WASHINGTON STATE UNIVERSITYMktg 506 - Marketing Management and Administrative Policy

Spring 2010Joseph Cote Class: Wednesdays 6:00-7:30 360-546-9753 Room: UCB 222cote@vancouver.wsu.edu Office: CL 308Ghttp://www.vancouver.wsu.edu/fac/cote_joe/home.htm

CATALOG COURSE DESCRIPTION AND PREREQUISITE KNOWLEDGEMktg 506 - Marketing Management and Administrative Policy – Marketing management and administrative policies as they relate to concepts, strategies and decision-making. A working knowledge of basic marketing including market segmentation, positioning, the 4Ps, etc is required. If needed, review J. Paul Peter and James Donnelly, Jr., Preface to Marketing Management or any basic marketing management textbook.

LEARNING GOALSThe course focuses on marketing analysis and planning for new market entry, but the concepts can be used for any type of marketing strategy. At the end of this course you should be able to develop an action-oriented marketing plan. Using the Marketing Analysis for Revenue Enhancement model (MARE) you will apply systematic guidelines to develop a marketing strategy. However, no single model works in all situations and you will learn to modify the model as needed. Last, you should be able to explain how recommended marketing actions will affect the organization’s key stakeholders.

The overall learning goal for this class is to develop and justify an action-oriented marketing plan using appropriate marketing theories and techniques. The specific learning goals are:

1. Identify, evaluate, and quantify customer needs in order to determine if a market opportunity exists.

2. Estimate a market opportunity’s potential benefits to the organization.3. Evaluate the long-term sustainability of a market opportunity.4. Identify the key success factors, necessary resources, and alternative approaches for

pursuing a market opportunity.5. Recommend a marketing strategy and next-step actions for pursuing an opportunity.6. Forecast the likely payoffs from pursuing the recommended strategy.7. Evaluate the direct and indirect effects of recommended actions on relevant stakeholders.

COURSE METHODThis is a hybrid course. A set of narrated powerpoint slides are available for each class session. Prior to class, you should listen to the narrated slides, complete all readings, and prepare the case study. In addition, students assigned as “the client” should prepare materials for the consulting exercise. Learning will occur primarily through application of course concepts. The narrated slides, notes, and readings are used to introduce the MARE model concepts and related analytic frameworks. Case studies and in-class consulting exercises will be used to practice application of the frameworks. You will also conduct a market analysis and prepare a marketing action plan for a client/your company. A summary of the learning goals, assessment of learning, relevant theory, and coverage is presented in the table below.

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Learning Goal Primary Analytic FrameworksAssessment ofLearning Goal

Learning Goal

Coverage

Identify, evaluate, and quantify customer needs in order to determine if a market opportunity exists

Means Ends Analysis ACE MatrixCompeting Solutions TableSwitching Costs

Cases and in-class exercises

Report 1

Sessions 3, 4, and 5

Estimate a market opportunity’s potential benefits to the organization

Best’s Untapped Market Opportunities Model

Value Chain AnalysisDecomposition Approach

Case and in-class exercises

Report 1Session 6

Evaluate the long-term sustainability of a market opportunity

Barnett’s Market Potential AnalysisCompetitor Response AnalysisStakeholder AnalysisBusiness Environment Analysis

Case and in-class exercises

Report 2Session 7

Identify the key success factors, necessary resources, and alternative approaches for pursuing a market opportunity

Leidecker and Bruno’s CSF AnalysisDay and Wensley’s ModelBenchmarkingResource-Based View

Case and in-class exercises

Report 2Session 8

Recommend a marketing strategy and next-step actions for pursuing an opportunity

Best’s Positioning StrategiesEntrepreneur’s Business ModelDean’s Pricing Strategies

Cases and in-class exercises

Report 3Session 10 & 11

Forecast the likely payoffs from pursuing the recommended strategy

Market Share ForecastingMarket Decomposition Forecasting

Case and in-class exercises

Report 3Session 12

Evaluate the indirect and direct effects of recommended actions on stakeholders

Stakeholder Analysis and MappingCase and in-class exercises

Report 3Session 13

GRADING PROCESSGrades will be assigned using the criteria below. Grades will roughly follow a 90/80/70 curve with a target mean of 88 (grade of B+).

