THE UNIVERSITY OF TEXAS AT DALLAS. MKT : Product Management
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1 THE UNIVERSITY OF TEXAS AT DALLAS MKT : Product Management Contact Information Spring 2011 Dr. Norris Bruce TA: Juncai Jiang Weds. 7-9:45 PM Office: SOM Phone: Classroom: SOM Phone: Office Hours: Weds. 4-7PM and by appointment Course Background and Objectives The course's primary focus is on the development of new products. It will provide coverage of the various product decisions, critical discussion of the research needed as input to these decisions, and the contributions of management and behavioral sciences to the development process. Topics covered include: new product strategy, market definition and entry strategy, growth and diffusion of new products and technologies, consumer measurement, product positioning, advertising and product testing, pretest market forecasting, and test marketing. The course will be relevant to students who expect to work directly in brand or product management as well as those interested in general management and consulting. By the end of this course, you should have some knowledge of: 1. a process for managing new product activity within the firm, 2. how customer needs are measured and translated into product concepts, 3. strategies for testing and improving new products, and 4. organizational issues that can affect the pace and success of new product development. These objectives will be achieved through a combination of assigned readings, lectures, case discussions, and a group term project. Prerequisites: The satisfactory completion of MKT6301 is a fundamental prerequisite for this course. While MKT6309 (marketing research) is not a prerequisite, it provides essential material for those with career interests in new product management.
2 Text and Course Materials Urban and Hauser (U&H), Design and Marketing of New Products, Prentice-Hall, 1993 Harvard Cases: Case Packets for MKT6329 Grading and Course Requirements A) Case Briefs (30%) Case write-ups: These will be type-written answers to specific case preparation questions shown below. Your report should be no more than 3 pages of text. Exhibits are not included in the page limit, but should be used sparingly. B) Homework Assignments (15%) Questions covering materials covered in assigned readings and class: Conjoint and Launch Tracking Exercises C) Class Participation (15%) Participation and discussion are imperative to foster a collaborative learning environment. Without participation, the learning experience is significantly compromised. In addition, participation also enables you to develop the skills needed to present and defend your ideas as well as to see contrasting points of views. Class participation grades will account for quality and quantity, as well as a student s ability to move the analysis and understanding forward. D) Group Term Project (40%) A key feature of the course is a group (self-selected teams of 3-4) project requiring the development of a product concept that serves a current unmet consumer need. The focus will be on development and refinement of the new product concept. The course provides generic background for identifying, understanding and responding to customer needs; you have the opportunity to tailor the course to your interest by your chosen product. Thus, the course can be a consumer product, industrial product, service or even non-profit course depending upon the project. Project details to follow. Project Focus: Identify a potentially successful new product/service for a clearly defined target audience. The product concept you propose should be validated. The Final Report (approximately 15 pages single spaced, excluding Appendices and eferences) should include: Executive Summary
3 Strategic Business Objective Opportunity Identification (Market Definition) - Market Segmentation, buyer preferences, suppliers - Growth Potential, Market Size, Life Cycle - Competitive products/solutions Product Design: - Customer Needs Evaluation - Product Positioning - Segmentation and Targeting - Product Concept - Sales forecasting, Marketing Mix Appendices References
4 MKT Course Schedule Week 1 (January 12) - Introduction to the Course Introduction: New Product Development Process Week 2 (January 19) Market Definition Reading: 1) Chapter 4 U&H - pp ) Market Segmentation, Target Selection and Positioning: CoursePack, pp37-41 Case: Mary Kay Cosmetics Preparation Questions: Mary Kay Cosmetics. 1. Why has MKC not been successful as Avon in penetrating international markets? 2. What criteria should MKC use in deciding how to prioritize foreign market entry opportunities? 3. What are the arguments for and against entering (a) Japan (b) China? 4. What marketing mix recommendations would you make to Dandurand if she decides to enter (a) Japan (b) China? Week 3 (January 26) - Entry Strategies Reading: Chapter 4 U&H-pp78-90 Case: Optical Distortion (A) Preparation Questions: Optical Distortion Case (Hand in 3-page report) 1. What characteristics of the ODI contact lens are likely to make it appealing/unappealing to different types of chicken farmers? 2. In what geographic areas should ODI focus its efforts? 3. On what market segments (in addition to geographic) should ODI focus its efforts? 4. What Price policy should ODI adopt on entry? Why? 5. What s a realistic goal for ODI by 1978? Week 4 (February 2) Preference Evaluation Reading: Chapters 10 in U&H Case: Clark Material Handling Group-Overseas: Brazilian Product Strategy (A) Preparation Questions: Clark Case (A) 1. Make sure you understand how market simulation analysis works. In particular: - How are the market attributes and levels are determined? - How do the choices between alternative lift trucks get translated into utility measures? - How are attribute utilities converted to product utilities? How is market share predicted? 2. What are the major managerial issues facing Mr. Richards in developing a marketing strategy? 3. What are the major steps in the research process? How well did they address the managerial issues you identified? 4. What did you learn from the research?
