Marketing Plan Pro - A Handout For Students

Transcription

1 MARKETING TECHNIQUES Craig Zamzow, MBA, CSBC Director Graduate Business Programs/SBI Director BU 5700.WV Spring 2011 Office Telephone: or Fax: Required Text: Simulation: Optional Texts: Kotler, Philip; Keller, Kevin Lane, A Framework for Marketing Management Pearson/Prentice-Hall, 4th Edition, 2008, ISBN A package price is available through the PSU bookstore (includes the above text and a certificate for the Simulation (below). ISBN 10: X; ISBN 13: This is the recommended combination. PharmaSim: The Marketing Management Simulation. Interpretive Simulations, Inc., 1421 Sachem Place, Suite 2, Charlottesville, VA Available at A discount coupon is included in some versions of the text or the simulation can be purchased separately for $ Wood, Marian Burk, The Marketing Plan: A Handbook and Marketing Plan Pro Software/Prentice Hall (Optional text to be discussed in class). Alternative marketing plan texts and/or software are acceptable for preparation of final marketing plan. Office Ready Marketing Plans ( is an example of such software. Course Description: Marketing Techniques is designed as an advanced course in marketing decision making. The course incorporates the fundamental concepts, functions, and strategies of marketing into a managerial frame of reference. The course will also focus on marketing applications in your particular firm or profession. Practical application of the course concepts will be made through marketing assessments and plans developed by the student. An over-the-counter pharmaceutical brand management simulation will be used in order to provide an opportunity to apply the concepts in the course to a realistic situation. Students will work individually, make 10 simulated years of strategic and tactical decisions and compete against other companies in the simulated industry. Course Objectives: 1. To present a clear picture of the total marketing system in the U.S.; to develop basic understanding of marketing management in the firm and how marketing relates to your personal and professional life.

2 2. To experience the typical decisions required of a brand manager through the use of an on-line web-based simulation. 3. To develop analytic abilities in problem detection, research, and decision making using the practical implementation of a Marketing Assessment and creation of a Marketing Plan. Case discussions and presentations of individual projects will be emphasized. 4. To expose students to the reality and significance of marketing decisions in the modern enterprise through developing a Marketing Plan for an actual company. Integrating marketing in the students profession is often appropriate and will be included in the class work. Evaluation: Marketing Assessment & Presentation 20% Class Participation & Prepared Questions 20% PharmaSim Simulation 30% Marketing Plan & Final Presentation 30% Course Structure: The actual classroom experience will be compressed into an intense three day format and consist of similar elements normally contained in the 10 night format. An appropriate number of guest speakers will also be featured to enhance the overall value of the course. Students will be expected to accomplish significant pre and post course work prior to and following the three day experience. Pre-work: Pre-work will consist of reading the entire required text book and preparing written answers to several questions on the important concepts contained in each chapter. The chapter questions are posted on Moodle along with this course syllabus. Students will be expected to hand in a hard copy of the questions on day three of the classroom period. Failure to do so will result in a fifty percent reduction in the Class Participation portion of the evaluation and loss of at lease one half of a grade level (i.e. A reduced to A- ; A- to B+; etc.) In addition, students will be expected to do a marketing assessment of the organization with which the student is currently employed. The student will follow the interview outline provided by the instructor and posted with the course syllabus on Moodle and prepare a written marketing assessment including all of the requested elements and a

