Fisher – Marketing Management Page 1

UNIVERSITY OF ALBERTA DEPARTMENT OF MARKETING, BUSINESS ECONOMICS AND LAW

MARKETING MANAGEMENT (MARK 502) WINTER 2018 (WED 9-11:50 AM IN BUS B 5; WED 2-4:50 PM IN BUS 3-10)

Professor Robert Fisher Phone: 780-492-5922 Office: 4-30L E-mail: rfisher1@ualberta.ca Web Page: http://www.bus.ualberta.ca/rfisher

COURSE OBJECTIVES Welcome to Marketing Management! The concepts and skills learned in this course will enable you to develop effective marketing strategies. For those of you not planning to go into marketing positions it will provide you with the tools and concepts to 1) contribute to the development of marketing strategies for your organization, and 2) to constructively evaluate the marketing strategies developed by others. The emphasis throughout is on applying marketing ideas and techniques to create cash flow and profits. In designing this course, I recognize that most individuals in this class have no marketing experience and do not plan to have a career in marketing. Nevertheless, the course contains some very challenging marketing cases. Why? Marketing is central to the achievement of organizational goals for all types of businesses, nonprofits, and even governments. An understanding of marketing concepts and decision making will help you successfully find a job and advance in your chosen career. By virtue of your admission to the School’s MBA Program, I know that you are ambitious and that you have strong intellectual skills. I hope that you will: (a) develop a curiosity and interest in marketing, (b) acquire sufficient skills to launch your career, (c) maintain a permanent market orientation, whatever your career path, and (d) enjoy the marketing classes. The objectives of the course are:

1. To develop your marketing decision-making skills. You should leave the course with a well-developed ability to:

analyze the marketing and business environment in which an organization is operating,

develop an effective marketing strategy that drives firm objectives, and implement the strategy.

2. To understand and apply major marketing concepts, such as market segmentation,

target marketing, positioning, value propositions, and branding.

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3. To improve your familiarity with a range of marketing knowledge, practice, and

terminology. By the end of the course, you will be able to converse intelligently with marketing managers and understand the marketing situation in a variety of industries and contexts.

At a broader level, the class is designed to help you develop your leadership abilities. Good leaders are able to understand a complex business situation, develop an effective solution that is consistent with the firm’s resources and objectives, and implement that solution through sound management. Hence, this course gives you the opportunity to solve important marketing problems that have been faced by actual business firms.

ACHIEVING THE COURSE OBJECTIVES 1. Case Materials Cases are central to this course. Some of these cases are long and complex, but they closely mirror the actual decision situations you will face in the "real world." Through these cases you will develop the skills to come to grips with complex, amorphous, marketing situations. You may find it uncomfortable to make decisions -- even after you have done a thorough analysis. Often, some of what you consider to be key pieces of information will be missing; you will have to make reasonable assumptions in order to arrive at a decision. This mirrors reality. Although in the real world you sometimes have more time and additional information, these elements will not necessarily contribute to better decisions. In order to get the maximum benefit from our discussion of cases, it is essential that you thoroughly prepare the case for each class. This requires much more than simply reading the case, or having answers to the questions posed in the assignment. For each case, you should have done a comprehensive analysis and arrived at a personal decision as to what strategy the organization should adopt. I strongly urge you to discuss cases with others in the class before our class discussion. Always take a personal position before coming to class, and be willing to discuss and promote your position. You will find the course much more interesting and involving when you are actively involved in class discussions. 2. Lecture/Discussions In our case discussions you should be trying to develop your marketing decision-making skills. After each course module (a series of cases on a specific topic), we will typically have a lecture/discussion on some of the key conceptual areas or issues raised in that module. These lecture/discussions will summarize our progress to date, emphasize key points in the course, and organize and complement materials covered in the cases and readings.

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3. Cases, Readings, and Text The course pack contains the cases and educational readings we will be using during the year. The course pack can be purchased as follows:

1. Go to the Ivey Publishing website at www.iveycases.com 2. Log in to your existing account or click "Register" to create a new account and follow the

prompts to complete the registration. If registering, choose the "Student User" role. 3. Click on this link or copy into your

browser: https://www.iveycases.com/CoursepackView.aspx?id=14940 4. Click "Add to Cart". 5. You may choose to order in either print or digital format.

o To order the material in digital format, check "digital download" and click "OK". o To order a printed copy for delivery, enter the print quantity required and click "OK".

Please note that shipping charges will apply. 6. Go to the Shopping Cart (located at the top of the page), click "Checkout", and complete the

checkout process. 7. When payment has been processed successfully, an Order Confirmation will be emailed to you

immediately and you will see the Order Confirmation screen. o If you ordered digital copies: Click "Download your Digital Items" or go to "My

Orders" to access the file. o If you ordered printed copies: Your order will be printed and shipped within 2 to 3

business days.

