Question

Example scenario:

“A sneaker company lowers prices after sales drop.”

Scenario 1: New Product Launch
A local smoothie shop is introducing a new protein smoothie. The owner already knows how to make it and has the ingredients, but sales are slow because customers don’t know it exists.

Scenario 2: Declining Sales
A popular clothing brand notices that teen sales have dropped, even though the clothes are good quality. Competitors are getting more attention on social media.

Scenario 3: Pricing Problem
A gaming accessory company releases a new controller at a high price, but customers say it’s too expensive compared to similar products.

Scenario 4: Wrong Target Market
A shoe company runs TV ads during daytime shows, but most buyers are students and young athletes who are rarely watching TV at that time.

For EACH scenario, students must:

Identify which business function is most involved

Explain how marketing plays a role

Predict what could happen if marketing is ignored

Final Question (Reflection):

“Which business function do you think is most important? Defend your answer.”

Answer 1

Scenario 1 — New Product Launch (protein smoothie)
- Most involved business function: Marketing (product launch & promotion).
- How marketing plays a role: marketing creates awareness and interest — naming/positioning the smoothie, in-store signage, sampling, menu placement, social media posts, email/loyalty offers, local partnerships (gyms, trainers), and targeted promotions to show value and build trial.
- If marketing is ignored: customers remain unaware so sales stay low despite having the product and ingredients; inventory/ingredients may be wasted, revenue opportunity lost, and competitors could capture the niche.

Scenario 2 — Declining Sales (teen market losing interest)
- Most involved business function: Marketing (market research, brand management, social media).
- How marketing plays a role: marketing diagnoses why teens are disengaging (surveys, social listening), adjusts messaging and channels, refreshes brand content, partners with influencers, launches teen-focused campaigns, and repositions styles to match trends. It also informs product teams on design adjustments.
- If marketing is ignored: the brand will likely continue losing market share and relevance among teens, sales will decline further, and long-term brand equity with that cohort may be permanently damaged.

Scenario 3 — Pricing Problem (controller priced too high)
- Most involved business function: Pricing strategy (cross‑functional: Finance + Marketing/Product).
- How marketing plays a role: marketing measures perceived value vs. competitors, segments customers by willingness to pay, tests price points/promotions, communicates unique features that justify a premium, or recommends bundling/financing or value-based adjustments. Finance models margins and elasticity; product teams may adjust specs.
- If marketing/price strategy is ignored: the product will underperform, inventory will pile up, revenue and ROI will suffer, and the company may need steep discounts later (hurting margins and brand positioning).

Scenario 4 — Wrong Target Market (TV ads shown when target isn’t watching)
- Most involved business function: Marketing (media planning and audience targeting).
- How marketing plays a role: marketing defines target audiences and media habits, selects channels and timing (social platforms, streaming, campus events, sponsorships), tailors creative and call-to-action for students/athletes, and tracks performance to optimize spend.
- If marketing is ignored: ad spend will be wasted on irrelevant viewers, campaign ROI will be poor, and the company will miss the customers who actually buy — sustaining low sales despite advertising costs.

Final reflection — Which business function is most important?
- Answer: Marketing is the most important single function for most businesses.
- Defense: marketing discovers and defines customer needs, creates demand, positions products, sets price perception, chooses distribution channels, and drives revenue — without customers and sustainable demand a firm cannot survive regardless of product quality or operational efficiency. Marketing also supplies critical insights that guide product development, sales tactics, and financial planning.
- Caveat: no function works in isolation. Operations, finance, product development, and HR are essential supports — but marketing is the central link between what the company offers and the market that buys it.