MBA 840
Marketing Management
Winter 2009
8:30 and 10:30, Tuesday/Thursday
Gerlach 365
Instructor: Leslie M. Fine, Ph.D.
Academic Director, EMBA Program
550 Fisher Hall
Phone: (614) 292-2610 Office
Fax: (614) 292-0879
Fine_5@fisher.osu.edu
Course Objectives:
This course presents the concepts and tools of market-based management. The goal of a
market-based management system is to create strategies that deliver superior levels of
customer satisfaction, value and profitability. Therefore, the focus of the course is on
identifying, creating, delivering and measuring value creation from the customer’s point
of view. The course emphasizes application of market-based management concepts and
models to the diverse situations faced by many types of competitive organizations.
A fundamental assumption of graduate learning and of this class in particular is that
knowledge is both shared through reading and lectures, and created through class
discussion and debate. Each student brings a set of talents and skills to the class, and each
student is expected to be an active part of the knowledge creation process. Passive
attendance will not be rewarded.
Text: Market Based Management, by Roger J. Best (5th Edition); Prentice Hall
(Upper Saddle River, N.J.) 2009
Course Packet at UniPrint (Required)
About the text: The text is fairly quantitatively oriented, allowing you access to many
different types of analysis tools. These tools can be used in decision-making, in the
analysis of cases or to help you evaluate the efficacy of a decision in your organization.
The focus is on tools to quantify marketing performance. If you are not quantitatively
oriented or you do not work with marketing data, you will not find the quantitative
information especially taxing. The math required to understand any of the tools is very
basic. Also, the book contains a link to the web site where all of the analysis tools are
located in a spreadsheet format (www.rogerjbest.com). Use the 5th edition.
Access:
E-mail is the most reliable way to contact me. I will check e-mail and respond at least
once every day. If you raise an issue that should be communicated to the rest of the class,
I will post an announcement to the course web site. I don’t spend a lot of time in my
office so phone messages are not the best way to reach me.
Evaluation:
Team case write-up
Participation:
Homework:
3@10 points each
Exams:
2@100 points each
40 Points
30 Points
30 Points
Course Total:
200 Points
100 Points
Grade Scale:
A
AB+
B
BC+
C
188-200
180-187
172-179
166-171
160-165
156-159
146-155
Exemplary Performance
Strong Performance
Good Performance
Adequate Performance
Adequate Performance, with some deficiencies
Weak Performance, with serious deficiencies
Poor Performance, with pervasive deficiencies
Performance below the “C” level will be addressed on a case-by-case basis.
All work is due as stated in this syllabus, at the start of class or posted to the Carmen drop
box PRIOR to the start of class. Absence from class does not excuse you from meeting
due dates. Exams must be taken as scheduled unless there are extraordinary
circumstances, which should be discussed as far in advance as possible. Make up exams
will be significantly different from the scheduled, in-class exams.
Teams are expected to allocate workload and deliverables fairly, while involving
everyone in each project. Make sure that your team process allows each member of the
team to maximize the learning opportunities. Obviously, freeloading should not be
tolerated. Peer evaluations must be included with the team case assignment, and penalties
will be assessed at the instructor’s discretion for students whose contributions are
deficient.
MBA grading standards apply, and all work will be graded relative to the work of your
peers. Therefore, the best work will receive the highest grades, and the rest of the work
will be assessed accordingly; even very good work might not receive the highest grades if
the peer work is better.
Participation:
Learning requires student preparation, and knowledge creation requires active student
engagement. Every student is expected to be on time, prepared and focused in class. Turn
off and stow all portable electronic devices. You do not need a laptop in class, unless that
is your strongly preferred way to take notes. If so, and you are found to be using the
laptop for anything other than class work, your laptop privileges will be revoked.
Students should sit in the same seat for every class meeting, to facilitate proper recording
of class participation. A seating chart will be created at the second class meeting, and that
will be used for the rest of the quarter. You must have your name plate displayed for
every class. If you are absent from class you reduce the opportunities for participation.
Plan carefully.
Participation will be assessed on both quality and quantity. Quality is strongly preferred
over quantity, though a certain base-level of quantity (based on the class norms) is
required to demonstrate adequate preparation. High quality participation includes (but is
not limited to: analysis, synthesis, inference, insightful questions, informed hypothesis
testing, informed challenge to prevailing wisdom, informed support of an alternative and
reasoned recommendations. Low quality participation includes (but is not limited to):
ignorance of concepts, facts, readings, cases; attempts to guess, disagreement without
justifying evidence, snark for the sake of snark, asking bogus questions just to have a
voice, unsupported opinion and rude behavior of any kind.
