Introduction to Marketing MARKETING MANAGEMENT Concepts and Processes for

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					                              MARKETING MANAGEMENT
                       Concepts and Processes for Meeting and Exceeding
                                       Customer Needs

                                 BUSINESS 540(P) – Fall 2006
                                   Goizueta Business School
                                      Emory University

SCHEDULE:       Mondays 6:30-9:30 pm

LOCATION:       301 Goizueta Business School

INSTRUCTOR:     Dr. Reshma H. Shah

OFFICE:         GBS 522
                Marketing Area Administrative Assistant: Sonya Owens – GBS 523; 727-0871.

PHONE:          (404) 727-6302 (office)
                (770) 448-3742 (home - emergencies only please)

OFFICE HOURS:   T and TH: 2:00-3:30 or by appointment

TEXTBOOK:       Marketing Management, 12th edition, by Philip Kotler and Kevin Lane Keller
                Cases and Notes are available at or on e-reserves. Additional readings may be
                posted on the course conference

SUMMARY:        In the last several years, markets for both consumer and industrial goods and services
                have undergone dramatic and substantial changes - due to a number of forces, including
                intense global competition, rapidly changing technologies, and the increased
                sophistication of both buyers and sellers. These changes have created the need for a
                clearer understanding of the key mechanisms and processes involved in creating and
                satisfying customer demand - commonly referred to as ―marketing.‖ Now, more than
                ever before, companies need to develop and implement strong strategies that set
                themselves apart from the competition.

                The major role of marketing in an organization is determining, creating, communicating
                and delivering a value proposition that meets the needs of its customers. In addition,
                marketing in its boundary-spanning role introduces the ―voice of the customer‖ into the
                firm, helps build long-term relationships and ensures that firms build equity with their

                As a customer, have you ever wondered how companies are able to offer you things you
                want, where you want them, when you want them, in a manner which is easy for you to
                use and which you can afford? Now consider that some companies are great at doing
                these things and delivering customers superior value whereas others just mediocre. Why?
                What are some of the good ones doing right and the not so good ones doing wrong?
                These are some of the questions that we will begin to answer in this course. In essence,
                this course will familiarize you with the language of marketing and can enhance your
                experience as both a manager and a customer.
OBJECTIVES:     The purpose of this course is to expose you to and familiarize you with the basic concepts
                and principles of marketing management. After taking this course, whether or not you
                intend to specialize in marketing, you should have a greater appreciation for the role of
                marketing in organizations and have a better understanding of how to apply marketing
                concepts and tools to analyze and solve marketing problems and challenges. More
                specifically, this course will:

                   To provide you with an introduction to the process required to develop marketing
                    strategies, and to the nature of key strategic decisions (i.e., value creation,
                    communication, delivery and extraction) with the dual goals of creating satisfaction
                    for the customers and loyalty.
                   For those who are not intending to pursue a concentration in marketing, this course
                    will provide you with a set of basic tools to enable you to interact effectively with
                    marketing specialists. For participants intending to specialize in marketing as a part
                    of their study programs, this course will provide the foundation for subsequent in-
                    depth study in other courses.
                   Participants will be expected to 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.

AND EMPHASIS:   This course is an introductory course to marketing management and assumes that you
                have either had no exposure or minimal exposure to the topic academically. This course
                is therefore intended to be a survey course and a prerequisite to other marketing courses.
                As such, it emphasizes exposure to a broad scope of issues at the expense of in-depth
                treatment of individual topics. Subsequent courses are offered which will enable you to
                study specific marketing disciplines in depth. This course is also not a marketing strategy
                course. While there will be discussion of the key strategy concepts such as market
                planning, competitive reactions, marketing competencies, the focus will be more at
                gaining knowledge rather than developing a deep understanding of marketing strategy

                The course is organized around three key themes:

                    1. Creating
                    1. Creating                    2. Capturing
                                                   2. Capturing                       3. Sustaining
                                                                                      3. Sustaining
                       Value                          Value
                                                       Value                              Value

