MARKETING STRATEGY Syllabus
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1 MARKETING STRATEGY Syllabus MKTG 4120 Prof. John Howard Spring 2013 Section 01: M/W 9:30-10:45 Room 3111 Office: GWII 4114 Section 02: M/W 2-3:15 Room 151 Office Phone: Pre-requisites: Cell Phone MKTG 3010&Junior Standing Office Hours: M-Fri; 3:30-4:30 Strategic Marketing: the configuration of marketing offerings for specific product-markets to achieve sustainable competitive advantage. Syed H. Akter Course Description: The word strategy derives from two Greek words: stratos, an army, and ago to lead. Thus, engaging in strategy is to play the role of a general in war. True strategy involves an enemy, whose defeat is, of course, the objective of the general. If there were no enemy to fight there would be no generals or strategy. When the achievement of objectives does not require the defeat or retreat of opposition, strategy is not necessary, and another word to describe the required behavior might better be chosen, such as plan, design, or scheme. The enemy in marketing is, of course, competition. Marketing strategy is always concerned with besting competition by such means as penetration, outflanking, undermining, stealing a march, head-on engagement, fortifying, defending and other such battle-like metaphors. It is the presence of competition, either actually or potentially, as well as the effective marshaling of organizational resources that separates the strategy function from other organizational functions that can commit errors within their own silos with relatively little immediate cost to the organization (accounting, research, human resource management, advertising, MIS, etc.). An error in strategy, however, is more likely to result in organizational defeat, and will entail all the social and financial consequence of such a misfortune. Another characteristic of strategy that distinguishes it from other business functions is that it is usually a zero sum game. In order to win, an opponent must lose. This is not always true in other disciplines, including some marketing activities. Promotion, for example, can increase consumer demand so that all organizations are better off, but the good strategist is aware of the phenomenon of product life cycles and is developing a strategy for meeting the inevitable day when competition begins to squeeze profit margins. In this course, then, we will be concerned with marshaling resources to achieve a sustainable competitive position, by satisfying customer needs. This can include tactical decisions and actions in such areas as promotion, research, product policies, distribution and many other marketing actions. This course involves the review of and learning of new marketing strategy concepts, and the opportunities to apply those concepts in concrete application settings. Part of the class will be devoted to the investigation of the nature of marketing strategy and particular types of marketing strategies. The remainder of the course will provide you with opportunities to apply your strategic marketing knowledge in creative and resourceful ways. Your first Marketing course was an overview of the marketing processes and institutions. Your subsequent marketing courses were presentations of some of the tools of marketing. This course will develop your skill in identifying and executing a particular strategy once you have classified
2 the conditions under which an organization is operating. It highlights the necessity of taking an abstract ground view of the environment. This means that you will, first, learn the classifications of conditions that may pertain, and then the actions that have proven to maximize the probability of successfully negotiating and capitalizing on those conditions. By the end of the course, you will have a mental catalogue of a variety of common marketing situations, the strategies available to achieve organizational objectives in these situations, as well as a clear idea of the advantages and disadvantages of alternative courses of action. The business enterprise has only two basic functions: Marketing and innovation. Marketing and innovation produce results, all the rest are costs Peter F. Drucker Course Objectives: The course is designed to help you hit the deck running when you encounter professional marketing challenges. Its key objectives are to: Texts: 1) Develop an understanding of the strategic function, including the definition of a strategy s scope, the setting of strategy-supportive goals, the identification of relevant primary and secondary data sources, analysis of information, identification of tactical goals, the execution of strategy and tactics, the allocation of scarce resources, and communicating effectively. 