Goizueta Business School at Emory University Marketing Management Tentative Fall 2007 BUS 540P Rm 301 Facilitator: Office

Hours: Phone: Mail: Adjunct Professor Nils Randrup By appointment 678-677-4230 nils@randrup.info

Marketing area administrative assistant: Ms. Sonya Owens, Rm. 523, 727-0871.

REQUIRED COURSE MATERIALS The material for the Marketing class consists of a textbooks, cases, supplementary marketing articles and case study methodology guidelines. It is expected that the students are familiar with the content of the text book prior to the class sessions. In order to participate in the case discussions is expected that the students have read all the cases and prepared answers to the preparation questions, as well as having discussed the case with their study group. Case preparation questions are found below in the course agenda, and students are expected to bring their notes with answers to the questions to class. For some of the questions, the students are required to find and use relevant models/concepts from the curriculum when preparing answers to the study questions. It is expected that the students are familiar with basic case analysis methodology. Text Book: Cases: Dakota Office Products, HBS 2005 (no. 9-102-021) Aqualisa Quartz, HBS 2005 (no. 9-502-030) Marketing for Muggles: The Harry Potter Way to Higher Profits, Business Horizon, 2002 Real Madrid Club de Ftbol, HBS 2004 (no. 9-504-063) Launching the BMW Z3 Roadster, HBS 2002 Nord MedCare Instruments, AVT 2004 Black & Decker Corporation A: the Power Tools Division, HBS Philip Kotler & Kevin Lane Keller, Marketing Management, International Edition, Pearson Prentice Hall, 2006 (Twelfth Edition)

Supplementary Articles: R. J. Dolan, Low-Tech Marketing Math, HBS, 1998 Dola/Gourvillen, Principles of Pricing, HBS 2005 (no. 9-506-021) Using ABC to Manage Customer Mix and Relationships, Robert S. Kaplan, Harvard Business School Publishing, April 7, 1997, #9-197-094, 8 pages Getting the Most Out of All Your Customers, Jacquelyn S. Thomas, Werner Reinartz, V. Kumar, Harvard Business School Publishing, July 1, 2004, #R0407J, 8 pages Staple Yourself to an Order (HBR Classic), Benson P. Shapiro, V. Kasturi Rangan, John J. Sviokla, Harvard Business School Publishing, July 1, 2004, #R0407N, 10

pages Supplementary Case study methodology guide:

Nils Randrup, Roadmap for how best to study, analyze and present cases, Int. Management Press, 2007

COURSE DESCRIPTION New research supports the fact that the loyal customer is dead and disloyalty grows rapidly amongst consumers. There are too many products without obvious differences satisfying the same need. Companies have never had a harder time getting through to their potential customers, who are now exposed to 2,000+ commercial messages a day, of which they only remember three to five. Rapid new technological changes make products obsolete faster than ever, and companies lose out because they are too late at spotting the ever-faster changes in customer habits and buying behaviors. Today, it only takes a couple of months before most new successful products are copied by competitors and, because of the short-lived competitive advantage, it often becomes impossible to pay back the R&D investments. More customers than ever before complain and demand better service, higher quality, and a wider selection of products at lower prices. How should companies deal with these market challenges? This course deals with new insights about how successful companies solve these problems by developing and delivering superior value to customers over time at a healthy profit: the essence of good marketing. The central themes are the Marketing Management Process, Marketing Analysis, Segmentation and Targeting, Competitive Strategy and Positioning, Marketing Mix planning, Customer Perception and Relationship Management, and Marketings contribution to shareholder value. The students are introduced to key marketing concepts, models and principles, providing students with a good marketing toolbox. The students will also work on and discuss a number of real-life marketing cases, focusing on how to make sound strategic marketing decisions in todays market place. COURSE OBJECTIVES (1) To provide you with an introduction to marketing concepts, the process required to develop marketing strategies, the nature of key strategic decisions (i.e., value creation, communication, delivery and extraction), the dual goals of creating satisfaction for the customers and loyalty.

