MKTG 6130- CUSTOMER-DRIVEN MARKETING MANAGEMENT Western Michigan University Haworth College of Business

Fall 2008

Instructor: Dr. Mike McCardle Office Location: 3181 Schneider Hall Office Hours: MW: 1:30 – 3:00 pm and by appointment Telephone: 387-6101 E-mail: mike.mccardle@wmich.edu Web site: http://homepages.wmich.edu/~mmccardle/

Contact Information The best way to contact me outside of office hours will be through email. Normally, I respond to emails within 12 hours. It is expected that you have a working email address that you check on a regular basis. I frequently send email to the entire class regarding upcoming assignments, as well as performance feedback to individual students. To ensure that I respond to your email promptly, all email messages should have MKTG 6130 in the subject line. Course Description and Outcomes: Marketing 6130 is an examination of marketing theory, concepts and processes used by organizations to create customer value, achieve and sustain competitive advantage and to accomplish strategic mission and objectives. Emphasis on planning, implementation, and evaluation of customer-driven marketing strategies to respond effectively to complex global, cultural, technological, competitive and other market or environmental factors. Following completion of this course, students should be able to:

Define and understand the key concepts and language of marketing management and its relationship to managerial decisions.

Strategically integrate marketing activities into the firm’s overall activities.

Know the current focus, trends, and practices in the global marketplace.

Apply current technology to improve the marketing function of the firm, including tools and capabilities involving the Internet.

Prerequisites: Admission to Marketing 6130 requires completion of all MBA basic core requirements, admission to the MBA program or MSA, or consent of the HCOB Director of Graduate Programs. Course Material Due to excessive costs there is no required textbook for this course. In place of a textbook a course pack has been created specifically for this class with the readings you will need. This course pack is available online from coursepacks.com. The cost of this course pack is about $50. In addition, you are required to purchase access to PharmaSim simulation (www.interpretive.com) for $39.95. More to follow. NOTE: If MKTG 6130 is your first experience with a marketing class, or if you feel you need a refresher, I strongly recommend that you acquire an introductory marketing text. One recommendation is Marketing Management by Philip Kotler. An older edition (10th or 11th ed.) costs $5 - $10 online.

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Course Requirements HBS Cases Management education involves the development of a set of philosophies, approaches, skills, knowledge, and techniques. Although class discussions, readings, and problem solving exercises may be an efficient means of acquiring knowledge, I strongly believe that the skills required to become effective managers are best acquired by practicing in a simulation-type environment. The case method is built on the concepts of metaphors and simulation. Each case is a description of a real business situation and serves as a metaphor for a specific set of problems. The case approach helps managers sharpen their analytical skills as they must produce evidence to support their decisions. You will be challenged to defend your ideas and analyses; the effect being a sharpening of problem-solving skills and a heightened ability to think and reason rigorously. Case Reports During the term you will be responsible for preparing 4 case reports. Each case report is worth 50 points. Case memos are to be typewritten with 1” margins on all sides and double-spaced. Each case is limited to 3 pages, not counting exhibits. Please use Times New Roman, font size 12. Put your Grade ID number(s) and not your name(s) on the cover page. Exhibits are placed at the end of your write up, with each being on a separate page. Additional information on case reports is available in the Appendix section of this syllabus. Case reports are due at the beginning of class, on the day we discuss the case. Reports turned in after this time, but before class ends, will be accepted with a 10% penalty. Reports will not be accepted after class has ended. Emailed reports are accepted under the same conditions. Case Discussion Once we have entered the case portion of the course you are expected to thoroughly read each case (even if you choose not to prepare a case report). It is expected that students will lead the discussion of each case, offering your insights, analysis, and recommendations. Differing viewpoints are normal and the expression of individual ideas is strongly encouraged (this is often the source of higher participation points). If you disagree with the ideas of a classmate (or even me) express your reasons and own suggestions in a polite and constructive manner. I will conclude each case discussion with a recap of what happened in the case and a mini-lecture. It is critical that you come to class fully prepared to discuss the case. It is fair game for me to call upon anyone to answer a question. Grading Policy: Every effort will be made to return student grades as quickly as possible. While the normal time frame to return cases, quizzes, or exams is one week, often external influences cause a delay. As such my official policy is that all assignments and exams will be graded and returned to students within 2 week from the date they are turned in. Exam The comprehensive final exam will test your knowledge on both qualitative and quantitative aspects. Test material includes problems based on analytical techniques and strategic concepts covered during the semester. The format of the exam will be short answer, essay, and/or a complete case analysis. Participation Active involvement in class, especially during case discussions, is absolutely, positively essential to your successful completion of this course. Your participation grade is partially a function of the frequency of contribution, but it is primarily dependent on the quality (clarity, relevance, and importance) of your contribution to the discussion. Simply asking a lot of simplistic questions will not be enough. The following scale will be used to evaluate your contribution to in-class discussion.

