FOUNDATIONS OF MARKETING COURSE OUTLINE Course Website: http://faculty.insead.edu/nam/fom PROFESSOR COURSE ADMINISTRATOR Myungwoo NAM Office: 530 Telephone: +65 6799 5390 Email: myungwoo.nam@insead.edu Saeedah MAGDOM Office: 458 Telephone: +65 6799 5108 Email: saeedah.magdom@insead.edu
COURSE OBJECTIVES Marketing is the business function that deals with customers unfulfilled needs and wants. The role of marketing management in organizations is to identify and measure these needs, determine which target consumers the business can serve, decide on the appropriate positioning of the products and services, and determine the optimal product/service features, price, communications and distribution. Successful marketing strategies integrate the objectives and resources of the organization with the needs and opportunities of the marketplace better than competitors that is, they create, deliver, and capture more customer value than their competitors. The objectives of this course are to introduce you to the substantive and procedural aspects of marketing management, and to sharpen your skills for critical analytical thinking and effective communication. Specifically my goals are: 1. To develop your marketing decision-making skills. This is the primary objective of the course. You should leave the course with a well-developed ability to analyze the marketing and business environment in which an organization is operating, to determine the major opportunities and problems facing the organization, to develop a creative set of alternative marketing strategies, to select the most appropriate one for the organization, and to convert the chosen strategic alternative into an actionable plan. 2. To understand and apply major marketing concepts, such as market segmentation, positioning, customer satisfaction, and the product life cycle. 3. To improve your familiarity with a range of institutional marketing knowledge, practice, and terminology. By the end of the course, you should be able to converse intelligently with managers and understand the marketing situation in a variety of organizational environments. 4. To provide you with a forum for presenting and defending your recommendations, and for critically examining and discussing the recommendations of others.
COURSE FORMAT Studies Successful marketing managers must master both quantitative and qualitative skills. One way to get valuable exposure to, and practice in developing both marketing skills is through case analysis. s are a very effective means for learning diagnostic skills and introducing semblance of the real world into a manageable framework. Each case is chosen based on its ability to illustrate issues important to the marketing framework. While some of the cases may appear somewhat removed from the specific problems pertinent to your particular job and/or industry experience and interests, the lessons to be learned from the cases are generally universally relevant and transcend particular situations. In order to get the maximum benefit from our discussion of cases, it is essential that you thoroughly prepare the case for each class. This requires much more than simply reading the case, or having answers to the questions posed on the assignment sheet. For each case, you should have done a comprehensive analysis and arrived at a personal decision as to what strategy the particular organization should adopt. A general format to follow in your case analysis is: 1. Identify the underlying marketing problems, which the organization is facing; use the assignment questions as a guide but do not limit your analysis to these issues. 2. Generate alternative marketing actions (including their pros and cons) and make a decision about what should be done before you come to class. Do not try to guess what the right answer is. What matters is how well thought out the arguments behind your decisions are. 3. Be prepared to discuss your analysis and decisions with other students in class in a constructive manner; merely having a single observation or repeating case facts is not enough. Asking the right questions of each other is as important as coming up with answers. Ideally, the instructor takes on the role of a discussion facilitator, not of an expert. A typical question at the end of a case discussion is: So what is the answer? In case studies, as in the real world, there is no unique answer! What is important is that you know what you would have done in that specific marketing situation, and why, and that you begin to construct your own framework for approaching more general marketing problems. One last piece of advice: Do not attempt to find out what happened to the company or business as a basis for making your decision. Do not access case information from the Web, press, or other students. It is important to the learning process that you stick to the information in the case. If you have personal knowledge relevant to a case due to previous work experience please let me know before class so that I can incorporate your expertise into our class discussion. At no time should papers or notes from previous or concurrent marketing courses be used. Such use constitutes a violation of the INSEAD Honor Code. These criteria apply to both in-class and written case analyses. 1
