Marketing Management (MKMR 403): Core MBA Program … · Marketing Management (MKMR 403): Core MBA...

Marketing Management, MKMR 403, CWRU, Professor Hunter 1

Marketing Management (MKMR 403): Core MBA Program Syllabus Rev. 1/13/09 The Weatherhead School of Management, Case Western Reserve University Spring 2009 Professor Gary K. Hunter, MBA, Ph.D. Email: [email protected] Profile: http://wsomfaculty.case.edu/hunter/ Marketing Office Administrative Assistant: Ms. Retta Holdorf: 216-368-2144

Department of Marketing and Policy Studies Weatherhead School of Management Case Western Reserve University224 Peter B. Lewis Building: 216-368-2847 Cleveland, OH 44106

Class Meeting Times & Locations: Sec. 100 (#6661): FT MBA Mondays 8:30 -11:00 AM PBL Room 401 Sec. 101 (#6663): FT MBA Wednesdays 8:30 -11:00 AM PBL Room 401 Sec 102 (#6665): PT MBA Tuesdays 6:00 - 8:00 PM PBL Room 106 Office Hours: Mondays and Wednesdays 12:00–1:00 PM and by appointment Course Objective The major objective of this course is to provide you with a solid foundation for applying the concepts and tools of marketing management. More specifically, at the end of the course you should be able to:

• recognize the importance of marketing within a firm’s major strategic processes (e.g. product development, supply chain management, and customer relationship management);

• analyze marketing strategies using a strategic marketing planning process and recognize probabilistic consequences of relevant alternatives; and

• understand the value associated with different marketing strategies and develop processes that create, capture, deliver, and sustain value.

Other related objectives of this course and its design are to:

• improve your analytical skills through exposure to qualitative and quantitative techniques that help marketing managers understand value from the perspectives of target markets whose perceptions and preferences vary;

• advance your ability to employ process thinking skills that integrate marketing with other business functional specialties (e.g. finance, accounting, operations) thereby improving your skill at creating, capturing, delivering, and sustaining value across markets your firm serves;

• enhance your skills to function effectively as a member of a team in a business environment through the completion of team assignments (case write-up and a market simulation) which will include peer evaluations of each team member’s efforts;

• refine your communications skills through the conduct of deliberate oral team presentations and ongoing class case & content discussions, and

• appreciate relevant ethical concerns associated with marketing and sales planning, implementation and control in the sustainable enterprise.

As a core MBA course, the material covered is broad, representing the marketing knowledge most business managers expect when hiring ‘newly-minted’ MBA’s. At a challenging pace, we’ll discuss major facets of marketing from the perspectives of consumer, business, and service sectors.


Teaching Vehicles This course will provide you with a mix of: (i) critical analysis and tools, (ii) applications, and (iii) communication skills. Much of the learning is expected to occur by participation. In particular, we will rely heavily on both the case method and on experiential learning. Case studies provide one of the major vehicles for applying marketing concepts and theories. As you may have learned in previous courses, case analysis requires critical evaluation (including interpretation) of both facts and logic to allow effective case discussions. Cases also require that you be prepared and actively involved (communication) in class discussions. Cases allow us to learn, from written scenarios, about company situations and predicaments. These scenarios and predicaments are very well defined and focused by the case writer and/or by the preparation questions provided for the case. To get some hands-on experience and exposure to marketing and brand management decisions, we will engage in a team project: a marketing simulation game (PharmaSim). The PharmaSim simulation experience provides an excellent opportunity for you to critically analyze marketing situations, demonstrate your skills in demonstrate your understanding, creation, delivery, and sustainment of value, and exercise your decision-making skills. The project gives you a chance to see how marketing works in the consumer packaged goods industry. Please see the section on PharmaSim for more details. Course Readings

(a) Packet of cases and readings. You can purchase the CoursePack www.Xanedu.com. If you haven’t used their service previously, you’ll need to register on their site and then you can purchase access to a paper copy that will be shipped to you and/or a digital copy that you can print. Here are the specific steps you need to follow to access your CoursePack:

1. Open the XanEdu "Login/Register" page at: http://www.xanedu.com/login.shtml?PackId=295541 2. If you have previously registered for another CoursePack, log in. If not, click the "Student Registration" button under the "New Users Register Here" banner. Complete the registration page, and click Continue. 3. Confirm your CoursePack Selection, and complete the purchase form. Choose one of these options for your CoursePack delivery:

Option 1: Digital access plus packaged print copy Price: $157.15 (price does not include shipping) You will have immediate access to your Digital CoursePack. Your personal print copy will be shipped to you within five business days from purchase of your CoursePack. Shipping of a print copy is for valid U.S. addresses only. If you are outside the U.S., choose Option 2 below. Option 2: Digital access with desktop printing Price: $127.50


You will have immediate access to your Digital CoursePack. You will not receive a printed copy of the CoursePack. You can print your CoursePack yourself, if your system hardware and connectivity supports downloading and printing very large files from the Internet. If you are not sure if your system supports this, Xanedu recommends that you select option #1 above.

