EWMBA 206 is the core Marketing course in the EWMBA program.

Transcription

1 UNIVERSITY OF CALIFORNIA AT BERKELEY Haas School of Business EWMBA 206-1B: Mondays 6-9:30 pm Koret Marketing Management Fall 2015 Instructor: Wasim Azhar Phone: , ; Office Hours: Thursdays 6-7 pm and by appointment Mondays 5-5:30 pm Reader: Jasmin Young EWMBA 206 is the core Marketing course in the EWMBA program. The main course objectives are: 1. To introduce and develop concepts regarding the role of marketing in organizations. 2. To develop the basic concepts, tools and frameworks used in marketing to formulate marketing strategy and implementation plans within the context of company goals. 3. To assist in learning how to apply these concepts and to practice making decisions through case analysis. 4. To develop communication skills in articulating analyses and proposing, defending and debating recommendations. 5. To improve presentation skills and provide opportunities to articulate and defend positions via written assignments. The overall theme of the course is to emphasize the process of thinking qualitatively, quantitatively, and strategically regarding marketing situations, strategies and implementation plans, using concrete, real-life practical examples drawn from actual business situations. Course Materials 1. Text: Kotler and Keller: A Framework for Marketing Management 6th edition. Prentice Hall 2. A reader containing the cases for the course available on study.net. 3. Case discussion questions to guide analysis of the cases. Components of Final Course Grade: 20% Individual Class Participation 20% Individual Short write ups Due 6pm 11/9 and 6pm 11/30 25% Group Mid-term (Take Home Case Analysis). Due 6pm 11/23 25% Group Part of Final Exam (Take Home Case Analysis). 10% Individual Part of Final Exam 1

2 Guidelines for Preparing the Cases: To extract the maximum learning from class sessions, you need to prepare cases thoroughly for class discussion. First prepare the case individually, going through the case more than once and preparing notes for class. After your individual preparation, you will find it helpful to discuss your analysis and recommendations in your formal or informal groups to further hone your preparation. While preparing the cases, consider the following questions: What is the problem? Common marketing problems include: Should the firm enter or not enter a business area [go-no go decisions], choice of entering one area versus another area (product decisions; market decisions), which customer group(s) to target, how to retaliate against or attack competition, how to position a brand, whether to conduct market research, and if so what type of research to conduct, how to allocate the budget between various promotional media or sales, decisions regarding changes or continuation in distribution channels, brand names, what price(s) to charge, what type of advertising to run, media decisions, etc. What are the decision alternatives? These are usually implicitly or explicitly provided in the case, but you should feel free to go beyond those that are given. If not explicitly provided, then develop some viable alternatives for consideration. What are the company s strengths and weaknesses? Examples of areas that could be strengths or weaknesses include: brand name, customer franchise, human resources, superior technology, capacity and costs of production, experience, suppliers, distribution channels, financials, technology, and operations. What are the environmental opportunities and threats? These include changes in the overall environment, such as in the economy, socio-political climate, customer demographics, government regulations, consumer attitudes, competitive environment and technology. Assess the pros and cons of each of the decision alternatives against the backdrop of company strengths and opportunities, keeping competitive considerations in mind. Considerations may include quantitative analyses such as short-term and long-term breakeven analysis, profitability of different decision paths, and sensitivity of profitability to various scenarios depending on assumptions about uncertain variables such as market size and potential, as well as qualitative analyses such as fit with the company strengths, fit with existing opportunities, likelihood of competitive retaliation, etc. What is your recommended course of action with supporting strategic rationale? What is your proposed strategy and implementation plan? What do you think you will achieve through the plan? What are the likely key bottlenecks, and how do you propose to overcome them or ameliorate their effect? Remember that as in most business situations, there is no single correct answer for case situations. In most case discussions, participants can formulate and support several viable 2