COURSE FORMAT Lecture/Discussions Throughout the course there will be a series of lectures/discussions, either a full class or following a case discussion. These lecture/discussions will summarize our progress to date, emphasize key points in the course, and organize and complement materials covered in the cases and readings. The principal objective of these discussions is to examine completely all aspects of a marketing situation: facts, suppositions, alternatives, and final action and to help develop frameworks and approaches for marketing decision-making. EVALUATION During the term, the students (working individually and in groups) will be evaluated based on their performance in each of the following activities: Class Participation 15% Group Work 25% Final Examination 60% Note that the overall grade is based on individual performance (class participation and final examination) and group performance (exercises). The class discussion provides you with the opportunity to test your ideas and analyses against those of the other participants in the class. The weight assigned Class Participation reflects its critical importance to the learning of everyone in the class. While evaluation on this component is necessarily subjective, it is not hard to identify key characteristics of effective participators. Some of the criteria for evaluating effective class participation include: 1. Is the participant prepared? Do comments show evidence of analysis of the case? Do comments add to our understanding of the situation? Does the participant go beyond simple repetition of case facts without analysis and conclusions? Do comments show an understanding of theories, concepts, and analytical devices presented in class lectures or reading materials? 2. Is the participant a good listener? Are the points made relevant to the discussion? Are they linked to the comments of others? Is the participant willing to interact with other class members? 3. Is the participant an effective communicator? Are concepts presented in a concise and convincing fashion? Keep in mind that your grade for class participation is not simply a function of the amount of air time you take up. In general, I will evaluate you on how well you respond to my questions and on how effectively you take into account the comments and analyses of your classmates. 2
Group Write-Up DUE DATE: FRIDAY, 30 March, 2007 before class Häagen-Dazs X The case and details of the assignment will be distributed on 16 March. FINAL EXAMINATION The final examination will consist of a case analysis (guided by discussion questions, similar to the ones we have analyzed throughout the term). It is designed to test how well you can apply the knowledge and skills learned in the course. The same criteria used to assess the written case assignment will be used to judge your test performance. Thus the best way to prepare for the exam is to conscientiously study each of the cases throughout the term, do the exercises, read the assigned readings, and attend the classes. The exam will be in class, open book. REQUIRED COURSE MATERIALS Packet of s and Readings Kotler, Philip and Keller, Kevin (2006), Marketing Management, Prentice Hall, Upper Saddle River, NJ: Prentice Hall. If you have a recent edition (10 th or 11 th edition) of the book, you can probably get by without buying the newer one. 3
SESSIONS OVERVIEW SECTION 1: THE MARKETING FRAMEWORK Sessions 1 & 2 Monday, 12 March What is Marketing? Framework for Marketing Analysis QB House SECTION 2: ANALYSIS OF MARKETING OPPORTUNITY Sessions 3 Friday, 16 March Customer Analysis I Black & Decker Session 4 Monday, 19 March Customer Analysis II Skoda Auto (A) SECTION 3: FUNDAMENTALS OF MARKETING STRATEGY S T P Session 5 Wednesday, 21 March Segmentation & Targeting Vermont Teddy Bear Session 6 Monday, 26 March Positioning Mini s and Lecture Session 7 Wednesday, 28 March Branding Airpork Session 8 Friday, 30 March Formulate a Marketing Strategy Ford Ka (group assignment due) SECTION 4: MARKETING MIX DECISIONS THE 4 P s Session 9 Monday, 2 April Product Decisions Colgate-Palmolive Sessions 10 & 11 Wednesday, 4 April Advertising Decisions Intel Session 12 Monday, 9 April Pricing Decisions Kodak Funtime Session 13 Wednesday, 11 April Guest Speaker Suryakant Pandey Session 14 Wednesday, 18 April Channel Decisions Invisalign SECTION 5: WRAP-UP Sessions 15 & 16 Friday, 20 April Pulling it together and Wrap-up Alpha Corporation 4
OUTLINE OF CLASS ASSIGNMENTS SESSIONS 1 & 2: WHAT IS MARKETING AND A FRAMEWORK FOR MARKETING ANALYSIS QB House 1. What is QB House Just Cut s value proposition? 2. What should be Konishi s strategy for growth? Within Japan? Outside Japan? S Kotler and Keller Skim Chapters 1 and 2. Levitt, T. (1975), Marketing Myopia, Harvard Business Review. SESSIONS 3: CUSTOMER ANALYSIS I CONSUMER PERCEPTIONS Black & Decker 1. How do you explain the considerably smaller B&D market share in the Professional- Tradesmen segment of the market as compared with its leadership or strength position in the other segments? 2. Write a marketing plan for B&D power tool division using the strategic marketing framework presented in session 2. Kotler and Keller Chapter 6. 5