                The first theme focuses on the role of marketing – creating value for customers. This
                involves assessing environmental opportunities and limitations, identifying customer
                needs, and conducting market research and selection. The second theme focuses on
                capturing value – this includes go-to-market strategies such as product and brand
                development, pricing, distribution and communication. The final theme considers
                sustaining value over time, including customer relationship management and lifetime
                value considerations. We will explore each of these areas as we move through the topics
                in this course.
PEDAGOGY              The methods of learning in this course require advance preparation. Your learning will be
                      facilitated through a combination of lectures, class discussions, case analyses, guest
                      speakers, and videos, with an emphasis on your participation and interaction. You are
                      expected to read the appropriate chapters in the text and the assigned readings before
                      each class meeting. In addition to the book chapters, you are encouraged to read current
                      issues of the business press such as the Wall Street Journal, Businessweek, Fortune,
                      Harvard Business Review, Advertising Age, and other such newspapers and magazines.

REQUIREMENTS: To help insure that you contribute conscientiously to your learning, you are required to
              show examples of your knowledge development. Because different people express their
              knowledge in different ways, you will have several means of expressing your learning. I
              will be able to assess your learning and performance through exams, exercises, and a term

GRADING:              Mid Term Exam                          25%
                      Two Assignments                        20% (10% each)
                      Term Project                           35%
                      Participation (including attendance)   20%

1) The mid-term exam will be an essay-based take home exam which will require you to apply the theories and
concepts we have been studying to practice-based problems.

2) You will prepare two short assignments that focus on various aspects of the marketing process. Specific
details about these assignments will be described in a separate handout. You will work individually or in pairs
on them.

3) A term project paper will be due at the end of the semester – December 13, 2006, and will require you to
develop a marketing plan for either a new product or service or for a modification to an existing product or
service. Specific details about this project will be described in a separate handout. You will be expected to
work in teams of four or five and turn in interim deliverables periodically.

The process of assigning grades involves a great deal of care and deliberation. The three main goals I strive to
achieve are accuracy, fairness, and consistency. I go through great lengths to construct a process for myself and
my TAs in which the grading achieves these three goals. Your grade will be based on your performance on the
course material and nothing else. Therefore, I will do everything in my power to ensure that each one of you is
treated in a consistent manner. As a result, neither I, nor my TAs, will ever give a student any preferential
treatment over another. If you feel that we have made a mistake in grading your work, you may submit it for re-
grading as long as you do so within three weeks of having received your grade. Please keep in mind that a re-
grade can lead to a higher or lower revised grade.

Since this an MBA Core course, it is subject to the same grading criteria as all MBA Core courses. You will be
assessed relative to your peers and your performance will not be determined by some absolute standard. In the
past, I have found that students typically score in the ranges that are mandated by the school which are as
follows: The grade of "Distinction" represents only exceptional work and the grade of "High Performance"
represents work of commendable nature. Therefore, it is suggested that grades of "Distinction" be limited to
15% of enrollment in Core courses, and that grades of "High Performance" and "Distinction" in combination not
exceed 50% of total enrollment in Core courses. Additionally, the faculty suggests that a range of 5% to 10% is
an appropriate average distribution for the grade of "Low Performance" in Core courses.
From you, of me:   As a student in this course, you are my ―customer/partner.‖ I am one of your ―suppliers.‖
                   The textbook, articles, cases, and speakers are other suppliers. Information, knowledge
                   and know-how are parts of the ―product‖ you will receive. I am committed to supplying
                   you with the best possible source of information, knowledge and know-how that will
                   meet your needs to develop a basic understanding of marketing.

                   Throughout the term, I will aim to meet and exceed your expectations through the
                   collection of your feedback and the improvement of the course to better suit your needs.
                   Additionally, if you need special arrangements for seating, written material or other
                   resources to help you learn, please let me know.