IMPORTANT: Access to downloadable files will expire 30 days from the order date, so be sure to save a copy on your computer. The downloadable file is a PDF document that can be opened using Adobe Reader. This material is for your personal use only and is not to be shared or distributed in any form. Questions? Contact Ivey Publishing during business hours. Ivey Publishing Ivey Business School Western University e. cases@ivey.ca t. 519.661.3208 | tf. 800.649.6355 www.iveycases.com

I will post any publicly available readings that are relevant on ULearn. The suggested readings in the course outline can be purchased individually from the Ivey Publishing website.

I do not require a textbook for this course. If you feel that you need more background information, I encourage you to borrow or purchase any one of the major marketing management texts on the market. Some of the best titles include:

Marketing Management by Kotler and Keller.

Marketing Management: Text and Cases by Dalrymple and. Parsons.

Marketing Management: A Strategic Decision-Making Approach, by Mullins, Walker, and Boyd.

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4. SABRE Marketing Simulation You will have the option of participating in the SABRE marketing simulation, which is one of the most realistic marketing strategy simulations available. The simulation places heavy emphasis on the key elements of marketing—market segmentation and market positioning—in a dynamic, competitive environment. SABRE will run on a weekly basis during much of the term. The submission schedule can be found in the Course Content section. A SABRE manual and more information on the simulation will be made available early in the term. EVERY student must purchase a SABRE license to participate in the simulation (approximately $65 per student). You have the option of writing the final exam instead of playing SABRE if you do not want to pay the fee. 5. Course Grading The components of the overall course grade and their individual weights are as follows:

Class Contribution (individual) 20% Mid-term Case Report (individual) 25% SABRE Report (group) OR Final Exam (individual) 20% Marketing Report (group) 35%

100% Class Contribution The richness of the classroom experience is heavily dependent on thorough preparation and high-quality class contributions. Therefore, 20% of your grade will be based on your contributions (notice I do not say “participation”) in class. Highly valued contributions include, but are not limited to:

starting the discussion in a useful way,

building on the logic advanced by others,

offering constructive criticism,

redirecting the discussion to valuable areas,

emphasizing learning points,

sharing economic and financial analysis,

presenting a rigorous, but not stubborn, defense of a well-articulated position.

Ad hoc comments may be noted, but do not carry great weight. My objective is to reward people who contribute to the learning of others in the classroom (rather than punishing people who don’t contribute).

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After each class I assign a grade to each person’s contribution to the class using the categories in the table below.

Point Value

Category (Frequency)

Components of in-class contribution

3 Outstanding Rare (0-10%)

The comment adds substantial value to the discussion

Demonstrates willingness to take risks in attempting to answer difficult or unpopular questions

Breaks new ground and raises the flow of discussion to a higher level, often by synthesizing material and applying multiple lenses or techniques

2 Significant Frequent (10-30%)

The comment adds value to the discussion, beyond case facts

There is evidence of analysis rather than just the expression of opinion (although some espousal of opinion is acceptable, even desirable in certain circumstances)

Comments are linked to those of others, facilitating the flow of the discussion

Demonstrates knowledge of readings and other relevant course material

Incorporate relevant insights from other courses or current affairs

1 Good Common (50-70%)

The comment advances the flow of the discussion (including responses to questions from the instructor)

Demonstrates clear grasp of case material

Information presented is relevant to the discussion

I assign you one grade per class based on your best contribution because my focus is on quality rather than quantity. I actively seek contributions from those who have not already contributed in a class. In my experience you must be prepared to raise your hand 3-5 times each class to ensure that you are called upon once. I encourage you to keep a record of your contributions in each class as a way of tracking your own performance. Also, be sure to bring your name tent and sit in the same seat every class. Think of each class as a business meeting—please be on time and prepared to be involved. Mid-term Case Report You are required to submit a written analysis of an assigned case problem before you leave for reading week. I will give you the assignment approximately 7 days before it is due. Your report should not exceed six-pages, double spaced, with 12 point font. Please don’t “package” your submissions in plastic folders, or include expensive, colorful graphics. I am happy with a plain report (for environmental reasons, but also for ease of reading). Also, these are not research reports so you are not expected to do library research. The case analysis should be viewed as an opportunity for you to market your ideas to me. I care

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much more about the logic behind your answers than the answers themselves, so focus on persuading me that you have a reasonable and well-argued response. Here are some recommendations on how to approach the case analyses:

1. The objective is to persuade the reader that you have a good solution. 2. Use logic and facts to support your position. 3. I don’t recommend the use of bullets because their use tends to result in too many

points and not enough justification for each one.