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A Consistent, high-level involvement in class discussions demonstrated through asking questions (of

me, of teams, and of other class members), answering questions, offering creative comments, adding new dimensions to the class discussions, and providing evidence of analytical depth. Assuming a leadership role in in-class discussions. Questions and comments show original thinking and insight.

B Consistent contributions to class discussions primarily through asking questions or answering

questions. Some questions or comments consolidate the general theme under discussion. C Periodic contributions to class discussion. Answers questions or offers commentary occasionally.

Needs to be called upon to participate. Limited questioning of teams or other class members. D Sporadic contributions to class discussion. Asks trivial questions. When called on, fails to

demonstrate adequate degree of familiarity with the assigned material. F Passive member of the audience. Does not voice any opinions or ask any questions. Fails to

demonstrate adequate degree of familiarity with the assigned material when called on. NOTE: To ensure that you receive credit for participation you should sit in the seat designated by you on the seating chart. Quizzes and Exercises Throughout the semester there will be quizzes and exercises designed to reinforce marketing management concepts. Unannounced quizzes and exercises may not be made up for any reason. To help ensure you have the requisite knowledge pertaining to analytical methods, there will be a scheduled quiz on Sept. 16th. This is the only graded assignment that you are allowed to make up, if done so by Sept. 23rd. PharmaSim Simulation During the semester student formed teams will work in a simulation environment known as PharmaSim. The purpose of this exercise is to bolster your knowledge of marketing management and decision-making in a dynamic environment in which you will make decisions over a ten-year period. In the simulation environment firms are rewarded for good decisions over the long term and, conversely, suffer the consequences of bad decisions. Teams should strive to be as successful as possible at achieving your marketing objectives. At the same time, individuals should work toward building their knowledge base regarding critical marketing concepts. The deadline for purchasing access to PharmaSim is Sept. 15th. The cost of the simulation is $39.95 per student and orders are placed directly with Interpretive Simulations. Groups will be finalized during class on Sept. 16th. More information on the simulation can be found at the end of this syllabus. Case Competition At the end of the semester student formed teams will analyze and present a marketing case to select faculty and industry executives (potentially from the company involved in the case). Your presentation will demonstrate all the skills and knowledge you acquired during the semester. Teams will be graded on multiple aspects, including: structure, content, and style. The team deemed to have made the most compelling presentation will be named the winner of the case competition.

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Groups should plan for their presentation to last 15 minutes, including questions. Please make sure you practice your presentation so that you do not run out of time. All members of the team have to present and there will be no excuses. Questions will be asked both during and after your presentation. Teams must provide paper copies of their presentation slides (in “handout – 3 slides per page” format) and any spreadsheets (full-sized) they prepare for the judges. Written reports are NOT required for the case competition. More information on team presentations will be provided later in the semester, including a breakdown of the grading criteria. Grading

GRADED ASSIGNMENTS GRADING SCALE

Assignments Points Grade Points Range

Individual (60%) A 925 – 1000

Case Reports (4 x 50) 200 BA 875 – 924

Final Exam 200 B 825 – 874

Participation 100 CB 775 – 824

Quiz and Exercises 100 C 725 – 774

Group (40%) DC 675 – 724

Case Competition* 200 D 600 – 674

PharmaSim Simulation 200 E Below 600

TOTAL 1000 * Weighted by peer evaluations.