Assignment AllocationClass & Case ParticipationConsulting ExercisesReport 1Report 2Report 3

15%10%25%25%25%

Class & Case ParticipationYou are expected to prepared for and attend all class sessions. Classes will be split in half. In the first session you will be randomly called upon to provide a quick summary of the narrated slides and readings. Similarly, I will randomly call on students to comment on the case study. We will also discuss any questions students might have. Class participation will be evaluated using the following rubric.

Criteria Good Answer Poor Answer

Directly apply appropriate analytic frameworks

Answer based on appropriate use of a specific analytic framework

Answer based on common sense or conventional wisdom; or use framework in an “academic” manner

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Draw conclusionsAnswer provides specific conclusions or creates information by applying the MARE frameworks

Answer is primarily descriptive. No unique information created or conclusions drawn

Provide justificationAnswer combines data from the case/reading/experience and the MARE analytic frameworks

Answer not explained, or justification based solely on facts.

PreparationHave notes, figures, tables, or other analysis to supplement discussion

Absent (without written summary), unable to answer questions, or other evidence of lack of preparation

Consulting ExercisesThe second half of each session will be a consulting exercise using the group assignments located at https:\\van-webdav.vancouver.wsu.edu\courses\Mktg_506\Consulting Assignments.docx. Prior to class, the “client” will analyze their project company based on the assigned readings and prepare a short powerpoint handout. The client should bring handouts for the consultants and email the me the powerpoint summary (by 9am Wed). The client will make a brief presentation of their analysis to the consultants. The consultants’ job is to improve the analysis. At the end of the session, all consulting groups will submit their revised analysis via powerpoint slides. Several groups will also be selected to present. The consulting exercise will be grading on the following criteria:

Criteria Good Answer Poor Answer

Directly apply appropriate analytic frameworks

Analysis based on appropriate use of a specific analytic framework

Analysis based on common sense or conventional wisdom; or use framework in an “academic” manner

Draw conclusions Analysis draws specific conclusions Analysis is primarily descriptive.

JustificationThe conclusions are supported by combining data and the MARE analytic frameworks

Conclusions not justified, or justification based solely on facts.

Consultants’ value addedThe consultants significantly improve the client’s analysis

The consultants add nothing of value to the client’s initial analysis

Report 1 – Needs, Value, and Opportunity Assessment (2,500 word limit)You will conduct a customer needs, ability to fill needs (value), and opportunity assessment. The analysis will be evaluated using the criteria below:

CriteriaGood Answer – applies relevant theories from the MARE model

Poor Answer – relies on common sense and opinion, no application of frameworks

Define the market, outline the market segments, and identify the focal segment(s)

Brief and specific summary of key points

Define the specific market & product

Segments briefly justified Target segment clear and

appropriate

Spend excessive time on describing the context

Define the industry, but not the market

Segments and target just opinion

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Identify customer needs and determine how well those needs are being fulfilled

Consumer needs clearly identified and justified

Use a means-end chain to explain how the attributes of existing options create consumer benefits

Identify the most important attributes for creating competitive advantage

Assess how well existing options satisfy consumer needs

Needs only vaguely defined

How product fills needs not explicitly identified

Important attributes not discussed

Assessment of existing options superficial

Assess your ability to fill needs better than existing options

Build off the needs assessment Show how your product fills needs

better than competition Show there are no barriers to

entering the market and – if applicable - that you can get consumers to switch

Estimate and justify a specific $ value the consumer will pay for the added benefits

Analysis ignores needs assessment

Superiority of new product simply stated

Simply claim consumers will buy because product is “better”

Value place on added benefits vague or general

Estimate the market opportunity’s potential benefits to the organization

Clear statement of what the organization will gain

Clear explanation of where gains will come from

Justify who will appropriate benefits

Quantify the potential benefits with well justified numbers

Identify relevant related opportunities and quantify benefits

Have vague statement of what is to be achieved

Fail to consider existing options when analyzing gains

Simply assume the organization will get all the benefits

Related opportunities only superficially discussed or you simply make it up

Write the analysis from a managerial, not an academic perspective

Provide justification for all claims Focus on key issues (take away) – avoiding

excessive detail Use only terms the average manager would

understand Well organized – extensive use of headings

Fail to provide justification for claims

Make statements managers could care less about

Use academic jargon and refer to theories by name

Organization jumps around – little use of headings

Focus on data with little explanation for conclusions

Report 2 – Risk, CSF, and Benchmarking Analysis (2,500 word limit)You will conduct a risk, critical success factor, and benchmarking assessment. The analysis will be evaluated using the criteria below:

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CriteriaGood Answer – applies relevant theories from the MARE model

Poor Answer – relies on common sense and opinion, no application of frameworks

Evaluate the long-term sustainability of a market opportunity and how any threats might be mitigated

Justify that market demand will be sustained

Justify that a competitive advantage can be sustained

Justify that the organization will continue to appropriate benefits

Identify specific market factors that might change, indicate they are reasonable possibilities, and explain their effects

Explain how the market risks affect the opportunity attractiveness and how risks might be mitigated.

