BA 655: Marketing Management and Strategy in Life Sciences Summer, 2012 (May 14 July 6)

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1 BA 655: Marketing Management and Strategy in Life Sciences Summer, 2012 (May 14 July 6) Faculty Information Fred Roedl Clinical Associate Professor of Marketing Director, MBA Business Marketing Academy Office BU426B Kelley School of Business Bloomington, Indiana Direct Office Phone: FAX Course Description Classical marketing involves the identification and satisfaction of customers needs, wants, and desires through a process of exchange that creates value for both the marketer and the customer. Identification of needs, wants, and desires is typically achieved through some form of research. Satisfaction is achieved by a firm offering the customer the right product/service, at the right price, at the right time, and made available through the right outlets -- in short, using the right marketing mix. This sounds simple and intuitive, perhaps it is. Although intuition has a role to play, marketing implementation is not that simple. Executing successful marketing plans involves a complex set of activities to master, requiring substantial knowledge, experience and strategic thinking. The preceding description of marketing is a rather generic definition. When it is applied to the industries of life sciences and health care, the marketing function becomes increasingly challenging. Given the complexity and the numerous variations of the life science value chains, marketers are faced with developing unique relationships with multiple customers, partners, influencers and constituencies. These include: individual consumers; physicians; pharmacies; wholesalers; payers; GPOs and IDNs; organizational buyers such as hospitals and surgical centers; manufacturers; manufacturer s representatives, etc. 1

2 Through a rigorous combination of lectures, discussion forums, relevant literature and business cases in the life science industry, this course will introduce students to concepts that are considered critical in understanding the marketing function and its responsibilities in this complex environment. It will also sensitize students to the difficult decisions and activities which marketers undertake in achieving success for their products, services and ultimately their companies. Finally, it will allow students to practice problem solving techniques in dissecting complex marketing issues through the use of business cases. This course is designed with the assumption that students have had little, if any, formal instruction in the marketing discipline. During the early part of the course, students will gain exposure to the essentials of buyer behavior and customer analysis. This exposure will dovetail into an examination of the tools marketers rely on to fulfill customers expectations. These tools include segmentation, positioning, market research, product strategy, pricing, and distribution. We will discuss these tools in the context of current issues in the life sciences arena such as direct-to-consumer promotional strategies, e- commerce, channel relationships and value pricing. Admittedly, there is a great deal of synergy between the issues and analyses discussed in marketing and the management decision techniques that executives are exposed to in accounting, economics, finance, information systems, operations, quantitative methods, and strategy. When used appropriately, marketing is the function that often helps to integrate and cement all of these areas from a business planning perspective. It is our intent that this course content will complement the other core courses in this program to provide students with an integrative approach in solving business problems and implementing successful business strategy. Student Learning Outcomes After completing this course, students should be able to: 1. Explain the role of marketing in creating successful business results. This will be accomplished by both theoretical concepts, as well as, benchmarking successful marketing practices of other industries that could be applied to the life science and/or healthcare companies. 2. Demonstrate how the fundamental principles of marketing are related and can be integrated to create sound business building strategies. 3. Develop a methodology of determining customer/consumer needs and create initiatives that help increase sales, increase consumer satisfaction and create positive ROIs. 4. Conduct a rigorous market analysis of a life science initiative by applying marketing research techniques that are appropriate for the life science and health care industries. 2

3 5. Create a comprehensive market plan that is linked to an overall business strategy within a life science or healthcare environment and design appropriate metrics to measure performance. Teaching Strategy and Rationale This course will utilize a variety of activities designed to engage students in participatory learning. Course components will include: online discussions/lectures, discussion forums, team based case analysis, and an individual project. The instructor s teaching approach is one of learning from each other, particularly since most students will have varied and extensive practical experience in the life sciences field. Therefore, active student participation is a key focus of the course and will be encouraged (and evaluated) as much as the technology allows. The content and assignments in this course will focus on practical application of key marketing concepts. It is my belief that the most successful business careers are the result of an individual s ability to bridge or apply general academic principles within their own unique business circumstances. By concentrating on the life sciences industry, we have a unique opportunity to tailor the curriculum to be most meaningful to the student executive. As mentioned previously, this course will use business cases as a key learning tool. I believe student case work achieves several goals: 1) stimulates student interest; 2) provides students with tangible examples of conceptual material; 3) enables students to practice and formalize a critical thinking process within a cooperative team environment; 4) emphasizes the importance of ROI results. Assessment The student s performance evaluation will be based on a combination of team case write-ups, an individual course project, discussion contributions and a peer assessment from fellow teammates. Weighting and specific due dates are as follows: Course Weight Due Dates Team case memos/reports: Biopure Case 20% June 11 Medicines Case 20% June 25 Individual Final Project 40% July 7 Individual Assigns. & Contributions to Discussions 20% Total 100% It is important that each team member contribute to the overall team assignments and general course discussions. At the conclusion of the course, a simple team evaluation exercise will be conducted. Each member will be asked to evaluate their team members 3

