National Research University Higher School of Economics Nizhny Novgorod Course Syllabus “Marketing and Innovations (New Product Development and Consumer Adoption Process” Master Program in Marketing (Marketing of Innovation Specialization) National Research University Higher School of Economics Nizhny Novgorod Faculty of Management Course Syllabus “Marketing and Innovations (New Product Development and Consumer Adoption Process)” 080200.68 – Management Master Programin Marketing Prepared by: Fomenkov Denis, Candidate in Economics,dfomenkov@hse.ru ConfirmedbyMarketing Department«___»____________ 2012г. Head of Marketing Department Fomenkov Denis _____________________ Recommended by Faculty of Management «___»_____________ 2012г. Dean Radaev Timyr _________________________ ApprovedbyUMS HRU HSE – Nizhny Novgorod «___»_____________2012г. ChairmanProf. Petruhin Nikolaj ______________________ Niznny Novgorod, 2012 National Research University Higher School of Economics Nizhny Novgorod Course Syllabus “Marketing and Innovations (New Product Development and Consumer Adoption Process” Master Program in Marketing (Marketing of Innovation Specialization) Course Description Innovations are becoming the main source of sustainable competitive advantage for companies around the world. As marketing science deals with competitive advantage it should provide solid framework for innovations. Course “Marketing and Innovations” provides comprehensive understanding of innovations from marketing science perspective. The course is for students that are interested in commercialization of innovations both in small entrepreneurial companies and large corporations. It’s heavily based on cases taken from different high-tech industries and cover such areas as classification of innovations from marketing perspective, NPD models, opportunity development, feasibility study, strategic market planning in high-tech firms, barriers to R&Dmarketing collaboration, technology and product management, adoption and diffusion of innovations, factors affecting adoption of innovation, aligning market research with type of innovation and so on. This course will help students avoid serious marketing mistakes in commercialization of innovations and maximize marketing input at every stage of innovation process. Course outcomes The main objective of the course is to provide students with contemporary marketing knowledge that allows them to make reasonable and appropriate marketing-related decisions in context of new product development and commercialization of innovations. Upon completion, students should be able to apply marketing tools and concepts to develop and deliver successful marketing strategies required for innovative new products and services. Student Outcomes and Competencies At the completion of the course requirements, the student will be able to: Discuss the role and contributions of marketing within innovation process in organizations; Define the basic vocabulary appropriate to the field of high-tech marketing and marketing of innovations; Describe the relationship between marketing and other major business activities in new product development; Develop and deliver marketing strategies for innovations; Develop feasibility study for new products and technologies; Apply appropriate marketing research methods for analyzing new markets; Develop integrated marketing communication campaign for new products; Develop marketing plan for innovation; Distinguish among different types of innovations; Set appropriate price on new products; Understand factors that influence consumer adoption process; Identify the model of innovation process within organization. National Research University Higher School of Economics Nizhny Novgorod Course Syllabus “Marketing and Innovations (New Product Development and Consumer Adoption Process” Master Program in Marketing (Marketing of Innovation Specialization) At the completion of the course requirements, the student will have the following competences Competence Type of competen ce Descriptors Forms and methods of studying assisting in acquiring and developing competences Способен находить и оценивать новые рыночные возможности, формировать и оценивать бизнес-идеи, разрабатывать бизнеспланы создания нового бизнеса ПК-25 Be able to recognize entrepreneurial opportunities and apply knowledge and skills to exploit them for opening new businesses. Conventional lectures and expository lessons.Workshops. Casestudieson marketing innovations issues. Seminars.Group exercises and projects.Games and simulations.Roleplay. Selfhelpgroups. Class discussions. Guest lectures. Способен организовать многостороннюю (в том числе, межкультурную) коммуникацию и управлять ею СК-7 Beabletoworkinmulticulturalproj ectteam, showknowledgeofculturalpeculia rities; have capable oral communication skillstoprovehis/herpointofview, estimateandinterpretfeedback. Conventional lectures and expository lessons.Workshops. Casestudies on marketing innovations issues. Seminars.Group exercises and projects.Games and simulations.Roleplay. Selfhelpgroups. Class discussions. Guest lectures. Способен к осознанному выбору стратегий межличностного взаимодействия ПК-4 Show teamwork skills; apply appropriate methods and means to actual situations for making decisions and estimation of commercial and technological risks. Conventional lectures and expository lessons.Workshops. Casestudies on marketing innovations issues. Seminars.Group exercises and projects.Games and simulations.Roleplay. Selfhelpgroups. Class discussions. Guest lectures. Способен выявлять и формулировать актуальные научные проблемыв области менеджмента, обобщать и критически оценивать результаты, полученные отечественными и зарубежными ПК-10 Beabletodemonstratetheknowled geofcontemporaryproblemsandtr endsinmarketinginnovationsand most recentresultsofresearches. Conventional lectures and expository lessons.Workshops. Casestudies on marketing innovations issues. Seminars.Group exercises and projects.Games and simulations.Roleplay. Selfhelpgroups. Class National Research University Higher School of Economics Nizhny Novgorod Course Syllabus “Marketing and Innovations (New Product Development and Consumer Adoption Process” Master Program in Marketing (Marketing of Innovation Specialization) Competence исследователями по избранной теме Способенвыявлять данные, необходимые для решения поставленных исследовательских задач в сфере управления; осуществлять сбор данных, как в полевых условиях, так и из основных источников социальноэкономической информации: отчетности организаций различных форм собственности, ведомств и т.