Superficial analysis of future demand

Superficial consideration of competitive reactions

Assessment of environmental change deals with generic issues

Assessment of future market conditions is pure speculation

No assessment of how future conditions affect opportunity

Identify the marketing success factors and resources necessary for pursuing the market opportunity

Clearly ID Marketing Success Factors (MSF)

Justify the importance of each MSF MSFs meet the definition of critical

success factors

MSFs are not marketing-based o

The link between the MSF and competitive advantage is unclear

MSFs are survival factors or don’t differentiate competitors

Identify alternative approaches for addressing the marketing success factors and assess their effectiveness

Explain how others both inside and outside the industry address the MSFs

Evaluate the effectiveness of others efforts to address MSFs (both effective and ineffective)

Explain how market conditions influence the effectiveness of actions taken by others

Create multiple options for each MSF

Identify the resources needed to address MSFs

Analysis of alternative approaches and best practices limited to standard industry actions or only examine one alternative

Only within industry approaches considered

Vague evaluation of the effectiveness of alternative actions

Unclear under what conditions an action will be effective

No discussion of key resources

Write the analysis from a managerial, not an academic perspective

Provide justification for all claims Focus on key issues (take away) – avoiding

excessive detail Use only terms the average manager would

understand Well organized – extensive use of headings

Fail to provide justification for claims

Make statements managers could care less about

Use academic jargon and refer to theories by name

Organization jumps around – little use of headings

Focus on data with little explanation for conclusions

Report 3 – Recommend Strategy, Payoff, and Stakeholder Analysis (2,500 word limit)You will recommend a strategy and next step actions for your organization. Based on the strategy, estimate the likely payoff. Finally, determine how the recommended actions will affect relevant stakeholders. The analysis will be evaluated using the criteria below:

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CriteriaGood Answer – applies relevant theories from the MARE model

Poor Answer – relies on common sense and opinion, no application of frameworks

Summarize the basic business model, and briefly describe the basic strategy

Clearly stated and justified positioning strategy

Strategy summary clearly conveys basic logic behind business model and why it should work

If relevant, identify gaps in performance

Summary strategy simply descriptive of what you will do with no explanation of why it might be effective

Recommend next-step actions to fill MSF gaps

For each MSF gap you show how a recommended action will fill the gap

Build recommended actions off benchmarking analysis

Evaluate the effectiveness of the action for creating competitive advantage

Recommended actions not tied to MSF gaps

No justification to show that recommended actions will fill MSF gaps

Actions represent a “brain dump” list of activities

Produce and justify a pro forma estimated income statement based on the recommended actions With explicit links between specific actions and their costs and payoff

Provide specific estimates of revenues and rough idea of costs

Detailed explanation of how estimates were created

Justify the estimates by showing how the recommended actions will create the financial outcomes

If appropriate, include other benefits in the analysis

Numbers are presented with no explanation

Estimates appear made up with little justification

Justification for payoff estimate not clearly linked to recommended actions

No attempt to quantify other benefits

Create and justify a sensitivity analysis

Sensitivity analysis is justified using info from the sustainability section

Sensitivity estimates based on a decomposition analysis

Include probability estimates for the outcomes

Sensitivity analysis pulls ranges from thin air – no use of sustainability analysis

Probability estimates not included or just made up with little thought

Evaluate the indirect and direct effects of recommended actions on stakeholders including potentially negative reactions of key stakeholders

ID key direct and indirect stakeholders specific to the decision

Clearly explain the consequences of your recommendations and ultimately how they affect key stakeholders including externalities

Explain exactly how tradeoffs will be dealt with

Summarize the overall reaction of stakeholders

Stakeholders dealt with in a generic fashion or only direct stakeholders considered

Only examine the initial recommended action rather than all consequences

Don’t identify tradeoffs or simply note they exist

Discuss stakeholder reactions in a dismissive way

Write the analysis from a managerial, not an academic perspective

Provide justification for all claims Focus on key issues (take away) – avoiding

excessive detail Use only terms the average manager would

understand Well organized – extensive use of headings

Fail to provide justification for claims

Make statements managers could care less about

Use academic jargon and refer to theories by name

Organization jumps around – little use of headings

Focus on data with little explanation for conclusions

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REQUIRED MATERIALS Narrated Powerpoint slides available at

https:\\van-webdav.vancouver.wsu.edu\courses\Mktg_506When prompted, type in “AD\yournetworkID” and then your password.