4. After completing the purchase, you will be taken directly to "My XanEdu" where you can access your digital CoursePack. If you have any problems, please contact XanEdu Customer Service at 1-800-218-5971.

(b) PharmaSim: A Brand Management Simulation, Stuart W. James, Thomas C. Kinnear,

and Michael Deighan, Interpretive Software. (Each student must purchase a license online at www.interpretive.com/students around $40, but more details will follow on when you’ll need to purchase it during class. You should wait until about the third class session to purchase the software and manual). This is the simulation that we will be using later in the semester.

(c) Class discussion notes (to be posted periodically throughout the semester on BlackBoard) contain slides that outline many of the fundamental frameworks, concepts, and theories relevant to marketing management. Use them to help prepare for class discussion and as a means of structuring your knowledge about marketing management and to facilitate your approach to marketing management decision-making in the course simulation (...and beyond!).

(d) Optional textbook(s): While the required readings, class discussion notes, and in-class discussions will cover all the material that you need to know to excel in the class, some students might benefit from reading chapters from two textbooks for which I have listed the chapters that are relevant to each class meeting on the course outline. One is a condensed version of the other. The condensed version (Framework for Marketing Management, 4th edition, ISBN-10: 0136026605 / ISBN-13: 978-0136026600, about $122 new or $78 used) is a concise adaptation of the gold standard marketing management textbook (Marketing Management, 13th edition, ISBN-10: 0136009980 / ISBN-13: 978-0136009986, about $130 new or $80 used) for students “who want authoritative coverage of current marketing management practice and theory.” Both books are co-authored by Phillip Kotler and Kevin Keller who are renowned marketing scholars and consultants. If you want the ‘bare bones’ of marketing management presented in a concise way, I’d recommend the Frameworks book; whereas, the other text is more encyclopedic and makes for a great desk reference. It’s not a bad choice for anyone who wants a single textbook reference on marketing management for this course or beyond. The course focuses on application of material, so you don’t need to memorize or even purchase either book to do well in this course. It’s also worth noting that we cover material that is not presented in either the same detail or manner as that presented in these reference texts. The readings are intended as resources for you to build upon what you’ve already learned about marketing. There will be application-oriented questions on the midterm exam, which require you to apply concepts and frameworks from the required readings, including cases, and class discussions—and the goals of PharmaSim include applying and sharing your learning.


Grades Midterm exam 20% Final Exam 20% Individual In-class contribution (throughout semester) 20% ‘Pitch Yourself’ exercise (Summary + 30 sec video) 5% Team case write-up (peer-indexed at the end of the semester) 10% Team write-up of PharmaSim project (10 pages, peer-indexed) 25%

For all written and oral work, doing good work earns you a B. That means doing the assignments at the 80 - 89 percent level for high potential students such as those who are in this class. Clearly exceptional work is deserving of an A. A-level work must exhibit exceptional insight, excellent organization, and have some other qualities that merit special note. For project work (the simulation), I expect you to conduct and present projects that are of the same quality or better than you would present at work. Clarity and coverage are attributes that are valued in the workplace (also grammar, spelling, etc. count in the business world). You may have the best ideas in the world, but if you cannot communicate them effectively, it is unlikely that people will take you seriously. Your ideas should be clearly explained and coherently presented. Good communication, whether written or oral, includes presenting your ideas logically and providing rationale to support your ideas. Your assignments should also look good. To get an A on the project, you have to have excellent content and excellent presentation of your ideas. As you know, this is what you need to do well in your career as well.

Course Components (Graded on individual work)

Midterm and Final exams The midterm and final exams will assess your understanding and ability to integrate course materials (e.g. the application of marketing concepts and models to solve marketing problems). Exams will consist of individual work. The exams may include both a closed-book portion and an open book/ open notes component. They will consist of application-oriented questions that focus on the readings and the cases covered in class. For example, I may distribute an exam case one week before each exam, and then provide questions particular to that case during the exam. Alternatively, I may distribute materials from cases or materials we’ve covered and ask you to interpret and apply what you’ve learned to specific situations. The exams might also consist of elements of each of the aforementioned examples (e.g. you could have both an exam case distributed before the exam and specific questions administered during the exam period). You will be able to use your laptop to complete the exam, but may not contact your classmates or anyone else for help. Doing so would be in direct violation of the Honor Code. The better you know the material, the less time the exam will take (e.g. you won’t have time to learn everything you need to know during the exam period). More specifics will be provided during class discussions, particularly during the class session preceding the exam.


‘Pitch Yourself’ Exercise For the pitch yourself exercise, each student will:

(1) Interview someone with experience at one of your ‘target’ firms or in your target industry to find out what that firm values in its employees. This person could be a previous boss, a business or social acquaintance who has experience, or if need be, a classmate who has knowledge about that firm or industry.

(2) Reflect on how your personal skills match up with the firm’s or industry’s needs. (3) Read “How to Make Your Case in 30 Seconds or Less” and develop an elevator

pitch that opens the door to further consideration by an employer in that firm or industry.