д., баз данных, журналов, и др., анализ и обработку этих данных, информацию отечественной и зарубежной статистики о социальноэкономических процессах и явлениях Способен разрабатывать корпоративную стратегию, стратегию бизнеса и функциональные стратегии организации Способен выявлять данные, необходимые для решения поставленных управленческих и предпринимательских задач; осуществлять сбор данных и их обработку Type of competen ce Descriptors Forms and methods of studying assisting in acquiring and developing competences discussions. Guest lectures. ПК-11 Beabletodefinedatanecessarytoes timateinnovation. Be able to apply appropriate methods to collect and analyze data for making judgments about market potential of new product. Conventional lectures and expository lessons.Workshops. Casestudies on marketing innovations issues. Seminars.Group exercises and projects.Games and simulations.Roleplay. Selfhelpgroups. Class discussions. Guest lectures. ПК-21 Be able to apply marketing tools to analyze and develop corporate strategy which cover such fields as product portfolio management, new product development and launch of new products. Be able to demonstrate the knowledge of marketing interaction with other functions in organization in new product development process. Be able to recognize type of innovation and prove implementation of different methods for marketing analysis. Be able to forecast sales of new product and deeply analyze demand on innovation. Be able to conduct analysis of competitors. Conventional lectures and expository lessons.Workshops. Casestudies on marketing innovations issues. Seminars.Group exercises and projects.Games and simulations.Roleplay. Selfhelpgroups. Class discussions. Guest lectures. ПК-26 Conventional lectures and expository lessons.Workshops. Casestudies on marketing innovations issues. Seminars.Group exercises and projects.Games and simulations.Roleplay. Selfhelpgroups. Class National Research University Higher School of Economics Nizhny Novgorod Course Syllabus “Marketing and Innovations (New Product Development and Consumer Adoption Process” Master Program in Marketing (Marketing of Innovation Specialization) Competence Type of competen ce Forms and methods of studying assisting in acquiring and developing competences Descriptors discussions. Guest lectures. Topics covered № Topic Sum Duration (hours) Practical Lectures training and workshops Unassisted preparation for classes 1st year 1 2 3 4 5 6 7 8 9 10 1 2 Review of Russian Innovation System. Assignment №7. Types of Innovations From Marketing Science Perspective and Common Characteristics of High-Tech Environment. Assignments №1, 8. Models of Innovation Process, New Product Development and Cross-Functional Interaction. Assignments №2,3,9. «Stage-Gate» approach to NPD Partnerships and Strategic Alliances in New Product Development. Assignments №4. Marketing Research and Innovations. Assignment №5. Consumer Behavior, Segmentation and Adoption Process. Assignment №12. Technology and Product Management. Assignments №13,14. Marketing Communications For Innovations. Assignment №15. Sales, Distribution Channels and Supply Chain Management in High-Tech Markets. Assignment №16. Всего 2nd year Strategic Market Planning in High-Tech Firms and Corporate Culture. Assignments №10,11. Competitive Analysis and Pricing Considerations. Assignment №6. 2 4 10 2 4 10 2 4 15 2 10 30 2 4 10 2 4 10 2 4 15 2 4 14 2 4 10 2 4 20 20 52 144 6 2 3 4 2 3 National Research University Higher School of Economics Nizhny Novgorod Course Syllabus “Marketing and Innovations (New Product Development and Consumer Adoption Process” Master Program in Marketing (Marketing of Innovation Specialization) 3 4 5 6 7 8 9 Business Models Montreaux Chocolate Case-study Facebook Case-study Bluefin Labs: The Acquisition by Twitter Case-study TaKaDu Case-study Bitmaker Labs: Innovation on Hold Casestudy Proteus Biomedical: Making Pigs Fly CaseStudy Всего 4 4 4 4 2 6 3 3 3 3 6 3 4 6 3 3 6 3 4 6 6 38 40 30 Outline of Lectures and Readings 1.Review of Russian Innovation System. Key Issues Innovation, Theoretical Conception, Technical Invention, Commercial Exploitation. ScienceandTechnologyBase in Russia. TechnologicalDevelopments. NeedsofMarket. IMAQatKyushu University. Global Trends (Russia, China, Brazil, India, Vietnam, Cambodia, Bangladesh, Indonesia). Russia’s Current Innovation Policy Spaceand Advanced Country’s Archetypical Innovation Policy Space. Size Structure of Firms in Russia. R&D Personnel by Occupation inRussia and Selected Countries. Scientific Publications and Co-Authored Articles inRussia and Selected Countries. Levels of Innovativeness in the Regions of Russia. World Development Indicators(Russia And Selected Countries). Readings 1. Shahid Yusuf, Kaoru Nabeshima (2012) Some Small CountriesDo It BetterRapid Growth and Its Causes inSingapore, Finland, and IrelandThe World Bank (Chapter 2. How Sifire Compressed Development, Chapter 3. Elements of a Learning Economy). 