1st Term MBA-2016

MARKETING MANAGEMENT COURSE OUTLINE

1. Introduction As businesses become increasingly defined by networks of partnerships and by its customers, the role of marketing is changing accordingly. Rather than simply responding for sales, marketing encompasses making sure that every aspect of the business is focused on delivering superior value to customers. As such, marketing management as a distinct business activity will be responsible for being the expert on the customer and keeping the rest of the networked organization aware. The skill of marketing is the skill to monitor customers, competitors, and collaborators, and to find in each domain a better way to design and deploy the firm's capabilities to serve the customers profitably. In this way, marketing helps to set a firm's strategic direction. This role of marketing takes different forms at different levels of the organization. At the corporate level, marketing will inform the problem of defining the business the company is in and help determine the mission, scope, shape, and structure of the firm. Here, some of the major roles will be to assess the attractiveness of alternative markets, to promote customer orientation, and to develop the firm’s overall value proposition. At this level, the role of marketing as a culture is evident. At the business level, the key issue will be how to compete in the chosen business. This will be achieved by segmenting the market and, after a careful analysis of competitors and selected customers, elect a distinctive position. Finally, at the operational level the familiar issues related to the marketing mix need to be resolved. The first (and arguably most important) element of the marketing mix is product/service selection (within the chosen market). A second critical element is price (for individual products and lines, while accounting for discounts, special conditions, promotions, etc.). Next come decisions regarding the distribution systems, i.e. the design and control of channels of distribution, through which our products and services move to the ultimate users. These decisions also involve addressing “going to market” issues such as sales-force, agents, and partners. Finally, Market communications decisions include components such as print and television 1

 

IESE Business School

Marketing Management

   

advertising, direct mail, trade shows, point-of-sale merchandise displays, sampling, and telemarketing. Each level of strategy and each dimension of marketing must be developed in the context of the preceding level. The final implementation has to be founded in sound formulation at all levels. To complete the picture, marketing objectives and strategies have to be formulated taking into account the firm’s core competencies as well as its resource limitations.

2. Objectives The objectives of this course are: 1. To introduce key basic marketing concepts needed to deal with business problems such as segmentation, targeting, positioning, marketing mix, marketing services, pricing decisions, market orientation. 2. To provide the marketing perspective in approaching business problems, including strategy development. We will do this by covering: (1) Market and opportunity analysis, and (2) Product, branding, and pricing decisions, and other marketingrelated courses will enrich this list. 3. To illustrate the range of marketing tasks in the organization, including the functional responsibilities of marketing managers. To refine decision-making, analytical skills, and the ability to debate ideas with the help of others. 4. To refine decision-making, analytical skills, and the ability to debate ideas with the help of others.

3. Learning Outcomes By the end of this course, students will be able to:  Structure their approach in analysis of business cases  Get acquainted with main marketing concepts and frameworks of marketing management (e.g., value proposition, segmentation, targeting position, marketing mix, managing customer base, and pricing)  Evaluate alternative marketing decisions according to their expected impact on company and customer  Analyze marketing decisions in terms of their expected profitability  Segment a market according to different criteria  Decide on the best method of segmentation in light of the decision at hand  Select the optimal target segment 2

 

IESE Business School

Marketing Management

   

      

Create and analyze a positioning statement Define the marketing strategy to launch a new product Evaluate whether and how to extend a product line Evaluate the tradeoffs between short term and long term decisions in marketing Analyze the factors that must be taken into account when setting prices Choose optimal pricing strategies in different competitive environments Use learnings from the class for marketing strategy development

4. Competences General Competences (refer to list of general competences in the MBA):    

Decision Making Critical Thinking Judgment Communication

Specific Competences:  Leverage basic marketing concepts for solving complex business problems  Set priorities and make trade offs while making marketing decisions  Distinguish and understand the relationship between strategic and tactical marketing decisions and define the appropriate measurement tools to understand their impact on performance  Apply quantitative analysis to measure the impact of marketing decisions, making adequate assumptions when necessary.  Confidently make marketing decisions in light of the uncertainty in the customer and competitor behavior surrounding these decisions  To develop and use tools to measure the impact of marketing decisions when their impact on profitability is unclear and occurs over time.