I am not looking for a particular answer, just a convincing one. SABRE At the end of the term, each team is required to prepare and submit a presentation slide deck about their SABRE experience. The slide deck should be a marketing manager’s response to the situation in the SABRE competition. The winning team in each industry will be asked to make a presentation to the class. Please see Appendix A for more details on the SABRE final reports and presentations. It is vitally important that SABRE decisions are SUBMITTED ON TIME. The results will usually be returned to you within a few hours, though it might take up to 24 hours depending on the situation. Please note that the industry results cannot be posted until the decisions from ALL teams are received. Term Project: WISEST The term project is to develop a marketing strategy for WISEST (Women in Scholarship, Engineering, Science, and Technology). WISEST’s mission is “to empower women in the sciences, engineering and technology.” You will create groups of 3-5 people to develop a marketing strategy that you will submit at the end of the term. See http://www.wisest.ualberta.ca/ for an introduction to the organization.

Grades I expect the class average to be in the B+ to A- range. The perspective that I’d like you to take is that grades are nothing more than my impersonal evaluation of your work on that assignment -- not an assessment of your character, intelligence, effectiveness as a manager, or anything else.

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5. Expectations You are expected to be fully engaged in the learning process. This means devoting time and energy to preparation before class, listening to others during class discussions, and being active in class discussions. Collective reasoning and discovery are critical to the case method. Prior to any case discussion, engaging in discussions with (or examining notes from) others who have already analyzed a case in an earlier class is a clear violation of our norms. So is accessing case solutions online. Detailed note-taking during class can often be distracting for others and counterproductive to your own learning. I therefore advise you to be selective in taking notes during class. At the end of each class or at the end of the day it is a good idea to consolidate what you have learned. Using your computer during class for personal activities such as reading or writing emails, writing letters, surfing the Web, playing games, etc. is also distracting and counterproductive and violates our norms. Attendance at all sessions in this course is mandatory. Circumstances may arise which make it impossible for you to attend. For example, if you are unable to attend a class due to health-related reasons or because of business travel, you are expected to advise me in advance. You are reminded that plagiarism (representing another person’s ideas, writings, etc., as your own) is a serious academic offence; the penalty can be as severe as expulsion. You are expected to write reports, exams, etc., in your own words. Whenever you take an idea or a passage from another author, you must acknowledge your debt by appropriately citing your source(s). The University of Alberta uses software to check for plagiarism. You might be required to submit your written work in electronic form for plagiarism checking. 6. Appointments I am happy to work with any students who are having difficulty with any aspect of the course. Please feel free to make an appointment to come and see me. It might be easiest to send an e-mail message (rfisher1@ualberta.ca), or catch me after class to arrange a time. My office is 4-30L and my telephone number is 492-5922. My assistant is Laura Jackson (laura.jackson@business.ualberta.ca),

7. Course Schedule The schedule for the course is attached. It may change because of unforeseen circumstances but if it does I will notify you as soon as possible.

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Course Schedule

Session Type of content

Content Assignments and Notes Suggested Readings

Jan 10 Lecture-Discussion

Course Introduction An overview of the course and my teaching philosophy.

Lecture-Discussion

Marketing Strategy and Competitive Advantage

Questions: 1. What is marketing? Strategy? Marketing strategy? 2. What is a competitive advantage and how does a firm establish one?

Marketing Strategy – An Overview, (HBS, 500005)

Jan 17

Case Metabical: Positioning and Segmentation for a New Weight-Loss Drug (HBS 4240).

Questions: 1. What is the decision making process for Metabical? 2. Who is the optimal target consumer? 3. How should Metabicil be positioned? 4. What should the communications strategy be for Metabical?

Case Metabical: Pricing, Packaging, and Demand Forecasting for a New Weight-Loss Drug (HBS 4183).

Questions: 1. What is your forecast for the first five years? What assumptions

are required? 2. What are the key considerations for package size? What do you

recommend? 3. What price do you recommend? Why? 4. What is the impact of your pricing decision on profitability?

Jan 24 Case eHarmony (HBS, 9-709-424).

Questions: 1. Assess eHarmony’s matching process. How does it differ from

other service processes? 2. What is eHarmony’s value proposition and target market?

Customer Value Propositions in Business Markets, (HBS, R0603F)

Case Cont’d Question: 1. How should eHarmony proceed?

Rediscovering Market Segmentation (HBS; R06206G)

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Jan 31

Case Dove: Evolution of a Brand (HBS, 9-508-047)

Questions: 1. What was Dove’s market positioning in the 1950s? What is its

positioning in 2007? 2. Spend a little time searching blogs, using Google Blog Search,

Technorati, BlogRunner, or any other blog search engines, to get a sense of what people are saying about Dove today. What does this discussion contribute to the meaning of the brand?