2. OECD (2011), OECD Reviews of Innovation Policy: Russian Federation 2011, OECD Publishing.http://dx.doi.org/10.1787/9789264113138-en (Overall assessment and recommendations, Chapter 1. Economic performance and framework conditions for innovation, Chapter 2. Innovation actors). 3. Raj M. Desai, Itzhak Goldberg (2008) Can Russia Compete?Brookings Institution Press 4. Arr, Austin (2012) Are Accelerators Losing Speed? Fast Company. Sep2012, Issue 168, p51-56. National Research University Higher School of Economics Nizhny Novgorod Course Syllabus “Marketing and Innovations (New Product Development and Consumer Adoption Process” Master Program in Marketing (Marketing of Innovation Specialization) 2.Types of Innovations from Marketing Science Perspective and Common Characteristics of High-Technology Environment. Key Issues TypesofInnovations: ProductInnovation, ProcessInnovation, OrganizationalInnovation, ManagementInnovation, Production Innovation, Commercial and Marketing Innovation, Service Innovation. Market-Pull Innovations and Technology-Push Innovations. IncrementalandRadicalInnovations. ProductVersusProcessInnovations. ArchitecturalVersus Component Innovations. Sustaining Versus Disruptive Innovations. Difference Between Breakthrough And Disruptive Innovation. Do Different Types of Innovation Rely on Specific Kinds of Knowledge Interactions? Base of The Pyramid Strategies. The Contingency Model for Hi-Tech Marketing. Examples of Implications of Contingency Theory. Common Characteristics of High-Tech Environment. MarketUncertainty. TechnologicalUncertainty. Competitive Volatility. FUD Factor: Consumer Fear, Uncertainty, and Doubt. Readings 1. Jakki J. Mohr, Sanjit Sengupta, Stanley F. Slater (2009), Marketing of High-Technology Products and Innovations: Jakki Mohr. (Chapter 1. Introduction to the World of HighTechnology Marketing) 2. Franz Todtling,Patrick Lehner, Alexander Kaufmann (2009), Do Different Types of Innovation Rely on Specific Kinds of Knowledge Interactions? Technovation 29, pp. 59– 71 3. Gerard J. Tellis, Jaideep C. Prabhu, & Rajesh K. Chandy (2009) Radical Innovation Across Nations:The Preeminence of Corporate Culture, Journal of Marketing Vol. 73 (January 2009), 3–23 4. Song, X.M.,Montoya-Weiss,M.M. (1998) Critical Development Activities for Really New Versus Incremental Products. Journal of Product Innovation Management 15(2), 124–135. 3.Models of Innovation Process, New Product Development and CrossFunctional Interaction Key Issues The Market-Based View and the Resource-Based View on Innovation. Linear Models (Technology Push, Market Pull). Simultaneous Coupling Model. Interactive Model. Network Model. Open Innovation Concept. Three Phases of New Product Development Process: Idea Phase (Idea Generation and Screening), Concept Phase (Concept Development, Concept Testing, Business Analysis), Launching Phase. Idea Phase:Problem Solution, Lateral Thinking, Mind Mapping, Brainstorming, Morphological Analysis, Synectics. Dimensions of A Market Orientation. New Product Development Teams. The Effectiveness of Cross-Functional Teams. National Research University Higher School of Economics Nizhny Novgorod Course Syllabus “Marketing and Innovations (New Product Development and Consumer Adoption Process” Master Program in Marketing (Marketing of Innovation Specialization) R&D – Marketing Interaction. Barriers to R&D – Marketing Collaboration. Different Orientations Between R&D and Marketing Personnel. Achieving R&D – Marketing Integration. Assessing the Degree of R&D – Marketing Integration. Readings 1. Jakki J. Mohr, Sanjit Sengupta, Stanley F. Slater (2009), Marketing of High-Technology Products and Innovations: Jakki Mohr. (Chapter 4, Market Orientation and CrossFunctional Interaction) 2. Holger Ernst, Wayne D. Hoyer, & Carsten Rübsaamen (2010),Sales,Marketing, and ResearchandDevelopment Cooperation AcrossNew Product Development Stages:Implications for Success, Journal of Marketing, Vol. 74 (September 2010), 80–92 3. Yu-An Huanga, Hsien-JuiChungb, ChadLin (2009), R&D Sourcing Strategies:Determinantsand Consequences, Technovation29, 155–169 4. Ruth Maria Stock & Nicolas Andy Zacharias (2011), Patterns and Performance Outcomes of Innovation Orientation, Journal of the Academy of Marketing Science 5. Song, X.M.,Montoya-Weiss,M.M.(1998), Critical Development Activities for Really New Versus Incremental Products. Journal of Product Innovation Management 15(2), 124–135. 6. Griffin, A., Hauser, J.R. (1996), Integrating R &D and Marketing: AReview and Analysis of the Literature, Journal of Product Innovation Management, 13 (3), pp. 191-215. 7. Cooper, R.G., Kleinschmidt, E.J. (1995),Benchmarking The Firm's Critical Success Factors in New Product Development, The Journal Of Product Innovation Management 12 (5), pp. 374-391. 4. «Stage-Gate» Approach to NPD Key Issues What is Stage-Gate? Seven Goals of a New-Product Idea-to-Launch System Discovery – The Quest for Breakthrough Ideas The Front-End Work – From Discovery to Development Picking the Winners – Investing in the Right Projects Development, Testing, and Launch Implementing Stage-Gate Readings 5.Partnerships and Strategic Alliances in New Product Development Key Issues Partnerships at Apple. Some Characteristics of a Knowledge-Based Economy. Types of Partnerships. Vertical Partnerships. Relationships With Suppliers. Supplier-OEM Vertical Relationship. Early Supplier Involvement (ESI). Relationships With Channel Members. RelationshipsWithCustomers. National Research University Higher School of Economics Nizhny Novgorod Course Syllabus “Marketing and Innovations (New Product Development and Consumer Adoption Process” Master Program in Marketing (Marketing of Innovation Specialization) Horizontal