(4) Write a written summary to be submitted during the class. In addition to writing out your 30-second pitch, your summary should outline your market research efforts and address the questions outlined in “The Elevator Pitch” in the reading “Pitch Yourself!” The summary should be 2-pages (single-spaced, 12 point font) text (please use double sided copy/print). You should also submit a digital video recording—don’t worry about media quality so much (focus on the pitch).

(5) Come to class prepared to show dazzle your classmates in 30 seconds or less. (6) Have fun with the exercise! There’s no job on the line for this, it’s just practice!

Individual In-class contribution You are neither expected to have all the right answers in every class nor to dominate every in-class discussion. However, you are required to be prepared and contribute regularly to our class discussion. Learning depends heavily upon thorough and lively participation. The primary emphasis should be on quality participation, not quantity. The quality of participation, as reflected in careful reading of cases and assigned material, thoughtful reflection, and clear and concise comments, is extremely important. However, one cannot make quality contributions without some quantity. It is particularly important that your comments fit into and build on previous comments. This requires that we all listen carefully to each other. Therefore, from time to time it may be necessary for your classmates or me to keep the discussion moving (i.e., please don’t take our moving the conversation along or keeping it on track personally). Your class participation should demonstrate:

1. evidence of careful preparation of cases and readings; 2. clarity and conciseness of your comments and recommendations; 3. convincing analysis to support your recommendations.

The quality of the discussion in class will depend on how well prepared you are, and how willing you are to share the results of your preparation with the class. Class contribution will be assessed based on quality and consistency of effort on a weekly basis. Attendance alone is not making a contribution. Each student can ascertain the adequacy of her/his contribution by occasional discussion with the instructor. However, careful self monitoring using the following criteria for effective classroom contribution may be useful:

• Do comments generate discussion, or do they tend to be ignored by others?


• Do others appear confused when the participant makes a point? • Are others left with a "so what" feeling, or does the discussant reach a conclusion

that is clearly understood and appreciated? • Do comments develop on evidence from the assignment, or do they just relate what

everyone already knows? • Are participants able to clarify important aspects of previous comments and relate

them to the problems and topics under discussion? • Do comments distinguish among different kinds of data, facts, opinions, beliefs, and

theories—in their construction? You are expected to be prepared (actively involved) for every class. Since I may from time to time call on individuals even when their hands are not raised, you should let me know before the start of class if some emergency has made it impossible for you to be prepared adequately for that class. Naturally, there are students who do not feel comfortable contributing verbally in the classroom. We should all try to make the classroom atmosphere as congenial as possible to assist all of our colleagues in the class participation process. This does not, however, mean that you must agree with every comment offered by your classmates (i.e., it’s ok to disagree). Students are also encouraged to meet regularly outside of class to discuss assignments before the scheduled class activity. This help students in the overall preparation of class material and give students more confidence to contribute.

Course Components (Graded on team work indexed by end-of-semester peer evaluations)

Team Peer Evaluation Form Toward the end of the trimester, you will evaluate each member of your team. Evaluations are due on the last day of class. These evaluations will be used to adjust grades for the team projects if necessary. Evaluations are strictly confidential. Team Case write-up For the L’Oreal of Paris case, your team will be required to submit a three-page (maximum, please do not go over this limit, but you can go under the limit) write-up that summarizes your responses to the case questions provided in this syllabus. Your team case write-ups should include any underlying assumptions associated with your analysis. You may use 3 additional pages to include any supporting materials such as charts, tables, and figures following the 3-page (single-spaced, 12 point font) text summary, but all inclusive, the submission should be less than 6 pages. Team Simulation (PharmaSim) PharmaSim is a computer simulation based on the over-the-counter cold medicine industry. The exercise focuses primarily on brand management activities and is designed to teach concepts in an active and stimulating environment. As a member of a brand management team, you will make decisions regarding product mix, pricing, distribution, advertising, and promotion. These decisions will then be incorporated into a computer-simulated market to reveal how both you and your competition performed. Decisions cover a time-span of 10 simulated years, allowing you to observe both the short-term and long-term effects of your decisions.


