
The situation wasn't humorous any more, he decided. The case
rocked and trembled under the impact of powerful blows. Garvey
estimated the force behind those blows, and shuddered. This had to
be stopped at once. He ran toward the crate.
Long, tapered fingers caught his sleeve, ripping it off. Garvey
managed to depress the de-activating stud and throw himself out of
range.
There was a moment of silence. Then the surrogate delivered two
blows with the impact of a pile driver. An entire side of the packing
case splintered.
It was too late for de-activation.
Garvey backed away. He was beginning to grow alarmed. The

Algolian sexual substitute was preposterously strong; that seemed to
be how they liked them on Algol. What passed for a tender love
embrace on Algol would probably fracture the ribs of an Earthman.
Not a nice outlook.
But wasn't it likely that the surrogate had some sort of discriminatory
sense built in? Surely she must be able to differentiate between an
Earthman and an Algolian. Surely....
The packing case fell apart, and the surrogate emerged.
She was almost seven feet tall, and gloriously, deliciously
constructed. Her skin was a light golden-red, and her shoulder-
length hair was lustrous black. Standing motionless, she looked to
Garvey like a heroic statue of ideal femininity.
The surrogate was unbelievably beautiful—
And more dangerous than a cobra, Garvey reminded himself
reluctantly.
"Well there," Garvey said, gazing up at her, "as you can see, a
mistake has been made."
The surrogate stared at him with eyes of deepest gray.
"Yes ma'am," Garvey said, with a nervous little laugh, "it's really a
ridiculous error. You, my dear, are an Algolian. I am an Earthman.
We have nothing in common. Understand?"
Her red mouth began to quiver.
"Let me explain," Garvey went on. "You and I are from different
races. That's not to say I consider you ugly. Quite the contrary! But
unfortunately, there can never be anything between us, miss."
She looked at him uncomprehendingly.
"Never," Garvey repeated. He looked at the shattered packing case.
"You don't know your own strength. You'd probably kill me
inadvertently. And we wouldn't want that, would we?"
The surrogate murmured something deep in her beautiful throat.
"So that's the way it is," Garvey said briskly. "You stay right here, old
girl. I'm going to the control room. We'll land on Earth in a few hours.
Then I'll arrange to have you shipped to Algol. The boys'll really go
for you on Algol! Sounds good, huh?"
The surrogate gave no sign of understanding. Garvey moved away.
The surrogate pushed back her long hair and began to move toward
him. Her intentions were unmistakable.
Garvey backed away, step by step. He noticed that the surrogate
was beginning to breathe heavily. Panic overtook him then, and he
sprinted through the cabin door, slamming it behind him. The
surrogate smashed against the door, calling to him in a clear,
wordless voice. Garvey went to the instrument panel and began to
evacuate the air from the after cabin.
Dial hands began to swing. Garvey heaved a sigh of relief and
collapsed into a chair. It had been a close thing. He didn't like to
think what would have happened if the Algolian sexual substitute had
managed to seize him. Probably he would not have lived through the
experience. He felt sorry at the necessity of killing so magnificent a
creature, but it was the only safe thing to do.
He lighted a cigarette. As soon as she was dead, he would jettison
her, crate and all, into space. Then he would get good and drunk.
And at last, he would return to Earth a sadder and wiser man. No
more substitutes for him! Plain, old-fashioned girls were good
enough. Yessir, Garvey told himself, if women were all right for my
father, they're all right for me. And when I have a son, I'm going to
say to him, son, stick with women. They're all right. Accept no
substitutes. Insist upon the genuine article....
He was getting giddy, Garvey noticed. And his cigarette had gone
out. He resisted a tremendous desire to giggle, and looked at his
gauges. The air was leaving the after cabin, all right. But it was also
leaving the control room.
Garvey sprang to his feet and inspected the cabin door. He swore
angrily. That damned surrogate had managed to spring the hinges.
The door was no longer airtight.
He turned quickly to the control board and stopped the evacuation of
air. Why, he asked himself, did everything have to happen to him?
The surrogate renewed her battering tactics. She had picked up a
metal chair and was hammering at the hinges.
But she couldn't break through a tempered-steel door, Garvey told
himself. Oh, no. Not a chance. Never.
The door began to bulge ominously.
Garvey stood in the center of the control room, sweat rolling down
his face, trying desperately to think. He could put on a spacesuit,
then evacuate all the air from the ship....
But the spacesuits, together with the rest of his equipment, were in
the after cabin.
What else? This is serious, Garvey told himself. This is very serious.
His mind seemed paralyzed. What could he do? Raise the
temperature? Lower it?
He didn't know what the surrogate could stand. But he had a
suspicion it was more than he could take.
One hinge shattered. The door bent, revealing the surrogate behind
it, pounding relentlessly, her satiny skin glistening with perspiration.
Then Garvey remembered his revolver. He snatched it out of its
holster and flipped off the safeties, just as the last hinge cracked and
the door flew open.
"Stay in there," Garvey said, pointing the revolver.
The Algolian substitute moaned, and held out her arms to him. She
smiled dazzlingly, seductively, and advanced upon him.
"Not another step!" Garvey shrieked, torn between fear and desire.
He took aim, wondering if a bullet would stop her....
And what would happen if it didn't.
The surrogate, her eyes blazing with passion, leaped for him. Garvey
gripped the revolver in both shaking hands and began shooting. The
noise was deafening. He fired three times, and the surrogate kept on
coming.
"Stop!" Garvey screamed. "Please stop!"
Slower now, the surrogate advanced.
Garvey fired his fourth shot. Limping now, the surrogate came on,
her desire unchecked.
Garvey backed to the wall. All he wanted now was to live long
enough to get his hands on the factory operator. The surrogate
gathered herself and pounced.
At point-blank range, Garvey fired his last shot.
Three days later, Garvey's ship received clearance and came down
at Boston Spaceport. The landing was not made with Garvey's usual
skill. On the final approach he scored a ten-foot hole in the
reinforced concrete landing pit, but finally came to rest.
Eddie Starbuck hurried out to the ship and banged on the port.
"Ralph! Ralph!"
Slowly the port swung open.
"Ralph! What in hell happened to you?" Starbuck cried.
Garvey looked as though he had been wrestling with a meat grinder
and come out second-best. His face was bruised, and his hair had
been badly scorched. He walked out of the ship with a pronounced
limp.
"A power line overloaded," Garvey said. "Had quite a tussle before I
could put everything out."
"Wow!" Starbuck said. "Look, Ralph, I'm sorry to put you through this
now, but—well—"
"What's up?"
"Well, that damned surrogate still hasn't been found. The FBI has
ordered inspection of all ships, private and commercial. I'm sorry to
ask it now, after all you've been through—"
"Go right ahead," Garvey said.
The inspection was brief but thorough. Starbuck came out and
checked his list.
"Thanks, Ralph. Sorry to bother you. That power line sure kicked up
a mess, huh?"
"It did," Garvey said. "But I was able to jettison the furniture before it
smoked me out. Now you'll have to excuse me, Eddie. I've got some
unfinished business."
He started to walk away, Starbuck followed him.
"Look, boy, you'd better see a doctor. You aren't looking so good."
"I'm fine," Garvey said, his face set in an expression of implacable
resolve.
Starbuck scratched his head and walked slowly to the control tower.
Garvey caught a heli outside the spaceport. His head was beginning
to ache again, and his legs were shaky.
The surrogate's strength and tenacity had been unbelievable. If she
had been operating at her full capacity, he would never have
survived. But that last shot at point-blank range had done it. No
organism was constructed to take punishment like that. Not for very
long.