SESSION 4: CUSTOMER ANALYSIS II CONSUMER DECISION MAKING Skoda Auto (A) 1. What steps did Skoda Auto undertake in re-building their brand? 2. How do these actions help overcome the consumer perception problem that Skoda faces? 3. What is the cause of the consumer problem in the UK market? 4. How would you address the consumer problem in the UK market? Gouillard, F. J. & Sturdivant, F. D. (1994) Spend a Day in the Life of Your Customers, Harvard Business Review. SESSION 5: SEGMENTATION & TARGETING Vermont Teddy Bear Identify the key problem for Calyx & Corolla and propose a solution. Use the case analysis template in the "Segmentation and Targeing Analysis" reading as a guide. Suggest how the firm should focus its resources e.g., which customers it should target and why. Kotler & Keller P, Chapter 8 (skim). Chernev (2006), "Segmentation and Targeting Analysis," Kellogg School of Management Note. 6
SESSION 6: POSITIONING Mini cases and Lecture Kotler and Keller Chapter 10 (skim) Tybout, A. M. and B. Sternthal (2001), Brand Positioning, Kellogg on Marketing. Gouillard F. J. & Sturdivant F. D. (1997), Discovering New Points of Differentiation, Harvard Business Review. SESSION 7: BRANDING Airpork 1. What are the drivers of Airpork s brand equity? 2. Are there benefits unique to Airpork? 3. How should Airpork build its equity? Kotler and Keller Chapter 9 Keller, K. L. (2000) The Brand Report Card, Harvard Business Review. 7
SESSION 8: FORMULATING A MARKETING STRATEGY Ford Ka: Breaking New Ground in the Small Car Market : 1. Why did Ford develop the Ford Ka? Is the existing segmentation approach still applicable? 2. What segmentation approach do you recommend and who is your target buyer? Why? 3. What potential implementation problems do you expect with your recommended approach? How can you overcome them? Note that Häagen-Dazs X case analysis is due at the beginning of this session. The analysis is worth 25% of the course grades. SESSION 9: PRODUCT DECISIONS Colgate-Palmolive Company: The Precision Toothbrush 1. What changes are occurring in the toothpaste category? Assess Colgate-Palmolive s competitive position. 2. How is the toothbrush market segmented? Compare consumer behaviour for toothbrushes and toothpastes. 3. What are the arguments for launching Precision as (a) a niche product and (b) a main stream product? Kotler and Keller Chapter 12. Quelch, J. A. & Kenny, D., (1994) Extend Profits, Not Product Lines, Harvard Business Review. 8
SESSIONS 10 & 11: ADVERTISING DECISIONS Intel The CD-ROM will be handed out in class. Kotler and Keller Chapters 17 & 18 (skim). Joachimsthaler, E. & Aaker, D. A., (1997) Building Brands without Mass Media, Harvard Business Review. Dolan R. J. (2000) Integrated Marketing Communications, HBS 9-599-087. SESSION 12: PRICING DECISIONS Kodak Funtime 4. What are the reasons behind Kodak s market share loss? What would happen, if Kodak maintained the status quo? 5. What should Kodak s objectives be in terms of market share, profitability, and brand equity? 6. How do you evaluate the proposed Funtime marketing plan in light of consumer behavior? The Kodak Funtime case relies heavily on data. Please come prepared with break-even analyses to evaluate the four possible options that Kodak is considering, plus any other options you believe are important and relevant. Kotler and Keller Chapter 14. Dolan, R. J., Note on Low-Tech Marketing Math, HBS 9-599-011. Anderson, E. & Simester, D. (2003), Mind your Pricing Cues, Harvard Business Review. 9
SESSION 13: GUEST LECTURE SESSION Suryakant Pandey (Kraft) SESSION 14: CHANNEL DECISIONS Invisalign 1. Evaluate Invisalign s strategy (targeting and value proposition) and marketing mix (product, brand, promotion, distribution). 2. What is the key problem for Invisalign? How would you solve this problem? Kotler and Keller Chapters 15. Coughlan, A. T. and L. Stern (2001), Marketing Channel Design and Management, Kellogg on Marketing. SESSIONS 15 & 16: PULLING IT ALL TOGETHER AND WRAP UP Alpha Corporation 1. How would you segment the Projection TV market? 2. Which segment should Alpha target? 3. How should Alpha position its Projection TV to this selected target? 4. What would be the marketing mix with which this targeting positioning is implemented? Dolan, R. J., Note on Marketing Strategy, HBS 9-598-061. Ward, S., Light L. & Goldstine J. (1999), What High-Tech Managers Need to Know about Brands, Harvard Business Review. 10
INSTRUCTOR S BIOGRAPHY Myungwoo Nam is Assistant Professor of Marketing at INSEAD. His research focuses on consumer judgment and information processing. He is a member of the American Marketing Association, Association for Consumer Research, and the Institute for Operations Research and the Management Sciences. Professor Nam holds a Ph.D. in Marketing from the Kellogg School of Management at Northwestern University, an M.S. in Statistics from Stanford University, and a B.A. in Business from Yonsei University in Seoul. 11