Competing in the PharmaSim marketplace will require complex analysis and decision-making. As you work through the simulation and become familiar with the program, new issues and problems will arise to challenge you. These will include reformulating your product and introducing new brands. The level at which you play the simulation is held constant—you are appointed at the brand manager level (no time is given for you to work your way up through assistant brand management levels). I did this to give you maximum flexibility in decision making from the start of the game (i.e., as MBAs you are more advanced than the introductory levels). You will cover issues such as targeting advertising and consumer promotion to particular customer segments, offering trade promotion and sales force to different distribution channels, and using volume pricing discounts. Of course, the competition will be following their own strategies and reacting to your decisions. Although the simulation always starts from the same position, each game will proceed on a unique course depending on the strategy each team chooses and the inputs provided for each period. This will allow competitive comparisons and illustrate how markets can evolve differently. Thus, while you do not compete directly with your classmates, many of the outcomes you obtain (e.g. profits and stock price) may be compared—and clearly will provide ample opportunity for teams to earn “bragging rights”—and potentially higher grades on the simulation. Using PharmaSim is an exciting and rewarding experience. From the exercise, you will gain a practical understanding of brand management decisions at the highest level of the organization and you’ll experience how various factors interact and affect one another. By analyzing information, making decisions, and observing the results, you will experience firsthand the challenges and rewards of marketing. The PharmaSim manual. The manual is the case itself and it provides details about the market that you will need to thoroughly understand to develop your brand management strategy and the inputs to the simulation represented therein. Section 1 describes the case. Section 2 describes how to play the simulation, and the last half of section 2 (pages 32-73) describes all of the available information that can be accessed either free or for some fee. Note that all of the reports are free in the first period, but after that you will need to decide if you want to purchase the research reports that require a fee. Sections 3-4 provide tips and concepts that will help you develop a framework for decision-making and aid in analysis. PharmaSim. After the in-class discussion of the case, students will be given the opportunity to run the simulation individually through period 3 with as many replays as desired. After groups are formed, teams will work independently per their own schedules to complete the overall assignments. Keep in mind that material covered during the class may be helpful to your success in the simulation, so you might benefit from considering how different learning from the cases and class discussions could apply to the PharmaSim simulation—and, of course, revise your strategy accordingly. Before you or your group makes any decisions, it is important that you carefully consider the available information and analyze the case just as you would for any case. The decisions to be made are described in the case and include: a manufacturer’s suggested retail price and the level of any volume discounts as well as the discounts you give to wholesalers; an


advertising budget, selected advertising agency, and the relative emphasis on four types of ad messages; a promotions budget with allocations to cooperative advertising and three types of consumer promotions; and the sales force, including how many sales people allocated to five different types of retail stores as well as to wholesale and indirect support functions. As in subsequent periods, your total budget across advertising, promotions, and sales will be constrained by a total available budget. (This annual budget may change in subsequent years, and any unspent budget will be added to profits.) For the PharmaSim written assignment #1, your team will need to provide a written description of what your initial strategy will be and your rationale for those decisions. For each of the decisions, including the ones about price, indicate your reasons based on your analysis of the current strengths and weaknesses of Allstar and its brand Allaround, the case, and your overall strategy. In effect, this is a brief version of the type of paper you would write if you were analyzing Allstar like other cases in the course. One purpose of the assignment is to force you to think critically about the case, carefully consider and analyze the available information, and commit yourselves to an initial plan before you get caught up in the details of making and inputting decisions and getting your results. It is easy to lose one’s perspective once one begins to make the various decisions and confront the results. In this assignment, you should also consider what measures of effectiveness you consider important and why they are important. The measures may be included in various company reports, market results (both free reports and those for which a fee must be paid), and the consumer survey. For each, describe your theory, rule of thumb, and/or hypothesis about what marketing tactics influence the measure and the nature of the relationship. The paper should be no more than 4 pages long (double spaced, 12 font, 1” margins). The paper is due per the attached schedule. Once you have run the first three periods and written your 4-page summary, you are ready to run the rest of the simulation. Each team will identify a team leader who will then be the only person who can enter decisions for the team on the PharmaSim site. Choose your leader wisely because whatever s/he inputs represents the team’s final decision for each period you advance! Some teams have made this a ‘pizza party’ weekend event in past classes (some teams with good results others with poor results) as you will be able to advance through the simulation to its conclusion. Others like to space out the decisions and set up a schedule for team meetings that occur throughout the semester. You have the flexibility to manage your brand however you see fit—it’s the results you produce that matters most in the end. Process is up to you! For PharmaSim written assignment #2, your team will describe your decisions over the 10 years and how they changed over that period. While it is not necessary to describe every change you made in each period (in fact, it gets very boring if you do!), you should give an adequate description of what you tried to accomplish, why you did what you did, what results you found, and how you then reacted, etc. What happened that confirmed what you thought? What surprised you? What worked and what did not? What variables did you monitor that proved useful; what was not useful? Be sure to describe what information you used and how it helped, along with the details of any analyses you did.


In this paper, you will also discuss what you learned from the PharmaSim exercise. Aside from your decisions and strategy for your brands for this company and why you did what you did (above), what would you do differently if you could replay the simulation? More important, what conclusions have you learned about marketing from all of this? Thus, some of these lessons may focus on this simulation, and others focus on generalizations about marketing and marketing decision making in general. The best papers will offer an analysis of what happened and why based on specific principles learned in this (and/or other business courses). The PharmaSim written assignment #2 is due the last day of class. The maximum length for the group paper is 10 pages inclusive of text and appendices/exhibits (double spaced, 12 font, 1” margins). Graphs and tables should be large enough that someone over 40 (the consensus age at which eyesight declines) can read them! Feel free to use a few bullet points, but the paper should not look like an outline. For the results component of the PharmaSim grade, primarily group results will be assessed in terms of net income (cumulative) and stock price. We all know higher returns and stock prices are better, the objective of the simulation and the course (even business school itself) is to help you discern what drives them (hint: marketing decisions are a major component).