From me, of you:   I am also your customer/partner - and so are your classmates. As a ―supplier,‖ you need
                   to know what I value and how you can best provide it to me to meet and exceed my
                   expectations. I, too, am here to consume information, knowledge and know-how from
                   you. Your classmates can also benefit from your experiences and contributions to our
                   discussions in class. Here are some things for you to consider in your role as a supplier:

Preparation:       You should prepare all readings in advance of our class discussions. Class lectures and
                   discussions will assume that you have a general understanding of some terms and ideas
                   from the required reading. In this combination lecture and discussion format, your
                   individual contribution, questions, and insights become important to your own learning
                   and that of your classmates. Since your consistent involvement in 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. Remember the ―Law of the Farm.‖

Missed Class:      Should you miss a class, please let me know in advance, when possible. It is your
                   responsibility to contact me and ask me for any materials handed out during class, or
                   make arrangements with a classmate for notes and materials. If you miss a class on the
                   day an exam is given or an assignment is due, and you have not cleared it with me ahead
                   of time, you will not receive credit for that assignment.

Assignments:       Assignments are due on the date indicated in the syllabus and at the beginning of class.
                   Late assignments will not be accepted and cannot be made up, unless unusual
                   circumstances are involved. Professional presentation is the minimum acceptable
                   standard for all of your work. At a minimum, make sure that your assignments are free of
                   typographical and grammatical errors. Please see me if you are unclear about guidelines
                   in this area.

Case Analysis:     Cases are an important component of the learning process in business school. Each case
                   presents an actual marketing situation and provides a scenario for use in strategy
                   diagnosis and strategy determination. Cases serve important teaching/learning goals:

                      They offer you an opportunity to diagnose an organization’s business and marketing
                       strategies and allow you to develop recommendations.
                      They provide interesting marketplace situations for learning and applying the
                       marketing management concepts and methods covered in the course.
                      Class discussions of cases will help you to improve your skills and confidence in
                       preparing and presenting solutions to marketing strategy problems to management.
                 For cases to be an effective learning tool, your advance preparation is essential. 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 the same vein, please do not prepare for the class discussion by seeking out additional
                 or more recent data on the firms or industries in the case.

                 In evaluating the cases, you should apply the concepts and frameworks discussed in the
                 readings and in class. Learning how to apply these concepts and frameworks is essential
                 for success in this class. In preparing, skim the case 3-4 days before we cover it in class.
                 The same or the following day read the case once thoroughly underlining key points and
                 making notes in the margins. Two days before we cover the case, do a more thorough
                 preparation – making notes and preparing a strategy. Group work is helpful for case
                 preparation. You are encouraged to work with your classmates on all of the cases, except
                 for those which are the subject of the written assignments.

                 As we discuss cases in class, I will ask you to role play the various constituents that are
                 highlighted in the case. At times you will know your assigned role in advance, at times
                 you will be asked to think about the possible positions and decision making options for
                 the whole range of stakeholders and then be asked to assume a specific role on the spot.
                 In either case, cases enable you to analyze actual business situations and determine the
                 most appropriate courses of actions given certain assumptions, and having had analyzed
                 the case facts and figures.

Participation:   Class participation is strongly encouraged to enhance your learning experience. You will
                 be expected to play an active role in class. Proactive, intelligent contributions to class
                 discussions (questions, answers, current examples, etc.) will be considered favorably in
                 determining your final grade. Your enthusiasm, your intellect, and your physical presence
                 can contribute tremendously to your learning. Furthermore, your colleagues and their
                 insights are also invaluable resources. Do your part by being prepared and contributing to
                 both group and class meetings.

                 In evaluating class participation, I try to reward contributions that get the discussion off to
                 a productive start, that shape the discussion through the introduction or use of concepts
                 and frameworks, provide enlightening analysis, help change direction when needed, and
                 that summarize others’ comments in a concise manner without repetition.

                 In the News: We will reserve the first few minutes of each class session to discuss any
                 current event topic related to the chapter/topic assigned for the week. I expect this topic
                 to come from you from any of a variety of sources. Your news must relate to the topic
                 that we are discussing on any given class sessions and cannot be a general newsworthy
                 item related to any marketing topic. You will be expected to review your story with the
                 class, and then show the link between the story and theory that we have been studying.
                 Ideally, you will pose questions to the class that will help us to kick off a discussion
                 around the topic at hand.

                 We must all be committed to respecting the views of others and recognize that everyone
                 has valuable points to contribute. However, I encourage you to have differences of
                 opinion and present them constructively in our discussion. For many situations, there
                      might not be a single right answer so I encourage you to be creative risk takers when it
                      comes to ideation. This variety of perspectives will add spice to our class time together.