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General Teaching Tips for this Chapter

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Ideas for Activities and Assignments based on Opening Story

Ideas for Activities and Assignments based on M@W 2.1 (Nike)

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LO1: Explain company-wide strategic planning and its four steps.

LO1: Assignments and Activities

LO2: Discuss how to design business portfolios and develop growth

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LO2: Assignments and Activities

LO3: Explain marketing’s role in strategic planning and how marketing

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LO3: Assignments and Activities

LO4: Describe the elements of a customer-driven marketing strategy and

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LO4: Assignments and Activities

LO5: List the marketing management functions, including the elements of a

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LO5: Assignments and Activities

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Boston Pizza Comprehensive Case—Questions and Answers

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End of Chapter Materials

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3. Explain the roles of market segmentation, market targeting, differentiation, and

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Critical Thinking Exercises

1. In a small group, research a company and construct a growth-share matrix of the

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Online, Mobile, and Social Media Marketing: Hewlett-Packard PCs

Think Like a Marketing Manager: Apple

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Marketing by the Numbers

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End-of-Chapter Case: Dyson

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2. What are Dyson’s goals and objectives?

3. Does Dyson have a business portfolio? Explain.

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5. Is Dyson a customer-centered company? Explain.

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More Ideas for In-class Activities and Assignments Based on Chapter 2

Individual Writing Assignments