Partnerships. Complementary Alliances. Competitive Alliances. Industry Consortium. Reasons for Partnering Across the Stages of the Product Life Cycle. Setting Industry Standards Strategies. Licensing and OEM Agreements. Strategic Alliances. DiversificationintoComplementaryProducts. Aggressive Product Positioning. Drawbacks of a Licensing Strategy. Three Factors Helps a Firm Decide Which Strategy to Pursue. Barriers to Imitation. A Firm's Skills and Resources. The Existence of Capable Competitors. Partnership and Entry Strategies in Foreign Markets. Joint Ventures in China. Reading 1. Jakki J. Mohr, Sanjit Sengupta, Stanley F. Slater (2009), Marketing of High-Technology Products and Innovations: Jakki Mohr. (Chapter 5 Partnership, Alliances, and Customer Relationships Partnerships and Strategic Alliances) 2. Kumar, S.,Snavely,T. (2004) OutsourcingandStrategicAlliances for Product Development: a Case ofBantaDigitalGroup.Technovation24 (12), 1001–1010. 3. Orly Yeheskel Oded Shenkar. Avi Fiegenbaum, and Ezra Cohen (2001), Cooperative Wealth Creation: Strategic Alliances in Israeli Medical-Technology Ventures, Academy OfManagement Executive,Vol. 15. 4. Zhao, Y.,Calantone,R.J., (2003), The Trend Toward Outsourcing in New Product Development: Case Studies in Six Firms. International Journal of Innovation Management, Vol.7(1), pp.51–66. 6.MarketingResearchandInnovations Key Issues Market Research Expenditures & Market Research Staffing. AligningMarketResearchwithTypeofInnovation. Marketing Research Constrained by User Experience. The Effect of Prior Experience on Users’ Ability to Generate Or Evaluate Novel Products.Similarity-Dissimilarity Ranking. Lead Users. Analyzing Lead User Data. Projecting Lead User Data onto the General Market of Interest. Customer Visits. ElementsofEffectiveCustomerVisitPrograms. InsightsFromEmpathicDesign. Process to Conduct Empathic Design. Steps in the Lead User Process. Conjoint Analysis. Quality Function Deployment. Implementation of Quality Function Deployment. Biomimicry. Readings 1. Jakki J. Mohr, Sanjit Sengupta, Stanley F. Slater (2009), Marketing of High-Technology Products and Innovations: Jakki Mohr. (Chapter6 Marketing Research in High-Tech Markets). 2. Roberto Verganti (2011) How Companies Can Systematically Create Innovations That Customers Don’t Even Know They Want, Harvard Business Review, October, pp. 114120 National Research University Higher School of Economics Nizhny Novgorod Course Syllabus “Marketing and Innovations (New Product Development and Consumer Adoption Process” Master Program in Marketing (Marketing of Innovation Specialization) 3. Eric Von Hippel (1986), Lead Users: A Source of Novel Product Concepts, Management Science, Vol.32, No.7 4. Hoeffler,.S (2003), Measuring Preferences for Really New Products, Journal of Marketing Research,Vol.40, No.4, pp. 406–420 5. Page A. L., Rosenbaum, H.F (1992), Developing an Effective Concept-Testing Program for Consumer Durables, Journal of Product Innovation Management, Vol.9, No.4, pp. 267–277. 6. Peng, L. Finn, A (2008), Concept Testing: the State of Contemporary Practice, Marketing Intelligence and Planning, Vol.26, No.6, Pp. 649–674. 7.Consumer Behavior, Segmentation and Adoption Process. Key Issues Issues in Understanding High-Tech Customers. Design Thinking Factors. Adoption and Diffusion of Innovations. Factors Affecting Adoption of Innovation. Relative Advantage. Compatibility. Complexity. Trialability. Ability to Communicate Product Benefits. Observability. Categories of Adopters. Innovators. Early Adopters. Early Majority. Late Majority. Laggards. Crossing the Chasm. Identify a Beachhead. Inside the Tornado. Innovation-DrivenSegments. Market-DrivenSegments. Customer Migration Decisions. Consumers’ Paradoxical Relationships with Technology And Unintended Consequences. Readings 1. Jakki J. Mohr, Sanjit Sengupta, Stanley F. Slater (2009), Marketing of High-Technology Products and Innovations: Jakki Mohr. (Chapter7 Understanding High-Tech Customers). 2. Daniel Yankelovich and David Meer (2006) Rediscovering Market Segmentation, Harvard Business Review, February, pp.122-131 3. Segmenting When It Matters, Business Strategy Review Spring 2010, pp. 46-49. 4. Jill Avery and Thomas Steenburgh (2012), Target the Right Market. A software company debates its strategic focus, Harvard Business Review, October, pp.119-123. 5. Arun Lakshmanan & H. Shanker Krishnan (2011), The Aha! Experience: Insight andDiscontinuous Learning inProduct Usage, Journal of Marketing, Vol. 75 (November 2011), 105–123 6. Cameron Philip (2007), Innovation and new product development: Sky+, a mini case study, The Marketing Review, 2007, Vol. 7, No. 4, pp. 313-323. 7. Jacob Goldenberg, Sangman Han, Donald R. Lehmann, & Jae Weon Hong (2009), The Role of Hubs in the Adoption Process, Journal of Marketing, Vol. 73 (March), pp. 1–13. 8.Technology and Product Management. Key Issues Technology Mapping. Technology Identification. Patent Data Analysis. Use of a Matrix Map. Technology Classification by Matrix Map. Make Decisions about Technology Additions. Make Decisions about Commercializing, Licensing. Ongoing Management. Technology Transfer Considerations. Product Architecture. Modularity. Platforms. Derivatives. CustomizingComplexProducts. National Research University Higher School of Economics Nizhny Novgorod Course Syllabus “Marketing and Innovations (New Product Development and Consumer Adoption Process” Master Program in Marketing (Marketing of Innovation Specialization) ModularDesigns. IBM’s Experience. Visible Design Rules.Competing in aModular Environment. Product Architecture. The Arrangement of Functional Elements. A Function Structure. A Typology of Product Architectures. Types of Mappings From Functional Elements to Physical