Hints and Other Miscellaneous Things to Consider on the PharmaSim Exercises 1. Students will need to be online when you use the software. 2. Remember that each period is an entire year. Thus, many things can and will happen during that

year (e.g., inflation, consumer attitudes, changes in competitors’ actions and success, distribution results).

3. Be sure to print out any information you’ll want to refer to in the future. While the Performance

Summaries and some other screens have “history” buttons, not all screens have this option. 4. This simulation is not meant to be an exercise in which you try a whole bunch of different things

and finally optimize in a final run. You replay periods 1-3, but do not replay the group simulation, periods 4-10. For the group assignment, each period input is meant to be a one-time activity in which you try to figure out strategy and tactics ahead of time, make your decisions, learn from your results, and react to them in the next period.

5. Do not buy any research reports in Period 0 when you are practicing running the simulation prior

to your group effort. These reports are free and paid for by previous management. When playing Period 1-3, the simulation is set up to automatically purchase reports and this expense is charged to your budget. Once you advance to Period 4 (and replays are no longer allowed), you will have the option to purchase reports or not.

6. I recommend that you do buy a lot of research information. Assess each piece of information for

how helpful it is (or could be), how to use this information, and how often you should buy the information. If you buy the survey, remember that you can segment the data in many ways each


time you buy the survey information. My recommendation is to err on buying too much too often. Although purchasing the reports is a budget expense, making decisions without information can be far more costly in the long run.

7. Make a plan about what information to use and how to make various decisions. These theories,

hypotheses, and rules of thumb can help you to structure a very complex task. These theories can come from textbooks, class, your own experience, the case description, etc. Be flexible in your plan and adapt it as you advance through the 10 periods.

8. For each period, keep track of not only what you did but also your rationale and what you

concluded from the results. Perhaps one member of the group should be responsible for this. Adopt specific goals and monitor them to construct and flesh out a theory of what works and why. This will help you when you finish and have to re-construct all this for the final paper.

9. Some students have not realized that, if sales increase beyond production capacity, you will

automatically add some fixed amount of capacity that will more than cover sales. 10. Many of us have trouble remembering what type of product and what benefits are offered by

each of Allstar's brands and which competitor brands do what and compete with each of Allstar's brands. I recommend that you write this out and keep it on a card or piece of paper so that you do not have to keep checking up on this as you ponder decisions.

11. It is easy to generate a lot of paper with this exercise. Be prepared if you are working at home

on your own computer and printer. Class Room Policies While class is in session (e.g. case discussion and lecture), please refrain from using you laptops other than to take notes or research related topics (i.e., no ‘random’ web surfing, e-mail, etc.). Additionally, you should display your name cards provided throughout the semester. These actions will allow for optimal participation for each student. Failure to do this may result in a reduced grade for class participation. Honor Code All students in this course are expected to adhere to university standards of academic integrity. You are responsible for familiarizing yourself with the University Honor Policy. All students in this course are expected to adhere to university standards of academic integrity. Cheating, plagiarism, and other forms of academic dishonesty will not be tolerated in this course. This includes, but is not limited to, consulting with another person during an exam, turning in written work that was prepared by someone other than you, and making minor modifications to the work of someone else and turning it in as your own. Ignorance will not be permitted as an excuse. If you are not sure whether something you plan to submit would be considered either cheating or plagiarism, please do not hesitate to ask me. Any cheating, plagiarism, or other forms of academic dishonesty will result in a grade of “F” for this course, as well as the notification of the appropriate Weatherhead School of Management authority.


About your instructor Dr. Gary Hunter received his BS from the United States Military Academy at West Point, his MBA from the University of Tennessee, and his PhD in marketing from the University of North Carolina at Chapel Hill. His research is published in the Journal of Marketing, the Journal of Personal Selling and Sales Management, the International Journal of Research in Marketing, and as award-winning publications in national conference proceedings. Two of Professor Hunter’s published articles, co-authored with Bill Perreault, on sales technology, sales automation, and sales-based CRM were singled out for awards based on their contributions to marketing knowledge. Their JM article earned the 2008 Excellence in Research Award for the best paper published in 2007 by the AMA’s Selling and Sales Management Special Interest Group, while their JPSSM article earned the 2007 James A. Comer Award as the best theory/methods paper published in JPSSM in 2006. Gary currently serves on the editorial board for the Journal of Personal Selling and Sales Management where he earned the Best Reviewer Award in 2004.

Professor Hunter combines career experience with global multinationals and academic rigor to bring a depth of insight to sales and marketing management concerns. Recent work focuses on the effective use of sales and information technology and how firms can improve their relationships with business constituents. Another area of work investigates business-to-business exchanges more broadly, including corporate procurement processes, customer business development, and other B2B boundary management concerns. In a third area, Gary’s research aims to improve the statistical validity of interpreting findings from marketing research through the use of advanced modeling techniques.


