EXECUTIVE MASTER'S PROGRAM NORTHWESTERN UNIVERSITY J.L. KELLOGG GRADUATE SCHOOL OF MANAGEMENT Professor Alice Tybout Office: Leverone 4-118 Tel: (847) 491-2723 Fax (847) 491-2498 e-mail: amtybout@nwu.edu Strategic Marketing - EMP 49 Winter Quarter 2000 Course materials Packet of cases and supplemental readings Philip Kotler, Marketing Management: The Millennium Edition, 10th edition, Prentice Hall, Inc., 2000. Optional background readings only. COURSE SCHEDULE Session Topic Assignment Jan. 15 Overview of Marketing Concept Read: Leveraging to Beat the Odds: The New Marketing Mindset Spend a Day in the Life of Your Customers Note on Segmentation, Targeting, and Positioning The Four D's of Effective Positioning Defining Marketing Problems Building a Brand: he Saturn Story (optional) Building Brand Equity Through the STP Approach to Marketing Prepare: The Case of the Pricing Predicament (for class discussion) Kotler Chapters 1-3, 9 and 10 Jan. 22 Macro Analysis Core Competencies/Resources Consumption Trends Industry and Competitor Analysis Read: Note on Opportunity Analysis How Market Leaders Keep Their Edge Seeing the Future First Prepare: WANG Laboratories Case BIC vs. Gillette Case Kotler Chapters 5 and 8 are relevant Jan. 28 Micro Analysis: How Customers Acquire and Use Information in Decision Making Learning About Consumers Through Market Research Read: Strategy: A Cognitive Perspective The Tyranny of Choice Get Closer to Your Customers By Understanding How They Make Choices Realizing Your Full Customer's Profit Potential Is Your Company Ready for One-to-One Marketing? (optional) Ignore Your Customer The Science of Shopping (optional) Qualitative Research (reference only) The New Mantra: MVT Prepare: Amsdeer Corporation Case Alpha Corporation Case Palm Computing Case Clover Valley Dairy Case Kotler Chapters 4, 6, and 7 are relevant Feb. 5 STP Through Product Design and Service Quality Read: Postmodern Branding Extend Profits Not Product Lines Sparking Innovation Through Empathic Design Brand vs. Private Labels (optional) Service Marketing Teaching Note Empowering Service Employees (optional) Prepare: Sweet Dreams Case The Case of the Complaining Customer Written Analysis of Hyatt versus Marriott Due Kotler Chapters 11-14 are relevant / Feb. 11 STP Through Promotion, Pricing, and Distribution Decisions Read: Note on Advertising Building Brands Without Mass Media How do you Know when the Price is Right? Kamikaze Pricing Managing Price, Gaining Profit (optional) Basic Quantitative Analysis for Marketing Note & Exercise (optional) Make Your Dealers Your Partners Rethinking Distribution Revolution in Retailing (optional) Prepare: Intel Inside Case Penrod Case Prentice Machine Tools Case Kotler Chapters 15-22 are relevant. Feb. 19 Wrap-up Session Read: Black & Decker Power Tools (A) Case Take Home Final Exam is Due (Note that the Penrod Case is a shortened version of a previous exam. Your final exam will follow a similar format.) Note: All readings in Kotler's Marketing Management book are for background reference and are optional. Primary emphasis will be given to the materials in the case packet. There will be no direct testing of the book material; however you may find it helpful in becoming familiar with marketing terminology. Nature and Purpose of the Course This course deals with management of marketing functions in modern profit and nonprofit enterprises. The major purposes of this course include: 1. To analyze critically the task of marketing under contemporary conditions and to examine the major functions that comprise the marketing task. 2. To evaluate various types of policies that can be employed in guiding the marketing activity. 3. To develop an awareness of the major types of marketing problems faced by organizations, with emphasis on sound analytical approaches to effective decisions. Evaluation of Student Work Each student will be evaluated on the following: Hyatt versus Marriott Case Final Examination 50% 50% Written Case Groups will be responsible for one major written case analysis, Hyatt versus Marriott. This case analysis is due on February 5th and should be no longer than 2500 words (excluding appendices). In addition to this major case analysis, groups have the option of submitting brief (no more than two single spaced pages) memos for two cases, WANG Laboratories and Alpha Corporation case. These memos should simply outline a recommended course of action and provide a rationale for that course of action. If submitted, feedback will be provided regarding the group's performance. However, it should be emphasized that these memos are strictly voluntary and will not count toward the final course grade. The purpose of the memos is simply to practice group level case analysis prior to the major case assignment. Prior to the due date for the written case analysis, class time will be devoted to a discussion of issues regarding case preparation and analysis. Some preliminary remarks on case analysis are included at the end of this syllabus. Reading cases The remaining cases are to be read and analyzed. You are expected to be prepared to discuss these cases in class, though no formal write-up is required. Examination The