Components. Interface Coupling. Types of Modular Architectures: Slot, Bus and Sectional. Developing Services as Part of the Hi-Technology Product Strategy. Product Change. Product Architecture Determines How The ProductCan Be Changed. Change Within the Life of a Particular Artifact. Change Across Generations of the Product. Product Variety.Variety and Flexibility. Product Performance. Local Performance Characteristics and Modular Architectures. Global Performance Characteristics and IntegralArchitecture. Differences in Product Development Management According to Architectural Approach. Component Standardization. What are the Implications of Standardization? Intellectual Property Considerations. Types of Intellectual Property Protection. Rationale for Protection of Intellectual Property. Managing Intellectual Property. Readings 1. Jakki J. Mohr, Sanjit Sengupta, Stanley F. Slater (2009), Marketing of High-Technology Products and Innovations: Jakki Mohr. (Chapter8 Technology and Product Management). 2. Sunghae Jun, Sang Sung Park, Dong Sik Jang, (2012),Technology Forecasting Using Matrix Map and PatentClustering, Industrial Management & Data Systems, Vol. 112 Iss: 5 pp. 786 – 807 3. Qu, T.; Bin, S.; Huang, George Q.; Yang, H. D. Two-Stage Product Platform Development for Mass Customization, International Journal of Production Research. Apr2011, Vol. 49 Issue 8, p2197-2219. 23p. 4. Liu, Zhuo; Wong, Yoke San; Lee, Kim Seng, Modularity Analysis and Commonality Design: a Framework for the Top-Down Platform and Product Family Design, International Journal of Production Research. Jun2010, Vol. 48 Issue 12, pp. 3657-3680. 24p. 5. Carliss Y. Baldwin and Kim B. Clark (1997) Management In an Age of Modularity, Harvard Business Review, October. 6. Karl Ulrich (1993), The Role of Product Architecture in the Manufacturing Firm, Research Policy 24 (1995) 419-441 7. Gertner, Jon; Kratochwill, Lindsey. The Risk of a New Machine, Fast Company, Apr2012, Issue 164, p104-133. 8p 9.Marketing Communications for Innovations. Key Issues Integrated Marketing Communications. Media Advertising. Public Relations/Publicity. Direct Marketing. Trade Shows, Seminars, And Training. Catalogs, Literature, And Manuals. Telemarketing. Personal Selling. Internet Advertising And Promotion. Display Ads. Search Ads. Pricing Models For Online Advertising. Optimizing Site for Search Engine Rankings. Web 2.0 And Web 3.0 Technologies. Viral Marketing. Mobile Marketing. Marketing in Virtual Reality Environment. Website Development. Website Design. Building Site Traffic. Evaluating Website Effectiveness. Geo-Mapping. National Research University Higher School of Economics Nizhny Novgorod Course Syllabus “Marketing and Innovations (New Product Development and Consumer Adoption Process” Master Program in Marketing (Marketing of Innovation Specialization) Readings 1. Jakki J. Mohr, Sanjit Sengupta, Stanley F. Slater (2009), Marketing of High-Technology Products and Innovations: Jakki Mohr. (Chapter11 Marketing Communication Tools for High-Tech Markets). 2. Teixeira, Thales (2012), The New Science of Viral Ads, Harvard Business Review. Mar2012, Vol. 90 Issue 3, p25-27 3. Kuang, Cliff (2012), Good Design Is Good Business, Fast Company. Oct2012, Issue 169, p78-89. 10p. 4. Hof, Robert D. Facebook's New Ad Model: You, Forbes; 12/5/2011, Vol. 188 Issue 10, p106-110, 4p 5. Thurston, Baratunde; Bergl, Skylar; Feifer, Jason; Friedell, Dan; Guerra, Erasmo; Karpel, Ari; Kelman, Elizabeth; Lidsky, David; Mccue, Matt; Mullany, Anjali; Rhodes, Margaret; Schomer, Stephanie. The Social Media Road Map. (Cover Story). Fast Company. Sep2012, Issue 168, P68-89. 22p. 10. Sales, Distribution Channels and Supply Chain Management in High-Tech Markets. Key Issues Issues in Distribution Channel Design And Management. Channel Structure. Direct Channels. Direct Sales. Sales Over The Company Website. Company-Owned Retail Outlets. Indirect Channels. How Big A Sales Force Types Of Intermediaries. Distributors. Resellers. Value-Added Resellers. Systems Integrators. Number Of Intermediaries To Use. Retail Distribution Into Brick And Mortar Stores, Partnerships With Marketing Companies That Have Established Marketing And Distribution Channels, E-Commerce Websites, Licensing To Another Company In Exchange For A Royalty On Sales. Evolution In Channels Structure Over The Technology Life Cycle. Channel Management. Governance Mechanisms. Legal Issues. Channel Performance. Managing Hybrid Channels: Effective Multi-Channel Marketing. Distribution For “Digital” Goods. Understanding Gray Markets. Supply Chain Management Technologies. Readings 1. Jakki J. Mohr, Sanjit Sengupta, Stanley F. Slater (2009), Marketing of High-Technology Products and Innovations: Jakki Mohr. (Chapter9 Distribution Channels and Supply Chain Management in High-Tech Markets). 2. Leslie, Mark; Holloway, Charles A. The Sales Learning Curve. (cover story). Harvard Business Review. Jul/Aug2006, Vol. 84 Issue 7/8, p115-123. 