The Peter F. Drucker and Masatoshi Ito Graduate School of Management Claremont Graduate University
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1 The Peter F. Drucker and Masatoshi Ito Graduate School of Management Claremont Graduate University Spring 2007 Intensive Fridays 7 10 PM, Saturdays 1 4:50 PM January 26 & 27, February 9 & 10, 23 & 24 MGT 302 Current Issues in Marketing (2 units) Dr. Monica Perry Burkle 228: Hours: to be given in class, also by Appointment; please first to schedule a face to face, phone or text chat appointment. Tel (no voice mail to leave a message, speak to faculty support, below) monica_perry@hotmail.com Faculty Support: Edie Young, Burkle Upper Level west end workstation, tel , fax , edie.young@cgu.edu Course Description Our course examines customer relationship management (CRM) as a key strategic process. Composed of people, technology, and processes, effective CRM optimizes the selection or identification, acquisition, growth and retention of desired customers to maximize profit. Anyone interested in being an architect of CRM within his or her organization, or responsible for the development, maintenance or growth of customer relationships, will find this course beneficial. Both organizational customers (B2B) and consumers (B2C) will be addressed. Organizations continue to invest heavily in CRM yet experience a relatively high failure rate. The pitfalls as well as the benefits of CRM strategy and implementation are addressed in depth throughout the course, culminating in the completion of a CRM strategic plan. In addition to the CRM strategic plan, the course involves in-depth class discussions of concepts, tools and a case, student expert presentations, and hands-on analysis of a customer database. Course Objectives By the conclusion of this course, students should: 1. Understand the fundamentals of CRM, which include understanding: 1.1. models of key customer behavior such as customer satisfaction, loyalty, customer defection, word-of-mouth; 1.2. key concepts, such as closed loop marketing (360 degree marketing) and touchpoint analysis, data mining and modeling, customer lifetime value, sales force automation, cross-selling/upselling; 1.3. benefits of and difficulties in developing and implementing CRM strategies; 1.4. ethical issues arising from the acquisition, use and sharing of customer data; and 1.5. CRM s role in managing customers as critical assets, business intelligence and knowledge management. 2. Possess the knowledge and skills to craft proactive, creative and effective CRM strategies and programs that:
2 2.1. are based on thorough quantitative and qualitative analysis 2.2. make appropriate use of technology, organizational knowledge and customization and personalization capabilities; 2.3. utilize offline and online channels effectively from an integrated marketing communications perspective; and 2.4. address implementation, monitoring and control issues. 3. Recognize the basic technological infrastructure and organizations involved in current and emerging CRM practices, such as mobile communications. Required Course Materials Managing Customers as Investments (2005) Gupta, S., and Donald Lehmann. Wharton School Publishing, ISBN IN COURSE PACK TO BE PURCHASED AT HUNTLEY BOOKSTORE: Narayandas, D. & Korman, K. (2000). Granny's Goodies, Inc., Boston, MA: Harvard Business Press. 21 page case. Harvard Case Product Number: Six (6) Supplemental Articles available on eres and WFS: 1. Moon, B. (2004). Consumer adoption of the Internet as an information search and product purchase channel: some research hypotheses. International Journal of Internet Marketing and Advertising, 1 (1), pp Forbes, L., S. Kelley and K. Hoffman (2005). Typologies of e-commerce retail failures and recovery strategies. Journal of Services Marketing, v. 19 (5), pp Bendoly, E., J. Blocher, K. Bretthauer, S. Krishnan and M. Venkataramanan (2005). Online/In-store integration and customer retention. Journal of Services Research. 7 (4), pp Holmstrom, H. and O. Henfridsson (2002). Customer Role Ambiguity in Community Management. Proceedings of the 35 th Hawaii International Conference on System Sciences. Vol 7, pp Ryals, L. (2003). Creating profitable customers through the magic of data mining. Journal Of Targeting, Measurement And Analysis For Marketing, 11(4), Danna, A & Gandy, O. H. Jr. (2002). All that glitters is not gold: Digging beneath the surface of data mining. Journal of Business Ethics, 40(4), The articles will be on electronic reserve (eres) at the Honnold Library website, and on WFS. Access the Honnold Library website at go to the bottom of the green center column at Reserves, on the next page click on Connect to electronic reserves, then the top link electronic reserves & reserves pages, then the right most button Course reserves by instructor, then the instructor s last name on the drop down menu, then click search, then click on the left most column MGMT- find course number here_cu, then first initial of first name last name course number to see the reading materials.
