UNIVERSITY OF WYOMINGCOLLEGE OF BUSINESS

DEPARTMENT OF MANAGEMENT & MARKETINGMBAM 5235: MARKETING ANALYSIS AND STRATEGY

9:35 – 10:50 MW, BU 103FALL 2006

Instructor: Dr. Stacey Menzel BakerOffice: 214 COBTelephone: Office #: (307) 766-3734, Department #: (307) 766-3124Office Hours: 11:00 - noon M; 2:00 – 3:00 p.m. MW and by appointmentE-Mail: smbaker@uwyo.edu Web: www.uwyo.edu/smbakerFax #: (307) 766-3488

MY VIEW OF THE COURSE CONTENT

The Internet and information technology (IT) in general have greatly increased the ability of firms and customers to obtain and evaluate information. The increasing availability and access to information, as well as a proliferation of goods and services, has quickened the pace of change in business processes, firms, and markets. Though these changes have been swift and at one time were even feared to completely change the way marketers conceptualize and perform marketing functions, the fundamental purpose and concepts of marketing have not changed. Marketing exists to create customer value for a sustained competitive advantage. A firm, whether it operates in the business-to-consumer (B2C) or business-to-business (B2B) market has to have something that customers value or the firm will slip into obscurity over time.

Ultimately, organizational members who are involved in the demand creation and fulfillment function within any type of firm (Fortune 500, small business, non-profit, etc.) are engaged in marketing. To create customer value for a sustained competitive advantage, the firm must engage in three primary tasks: (1) information acquisition, management, and use, (2) customer and market analysis, and (3) marketing strategy development and implementation. My view of what marketing is and what marketers do is summarized in the figure on the next page. If a student of marketing understands how to integrate these components, s/he will understand what marketing is, and how marketing is managed within the firm.

Information technology (IT) provides marketers with valuable tools to capture, organize, and analyze data to assist marketing managers in making better decisions. IT also helps managers create and influence demand, and also deliver on marketing promises. That is, IT greatly facilitates and expands the marketer’s repertoire of demand-creation tools. I fundamentally believe that the tools should always be recognized as tools and should not be emphasized over sound strategic decision-making based on good information and appropriate analysis. I will approach the course with this perspective in mind.

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CUSTOMER VALUE FRAMEWORK FOR MARKETING_____________________________________________________________________________

_________________________________________________________________________________

Example Topics Covered in this Course for Each Phase of the Marketing Planning Process

Phase 1: Assessing market

potential Assessing market

performance (e.g., share of market, share of heart, customer retention, customer profitability)

SWOT analysis Competitors and

complementers Positioning analysis Category management Data gathering Data analysis Assessment of

information Presentation of

information

Phase 2: Segmentation Targeting and

customer differentiation

Positioning Brand perceptions Buyer influences,

decisions, and behavior

Customer value Customer preferences,

expectations, and satisfaction

Shareholder value Macro-environmental

analysis

Phase 3: Integrated Marketing

Communications Pricing Distribution Product Management Service Management Brand equity Competitive advantage Relationship marketing Marketing Orientation Strategic decision making

Specific objectives Financial plans Implementation controls

Macro-marketing issues, e.g., social responsibility

_________________________________________________________________________________Adapted from Baker, Kleine, and Bennion (2003), Journal of Marketing Education.

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Creating Customer Value Through Exchange for Sustained Competitive

Advantage

Phase 1:Information Acquisition, Management, and Use

Phase 3:Marketing Mix Design and Strategy Development and Implementation

Phase 2:Customer and Market Analysis

CATALOG DESCRIPTION OF THE COURSE

Understanding the essence of a market orientation is the central goal of this course.  The course uses various tools and secondary data sources to assess current market opportunities and threats, as well as develops an understanding of targeting customers and developing ongoing relationships with these customers.

COURSE OBJECTIVES

1. To provide you the opportunity to experience a process for developing marketing strategy.

2. To provide you with the perspective of a general manager or chief marketing officer who makes strategic decisions on targeting, retention, positioning, competitive advantage, integration, resource allocation, and identifying and exploiting growth opportunities.

3. To enhance decision-making skills by giving you the concepts and tools by which you can develop and defend your position.

4. To enhance verbal and written persuasion skills, the means by which your position will influence the outcome and results of decisions.

5. To assist you in making connections between the marketing philosophy that should permeate the entire organization and the marketing function that coordinates with the other functional areas of business.

6. To influence your understanding of how outside forces (e.g., customers, competitors, technology, economic conditions, regulatory issues) shape and contribute to a firm’s ability to deliver customer value.

7. To demonstrate a variety of tools that can be used to assist a manager in making sound strategic decisions.

The objectives will be achieved through a combination of guest speakers, brief overview lectures, and class discussion of readings, cases, and personal experiences, including those gained during the course of a semester. As such material assigned for class must be read before class. Interaction with your MBA peers, as well as individual or group study with me, will extend and deepen your knowledge and understanding, including the ability to apply what you know.

