Linköping University Inst. of Management and Engineering Department of Industrial Marketing MBA-ProMA MBA ProMA TXPR16 Industrial Marketing Product Development, 9 ECTS Credits (Spring 2009) Course Instructors: Professor Staffan Brege Professor Hossein Dadfar Aim: The aim of this course is to provide theoretical knowledge, understanding, and practical skills to comprehend the complexity of industrial and business-to-business markets, product development as well as strategies in industrial organizations. After completing the course you should be able to: Appreciate the nature of industrial goods and services; differentiate industrial markets from consumer markets. Describe, compare and utilize theories, models, and approaches of industrial marketing with focus on network and strategic marketing theories. Demonstrate analytical capability in relation to industrial market analysis and competitive advantages, industrial organization analysis and determining the firm’s strategies and strategic network. Describe and apply industrial buying behavior, competition and competitive strategies, cooperative strategies, and strategic networks. Describe and analyze product development process and factors that influence success and failure at each stage. Comprehend idea generation techniques in new product development (NPD). Curry out a research project solving marketing problems in an industrial organization. Course organization: The course, which is 40h, consists of: - Lectures - General seminar/presentation of project idea PM2 - Literature seminar - Final Project seminar Total hours in classroom Estimated students self study and project work Total hours to be invested by students (minimum) 44h 2h 4h 6h 56 h 168 h 224 hours Course contents: The nature of industrial goods and services, how industrial marketing differs from consumer marketing, strategic marketing approach in industrial marketing: Tools and concepts to develop and execute successful industrial (B-to-B) marketing strategies, value creation and supply chain management, segmenting the industrial market, industrial buying behavior, market structure, transaction cost theory, network approach in industrial marketing and market analysis, industrial buyer- seller relationship, system selling and project marketing, industrial marketing strategies, competition and competitive and collaborative strategies, and strategic networks, describe and 1 analyze product development process and factors that influence success and failure at each stage. Comprehend idea generation techniques in new product development (NPD). Examination Examination consists of two parts: 1) written exam 3 ECTS and 2) project work 3 ECTS The assessment includes the following activities: 1. Written exam consists of: 1. Writing a review article on special topic identified by the course instructor 50% of written exam. 2. Quiz (individual): this is a voluntary moment and passing the test successfully adds two points as bonus to your written exam. 3. Literature seminar compulsory 2. Project work (group work): each group should choose a company/branch and carryout analysis highlighting core competencies, competitive advantages, mapping business network and suggesting strategies (marketing and product development) for the company. Note: To pass the course you should pass all compulsory moments. Course Literature: Collection of articles 1. Bengtsson, M. and Kock, S. (1999) “Cooperation and competition in relationships between competitors in business network” Journal of Business & Industrial Marketing 14/3, pp.178193. 2. Blois, K. and R. Ramirez (2006), “Capabilities as marketable assets”, Industrial Marketing Management, vol 35, pp1027-1031. 3. Booth, R. (1996) “The role of supply-chain re-engineering in the pharmaceutical industry” logistics information management 9/3, pp. 4-10. 4. Chaharbaghi, K. and Lynch R. (1999) “Sustainable competitive advantage: towards a dynamic resource-based strategy”, Management Decision 37/1, pp.45-50. 5. Chandra, Ch., and Kumar, S. (2000) “Supply chain management in theory and practice: a passing fad or a fundamental change?” Industrial Management & Data System, 100/3, 100113. 6. Cample, N.C.G. and Cunnigham, M.T, (1997) “Customer Analysis for Strategic Development in Industrial Markets” in David Ford ed. Understanding Business Markets, The Dryden Press. 7. Cova, B. and Hoskins, S. (1997) “A Twin-Truck Network Approach to Project Marketing” European Management Journal, vol. 15, No. 5, pp. 546-556. 8. Cova B., and Salle, R. (2008) “The industrial/consumer marketing dichotomy revisited: a case of out dated justification?” Journal of Business & Industrial Marketing 23/1, pp.3-11. 