MKT 504 MARKETING Iowa State University MBA Core Spring 2010

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MKT 504 MARKETING
Iowa State University MBA Core
Spring 2010
Instructor: Dr. John Wong
3153 Gerdin Business Building, College of Business
Office Hours: Tuesdays & Thursdays 10-11AM or by appointment
Email: [email protected]
This course is a survey the scope and nature of marketing and marketing management at the
beginning of the twenty-first century. It will adopt a global orientation to the understanding and
practice of marketing. The objectives of the course is to enable students to become familiar with
the core concepts of marketing and to develop the skills to make marketing related managerial
decisions in a global marketplace. To achieve this objective, this course will address marketing
strategy issues facing decision makers in the manufacturing and service sectors as well as in the
non-profit organizations. Among the issues this course will focus on will be formulation of
product-market strategy; budgeting, financial, production, and human resources; developing
reformulating and recovery strategies; and ethics and social responsibility. For this class, a
broader view on strategic and cross-functional relationships with a global perspective will be
taken. Some of the key relationships we will examine are the relationship among corporate,
business-level and marketing strategies; relationships between marketing strategy and the
strategic environment; and relationships between marketing and other functional areas. We will
also examine the impact of the current global recession as well as the fast emerging e-commerce
and the Internet on marketing practice.
COURSE MATERIAL:
REQUIRED TEXTS:
A Framework for Marketing Management by Philip Kotler and Kevin L Keller (Pearson-Prentice
Hall, 4th Edition, 2009)
Marketing Mistakes and Successes by Robert F Hartley (11th Edition, Wiley 2009)
The Culture Code by Clotaire Rapaille, (Broadway Books 2006)
Assigned readings from Harvard Business Review
ADDITIONAL READING MATERIAL: Additional reading/study/case material provided and
recommended by the instructor will become the responsibility of the students.
RECOMMENDED BOOKS:
GLOBALITY: Competing with Everyone from Everywhere for Everything by Harold L. Sirkin,
James W. Hemerling, and Arindam K. Battachrya (Business Plus: 2008)
The Venturesome Economy: How Innovation Sustains Prosperity in a More Connected World by
MKT 504 – Spring 2010
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Amar Bidhe (Princeton University Press: 2008)
Fortune at the Bottom of the Pyramid by C. K. Prahalad (Pearson Education: 2006)
Caught in the Middle: America’s Heartland in the Age of Globalism by Richard Longworth
(Bloomsbury, USA: 2007
Redefining Global Strategy: Crossing Borders in a World Where Differences Still Matter by
Ghemawat Pankaj (Harvard Business School Press: 2007)
COURSE REQUIREMENTS:
You are responsible for all prescribed reading assignments from the text and other additional
material provided by the instructor. Students are expected to have assigned material read prior to
each class.
Course Format:
The course will be presented using lectures, case analysis, video-based in-class discussions, and
interaction with visiting executives with extensive marketing experience. To fully benefit from
the course, students are expected to actively participate in class discussions on the topics
designated for the period. Class participation will be included in the overall grade for this course.
Class Policies:
1. Attendance at all classes is expected. Students are expected to be fully prepared for each class
and have completed in advance the required readings and cases corresponding to class dates.
2. If you have any questions or concerns about the class material, cases, grades, etc., please see
me as soon as possible.
3. Courtesy requires that students will notify the instructor of class dates where they know
ahead when they will be absent. Similarly, please notify the instructor if you are ill or unable
to attend class for any reason.
4. University honor system: Students found guilty of academic dishonesty (e.g., cheating on
tests, plagiarism, bribery, misrepresentation, etc.) will receive a failing grade for the
applicable assignment/test. In addition, academic honesty may lead to suspension, conduct
probation, or reprimand by the university.
5. Students are responsible for any changes in class schedule, assignments, etc., announced in
class
6. Students with disabilities needing particular accommodations for the class should make this
known to the instructor as soon as possible.
Class Requirements:
1.
ASSIGNMENTS: Students are to have read the prescribed material before each class
and be prepared to participate in discussion on key issues identified for that class.
