STRATEGIC MARKETING MANAGEMENT (EMBA 8250) SYLLABUS
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1 STRATEGIC MARKETING MANAGEMENT (EMBA 8250) SYLLABUS Summer, 2015 Professor: V. Kumar J. Mack Robinson College of Business Georgia State University Office Hours: By appointment Course Objectives: 1. Understand the fundamentals of Relationship Marketing Strategy. 2. Understand the metrics used in CRM, especially customer value. 3. Evaluate the phenomenon of customer loyalty- is it always desirable? 4. Understand the tools used for efficient allocation of marketing resources to maximize customer value. 5. Develop an understanding of CRM implementation issues. Method of Instruction This course includes a combination of lecture notes, student discussion, and a text for references and examples. Students will also be responsible for analyzing cases and assigned readings along with solving numerical assignments dealing with marketing strategy (CRM), tools, and implementation. Students are requested to bring in their laptops/calculators to every class because problems requiring computations will need to be completed. The Teaching Assistant (TA) will be available during the in-class problem solving sessions to provide hints and guidance to the students. The course also has an ONLINE COMPONENT. Assignments based on the in-class problems and the readings will be posted online at Students are expected to go through the readings and work on the assignments as per the indicated schedule. The classes will be held in The Buckhead Exec Ed Location. Please all assignments to the TA at achristodoulopoulou1@gsu.edu. Reading Materials Required Textbooks: 1. Profitable Customer Engagement: Concept, Metrics and Strategies, V. Kumar (2013), Sage Publications. 2. Customer Relationship Management: Concept, Strategy and Tools, V. Kumar and W. Reinartz (2012), 2 nd Edition, Springer. 3. Statistical Methods in Customer Relationship Management, V. Kumar and J. Andrew Petersen (2012), Wiley & Sons. 1
2 Note: If you need to purchase the textbooks, they are available at Amazon.com: 1) PCE: Strategies/dp/ ) CRM: Strategy/dp/ X 3) Stat CRM: Management/dp/ Additional Suggested Textbook: Managing Customers for Profit: Strategies to Increase Profits and Build Loyalty, V. Kumar (2008), Wharton School Publishing. Required readings: The paper based readings (given below) and other class material will be available for download/purchase from the website to be indicated later. 1. Why Service Stinks, Business Week, October 23, The Perils of Social Coupon Campaigns, V. Kumar and Bharath Rajan, Sloan Management Review, Vol. 53 (4), Competing on Analytics, Thomas H. Davenport, Harvard Business Review, Jan 1, The Mismanagement of Customer Loyalty, W. Reinartz and V. Kumar, Harvard Business Review, July Building and sustaining profitable customer loyalty for the 21st century, V. Kumar, and D. Shah, Journal of Retailing, Knowing What to Sell, When, and to Whom, V. Kumar, R. Venkatesan, and W. Reinartz, Harvard Business Review, March What Drives Customer Equity, K. N. Lemon, R.T. Rust and V. A. Zeithaml, Marketing Management, Spring Getting the Most Out of All Your Customers, J. Thomas, W. Reinartz, and V. Kumar, Harvard Business Review, July/August How Valuable Is Word of Mouth? V. Kumar, J. Andrew Petersen, and Robert P. Leone, Harvard Business Review, Increasing the ROI of Social Media Marketing, V. Kumar and Rohan Mirchandani, MIT Sloan Management Review, Fall The Dark Side of Cross-selling, Denish Shah and V. Kumar, Harvard Business Review, Can Marketing Lift Stock Prices? V. Kumar and Denish Shah, Sloan Management Review, Vol. 52 (4), Students will be tested on material covered in class and some of the above mentioned readings. 2
3 Method of Evaluation CLASS COMPONENT EVALUATION CRITERIA Percentage of Grade In-Class Class Participation 5% Online Assignment #1: RFM and PCV calculation 10% Online Assignment #2: Readings-based Questions (2 sets 7.5% ) 15% Online Assignment #3: P (Alive), NPV & CLV Calculation 10% Online Assignment #4: CRV Computation 10% Online Assignment #5: CIV Computation 10% Online Assignment #6: Case analysis: Harrah s Entertainment 10% In-Class Exam 30% Total 100% 3