                      Finally, as a courtesy to your classmates, please arrive on time for class sessions. Do
                      your best to not hold side conversations during class meetings. If you have questions
                      relating to the material we are discussing do not hesitate to ask. It is likely that others
                      may have the same question. Please be sure to turn off your cell phones, pagers, and
                      other electronic devices at the start of every class. Also laptop computers are not to be
                      used during class.

Academic Integrity: You have the obligation as students to exhibit honesty and to respect the ethical standards
                    of the University in carrying out your academic assignments. The school enforces a strict
                    honor code. It is expected that you will only submit original work - individual or group.
                    Material from a previously published or otherwise used source which is quoted or
                    paraphrased in written assignments should be provided with a full citation of the source

                      It is also expected that students will not seek, receive, accept or give assistance on tests or
                      use material in the course that provides an unfair advantage. It is also a violation of the
                      honor code to have knowledge of someone else’s violation and not report it. Passing case
                      notes and class handouts to students who have yet to take the course or receiving such
                      information from students who were enrolled in previous semesters is also a violation of
                      the honor code.

                      Discussion with others (except for group members for group projects) about written
                      submissions to be graded is a violation of the honor code. However, discussion of cases
                      prior to class with other students is allowed - in fact, I encourage this form of interaction.
                      But, I will not tolerate cheating or plagiarism of any kind and will handle any incidents
                      according to the guidelines of the Goizueta Business School’s Honor Code and the
                      guidelines established by Emory University. Basically, have integrity; don't cheat.

First Class:          The First Class system will be used to enhance communications and interaction across all
                      those involved with this course. I expect each of you to monitor First Class on a daily
                      basis for updates and information related to this class. In addition, the 540-000
                      Conference can provide a forum for you to communicate your ideas, comments, insights,
                      and thoughts to your colleagues. Electronic participation can enhance, but does not
                      replace in-class participation.

                      Finally, I hope to make this course a useful and enjoyable learning experience for all of
                      us. Please feel free to contact me if I can help you in any way.

Melissa Aery
Melissa Aery is a student in the Goizueta Evening MBA Program class of 2008. Melissa began her career in
Sales and Account Management specializing in software and services for the manufacturing industry. She then
moved on to John Deere working within a software division and has held various business to business
marketing positions in Business Development, New Product Marketing, and Marketing Communications. She
currently serves as a Product Manager within the Agri Services division of John Deere. She is on track to
graduate next May.

Carol Hill
Carol holds a Bachelor of Science degree in Public Relations from the University of Florida. Before joining the
Goizueta Business School, Carol was the regional marketing manager for Paul Davis Restoration, a national
network of restoration contractors. Prior to PDR, Carol worked as an account executive for Fleishman-Hillard
in the Atlanta office on the business-to-business team. Her clients included national companies such as
ChoicePoint, Orkin Pest Control and Nortel Networks.

Wangui McKelvey
Wangui is currently the Director of Media Operations for Vertis Communications. Her responsibilities include:
leading a media services team of fifteen people who deliver media solutions to multiple clients; cultivating and
growing client relationships; and analyzing profit and loss reports to determine the profitability of each account.
Wangui previously held several positions ranging from Senior Automotive Planner to Retail Manager
throughout her six-year tenure with the company. Before joining Vertis, she worked for The Washington Post
as a Market Research Analyst and with The Kroger Company as a store manager for one year. Wangui holds a
Bachelors of Science degree in Business Economics from Florida A&M University and is currently enrolled in
the Evening MBA Program at GBS intending to graduate in May 2007.

Andy Simpson
Andy is originally from Liverpool, England, but spent most of his younger years in Atlanta, Georgia and
Denver, Colorado. He attended college at Colorado State University (home of the fighting Rammies) in Fort
Collins, Colorado where he pursued a degree in marketing. After graduating in 1999, he went to work for Black
& Decker / DeWALT as a Field Marketing Representative and a Territory Marketing Manager. While at Black
& Decker, he had the opportunity to live and work in Los Angeles, California and Seattle, Washington. At
Goizueta, Andy is pursuing concentrations in marketing and leadership and will graduate in May 2007.