Besides reading the assigned chapters in the prescribed text, a set of lecture notes and
other material will be accessible in the course website.
(a) Cases: Thirteen (13) cases are assigned for this course. Please study each case
thoroughly and come prepared to participate in class case discussions. A random
drawing will be made to identify a student to lead off in each of the case
discussions. Your preparedness will count towards your grade in class
participation.
MKT 504 – Spring 2010
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(b) Reflective essays: Professor Henry Mintzberg (McGill) finds fault with the
emphasis on frenetic case studies that encourage students to come up with rapid
answers based on meager data. He criticizes them for their concentration on dry
analysis. Synthesis, not analysis, argues Mintzberg, “is the very essence of
management”. In this course, as we encounter a wide array of issues encountered
by marketing managers, each student is encouraged to synthesize these ideas into
some coherent structure in order to better understand what marketing is all about.
In an attempt to achieve this, students are required to write two reflective essays
(see instructions on pages 8 and 9)
2. CLASS PARTICIPATION: Because of the nature of a seminar-orientation of the course
where students are expected to active engage in discussion of the marketing issues assigned
for the day, class participation is a very important part of the learning process. Participation is
expected not only in the form of class attendance, but also in the sharing of ideas, thoughtful
questions, and dialogue with other class members, the instructor, and guest lecturers.
Note: Being in class is not enough -- you must also actively participate to do well on this
portion of your grade.
Grading:
Final Examination
Reflective essays @ 50
Class participation
Total
Points
150
100
50
300
A = 94%; A- = 90%; B+ = 87%; B = 84%; B- = 80%; C+ = 77%; C = 84%; C- = 70%;
D+ = 67%; D = 64%; D- = 60%; F < 60%
MKT 504 – Spring 2010
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MKT 504 MARKETING
Iowa State University MBA Core
Spring 2010
Tentative Schedule
SCHEDULE AND ASSIGNMENTS
Week 1 – Course introduction – Marketing: the historical perspective and context
During the introductory session, we will first lay out the course’s goals, structure,
and expectations for both students and instructor.
Then we will examine the broader issues of marketing in the context of the twenty-first century.
Topics we will cover in the lecture and discussion include the following:
• The case for marketing – what is marketing? Why marketing?
• An overview of the scope and nature of marketing
• The global marketplace and marketing practice
• Globalization – the flat world
• McDonaldization
Background:
Kotler and Keller: Chapters 1, 2
Marketing in the context of global competitiveness – a brief historical perspective
What Business are you in? The writings of Ted Levitt
The Fortune at the Bottom of the Pyramid -- C.K. Prahalad and Stuart L. Hart
McDonalidzation – the race for efficiency and the standardization of everything
It's a Flat World, After All – Thomas Friedman
---------Week 2 – The customer side of the marketing equation
We now launch into what can be considered the key to the practice of marketing – a
understanding of the nature of consumption process and connecting with the customer. We will
examine what drives consumers and how they interact in the marketplace -- access and process
information and make purchase decisions. We will also explore the nature of the business market.
From the marketer’s perspective, we will examine how organizations create value and satisfaction
for their customers.
Topics we will cover in the lecture and discussion include the following:
• Social and psychological factors that influence consumer behavior
• How consumers and managers make purchase decision
• Societal, technological trends that shape consumer behavior
• Customer lifetime value
Please read the following material and be prepared for class.
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Reading material for Week 2:
Kotler and Keller: Chapters 3, 4, 5
Rapaille: Introduction, 1, 2, 3
Hartley: McDonald’s Rebirth (8), Harley-Davidson – creating brand mystique (9), Borden –
mismanaging a strong brand
-------WEEK 3 – Foundation of marketing strategy and branding
In Week 3, we explore the building blocks of marketing strategy and focus in on one area of
marketing strategy – that of building and managing brands. In a highly competitive environment
much of competition has centered on lowering costs. One viable alternative tool for marketers
succeed is to create real value to consumers by building and maintaining strong brands. Building
a new brand is a very costly undertaking and typically can be achieved over an extended period of
time. However, there are some exceptions to the rule. Google and Amaozon.com come to mind.