If you have debilitating fear of speaking in front of a group, the classroom setting is a
safe and supporting environment in which to begin to tackle this fear. Please speak with
the instructor privately for help with strategies to overcome this fear so that your class
participation is adequate.
Homework:
There are three homework assignments which must be completed on your own, without
assistance from other faculty or students. Each homework assignment is worth 10 points.
You will receive the full 10 points if your homework is submitted on time, and if the
delivered product is “good” or better. You will receive 5 points if the homework is late
(no papers accepted more than 24 hours late), or if the product quality is adequate but not
good. If the paper is not submitted within 24 hours of the due date, or if the paper is of
less than adequate quality, the homework will receive a 0.
Team Case Write-Ups
Each team will submit ONE of the cases for grading. Case assignments to teams will be
made by the instructor. Instructions are available later in the syllabus.
Exams
Your knowledge will be assessed with a mid-term and final exam. The exam content and
format will be discussed in class. All aspects of the course are fair game for exams –
discussions, student commentary, guest speakers, case analyses. Information from the
assigned reading is always fair game, whether it is explicitly discussed in class or not.
Date
Topic
Tuesday Course Introduction
January 6 Customer Focus and
Managing Customer
Loyalty
Text, Chapter 1
Tuesday The Customer Experience and Value
January Creation
Text, Chapter 3
13
Case: Angels and Devils: Best Buy’s
New Customer Approach (A)
HBS Case #9-506-007
Write Up Due: Teams 23/16
Tuesday
January
20
Tuesday
January
27
Market Segmentation and
Segmentation Strategies
Text, Chapter 5
Case: Executive Health Group
HBS Product #599048
Write Up Due: Teams 25, 26/18,19
Competitor analysis and
Source of Advantage
Text, Chapter 6
Case: Sendwine.com
HBS Product #800211
Write-Up Due: Teams 27/20
Tuesday Mid-Term
February
3
Tuesday Services and Service Strategies
February Influencing Customer Behavior in
Service Operations
10
HBS Product #9-606-061
Date
Topic
Thursday Case Discussion:
January 8 Rosewood Hotels &
Resorts
HBSP Case #2087
Thursday Market Potential, Market
January Demand,
Market Share
15
Text, Chapter 4
Case: XM Satellite Radio
(A)
HBS Case #9-504-009
Write-Up Due: Teams
24/17
Thursday Marketing Performance
January and
Marketing Profitability
22
Text, Chapter 2
Homework #1 Due
Thursday Blue Ocean Strategy:
January From Theory to Practice
California Management
29
Review
(In Course Packet)
Case: Ikea Invades
America
HBS Product #504094
Write-Up Due: Teams
28/21
Thursday Product Positioning,
February Branding
and Product Line
5
Strategies
Text, Chapter 7
Case: Callaway Golf
HBS Product #501019
Write Up Due: Teams
13, 29/5, 22
Thursday Value-Based Pricing and
February Pricing Strategies
Text, Chapter 8
12
Homework #2 Due
SERVQUAL: A Multiple-Item Scale for
Measuring Consumer Perceptions of
Service Quality
Journal of Retailing, 1988, vol. 64.
A Conceptual Model of Service Quality
and its Implications for Future Research
Journal of Marketing 1985, vol. 49.
Readings in Course Packet
Case: Southwest Airlines
HBS Case #9-602-065
Tuesday Case: Atlantic Computer
Thursday Marketing Channels and
HBS
Product
#
2078
February
February Channel Mapping
Text, Chapter 9
17
Write Up Due: Teams 9, 10/1,2
19
Guest Speaker
Case: Centra Software
Larry Robinson
HBS Case #9-502-009
Introducing MBA pricing course
Write Up Due: Teams
11/3,8
Tuesday Consumer Behavior
Thursday Social Causes, Social
February Undressing the Mind of The Consumer February Enterprise, Non-Profit
Harvard Business #4451BC
Marketing
24
26
Balance
Doing Better at Doing
Harvard Business #4454BC
Good
Pricing and the Psychology of
California Management
Consumption
Review HBS #CMR295
HBS Product #1814
De-Marketing Obesity
Readings in Course Packet
California Management
Case: Zipcar
Review HBS #CMR315
HBS Case #9-605-054
The Social Enterprise
Spectrum
HBS Product #396343
Readings in Course
Packet
Homework #3 Due
Tuesday Marketing Communications
Thursday Case: Corona Beer (A)
March 3 And Customer Response
March 5 HBS Case #9-502-023
Text, Chapter 10
Write Up Due: Teams
Guest Speaker
12/4
Professor Pat West
Guest Speaker
Introduces MBA Promotions Course
Tim McCarthy
Direct Marketing
Tuesday Portfolio analysis, Offensive
Thursday Becton-Dickinson & Co.