3 SWOT analysis. This written assessment will be handed to the instructor for review during the student s presentation. Each student will prepare a 10 minute Power Point presentation (maximum time permitted, if exceeded the student will be cut off) and present his/her marketing assessment at one of the two after dinner sessions of the three day experience. For minimum set up time please bring your Power Point presentation on a flash drive to enable loading. This presentation will need to be created with Power Point, compatible with MS version 2010 the student intends to use the instructor provided laptop computer. Students are encouraged to bring their own laptop to this session for use in the class presentation and for the PharmaSim Simulation. The facility is fully WiFi enabled. Each student will be expected to subscribe to the PharmaSim simulation as shown above prior to the three day classroom. The student should print out the student manual (or purchase a copy) from the simulation web site above, read the case introduction and come prepared to take an open book quiz on the facts of the case. Additional trial and experimentation with the simulation is encouraged and will prepare the student for accelerated learning in the actual simulation. Students will be allowed to experience several simulation advances, replays and restarts prior to the start of the real simulation during the classroom weekend. Students will work individually and will compete in the competitive over-the counter drug market as a product brand manager. Students may form informal teams for strategy and planning discussions however decisions will be entered individually. Students will be allowed to make decisions during the 3 day weekend. The student is expected to make 10 simulated years of decisions during the term. Post-work: Following the three day classroom, the student simulation teams will be expected to make all remaining decisions on the simulation and complete any exercises assigned by the instructor. The ad-hoc team approach is optional. Therefore, students should self-select their teams to enable communication and potential face to face meetings during the remainder of the term. All students will be expected to submit ( preferred) a summary of their simulation experience including the initial marketing strategy adopted by the student; a description of each of the10 period decisions made and resulting impact on performance; a statement as to what the student wished he/she had done differently during the simulation; and finally what the student learned from the entire simulation experience. Students will prepare a Marketing Plan for any organization other than the one for which the students work. This plan should follow the outline for a marketing plan as provided by the instructor (to be handed out in class). Alternatively students may use Marketing Plan Pro or similar software to generate the plan. This approach will earn extra credit for the student s plan.

4 The student will also prepare a Power Point presentation of his/her Marketing Plan with the intent of presenting the plan to the client organization. Such a client presentation is assumed. The student will a copy of the plan and the Power Point presentation to the instructor to be received no later than May 10, Marketing Assessment: Each student will be required to do a marketing assessment of his/her current or recent employer (if not employed select a company with instructor approval). This project will require the student to interview his/her employer s chief marketing officer in depth (interview questions posted on Moodle with the syllabus), do a SWOT analysis (explained in detail in the required text) and make recommendations based on the student s findings and personal knowledge of the organization. Treat this assignment as a consulting engagement and write recommendations with the intent of providing a copy of the report to the person interviewed. A verbal presentation of the written report will be made in class and a written copy will be provided to the instructor. The student is encouraged but not required to present his/her marketing assessment to the individual interviewed for the assessment. PharmaSim Simulation: Students will participate in the PharmaSim simulation as a brand manager in the overthe-counter cold medicine market. The simulation creates a competitive environment in the simulated industry and informally between the other students in the class. Students will be required to make the typical kinds of marketing decisions required of a brand manager and experience the results of those decisions in the simulated market place. This learning experience should provide a realistic application of the course material. Student evaluations of this portion of the course will assessed on the quality of the strategic and tactical decisions made by the student and relative placement in the competitive environment (profitability, market share and stock price) at the end of the simulation. Students will be expected to make one or two decisions prior to or during the three day classroom using their own laptop computer. The three day classroom facility has WIFI broadband internet access and students are encouraged to bring their own laptops to this class. Term/Final Marketing Plan: Each student will be expected to prepare a Marketing Plan for a company (other than the student s employer) of his or her choosing (instructor approval required prior to or during the 3 day classroom). The instructor recommends that students choose a small to medium sized company for this plan. Students will have easier access to needed client information and personnel with a smaller company. Also, a smaller business client is more likely to