COURSE MATERIALS

Text: Peter, J. Paul and James H. Donnelly, Jr. (2007), Marketing Management: Knowledge and Skills, 8th Edition, New York, NY: McGraw-Hill.

Other readings as assigned.

SPECIAL ARRANGEMENTS

If you require or need special accommodations in this class because of a disability or if you have special issues which you would like to discuss, please discuss it with me as soon as possible. Alternatively, the MBA Office or the Dean’s Office is available for assistance.

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GRADING AND COURSE REQUIREMENTS Possible Points Points Earned

Exams (2 at 200 points each) 400Discussion Leader (with one other person) 100Professionalism 50Strategic Marketing Plan (group) 200*Total Points 750

* A 90% (A), 80% (B), 70% (C) scale will be used. Peer and instructor evaluations on individual performance will be used to weight group member’s grades as appropriate.

Exams

Exams will be take home and e-mailed to you. The exams will contain primarily short answer and essay questions and will be derived from class discussion, the text, readings, and any other course materials assigned. MAKE-UP EXAMS WILL BE GIVEN ONLY IN CASES OF DIRE NEED.

Cases

All students are expected to read and prepare for class discussion on every case we discuss. To prepare for case discussion you will do one of two things: (1) be a discussion leader or (2) be a discussion participant.

Discussion Leader: You will sign up to lead discussion for one case (with others in the class). Your job is to describe how you analyzed the case and lead a discussion around the questions provided either in the text at the end of the case or on the course syllabus. On the day the case is discussed, you may lead discussion through use of role playing; debates (point/counter-point); simulated board meetings; visuals, including advertisements, websites, data interpretation, products, PowerPoint; etc. Your job is to get the class involved and to ensure that the most relevant issues of the case are discussed. Most cases can be examined from any number of viewpoints, but please be sure and address the questions from the text or from me.

Discussion Participant: We will discuss a number of cases during the semester. Everyone is expected to participate in the discussion of these cases. If I deem participation is inadequate, I reserve the right to require written case write ups.

Grading: Your grade for the leading case/issue discussions will be as follows:

Discussion leader – 100 points evaluated on (a) the quality of your discussion points/questions, (b) your ability to lead and encourage participation, (c) your ability to identify key issues relative to the assigned topic, (d) your creative techniques in case presentation. Please provide me with a copy of any visual aids you use, as well as a copy of your groups’ interpretation of the answers to the case questions. Most groups will meet expectations and receive a B. An A will be assigned only in exceptional

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circumstances. A C or lower will be assigned when performance is below expectations. Peer evaluations will be conducted and members not carrying their share of the work will be penalized.

Professionalism

Since this is a graduate-level course and an MBA is a professional degree, I expect the highest level of professionalism in this course. The environment should be positive, respectful, and conducive to learning. Note: this certainly does not mean we will agree all the time – that’s boring and completely unrealistic! Any outside of class assignments, discussions in class (e.g., case discussion participation, guest speaker interaction, and demonstration of awareness and understanding of issues in assigned reading materials), and new contributions (e.g., sharing insights from a reading not assigned or from your own experiences) are used to assess this portion of your grade. Participation grades will be scored on a continuum and you will be competing with other students for this grade. Note: this does not mean that whoever talks the most, gets the best participation grade. Quality not quantity is used in this assessment. Attendance is also a component because if you are not in class, you are not participating.

Marketing Plan Group Project

This project is intended to give you exposure to the role and responsibility of a Chief Marketing Officer. We will be working with the Wyoming Business Council on this project. You will self-select a group of no more than four people to cooperate in the assignment. The focal point of the class will be the development of a marketing plan, including an environmental analysis, customer analysis, development of product objectives and strategies, and operational details of execution. A complete description of this project, which consists of a presentation (50 points) and a written report (20 page maximum, 150 points) will be forthcoming. Late assignments are not accepted. The plans are evaluated according to the quality of information obtained, the quality of analysis, the feasibility of the recommendations (do they flow from the analysis?), the evidence of understanding of frameworks, concepts, and methods discussed during the course, and the quality of the written and verbal presentation.

You should prepare a one page typed proposal that includes all team members’ input to be reviewed and approved at least by September 30. Peer evaluations will be conducted and members not carrying their share of the work will be penalized.

Academic Dishonesty & Classroom Decorum

Also known as “cheating,” academic dishonesty will not be tolerated in this class. Cases of academic dishonesty will be prosecuted in accordance with UNIREG 802 Rev. 2. Cheating in this course can result in an “F” in the course. In this course, academic dishonesty includes (but is not limited to) unapproved assistance on examinations, copying the homework of others, plagiarism or other use of published materials without complete citations, free-riding in group work, or fabrication of referenced information.