3 For WFS, go to wfs.cgu.edu and log in using your CGU username and password the same that you use to read your CGU . Find the instructor s name under the main directory. Call the Helpdesk at or helpdesk@cgu.edu for assistance. Course Requirements Specific course requirements include in-class participation, written reports and a presentation. Requirement Point Value Due Expert Presentation 150 pts January 27 (Session #2) February 9 (Session #3) CLV Report 200 pts February 23(Session #5) CRM Strategic Plan 500 pts March 5 (Submit Electronically) In Class Participation (including short assignments completed in class) 150 pts All Sessions TOTAL 1000 pts Grades will be assigned approximately as follows: A/A pts. B+/B/B pts. C+/C/C- = pts. D pts. F < 600 pts Description of Requirements All written reports should be typed, double-spaced and include a cover page with report title and your name. Be complete, but concise. Keep an extra copy of the report for your records. Expert Presentation: Article on CRM (150 pts) Using secondary data sources, you will identify a recent article that addresses a particular concept, model or topic relating directly to CRM, such as touchpoint analysis or customer retention strategies. You will make a brief presentation (5-7 minutes) to the class for discussion. The particular article you choose should relate to one or two of the specific course topics. As you will be expected to be an expert on the particular topic, make sure to use an appropriately in-depth article, i.e. more than 2 pages. Journals that would be useful in identifying appropriate articles include the Journal of Relationship Marketing, the Journal of Internet Marketing and the International Journal of Internet Marketing and Advertising. Consider using ABI/Inform or Google Scholar to search for relevant articles.
4 Customer Lifetime Value (CLV) Report (200 pts): The CLV assignment is a hands-on analysis of one of the most critical analytical tools of CRM, customer lifetime value (CLV). You will be provided an actual database of direct mail customers via WFS. In your report: 1) provide an in-depth definition and description of CLV for an actual database of customers 2) state the relevant assumptions underlying your definition and description and 3) provide a numerical/statistical summary of your results. Your report should be between 3-5 pages. CRM Strategic Plan 500 points Your CRM Plan should include the following: 1. Executive Summary (1 page) 2. Situation Analysis (1 page) Brief description of the organization, current CRM activities for the organization and a few key competitors. 3. CRM Objective (1-2 pages) Describe and support one relevant objective your plan should accomplish (ex. Acquisition, Retention, etc) and identify at least one relevant metric for monitoring and control. 4. CRM Recommendations (6-8 pages) Describe your CRM recommendations and how they will achieve the intended objective. Address both strategic planning and implementation issues, such as communication content and channels, personalization, customization, and how you would analyze and collect necessary data. Support your recommendations with clear logic and analysis by integrating the relevant concepts from the assigned readings, class discussions and additional secondary sources. Your recommendations should be clearly focused on achieving the specific objective identified, and does not need to be an exhaustive treatment of all possible CRM strategies and tactics. As many organizations have discovered, the most successful CRM implementations are often those with a specific objective and focus. In Class Participation 150 pts Since in-depth, interactive discussions of topics and cases, in-class exercises and short assignments will comprise a major component of the in-class sessions, full and active participation is expected. Please prepare the readings prior to the class sessions to facilitate your learning.
5 Date Jan. 26 (Session 1) Jan. 27 (Session 2) Feb. 9 (Session 3) Feb. 10 (Session 4) Feb. 23 (Session 5) Feb. 24 (Session 6) March 5 Course Schedule Topics Readings CRM vs Traditional Marketing Analytical CRM: Customer Touchpoint Analysis Buyer Behavior Customer Satisfaction, Loyalty and Perceived Value Chap. 1 (Gupta & Lehman) Article 1: Moon (2004) Granny s Goodies Case Analytical CRM: Customer Lifetime Value Chaps. 2, 3 and Appendix A (Gupta & Lehman) Analytical CRM: Datamining and Modeling Operational CRM: Service Aspects of CRM incl. Customer Service Automation Chap. 5 and Appendix B (Gupta & Lehman) Article 2: Forbes et al. (2005) Operational CRM: Personalization and Customization Operational CRM: Automation Salesforce and Campaign Management CRM Implementation Chap. 6 (Gupta & Lehman) Operational CRM: Multi-Channel Integration Partner Relationship Management Strategic, Ethical and Legal Issues in CRM Articles 3 and 4: Bendoly, et al. (2005); Holmstrom & Henfridsson (2002). Strategic CRM and Business Strategy Organizational Issues Impacting CRM Business Intelligence and CRM Chap. 4 (Gupta & Lehman) Articles 5 and 6: Ryals (2005); Danna & Gandy (2002) Requirements Due Prepare Granny s Goodies Case for Class Discussion Expert Presentations (Group A) Expert Presentations (Group B) CLV Report (Please bring 2 copies to class) CRM Plan (Submit Electronically on or before March. 5)
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