examination format will be as follows. Students will be given a case describing a marketing decision situation. On the basis of data presented in this case, students will be asked to (1) make decisions with respect to several issues raised in the case and (2) marshal support or justification for the position advocated using theories, concepts, and analytical devices developed in the test and in class. Adequate preparation for the exam may be achieved by (1) reading and studying all of the required assignments, (2) taking comprehensive class notes and reviewing them prior to the exam, and (3) devoting effort to the preparation and analysis of in-class cases, both written and "reading". Honor Code The honor code will be applied to the course in the following manner: it is expected that all written and reading cases will be done on an individual basis, without examining analysis done by out-of-group members in either the present or previous classes. The final exam will be a take-home and done on an individual basis. It will be distributed at the February 11th class session and completed by February 19th. Final examinations must be typed. A previous exam case is included in the case packet and will be discussed in class. No other previous exams should be examined or will be made available. Any violation of these guidelines constitutes a violation of the honor code and should be reported to the instructor. CASE ANALYSIS Strategic decision making entails coordinating seemingly unrelated facts so that they provide support for a particular course of action. The cases assigned are intended to give you a practice in assembling data to support a decision. As is often the situation in actual practice, cases may not have all the data you would like. Nevertheless, it is critical that you develop a reasoned plan of attack on the basis of the data available. Preparing a case. In preparing an analysis, read through the case looking for the main problems that you will address. Develop a rationale for your belief that the problems identified are in fact problems. In addition, assemble the factual information presented in the case that addresses various problems. Once you have assembled all the information provided, develop a framework for analysis. This framework should (1) identify problem areas, (2) provide evidence that indicates why the problem is a problem and the alternative ways it may be resolved, and (3) choose a course of action that you feel is based on the soundest assumptions. By following this strategy, you will be able to develop an integrated analysis and you will avoid focusing on issues for which there is little data. Writing up a case. In the formal write-up, for the Hyatt versus Marriott case only (not the practice memo cases), you are requested to use the format outlined below. 1. Executive summary This section should briefly summarize the key problems that you have identified and, thus, what the goal of the organization should be. Then, summarize your specific recommendations for achieving the goal. 2. Analysis This is the heart of your report. It entails marshaling factual data that support your problem identification goals and recommend actions. You must build a persuasive case for each of these steps in your analysis, you may/should use side-headings to structure this section. Building a strong analysis requires not only that you offer evidence to support your decision, but also that you anticipate arguments against your views and counter them. Common Errors in Case Writing 1. Format outlined above in not followed. Subheadings are not used in the analysis section. 2. Executive summary is too long. No more than half a page is generally needed for this section. 3. Focus centers on minor issues or issues for which there is little or no data. Let the case facts guide you to the selection of issues. If there is little or no data addressing an issue, don't dwell on it in your analysis. 4. Rehashing of case data. Assume the reader is familiar with the case. Present case data only when it is needed to support a line of reasoning you are developing. Don't summarize the case situation as a preamble to your analysis, and don't present case facts unless you are going to drive home a point with them. 5. Uncritical acceptance of case data. Before you use evidence presented in the case, ask yourself if it was collected in a sound manner and whether it is relevant to the issue that you are addressing. This does not give you a license to eliminate all data. Rather, you want to qualify the conclusions your each by evaluating the quality of the data on which a conclusion is based. 6. Failure to provide a rationale for eliminating other viable alternatives. It is important to show that the recommended course of action is likely to deal effectively with the problems identified. It is equally important to provide a rationale for dismissing other, courses of action. 7. Failure to present analytical work in an understandable manner. When doing computations, be sure your presentation (usually in an appendix) is sufficiently detailed so the reader can replicate the analysis. This requires you to indicate where the data came from and show how it is analyzed.