NOTE: Grades are not negotiable. To be fair to the entire class, there are no opportunities for extra credit assignments other than the readings bounty. Students with extenuating circumstances which require them to receive a certain grade or maintain a particular GPA (e.g., graduation, loss of a scholarship, University probation or suspension, loss of a job offer, revocation of student visa, etc.) must realize that they are responsible for working hard to achieve the needed grade. Exceptions will not be made for individual students. Grades can be changed only if I have made an input or calculation error. Incomplete Grades: In accordance with University policy, an incomplete grade will only be assigned when the instructor concludes that extenuating circumstances beyond the control of the student prevent the completion of course requirements by the end of the semester or session. This grade may not be given as a substitute for a failing grade. Academic Honesty (from WMU Faculty Senate): “You are responsible for making yourself aware of and understanding the policies and procedures in the Undergraduate and Graduate Catalogs that pertain to Academic Honesty. These policies include cheating, fabrication, falsification and forgery, multiple submission, plagiarism, complicity and computer misuse. [The policies can be found at http://catalog.wmich.edu under Academic Policies, Student Rights and Responsibilities.] If there is reason to believe you have been involved in academic dishonesty, you will be referred to the Office of Student Conduct. You will be given the opportunity to review the charge(s). If you believe you are not responsible, you will have the opportunity for a hearing. You should consult with your instructor if you are uncertain about an issue of academic honesty prior to the submission of an assignment or test.”

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Keys to Effective Teamwork The first key to effective teamwork is cooperation. Working well together as a team requires that each team member learn to cope with the different personalities, backgrounds, and scheduling problems of team members. Learn how to work together as a team. Your ability to work effectively with other people in cooperative efforts will play a large role in your professional success and in your ability to pass this course. Your fate often lies in the total team effort. The second key to effective teamwork is commitment. The success of your team depends on the ability of all team members to work together effectively and efficiently toward a common goal. Each team member will have to give 100%. A strong team meets regularly, manages its time well, rehearses carefully, and remains committed to their assignments. Quickly develop a strong and mutual commitment to the team. The bottom line is the work must be done professionally, must be high quality, and must be on time. I will expect nothing less. Groups have the right to fire a team member at any time. However, certain steps must be taken before a team member can be “voted off the island.” Teams who are experiencing problems with group members should bring these problems to my attention as soon as possible. If you are fired from a group, your options are: with my approval you may join another group (which is unlikely), or complete the entire project/presentation yourself. Students with Disabilities: Any student who has a disability that interferes with his or her involvement in any required activity in or outside the classroom should notify the instructor so that class activities may be altered in a way that will optimize the student’s learning experience. Professionalism It is expected that students will maintain an acceptable level of professionalism during this course. In the real world, it is not an option to randomly skip meetings — you could lose your job. Likewise, absences can severely reduce your grade. Please do not show up late for class. Other unacceptable behaviors include leaving early, web surfing, reading newspapers, and working on material unrelated to the class. Professional behavior in your language and dealings with other members of the class is expected at all times. As a courtesy to both your professor and your fellow students, all pagers, cell phones, electronic games, radios, CD players, or other devices that generate sound must be turned off during class, unless approval has been given by the professor. Readings Bounty You will have the opportunity to earn a 25 point bounty for locating and sharing recent business articles pertaining to the topics we cover each week. Points will be awarded based on the relevancy of the article. You should focus on publications such as Business Week, WSJ, etc. Each article will earn between 1 and 5 points. You will need to write a brief review of the article and may be called upon to provide an outline in class. You must include a copy of the article (original or photocopy of article please) with your write up to receive credit. A cover page is not needed. On your recap you should include the date, source, your grade ID, and the topic the article covers.

