Download foundations of marketing

Foundations of Marketing
P2 Mar-Apr 2007
MBA Programme
FOUNDATIONS OF MARKETING
COURSE OUTLINE
Course Website:
http://faculty.insead.edu/nam/fom
PROFESSOR
COURSE ADMINISTRATOR
Myungwoo NAM
Office: 530
Saeedah MAGDOM
Office: 458
Telephone: +65 6799 5390
Email: [email protected]
Telephone: +65 6799 5108
Email: [email protected]
Foundations of Marketing
P2 Mar-Apr 2007
MBA Programme
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
recommendations of others.
critically
examining
and
discussing
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Foundations of Marketing
P2 Mar-Apr 2007
MBA Programme
COURSE FORMAT – Case 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. Cases 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.
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Foundations of Marketing
P2 Mar-Apr 2007
MBA Programme
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
Group Work
Final Examination
15%
25%
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.
2.
3.
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?
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?
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.
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Foundations of Marketing
P2 Mar-Apr 2007
MBA Programme
Group Write-Up
DUE DATE: FRIDAY, 30 March, 2007 before class
CASE
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 Cases and Readings
•
Kotler, Philip and Keller, Kevin (2006), Marketing Management, Prentice Hall,
Upper Saddle River, NJ: Prentice Hall. If you have a recent edition (10th or 11th
edition) of the book, you can probably get by without buying the newer one.
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Foundations of Marketing
P2 Mar-Apr 2007
MBA Programme
SESSIONS OVERVIEW
SECTION 1: THE MARKETING FRAMEWORK
Monday,
What is Marketing?
Case
12 March
Framework for Marketing Analysis
QB House
Sessions 1 & 2
SECTION 2: ANALYSIS OF MARKETING OPPORTUNITY
Friday,
Sessions 3
Case
Customer Analysis I
16 March
Black & Decker
Monday,
Session 4
Case
Customer Analysis II
19 March
Skoda Auto (A)
SECTION 3: FUNDAMENTALS OF MARKETING STRATEGY – S – T – P
Wednesday,
Session 5
Case
Segmentation & Targeting
21 March
Vermont Teddy Bear
Monday,
Session 6
Positioning
Mini Cases and Lecture
26 March
Session 7
Wednesday,
Case
Branding
28 March
Airpork
Case
Friday,
Session 8
Formulate a Marketing Strategy
Ford Ka
30 March
(group assignment due)
SECTION 4: MARKETING MIX DECISIONS – THE 4 P’s
Monday,
Session 9
Case
Product Decisions
2 April
Colgate-Palmolive
Wednesday,
Sessions 10 & 11
Case
Advertising Decisions
4 April
Intel
Monday,
Session 12
Case
Pricing Decisions
9 April
Kodak Funtime
Wednesday,
Session 13
Guest Speaker
Suryakant Pandey
11 April
Wednesday,
Session 14
Case
Channel Decisions
18 April
Invisalign
SECTION 5: WRAP-UP
Friday,
Sessions 15 & 16
Case
Pulling it together and Wrap-up
20 April
Alpha Corporation
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Foundations of Marketing
P2 Mar-Apr 2007
MBA Programme
OUTLINE OF CLASS ASSIGNMENTS
SESSIONS 1 & 2:
CASE
WHAT IS MARKETING AND A FRAMEWORK FOR
MARKETING ANALYSIS
QB House
DISCUSSION QUESTIONS
1. What is QB House – Just Cut’s value proposition?
2. What should be Konishi’s strategy for growth?
• Within Japan?
• Outside Japan?
ASSIGNED READINGS
Kotler and Keller – Skim Chapters 1 and 2.
Levitt, T. (1975), “Marketing Myopia,” Harvard Business Review.
SESSIONS 3:
CASE
CUSTOMER ANALYSIS I – CONSUMER PERCEPTIONS
Black & Decker
DISCUSSION QUESTIONS
1. How do you explain the considerably smaller B&D market share in the ProfessionalTradesmen 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.
ASSIGNED READING
Kotler and Keller – Chapter 6.
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Foundations of Marketing
P2 Mar-Apr 2007
MBA Programme
SESSION 4:
CASE
CUSTOMER ANALYSIS II – CONSUMER DECISION
MAKING
Skoda Auto (A)
DISCUSSION QUESTIONS
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?
ASSIGNED READING
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
CASE
DISCUSSION QUESTIONS
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.
ASSIGNED READING
Kotler & Keller P, Chapter 8 (skim).
Chernev (2006), "Segmentation and Targeting Analysis," Kellogg School of
Management Note.
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Foundations of Marketing
P2 Mar-Apr 2007
MBA Programme
SESSION 6:
CASE
POSITIONING
Mini cases and Lecture
ASSIGNED READING
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:
CASE
BRANDING
Airpork
DISCUSSION QUESTIONS
1. What are the drivers of Airpork’s brand equity?
2. Are there benefits unique to Airpork?
3. How should Airpork build its equity?
ASSIGNED READING
Kotler and Keller – Chapter 9
Keller, K. L. (2000) “The Brand Report Card,” Harvard Business Review.
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Foundations of Marketing
P2 Mar-Apr 2007
MBA Programme
SESSION 8:
CASE
FORMULATING A MARKETING STRATEGY
Ford Ka: Breaking New Ground in the Small Car Market
DISCUSSION QUESTIONS:
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:
CASE
PRODUCT DECISIONS
Colgate-Palmolive Company: The Precision Toothbrush
DISCUSSION QUESTIONS
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?
ASSIGNED READING
Kotler and Keller – Chapter 12.
Quelch, J. A. & Kenny, D., (1994) “Extend Profits, Not Product Lines,” Harvard Business
Review.
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Foundations of Marketing
P2 Mar-Apr 2007
MBA Programme
SESSIONS 10 & 11: ADVERTISING DECISIONS
CASE
Intel
The CD-ROM will be handed out in class.
ASSIGNED READING
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:
CASE
PRICING DECISIONS
Kodak Funtime
DISCUSSION QUESTIONS
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.
ASSIGNED READING
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.
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Foundations of Marketing
P2 Mar-Apr 2007
MBA Programme
SESSION 13:
GUEST LECTURE SESSION
Suryakant Pandey (Kraft)
SESSION 14:
CASE
CHANNEL DECISIONS
Invisalign
DISCUSSION QUESTIONS
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?
ASSIGNED READING
Kotler and Keller – Chapters 15.
Coughlan, A. T. and L. Stern (2001), “Marketing Channel Design and Management,”
Kellogg on Marketing.
SESSIONS 15 & 16:
CASE
PULLING IT ALL TOGETHER AND WRAP UP
Alpha Corporation
DISCUSSION QUESTIONS
1.
2.
3.
4.
How would you segment the Projection TV market?
Which segment should Alpha target?
How should Alpha position its Projection TV to this selected target?
What would be the marketing mix with which this targeting positioning is
implemented?
ASSIGNED READING
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.
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Foundations of Marketing
P2 Mar-Apr 2007
MBA Programme
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.
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