Course Outline—Marketing Management, MKMR 403

Class

Meeting #

Class

Meeting Dates

Class meeting

topic

Required cases, assignments, &

notes See CoursePack

for Cases

Required readings

from CoursePack:

Optional Textbook readings

Understanding, Creating, and Capturing Value 1 1/12,

1/13, or 1/14

Introduction / overview

“Note on marketing strategy”

“Note on low tech marketing math”

A: Chp. 2 B: Chp. 2

1/21 or 1/22

1/19 is MLK Day: No Class

Intensive reading week

2 1/26, 1/27, or 1/28

Segmentation, targeting,

positioning, and

differentiation

FT MBA sections led by Dean Mohan

Reddy Calyx and Corolla

“Market segmentation, target market selection, and

positioning”

A: Chp. 3,4, & 7 B: Chp. 3, 4 6, & 7

3 2/2, 2/3, or 2/4

Positioning analyses and

consumer decision making

PharmaSim introduction

PolyPhonic HMI

PharmaSim manual / case (Interpretive.com) and complete online quiz

“Major sales: who really does

the buying?”

A: Chp. 6 B: Chp. 5

4 2/9, 210, or 2/11

Brand management and dealing

with competition

L’Oreal of Paris

Group case write-up due

“Brands and branding”

“Perceptual mapping: A practical guide”

“Analyzing consumer

perceptions

A: Chp. 10 & 11 B: Chp. 8 & 9

5 2/16, 2/17, or 2/18

Product-related

processes

Omnitel Pronto Italia

“Principles of product policy”

“Analyzing consumer preferences”

A: Chp. 12 & 13 B: Chp. 10 & 11

6 2/23, 2/24, or 2/25

Pricing-related

processes

FT MBA sections led by Dean Mohan

Reddy Avon Company

Cumberland

Metals

“Value-based strategies for

industrial products” *

“Pricing: A value-based approach”

A: Chp. 14 B: Chp. 12

7 3/2 MIDTERM

EXAM

FT Day MBA: Monday, March 2nd

9:00 – Noon 3/3 PT MBA : Regular class time and location Week

of 3/9 SPRING BREAK


Communicating Value 8 3/16 ,

3/17, or 3/18

Promotion-related

processes

Lenovo

“Marketing promotions”

A: Chp. 17 & 18 B: Chp. 13 & 16

Delivering Value 9 3/23,

3/24, or 3/35

Distribution / place-related

processes

Medical Equipment Inc. in

Saudi Arabia

_________________ ‘Pitch Yourself’

exercise is due

“Going to market”

“Values in Tension: Ethics Away from Home”

__________________________ “How to make your case in 30

seconds or less”

“Pitch yourself!”

A: Chp. 15 & 21 B: Chp. 18

Sustaining Value 10 3/30,

3/31, or 4/1

Business partner and

customer relationship management

(CRM) processes

Spectrum Brand Inc.- The Sales Force Dilemma

PharmaSim

strategy summary due (one per team)

“Personal selling and sales management”

“Match your sales force

structure to your business life cycle”

PharmaSim (4/2): Team can

advance beyond period 3

A: Chp. 19 B: Chp. 17

11 4/6, 4/7, or 4/8

Consumer equity

processes

Rosewood Hotels

“Marketing when customer equity matters”

“Customer profitability”

A: Chp. 16 B: Chp. n/a

12 4/13,

4/14, or 4/15

Marketing innovation

processes

Procter & Gamble (2000): The

Spinbrush and Innovation at

P&G

“Is it real? Can we win? Is it worth doing?”

“Marketing input and innovation strategy”

“Connect and develop: Inside P&G’s model for innovation”

13 4/20, 4/21, or 4/22

Discuss PharmaSim

results & course wrap up

PharmaSim: Overall report

due (one per team)

14 4/27

FINAL EXAM

FT Day MBA: Monday, April 27th

9:00 – Noon

4/28 PT MBA : Regular class time and location

Notes: Optional textbook readings are from (A) Marketing Management Kotler & Keller , 13th ed. or (B) A Framework for Marketing Management by Kotler and Keller, 4th ed.. Required readings that are not in the CoursePack are marked with an “*” asterisk are not included in the CoursePack. See Blackboard for instructions.


Calyx & Corolla

Focus of the case This case centers on important issues associated with understanding what different consumer segments value. It describes Calyx’s entry into the $8 billion flower industry in the United States. Combining the use of overnight air freight (Federal Express), information technology, an 800 number, and a catalog, Calyx & Corolla was changing the way flowers had traditionally been distributed, bypassing three layers of distribution, and providing very fresh flowers directly from the growers to consumers. The case frames the question of how a start-up venture should grow. Case Discussion Questions 1. How does Calyx & Corolla create value for its customer? 2. What is the basis of Calyx & Corolla’s competitive advantage?


Polyphonic HMI

Focus of the case This case centers on issues associated with introducing innovative products. Polyphonic, a Barcelona-based company has developed a new product that uses sophisticated algorithms to project the potential sales of songs before they are introduced in a market. Marketing issues considered include consideration of the implications associated with launching a new product on a limited budget, the pros/cons of targeting different markets (e.g. artists, producers, or record companies), and how the product should be positioned, priced, and promoted.

Case Discussion Questions

1. If you were Mike McCready, the CEO of Polyphonic, which target market—unsigned artists, producers, or record companies—would you pursue?