9p. 3. Gilliland, Michael; Guseman, Sam. Forecasting New Products by Structured Analogy Journal of Business Forecasting. Winter2009, Vol. 28 Issue 4 2nd YEAR 1. Marketing Strategy and Corporate Culturein High-Tech Firms Key Issues National Research University Higher School of Economics Nizhny Novgorod Course Syllabus “Marketing and Innovations (New Product Development and Consumer Adoption Process” Master Program in Marketing (Marketing of Innovation Specialization) Frameworks to Set Marketing Priorities and to Allocate Resources. “Rule-Of-Thumb” Approaches. Matrix-Based Strategic Approaches. Statistical Analyses. Decision Modelling Approaches. Customer-Led and Market-Oriented Companies. Framework for Strategic Market Planning in Hi-Tech Firms. Competitive Advantage. Resources and Competencies. Core Competencies. Test of Competitive Advantage. Evaluating Competitive Advantage. Key Strategy Decisions. The “All Benefits” Value Proposition. The “Favorable Points of Difference” Value Proposition. The “Resonating Focus” Value Proposition. Strategy Types. Product Leader (Prospector). Fast Follower (Analyzer). Customer Intimate (Differentiated Defender). Operationally Excellent (Low-Cost Defender). Strategy Creation: Approaches and Structures. Emergent Versus Formal Planning. Marketing Performance Measurement. Readings 1. Jakki J. Mohr, Sanjit Sengupta, Stanley F. Slater (2009), Marketing of High-Technology Products and Innovations: Jakki Mohr. (Chapter 2, Strategic Market Planning in HighTech Firms) 2. Ranjay Gulati, Jason Garino (2000), “Get the Right Mix of Bricks and Clics,” Harvard Business Review, May-June 3. Martin S. Schilling (2009), Beyond Matrices and Black-Box Algorithms: Setting Marketing Priorities with Marketing Strategy Conferences, Journal of Marketing Management, Vol. 25, No. 5-6, pp. 571-590 4. Amazon, Apple, Facebook, and Google. Fast Company. Mar2012, Issue 163, p72-81. 6p 5. Safian, Robert (2012), Generation Flux. (Cover Story),Fast Company, Feb2012, Issue 162, p60-97, 13p 2. Competitive Analysis and Pricing Considerations. Key Issues Short, Volatile Product Life Cycle. Preassure on Price/Performance Rations. Network Externalities. Unit-One Cost. Customers’ The 3C’s of Pricing. Costs. Competition. Customers. Consolidation the 3C’s into Successful Strategy. Customer-Oriented Pricing. Implications of Customer-Oriented Pricing. Solutions To The Technology (Pricing) Paradox. Outright Sale Of Know-How Versus Licensing Agreements. Usage Restrictions. Readings 1. Jakki J. Mohr, Sanjit Sengupta, Stanley F. Slater (2009), Marketing of High-Technology Products and Innovations: Jakki Mohr. (Chapter10 Pricing Considerations in High-Tech Markets). 2. Ho, Jonathan C.; Chung-Shing Lee (2008), The DNA Of Industrial Competitors, Research Technology Management. Jul/Aug2008, Vol. 51 Issue 4, p17-20. 4p. National Research University Higher School of Economics Nizhny Novgorod Course Syllabus “Marketing and Innovations (New Product Development and Consumer Adoption Process” Master Program in Marketing (Marketing of Innovation Specialization) 3. Jun Li; Netessine, Serguei (2012) Who are my Competitors? Let the Customer Decide, INSEAD Working Papers Collection. 2012, Issue 84, p1-33. 35p. 4. Sørensen, Hans Eibe (2009), Why competitors matter for market orientation, European Journal of Marketing. 2009, Vol. 43 Issue 5/6, p735-761. 27p 4. Business Models 5. Montreaux Chocolate Case-study Consumer marketing; Forecasting; International R&D; Market research; Product positioning; Quantitative analysis Andrea Torres, director of new product development at a high-end chocolate confectionery company, leads her team through a carefully sequenced program of market research to support the development and launch of a new product, healthy dark chocolate with fruit. This is the first time Montreaux USA, an offshoot of a Swiss confectioner, has created a product specifically for U.S. chocolate consumers. The case explains the steps Torres and her NPD team have completed and describes the decisions that lie ahead, a few months in advance of the anticipated launch. A challenging situation is intensified by a competitor also having tested a dark-chocolate-with-fruit product that was likely to be introduced into the U.S. marketplace in the near future. Students must perform a quantitative analysis as part of their work. 5. Facebook Case-study Advertising media; Different ways of monetizing social relationships. Competitive strategy; Network effects; Networking; Social networks As Facebook topped one billion monthly users in October 2012, the online social network continued to face questions about how best to monetize its surging traffic. The company could invest further in new advertising products, which represented the majority of the revenue thus far, or concentrate on the Facebook Platform and help third-party developers create and distribute their own applications. After a highly anticipated yet largely disappointing initial public offering (IPO), Facebook's stock price steadily declined. It became critical for the Facebook team to identify sustainable growth opportunities, particularly as more of its user base accessed the site via mobile devices. 6.Bluefin Labs: The Acquisition by Twitter Case-study National Research University Higher School of Economics Nizhny Novgorod Course Syllabus “Marketing and Innovations (New Product Development and Consumer Adoption Process” Master Program in Marketing (Marketing of Innovation Specialization) social media metrics social media monitoring Social TV Just weeks after Twitter's decision to acquire Bluefin Labs, this case explores how Twitter can use its social media monitoring data. Bluefin Labs has built a system that gathered millions of online comments in an effort to build new metrics for TV programs and brand advertising. With data from Twitter and other social sites, expressions, not just impressions, can now be aggregated and measured, and used to calibrate brand performance and to sell media time. A second theme of the case is what is called Social TV, the audience engagement that results when people watch television with a smartphone or tablet in hand, participating in a virtual community of real time TV watchers. 