(2)

For those who are intending to pursue a more in-depth examination of marketing, this course will provide you with a set of basic tools to enable you to interact effectively with marketing specialists and a foundation for subsequent in-depth study in other courses. Participants will be expected to learn the "language of marketing." It is also expected that by the end of the course you will have a solid understanding of marketing issues, the major decision areas under marketing responsibility, the basic interrelationships of those decision areas, and an appreciation of how to apply key frameworks and tools.

(3)

What the Course Is Not

(1)

It is not a marketing strategy course. While there will be discussion of the key strategy

concepts such as market planning, competitive reactions, marketing competencies, the thrust will be more at gaining knowledge rather than a deep understanding of market strategy. (2) Because this is a survey course, it emphasizes exposure to a broad scope of issues at the expense of in-depth treatment of individual topics.

COURSE CULTURE AND PEDAGOGY The methods of learning in this course require advanced preparation by the participants. The presentation and exposition of the marketing concepts will be through a mix of lecture, dialogue, discussion, group learning, case discussion, and participant projects. The text-book and accompanying lecture/discussions expand on the concepts and ideas which provide the basis for marketing decision making. The cases provide you with an opportunity to discuss and apply these concepts in "real world" marketing situations. Case discussions are intended to present dilemmas as they are encountered by managers, so it is important to deal with the cases as you find them (i.e., no Monday morning quarterbacking based on knowledge of what happened after the time frame of the case). In case discussions, the present tense should be interpreted as referring to the time frame of the case or its end. Please do not prepare for the class discussion by seeking out additional or more recent data on the firms or industries in the case. The Marketing Current Issues discussion Every class meeting period, we will reserve the first 15-20 minutes of class to discuss how the recent actions by firms or trends in the marketplace are posing new challenges and opportunities to marketing. I expect this topic to come from you, based on observations you have done, although I can always think of an important current issue to discuss. I expect you to have opinions, thoughts, or questions related to something happening in the real world, and be prepared to bring it up in class. This is a useful way to enhance the relevance of the class discussions against current events, and the quality of your class participation. Honor code As with all classes and work conducted at the Goizueta Business School, the principles and articles of the Honor Code are in force. In addition, the following principles apply to this class: 1) Discussion with others (except other study group members) about the Course Paper prior to the hand-in deadline is a violation of the Honor Code. Also, please note that passing case notes and class handouts to students who have yet to take the course or who were enrolled in this course in previous semesters is also a violation of the Honor Code in my estimation. The group project should reflect the work of only members of the group. Each and every member of a group should contribute to the final group project in an equitable manner. If this becomes a problem and a formal complaint is submitted to me by a group member, I will use peer evaluation ratings and make necessary adjustments to your grade(s). 2) For the individual case assignments and all in-class case discussions, you are expected not to discuss, show or distribute your assignments, notes or observations to

anyone else prior to submitting your written analysis or participating in the case discussions. The case discussions are intended to take place during the designated class sessions, and not before. The case analysis efforts, including the 2 written case assignments, are intended to reflect your work and your work only. You may only rely on and refer to materials (including cases and readings) that have been assigned and required in the course. Do not go to the web to search out descriptions of what happened or interpretations of why. FirstClass The FirstClass system will be used to enhance communications and interaction across the participants and facilitator of the class. We expect each of you to monitor FirstClass for updates and information related to this class. In addition, the Conference can provide a forum for you to communicate your ideas, comments, insights and thoughts to your colleagues, e.g. your current marketing issue observations. Electronic participation can enhance class, but does not replace in-class participation. GRADING AND EVALUATION The students will be evaluated on the following assignments: 1. 2. 3. 4. Individual analytical assignments (3) Course Paper (Group project) Final Exam Class participation 25% 25% 25% 25%