Set of Cases from Harvard Business School Presshttp://cb.hbsp.harvard.edu/cb/access/4976647

If you have not already done so, you will need to register with HBSP. Each case should cost $3.95. If it is listed for more then you are not signed in as a student.

Readings listed in schedule of classes. Instructions for accessing the readings are located at

https:\\van-webdav.vancouver.wsu.edu\courses\Mktg_506\How to Access Assigned Readings.docx

MARE Notes, Template, and Checklist https:\\van-webdav.vancouver.wsu.edu\courses\Mktg_506\MARE Notes.dochttps:\\van-webdav.vancouver.wsu.edu\courses\Mktg_506\MARE Template.dochttps:\\van-webdav.vancouver.wsu.edu\courses\Mktg_506\MARE checklist.doc

You might also find Lehmann, Donald and Russell Winer, (any edition), Analysis for Marketing Planning, Boston: McGraw-Hill Irwin, to be a helpful, optional resource.

POLICIES AND PROCEEDURESFormatting Requirements for Written Work - All written work must be submitted as word processor e-mail attachments. Also:

1) Name the attached file using your last names (e.g., smith and jones outline 1)2) Please use the following formatting:

Put your name(s) & email address(es) at the top of the first page Use 12 point New Time Roman font Single spacing with double space between paragraphs (no indentation) Use 8 1/2" by 11" paper with 1-inch margins Number your pages

3) Word limits are specified for all assignments. These word limits are the maximum you can present. You are welcome to write less, but if your project is less than ½ the limit length, you probably are missing something. I will stop reading at the word limit. You can have as many appendices as you like.

4) All supporting material must be included in the main document (I can’t track multiple documents for a single assignment). It is easy to copy and paste Excel spreadsheets into a Word document. The easiest way to do figures is to create them in another program like Powerpoint and save them as image files (gif or jpg). The image file can then be inserted into the Word document. Please avoid using the Word “shapes” function or cutting and pasting Powerpoint shapes into a Word document as this formatting often causes problems.

Due Dates - All written work must be turned in by 8am on the due date. You should plan for work and family related conflicts. There will be no extensions to the due date except for unexpected hospitalization (or similarly serious events). Under no circumstance will a due date be change for any plan-able activity (e.g., business travel, vacation, etc.). Assignments not turned in by the due

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date and time will receive a 10% penalty for the first late day and a 1% per a day penalty for each succeeding day.

Clarity of Communication - Written work will first be read for minimum standards of communication. The paper should be well organized, clear, and to the point with no gross errors in sentence structure or grammar, or inappropriate use of jargon. Papers not meeting the minimum standards of communication will receive a grade penalty of 10% and will be returned for rewrite before it is graded.

Grade Appeals - All grade appeals must be submitted by e-mail within ten working days after the return of the assignment. The appeal should describe in detail what your concerns are, state how many points you feel should be added to the grade, and provide justification for the grade change. Appeals will be evaluated as much on the justification in the appeal as on the original assignment. I will not change grades based on verbal appeals.

Class Preparation and Participation - You are expected to attend and participate in all class meetings. Attendance will be recorded. It is critical that you prepare for class. If you must miss class, submit a one-page summary of the class material and a one page summary case analysis.

UNIVERSITY AND CAMPUS POLICIESAcademic Integrity – Academic integrity is the cornerstone of the university and will be strongly enforced in this course.  Any student found in violation of the academic integrity policy will be given an “F” for the assignment or course (depending on the severity of the violation) and will be referred to the Office of Student Conduct. For additional information about WSU’s Academic Integrity policy/procedures please contact (360) 546-9781. In addition to the University policies the following academic integrity guidelines will apply. All papers and reports must be your own creation (with citations when appropriate). You are encouraged to discuss the assignments with classmates, company representatives, and other potential resources (except other faculty). The purpose of this discussion is to swap ideas and improving thinking about the assignment. You should not come to a consensus conclusion or simply parrot the position of others. You must establish independent recommendations and positions. In summary, the following will be considered inappropriate and will lead to failure of the class:

Unauthorized collaboration between groups. Groups and individuals are welcome to share information, but not to help each other prepare the analysis.