4 individually. Final grades may be affected by this allocation if unequal workload ratings are reported. Case Memos: As mentioned earlier, business cases focused on the life sciences industry will be utilized in this course as a tangible way to illustrate key marketing concepts critical in today s business environment. Student teams will be required to submit a one page memo (w/attachments) that describes the team s recommendations to solve the business problem described in the case. Comprehensive memo submissions should include the following components: 1) a brief description of the issue; 2) recommendations for solving the problem; 3) an analysis of why the recommendations are justified; 4) identification of risks associated with the recommendations with suggestions on how to mitigate these risks; 5) a brief implementation plan. In addition, up to four exhibits are accepted (and recommended) with each case memo. These exhibits can be graphs, grids, tables, charts, etc. (not additional text) that further explains/justifies the recommendations contained in the body of the memo. Topics discussed in the case will be covered by materials (PPTs, readings etc.) prior to the assigned due dates of the case memos. Individual Final Project: A major objective of the course is for students to thoroughly understand how major components of the marketing discipline can be integrated into a strategy that creates profitable growth. At the conclusion of the course each student will be required to submit a marketing audit of one of their firm s recent product or service initiatives. This audit will represent a critical assessment of the firm s comprehensive planning and execution of this initiative as compared to the student s learnings acquired during this course. The purpose of this assignment is to assess the student s grasp of how successful market plans are developed and executed. Details of this assignment will be discussed during the first week of the course. Student Contributions to Class-wide Discussion Forums: A key ingredient in student learning at this educational level is shared interaction among classmates and the instructor. Since most students are currently employed by firms in the life science industry, each student will be equipped to contribute valuable experiences and ideas to the overall learning of the class. Since this type of interaction is proven valuable in a traditional class room setting, it will also be valued and encouraged in this on-line educational experience. Therefore, student activity in on-line (class-wide) posts will be monitored by the instructor. At the conclusion of the course, the instructor will evaluate each student s course participation, both on quantity (i.e., number of posts based on relevant and professional observations) and quality (i.e., insightful content that stimulates further thought and discussion) of contributions. Final Grades: The final grades in the course will be awarded in accordance with the MBA office grading policies, based on the quality and creativity shown in the deliverables. You will receive two grades for the course. The first is Pass/Fail. The second is a standard letter grade. 4

5 Expectations of Honesty and Professionalism: In accordance with the Kelley School Honor Code, it is assumed that your work you present is 100% your own you have neither provided nor accepted any unauthorized information (written or verbal) about the assignments in this course. Authorized reference resources to complete all assignments are limited to the slides, handouts and materials made available in this class. (Any material obtained on the internet is considered unauthorized.) When preparing team case memos, please do not discuss the case with others outside of your team or access written documents other than the case write-up provides. Similarly, since the final is an individual exercise, preparing for the exam should be done individually. Course Policies Formatting Conventions for all Deliverables: Unless otherwise specified, please submit deliverables via the Oncourse Modules feature even if the deliverable is late. When submitting a file, please adhere to the following conventions: 1. The filename should be TEAM #_DELIVERABLENAME using your team number and the name of the deliverable. 2. The first line of the file should contain the names of all the contributors followed by the name of the assignment. 3. The document should be formatted to print on 8.5 by 11 paper, including all excel spreadsheets. Breeze Sessions: We will meet approximately once a week in the Breeze Online environment. While your attendance is not graded (sessions are recorded for future use) you are encouraged to attend and actively participate in these sessions. Feedback from previous on-line courses indicate that this can be a substantial value-add to your course experience. Teams: I will place each student in a team. It is important that each team member contribute to the overall team assignments. Team evaluations will be conducted at the conclusion of the course. Individual participation scores will be adjusted by this allocation if unequal workload ratings are reported. Role of Course Calendar: The online course calendar contains all of the specific dates for activities and deliverables. Please pay particular attention to the contents of this calendar it is the official source of course dates. Role of Textbook: The textbook contains information in much more detail than we will formally cover in class. It is an encyclopedia of marketing management concepts and practices. In that sense, it serves as a reference to supplement the PowerPoint slides, articles and case discussions. I encourage students to read the textbook, but realize that you will be selective in reading materials that interest you. I believe there is value in 5