Generally speaking the grading will be based on an overall holistic evaluation of each assignment, where quality of thought, relevant use of curriculum (concepts, theories, models etc.), soundness and strength of the argumentation, quality of the structure, and quality of presentation form are major elements. The students are given points for each assignment from 0-10. The points are converted at the conclusion of the course to the final course score and then compared to scores from other students in the class. The Case assignments and course paper must be handed in as electronic documents. Case assignments and course paper must be submitted as attachment to an e-mail - in MS Word (.doc) or as a PDF file with a maximum file size of 4 MB. All assignments must be submitted to the First Class Course Conference and to the Professor (nils@randrup.info), unless otherwise stated. 1. Individual Analytical Assignments Students are required to hand in 2 individual case analysis papers and one take-home assignment of max. 2,000 words each, excl. front page, list of content, visual elements (figures, graphs, text tables), and attachments. The 2 case assignments are a case study write-up based on the case at hand, and must as minimum include answers to the preparatory questions. The take home assignment is a communication analysis assignment with a special briefing. Each assignment carries 10 possible points. Assignments are evaluated as a whole, where the quality of thought, the relevant use of curriculum, soundness/strength of argumentation, structure, and presentation form are key elements. The case assignments are due no later than at the beginning of the class, where the case is supposed to be discussed. The take-home assignment is due at the following class, according to the course schedule. If an assignment is not handed in it time, no credit points are given. The final score for all analysis assignments is an average of the 3 different scores given for each of the analysis

assignments. The students are free to choose what 2 cases they want to hand in. However, the two case assignments - Dakota and Harry Potter can not be chosen as formally evaluated case assignments. They are only intended for use in class discussion. Individual case assignment grades or comments will not be published or otherwise available to the students during the semester. CASE DISCUSSION PREPARATION QUESTIONS: Dakota Office Products Case Study questions: 1. Calculate the profitability of customer A and B. 2. What are the key reasons for the difference in profitability of these two typical types of customers? 3. What could be done to increase the company profits based on the profitability information at hand? Aqualisa Quartz Study questions: 1. What is the Quarts value proposition to Plumbers and to the Consumers? 2. Why is the Quartz Shower not selling? 3. What part of the market should Rawlinson target in order to fix the sales problem? Should he focus on Consumers (direct sales), DIY, Developers or should he do something different altogether? Harry Potter Study questions:

1. Build an value chain for a normal publisher from reception of potential manuscripts to sales
of books by outlining the process from a manuscript is received from an author until the products are distributed and sold at the retail end. Make assumptions where relevant. 2. Why do you think that a number of publishers turned the first Harry Potter manuscript down? 3. What can or should these publishers do (if anything) in order not to turn potential blockbuster manuscripts - like Harry Potter - down in the future?? Real Madrid Club de Ftbol Study questions: 1. What are the revenue streams in the business model for Real Madrid, and what are the key cost drivers? 2. How would you describe the brand of Real Madrid? 3. What is the most important branding or marketing issue for Real Madrid to solve in this case?

BMW Z3 Study questions: 1. What type of Sales/Marketing Communication effort is BMW using? 2. What are the key advantages and disadvantages of the way BMW launched the Z3 roadster? 3. What is the most important marketing challenge at this point in the Z3 launch phase? Nord MedCare Instruments Study questions: 1. Who is involved in taking the buying decision for Surgical Instruments in the hospital? 2. What do you suspect are the key motivations to buy surgical instruments for each person involved, and what power do you think each person has to impact the buying decision? Please make assumptions when relevant. 3. Why do you think the initial sales meetings were not effective in getting the first sales? Black & Decker Study questions: 1. What is the main problem in the case? 2. Who should optimally own and be responsible for solving the problem? 3. What option should Black & Decker choose? Are there other relevant options than the ones listed?

2. Course paper At the completion of the course - due not later at the beginning of the last class - each group is expected to hand in a paper of max. 6.000 words excluding attachments, front page, list of content, and visual elements (graphs/figures/tables). The objective of the assignment is to evaluate the students skills and abilities in the strategic problem solving of a marketing problem. Papers are not judged on the quantity of words, but on quality of thought, ability to identify, specify and solve a relevant marketing problem, relevant use of theories and models, soundness of the argumentation, and quality of the presentation of content. Each group should start the assignment by selecting a company and a marketing related theme/problem area to study. A short 1 pages presentation of this must be handed in to the professor no later than by Oct. 1.st. The choice of company and marketing theme is up to the group, but obviously it would be wise to choose a company where there is access to relevant marketing information, preferably from a company the student knows intimately beforehand or where relevant information can easily be found and is readily available. It is not a requirement that students secure or explicitly use information of a confidential nature1 in the report.