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COURSE SCHEDULE – SUMMER II 2008 (Tentative)

Week Date Topic / Key Concepts Reading / Case

1 Sept.

02

Topic: Course Overview / Market Orientation

Key Concepts: 1. Marketing in Today’s Environment 2. Why study marketing 3. Key marketing concepts

Readings: 1. Compete - or Else 2. Market Orientation, Customer

Value, and Superior Performance

Module 1: Situation Analysis

2 Sept.

09

Topic: Market-based Performance

Key Concepts: 1. Market metrics 2. Net marketing contribution 3. Marketing profitability

Toolkit: (a) Analytical marketing methods

Analytical marketing methods Readings:

1. Why Managing by Facts Works 2. Math Will Rock Your World 3. Defining Marketing Problems

3 Sept.

16

Topic: Customer Behavior

Key Concepts: 1. Consumer vs. Business Markets 2. Buyer Behavior

Toolkit: Case Analysis Workshop PharmaSim Simulation

Analytical Methods Quiz Readings:

1. The Vanishing Mass Market 2. Ruthless Focus on the Customer 3. The Generation Y Hotel

Module 2: Market Analysis

4 Sept.

23

Topic: Market potential, demand, and share

Key Concepts: 1. Discovering market opportunities 2. Market assessment

Toolkit: Positioning Analysis

PRACTICE CASE: Jones Blair Readings:

1. P&G’s Global Target: Shelves of Tiny Stores

2. How Market Leaders Keep Their Edge

3. And Behind Door No. 1, a Fatal Flaw

5 Sept.

30

Topic: Customer analysis and value creation

Key Concepts: 1. Benefit analysis 2. Customer value 3. Lifetime value of customers

Toolkit: Customer Lifetime Value

CASE: Saxonville Sausage Readings:

1. The Real Value of Customer Loyalty

2. Getting Real About Customer Lifetime Value

3. The Buzz from Starbucks Customers

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6 Oct. 07

Topic: Market segmentation

Key Concepts: 1. Needs-based segmentation 2. Segment analysis 3. Consumer vs. business markets

Toolkit: Conjoint Analysis

CASE: Aqualisa Quartz Readings:

1. The Politics Behind Market Segmentation

2. Slicing and Dicing the Market 3. Pumas, Planets, and Pens 4. Understanding Conjoint Analysis

Module 3: The Marketing Mix

7 Oct. 14

Topic: Product and brand strategies

Key Concepts: 1. Product line 2. Product life cycle 3. Product positioning

Toolkit: (a) New Product Adoption

(b) Bass Model

CASE: Pepcid AC: Racing to the OTC Market

Readings:

1. New Product Development: Gaining and Using Market Insight

2. Driving Growth in Consumer Goods

3. Kraft reformulates Oreo, Scores in China

8 Oct. 21

Topic: New product development

Key Concept: 1. Ideation 2. Voice of the Customer

Readings: 1. The Innovation Paradox 2. My Customer, My Co-Innovator 3. In a Highly Complex World,

Innovation From the Top Down

9 Oct. 28

Topic: Pricing

Key Concepts: 1. Market-based pricing 2. Skim vs. penetration pricing 3. Price elasticity

CASE: Colgate-Palmolive Co.: Precision Readings:

1. How do You Know When the Price is Right?

2. Seeking Perfect Prices, CEO Tears Up the Rules.

3. Pricing: Part Art, Part Science

10 Nov. 04

Topic: Marketing channels/Communication

Key Concepts: 1. Direct vs. indirect channels 2. Customer awareness and

comprehension 3. Customer Response

CASE: Atlantic Computers Readings:

1. Here Come the Alpha Pups 2. Steering Customers to the Right

Channels

Module 4: Implement, Monitor, and Assess

11 Nov. 11

Topic: Strategic Marketing 1. Offensive vs. defensive marketing 2. Competitive Forces Model

CASE: Natureview Farms Readings:

1. The Flatbread Factor 2. How to Win in Emerging Markets

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12 Nov. 18

Topic: Strategic Reformulation Key Concepts: 1. Market penetration 2. Harvest or divest

CASE: Kingsford Charcoal

13 Nov. 25

Case Competition

14 Dec.

2 Comprehensive Final Exam

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PharmaSim Simulation Objectives The PharmaSim simulation is designed to supplement the learning experience from the case discussions in class by providing you with an opportunity to apply the concepts discussed in class, experiment with different marketing strategies, and get feedback on the impact of your marketing actions in a dynamic, competitive environment. The simulation focuses primarily on marketing activities. You will therefore be making decisions regarding target markets, product mix, pricing, distribution, sales force, advertising, and promotion. You are expected to manage the highly profitable OTC (Over-The-Counter) cold medicine division of Allstar Brands, a large pharmaceutical company. The competition in this marketplace is made up of five firms with different strengths and weaknesses. Currently, the Allround brand is the only cold medicine that Allstar has on the market. General information The deadline for purchasing PharmaSim is Monday Sept. 15th. On Tuesday, Sept. 16th I will post, in class, the members of each group. Students can make suggestions regarding the makeup of groups before Sept. 15th, but the final decision is up to me. Preparation for the simulation exercise The PharmaSim case in the manual presents an overview of the OTC market from the perspective of the management team at Allstar Brands. Please read the case carefully and familiarize yourself with the format of the research reports, the content of the information that is available in the various reports, and the decisions you will need to make each period. Grading the simulation Your grade for the simulation will be based on the performance of your team, compared to other teams, on selected marketing metrics such as cumulative profit, return on sales, market share and stock price. The metrics used are designed to measure the all-around decision making skills of teams. As noted on the schedule below, the simulation is slated to run for 10 years (each decision represents 1 year). However, I have the option of advancing the simulation for an additional 2 years, without teams making any changes to their product line. This is to prevent “end-gaming,” where teams try to “win” the simulation by making short-term or ill-advised decisions that may hurt the company in the long run.

PharmaSim Schedule Date Decision

Sept. 15th Deadline to enroll in PharmaSim

Sept. 16th PharmaSim Introduction Group Formation

Sept. 15 - 22 Individual Practice Rounds

Sept. 29 Year 1 Deadline

Oct. 13 Year 3 Deadline *

Oct. 27 Year 6 Deadline *

Nov. 17 Year 10 Deadline

* Team meeting with professor to discuss simulation progress

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Guidelines for Case Reports You are responsible for turning in a report on four of the seven cases we will cover this semester. The table below outlines the choices you have. In addition, the number of cases that can be turned in for any one case is limited to ensure balance in our case discussion. The numbers in parentheses beside the name of the case indicates the number of cases available to be turned in. A signup sheet will be made available to students during the second class meeting (Jan. 15th) and signups will be on a first come, first serve basis. You will not be allowed to change your case assignment once you have signed up for that case. Signing up for case assignments may only be done in class. If you turn in a case report without signing up for that case then you will receive no credit for the report you turned in. For the two reports due from Module 3, you must work with a partner for each case, but cannot work with the same partner for both cases.

Module 2 Module 3 Module 4 Individual Case Reports

(Choose 1 of the following) 2-person Team Case Reports

(Choose 1 from Group A and B) Group Case Reports

Saxonville Sausage (10) A Pepcid AC (5)

Colgate Precision (5) Kingsford Charcoal

Aqualisa Quartz (10) B Atlantic Computer (5) Natureview Farms (5)

My philosophy for cases may differ from what you have experienced in other classes. In a case analysis there may be no single right answer, but some answers are more right than others, and there are definitely wrong answers. Wrong answers are those that are not supported by strong evidence or those that are inconsistent with the company’s strategy or proven theories. It should be noted that the actual outcome of the case is of no concern. What is important is that each case we discussed is selected to provide you with specific knowledge and skills.