Summarizing, rewording, or submitting other students' work; instructor's manuals; or any other paper, analysis, or solution written by others.

Discussing the assignments with another instructor without my permission. Written assignments which share identical outlines (discuss exactly the same issues, come to

exactly the same conclusion, use exactly the same support, etc.), the same sentence structure, or idiosyncratic terminology (e.g. several sentences are almost identical) as other students’ work.

Failure to properly cite or reference your use of other people's work (e.g., quotes). For more information regarding plagiarism see http://www.wsulibs.wsu.edu/electric/trainingmods/plagiarism_test2/main.html

Unethical or unprofessional behavior which jeopardizes or damages WSU's reputation within the business community.

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Any other behavior prohibited by university policy.

Confidentiality – All information about organizations participating in the class projects should be kept confidential. If you work for a competitor (or other organization that should not have access to the client’s confidential information) you must report the conflict of interest immediately. Failure to conform to confidentiality or other appropriate ethical behavior will result in a grade penalty, including failure in the class.

Communication Policies - All e-mail communication from me, the department, and the University will be sent to your wsu.edu address. Be sure that you have set up the link to forward to your personal e-mail address (AOL, hotmail, etc.) or you will miss class and program information that is very important to you. If you change your e-mail address, be sure to update again.

Student Deportment – Per the WSUV Student Handbook, students are, "Expected to show due respect for ... the rights of others," and "… cannot interfere with the rights of others or disrupt the processes of the University." "Students who fail to conduct themselves properly are subject to discipline, which may extend to temporary or permanent removal from the institution."

Complaint Process - Anyone wishing to report violations of the student or faculty conduct code should collect any documentation of the offending activity (e.g., written comments from others, e-mail messages, etc.). Present the complaint and supporting documentation to the appropriate faculty member or administrator. The process should start with the class instructor. If the instructor is unable to resolve the matter to the student's satisfaction, if the problem behavior spans multiple classes, or if the nature of the problem makes this impossible, the complaint should be forwarded to the Program Director. If the matter is still not resolved to the student's satisfaction, the complaint should proceed to the Vice Chancellor of Academic Affairs and finally to the University Ombudsman.

Disability Accommodation – Accommodations may be available if you need them in order to fully participate in this class because of a disability. Accommodations may take some time to implement so it is critical that you contact Disability Services as soon as possible.  All accommodations must be approved through Disability Services, located in the Student Resource Center on the Lower Level of Student Services Center (360) 546-9138.

EMERGENCY NOTIFICATION SYSTEMWSU has made an emergency notification system available for faculty, students and staff. Please register at myWSU with emergency contact information (cell, email, text, etc). You may have been prompted to complete emergency contact information when registering for classes on RONet. In the event of a Building Evacuation, a map at each classroom entrance shows the evacuation point for each building. Please refer to it. Finally, in case of class cancellation campus-wide, please check local media, the WSU Vancouver web page and/or http://www.flashalert.net/. Individual class cancellations may be made at the discretion of the instructor. Each individual is expected to make the best decision for their personal circumstances, taking safety into account.

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CLASS SCHEDULE

Week Topics, Learning Goals, and AssignmentsFocal Theories

Session 1Jan 13

INTRODUCTION Select Projects Course goals, assignments, and policies Basics of strategy Writing exercise – how to develop a marketing strategy

Learning Goal – Describe how to structure a presentation and apply theoretical frameworks to practical problems.

Narrated Powerpoint: Intro to Strategic ThinkingReadings:Grønhaug, K. and G. G. g. Ottesen (2007). "Can Theoretical Knowledge and

Application Yield Competitive Advantage?" Marketing Intelligence and Planning 25(3): 232-240. LG – Explain why theory can help create competitive advantage.

Martin, Roger (2007), "How Successful Leaders Think," Harvard Business Review, 85 (6), 60-67. LG – Explain how to improve analytic thinking and give examples of each point made by the author.

Lovallo, Dan P. and Lenny T. Mendonca, (2007), “Strategy's Strategist: An Interview with Richard Rumelt” McKinsey Quarterly, November, 56-67. LG –What role does ambiguity play in strategic thinking?

Session 2Jan 20

THE MARE MODEL AND CAUSALITYLearning Goal – Describe the basic components of the MARE model and the

logic behind them & explain how to justify a conclusion.Narrated Powerpoint: Intro to the MARE ModelReadings:MARE Model TemplateSahlman, William A. (1997), "How to Write a Great Business Plan," Harvard

Business Review, 75 (4), 98-108. LG – What are the four basic components of a plan and how does that relate to the MARE model?