With a prior written request and subsequent written accept, it is possible to restrict access to information in the course paper e.g. through the use of a non-disclosure agreements. The request must be made in good time before the deadline (min. 6 weeks). The disclosure agreement must be given min. 4 weeks before the deadline.

The assignment is expected to include the following.

Course Paper Description 1. Introduction Present the selected marketing area/theme of the paper and give a short but relevant introduction to the product/company at hand. 2. Marketing Situation Analysis Describe the marketing context relevant for the problem area/theme, and analyze the selected marketing problem area/theme in depth. 3. Marketing Problem Identification Based on the situation analysis, list and discuss the relevant marketing issues at hand within the selected marketing area/theme, select the most important marketing issue to solve first in the current situation, argue why this is the most important issue. 4. Identification of Possible Solutions Description of 2-4 possible alternative ways to solve the problem. 5. Evaluation and Choice of Solution Evaluate each possible strategic solution, estimating the likely contribution consequences for each alternative solution, choose the best solution, and argue your choice. 6. Outline of Action Plan to Implement a Solution Present an overview over how the solution should be carried out in practice, what should be done, by whom, when and which resources would be needed. 7. Attachments Supplementary materials relevant for the assignment. Include a short description of your professional profile and background, preferably the same description as included in the other courses. The following advice and hints about scope and content is not mandatory in anyway or form, but might be considered as relevant input when writing up the course paper:
1. Introduction Scope: 5% 2. Marketing Situation Analysis Scope: 20%

The marketing area/theme is not the specific key issue selected. It is a more general description of the area of focus and a statement of the nature of the general marketing area at hand. An example of a marketing area/theme from Budweiser could be: How to deal with the re-launch of a product that failed in Denmark. Include only the relevant marketing information and background material (can also be included as attachments) in order to analyze the marketing situation for the chosen theme A good marketing analysis explains and dissects the situation by using concepts/models from curriculum where relevant. Examples of information to include: A situation description from Budweiser on their failed launch of Budweiser in Scandinavia could include information of the launch strategy, the data on the marketing mix, the tracking results including the development of sales/market share, outline of the marketing action plan, description of consumer/customer research etc. Dont include information which is not relevant for the selected marketing issue, but focus on outlining the most relevant marketing facts and insights. Within the scope of this assignment, it is not recommended or realistic that the students go through all the steps of analyzing the planning and executing the marketing efforts from A to Z, but rather focus on the relevant area of the marketing effort relevant to the chosen marketing theme. Please also refer to the case studies in the case package to see examples of the typical content in a description of situation and marketing problem area/theme.