9. Cox, A (1996) “Relational Competence and Strategic Procurement Management”, European Journal of Purchasing and Supply Management, vol2, no 1, pp 57-70, 10. Day, G. S. (1994) “The Capability of Market-Driven Organizations” Journal of Marketing, vol. 58, October, pp. 37-52. 11. Flamholts, E. and Hua, W. (2003)“Searching for Competitive Advantage in the Black Box” European Management Journal, 21/2, pp. 222-235. 2 12. Hammel, G. and Prahalad, C.K. (1998)”Competing for Future” in de Wit and MeyerStartegy: Process, Content, Context. Thomson Business Press. 13. Hax, A. and Wilde II, D.L. (1999) “The Delta Model: Adaptive Management for a Changing World”. Sloan Management Review, 40, 2, 11-28 14. Herbig, P., Milewicz, J. C. and Gulbro, R. (1994) “Marketing Signals in Industrial Markets”, Industrial Management & Data Systems, 94/9, pp.16-21. 15. Håkansson, H. (1997) “The Swedish Approach to Europe”, in David Ford (ed.) Understanding Business Markets, The Dryden Press. 16. Lings, I.N.(2000) “Internal marketing and supply chain management”, Journal of Service Marketing, 14/1, pp. 27-43. 17. Normann, R. and Ramirez, R. (1993) “From Value Chain to Value Constellation: Designing Interactive Strategy”. Harvard Business Review, 65-77. 18. Palmer, R. (2002) “Managerial understanding of contemporary industrial marketing issues” Qualitative Market Research: An International Journal 5/2, pp. 135-143. 19. Porter, M (1996) What is Strategy? , Harvard Business Review, Nov/Dec 20. Prahalad, CK and Hamel, G (1990) "The Core Competence of the Corporation", Harvard Business Review, May/June 21. Quinn, J. B. (2000) Outsourcing Innovation: The New Engine of Growth, Sloan Management Review; Summer 2000; 41, 4 22. Skaates, M. A., Tikanen, H. and Linblom, J. (2002) “Relationships and Project Marketing success” Journal of Business & Industrial Marketing 17/5, pp.389-406. 23. Stabell, Ch. B. and Fjeldstad Ö. D. (1998) Configuring Value for Competitive Advantage: on Chains, Shops and Networks” Stategic Management Journal, vol. 19 pp. 413-437. 24. Stalk, G, Evans, P and Shulman, L(1992) Competing on Capabilities, Harvard Business Review, March/April, 25. Sudharshan, D. and Winter, F. (1998) “Strategic segmentation of industrial markets” Journal of Business & Industrial Marketing 13/11, pp.8-21. 26. Turnbull, P. Ford, D. and Cunningham, M.(1994)” Interaction, relationships and networks in business markets: an evolving perspective” Journal of Business & Industrial Marketing 11, 3/4, pp.44-62. 27. Vargo, S.L. and Lush, R. (2004) “Evolving to a new dominant logic for marketing” vol. 68, pp. 1-17. 28. Wind, Y. (2006) “Blurring the lines: is there a need to rethink industrial marketing?” Journal of Business & Industrial Marketing 21/7, pp. 474–481. 29. Woodside, A. G. (2006) “Advancing systems thinking and building micro worlds in business and industrial marketing” Journal of Business & Industrial Marketing21/1, pp. 24–29. 30. Keith Walley, P. C. and Taylor, S. (2007) “The importance of brand in the industrial purchase decision: a case study of the UK tractor market” Journal of Business & Industrial Marketing 22/6, pp.383-393. 31. Kuhn, K. S. L., Albert, F and Pope N. K. (2008) “An application of Keller’s brand equity model in a B2B context” Qualitative Market Research: An International Journal , 11/1, pp. 40-48. 32. Baldwin, C. Y. & Clark, K B. (1997): Managing in an age of modularity, Harvard Business Review, Vol. 75, No. 5, pp. 84-93. 33. Eisenhart, K M & Tabrizi, B N (1995): Accelerating Adaptive Processes: Product Innovation in the Global Computer Industry, Administrative Science Quarterly, Vol. 40, No. 1, pp. 84–110. 3 34. Magnusson, T. & Berggren, C. (2001): Environmental innovation in auto development: managing technological uncertainty within strict time limits, International Journal of Vehicle Design, Vol. 26, No. 2/3, pp. 101-115. 35. Adler, P. S. (1995): Interdepartmental Interdependence and Coordination: The Case of the Design/Manufacturing Interface, Organization Science, Vol. 6, No. 2, pp. 147-167. 36. Vandevelde, A. & Van Dierdonck, R. (2003): Managing the design-manufacturing interface, International Journal of Operations & Production Management, Vol. 23, No. 11, pp. 1326-1348. 37. Lakemond, N. & Berggren, C. (2006): Co-locating NPD? The need for combining project focus and organizational integration, Technovation, Vol. 26, No. 7, pp. 807-819. 