2) Expand on marketing s core body of knowledge through the application of that knowledge to a simulated marketing problem faced by a firm. Markstrat Online Student Handbook; Larréeché, Jean Claude, Hubert Gatignon, and Rémi Triolet; StratX International; ISBN Readings: Available through Blackboard (See below.) Course Structure: There are three essential elements to the course and each will be approached as follows: 1) Theoretical Material: Selected parts of the course will be devoted to the learning of this information. It concerns environmental factors influencing the applicability of concrete marketing strategies, as well as the nature and requirements of those strategies. The environmental factors include internal conditions, customer characteristics, competition, and market character. The strategies to be investigated are based on product value, global branding, unique positioning, growth, diversification and actions appropriate for declining and hostile markets. There will be four examinations on these topics. 2) Application of Theoretical Material (Markstrat): Many people have learned that new skills must be learned through action and experience rather than from books and lectures. In keeping with this finding, much of the course will be devoted to learning to apply the Theoretical Material, described above, to the resolution of challenges facing working marketing managers partly through participation in Markstrat, a Marketing simulation game. In this simulation, you will be assigned to a "Marketing Management Team" that will be responsible for running a company and competing
3 against other firms in the simulated industry. This exercise focuses on the concepts of competitive analysis and demonstrates how Marketing decisions impact the financial performance of the firm. In essence, the simulation will serve as an "ongoing case study" during the course. a. Teams of up-to five members will manage a company that they take over through a bidding process. Company choice will be auctioned by the instructor, and will be paid for with a five-period loan with 8% interest if needed. b. Teams will address marketing problems by developing the marketing strategy and tactics that the team believes will enable their company to achieve its goals. c. Strategy will be pursued to maximize net contribution, brand share, revenues, shareholder value, R&D productivity, etc. d. Success in this competition will be based on the company s position relative to other companies on the goal metrics. e. Each team will submit responses to strategy rationale questions. f. At the end of five periods, bidding for companies will again be conducted, and the final five periods will be see whatever new management and team composition that students and the auction determine. 3) MARKETING COMPETITION: Students will divide into teams of up-to five members for the purpose of a nation-wide marketing competition. EdVenture Partners is hosting the American Energy Works case competition. AEW is the only national trade association representing all aspects of America's oil and natural gas industry. Undergraduate teams of five students or fewer from colleges and universities in the United States and Canada will participate over the Spring 2013 term. The American Petroleum Institute (API) wants college students to help craft a website redesign with recommendations and a creative brief. The website s goal is to present information to educators for promoting energy literacy among America s students. The top three teams will be invited to present their plans to API s Communications Committee in San Francisco, California. The presentations include an all-expense-paid trip for up to five students and one faculty member per team. The top team will be invited to spend all-expense-paid weeklong mentorship in Washington D.C. with API and Story Partners in the actual development of their winning website design strategy. Student teams will be asked to complete the following: 1) Conduct Secondary Research: Conduct an audit of the Adventures in Energy (Adventures in Energy ) website in order to gain an understanding of the website, its user interface, existing educational materials and how they might be used by educators. Student teams must provide a recommendation on which information is essential and what areas are lacking and in need of additional resources.
4 2) Perform Primary Research: Perform a quantitative survey of educators to gain an understanding of their wants and needs when utilizing web resources for development of grade appropriate lesson plans. Gain insight into how educators prefer to engage with online resources when searching for content. 3) Create A Website Redesign Plan: Provide a website redesign recommendation (website wireframe, site master page, homepage concept, 2 to 3 internal site pages, overall design concepts) that improves the usability and user experience of the educational content for educators. 4) Develop A Creative Brief: Write a Creative Brief that outlines the message, tone and look of the site and serves as the overall guide for the website redesign recommendation. 