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CLASS SCHEDULE

*** Please note how the four fundamental philosophies of marketing (selectivity and concentration; customer value and satisfaction, differential advantage, principle of integration in the marketing program) are stressed throughout the course

DATE TOPIC AND READING

August28 (M) What is Marketing? Why is Marketing Analysis and Strategy an Important

Course for an MBA?Read syllabus

30 (W) What makes a strategy “good”?For Class Discussion Read:“Strategists of the Century” Journal of Business Strategy, Sept.-Oct. 1999“Six Principles of Breakthrough Strategy” by Constantinos Markides, Business Strategy Review, Summer 1999Portfolio Models – Appendix for Chap. 1 pp. 23-26

What are the fundamental philosophies and functions of marketing?

Background Reading: Chapter 1 in P&D

4 (M) Labor Day – no class

6 (W) What is a competitive advantage and how can I get one?For Class Discussion Read:“Customer Intimacy and Other Value Disciplines” by Treacy and Wiersema, Harvard Business Review, Jan.-Feb. 1993 “What Does It Mean to be Market-Driven?”, by George S. Day, Business Strategy Review, Spring 1998

11 (M) How does a marketing plan reflect if a firm is market-driven?For Class Discussion Read: “Developing Marketing Plans” Section 7 in P&D (p. 777)

13 (W) Attend Bixpo. See http://www.ncbr.com/events/?bixpo.

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18 (M) How do I analyze cases and assess trends?For Class discussion Read:Section II in P&DCases #1 (Abercrombie & Fitch) and #2 (McDonald’s)Pay particular attention to questions at the end of each case

20 (W) How do I analyze and think about the competition?For Class Discussion Read:“Clusters and the New Economics of Competition” by Michael E. Porter, Harvard Business Review, Nov.-Dec 1998“Marketing Myopia” by Theodore Levitt, Harvard Business Review, July-Aug 1960

****Find one example of a “tool” that can be used for competitor analysis (primary or secondary data type). Write a one paragraph description of the tool, how it can be accessed, and how it can be used to develop a competitive advantage. Be prepared to share your findings with the class. Feel free to discover tools related to your project company.

Background Reading: Chapter 2 in P&D

25 (M) What influences consumer behavior? satisfaction, value, decision-making, motivation, & loyalty

For Class Discussion Read: “Customer Participation in Creating Site Brand Loyalty” by Holland and Baker, Journal of Interactive Marketing, autumn, 2001, (be prepared to discuss the stickiness of a website, perhaps related to your project company – think about what consumer motivations designers have assumed and how to create loyalty for those sites)

Background Reading: Chapter 3 in P&D

27 (W) No Formal Class Meeting – Make Progress on Group Projects on Monday October 2, submit a formal one page plan of attack for gathering information

October2 (M) How do I assess market potential?

Assigned Case #4 Computer Visualization Questions to think about for all students:

1. Describe 3DV-LS’s business position. What is the major problem facing 3DV-LS, and what are the factors contributing to the problem?

2. Identify 3DV-LS’s strengths and weaknesses, considering not only the industry it serves but also the construction and transportation industries it could potentially serve. As part of your analysis, consider Rogers’ list of product characteristics that affect product adoption and diffusion.

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3. Evaluate the market attractiveness of the construction and transportation industries for 3DV-LS. In particular, evaluate the demand for computer visualization, customers, and competitors.

4. Combining the business position analysis and market attractiveness analysis already completed, use The Market Attractiveness—Business Position Matrix (also known as the GE Model) (Aaker 1995) to more precisely determine the opportunity presented by the construction and transportation industries for 3DV-LS.

5. Given the conclusions drawn from The Market Attractiveness—Business Position Matrix, should 3DV-LS enter the construction and transportation industry markets or not? Why or why not? If so, how should 3DV-LS position its products and services?

4 (W) What Influences Business Behavior?Read “Business Marketing: Understand What Customers Value,” by Anderson and Narus, Harvard Business Review, November-December 1998

Background Reading: Chapter 4 in P&D

9 (M) What is market segmentation and how do I do it?Segmentation & GeodemographicsAssigned Case #6: ClaritasQuestions to think about for all students: See text at the end of the case

For Class Discussion and Preparation Read:

“Product Differentiation and Market Segmentation as Alternative Marketing Strategies” by Wendell R. Smith, Journal of Marketing, July 1956 (The classic article on segmentation)“Rediscovering Market Segmentation” By Yankelovich and Meer, Harvard Business Review, February 2006

Background Reading: Chapter 5 in P&D

11 (W) What is market segmentation and how do I do it? (contd.)Assigned Case # 8: Pfizer, Inc. Animal Health Products Questions to think about for all students: See text at the end of the case

Same Readings As 10/9Apply

16 (M) How do I decide on a target market? How do I position my company/its products within that target market?Assigned Case # 14: Wind Technology Questions to think about for all students:1. Should Wind Technology compete in the HVPS market? Explore the

advantages and disadvantages.2. Which segments should the company target?3. How should the company and its product be positioned?