5 5. Evaluate the John Morton Research. Why was Sr. Santos so upset? 6. How would access to the model be beneficial to Mr. Richards and/or Santos? Week 5 (February 9) Target Market Selection and Positioning Project Meetings Reading: Chapters 11 in U&H Case: The New Beetle Preparation Questions: The Beetle Case. (Hand in 3-page report) 1. What is the appeal of The New Beetle? 2. Describe the meaning of the VW Brand. 3. Why is the positioning decision termed mission impossible? 4. What are the advantages and disadvantages of the different positioning options? 5. How would the pricing and media selection choices be affected by the positioning of the car? Week 6 (February 16) - Pretest Market Forecasting Project Meetings Reading: Chapters 12 in U&H Case: Clark Material Handling Group-Overseas: Brazilian Product Strategy (B) Preparation Questions: Clark (B) Case 1. How will Hyster, Yale, and Madal respond to the possible changes in Clark s product line policy? 2. What effect will a large Japanese entry into the market have on the attractiveness of the Norton Recommendations? 3. What product line strategy would you recommend for Clark? Week 7 (February 23) - Pretest Market Forecasting Reading: Chapters 15, 16 in U&H Case: Johnson Wax (A) Preparation Questions: Johnson Wax (A) Case and HW1. 1. What is the nature of competition in the instant conditioner market? 2. What are the roles of: product, Advertising copy, advertising budget, price in determining sales volume in the market? How well does assessor measure the impact of each of these marketing program elements? 3. Sherman wants to know why did I only get about half the share point I need? What would you tell him? 4. Does the assessor methodology seem an appropriate research tool given Sherman s situation? 5. What should Sherman do now? Week 8 (March 2) Test Marketing Project Meetings Reading: Chapters 17 in U&H -pp Case: GD Searle & Co. Sweet and Low Calorie Sweetener (A)
6 Preparation Questions: GD Searle Case 1. What are the important managerial issues related to the introduction of Equal? 2. Evaluate the research design. How well does it address the managerial issues? Discuss the decision to proceed with rollout so early in the test market. 3. Watson s decision to change the price midway through the test interfered with the statistical design of the test, but it also provided us more price point to consider. What would be a "good" price for Equal? Week 9 (March 9) - Launch Planning and Tracking Project Meetings Reading: Chapters 18 in U&H -pp Case: KONE: The MonoSpace Launch in Germany. Preparation Questions: Information Resources Case 1. How important is this product Launch for Kone? What are the implications of the success or failure for the MonoSpace launch? 2. What can be learned from the test market and market launches in the other three countries? How does the German Market differ from the other markets? What are the implications of these differences for transferring experience gained in the other markets? 3. How do you expect competitors to react to your launch plan? How do you plan to manage competitors reactions 4. What key weaknesses in KONE s current capabilities will need to be managed to ensure the success of the product launch? Week 10 (March 23) Project: Concept Demo Week 11 (March 30) - Organizational Issues (I) Reading: Chapter 20 in U&H Case: Greeley Hard Copy: Portable Scanner Initiative (A) Preparation Questions: Greeley Case (Hand in 3-page report) 1. Describe the HP organizational Culture. What are some implications of this culture for developing new innovations? What is evidence of R&D s dominance in HP? 2. Compare the markets for Portable and Flatbed scanners. 3. What are the implications of each of these markets on Organizational forms and Reward Systems? In other words, does success in these markets require different ways organizing work and compensating employees. 4. Describe the evolution of the portable project? What changed along the way? Why? Week 12 (April 6) - Organizational Issues (II) Reading: Chapter 20 in U&H Case: Lucent Technologies Optical Networking Group Preparation Questions: Lucent Case (Hand in 3-page report).
7 1. From the point of view of the specific NVG enterprise and their founders, assess the benefits and also the problems or tensions associated with starting up within a large company. Have these ventures encountered the typical dilemmas of newstream versus mainstreams that occurred in the last wave of corporate venturing? 2. What, if anything, can Socolof and the NVG do to increase the advantages and minimize the tensions, to ensure speedier development of ventures with Lucent? 3. What would Steve Socolof recommend to upper management about the next phase of the New Ventures Group? What has the NVG done well, what has it done poorly? In light of the problems at Lucent, should the NVG continue in its presents form, change its form, or disband? Week 13 (April 13) - Life Cycles; Marketing Mix Reading: Chapter 19 in U&H -pp Case: Gateway: Moving Beyond the Box Preparation Questions: Gateway Case and Hw2 1. What are the risks associated with the Country Stores and the Your Ware program? 2. What was the old Gateway good at? What is the new Gateway trying to be good at? 3. The case quotes Gateway s CEO thus: It seems every company in the word is trying to turn itself into a services provider these days, and everyone thinks they can do it because they believe they re a relationship company. What makes Gateway think it will succeed where other have failed? 4. Do you agree with Gateway s strategy? Week 14 (April 20) - Life Cycles; Marketing Mix Group Project Presentations Reading: Chapters 19 in U&H-pp Case: The Brita Products Co. Preparation Questions: Brita Case (Hand in 3-page report) 1. To what do you attribute Brita s success? 2. What marketing assets has Clorox acquired in these years of vigorous growth, and what is the best use to which the assets can be deployed? 3. What are the prospects for filter sales? What are the prospects for faucet-mounted system? Which would you favor? 4. How will you defend against the new competitors? Finals - SOM :45pm Group Project Presentations (April 27, Week 15) Final Report Due (Tu. May 11, SOM 3.220). Supplemental Readings and Texts: I have compiled a list of sources for students who want more breadth, or those who are considering a career in Product Management:
8 1. Robert J. Dolan, Managing the New Product Development Process, Addison-Wesley. 2. Edgar A. Pessemier, Product Management, WHey/Hamilton. 3. Robert Rothberg, Corporate Strategy and Product Innovation, Free Press, 2nd edition. 4. Yoram J. Wind, Product Policy, Addison-Wesley. 5. Robert G. Cooper, Winning at New Products, Addison-Wesley. 6. Thomas D. Kuezmarski, Managing New Products, Prentice-Hall, 2nd edition. 7. Clarke, Marketing Analysis and Decision Making, Boyd and Frazer Publishing Company.
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