3 alternatives (answers). A key managerial skill to develop is the ability to think critically about the rationale for each alternative and evaluate the pros/cons of pursuing competing alternatives before reaching a decision. Overall, analyze the situation, identify key issues/problems to tackle, identify various options available, discuss the pros and cons of the options, decide on a strategy backed up with cogent supporting rationale, and detail your implementation plan. Class Participation Participation enriches the quality of our classroom learning experience, and makes up a significant portion of the grade. It also realizes the potential for learning from different perspectives of the participants. For effective class participation, please comprehensively prepare the assigned materials before the class session. The discussion questions and listing of key topics are provided as a launching pad for your preparation, but you should try to go beyond them in your analysis and recommendations as you discern important aspects in the situation while delving deeper into the case. Case discussions are a crucial component of the learning process for this course. Since the quality of case discussion is the collective responsibility of the entire class, you should be prepared to contribute to every case discussion. I might "cold call" on students asking questions about the assigned material and their opinions. If you have not been cold called on, please raise your hand if you think you can contribute to the discussion. If you are particularly well prepared for a session to contribute to class learning or have something substantive to contribute to a particular case (e.g., because of prior knowledge of the company or industry), please send me an at least a day before the session. After each case discussion, students will be graded as to whether or not they have effectively participated in that session in adding to the class learning. Note that missing classes will hurt your class participation grade. However, attending class and not participating will not at all significantly enhance the grade. Effective class participation includes: 1. Sharing analysis of the case and recommended action plan with supporting rationale; 2. Sharing related experiences or points of view with the class; 3. Building on points raised by other students; 4. Raising relevant issues and channeling the class to fruitful discussion areas for managerial learning; 5. Relating and linking topics and issues being discussed to previous class discussions to help build integrated frameworks and develop managerial learning; 6. Summarizing key takeaways from class discussion. 7. Contributing to overall class learning -- the more substantial the contribution, the higher the class participation grade for the session. I use a point scale for grading which will be posted on bcourses. 3

4 Written Assignments 1) The midterm will comprise a comprehensive take-home group written analysis of a case (WAC) which you will be expected to complete in collaboration with your group members. Guidelines and instructions for the midterm WAC will be posted on bcourses. 2) There will also be 2 short take-home individual assignments which will be questions on cases assigned to be discussed in class. Instructions are in the syllabus. The Haas honor code will apply. 3) The final will consist of a group take-home case analysis and an individual take-home essay question. Other Protocol 1. A mutually supportive learning environment depends on active attention and engagement. For this reason, the use of laptops, ipads, PDAs, phones and any other electronics with on/off switches are not allowed during classroom sessions. While some students like to use them for note-taking or other pursuits, the value of legitimate use of laptops and mobile devices is far outweighed by the distraction that they create for their classmates and the overall deleterious effect on the learning environment. 2. Please sit in the same seat that you take in the first class for the duration of the semester. 3. Please use your name card throughout the semester. This will assist in getting to know you faster and keep our discussions moving efficiently as we cover material that multiple students will want to comment on. 4. To prevent disruption in case discussions and gain the maximum from class sessions, please come to class on time. I look forward to learning with you this term. 4

5 Course Outline Week 1: Monday, October 12th INTRODUCTION TO COURSE: SOME FRAMEWORKS Readings: Note on Marketing Strategy: HBS # Market Segmentation, Target Market Selection, and Positioning HBS # Kotler and Keller (KK): Ch 1: PP Session 1 and 2: Lecture Discussion: Segmentation, Targeting and Positioning, Product/Brand Portfolio Management Week 2: Monday, October 19th LAUNCHING NEW PRODUCTS; INTEGRATED MARKETING COMMUNICATION; BRAND PORTFOLIOS Readings: Principles of Product Policy HBS # Marketing Promotions HBS # KK:Ch 6: PP ; Ch 8: PP ; Ch 15: PP Case: Aqualisa Quartz: Simply a Better Shower. HBS Evaluate the various customer segments for showers in the UK market. What are their needs, sensitivities and purchase dynamics for showers? How do these differ across segments (if at all)? Given your analysis of the segments, what should be the target market(s) for Aqualisa s showers? 2. Who are the competitors in the market that should most concern Aqualisa and how does their presence affect your recommendation (if at all)? What counter measures re Product, Promotion, Place and Pricing do you recommend to Aqualisa? 3. Evaluate the roles and importance of the various players in the market. Which players can be Aqualisa's collaborators in the market? Why? How? 4. Evaluate Aqualisa's Brand and product portfolio strategies. What role does the Quartz shower play in their existing product line? Compare the contribution to Aqualisa of various products in its product line. 5. What value propositions does the Quartz offer customers? plumbers? retailers? In what ways can these value propositions be supported, quantitatively and/or qualitatively? 6. Why isn t the Aqualisa Quartz shower selling? What seems to be the main problem? Is it the Product? Pricing? Advertising and promotion? The way the product is distributed? The Aqualisa organization? Or is it something else? Explain in detail. 7. Evaluate the pros and cons of the various options being considered by Harry Rawlinson. Which would you recommend out of these? Or would you recommend a mixture of the strategies or something different? Provide specific rationale for your recommendations. 8. What overall marketing plan would you recommend to Harry Rawlinson in support of the Aqualisa Quartz? Why? Key Topics: Product Life Cycle; Advertising; Managing Brand Portfolios; Launching New Products/Brands; Customer Segmentation 5