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18 (W) Take Home Exam Distributed – Exam Due on Saturday, October 21 by midnight (no exceptions) – No class meeting 10/18 – work on exam

23 (M) Product and Branding Strategy For Class Discussion Read:“Brand Waves: Building Momentum Throughout the Ownership Cycle” by Peter Farquhar in Marketing Management, Fall 1999“Measuring Brand Equity Across Products and Markets” by David Aaker, California Management Review, Spring 1996“Customer-Centered Brand Management” by Rust, Zeithaml, and Lemon, Harvard Business Review, September 2004

Background Reading: Chapter 6 in P&D

25 (W) Product and Branding StrategyAssigned Case #9: Snacks to Go Questions to think about for all students:

1. What were Sathers’ objectives in producing Snacks to Go?

2. Explain and evaluate the product-market selection strategy employed by Sathers in developing Snacks to Go. (Base your analysis on the product-market strategy matrix for new and existing products and markets.)

3. Identify important information about snack nuts consumption that Sathers gained from its pre-introduction marketing research.

4. Describe and evaluate the Snacks to Go introduction strategy as it was implemented in the Southeast.

5. Evaluate the market performance of Snacks to Go, at both the retailer and distributor levels.

6. Identify the strategic alternatives available to Jill for the Snacks to Go product line. Provide advantages and disadvantages for each alternative.

7. What should Jill recommend for the Snacks to Go product line? Develop implementation plans for the strategy that you suggest.

30 (M) Innovation and New Product DevelopmentFor Class Discussion Read:“Americas Creativity Crisis” by Richard Florida, Harvard Business Review, October 2004“The New Rules for Bringing Innovations to Market” by Bhaskar Chakravorti, Harvard Business Review, March 2004Background Reading: Chapter 7 in P&D

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November1 (W) Integrated Marketing Communication

Assigned Case #13: “Harley-Davidson.com”Questions to think about for all students: See end of case and or question 8 you’ll need to perform some calculations based on data in exhibits 1 & 2 – Also answer the following questions: 9. What is the Demographic profile of Harley owners in the U.S. as presented on

its Web site? 10. What are the implications of the demographic profile for marketing strategy?

Background Reading: Chapters 8-9 in P&D

6 (W) Distribution StrategyRead “Strategic Channel Design” by Anderson, Day, and Rangan, Sloan Management Review, Summer 1997

Background Reading Chapter 10 in P&D

8 (W) Distribution StrategyAssigned Case # 17: Amazon.com

Questions to think about for all students: See questions at end of case

13 (M) Pricing and ServicesFor Class Discussion Read:“Capture and Communicate Value in the Pricing of Services” by Berry and Yadav, Sloan Management Review, Summer 1996“Welcome to the Experience Economy,” Harvard Business Review, July – August 1998

Background Reading Chapters 11-12 in P&D

15 (W) Pricing and ServicesAssigned Case #25: American Online – all students consider the following questions for class preparation:1. What is AOL’s financial position at the time of this writing?2. Discuss the company’s expansion, pricing, and the purpose of the flat rate.

How has AOL”s pricing strategy affected its customers, and what are its implications for the companies performance? How did the customer base expansion strategy affect AOL’s financial position?

3. How did operational problems affect the public image of AOL? What was AOL’s response to legal and operational problems? Was it effective?

4. What happens when a firm prices ahead of its ability to satisfy an increase in demand?

20 (M) In the Interests of Customers and SocietyFor Class Discussion Read:

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“Selling to the Poor” by Hammond and Prahalad, Foreign Policy, May-June 2004.

Background Reading Chapters 13 in P&D

22 (W) No Class – Have a super Thanksgiving Break!!!

27 (M) Marketing Plan Group Q&A Session Assign Take Home Exam #2 – Due Friday, 12/1, by Midnight e-mailed to me

29 (W) Marketing Plan Group Q&A Session

December

4 (M) Present Marketing Plans – provide me with copies of visuals [Class meets 9 a.m. – 10:50 a.m.] Wyoming Business Council Members and Your Individual Businesses Should be Invited – Group Leaders Should Make These Invitations

6 (W) Present Marketing Plans – provide me with copies of visuals[Class meets 9 a.m. – 10:50 a.m.]Wyoming Business Council Members and Your Individual Businesses Should be Invited – Group Leaders Should Make These Invitations

Final: Tuesday, December 12 turn in final copy of written plans by 5:00 p.m.

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