6 becoming aware of the many different approaches to marketing and conscientiously testing these ideas to the peculiarities of the life science market place. Along with each assigned chapter, I have provided a range of pages that I feel present the most important concepts. Some of you will routinely choose to read entire chapters. Some of you will limit your reading to the listed pages. Perhaps some of you will skim the chapters and devote most of your time to the PowerPoint slides discussed in the Breeze sessions. My passion for marketing is high, and I challenge you to absorb as much of this material as you possibly can. Finally, the details from certain chapters may help you prepare your final project assignment. Student-Instructor Dialogue: Contact me (Fred Roedl) with questions at any time. The online course delivery format allows me to customize my communication to adjust to your needs and thereby enhance your learning experience. 6

7 Tentative Course Schedule: The following is an anticipated course schedule (the instructor reserves the right to modify the schedule at any time): BA 655 Course Schedule Week Date Topic Reading Assignments/Deliverables 1 5/14 Introduction to Marketing TEXT: Chapter 1, Breeze 1: What is Marketing 5/20 Importance, scope and functional relationships Defining Marketing for the and Why is It Important? Strategic Marketing & Planning Role and structure of corporate, division and business unit planning Century pp. 3-12, st TEXT: Chapter 2, Developing Marketing Strategies and Plans pp Discussion Forum 1: Introductions and Is your firm market oriented? Discussion and team written assignment. 2 5/21 5/27 3 5/28 6/3 Consumer & Organizational Buyer Behavior The buying decision processes Distinguishing characteristics Role of: wholesalers, manufacturer s reps., GPOs, IDNs, payers, physicians, pharmacies, hospitals, etc. Market Intelligence Where and how to obtain usable market and customer information Posted Article: The Clean Queen Situation TEXT: Chapter 6, Analyzing Consumer Markets pp TEXT: Chapter 7, Analyzing Business Markets pp Posted Article: A look at the buyer process model TEXT: Chapter 4, Conducting Market Research and Forecasting Demand. HBR ARTICLE: Turn Customer Input into Innovation in readings packet. Posted Article: How to make.. Breeze 2: Comparing & Contrasting Consumer and Business Customers Discussion Forum 2: Who is the customer in life science markets? Breeze 3: How to Obtain Actionable Information Individual Written Assignment: Submit Brief Outline for Final Project 7

8 Week Date Topic Reading Assignments/Deliverables 4 6/4 6/10 Breeze 4: Progressive Market Segmentation for Life Sciences Market Segmentation and Targeting Traditional and nontraditional segmentation criteria Useful tools for targeting TEXT: Chapter 8, Identifying Market Segments and Targets. CASE: Biopure Corporation in readings packet. Written Team Memo 1: Biopure Corporation 5 6/11 6/17 Brand/Product Management Issues Building brand equity Developing and positioning a positioning strategy Marketing strategies for product life cycle stages Ingredient branding and co-branding HBR ARTICLE: Marketing Malpractice in readings packet. TEXT: Chapter 9, Creating Brand Equity pp TEXT: Chapter 10, Crafting the Brand Positioning. TEXT: Chapter 12, Setting Product Strategy pp Breeze 5: The Value of Creating and Maintaining Brand Equity Discussion Forum 4: Does brand equity count in the face of generics and bio-similars? 6 6/18 6/24 Pricing Strategies Conventional pricing strategies Value pricing HBR ARTICLE: Holding Fast in readings packet. TEXT: Chapter 14, Developing Pricing Strategies and Programs pp CASE: The Medicines Case Breeze 8: Value Pricing and Life Science Distribution Channels Discussion Forum 6: Does value pricing have a role in health care markets? Written Team Memo 2: The Medicines Case 8

9 Week Date Topic Reading Assignments/Deliverables 7 6/25 7/1 Breeze 7: The Importance of IMC in Life Science Markets Integrated Marketing Communications Risks and rewards of direct-to-consumer marketing in life sciences TEXT: Chapter 17, Designing and Managing Integrated Marketing Communications pp /2 7/6 Course Materials: HBR ARTICLE: And Now, a Word from Our Sponsor in readings packet. Final Written Project Marketing Audit 1. Marketing Management, Phillip Kotler and Kevin Lane Keller, Pearson Prentice Hall, 14 th edition (2012), New Jersey. ISBN-10: Referred to in the course schedule at TEXT. 2. Readings Packet assigned HBR articles and business cases 3. Posted Articles in Oncourse 9

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