Karen Soberg
Karen received her bachelor’s degree from Washington University in St. Louis with a triple major in Marketing,
French, and International Business. After receiving her degree, Karen moved to New York City where she
worked in advertising (Grey Worldwide, Lowe Lintas, The Kaplan Thaler Group) and promotions/marketing
strategy (The Gem Group). Karen’s clients have included: M&M Mars Inc, Playtex/Banana Boat, Heineken,
The Weather Channel, Aflac and Coldwell Banker. Karen moved to Atlanta in 2005 to begin her MBA studies
at Emory University, where she is currently in her 2nd year concentrating on Marketing. For her internship this
summer, Karen worked at Kimberly-Clark as the Huggies Brand Management Intern.

Mandana Varahrami
Mandana was born and raised in Houston, Texas. She received a Bachelor of Social Work from the University
of Texas Austin in 1998 and a Masters of Public Health from Emory University’s Rollins School of Public
Health in May 2005. Mandana is a second year student at Goizueta Business School with a concentration in
Finance and Entrepreneurship. She interned this past summer with Sony BMG, where she completed a project
focusing on forecasting 1st week sales for new releases.

Ikea Invades the USA – September 25, 2006

   1. What factors account for the success of IKEA?
   2. What do you think of the company’s product strategy and product range? Do you agree with the matrix
      approach described in Figure B of the case?
   3. Despite its success, there are many downsides to shopping at IKEA. What are some of these downsides?
      IKEA’s vision statement (in figure c of the case) describes how the company seeks to build a partnership
      with its customers. What do you think of this vision statement?
   4. The fact that IKEA hopes to have fifty stores in operation in the USA by 2013 is an indication of how
      optimistic the company is about the viability of its value proposition in this country. Do you think IKEA
      is being overly optimistic in its growth plans? How would you improve IKEA’s value proposition to
      make it even more attractive to American consumers?
   5. To achieve the kind of growth that IKEA is hoping for, should the company change its product strategy?
      If so, in what ways? What about its product range—are there limitations to the matrix approach?
      Should the company expand its product lineup to include a greater number of styles and price points?
      In what other ways should the company consider changing its product lineup?
   6. If you had to predict, what do you think IKEA’s value proposition will look like in ten years?
   7. Some industry observers have suggested that IKEA should open a number of smaller, satellite stores
      across the USA (e.g. in shopping malls, strip malls, etc.) By offering a limited range of IKEA products,
      these IKEA lite shops would presumably give consumers who do not have access to a full-size IKEA the
      opportunity to experience the brand. In addition, consumers who do live near a full-size IKEA would be
      able to use these mini-outlets to make minor purchases (e.g. purchase a set of mugs as opposed to an
      entire living room set.) Do you agree with this idea? Why or why not?

Nestle Refrigerated Foods (A) – October 23, 2006

1. Using the BASES model described in Exhibit 9, forecast the estimated demand (trial and repeat) for the two
   Pizza options under consideration: Pizza and Topping and Pizza only. Most of the data needed for the
   forecasting exercise is available in Exhibit 21 and pages 15 & 34.

Helpful hints:
In Exhibit 21, there is a big difference between Contadina users and non-users on the ―top two box‖ scores.
This will obviously affect the forecast depending on what proportions are used for Contadina users versus non-
users in the population.

On page 14 (2nd to last paragraph), Nestle’s marketing research department cautions us that parent brand usage
could vary from 5% to 25%. It would be worthwhile to judge the sensitivity of the forecast under 5%, 15%, and
25% parent brand penetration scenarios.