4 TENTATIVE CLASS SCHEDULE All assignments are due by 5 pm on the due dates. Day 1 Friday, July 24 th, 2015 (12:00 pm 3:00 pm) SESSION 1 Topic: Introduction to CRM a) Path to Profitability b) CRM and its Applications c) The Concept of Customer Loyalty d) Metrics for Evaluating Customers e) Antecedents & Consequences of Customer Loyalty Assignments: Assignment #1: RFM and PCV Calculation (Due on July 27 th, 2015) Assignment #2.1: Readings-Based Questions (Due on July 28 th, 2015) o CRM - Ch. 1-4 o Stat CRM - Ch. 1 - Why Service Stinks, Business Week, October 23, The Perils of Social Coupon Campaigns, V. Kumar and Bharath Rajan, Sloan Management Review, Vol. 53 (4), Day 2 Saturday, July 25 th, 2015 (9:00 am 1:00 pm) SESSION 2 Topic: Customer Loyalty and CEV a) Getting a holistic view of the customer o Customer Engagement Value (CEV) b) Introducing the components of CEV o Customer Lifetime Value (CLV) o Customer Referral Value (CRV) o Customer Influence Value (CIV) o Customer Knowledge Value (CKV) c) Measuring and Understanding the drivers of CLV d) Customer Selection e) Managing Loyalty and Profitability simultaneously Assignments: Assignment #3: P (Alive), NPV & CLV Calculation (Due on July 30 th, 2015) Assignment #6: Harrah s Case Study (Due on August 10 th, 2015) 4
5 o CRM - Ch. 5, 6, 7 & 15 o Stat CRM - Ch. 2 - Competing on Analytics, Thomas H. Davenport, Harvard Business Review, Jan 1, The Mismanagement of Customer Loyalty, W. Reinartz and V. Kumar, Harvard Business Review, July Building and sustaining profitable customer loyalty for the 21st century, V. Kumar and D. Shah, Journal of Retailing, Day 3 Friday, August 7 th, 2015 (12:00 pm 6:30 pm) SESSION 3 Topic: Measuring and Maximizing Customer Engagement Value (Part I) a) Optimal Resource Allocation b) Pitching the Right Product to the Right Customer at the Right Time c) The Dark side of Cross-selling d) Multichannel Analysis e) IBM Case Study-Video Presentation 12:00 pm 3:00 pm Assignment: Assignment #2.2: Readings-Based Questions (Due on August 9 th, 2015) o CRM - Ch. 12 & 16 o Stat CRM - Ch. 3 o PCE - Ch Knowing What to Sell, When, and to Whom, V. Kumar, R. Venkatesan, and W. Reinartz, Harvard Business Review, March What Drives Customer Equity, K. N. Lemon, R.T. Rust and V. A. Zeithaml, Marketing Management, Spring The Dark Side of Cross-selling, Denish Shah and V. Kumar, Harvard Business Review, BREAK SESSION 4 Topic: Measuring and Maximizing Customer Lifetime Value (Part II) a) Linking Acquisition & Retention to Profitability b) Understanding Referral Marketing o Customer Referral Value (CRV) o Business Reference Value (BRV) 3:00 pm 3:30 pm 3:30 pm 6:30 pm Assignment: Assignment #4: CRV Computation (Due on August 10 th, 2015) 5
6 o CRM - Ch. 16 (contd.) o Stat CRM - Ch. 4 & 5 o PCE - Ch. 6 - Getting the Most Out of All Your Customers, J. Thomas, W. Reinartz, and V. Kumar, Harvard Business Review, July/August How Valuable Is Word of Mouth? V Kumar, J. Andrew Petersen, and Robert P. Leone, Harvard Business Review, Day 4 Saturday, August 8 th, 2015 (9:00 am 6:00 pm) SESSION 5 Topic: Measuring and Maximizing Customer Lifetime Value (Part III) a) Dynamic Churn Models b) Increasing the ROI of Social Media Marketing o Customer Influence Value (CIV) c) Customer Knowledge Value (CKV) d) Linking Brand Value to CLV o Customer Brand Value (CBV) 9:00 am 1:00 pm Assignment: Assignment #5: CIV Computation (Due on August 10 th, 2015) o CRM - Ch. 16 (contd.) o Stat CRM - Ch. 6 & 7 o PCE - Ch. 7 & 8 - Increasing the ROI of Social Media Marketing, V. Kumar and Rohan Mirchandani, MIT Sloan Management Review, Fall BREAK SESSION 6 Topic: Measuring and Maximizing Customer Lifetime Value (Part IV) a) Linking CLV to Share Holder Value b) Review of the course 1:00 pm 2:00 pm 2:00 pm 3:00 pm o CRM- Ch. 17 o Stat CRM- Ch. 8 o PCE - Ch. 9 - Can Marketing Lift Stock Prices? V. Kumar and Denish Shah, Sloan Management Review, Vol. 52 (4), EXAM 3:00 pm 6:00 pm 6
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