Individual 50% - Kellogg School of Management

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NORTHWESTERN UNIVERSITY
J.L. KELLOGG SCHOOL OF MANAGEMENT
INT MKT 467 81 SYLLABUS Professor Phil Corse
Revised February 12, 2007
International Marketing
Office Hours: 4-6 Mondays, 1-4 May 4 & 18, by appointment
Spring 2007
Mondays 6:30–9:30 PM Evanston Campus
Professor Phillip Corse
President/CEO
Connectables, LLC (China Sourcing and Trading Company)
Senior Vice President, Marketing Consulting Services
Herbst LaZar Bell (New Product Research, Design and Development)
Contact Information
[email protected]
[email protected]
847 778 7107 mobile
847 295 7509 home
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1 Course Description
This course on Global Marketing is based on a combination of lectures/discussions, Harvard cases, videos, outside
speakers, country snapshots, cultural ethnographies and a final marketing project in which student teams launch a
discrete product in an emerging market such as India or China. The course is real-world based and the emphasis is
more on “how-to-do-it” rather than what-to-do”. This is an important distinction and a number of frameworks and tools
will be introduced in the course for application by the class.
The course recognizes that we live in a flat, connected, shrinking, interdependent world in which time horizons are
compressed, communications are 24/7, information is prolific, customers are also competitors and global work teams
are located throughout the world. A stage-gate framework, consisting of Opportunity Assessment, Market Entry and
Market Expansion, provides tools and techniques to develop a regional/local perspective and the mantra for the course
is to “Go Local/Go Regional”!
My background? I have twelve years of corporate experience with consumer product companies followed by nearly
twenty years in which I have been conducting marketing consulting engagements globally, co-founding companies in
the US and Asia and sourcing products from China for resale in the US and Europe. I am a classical trained marketer,
serial entrepreneur and new product focused global marketing consultant.
I have been teaching this course at Kellogg for a dozen years, have taught International Marketing Channels here and
I also teach a marketing course at the McCormick School of Engineering for the Master of Product Development
program that focuses on new product research and development.
The main perspective … but not the only one … that you the student will have, is as the Chief Global Marketing Officer
of a US based corporation that is interested in entering new international markets and/or expanding its business in new
countries.
Other themes and perspectives are:

The important trend of emerging/surging Asian countries”… such as India, Vietnam, South Korea and
especially China … striving” to increase its US sales and trying to establish/build their own brands, buy US
companies/brands and “manage” its currency

The recognition that China can not just be the “world’s factory” but must sell and market its own products to
its exploding middle class … and build/expand its relatively few and unknown brands in developed countries
and particularly in the Middle Kingdom!”

My philosophy is that marketing starts and ends with the consumer or end user … that products must be
developed, channels configured and markets created or penetrated based on consumer experiences and
environments

The “interesting” and intensifying political turmoil within Europe and rapidly expanding “new” EU countries,
especially eastern Europe … towards each other and especially towards the United States … and the effect
on US brands.

The identification and benchmarking of “best international marketing practices”, success stories and failure
examples of global companies.

The global opportunity of selling to the 4 billion “poor people” (of the 6.7 billion people on the planet) by
designing and developing low cost products and services that are affordable for this target market.

The reality that governments of foreign countries in cross border trade can be a significant barrier to entry, a
partner, a customer or a competitor … and are in fact a “sixth” force in the 5 forces model … distributors can
be a seventh force!