5. Content The course has two major delivery segments: 1. General sessions: Case discussions according to the course outline detailed in the last pages of this document. 2. Lectures: Two or three of the course sessions will be lectures. The objective of these sessions is to consolidate the different concepts raised during the case discussions. Remember, however, that this is a course in which experiential learning 3

 

IESE Business School

Marketing Management

   

methods are the major way to construct an intimate understanding of the principles of marketing to have the confidence and skills to do the job. In addition to cases, you will receive a few technical notes and papers containing frameworks that might guide and ease your analysis. Some additional readings will be handed out to you in class, but you are not required to prepare them for class discussion. For some of the cases, you will be given a set of preparation questions. The objective of these questions is to guide your analysis helping you focus your period of individual study. Therefore, you are not required to answer the preparation questions in written form in order to prepare the case. These questions will be also available at the course’s website.

6. Methodology Class interactions will be the major way of achieving the goals of this course. Participation will therefore be rewarded accordingly. Participation grades will take into consideration depth of insight, rigor, relevance to the discussion, synthesis and consistency, clarity and conciseness, energy, and frequency. The benefit that you derive from this course will be in direct proportion to the extent to which you expose your own viewpoints or conclusions to the judgment of the class. You should view class participation as an opportunity to enhance your understanding of the material. Be prepared to provide constructive input as the class works together to address the issues of the case. The situations in the cases are complex. Rarely will there be a single right answer, although there may be wrong answers. The class does not need to always come to a unanimous consensus because the appropriate response often depends upon which assumptions are accepted. Real learning takes place when you see how others address a problem about which you have thought carefully. Case preparation is a personal matter which involves the development of an individual marketing problem-solving style. Cases are semi-structured problems, and problem definition skills the main “product” of repeated exposure to these learning devices. As such, there is no universally valid formula for case preparation. Nevertheless, most students seem to travel a general path, which includes: 1. Reading the case quickly; almost skimming it for the major issues and sense of its layout. 2. Re-reading the case carefully, annotating, highlighting, and distinguishing important information, omissions, and questions raised by the reading. 3. Deciding what the action issues really are. For example: Is this case really about pricing, or is pricing, while an important issue, symptomatic of some deeper management issue needing examination and resolution? 4. Deciding on what analysis questions will inform the issue on the actions that need to be taken. 4

 

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Marketing Management

   

5. Answering these analysis questions as formulated using the data available from the case and making clear and well-informed assumptions about necessary but missing information. 6. Deciding on a course of action from the analysis, and explicitly considering and rejecting plausible alternative courses because of the analysis. 7. Developing a plan by which the desired action may be achieved or implemented within the company, people, and other constraints encountered in this situation. 8. Testing the plan and the analysis before class against the analysis of others in your team meetings.

7. Evaluation Grades in this course will be based on class participation (60%), a midterm group project and presentation (20%) and a final exam (20%). The group project is based on a pricing simulation, which will replace the midterm exam. Each group will play pricing simulation for two weeks and then prepare a short presentation with their conclusions of the exercise. These presentations will take place during the midterm exam period. Further details will be provided during the course. Class interactions will be the major way of achieving the goals of this course. Participation will therefore be rewarded accordingly. Participation grades will take into consideration depth of insight, rigor, relevance to the discussion, synthesis and consistency, clarity and conciseness, energy, and frequency. Class participation shall be evaluated on the sound marketing reasoning and understanding of the concepts developed in the course.

8. Course Outline & Bibliography Module 1 - Introduction and Marketing Decisions 1 Introduction and Marketing Decisions Fisher Price Toys, Inc. (HBS 9-572-029) Module 2 - Segmentation, Targeting and Positioning 2 Segmentation, Targeting and Positioning (1) Port Aventura - Preparation Questions Port Aventura (IESE P-891-E) 3 Segmentation, Targeting and Positioning (2) Tweeter, etc. – Preparation Questions Tweeter, etc. (HBS 9-597-028) 4 Segmentation, Targeting and Positioning (3) Harper Chemical Company, Inc. – Preparation Questions Harper Chemical Company, Inc. (HBS 9-590-027) 5

 

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Marketing Management

   