7.TaKaDu Case-study The challenges of a company trying to scale and move beyond early adopters for its innovation Economic case for customers that care about ROI Segment potential business customers and determine who to target. In December 2012, Amir Peleg, founder and CEO of TaKaDu, reflected on how to position his young firm for the next fiscal year and beyond. The small Israeli startup had developed an innovative software system that used patented algorithms and statistical analysis to detect problems such as leaks, bursts, and faulty equipment within a water utility's infrastructure. Such problems caused significant water and energy loss at many utilities, led to service interruptions for consumers, and were only getting worse as the existing infrastructure aged. Since its founding in 2009, TaKaDu had attracted nine customers from around the world. However, as Peleg and his executive team debated how to allocate funding for the upcoming year, he needed to decide whether to focus on R&D to improve and add to TaKaDu's existing software and become the clear technology leader, or move ahead with its current offering and focus on getting new customers to penetrate the market as quickly as possible before competition intensified. Some in the company called for devoting the bulk of TaKaDu's resources to making the system more easily deployable, as deploying the TaKaDu service with a new customer could take up to two months. Peleg also wondered if the company should continue to pursue sales leads from anywhere in the world, or focus on one geographic market (and if so, what region should he choose)? An Australian water utility had made a public announcement it was accepting bids to implement a smart water network monitoring system and Peleg wanted to discuss if and how aggressively TaKaDu should bid on the contract with his management team. TaKaDu already had one Australian customer, was this the region to focus on? 8. Bitmaker Labs: Innovation on Hold Case-study Rapid prototyping Revenue models National Research University Higher School of Economics Nizhny Novgorod Course Syllabus “Marketing and Innovations (New Product Development and Consumer Adoption Process” Master Program in Marketing (Marketing of Innovation Specialization) Inspired by software development boot camps in New York and San Francisco, Bitmaker Labs has just launched a similar offering but without considering the operational constraints unique to doing business in Canada. The result is governmental scrutiny just as the business is taking off with 42 students enrolled, each having paid $7,000 for a nine-week web development boot camp. Government investigators raid Bitmaker Labs, confiscating financial documents and threatening penalties and possible jail time for running an unregistered career college. 9.Proteus Biomedical: Making Pigs Fly Case-Study Licensing Business development issues in healthcare ventures. Proteus is a healthcare start-up that has developed technology to embed electronics for computing and sensing in existing medical devices and drugs. The technology could potentially change the basis of competition in the pharmaceutical industry. The company is currently considering a number of licensing and business development deals and must choose which one(s) to pursue. Overview – assignments No. 1. 2. 3. 4. 5. 6. Assignments – Individuals (in LMS) Identifying type of innovation from marketing perspective. Morphologicalanalysis (development of multi-dimensional matrix for new products) Sales-Marketing-R&D cooperation in NPD (test of hypotheses) Analysis of strategic alliancesin NPD Marketing research for international startup Competitive analysis of anew product No. 7. Assignments - Group Comparative analysis of national innovation systems (Singapore, Israel, Germany, Finland, China, Brazil, India) Analysis of market and technology risks (case-study “Stem cells storage company”) "We want to go fromidea to end-market in six weeks" (case-study Intuit ) “Your Strategy Needs a Strategy” (Choose approach to marketing strategy development for high-tech companies) Analysis of Tesla Motors marketing strategy Analysis of adoption process Analysis of applications for grants Hype Cycle as a tool to develop technology map Launch strategy development (guest instructor) New product sales forecasting 8. 9. 10. 11. 12. 13. 14. 15. 16. Types of control Тип кон- Форма контроля троля 1 1 год 2 3 4 1 2 год 2 3 Параметры 4 National Research University Higher School of Economics Nizhny Novgorod Course Syllabus “Marketing and Innovations (New Product Development and Consumer Adoption Process” Master Program in Marketing (Marketing of Innovation Specialization) Текущий Test (неделя) Homework Итоговый Экзамен 5 6 3 * 3 2 * Test, 25 questions (multiple choice, true or false and open questions). 1. Analysis of new product development strategic alliances (2-5 pages, 12 Times New Roman). 2. Competitive analysis of a new product (3-6 pages, 12 Times New Roman) 3. Analysis of entry barriers 4. Marketing research and new product 5 open questions Teaching Strategy Conventional lectures and expository lessons are only small part of the course.Other classes includeworkshops, case-studies addressing marketing innovations issues,firm strategies and market problems in commercialization of innovations, seminars,group exercises and projects,games and simulations,roleplay,self-helpgroups,class discussions and guest lectures. In order to stimulate active learning, classes will be discussion-oriented. Quality participation is based on the quality of the insights exhibited, the student's ability to maintain continuity of discussion (i.e., pays attention to existing discussion/prior comments) and answer follow-up questions (which requires some degree of thought about the material - above and beyond mere reading - prior to class). Grades and Components of Assessment 1st year 𝑸𝒄𝒖𝒎𝒖𝒍𝒂𝒕𝒊𝒗𝒆 = 𝟎, 𝟑 ∗ 𝑸𝒐𝒏𝒈𝒐𝒊𝒏𝒈 𝒄𝒐𝒏𝒕𝒓𝒐𝒍 + 𝟎, 𝟒 ∗ 𝑸𝒈𝒓𝒐𝒖𝒑 𝒂𝒔𝒔𝒊𝒈𝒎𝒆𝒏𝒕𝒔 𝒄𝒍𝒂𝒔𝒔 𝒑𝒂𝒓𝒕𝒊𝒄𝒊𝒑𝒂𝒕𝒊𝒐𝒏 𝒂𝒏𝒅 𝒆𝒗𝒊𝒅𝒆𝒏𝒄𝒆 𝒐𝒇 𝒑𝒓𝒆𝒑𝒂𝒓𝒂𝒕𝒊𝒐𝒏 + 𝟎, 𝟑 ∗ 𝑸 𝒊𝒏𝒅𝒊𝒗𝒊𝒅𝒖𝒂𝒍 𝒂𝒔𝒔𝒊𝒈𝒎𝒆𝒏𝒕𝒔 𝑸𝒐𝒏𝒈𝒐𝒊𝒏𝒈 𝒄𝒐𝒏𝒕𝒓𝒐𝒍 = 𝟎, 𝟔 ∗ 𝑸𝒕𝒆𝒔𝒕 + 𝟎, 𝟒 ∗ 𝑸𝒉𝒐𝒎𝒆𝒘𝒐𝒓𝒌 𝑸𝒇𝒊𝒏𝒂𝒍 = 𝟎, 𝟔 ∗ 𝑸𝒄𝒖𝒎𝒖𝒍𝒂𝒕𝒊𝒗𝒆 + 𝟎, 𝟒 ∗ 𝑸𝒇𝒊𝒏𝒂𝒍 𝒐𝒓𝒂𝒍 𝒆𝒙𝒂𝒎𝒊𝒏𝒂𝒕𝒊𝒐𝒏 2nd year National Research University Higher School of Economics Nizhny Novgorod Course Syllabus “Marketing and Innovations (New Product Development and Consumer Adoption Process” Master Program in Marketing (Marketing of Innovation Specialization) 𝑸𝒄𝒖𝒎𝒖𝒍𝒂𝒕𝒊𝒗𝒆 = 𝟎, 𝟑 ∗ 𝑸𝒉𝒐𝒎𝒆𝒘𝒐𝒓𝒌 + 𝟎, 𝟒 ∗ 𝑸𝒈𝒓𝒐𝒖𝒑 𝒂𝒔𝒔𝒊𝒈𝒎𝒆𝒏𝒕𝒔 𝒄𝒍𝒂𝒔𝒔 𝒑𝒂𝒓𝒕𝒊𝒄𝒊𝒑𝒂𝒕𝒊𝒐𝒏 𝒂𝒏𝒅 𝒆𝒗𝒊𝒅𝒆𝒏𝒄𝒆 𝒐𝒇 𝒑𝒓𝒆𝒑𝒂𝒓𝒂𝒕𝒊𝒐𝒏 + 𝟎, 𝟑 ∗ 𝑸 𝒊𝒏𝒅𝒊𝒗𝒊𝒅𝒖𝒂𝒍 𝒂𝒔𝒔𝒊𝒈𝒎𝒆𝒏𝒕𝒔 𝑸𝒇𝒊𝒏𝒂𝒍 = 𝟎, 𝟔 ∗ 𝑸𝒄𝒖𝒎𝒖𝒍𝒂𝒕𝒊𝒗𝒆 + 𝟎, 𝟒 ∗ 𝑸𝒇𝒊𝒏𝒂𝒍 𝒐𝒓𝒂𝒍 𝒆𝒙𝒂𝒎𝒊𝒏𝒂𝒕𝒊𝒐𝒏 Questions for Exam 1. 