3. Marketing Problem Identification Scope: 10%

Do not select all relevant issues/problems and fit it into one general problem formulation, but try to narrow it down and in precise words pinpoint the most relevant marketing issue to solve within the chosen area. An example from Budweiser of a main problem distilled from the general problem area/theme through a marketing problem analysis could be: What consumers should Budweiser target in order to secure a successful re-launch of Budweiser in Scandinavia. Another relevant problem from the same situation could be: What competitive advantage and positioning statement should Budweiser choose in order successfully re-launch the product? Remember to include your rationale as for why the issue/problem stated is the most important marketing problem, and to delimit the chosen issue from other relevant issues in the same situation. In the past low scoring papers are often based on very general problem descriptions like: How can Tomahawk sell their new product successfully?, How should we re-launch the X23 insulation product or What should the marketing strategy and marketing plan be for the new Guarana soft drink product. The typical general problem for these 3 examples is the fact that the student has not shown the ability to analyze the theme properly in depth and have not decided and chosen which sub-problem is the most important to solve. With a very broadly formulated main problem, which covers most of the marketing area and curriculum, it can be very hard to produce a high scoring paper. Another conclusion from past student papers is that some low scoring papers choose a problem which is not in essence a marketing problem, but more a financial or organizational problem. Also students should avoid the more subjective issue definitions, where the student are seeking proof of their marketing ideas or hypothesis, e.g. Why should we use Sponsorship in our communication mix?. This is in essence not a decision problem, but an argumentation problem. An appropriate main issue defines a strategic decision making problem, e.g. What communication mix is the best ....?. An argumentation problem for a good idea - like the Sponsorship example above - should be avoided. High scoring papers on the other hand show good skills in choosing an important but specific marketing problem, that are easily related to one or another area of the marketing framework, and where it is easy to identify relevant models and principles from the curriculum which can help in the solution of the problem. There are always different ways of solving the same problem. Show you marketing skills by developing a few possible and realistic strategies/alternative solutions that can solve the main problem. Make sure to leave out infeasible strategies or solutions that will not solve the main problem. It is not enough to just describe one solution. An example of how to outline a possible solution for the targeting problem: Budweiser could target young people from 18-30 in urban areas who go out more than twice a month to a bar, caf or restaurant in the larger cities. These are the key facts of the strategyThis is why it is an interesting option These are the advantages/strengths And these are the disadvantages/weaknesses Typically low scoring papers only list one option because they suggest strategies that are complementary and could/should be implemented simultaneously. High scoring papers on the other hand have at least 2 good options, and beyond that they identify the key action areas for each strategy, so it is possible to use this when estimating the contribution effects as part of 5. Evaluation and choice of solution e.g. the expected cost and revenues from each option. Consequences can be seen as different types, which all relate to value areas of the form, e.g. these 4:

4. Identification of Possible Solutions Scope: 25%

5. Evaluation and Choice of Solution Scope: 20%

1. General strategic - e.g. a cost/benefits which could include to which extent the solution is vision/mission/policy relevant, or its value in terms of business processes, skills/capabilities, competitive strategy, corporate values and cultural norms, other key performance indicators of the learning/capabilities and business processes. 2. Financial - e.g. ROI, estimated net present value (NPV), marginal contribution, incremental value, shareholder value, cash flow or other financial key performance indicators. 3. Market/Customer results e.g. turnover, market share, awareness, customer satisfaction, buying intention, corporate/brand image, goodwill, or other customer/market based key performance indicators. 4. Risk level/profile The level of risk for failure/success, the likelihood of success fo the alternative solution, the feasibility of the implementation given the existing organization, resources, and time. Base your choice of solution on your evaluation and give a short rationale for your selection. Typically low scoring papers do not dig into the meat of estimating or guessing at the expected outcome of each strategy selected. The best papers typically have some sort of specific contribution based estimation, e.g. financially based estimation of ROI evaluation or a NPV calculation.

6. Outline of Action Plan to Implement a Solution Scope: 20% 7. Attachments

The purpose of the action plan is to show how to make the selected solution/strategy operational. The outline could include a project plan, an action list, an implementation plan or other relevant formats you are familiar with

You are welcome to include background materials, figures, data, analysis documentation etc. but remember that the paper itself must be possible to read and understand, without necessarily examining the attachments in detail.