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Segmentation, Targeting and Positioning (4) Aéro Tec Systèmes – Preparation Questions Aéro Tec Systèmes: A travel experience from out of this world (IESE M-1225-E) 6 Segmentation, Targeting and Positioning (5) Red Lobster – Preparation Questions Red Lobster (9-511-052) Module 3 - Competing with Products and Services 7 Competing with Products and Services (1) Aqualisa Quartz - Preparation Questions Aqualisa Quartz: Simply a Better Shower (HBS 9-502-030) 8 Competing with Products and Services (2) Sealed Air Corporation - Preparation Questions Sealed Air Corporation (HBS 9-582-103) 9 Competing with Products and Services (3) Continente – Preparation Questions Continente: the launch of the private label soft drinks (IESE M-1049E) 10 Competing with Products and Services (4) Eastman Kodak Company - Preparation Questions Eastman Kodak Company: Funtime Film (HBS 9-594-111) 11 Midterm Review. Lecture Module 4 - Pricing Decisions: Creating and Capturing Value 12-13 Midterm Project Presentations Pricing Simulation: Universal Rental Car 14 Pricing Decisions: Creating and Capturing Value (1) Curled Metal Inc. – Preparation Questions Curled Metal Inc.: Engineered Products Division (HBS 9-709-434) 15 Pricing Decisions: Creating and Capturing Value (2) Optical Distortion, Inc. – Preparation Questions Optical Distortion, Inc. (A) (HBS 9-575-072) 16 Pricing Decisions: Creating and Capturing Value (3) Federated Industries - Preparation Questions Federated Industries (A) (HBS 9-585-104) 17 Review of Pricing Module Module 5 - Market Orientation 18 Market Orientation (1) Dominion –Preparation Questions Dominion Motors and Controls, Ltd. (HBS 9-589-115) 19 Market Orientation (2) elBulli – Preparation Questions elBulli: The Taste of Innovation (HBS 9-509-015) 20 Market Orientation (3) Capital (A) - Preparation Questions Capital (A) (INSEAD 594-022-1) 6

 

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Market Orientation (4): Market Research The Coop: Market Research – Preparation Questions The Coop: Market Research (HBS 9-599-113) Module 6 – Review 22 Review (1) Santander-Serfín – Preparation Questions Santander-Serfín: Revitalizing the Payment Systems Business (IESE M1190-E) 23 Review (2) Starbucks - Preparation Questions Starbucks: Delivering Customer Service (HBS 9-504-016) 24 Final Review. Lecture 25-26 Final Exam Additional readings: Module 1 - Introduction and Marketing Decisions Required Readings:  Note on Marketing Strategy (HBS 9-598-061 Rev 1/2000)  Note on Low-Tech Marketing Math (HBS 9-599-011 Rev 12/1998) Supplemental Readings:  Christensen, C., M., S. Cook, et al. (2005). "Marketing Malpractice." Harvard Business Review 83(12): 74. (R0512D)  Levitt, Theodore (1960), “Marketing Myopia,” Harvard Business Review, 38 (July/August), 26-44, 173-181. (R0407L) Module 2 - Segmentation, Targeting and Positioning Required Readings:  Note on Market Definition and Segmentation (HBS 9-579-083 Rev. 2/1987)  Christensen, C., M., S. D. Anthony, et al. (2007). "Finding the Right Job for Your Product." MIT Sloan Management Review 48(3): 38. Module 3 - Competing with Products and Services Required Reading:  Principles of Product Policy (HBS 9-506-018 Rev. 5/2006) Supplemental Readings:  Kim, W. C. and R. Mauborgne (2004). "Value Innovation: The Strategic Logic of High Growth." Harvard Business Review 82(7,8): 172. 7

 

IESE Business School

Marketing Management

   

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Sawhney, M., S. Balasubramanian, et al. (2004). "Creating Growth with Services." MIT Sloan Management Review 45(2): 34-43.

Module 4 - Pricing Decisions: Creating and Capturing Value Required Reading:  Steps in Value Pricing (IESE MN-340-E) Supplemental Readings:  Principles of Pricing (HBS 9-506-021)  Dutta, Shantanu, Mark Bergen, Daniel Levy, Mark Ritson, and Mark Zbaracki (2002). “Pricing as a Strategic Capability.” MIT Sloan Management Review 43(3):61-66. Module 5 - Market Orientation Required Reading:  Webster Jr., Frederick E. (1994). “Putting the Customer First – Always!” In Frederick E. Webster, Jr., Market-Driven Management: Using the New Marketing Concept to Create a Customer-Oriented Company (pp. 1-29). New York: John Wiley and Sons, Inc. Supplemental Reading:  Market Orientation (MN-371-E) Module 6 - Review Required Reading:  Pine, Joseph II and James H. Gilmore (1998) “Welcome to the Experience Economy,” Harvard Business Review, 76 (July/Aug), 97-105 Supplemental Readings:  Grönroos, Christian (1998), “Marketing services: the case of a missing product,” Journal of Business & Industrial Marketing, 13 (4-5), 322 – 338  Lusch, Robert F, Stephen L. Vargo, and Alan Malter (2006), Marketing as ServiceExchange: Taking a Leadership Role in Global Marketing Management, Organizational Dynamics, 35 (3) 264-78

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