2. How would you serve this target market? What is a suitable marketing plan? Specifically, what positioning would you choose? What considerations underlie your pricing decision? And how do you plan to approach the selling process?

3. What value does Hit Song Science create? Specifically, to what extent does Hit Song Science increase the expected revenues and profitability of albums by new and established artists? (See Table A)

4. What are the potential benefits and drawbacks of Hit Song Science for each player in the music industry? Who stand to gain or lose most from this technology? How does that impact your plan?

5. What are the ideal customers for Polyphonic? Is giving away free trials a good way to stimulate adoption among these customers? What does it take to satisfy customers who try HSS?


L’Oreal of Paris Focus of the case This case centers on segmentation, differentiation, and positioning, some of the core concepts in marketing. Positioning is the process of creating a unique space for the product or service (with respect to competing brands) in the mind of the customer. Good positioning involves making clear the core benefits of the product and its point of differences from the competition. The case also discusses how positioning is reflected in and built through the 4 P’s (marketing mix). It also discusses how a niche brand might grow into a major brand, as well as issues of global marketing. Case Discussion Questions ====================================================================== For the case write-up, please answer only question 1 (parts a, b, and c).

1. Segmentation, targeting, differentiation, and positioning.

a. Plenitude competes in the three segments of (1) daily moisturizers, (2) treatment moisturizers, and (3) cleansers in the French and U.S. markets. How successful or unsuccessful have they been in each of these three segments? To help you answer this question, please calculate the market share for these three main product lines (treatment moisturizer, daily moisturizer, and cleansers) for L’Oreal and its main competitors. In other words, how much market share does L’Oreal have in each of the three product lines, and how do they fare against their competitors? Why are they successful or unsuccessful in each line?

b. How is Plenitude positioned and how is it differentiated from its competitors? Is it

successful in this regard? What could be done to improve on this?

c. What exactly do you learn from the marketing research results, especially Exhibits 9-10, that can help you with these questions? Is all of the marketing research data consistently pointing in the same direction? If there is inconsistency, how would you resolve it?

====================================================================== 2. The 4 P’s

How is Plenitude implementing its positioning through the 4 P’s (product, place, promotion, and price)? Is it successful in each of the P’s? What recommendations can you make here? Consider each of the P’s below:

a. product b. pricing c. place d. promotion

3. What should Carol Hamilton do? What results to you expect?


Omnitel Pronto Italia

Focus of the case One of the primary objectives of marketing is to create, capture, deliver, and sustain value. This case illustrates a market-driven process for creating value and identifies the marketing challenges in doing so. The case also provides an opportunity to analyze customer preferences (trade-offs) using conjoint analysis (see the reading on “Analyzing consumer preferences”). The case highlights the importance of understanding and responding to customer needs, which is the fundamental charge of effective brand management.


1. What was Omnitel’s competitive advantage when the service was launched in December 1995

(how did it differentiate itself from TIM)? 2. Why did the launch not perform to expectations (was Omnitel targeting the correct segments)? 3. How much revenue can be generated per user with the new (LIBERO) plan? How much revenue

is being generated with the current plan? To calculate this, look at pages 1 and 4. Think about the peak and off-peak minutes that are used, and the prices that are charged for peak and off-peak calls. What do these calculations tell us about the LIBERO plan?

4. Why is the churn rate so high for many European countries? What can be done to reduce the

churn rate? Is the churn rate the same for every European country? Why or why not? Do you expect the churn rate to increase or decrease with the launch of LIBERO?

5. What do you learn from the consumer research? What do you learn from the results of the

Conjoint Analysis presented in Exhibits 5 to 8? 6. Will LIBERO lead to a price war? If yes, what could Omnitel do to avoid one? 7. If you were Fabrizio Bona, what changes would you make to LIBERO and why?


Avon Company Focus of the case This case involves strategic marketing decisions that center on pricing concerns including pricing elasticity, market introductory strategies (e.g. skimming versus penetration), analyses of competitive activities, and assessments of probabilistic risks/rewards associated with alternative pricing strategies. Case Discussion Questions 1. At what price for the 5 hp unit will dollar contribution be maximized? 2. How could we determine prices for other sizes? 3. What should the company’s pricing strategy be on its new speed drive?


Cumberland Metal Industries

This case centers on the concept of ‘value pricing’ (i.e. pricing based on the value an offering provides as opposed to pricing based on its costs). You’ll need to do some careful analysis of the information provided in this case to support your pricing recommendations—and the case provides plenty of information for that explicit purpose. Case Discussion Questions 1. What benefits does the CMI pad offer customers? 2. Describe the decision-making process for pads. How does each member of the decision-

making unit (DMU) view the new pads? 3. What should Mr. Simson tell the Colerick Foundation Company? 4. What introductory price could CMI charge for its pads?