5 make use of the plan than a large corporation. In general the learning experience is enhanced with a smaller business. It is optional that the student acquire Marketing Plan Pro or alternative software for use in developing this plan. A written marketing plan and Power Point presentation of that plan will be completed as a final project by the end of the term. The student should come prepared to discuss the client for the Marketing Plan with the instructor and obtain approval to proceed during the three day classroom. Key Questions Influencing Company Choice: 1. Is there adequate depth in terms of marketing management? (Don t lose sight of the project s goal to illustrate marketing concepts and strategies from the text and lectures. Are there several specific concepts that can be clearly presented? Are there examples of management s adaptation of the 4-Ps to changes in the marketing environment?) 2. Can you access adequate information? The most common problem in this project is access to complete and accurate information. Both company contacts and external articles are important. Be sure the company is willing to provide the support material needed. Confidentiality is often a concern with such clients. The student may need to sign a confidentiality agreement and or disguise the company and/or product name(s) in order to gain the client s cooperation. 3. Is the subject company evocative, inherently interesting, engaging, and challenging to you so as to provide a meaningful learning experience? Avoid the temptation to remain in the comfort zone of your own company, industry and/or experience. 4. Does the company case represent an opportunity to apply the class material within the Marketing Plan? 5. The presentation should be done with the intent to present it to the client and include appropriate tables, graphs and visuals to make it interesting and effective. The presentation should be brief and to the point. It should include an instructor only appendix which would include background information about how the plan was created and difficulties, if any, encountered during the process. Format for Paper: The basic outline and flow provided by the instructor should be used unless the student is using a software template to prepare the plan. Such software will provide a good outline and logical structure for the Marketing Plan. Beyond this restriction student creativity is encouraged. Graphs, visuals, samples, ads, photos of the company s product(s), etc. should be integrated into the plan as they tend to breathe life into the plan. It is optional to use Marketing Plan Pro or other software to

6 prepare the marketing plan. The plan should include the student s own personal views, assessments and recommendations based on his/her research. Do not merely report and document what the company is doing. Propose what the company should be doing (or should not be doing) in addition to or instead of current marketing activities. Pre-work Discussion Questions: Goal: To demonstrate understanding of the text material. Each student will be expected to prepare responses to the questions (provided by instructor) on each chapter in the Kotler/Keller text and submit them at the end of the three day experience. These question responses should be typed and in grammatically correct, complete sentence form. These questions will be discussed in class on the assigned date. Answers should be brief and to the point. Do not go overboard in your answers but recognize that this is a time consuming effort prior to the class. These questions will be evaluated as a portion of the class participation score. BEST WISHES FOR A SUCCESSFUL TERM! Sincerely, Craig Zamzow

7 MARKETING TECHNIQUES Three day Weekend Course Schedule: Friday, April 1, 2011: 9:00 Introductions, objectives, syllabus review, expectations, Marketing Plan client selection, Q&A 10:00 11:00 noon - Chapters 1-4 question review, SWOT review 11:00 Guest speaker 12:00 noon Lunch 1:00 2:00 - Guest speaker 2:00 3:00 Win-Win or No Deal! 3:00 4:00 - Chapters 5 9 question review, Marketing Research role/case studies with short break 4:00 5:00 - Simulation: Quiz, introduction, demo, team selections, strategy formulation. 5:00 6:00 Student Marketing Assessment presentations (4) 6:00 Dinner 7:00 9:00 Student Marketing Assessment presentations (8) Informal discussions Saturday, April 2, 2011: 9:00 11:00 Chapters question review/case studies/buyers Style influence with short break 11:00 Guest speaker 12:00 Lunch 1:00 3:00 - Guest speaker 3:00 5:00 - Chapters questions review/workshops with short break 5:00 6:00 Student Marketing Assessment presentations (4) 6:00 Dinner 7:00 9:00 Student Marketing Assessment presentations (9) Informal discussions

8 Sunday, April 3, 2011: Simulation update 8:00 12:00 Advanced Marketing Research, Small Business Marketing, Integrated marketing communications/case studies 12:00 Lunch 1:00 3:00 Student advising discussions as required Wrap-up Departure Simulation Deadlines: 1-2 decisions required per week ends May 8, 2010 (10 total decisions required). Text Questions for preparation (pre-weekend): Chapter 1 Defining Marketing for the Twenty First Century: 1. What is the formal definition of marketing? 2. What is marketed? 3. Who markets? 4. What are some significant trends in marketing? 5. What are needs, wants, demands and how do they relate? 6. Explain the difference between marketing channels and a supply chain. 7. What is the Marketing Mix? 8. How has marketing evolved from the Product Concept through Holistic Marketing? 9. What is relationship marketing? Chapter 2 Developing and Implementing Marketing Strategies and Plans: 1. Explain the value creation and delivery process and the differences from the traditional marketing delivery sequence. 2. What are the three management questions addressed in a Holistic Marketing Framework? 3. What makes a good mission statement? How does your organization s mission statement stack up? 4. What is a SBU? 5. What roles do a SWOT analysis and MOA play in the strategic planning process? Why does every strategic plan begin with a SWOT analysis? 6. What are the three fundamental growth strategies? 7. If an organization is failing to meet the elements of its strategic plan, what are the two potential sources of the problem? Once the source of the problem is discovered, what actions should be taken?