6 Session 2: Lecture Discussion: Advertising and Product/Brand Portfolio Management Week 3: Monday, October 26th SERVICE MARKETING: CUSTOMER SEGMENTATION, CUSTOMER LIFETIME VALUE Readings: KK; Ch 4: PP 53-64; Ch 7: PP ; Ch 9: PP Case: Starbucks: Delivering Customer Service: HBS # What factors accounted for the extraordinary success of Starbucks in the early 1990s? What was so compelling about the Starbucks value proposition? What brand image did Starbucks develop during this period? 2. Why have customer satisfaction scores for Starbucks declined? What information can be gleaned from the consumer research data? 3. Has the customer profile for Starbucks changed over the years? If so what opportunities and problems does this create for Starbucks? 4. How has Starbucks evolved from its inception? Are the customer segments different in terms of service demands and usage? 5. Describe the ideal Starbucks customer from the company s viewpoint. What would it take to ensure that this customer is highly satisfied? How valuable is a highly satisfied customer to Starbucks? 6. Should Starbucks make the $40 million investment in labor in the stores? Why or why not? 7. What actions should Starbucks take? Why? Key Topics: Service Marketing; Segmentation, Positioning; Customer Lifetime Value Session 2: Lecture Discussion: Social Media Marketing 6

7 Week 4: Monday, November 2nd SOCIAL MEDIA MARKETING; DISTRIBUTION Readings: Going to Market HBS # KK: Ch 13: PP ; Ch 14: PP ; Ch 16: PP Case: Cisco Systems: Launching the ASR 1000 Series Router Using Social Media Marketing. KEL # Evaluate the performance of the ASR 1000 launch campaign. What grade would you give it? Why? What measurement metrics would you use to evaluate it? Why? 2. What lessons can be gleaned from the ASR 1000 launch? 3. How did the ASR 1000 launch alter Cisco's thinking regarding marketing communications? Why? 4. How did Cisco assess the return on marketing investment from social media campaigns? 5. How well did Cisco link the value propositions of the products and the company to the social media campaign? 6. Which companies do you think use social media effectively for B2C marketing? Which companies apart from Cisco use social media effectively for B2B marketing? What are the opportunities and challenges in using social media for marketing? 7. More recently how has the growth of companies such as Google, Facebook, Linked In, Yelp affected Social Media as a Communication Channel? 8. How has the rise of Amazon affected the Distribution and retail channels? Key topics: Launching products using Social Media Session 2: Lecture Discussion: "Going-to-Market" 7

8 Week 5: Monday, November 9th DISTRIBUTION AND SALES FORCE MANAGEMENT: Readings: KK: Ch 12: PP ; Ch 17: PP Guest Speaker. Session 2: Case: Vocera Communications; Stanford E-152 Submit Individual assignment answering Q 2 and Q3 only by 6pm November 9th. (Word document: 7 page limit including exhibits) 1. If you are a VC who has been approached to invest in Vocera s next round of financing, what concerns do you have about the company s choice to sell solely through the indirect channel? What concerns do you have about its confining its sales to only two vertical market segments? 2. What were the approximate costs (including channel discounts) involved in building Vocera s VAR channel? How do they compare with the costs involved in building a direct sales force? Which is more cost effective? Or does it 'depend'? Explain. 3. What are the pros of cons of Vocera selling through indirect channels only? Direct only? Dual distribution? What do you recommend? Why? 4. What steps should Vocera take to deal with non-performing VARs? How should the company deal with Ned Lindsay of Tek Integrators? Should management take a similar approach with LAN Guys? How can Vocera mitigate the disadvantages of selling indirectly? 5. Would you have made the same decision as Vocera (i.e., to sell through VARs rather than build a direct sales model)? How should a company decide whether a direct or indirect selling strategy is appropriate? Key topics: Channel options for a small start-up company; DMUs and DMPs Designing and managing distribution for a technical product; 8

9 Week 6: Monday, November 16th PRICING AND SALES MANAGEMENT Readings: Principles of Pricing HBS # KK: Ch 7: PP Case: The Medicines Co.: HBS # What is the value of Angiomax to a hospital? 2. What price should the Medicines Company charge for a dose of Angiomax? Why? 3. What do you think the adoption profile will look like for Angiomax? Will it be an easy or hard sell? Why? 4. How can/should the Medicines Company promote adoption of Angiomax? Who should it try to convince within the hospitals? Which hospitals, doctors, administrators and purchase managers should it target? Why? 5. What do you think of the Medicines overall business model of rescuing abandoned drugs? Key Topics: Going to market with a high tech product. Value pricing by segments in a high tech medical products domain; DMU s and DMPs Session 2: Lecture Discussion: Marketing Strategies and Tactics 9