2. 3. 4. 5. 6. 7. 8. What is marketing concept? Why has customer orientation been criticized? What is the market orientation concept? What is the customer-led business? What marketing tools does customer-led business use? What customer-led businesses could you name? What is the problem with customer-led? Why is the value of traditional market research tools limited when it comes to developing innovative products or services? 9. What is the market-oriented business? 10. What marketing tools do market-oriented business use? 11. What is ‘probe and learn process? 12. What are the contributions of sales in NPD? 13. What is contribution of sales to NPD performance on each stage? 14. What is product development stage 15. What is implementation stage 16. What is launch stage? 17. What is the value proposition? What are the three basic types of value proposition? 18. What are the advantages of being a Product Leader (Prospector)? What are the risks? 19. What are core competencies? Give an example of a firm’s core competencies? 20. What is competitive advantage? 21. Develop a marketing dashboard composed of 10 to 15 key metrics for a Product Leader. 22. What is the culture of innovativeness? What factors make it hard for firms to remain innovative over time? 23. What is unlearning and why is it important? 24. What are core rigidities? How do they inhibit innovativeness? 25. What is innovator’s dilemma? How does it inhibit innovativeness? 26. What is the purpose of cross-functional product development teams? 27. What are the characteristics of cross-functional teams that produce highly successful products? 28. What is R&D – marketing interaction? Why is it important in high-tech companies? 29. What are the barriers to effective R&D – marketing interaction? 30. What are the ways to facilitate effective interaction between R&D and marketing personnel? What is knowledge-based economy? What are some of its characteristics? 31. What is meant by phrase “The World Is Flat”? 32. What are the various types of partnerships a firm might form? Provide an example of each? 33. What are the various reasons for a firm to form partnership? 34. What are the three factors a company should consider in choosing its strategy to set industry standards? National Research University Higher School of Economics Nizhny Novgorod Course Syllabus “Marketing and Innovations (New Product Development and Consumer Adoption Process” Master Program in Marketing (Marketing of Innovation Specialization) 35. What are the four strategies a firm has to set industry standards? What are the pros and cons of each? 36. What is open innovation? 37. Why are new product alliances more difficult to manage than other types of alliances? How should companies manage these alliances to generate successful new product innovations? 38. How marketing research techniques must be matched to the type of innovation to ensure greater success and insight? 39. What is concept testing and how is it used by high-tech marketers? 40. What is conjoint analysis, and how can high-tech marketers use it to refine the product development process? 41. What is customer visit program? 42. What is empathic design? 43. Who are lead users? 44. What factors influence a customer’s potential adoption of an innovation? 45. What are categories of adopters and their characteristics? What are the appropriate marketing strategies for each of the categories? 46. What is the chasm? 47. What are the key decisions a company must make to cross the chasm? 48. How does segmentation depend on degree of innovativeness? 49. What are the steps in segmentation? 50. What is the digital convergence? 51. What is a technology map? 52. What is the “make-versus-buy” decision? 53. Describe what-to-sell continuum. 54. What factors affect a firm’s decision about what to sell? 55. What is modularity? What are pros and cons of following a modular approach to product design? 56. What is a product platform? 57. What is bricks-and-clicks distribution model? 58. The simultaneous presence of market uncertainty, technological uncertainty, and competitive volatility characterizes most high-tech environments. Explain. 59. What is the FUD factor? 60. What is a dominant design? Why is it important in high-tech markets? 61. What are the factors giving rise to technological uncertainty? 62. What is convergence? How does it contribute to competitive volatility? 63. What is a technology life cycle? 64. What are network externalities? 65. Explain the following types of innovations: incremental versus breakthrough, product versus process, sustaining versus disruptive, organizational innovations. 66. What is the contingency theory of high-technology marketing? What marketing tools are appropriately used for incremental innovations? What marketing tools are appropriately used for breakthrough (radical) innovations? 67. Does high-tech marketing need to be different from marketing of traditional products? Why? 68. What is a knowledge-based economy? What are some of its characteristics? National Research University Higher School of Economics Nizhny Novgorod Course Syllabus “Marketing and Innovations (New Product Development and Consumer Adoption Process” Master Program in Marketing (Marketing of Innovation Specialization) Prepared by Fomenkov Denis