Global brands from emerging economies are few and far in between. Some recent successes are
the Korean auto and consumer electronic giants – Hyundai and Samsung.
Branding issues for discussion:
The rationale behind branding
Segmentation and positioning strategies
Creating new brands -- challenges
How do the top brands establish their dominance in their product categories?
Why do some brands fail?
Readings:
Kotler and Keller: 7, 8, 9
Rapaille: 4, 5, 6
Hartley: Starbucks – sustaining brand and growth (3), Cola Wars – brand competition (5), Nike –
brand under attack (19)
--------WEEK 4: Product concepts and strategies
The key element of the market offering is the product. Product features and quality, together with
quality service and a price appropriate for its value are designed to meet and satisfy the needs,
wants, or preference of the consumer. In this unit we will examine the following topics:
• concept of product
• basic product decisions
• new product development and adoption;
• the product life cycle.
All these elements must blend together into an attractive offering for a designated target market.
Readings:
Kotler and Keller: chapters 10, 11
Rapaille: 57, 8, 9
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Hartley: Euro Disney – cultural context imperative (15), Southwest Airlines – niche market to
mainstream (18), Google – from start-up to market dominance (2)
--------WEEK 5: Pricing Issues and Strategies
Price is what the seller charges for its products or services. What the customer perceives is
whether he/she is getting the best value in the exchange. The fixed price we are accustomed to is
a relatively recent phenomenon. Until recently, price is generally set via negotiation between
sellers and buyers. In may instances, it is still the case today. In this unit we will examine the
following price related issues:
• how companies set the prices for its offerings
• how consumers process and evaluate prices
• how should a company adapt or modify prices to meet varying circumstances and
opportunities.
• during the economic turndown as consumers are much more price sensitive and
competition for survival is keen, how should a company address pricing questions?
• how should a company initiate a price change or respond to a competitor’s price change?
•
Readings:
Kotler & Keller: 13
Rapaille: 10, 11, 12
Hartley: Boston Beer – price-quality issue (4), Continental Airlines – the limits of low price (10),
Reflective essay 1 due on Week 6.
-------WEEK 6: Distribution Issues and Strategies
To be competitive, companies have to deliver their products to customers both effectively and
efficiently. Logistics has become one of the most crucial aspects of a firm’s overall operation,
especially when its activities span the global marketplace – in sourcing and selling abroad. Firms
like Wal-Mart have arisen to dominate their industries because of their creation and effective
management of globe spanning supply chains.
Readings:
Kotler and Keller: 13, 14
Rapaille: 10, 11, 12
Hartley: Newell-Rubbermaid – vendor-buyer issues (14), K-Mart and Sears – former retail giants
struggle (17)
Fast, Global, and Entrepreneurial: Supply Chain Management, Hong Kong Style
An Interview with Victor Fung by Joan Margretta HBR Sep/Oct 98, Vol. 76, Issue 5
--------
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WEEK 7: Marketing Communication Issues and Strategies
Companies must communicate with present and potential customers, stakeholders, and the
general public. One of the foci of marketing communications is to tell or show consumers how
and why a product is used, by what kind of person, and where and when. In short, its role is to
inform, persuade, and remind current and potential users of the value and efficacy of the product.
Marketers have a range of tools to assist in this effort -- advertising, sales promotion, public
relations and publicity, direct marketing, events and experiences management, and personal
selling.
Readings:
Kotler and Keller: 15, 16
Hartley: United Way – crisis management (12), Maytag – bungled promotional campaign (16),
Reflective essay due on Week 8
---------WEEK 8: Personal Sales and Sales Force Management Issues and Strategies
Personal selling is one of the oldest form of direct marketing. Industrial firms still heavily rely on
a professional sales force to locate prospects, develop customers, and grow the business. Personal
selling is also used effectively by consumer product companies such as Avon, Tupperware.
Multi-level marketing companies such as Mary Kay are very active and successful in emerging
markets like China. Insurance agents and stockbrokers are other examples of personal sales
occupations. The editors of the Harvard Business Review has assembled an outstanding
collection of articles devoted to personal selling and sales management in their July-August
double edition in 2006. We will read and discuss a selection of this collection of articles.