10 Week 7: Monday, November 23rd (combined class) Andersen auditorium SERVICE MARKETING; INTERNATIONAL MARKETING; INTEGRATING MARKETING WITH OTHER FUNCTIONAL STRATEGIES Reading: KK: Ch 8: PP Guest Speaker: Reiko Yoshida, Business Leader, Global Marketing Planning and Strategy, VISA Corporation. Session 2: Case: Apple in 2015 HBS # Comparing Sculley s, Job's and Cook's strategies, evaluate their rationale and results? 2. What marketing strategy is Apple following? What have been the secrets of its success in implementing this strategy? How do these integrate with the rest of its functional strategies - Finance, HR, Operations, R&D, etc? 3. Evaluate Apple s branding strategy. Are the ipod, iphone and ipad powerful sub-brands in their own right? 4. Evaluate Apple s launch strategies for ipod, iphone and ipad and their role within its portfolio? How has Apple adjusted its launch strategy for ipad compared to its earlier strategies for ipod and iphone launches? What is your assessment of the adjustment? Evaluate the marketing mix of the succeeding versions of the ipod, iphone and ipad. 5. Is Apple's advantage in the iphone and ipad categories sustainable in the near future? Why or why not? 6. What is your evaluation of the marketing strategies for Apple Pay and Apple Watch? 7. Is Apple the same without Steve Jobs? Would you buy, hold or sell its stock now? 8. What are the strengths and weaknesses of Apple going forward? Where do you think the battles between Apple and its key competitors are headed? Who are its key competitors now? Why? What should Apple do re its future marketing strategy? 9. The 4 big "whales" Amazon, Google, Facebook and Apple are battling for the online arenas of online commerce, retail, search, advertising and mobile telephony. What are their relative strengths and weaknesses? What do you envisage will be the scenarios in the arenas by 2020? Key Topics: Brand Building; Product Portfolios; Product Launch Strategies; Integrative Strategies; Competitive Strategies of Market Leaders; Please submit your group write-ups on Apple in 2015 by 6pm Monday, November 23rd. 10

11 Week 8: Monday, November 30th SAAS AND SAAP MODELS; STP; MARKETING INNOVATIVE PRODUCTS AND SERVICES; CLV Please submit your individual write-ups answering Q2 only by 6pm Monday, November 30th. (6 page limit including exhibits) Case: Hub Spot: Inbound Marketing and Web 2.0": HBS # Do you agree with HubSpot that the Rules of Marketing" have changed? If so, how? Is inbound marketing the answer? Why or why not? 2. Calculate the average CLV for (a) an Owner Ollie (OO), ( b) a Marketer Mary (MM) (c) B2Cs and (d) B2Bs. What measures can HubSpot employ to try to increase their CLVs? What would you recommend? Why? What are the pros and cons for Hubspot of serving (a) OOs (b) MMs? What are the pros and cons for Hubspot for adopting (a) B2C focus (b) B2B focus? 3. Being a start-up company, should it widen its focus to serve any customer that comes its way? Or narrow their target, by focusing exclusively on either OOs or MMs? Or by focusing exclusively on either B2B or B2C customers? What focus or spread re target customer segment(s) would you recommend? Why? 4. HubSpot has begun to differentiate its products as it has learned more about its customers. Should it do more? Should its pricing strategy change too? Does the software-as-a-service (SaaS) pricing model work for both MMs and OOs? Why? What pricing structure would you recommend? 5. Are the founders being too stubborn by not doing any outbound marketing? Or should they continue to practice what they preach by focusing on inbound marketing alone? 6. Halligan and Shah want HubSpot to be to marketing, what salesforce.com is to sales. What would your plan of action be to make this happen? Why would you take these actions? What would keep you up at night about your plan? Key Topics: Customer Segment Analysis and Targeting; CLV; Internet and Software Pricing Models for Web 2.0; SaaS and SaaP Pricing Models. Session 2: Lecture Discussion: Week 9: Monday, December 7th COMPETING AGAINST GIANTS; INTERNATIONAL MARKETING KEY TAKEAWAYS Session 1 & 2 : To be distributed 11

12 COURSE READER CONTENTS: Case: Aqualisa Quartz: Simply a Better Shower. HBS Case: Starbucks: Delivering Customer Service HBS Case: Cisco Systems: Launching the ASR 1000 Series Router Using Social Media Marketing. KEL 580 Case: Vocera Communications Stanford E-152 Case: The Medicines Co. HBS Case: Apple in 2015 HBS Case: Hub Spot: Inbound Marketing and Web 2.0 HBS Case: To Be Distributed Note on Marketing Strategy HBS Principles of Product Policy HBS Marketing Promotions HBS Market Segmentation, Target Market Selection, and Positioning HBS Going to Market HBS Principles of Pricing HBS