A world that is drowning in an sea of $$$s, Euros and Yuan in private equity, hedge funds and “buy-out”
companies that have the financial resources and savvy to pull off multi billion dollar deals
You will be asked individually, and as a member of a team, to provide both in-class discussions and written analysis
that will enable you to examinee the business environment and focus on global marketing problems and opportunities.
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Please bring into class or email timely and relevant global marketing articles and information to be discussed and
shared with the class.
As a team, you will ultimately develop a marketing strategy and plan for a global enterprise in a selected country and
for a team selected company and product. You will provide an “order of magnitude” P & L based on the opportunity
assessment your team formulates. The keys to this P & L are the revenue justification, the assumptions about selling
prices and profits for all channel members and the optimal mix of “push/pull” marketing strategy components.
This course integrates and addresses the significant impact of cultural, economic, political, infrastructure and
population variables in global marketing management. Students will explore marketing issues and marketing
implications in a cross-cultural perspective. Your market, competitor and cultural investigation will address appropriate
opportunity and risk assessment, market entry strategies, and importantly, the implementation of the marketing plan.
This course will balance academic rigor and theoretical framework with the real world and the application with provided
global marketing tools and business practices … with the emphasis on the implementation of global marketing plans
and programs.
I am highly interactive … real world … and I will expect and encourage stimulating (I hope!) in class discussions with
challenging and engaging points of view. My strong emphasis is on application … what works in the comfort and
convenience of a classroom … or on a spreadsheet … many times will not work in the real world … together
we will sort that out.
Please note that the course “overweights” China and Asia, emerging/surging countries and “market entry” strategy for
launching discrete products.
Kellogg Honor Code and In Class Laptop Usage
It is expected that each of you know, understand and abide by the Kellogg Honor Code that you have access to at
Kellogg and on the Kellogg web site. The code of Kellogg classroom etiquette is very clear about the fact that web
surfing and checking e-mail is not appropriate. The relevant passage states: “Students should demonstrate respect for
the professor and fellow students during the class period. Students, therefore, should refrain from distracting behavior
such as disruptive eating, using laptops to surf the Web or check e-mail and holding side conversations.”
My policy is that laptops and communication devices must be turned off during class. When there are additional
materials, handouts or presentations for class, they will be posted on Blackboard Monday morning giving you ample
time to print hard copies for class that evening. Since this is a 3 hour evening class scheduled at dinnertime, you are
welcome to eat and drink during class.
2 Text
The required text is The Mirage of Global Markets by David Arnold, published by Prentice Hall.. This book focuses
on International Marketing Management. The central theme is that markets are becoming more localized… “Intensely
local” … and the book stresses how international marketing is very different than conventional marketing by focusing
on local markets that are becoming more and more fragmented
World out of Balance by Paul Laudicina, McGraw-Hill. This book addresses global risks to obtain competitive
advantage and is highly recommended but not required. This is a great read and contains an excellent discussion on
changing global demographics and the “new consumer”.
Another book, The World is Flat by Thomas Friedman, is recommended especially for his “Ten Forces” discussion in
the first part of the book. I like this book for the global marketing of consumer products.
3 Learning Outcomes
Upon completion of International Marketing, you will be able to:
3.1
Recognize cultural differences in various global regions and their effect on the conduct of international
business and is able to analyze these cultural differences in terms of opportunities and inherent risk in
conducting marketing activities and in segmenting global markets. Plus, you will be asked to draw consumer
insights about how and where products are purchased and used by consumers in other countries.
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3.2
Understand the benefits in engaging in international trade in relationship to political economic factors such as
free trade or regional agreements … and learn how to target regions/countries based on their membership in
a free trade agreement.
3.3
Understand how to compete in international markets and the need for”global team” organizational structures
designed to manage global companies and opportunities
3.4
Become more of a global citizen, and learn the economic and marketing aspects/outcomes of globalization.
3.5
Develop strategies and plans for market entry and implementation for a company in a foreign country and be
able to quantify that opportunity and justify the revenue in pro forma P & L statements.
3.6
Gain exposure and perspective to the challenge of managing international marketing operations in a
domestic US corporation.
3.7
Become familiar with tools, frameworks and techniques to conduct opportunity assessments, identify high
potential regions, size markets and develop channel pricing strategy.
4 Grading & Deliverables
Shown below are your major deliverables and the weighting of each. There is a description of each deliverable
following the weights.
Individual
50%
Individual Participation*
15%
1 Case “Memo”
20%
Cultural Ethnography
15%
Team based
Country Snapshot Presentation
Marketing Strategy Brief for Final Project (1 page memo)
Final Project: Marketing Plan Presentation
50%
10%
5%
35%
Total
100%
*Includes individual peer evaluations by each team member … these are critical and are the only
way for me to assess a student’s team performance and participation outside of class. “Poor” peer
evaluations can result in the lowering of your grade by 1 level.
Notes: Since there are 2 assigned team presentations, it is not necessary for all team members to present
each time. Ideally, if the team consists of 6 members, 2-3 will present each time and the others will handle Q &
A and the next time, 2-3 different team members will present.
Each student will turn in 1 case only --- that will be pre assigned.
Shown below are the building blocks for the Final Project that starts with the Cultural Ethnography, continues with the
Country Snapshot and culminates with the Marketing Brief and the Final Project.
Cultural
Ethnography
Country Snapshot
Step 1
Step 2
Marketing Strategy
Brief
Final Project
Step 4
Step 3
Source for Mkt Brief
Source for Final Project
Source for Final Project
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From Steps 1-3
Participation (15%)
The class format will be approximately 50% informal lecture and discussion, 40% casework, and 10% student team
presentations. Class participation is very important to me as I have a highly interactive approach … that of a
facilitator and coach… so your ideas and input are more than welcomed, they are expected!!! I will be posting
additional presentations, “tools” and teaching materials on Blackboard.
If there is not enough “air time” for you or you have additional thoughts later, you are encouraged to email me your
insights and builds or connect with me after class or in my office. I do plan to cold and “warm” call on a regular basis.
You will be expected to prepare for and contribute to each class. This is a very important part of the course. Rather
than restating the obvious, you will be expected to provide informed and insightful comments and contributions to the
subject case or material being addressed that evening.
Your participation grade will be reduced by 2 points if you miss a class and by 5 points if you miss 2 classes. If you
miss 2 classes it will be very difficult to receive an “A”, regardless of the reason. Please let me know beforehand if you
expect to miss a class and the reason why. It is your responsibility to sign in at each class. You must complete a
“makeup” assignment if you miss 2 classes.
"Contrarian" points of view are strongly encouraged! I welcome the opportunity to explore different points of
view!
Case Memos (20%)
Each student will be assigned one case (out of the cases listed) for which to prepare a written memo. All cases are in
the case packet.
There are 3 questions for each case that will be posted on Blackboard. Please list the question and provide the
answer. Do not deviate from answering the questions. For example, do not recap the case. The deliverable is a memo
due at the beginning of the class in hard copy only. The memo is limited to 1 page in a font of 11 or larger with
standard margins (no limit on number of exhibits). Please list each of the questions/issues followed by your answers
.This memo may have an unlimited number of exhibits, charts, graphs, web pages etc. Expanded bullet points are
preferred to text intensive documents.
Cultural Ethnography (15%)
This is an individual assignment in which you will conduct an participant observation with an individual from another
country for an assigned product. You will select an appropriate individual (you may have to screen 3-4 people to
determine the best one) with whom to conduct this interview.
Your assignment is to prepare a 1 page memo to deliver your insights into how the person:



Learns and obtains information about the product addresses need states (5 pts)
Purchases the product and how they identify the value proposition (5pts)
Uses and stores the product (5 pts)
The information will be shared with your team, who have the same assignment, and these 5-6 ethnos will be the
qualitative research basis for your Marketing Brief and Final Project. Further details will be provided in class.
Country Snapshots (10%)
In order to ensure that each student is current with global business events and to learn more about specific countries,
you will be asked to use the international press (using the internet and other sources) to investigate the assigned
country.
Each team will present no more than 12 slides (12 images in total) in 15 minutes and then lead a class discussion on
the marketing key learnings for that country. You will not simply report facts and figures; rather you will offer marketing
advice in the form of marketing insights. For example, take Japan ---- the distribution system in that country is very
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complex with many levels. One “takeaway” for a global marketer is that there must be sufficient margin and programs
to motivate the many layers of channel members who may have competing objectives and interests.
I will provide more examples of the deliverables in class before the first team presentation. Each Country Snapshot
presentation should be organized to identify and address global issues that have a short or long-term effect on specific
industries.
Your advice, marketing insights, key learnings and connections must be organized around many of the following global
marketing and sales themes/principles:









Marketing communications … global branding and promotion
Culture … language, religion, values etc.
Pricing and capturing value
Distribution channels/market access/sales
Alliances, partnerships and joint ventures
Products and services … global product development and innovation
Segmentation, targeting and positioning
Market entry/market expansion
User/market research … use model, buying habits, need states
Points for “Advice” You will receive 1 point (4 max) for every major insight/reasons why that is a solid takeaway …
there must be at least 4 different marketing principles or topics addressed, e.g., pricing, culture, distribution and market
entry. No credit will be given for facts … only for the connections you make! In other words, you need to provide useful,
actionable sales and marketing advice as if we were going to enter or expand the market in this country.
.3 Points for the Top 3 Product categories (B2C or B2B) in that country. Please identify the top 3 product
opportunities for that country and provide the “why”. The key here is to identify opportunities for market entry or market
expansion. One point will be assigned for each well defined opportunity.
3 Points for 3 Case Histories Your presentation should contain 2 examples of a success story of a company who is
doing well in that country and an example of a company who failed --- please provide the reasons for success or
failure. You should have 3 company case histories.
The only hand in will be your 12 slides, speakers’ notes and exhibits. Please provide a hard and a soft copy, which I
will post on Blackboard.
Marketing Strategy Brief (5%)
For the final project you are to:




Identify a company that is currently making and marketing the product category your team is assigned
Focus on the assigned country + analyze the region for future launches and expansion
Use the insights and connections from your cultural ethnography
Prepare a plan to launch this product or service
For Class # 8, you are to prepare a Marketing Strategy Brief (see following section) and for Class #10, the team will
present its plan using the Stage Gate Framework, tools and techniques to prepare the plan.
Your team needs to prepare a 1 page memo that first documents the product or market opportunity assessment and
secondly that provides the marketing strategy summary to include: the 4Ps, how you are segmenting, targeting and
positioning to end users (with special emphasis on culture, use model and buying habits and practices) and any cross
border issues or problems … e.g., tariffs, duties, government quotas or other barriers to entry.
Grading Grading values are 2 points for the opportunity assessment (the “why” of the product or market opportunity)
and 3 points for the marketing strategy.
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A team representative will informally and briefly present this Marketing Strategy Brief at Class #8 to obtain “builds” and
“marketing advice” from the other teams and from me. After I read your brief, I will email each team my additional
feedback. This process will enable your team to take complete your Final Project.
Final Project: Marketing Plan Presentation (35%)
This group project is intended to develop skills and provide a real- world experience in market assessment, selection,
entry strategy and the development and implementation of your own marketing program. Because the scope of such
an endeavor is far beyond the time and resources of any one student, it is by necessity, a group project.
Select a company that currently markets products internationally or would like to do so. Examine the portfolio of
products within the firm and select a product or product line to launch in your assigned country.
There is no best topic, product, company or industry. Your choice should reflect the interests of the team. It is also
perfectly appropriate to select the product and company of a team member. No restrictions are imposed regarding the
use of company resources available to you in pursuit of your topic. (E.g., interviews with key employees, company
records, reports, published information, etc.) Of course you are bound by company policy on the use of such
information.
Final Project Grading The project is 35% of your grade. Each team member receives the same grade unless notably
different levels of contribution are reported or observed. E.g., a “low” peer evaluation will result in a lower grade … for
this project. A marketing plan rating sheet is used to further review presentation evaluation criteria. The breakdown of
the 35 points is as follows:
Content … marketing strategy, country analysis, cultural audit, marketing sizing, opportunity assessment, market entry
or expansion etc: 20 points (includes 5 points for Marketing Strategy Brief due Class # 8).
Financials, volume projections and justification: 5 points
Presentation … energy, passion, communication and persuasiveness: 10 points
Q&A, rebuttal, and ability to make additional points: 5 points … it’s your responsibility to facilitate discussion and make
additional comments.
The grading emphasis and ‘trade-offs” will be on the recommended marketing strategy, rationale and the action plans
to implement the strategy in the “real world”.
5 Activities and Timing for Final Project
5.1
Form into teams of 5-6 students. A slightly longer break will be provided the first night to meld teams.
5.2
Experience suggests it is easier to first select a company from 3-4 candidates that you identify
5.3
Include in your plan a brief description of the firm's international operations and its corporate culture.
5.4
Prepare a product categories fact sheet as a guideline for investigating and gathering information.
5.5
Your methodology should include development of both primary and secondary data about the company,
product and country. Personal interviews, email contact, telephone/electronic interviews and any other form
of direct contact are encouraged. Several databases may be available through Northwestern or one of your
companies.
5.6
Develop your Marketing Plan using any elements of various outlines included in this course, the text or any
other sources. There is no one ideal format. Consider an outline format easily transferable to a power point
presentation.
5.7
Plan presentations will be on the last class day. Each team (depending on the number of teams) will make a
20-minute summary presentation with no more than 12 slides and 10 minutes will be allotted for Q & A. You
are required to turn in both a copy of your presentation and a CD or memory stick … (no other write-up is
required) and any backup or supplementary information you consider essential (there is no limit on the
number of exhibits). A bibliography or equivalent document outlining your sources of information is not
required.
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5.8
Timing … it is essential to establish a pace and delegate assignments and investigations on a timely basis.
The following is a guideline to coordinate your activities:
6 Class Format
Class time will be divided as follows:






First hour and half: lecture and discussion
Best global marketing practices, success stories, failure examples, case histories, videos and current trade
press and newspaper articles
Team presentations of Country Snapshots and class discussion of additional “builds”, connections and
insights for the country.
Guest speakers (the plan is to have 2-3)
Last hour case discussion and connections
Last 5 minutes: takeaways and key learnings
7 Timeline & Deliverables for the Course
Case questions and other more detailed assignment information will be covered in class. There will be 1-2 informal
brief group meetings during class in which we can confirm Final Project direction together. Some articles in the case
packet will not be discussed in class and I will not cover all the slides provided.
“Blackboard” will be used on a regular basis to post documents such as teaching notes, presentations (yours and
mine) and other documents.
The timeline, assignments and deliverables follow:
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