Readings:
Kotler and Keller: 17
Hartley: MetLife – deceptive sales practices (22),
Harvard Business Review articles on sales and sales management
Ending the War Between Sales and Marketing By: Kotler, Philip; Rackham, Neil; Krishnaswamy,
Suj. Harvard Business Review, Jul/Aug2006, Vol. 84 Issue 7/8
Leveraging the Psychology of the Sales Person by Coutu, Diane. Harvard Business Review,
Jul/Aug2006, Vol. 84 Issue 7/8
What Makes a Good Salesman by Mayer, David and Greenberg, Herbert M., Harvard Business
Review, Jul/Aug2006, Vol. 84 Issue 7/8
Better Sales Networks by Üstüner, Tuba; Godes, David. Harvard Business Review, Jul/Aug2006,
Vol. 84 Issue 7/8, p102-112
Major Sales: Who really does the Buying? Bonoma, Thomas V., Harvard Business Review,
Jul/Aug2006, Vol. 84 Issue 7/8
Emotional Intelligence – notes
FINAL EXAM
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REFLECTIVE ESSAY 1: The Culture Code
(2000 words; single spaced, Times font 11, left-margin 1.5 inches)
During this semester we examine a range of issues surrounding the concept and practice of
marketing. In his book, Rapaille argues that understanding a culture is the most important first
step in connecting with consumers in any culture. Hence understanding what American culture is
and how it works will be a great boost to marketers in knowing how to begin to market to
Americans. To be successful in international marketing, it necessitates that marketers be in tune
with the cultures of countries that make up the target markets for their products/services.
Reflect on the broad range of issues Rapaille covers in his book as well as the ‘codes’ he
identifies. In your essay, present your own response to the ideas presented in this book. It may be
in the form of a) a critique/assessment of Rapaille’s formulation of idea of a culture code, b) your
own view(s)/opinions regarding the some of the codes; or c) how the ideas(s)/concept(s) can be
applied or what the marketing implications?
The following questions are provided to guide your writing:
1. What is the central thesis of The Culture Code? Has Rapaille adequately supported his
findings and interpretation of the different codes for consumers in different cultures?
2. After reading The Culture Code, what is your overall response to the theme and
arguments he presented in this book?
3. Based on your understanding of American culture, do you think Rapaille has made a
good case that he has decoded what American culture is all about, especially as it pertains
to the purchase and consumption of goods and services?
4. In what ways has the reading this book been helpful to you in gaining some insights into
cultures that are different from America’s? List a few of them insights.
5. What insights into and added knowledge of consumer behavior did you glean from
reading this book that you did not have before?
6. Has reading this book helped you get a better grasp of what marketing is all about? If
your answer is yes, explain why this is so? If your answer is no, why not?
Due on Week 6
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REFLECTIVE ESSSAY 2: Marketing Mistakes and Successes
(2000 words; single spaced, Times font 11, left-margin 1.5 inches)
Hartley provides stories of how the managers of industrial and consumer goods companies
address a wide range of opportunities and challenges that they faced. In some cases, the managers
made decisions that led to the growth and successful marketing of their products or rejuvenation
of a mature brand. In other case cases, serious marketing mistakes were made which led to the
decline of the brand or company.
Reflect on the broader issue of how mangers respond to changes in the marketing environment. In
the cases we have discussed in this course, suggest reasons why the managers acted the way they
did – the manner they responded to the challenges (both opportunities and problems). In this
essay, address the following issues:
1. Do you agree that it is impossible for a firm to avoid mistakes? Why or why not?
2. How can a firm speed up its awareness of emerging problems so that it can take
corrective actions? Be as specific as your can. Use examples from the cases.
3. Large firms are often observed to err on the side of conservatism and are slower to take
corrective action than smaller ones. Why do you suppose this is so?
4. Which is likely to be more costly to a firm – errors of commission or errors of omission?
5. So often we see the successful firm eventually losing its pattern of success. Why is
success not more enduring?
Due on Week 8
MKT 504 – Spring 2010
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