March 10 And Defensive Strategies
March 12 HBS Product #594060
Text, Chapters 11, 12, 13
Write Up Due: Teams
14, 6
WuMart Stores
HBS Product #HKU635
Write Up Due: Teams
15/7
Week of Final Exam
March 17 Date, Time, Place TBA
Case Discussion and write-up Guides:
Each team will write up one case for a grade. In writing your analysis, assume that you
are a consultant who is helping the organization deal with the issues raised in the case.
The guides below identify the specific issues your team should address. Grades will be
based on how well students use the case data/information to address the issues and to
justify their recommendations. In addition, deductions will be made for poor writing,
errors in fact, or “cut and paste” analyses. The write-up should read as a complete and
unified whole.
Papers are limited to 1500 words (please include your word count at the end of the
document). You may include up to three pages of tables or exhibits as appendices, as
long as the print on these appendices is 10 point or larger. Do not reproduce any tables or
exhibits directly from the cases. You must use that data to create new information or
knowledge, and reproducing an exhibit fails to do so.
Particulars: Papers must list the names of each team member, in alphabetical order, on the
first page. Use 12 point type or larger (I will not read type that is smaller than 12 point).
You may print on two sides of the paper. Do not use folders or covers. No executive
summary or cover letter is needed.
Questions to help you analyze cases:
Rosewood Hotels & Resorts: Branding to Increase Customer Profitability and Lifetime
Value: This case poses a typical question regarding the profitability of a change in
marketing strategy. Why is Rosewood considering this new brand strategy? What are the
pros and cons of this strategy? Rosewood must weigh the cost of a new branding
initiative against any potential increases in the customer’s lifetime value. After
conducting a SWOT analysis and a 5 Forces analysis for Rosewood, you must determine
whether the improvement in lifetime value is sufficient to justify the cost of the
investment in the branding initiative. In addition to the analysis tools provided at
http://rogerjbest.com , you can use the Harvard version of the Customer Lifetime Value
Analysis at http://harvardbusinessonline.com/flatmm/flashtools/cltv.
Angels and Devils: Best Buy’s New Customer Approach: This case illustrates the
decisions made by a firm to more clearly identify its loyal and profitable customers. How
well does Best Buy’s new approach improve its ability to create customer value? How
should Best Buy handle customers who are dissatisfied by the new approach? What will
Best Buy managers need to know to successfully implement the new approach?
XM Satellite Radio (A): The success of the launch of XM Satellite radio depends on the
involvement of both equipment manufacturers and retailers, both of whom must be
convinced that this new product will be embraced by customers. After conducting a
SWOT analysis and 5 Forces model, estimate XM’s market potential and market demand
by determining which segments are most likely to adopt this new service. What specific
factors will affect the market potential for satellite radio? What specific factors might
drive customer adoption of satellite radio technology? What does XM have to do to
create early growth and to drive market share in this duopoly market? How can XM use
this information to convince manufacturers and retailers to “get on board” with XM?
Executive Health Group: The loss of two clients has caused decision makers at this
service firm to assess their overall strategic direction. What specific forces shape the need
for Executive Health Group’s services? Differentiate between corporate decision makers
and individual decision makers. How should the market for Executive Health Group be
segmented? Identify attractive segments for EHG. What is Executive Health Group’s
value proposition for the attractive segments? Given your answers to these questions,
how should EHG change its current marketing efforts? Your analysis should include a
SWOT and a 5 Forces assessment.