Case Format

You can make the assumption that for each case you are employed by the firm and report to the protagonist named in the case. He has assigned you the task of researching the situation and providing him with guidance. As such it is important that your report be factual, concise, and well written. Many great solutions have been discredited because the ideas were not well presented. A good case analysis follows a Problem, Analysis, Recommendation format. Each of these will be outlined below. Description of the Problem: Most of the cases contain several problems; some are more important than others. State what you perceive to be the key problems and why. This section should be brief, being no longer than 1 paragraph. Analysis: The analysis section will vary depending on the specifics of each case. Some cases will provide you with various alternatives that the company is considering while other cases require you to develop the alternatives. In general you will need to examine all the elements and information contained in the case to ensure that you are taking into consideration all critical data. The analysis section is the critical part of your case report as it will guide the reader to accept or reject your recommendations. You can take a stance of analyzing the alternatives, weighing one against another. One method that may help you analyze your alternatives is by using the Evaluation Matrix found below. You should not include this type matrix with your report; it is merely to help you think about the alternatives. The analysis section requires you to utilize all of your analytical skills, including quantitative and qualitative analysis tools.

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Evaluation Matrix (Example)

Alternatives Critical Issue 1:

Financial Resources

Critical Issue 2: Competitors'

Reactions

Critical Issue 3:

Financial Risk

Critical Issue 4: Technological

Expertise

Overall Evaluation

Develop a premium product

-- +/- --- +++ +/-

Develop our own sales force

- + -- ++ +/-

Franchise +++ +/- ++ + ++

Private label ++ + + ++ +/++

Liquidate +++ ++ --- NA -

Recommendations: State the manner in which each of the problems you have identified should be resolved based on your analyses. If appropriate discuss contingency plans. You should keep in mind critical issues that the company may face, such as availability of capital, financial risk, competitor reactions, etc. Where applicable, provide a pro forma statement, budget, or other form of quantitative analysis to help the manager determine the appropriateness of your recommendation. It is important to remember that a case analysis is not just a summary of the case facts. Your reports will be grade based on the thoughtfulness and insight provided by your analysis and how well your recommendations reflect this analysis. Additionally, clarity of writing will also be rewarded. A well written paper should be able to effectively communicate your points in a grammatically correct and concise way. The grading format is found below. Exhibits The purpose of exhibits is to provide your reader with a “quick” view of the situation as well as supporting your analysis and recommendations. Exhibits should add value to the paper by being valuable for your reader. Exhibits should be easily read and not filled with calculations. Your reader should be able to examine an exhibit and understand its meaning. Little thing such as limiting the use of borders, keeping the font size and type the same as in your paper, and limiting the use of abbreviations, all contribute to creating quality exhibits. If you feel the need to provide explanation of your calculations, or what exactly the figures indicate, you can use a footnote just below the exhibit. This should be typed in a much smaller type size, such as 9 point so that it does not take away from the exhibit itself. Each exhibit should be individually numbered and given a title that is representative of its content. All data, including title and number, should be centered on the page. The exhibits should be a “portrait” format, rather than in “landscape.” In some cases it may be necessary to use “landscape,” but this will be a rare situation In the body of your paper direct readers to the proper exhibit. You could for example write something like, “As shown in Exhibit 1, sales for 1995 are expected to continue to increase by 12.9%.” This example is giving the reader what they need, while also directing them to the source of this information. A poor example would be something like “See Exhibit 1 for projected sales growth.”

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Case Grading Criteria Format – 5 points Clarity of writing – 10 points Analysis – 20 points Recommendation – 15 points

General Guidelines

1. Do not repeat facts from the case in your report. 2. Your job is to sell your recommendations to your boss. 3. Write in a clear, professional manner. 4. Proofread your paper for issues of clarity and to ensure it is free from typographical errors. 5. Do not throw around “buzz words” or mention concepts that you are not 100% clear about. 6. Critical errors can kill your credibility (and your career).

a. Never misspell the name of the company and/or brand name. b. Do not misstate key information such as sales figures, market share levels, etc.