MARE model

Session 3Jan 27

RESEARCH FOCUS AND OBJECTIVES Learning Goal – What are your primary goals and objectives and how does this

market function?Narrated Powerpoint: Goals and Objectives & Describe the MarketCase: Windhorse Farm's Eco-Woodshop Guitar Top Decision (9-908-M66) –

How did Windhorse Farm's goals and objectives guide their market analysis and decision making? Based on the material outlined in the lectures, do you feel Windhorse's focus was appropriate?

Consulting ExerciseYour assigned consulting exercise group will discuss how the organization’s goals and objective will influence:

1. the nature of the analysis2. how the MARE model might be modified to address all the relevant

issues required by the strategic decision3. which part of the analysis is going to be most critical, and establish

appropriate standards for making decisions.

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Session 4Feb 3

IDENTIFYING CUSTOMER NEEDSLearning Goal – What are customer needs?Narrated Powerpoint: Needs Assessment part 1 & Needs Assessment part 2Reading:Reynolds, Thomas J. and Jonathan Gutman (1988), "Laddering Theory Method,

Analysis, and Interpretation," Journal of Advertising Research, 28 (1), 11. LG – What are the different types of attributes and benefits? Using a means-end chain, show how the attributes of your product creates benefits for consumers.

Case: Saxonville Sausage Company (2085) – Conduct a needs assessment for Saxonville Sausage. In the process, create a means end chain analysis (ID needs and how attributes address needs). In addition, identify which attributes and benefits are most important and how well existing options fulfill those needs.

Consulting ExerciseYour assigned consulting exercise group will conduct a needs assessment for the client’s industry/market. The consultants will:

1. outline consumer needs2. link product attributes to needs3. explain how attributes and benefits relate to competitive advantage4. identify if there are unfulfilled needs

Means ends analysis

Session 5Feb 10

IDENTIFYING CUSTOMER NEEDS (cont.)Learning Goal –How well are customer needs being met?Reading:MacMillan, Ian C. and Rita Gunther McGrath (1996), "Discover your Products'

Hidden Potential," Harvard Business Review, 74 (3), 58. LG – how can you identify which attributes are salient and differentiators?

Case: Boston Beer Company – Light Beer Decision (899058) – Create a means-end chain to show how light beer attributes are related to benefits. Also conduct an ACE matrix analysis to determine which attributes are most important.

Consulting ExerciseYour assigned consulting exercise group will determine how well the market is meeting consumer needs in the client’s industry. The consultants will identify:

1. what must be done to meet needs better than existing options2. why others have not pursued the opportunity3. factors that might be preventing purchase

ACE matrix

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Session 6Feb 17

ASSESS ABILITY TO FILL NEEDS (Value to Customer)Learning Goal – Can you fill needs better and what would customers pay for

this?Narrated Powerpoint: Value to ConsumerReading:Burnham, Thomas A., Judy K. Frels, and Vijay Mahajan (2003), "Consumer

Switching Costs: A Typology, Antecedents, and Consequences," Journal of the Academy of Marketing Science, 31 (2), 109-26. LG – determine what factors might limit your ability to better fulfill consumer needs.

Case: Husky Injection Molding Systems (799157) LG – Does Husky have a differential advantage; and if so, what is the superiority premium of that advantage? What can Husky do to limit customer switching?

Consulting ExerciseYour assigned consulting exercise group will determine if the client’s organization can meet needs better than existing options. The consultants will identify:

1. what must be done to meet needs better than existing options2. estimate a superiority premium

Competing solutions table

Switching costs

Session 7Feb 24

OPPORTUNITY ATTRACTIVENESSLearning Goal – Is this opportunity attractive to the organization?Narrated Powerpoint: Opportunity AttractivenessCase: Natureview Farms (2073) – Assess the opportunity attractiveness for

Natureview Farms. Identify where the growth will come from, effects of this on margins, and quantify potential revenue.

Consulting ExerciseYour assigned consulting exercise group will conduct an opportunity assessment for the client organization. The consultants will:

1. state the expected benefits 2. determine where the expected benefits will come from3. determine who will appropriate the benefits4. quantify the potential benefits (market potential, margins, etc.)