Sendwine.com: This case presents the issues of a start-up firm that creates value by
creating a different channel of distribution. In addition to the SWOT analysis and the 5
Forces analysis, discuss how Sendwine.com defines its industry and its market. Is that
industry attractive, or not? Who should Sendwine.com identify as its benchmark
competitors? What are Sendwine.com’s advantages? Are they valuable, rare, inimitable
and exploitable? Given your answers to the questions above, how should Sendwine.com
spend the $10 million in venture capital funds?
Ikea Invades America: How did a European furniture retailer successfully enter a
crowded U.S. marketplace? Using the “Blue Ocean Strategy” article, describe how Ikea
differentiated itself from existing furniture retailers. Why was this differentiation
successful? Which segments of the furniture-buying public is likely to be attracted to this
differentiation? Include a SWOT and 5 Forces analysis.
Callaway Golf: Callaway is known for product innovation, and its product success has
encouraged competitors and copycats, making it difficult for retailers to continually
justify Callaway’s high prices. Evaluate the past and current power of Callaway’s brand
name for retailers and end users. Is Callaway doing a good job in positioning the products
in its product line to its retail customers? To end users? What specific variables does
Callaway use to differentiate the products in its line from each other? From other
competitors’ products? Can Callaway maintain its current pace of product innovation?
How should Callaway respond to retailer needs? You analysis should be based on a
SWOT analysis and a 5 Forces analysis.
Southwest Airlines: At the time the case was written, Southwest Airlines enjoyed strong
profitability and customer loyalty. How do Southwest’s operational strategies allow it to
create service excellence? What market segments prefer the value created by Southwest’s
operational strategies? How does one customer’s behavior influence the experience of
others? Does Southwest have a service quality gap? If so, should it change the way it
operates? If not, how can customers like Liz Bast be satisfied?
Atlantic Computer: This organization is faced with the decision of how to set a price for a
down-market hardware and software bundle based on the customer’s likely perception of
the value of Atlantic’s offering. After conducting a SWOT analysis and a 5 Forces
analysis, your job is to determine how Atlantic should price the “Atlantic Bundle.” What
value does Atlantic provide to customers that is superior to the value offered by the key
competitor? How would that value translate into willingness to pay? Is value-in-use
pricing the best option? Why or why not? How are other stakeholders (sales force, for
example) affected by the pricing option you recommend?
Centra Software: This case illustrates the relationship between choice of go-to-market
strategies (channel design decisions) and target marketing. Your team should first
perform a SWOT analysis and 5 Forces analysis for Centra. How should Centra segment
its market? Then, consider how to resolve the dispute between Reed and Lesser on how
to deploy the telephone-based sales team. In solving this dispute, consider whether or not
all three channels should sell all three products to all customers. Alternatively, should
Centra target some products and channels to some customers?
Zipcar: What happens when one customer’s behavior has a severe impact on the
experience of another customer? Zipcar faces this problem in the form of late rental
returns. Conduct a SWOT and 5 Forces analysis for Zipcar. Then, use the concepts in the
“Balance” article to both explain the possible feelings of the two customers in the Zipcar
case. How can Zipcar use the concepts of the “Balance” article, and perhaps even pricing
psychology, to change the behavior of renters who do not return cars on time?
Corona Beer: The import beer market in the U.S. is relatively attractive, and Corona has a
fairly strong competitive position. However, Corona is not happy to rest on its laurels in
the U.S., and its goal is to become the Number 1 import beer brand in the U.S. Conduct a
SWOT analysis and a 5 Forces analysis for Corona Beer in the U.S. Which segments of
the market should Corona target to achieve the desired growth? What promotional
objectives and methods should be used? Defend your decisions.
Becton-Dickinson: This firm is in the offensive mode in the sense that its competitive
position is strong (but not as strong as it could be) and the customer represents a
relatively attractive market. After you conduct a SWOT and 5 Forces analysis, determine
which strategy Becton-Dickinson should use to keep Terumo out of HMC. How will
Becton-Dickinson convince the customer to accept this strategy? Who should be involved
in the negotiations?
Wumart Stores: China’s Response to Wal-Mart: Wumart is “on defense” in the sense that
Wal-Mart presents a direct threat, a threat that exists in addition to the threats from
domestic peers. Develop a SWOT analysis and 5 Forces analysis for Wumart. Are
Wumart’s advantages sustainable when challenged by a strong international player? How
good is the fit between Wumart’s strategies and the current and future external
environment? How attractive is the market for Wumart? What strategies should Wumart
employ to defend its competitive position?