9 Chapter 3 Understanding Markets, Demand and the Environment: 1. What is an MIS? What roles does it play in an organization and what is its importance? 2. List at least five significant trends in the environment and explain their impact on marketing today. 3. What are demographics and some significant changes happening with them? Explain the impact of these changes on the marketing function. 4. What role does marketing research play in the marketing process? 5. What are the steps in conducting marketing research? 6. What is the difference between primary and secondary data? When is each used in marketing research? 7. What is a census? What is the difference between a probability and nonprobability sample? When is each used in marketing research? 8. Does the size of the population influence the size of the sample? What is the most important aspect of a sample relative to the population? 9. What is the definition of market share? What are the important implications of market share with respect to an organization s competitive position and manufacturing costs? 10. What is the difference between the potential, available, target and penetrated market? Chapter 4 Creating Customer Value, Satisfaction and Loyalty: 1. Explain the concept of Customer Perceived Value and the key implications on marketing. 2. What is a value proposition? Give an example using your organization s products and/or services. 3. What are the key measures of customer satisfaction and how can marketing impact these measures? 4. Explain the concept of CLV (customer lifetime value) and the importance of customer Profitability. 5. Explain the concept of Customer Loyalty and how CRM (customer relationship management) can aid in cultivating customer relationships. 6. What are some ways that your organization builds Customer Loyalty? Chapter 5 Analyzing Consumer Markets: 1. What are some examples of social and cultural factors that need to be considered by marketers? 2. What consumer factors impact the effective communication of a marketing message? How do these factors impact consumer attitudes?

10 3. Explain the importance of consumer perceptions in marketing. With respect to a company and its products and/or services which is more important consumer perceptions or reality? 4. Explain the concept of consumer involvement in the buying process. 5. What are the stages of the buying decision process? Explain the differences between a high involvement and low involvement purchase decision. 6. Reflect on a major purchase that you have made recently. What were the steps that you went through to execute the purchase? Be prepared to share your experience in class. 7. What is Maslow s hierarchy (pyramid) of needs? How does this influence consumer behavior? How does this influence marketing? Give some specific examples. Chapter 6 Analyzing Business Markets: 1. What are the similarities and differences between individual consumer and organizational buying? 2. What is the concept of derived demand? Give an example. 3. What are the three organizational buying situations? Give an example. 4. What is a buying center? What are the typical roles in a buying center and the representative titles of the members? 5. What are the stages of the organizational buying process? How does it work in your organization or give an example? 6. Are there any unique aspects of governmental organizational buying vs. private industry buying? Chapter 7 Identifying Market Segments and Targets: 1) What is a Market? What is market segmentation? Why is it done? How is it done? What is the typical market segmentation strategy of a startup company? 2) What are the elements of effective market segmentation? 3) What are the four forms of market segmentation? When might each be used? 4) Why do companies target multiple segments? 5) What is psychographic segmentation and how does it differ from demographic segmentation? 6) What are the five criteria for useful market segmentation?