3. Final Exam

The exam is preliminary set as a 4 hour written open book exam. The examination is essay style and based on answering a number of case and curriculum based questions. The evaluation is done based on quality of thought, relevant use of curriculum, soundness/strength of argumentation, and quality of presentation form. The exam is given a max. of 10 points and each question has equal weight unless otherwise stated in writing in the exam briefing. Further information about the examination will follow. 4. Class Participation An effective class session can only occur if both you and I are involved in the learning process. It requires openness, a sense of skepticism, and an interest in learning new ideas and concepts. This suggests that whatever the topic there will always be room for the subjective, the opinion and the intuition. You should be willing to share ideas with the other participants and also be willing to listen to them. Your active participation will help us test our own assumptions and assertions. Your enthusiasm, your intellect and your physical presence can contribute tremendously to your learning. Furthermore, your colleagues are important sources of learning. Take advantage of your colleagues knowledge and ideas, and do your part by being prepared and contributing to both group and class meetings. However, being a cynic will not help. Cynics sit on the sidelines and disengage. They pollute the learning environment. Since, your consistent involvement in these class sessions is essential to achieving the objectives of the course, your learning will be impeded if you do not read the material assigned prior to class or if you skip information and try to read it at a later date. Class participation will be graded on a daily basis. Participants are expected to come to class prepared to discuss, ask questions and contribute to the learning process. For many situations, there might not be a single right answer. We encourage you to be creative risk takers. You will always have the option to explain, clarify and justify your work and positions. Class participation is a critical component of the evaluation of your performance. Please note that attendance does not constitute participation. If you for some reason must miss a class, please submit within three days of the class you missed, a write up of your position on the assigned case discussion questions of 500-700 words. This will count toward your class participation grade, but will not be returned. Class participation evaluation will partly also be build on the involvement and quality of participation in the Current Marketing Issues discussions. During the last class session, each group is expected to present the main insights from the work with their course paper to the other students. The presentation is expected to be max. 10 min. long in total. If slides (PowerPoint or similar) are used, please restrict the presentation to max. 8 pages. Each group is encouraged to select 1-2 people to present the main findings. It is not required or necessary to let all group members speak during the course paper insight presentation. It is recommended that each group include answers to the following questions in their presentations: 1. What are the key facts about the organization and situation at hand, and what seems to be the key issue? 2. What solutions were evaluated? 3. What was the preferred solution and why? 4. What were the key learnings in the group while working on the course paper?

In evaluating class participation, we generally reward contributions that 1) get the discussions off to a productive start, 2) shape the discussion through the introduction or use of concepts and frameworks from curriculum, 3) provide enlightening observations and preferably quantitative analysis, 4) help change direction when needed, 5) summarize others' comments, all in a concise manner with avoidance of repetition and "chip shots", 6) offer interesting perspectives for the current issue discussion, and 7) include interesting examples or exemplifications.

TENTATIVE SCHEDULE FOR FALL 2007 Session 1 Introduction to Marketing Class Date/time/place Saturday Sept. 15 9:00 am 12:00 pm Classroom: TBD Saturday Sept. 22 9:00 am 12:00 pm Classroom: TBD Saturday Sept. 29 9:00 am 12:00 pm Classroom: TBD Saturday Oct. 13 9:00 am 12:00 pm Classroom: TBD Saturday Oct. 20 8:00 am 12:00 pm Classroom: TBD Saturday Nov. 3 8:00 am 12:00 pm Classroom: TBD Saturday Nov. 17 8:00 am 12:00 pm Classroom: TBD Saturday Nov. 31 6:00 am 9:00 pm Classroom: TBD Themes - Course introduction and overview - Introduction to case study methodology - Marketing context, process and contribution to shareholder value - Market characteristics - Customer analysis - Segmentation and target market selection - Competitive strategy - Positioning - Channel management - E-commerce - Go-to-market strategies - Product portfolio management - Product and brand value - Brand Architecture - Briefing on take home assignment - Integrated communication - Mass communication (Advertising, sales promotion, PR, Direct marketing) - Personal selling - Sales strategies and concepts - Sales Force Management - Course paper presentations - Class Wrap-up Recommended readings - Text book cpt. 1, 2, 22 - Case Methodology - Using ABC to - Low-Tech Marketing Math - Text book cpt. 3, 4, 5, 6, 7 - Staple Yourself to an Order Text book cpt. 8, 10, 11 Assignments Dakota Office Products

2 Marketing Analysis 3 Segmentation, positioning, target market selection 4 Distribution and pricing 5 Products and Branding 6 Consumer communication (B2C focus) 7 Customer communication (B2B focus) 8 Marketing conclusions

Harry Potter

Aqualisa Quartz

- Text book cpt. 14, 15, 16, 21 - Principles of Pricing Text book cpt. 9, 12, 13, 20 Text book Cpt. 17, 18

Black & Decker

Real Madrid Club de Ftbol

BMW Z3 Take home assignment deadline Nord MedCare Instruments

- Text book Cpt. 19 - Getting the Most Out of All Your Customers

Course paper Course Paper Presentations