Proper Format One inch margins on all sides Times New Roman font – 12 point Double spaced Proper use of headings

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Case Questions NOTE: The following questions are provided to help you in your analysis of the case. These questions are not to be answered in your report!

Saxonville Sausage Company Discussion Questions:

1. What is the current situation? 2. How was the research methodology determined? Develop a research design and explain what

behaviors, demographics, and lifestyle components you deem important and why. 3. What were the research results? Select two different positioning territories identified in Exhibit

6. Trace back through the case, using Exhibit 4 and other embedded information, to rationalize the development of these territory ideas. Alternative question: What might a positioning “ladder” look like for each of the two “finalist” Italian sausage positioning?

4. What alternative do you recommend and why? 5. What tactics should accompany the product launch?

Aqualisa Quartz Discussion Questions:

1. What is the Quartz value proposition to plumbers? To consumers? 2. Why is the Quartz shower not selling? 3. Aqualisa spent three years and 5.8 million developing the Quartz. Was the product worth the

investment? Is Quartz a niche product or a mainstream product? 4. Aqualisa currently has three brands: Aqualisa, Gainsborough, and ShowerMax. What is the

rationale behind this multiple brand strategy? Does it make sense? 5. What should Rawlinson do to generate sales momentum for the Quartz product? Should he

change his marketing strategy to target consumers directly, target the DIY market, or target developers? Should he lower the price of the Quartz? Or should he do something different altogether?

Pepcid AC: Racing to the OTC Market Discussion Questions:

Colgate-Palmolive Company: The Precision Toothbrush Discussion Questions:

1. What changes are occurring in the toothbrush category? Assess Colgate-Palmolive’s competitive position.

2. How is the toothbrush market segmented? Compare consumer behavior for toothbrushes and toothpaste.

3. What are the arguments for launching Precision as (a) a niche product and (b) a mainstream brand?

4. What marketing recommendations would you make to Steinberg?

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Atlantic Computer: A Bundle of Pricing Options Discussion Questions:

1. What price should Jowers charge DayTraderJournal.com for the Atlantic bundle (i.e. Tronn servers and PESA software tool)?

2. Think broadly about the top-line revenue implications from each of the four alternative pricing strategies. Approximately how much money over the next three years will be “left on the table” if the firm were to give away the software tool for free (i.e., status quo pricing) versus utilizing one of the other pricing approaches?

3. How it Matzer likely to react to your recommendation? 4. (a) How is Cadena’s sales force likely to react to your recommendation? (b) What can Jowers

recommend to get Cadena’s hardware-oriented sales force to understand and sell the value of the PESA software effectively?

5. How are customers in your target market likely to react to your recommended pricing strategy? What response can be provided to overcome any objections?

6. How is Ontario Zink’s senior management team likely to react to the Atlantic Bundle?

Natureview Farms

Discussion Questions:

1. How has Natureview succeeded in the natural foods channel?

2. What are the two primary types of growth strategies under consideration by Natureview?

3. (a) How do the three options compare financially in terms of yearly revenue, gross margin, required investment, and profit potential? (b) If the venture capitalists extended their deadline for meeting the $20 million revenue target by 12 – 18 months, would that change your recommended action plan?

4. What are the strategic advantages and risks of each option? What channel management and conflict issues are involved?

5. What action plan should the company pursue? What changes in the current marketing mix, sales, brand, and channel partner arrangements do you recommend in order to implement the action plan?

Kingsford Charcoal Discussion Questions:

1. What is your action plan? What should brand managers Marcilie Smith Boyle and Allison Warren propose to their managers, Gordon and LaMontagne?

2. How did Clorox get itself into its present situation? Of what relevant trends should they Kingsford brand managers be aware?

3. Why do people grill? Profile a frequent griller. Why do people use charcoal versus gas when grilling?

4. How does your action plan affect Kingsford’s business objectives including market share, profit, and franchise?

5. What is the relevant category definition here? What marketing objectives do you recommend for the Kingsford brand?