Best’s untapped market opportunities model

Value chain analysis

Decomposition approach

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Session 8March 3

SUSTAINABILITY OF THE OPPORTUNITY (Risk Assessment)Learning Goal – What risks affect the future value of the market opportunity?Narrated Powerpoint: Risk Assessment part 1 & Risk Assessment part 2Readings:Dye, Renee, Olivier Sibony, and Vincent Truong (2009), "Flaws in Strategic

Decision Making," The McKinsey Quarterly, January, 1-6 (available on-line http://www.mckinseyquarterly.com/PDFDownload.aspx?L2=21&L3=37&ar=2284). LG – what flaws can bias strategic decisions, and how can you improve your strategic decision making?

Garbuio, Massimo, Dan Lovallo, and Patrick Viguerie (2009), "How Companies Make Good Decisions: McKinsey Global Survey Results " The McKinsey Quarterly, January, 1-7 (available on-line at http://www.mckinseyquarterly.com/PDFDownload.aspx?L2=21&L3=37&ar=2282). LG – what factors influence the success of a strategic decision?

Coyne, Kevin P. and John Horn (2009), "Predicting Your Competitor's Reaction," Harvard Business Review, 87 (4), 90-97. LG – what types of questions can you ask to help predict competitive reactions?

Case: Wumart Stores: China's Response to Wal-Mart (HKU635) – Conduct a risk assessment for Wumart. Consider what risks Wumart might face in the future and the implications for the opportunity attractiveness.

Consulting ExerciseYour assigned consulting exercise group will conduct a risk assessment for the client organization. The consultants will:

1. justify that market demand will be sustained2. justify that a competitive advantage sustained by considering competitor

reactions3. justify that the organization will continue to appropriate the benefits by

conducting a stakeholder analysis4. consider environment dynamics using classic environmental analysis and

analogical reasoning

REPORT 1 DUE @ 6pm

Barnett’s market potential analysis

Competitor response analysis

Stakeholder analysis

Business environment analysis

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Session 9March 10

MARKETING SUCCESS FACTORS AND BENCHMARKINGLearning Goal – What are the critical success factors and associated best

practices?Narrated Powerpoint: CFS and BenchmarketingReadings:Jarrar, Yasar F. and Mohamed Zairi (2000), "Best Practice Transfer for Future

Competitiveness: A Study of Best Practices," Total Quality Management, 11 (4/5/6), S734. LG – What are the key steps for benchmarking best practices?

Spear, Steven and H. Kent Bowen (1999), "Decoding the DNA of the Toyota Production System," Harvard Business Review, 77 (5), 96-106. LG – considering the steps outlined by Jarrar and Zairi, why has it been so hard to identify the best practices behind Toyota’s TQM system?

Case: PORTS: China's Walk in the Global Luxury Fashion Boulevard (9-HKU-749) – Identify the critical success factors for PORTS, their relative importance, and determine what alternatives actions can be used to address each.

Consulting ExerciseYour assigned consulting exercise group will conduct a CSF analysis for the client organization. The consultants will:

1. identify the marketing-related critical success factors2. evaluate the relative importance of each critical success factor3. justify why each critical success factor is key to creating competitive

advantage4. identify possible options for addressing the CSFs5. determine what resources would be needed to implement these options

Leidecker and Bruno’s CSF Analysis

Day and Wensley’s Competitive Advantage Model

BenchmarkingResource-Based View

March 17 SPRING BREAK

Session 10March 24

FORECASTING THE PAYOFFLearning Goal – What payoffs will these actions lead to?Narrated Powerpoint: Estimate PayoffReading:Gavetti, Giovanni and Jan W Rivkin, 2005, "How Strategists Really Think,"

Harvard Business Review, 83: 4, 54-63. LG – how can you apply analogy to determine the potential payoff?

Case: Nestle Refrigerated Foods - Contadina Pasta and Pizza (595035) – Estimate the payoff for Nestle in the fresh pizza market. This will include determining the appropriateness of pasta as an analogy, perform a sensitivity analysis, and ultimate determine if the pizza product is likely to generate the desired payoff.

Consulting ExerciseYour assigned consulting exercise group will estimate the payoff for the client organization. The client is welcome to use disguised numbers. The consultants will:

1. estimate the payoff based on the recommended strategy2. show how the recommended strategy will lead to the payoff3. conduct a sensitivity analysis

Market share forecasting

Market decomposition forecasting

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Session 11March 31

RECOMMENDED ACTIONSLearning Goal – What should we do to take advantage of the market

opportunity?Narrated Powerpoint: RecommendationsReading:Morris, Michael, Minet Schindehutte, and Jeffrey Allen (2005), "The

Entrepreneur's Business Model: Toward a Unified Perspective," Journal of Business Research, 58 (6), 726-35. LG – outline your company’s business strategy using the key components outlined in the article.