38. Lakemond, N., Berggren, C. & van Weele, A. (2006): Coordinating Supplier Involvement in Product Development Projects: A Differentiated Coordination Typology, R&D Management, Vol. 36, No. Academic honesty and plagiarism Plagiarism is the presentation of the thoughts or work of another as one’s own. Examples include: Direct duplication of the thoughts or work of another, including by copying work, this includes: - Copying material, ideas or concepts from a book, article, report or other written document (whether published or unpublished), composition, artwork, design, drawing, web site, Internet, other electronic resource, or another person’s assignment without appropriate acknowledgement. - Paraphrasing another person’s work with very minor changes keeping the meaning, form and/or progression of ideas of the original. - Piecing together sections of the work of others into a new whole. - Presenting an assessment item as independent work when it has been produced in whole or part in collusion with other people, for example, another student or a tutor. - Claiming credit for a proportion a work contributed to a group assessment item that is greater than that actually contributed. - Submitting an assessment item that has already been submitted for academic credit elsewhere may also be considered plagiarism. - Students are reminded of their rights and responsibilities in respect of plagiarism, as set out in the University regulations, and are encouraged to seek advice from course instructors whenever necessary to ensure they avoid plagiarism in all its forms. Confidentiality This problem solving course is based upon projects of live cases/industry analysis to be studied and presented by students. The disclosed information is only for academic discussion and is strictly confidential. Any misuses of information that may cause damage to the company/ies are subject to disciplinary rules and criminal charges. The students are strongly advised to check the information they wish to reveal with their companies before presentation. In the case that you find the information sensitive you may use hypothetical data. Keeping deadlines Keeping deadlines is an important part of a businessperson's life. We will operate as "real world" businesses do; each assignment will have a specific deadline. Late assignments will be penalized by 4 reducing your credit by 10% per day. More than one week delay without prior agreement of your course instructor may cause you to fail. Written exam Witten examination takes place on selected articles First week in June. The exact date and list of selected articles shall be given during the course. Project presentation: Presentation of project takes place In last week in May and beginning of June the exact date shall be given during the course and plan for the second visit Feedback on projects: to be announced MBA- ProMA Industrial marketing and product development (Schedule, Spring 2009) DATE SESSION room TOPIC/EVENT READINGS (Additional readings may be assigned) LECTURER Course Syllabus HD lecture notes HD Article 8, 14, 18 + Handouts Article 10, 11,20 + Handouts HD Week 13 Monday March 23 15-17 3C:817 Introduction to industrial Marketing (course contents, structure and evaluation criteria, grouping, literature allocation, review Tuesday March 24 13-15 15-17 18- A37 Industrial Marketing is Different: Characteristics of Industrial Marketing A 37 Core Competency, Capabilities and Competitive Advantages Reception Dinner SB Wednesday March 25 10-12 IKP1 Supply chain management Article 3, 5, 16 + Handouts ES 13-15 A37 Product development Article 32,33,34 + Handouts TM 15-17 A37 Buyer seller relationship, bonds, problem solving strategies, network approach Article, 22, 25+ 26 + Handouts HD Friday March 27 13-15 A37 Product Development – Case To be handed over TM 15-17 A37 Product development - Case To be handed over TM 5 Week 14 Monday March 30 08-12 A37 Industrial Marketing strategies Article 1, 4, 12,13, 19, 23 + Handouts SB 13-15 A37 Product development Article 37, 38 + handouts TM Lean product development Handouts JF Product development- Managing NDP and R&D Article 35, 36 + handouts DO Project marketing, system selling and network perspective Article 7, 22 + Handouts HD Value creating strategies Article 17, 23 + Handouts CK Tuesday, March 31 08-10 A33 10-12 Wednesday, April 1 13-16 A37 Thursday April 2 17-19 2B:841 Friday, April 3 08-10 A37 Outsourcing Article 21 + handouts SB 13-16 A37 Transaction Cost Theory? Handouts SB Week 15 Monday, April 6 08-10 A37 Industrial marketing- project presentation SB 10-12 A37 Industrial marketing – Literature seminar SB 13-15 A37 Industrial Marketing- Literature seminar SB Tuesday April 7 10-12 A37 Cooperation in Product development Handouts AÖ 6 14-17 A37 Customer analysis and Industrial Buying Behavior Article 6 + Handout HD AÖ = Anna Öhrnwall Rönnbäck CK = Christian Kowalkowski ES = Erik Sandberg HD = Hossein Dadfar JF = Jörgen Furuhjelm SB = Staffan Brege TM = Thomas Magnusson Course secretary: Anna Ahlbeck, tel. + 46-13 28 1551, e-mail: anna.ahlbeck@liu.se 7