11 7) Explain the differences between the five market targeting strategies? Chapter 8 Creating Brand Equity: 1. What is Brand Equity and why is it important in Marketing? 2. How does a marketer go about measuring Brand Equity? 3. What is Brand Loyalty and why is it important in Brand Marketing? 4. What are the optional Branding Strategies? Which one(s) does your organization use? 5. Explain the concept of Co-Branding and the risks and rewards of this approach. 6. What are the factors and alternatives which need to be considered in Branding? 7. What is line extension and the risks and considerations in doing it? 8. What is Brand Extension? What are the advantages and disadvantages of Brand Extension according to Trout and Reis? Chapter 9 Creating Positioning and Dealing with Competition: 1) What is a perceptual map and how is it used in product positioning? (The answer to this question is not in your text.you will need to do some research to find an example of perceptual mapping). 2) What are POPs and PODs and why are they important in marketing? 3) What is product differentiation? Give some examples of product, personnel, channel, image and services differentiation. 4) What are the competitive forces threatening an organization and their impact on marketing strategies and tactics? 5) Explain the Industry and Market Concepts of Competition. How are competitors identified and evaluated using these concepts? 6) What are the three variables used to analyze the competition? 7) What are some alternative competitive strategies and tactics? 8) Compare marketing and warfare and discuss some examples of tactics which have been used by some leading companies. 9) How might a market-follower strategy pay off? Chapter 10 Setting Product Strategy and Marketing through the Life Cycle:

12 1. What are the five levels of customer value product hierarchy? Why is this concept important in Marketing? 2. What are the four classifications of goods? What are the differences in marketing these four categories of goods? 3. What is a product mix? Explain the difference between the width, length (depth), and consistency of a company s product mix. Give an example of each. 4. Explain the importance of packaging and labeling and warranties in marketing products.. 5. What are some of the reasons that new products fail? What is the single most common reason new products fail? 6. Briefly explain the new product development process. At what point in this process should development be aborted? 7. Explain the concept of time of adoption of innovations. Why is this concept important in Marketing? 8. Explain the product life cycle and how marketing strategies and tactics change through the different stages of the cycle. Chapter 11 Designing and Managing Services: 1) Is the process of marketing services the same or different than marketing products? Is marketing services harder or easier than marketing products? 2) What are the four key characteristics of services? Why are they important in marketing services? 3) What is the services continuum of evaluation? Why are services harder for the consumer to evaluate (in terms of quality)? 4) What are some methods of evaluating services and product support delivery quality? 5) Give some examples of Best Practices in Service-Quality Management. 6) How would you approach marketing the following services: Business consulting, a sports franchise (team), financial advising, personal fitness or care services? Chapter 12 Developing Pricing Strategies and Programs: 1) What are the implications of selecting an initial price that is too high or too low?

13 2) The two opposite pricing strategies are penetration pricing and skimming pricing. Explain the differences between these strategies and their respective objectives. 3) Explain the difference between moving along a product demand curve vs. shifting a demand curve. What is price elastic vs. inelastic demand for a product? 4) When would you use each of the following pricing methods - markup, targetreturn, perceived value, value, going-rate, auction-type, group, psychological, gain-and-risk sharing, and razor/razorblade? 5) Explain the concept of breakeven point. Why is it important for each organization to know the breakeven points for its products and/or services? 6) When is it appropriate to use price discounts and allowances? What are some examples of promotional pricing? 7) What is price discrimination? What factors must exist for price discrimination to be appropriate? 8) What alternatives exist to respond to changes in market demand and/or competitive forces other than changing prices? What choices does a company have in responding to a competitor s price changes? Chapter 13 Designing and managing value networks and channels: 1. Explain the concept of value networks and give an example. Describe your organization s value network. 2. What is the role of Marketing Channels? 3. Explain the different types of Marketing Systems and when each is appropriate. 4. What are the types of channel conflict and why do such conflicts arise? 5. How has E-Commerce changed the landscape of Marketing and Marketing Channel practices? Chapter 14 Managing Retailing, Wholesaling and Logistics: 1. What is retailing? How are retailers classified? 2. What are the types of non-store retailing? 3. What is the difference between width and depth of product offerings in retail? 4. What are some of the dominant trends in retailing? 5. What is the difference between an organization s marketing channels and supply chain? 6. What is logistics management and what is the significance of logistics to and organization? 7. What are the key tradeoffs in logistics management? Chapter 15 Designing and Managing Integrated Marketing Communications:

14 1. What are the elements of the marketing communications (promotional mix)? Explain where each element fits in product life cycle marketing. Where is each element most effective in the consumer purchase decision process? 2. Marketing is basically a form of communication. What two important commonalities (overlapping fields of experience) must exist between the sender (marketer) and the receiver (Consumer) must exist in order for the communication to be effective? 3. What is IMC? Why is a good IMC plan important to an organization? 4. Compare and contrast Advertising vs. Public Relations. 5. Compare and contrast personal vs. non-personal communications channels. 6. What are the different budgeting approaches for Marketing Communication expenses? 7. What is the biggest obstacle to Integrating Marketing Communications? Chapter 16 Managing Mass Communications: 1. What is advertising? What are the 5 Ms of advertising? What are the primary objectives of advertising? What are some common ways to measure the effectiveness of advertising? 2. What is meant by Reach, Frequency and Impact. Discuss the importance of each. 3. What criteria should be used to determine the selection of advertising media? 4. What are some different options for media timing and appropriate uses of each? 5. What is sales promotion? Give some examples of when it should be used? 6. What is PR? Who are the Publics in PR? Where does PR fit in the promotional mix? How is the effectiveness of PR measured? Chapter 17 Managing Personal Communications: 1. What are the types of direct marketing and how is each type used in the marketing mix? Describe the advantages and disadvantages of each. 2. What is product placement and give some examples that you have seen recently. 3. What is interactive marketing and how has it changed the marketing landscape? 4. What is a sales force and what are the different types of salespeople? 5. What are the different forms of sales compensation? What are the advantages and disadvantages of each? How does compensation impact sales person motivation? 6. Compare and contrast transactional selling vs. relationship selling. What is long term customer value? Chapter 18 Managing Marketing in the Global Economy: 1. What is a global firm and what is unique about such organizations?

15 2. What are the key decisions that need to be made when choosing to go abroad? 3. What are the alternative ways to enter foreign markets? 4. What are the five alternative product strategies for international markets? 5. Explain the concepts of forward and backward invention and when it might be appropriate to use each. 6. What are the alternative forms of structure for a global marketing organization? 7. What is socially responsible marketing? What is green marketing? What is causerelated marketing? What is affinity marketing?

16 MARKETING ASSESSMENT MARKETING TECHNIQUES BU5700: Craig Zamzow, Instructor The assignment is to do a marketing assessment of the organization for which you work. The assignment begins with a face-to-face interview with the Chief Marketing Officer (Marketing VP, VP Sales and Marketing, Director of Marketing, etc. are appropriate titles but it should be the most senior marketing person in the organization) of the organization during which you should ask at least the following questions: Name Title Company 1) What is the scope of your responsibilities? 2) What is your educational history? 3) Please summarize your career leading up to your current position? 4) What is the most significant challenge of your position? 5) What is the mission of the company? 6) What is the marketing strategy that supports this mission? 7) What is the highest marketing priority for your organization today? 8) What are the key marketing tactics and promotional programs that you use to accomplish your objectives? 9) What are some of your most successful marketing initiatives? 10) What marketing initiatives, if any, have not met up to your expectations? 11) What are the strengths, weaknesses, opportunities and threats of your company? 12) What are the short and long term goals of your company and the implications on your marketing programs? 13) Other questions that seem appropriate to you? Having taken notes on the interview, please do a SWOT analysis of the organization. And then do a Marketing analysis and provide answers, assessments and recommendations as follows: 1) Summarize the career experiences that led to the CMO s current position. In your opinion, does the CMO of your organization have an appropriate background to handle the challenges of his/her current position? Are their any experiences or educational credentials missing from his/her background that would seem to be desirable? 2) What is your assessment of the effectiveness of your company s marketing efforts? In particular, how well does marketing support the strategic objectives of the company and assist in accomplishing its mission? 3) In your opinion, what marketing efforts should be enhanced? Which ones should be eliminated or scaled back? What new marketing initiatives seem appropriate at this time? What are your recommendations for other changes?

17 SWOT Analysis Worksheet Strengths (internal to organization): Weaknesses (internal to organization): Opportunities (external market/business/product opportunities); Threats (external environmental/competitive): Marketing Recommendations (based on above factors using marketing mix):