Lenovo Focus of the case This case centers on how China’s largest personal computer (PC) maker, acquired IBM’s PC division—including brand rights to the successful ThinkPad line of notebook and desktop computers. The case review’s Lenovo’s branding and new product moves since the acquisition setting up the Chief Marketing Officer’s (CMO’s) consideration of the appropriate strategic roles and positioning of the Lenovo and Think brands. The case also outlines the choices of whether and how to continue leveraging an established logo (IBM)—and the implications of brand identity in relation to place/global distribution strategies. Case Discussion Questions

1. Why did IBM want to sell its PC business? Why did IBM sell to Lenovo?

2. What explains Lenovo’s success prior to the acquisition?

3. What challenges did Lenovo face after the acquisition?

4. How should Lenovo handle the brand management challenges associated with the acquisition?

5. In trying to become a global brand, does Lenovo have a problem coming from China?


Medical Equipment Inc. in Saudi Arabia

Focus of the case This case describes a cross-cultural business encounter between an employee of a global organization and a local client in which it is not easy to determine when an action becomes unethical. This case allows centers on discovery of some of the different ethical decision-making frameworks we use.


1. Is bribery or corruption a problem in your country? Give one or two examples. 2. Does Grover understand the local culture? 3. Grover considers the option of sending Al Humaidi to a Medical Equipment showroom in France or the United States. How does that compare to paying Al Humaidi a bribe? 4. What should Grover do now? Why?


Spectrum Brands, Inc.- The Sales Force Dilemma

Focus of the case This case centers on the challenges involved in creating an effective sales team in a post-merger/acquisition scenario. The goal in such a situation is to bring together multiple teams in a way that benefits all the divisions and the overall company. Deciding what sales force structure is best, given the individual industries, the overall market characteristics and the company’s goals, is the key learning objective behind this case.


1. Assess the Spectrum organization and each of the markets in which the company now

operates. What are the key elements from each industry about which Falconi should be concerned?

2. Given the markets the company is operating in, what is the best structure for the sales force? How did you decide?

3. What major problems might you encounter with your new sales force structure as it relates to both external factors (customers) and internal factors (employee reactions)?

4. Create an implementation plan for your new sales force structure, including how you will deal with the human issues involved.


Rosewood Hotel and Resorts: Branding to Increase Customer Profitability and Lifetime Value

Focus of the case This case centers on the concept of customer lifetime value (CLTV). CLTV is the total value of a customer to the firm over her lifetime. Monitoring, measuring, and maximizing lifetime value has become a key priority for all marketers in general and hotel marketing executives in particular. The case includes basic tools for students to calculate the financial impact of the corporate branding option that is being considered. Rust et al., in a recent Harvard Business Review article propose a reinvention of brand management that puts the brand in the service of the larger goal of growing customer equity. This case shows the link between brand management decisions and bottom line results as one firm attempts to reinvent its brand. Case Discussion Questions

1. Why is Rosewood considering a new brand strategy?

2. What are the pros and cons of moving from individual brands to a corporate brand? 3. Will the move to corporate branding maximize customer lifetime value?


Procter & Gamble (2000): The Spinbrush and Innovation

Focus of the case This case centers on a set of decisions confronting some managers in the oral care division of Procter & Gamble. They must decide whether to buy a company that has developed an inexpensive, battery-operated toothbrush. The company's product has done well in one market, but determining an appropriate value and structure is challenging. Case Discussion Questions 1. Assume you are Crest Brand Manager Andrew Cooper. What would you recommend to P&G

CEO A.G. Lafley and the Board of Directors, and why (including a detailed analyses based on the information provided in the case)?


MKMR 403 PEER EVALUATION FORM

Your Name _______________________ Your Team’s Name ___________________ Peer evaluations have become commonplace in industry with 360 evaluations. The purpose of this form is for you to evaluate the contribution made by each or your team members to the overall performance and success of your team's assignments—namely, your case write-up and PharmaSim project. In making your assessments, you might take into the following:

a. effort, b. quantity of contribution, c. quality of contribution, d. evidence of advance preparation for meetings, e. meeting deadlines set by group, and f. degree of cooperation with other group members.

DIRECTIONS:

1. In the space provided below, write in the names of all group members (except yourself). You should omit anyone who was part of your group initially but dropped the course or for some reason is not part of your group at the end of the course. 2. Allocate a total of 100 points among your group members (excluding yourself) such that the points awarded indicate your judgment of the overall value of each member's relative contribution. That is, absent your contributions, what part of the remaining group work did each of your other teammates contribute? The total points awarded must add up to 100.

For example, if you have four group members, you will only rate the other three members. If, in your judgment, all the other members made equal contributions, you would allocate 33.3 points to each of the other four members. If you award someone 10 points and someone else 30 points, this would indicate that you valued the latter person's contribution three times more than the first person's contribution.

GROUP MEMBER NAMES (Excluding yourself) POINTS EARNED

1. ________________________________ __________

2. ________________________________ __________

3. ________________________________ __________

4. ________________________________ __________

5. ________________________________ __________

Total of points (must equal 100) Total __________

On the back of this form, please provide COMMENTS to support your evaluations. As we’ve discussed, the total score for each student may be used to adjust your team grades. As a professional, you should practice professionalism by keeping keep your team members informed of your evaluations of their inputs and thus these final peer ratings should not surprise anyone.

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