Case: Repositioning CARE USA (509005) Outline CARE’s business model (old and proposed) using the “Entrepreneur's Business Model,” and evaluate if the new positioning will be effective.

Consulting ExerciseYour assigned consulting exercise group will recommend next step actions for the client’s organization. The consultants will:

1. provide a positioning strategy2. outline the basic strategy3. recommend actions to address the critical success factors

REPORT 2 DUE @ 6pm

Best’s positioning strategies

Entrepreneur’s business model

Dean’s pricing strategies

Session 12April 7

EFFECTS ON STAKEHOLDERSLearning Goal – How will the recommended actions affect key stakeholders?Narrated Powerpoint: Stakeholder AnalysisReadings:Castaldo, Sandro, Francesco Perrini, Nicola Misani, and Antonio Tencati (2009),

"The Missing Link Between Corporate Social Responsibility and Consumer Trust: The Case of Fair Trade Products," Journal of Business Ethics, 84 (1), 1-15. How effective are most consumer oriented CSR efforts? What conditions are necessary for consumer oriented CSR efforts to be effective?

Marin, Longinos, Salvador Ruiz, and Alicia Rubio (2009), "The Role of Identity Salience in the Effects of Corporate Social Responsibility on Consumer Behavior," Journal of Business Ethics, 84 (1), 65-78. What conditions are necessary for consumer oriented CSR efforts to be effective?

Case: Matell and the Toy Recall A & B (908M10 & 908M11) Identify Matell’s stakeholders related to the toy recall, their stakes, and stake violations. What was Matell’s response to each stakeholder? Evaluate if Matell’s response was adequate.

Consulting ExerciseYour assigned consulting exercise group will conduct a stakeholder assessment of the client’s marketing strategy. The consultants will:

1. identify relevant stakeholders2. evaluate the effect of the organizations actions on stakeholders3. offer suggestions for how to manage stakeholder relationships as related

to the recommended actions

Stakeholder analysis

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Session 13April 14

SOCIATAL ISSUES – MARKETING TO THE POORLearning Goal – Apply the stakeholder framework to “Bottom of the Pyramid”

marketing.Readings:Santos, Nicholas J. C. and Gene R. Laczniak (2009), "Marketing to the Poor: An

Integrative Justice Model for Engaging Impoverished Market Segments," Journal of Public Policy & Marketing, 28 (1), 3-15. LG – What principles should guide marketing efforts targeted to the “base of the pyramid?”

London, Ted (2009), "Making Better Investments at the Base of the Pyramid," Harvard Business Review, 87 (5), 106-13. LG – How can you tell if your marketing to the base of the pyramid is effective and/or appropriate?

Akula, Vikram (2008), "Business Basics at the Base of the Pyramid," Harvard Business Review, 86 (6), 53-57. Comment on Akula’s recommendations about marketing to the poor. Do you feel they are appropriate and/or effective?

Dolan, Catherine and Linda Scott (2009), "The Future of Retailing? The Aparajitas of Bangladesh," Retail Digest, 22-25. LG – Comment on Dolan and Scott’s recommendations about marketing to the poor. Do you feel they are appropriate and/or effective?

Ireland, John (2008), "Lessons for successful BOP marketing from Caracas' slums," Journal of Consumer Marketing, 25 (7), 430-38. LG –Do you feel the “lessons” outlined by Ireland are appropriate?

Session 14April 21

David Williams ShoreBank Pacific – Social issues and economic development, social entrepreneurship, and microfinancing.

Session 15April 28

LIMITATIONS OF MARKETS AND END OF COURSE REVIEWReadings:http://www.caseplace.org/usr_doc/GoodwinMarketFailureFinal2005.pdf

Goodwin, Neva (2005), "The Limitations of Markets: Background Essay," Tufts University. LG – Are there conditions that make market entry undesirable?

Assignment:Go to http://www.mplans.com/sample_marketing_plans/ then select and read an

example marketing plan. Using the MARE model as a guide, evaluate the marketing plan you selected. Next, identify how the plan could be improved. Be prepared to present your evaluation in-class (using powerpoint slides).

FinalsWeek

REPORT 3 DUE MONDAY MAY 3rd @ 8am

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