6) Outline Your Budget: Detail how a $30,000 budget will be utilized in developing your recommended website revamp. Here are the details of the American Energy Works registration: Registered school: Tulane University Web site: You can contact Karin Fonte at kfonte@edventurepartners.com or for additional information 4) QUESTION RESPONSES: On assigned days, student or teams will submit answers to specific, questions on the assigned readings or their Markstrat strategy. These responses should reflect the material that is presented in the readings and the opinions of the student when appropriate. If the questions concern readings, responses are the responsibility of individual students. If they concern their Markstrat company responses are the responsibility of the Markstrat team. A random sample of written submissions (about 25% of the class) will be read and graded by the instructor each time a written task is assigned. About three of each student s total number of submissions will be graded, and the average of these will comprise the student's grade for this portion of the class. Submissions should be made in the Black Board Digital Drop Box. ALL late submissions will automatically receive a grade of "C" if submitted one class day late, a "D" if two class days late, and an "F" thereafter. Any responses submitted via will be considered late. ASSIGNMENTS: (1) Class attendance and participation. (2) Sit for scheduled examinations. (3) Compete in Markstrat. (5) Submit homework question responses and case discussions. (6) Enter Marketing Competition GRADING: Grades will be calculated as follows:
5 Class Participation 10% Examinations 40% Question Responses 15% Markstrat 25% Competition 10% Class Schedule Date Reading Assignment M 1/14 None Course Introduction W 1/16 Participant Handbook Bring Handbook to class. M 1/21 No class: MLK Day M 1/28 Participant Handbook Bring Handbook to class. Organize teams.. W 1/30 Participant Handbook Team organization/ In-class bidding on company ownership. Quiz on MARKSTRAT. Register for Markstrat by 5pm. Team ID s & passwords distributed when registration is complete. M 2/4 Reading #1 Team Questions on Assignment #1 Practice decision round is 5pm. W 2/6 Readings #2, 3 Practice decision round is F 2/8 Round 1 is 5pm. M 2/11 MARDI GRAS No Class W 2/13 Reading #4 Quiz on Readings 1-4 API Case Online Discuss API Competition Discuss Round 1 Results F 2/15 LAST DAY TO REGISTER TEAM WITH API S 2/16 API Case Online Present questions/ideas about API Case to Class M 2/18 Readings #5 & 6 Team Questions Assignment #2 Round 2 is 5pm W 2/20 Reading #7 & 8 Round 3 is 5pm Fri 2/22 Burkenroad Through the Looking Glass: The Ethics of Symposium;10-11:30 Transparency in the Global Business Dixon Hall Environment: A Conversation with James Turley
6 Auditorium Chairman and Chief Executive Officer, Ernst & Young M 2/25 Reading #7 & 8 Individual questions assignment #1 Round 4 is 5pm W 2/27 Reading #9 Quiz on Readings 5-8 M 3/4 Readings #9 Individual questions assignment #2 W 3/6 Readings #10 & 11 Round 5 is 5pm M 3/11 Readings #10 & 11 Present API research to class Round 6 is 5pm W 3/13 Readings #12 & 13 Team Questions Assignment #3 M 3/18 Readings #12 & 13 Quiz on readings 9-13 Round 7 is 5pm W 3/20 Reading #14 SPRING BREAK W 4/3 Reading #14 Submit API entry to instructor Round 8 is 5pm M 4/8 Reading #15 W 4/10 N/A Present API submission in class Round 9 is 5pm S 4/13 N/A Excused to Attend Burkenroad M 4/15 None API Presentations concluded W 4/17 None API submission deadline M 4/22 Reading #15 Round 10 is 5pm W 4/24 Reading #16 Team questions Assignment #4 M 4/ 29 Reading #16 FINAL QUIZ Reading #17 & 18 Quiz on Readings 14-17
7 READINGS 1) Business Strategy: The Concepts and Trends in Management ; Strategic Market Management; Wiley; 2005; pp ) Why do Good Companies Go Bad?, Sheth, Jagdish N.; The Self-Destructive Habits of Good Companies And How to Break Them; Pearson, 2007; pp ) Strategy, Kotler, Phillip; Marketing Insights from A to Z; Wiley, 2003; pp ) What is Strategy?, Porter, Michael E.; On Competition; Harvard Business School Press, 1996; pp ) Introduction, Neumeier, Marty; The Designful Company; Marty Neumeier, 2009; pp ) The Power of Design, Neumeier, Marty; The Designful Company; Marty Neumeier, 2009; pp ) Dick Fosbury and Imagination and Possibility, Manu Alexander; The Imagination Challenge; Pearson, 2007; pp ) Streaming Dreams: You Tube Turns Pro ; John Seabrook, The New Yorker, January 16, 2012; pp ) Generic Robust Strategies, Mercer, David; Marketing Strategy: The Challenge of the External Environment; The Open university, 1998; pp ) Marketing Strategy, Wikipedia: 11) Marketing Strategy, The Quick MBA; 12) How to develop a Marketing Strategy in Five Easy steps ; About.com: Marketing; 13) What s the Difference Between a Marketing Plan and a Marketing Strategy? ; About.com: Small Business: Canada; 14) Creating Competitive Advantage ; Pankaj Ghemawat and Jan Rivkin; Strategy and the Business Landscape; Prentice Hall, 2000; pp ) Building the foundation of Strategic Marketing Communications, M. Joseph Sirgy and Don R. Rahtz; Strategic Marketing Communications; Thomson, 2007; pp ) Distribution and Supply Chain Management, O.C. Ferrell and Michael Hartline; Marketing Strategy; Thomson, 2008; pp
8 17) Offensive and Defensive Marketing Strategy, Syed H. Akhter; Strategic Marketing; Atomic Dog, 2006; pp )
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