2. What can one learn from Exhibits 13, 14 & 15?
3. How does the pizza concept test data (Exhibits 19, 20 & 21) compare to the pasta concept test data (Exhibit
4. What is your reading of Exhibits 23 and 24 (include Exhibit 18 if you wish)?
5. In general, how do you compare the pizza opportunity to the pasta opportunity? What are the similarities?
6. Why was the pasta product so successful?
7. How do you like Nestle’s new product development process? For pasta? For pizza?
8. Would you launch the pizza?
Product Team Cialis: Getting Ready to Market – November 6, 2006

   1. What are the most relevant dimensions along which to segment the patient market for ED treatment? Of
      the segments identified, which would you target initially with Cialis?
   2. What is Viagra’s positioning in the marketplace in 2002? How would you characterize the Viagra
   3. What would be the most effective way to position Cialis in the marketplace?
   4. What marketing mix activities should accompany the launch of Cialis?
          a. What should be the most important messages to communicate to the target patients? To
             physicians? To partners?
          b. What medium would you use to reach each of these parties and what would your relative
             resource allocation be to each?
          c. How would you price Cialis? (Assuming no healthcare coverage) What types of promotions
             would you offer?
   5. What competitive response do you anticipate from Pfizer? From Bayer-GlaxoSmithKline?

Virgin Mobile USA – November 13, 2006

   1. Given Virgin Mobile’s target market (14 to 24 year-olds), how should it structure its pricing? The case
      lays out three pricing options. Which option would you choose and why? In designing your pricing plan
      be as specific as possible with respect to the various elements under consideration (e.g. contracts, the
      size of the subsidies, hidden fees, average per-minute charges, etc.)
   2. How confident are you that the plan you have designed will be profitable? Provide evidence of the
      financial viability of your pricing strategy.
   3. The cellular industry is notorious for high customer dissatisfaction. Despite the existence of service
      contracts, the big carriers churn roughly 24% of their customers each year. Clearly, there is very little
      loyalty in this market. What is the source of all this dissatisfaction? How have the various pricing
      variables (contracts, pricing buckets, hidden fees, off-peak hours, etc.) affected the customer experience?
      Why haven’t the big carriers responded more aggressively to customer dissatisfaction?
   4. How do the major carriers make money in this industry? Is there a financial logic underlying their
      pricing approach?
   5. What do you think of Virgin Mobile’s value proposition (the Virgin Xtras, etc)? What do you think of
      its channel and merchandising strategy?
   6. Do you agree with Virgin Mobile’s target market selection? What are the risks associated with targeting
      this segment? Why have the major corers been slow to react?
                                MARKETING MANAGEMENT
                           BUSINESS 540P - Class Schedule – Fall 2006
Date       Topic                              K&K Reading (A/C)                     Work Due
SEPT 11     Introduction to Course           1       Note: Low Tech
            Fundamentals of Marketing                Marketing Math
              Management                              A: Seeing the Future
            Marketing Math                           First

SEPT 18       Marketing Strategy and Planning   2, 11     A: Unbundling the
              Assessing Competitive Forces                Corporation

SEPT 25       Capturing Marketing Insights      3, 4      S: JoAnn Sciarrino       Marketing Plan
              Market Sizing                               C: IKEA Invades          Topic

OCT   2       Connecting With Customers         5         A: Why Satisfied         Research Plan
                                                           Customers Defect

OCT   16      Analyzing B2B and B2C Markets     6, 7      S: Jamie Turner          Assignment #1
                                                           A: Co-opting Customer
                                                           A: The New Consumer

OCT   23      Market Segmentation, Targeting,   8         C: Nestle Refrigerated   Segmentation
               Differentiation and Positioning             Foods (A)                Plan

OCT   30      Brand Development and             9, 10     S: Harry Vardis          Midterm Due
               Management                                  A: The Brand Report

NOV   6       Developing the Market Offer:      12, 13,   C: Product Team Cialis   Brand
               Products and Services             20                                 Positioning Plan

NOV   13      Determining Value: Pricing        14        C: Virgin Mobile USA

NOV   20      Delivering Value: Channel         15, 16    S: Mark Kaplan           Assignment #2
               Management                                  A: The Customer Has

NOV   27      Communicating Value: Integrated   17, 18,   A: Building Brands       Pricing, IMC &
               Marketing Communications          19        Without Mass Media       Channel Plan

DEC   4       Creating and Managing for Long    20, 21,   S: Steve Cook
               Term Growth                       22        A: The Global Brand
                                                           Face Off
DEC   13                                                                            Marketing Plan