3. Evaluate the Real Beauty campaign. Do you see risks for the Dove brand today?

A Better Way to Map Brand Strategy (HBS, R1506G)

Case Brand in the Hand: Mobile Marketing at Adidas (Ivey 905A24).

Questions: 1. What is Adidas’ position in the athletic shoe market? How is the

brand doing? 2. What evidence does Adidas have that suggests the importance of

digital interactive and mobile marketing? 3. What is the Brand in the Hand concept? What does this mean to

Adidas and its branding efforts? 4. What are the objectives of the Missy Elliot (ME) campaign? Do

you think the campaign will be successful? 5. How important a role should mobile media play in Adidas’ overall

brand communication strategy?

The Perfect Message at the Perfect Moment (MHBS 219X)

Feb 7 Lecture-Discussion

Strategic Branding Questions: 1. What is a brand? 2. What is brand equity (i.e., the value of a brand)? 3. How do firms build brand equity?

Building a Strong Services Brand: Lessons from the Mayo Clinic (HBS, BH230)

Lecture-Discussion

Introduction to SABRE An overview of the strategic aspects of the simulation. We will apply marketing strategy concepts to the SABRE simulation.

SABRE Decision 1 Due on Friday, Feb 7 by 7 pm. This decision should only be used to familiarize you and your team with the decision software and to order marketing research for decision 2. R&D projects are not allowed.

Read SABRE manual.

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Feb 14 Lecture-Discussion

Market Segmentation, Target Marketing and Positioning

SABRE Decision 2 Due at 7 pm. An overview of a marketing research technique that firms use to assess their competitive advantage.

Exercise Positioning and Target Marketing Exercise

An exercise designed to illustrate the most important principles of target marketing and positioning.

Presentation Term Project Q & A Fervone Goings from the WISEST team will make a short presentation and answer your questions about the term project during the last half hour of class.

READING WEEK FEB 19-23

Midterm Case Analysis Due

Feb 28

Case Starbucks: Delivering Customer Service (HBS, 504016)

SABRE Decision 3 Due at 7 pm. Questions: 1. What factors accounted for the extraordinary success of Starbucks

in the early 1990s? What was so compelling about the Starbucks value proposition?

2. Why have Starbucks’ customer satisfaction scores declined? 3. Describe the ideal Starbucks customer from a profitability

standpoint. What would it take to make sure this customer is highly satisfied?

Analyzing Consumer Preferences (HBS, 9-599-112)

Welcome to the Experience Economy (HBS, 98407)

Case Amazon, Apple, Facebook, and Google (HBS, 9-513-060)

Questions: 1. What are the contested boundaries between Amazon, Apple,

Facebook, and Google?

2. How will competition between these firms play out? In what markets will it be winner take all?

3. Identify a firm you know that has a significant online presence. Which of the four firms does it currently rely on? How might this reliance change over time? How can the firm you have identified can hedge the risk of this reliance going forward?

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Mar 7 Case Hubspot: Inbound Marketing and the Web 2.0 (HBS, 5-510-043).

SABRE Decision 4 Due at 7 pm. Questions: 1. Do you agree with HubSpot that the rules of marketing have

changed? Is inbound marketing the answer? 2. Is HubSpot finding and serving the right customers? Should it

widen its focus, or focus exclusively on a particular segment? If so, which segment(s)?

3. What is the appropriate role for outbound marketing in HubSpot’s marketing strategy?

Case The WestJet Christmas Miracle (A) (Ivey)

Questions: 1. What is the business problem facing WestJet? 2. What is their marketing objective (e.g., growth, profit, share)? 3. Who is the target market? 4. What is the role of social media in their strategy? 5. Was the social media event a success? Why?

The Buzz on Buzz (HBS, R00606)

Mar 14 Case Mediquip S.A. (R) (IMD, M395)

SABRE Decision 5 Due at 7 pm. Questions:

1. What is Mediquip’s CT scanner strategy? 2. Which person at Lohmann hospital had the most power in the

decision making unit? 3. Why did Thaldorf lose the sale?

Lecture-Discussion

Advertising and Promotion Management

An overview of how advertising works with an emphasis on persuasive communication.

Integrated Marketing Communications (HBS, 599087). What is the value of a like? (HBS, R1702H)

Mar 21 Case Bolster Electronics: Dealing with Dealer Demands (Ivey 9B12A050)

SABRE Decision 6 Due at 7 pm. Question: 1. As Rob Jackson, what decision would you make in response to

Brian Vicker’s request? Why? Be sure to address the financial implications of the decision.

Building Loyalty in Business Markets (HBS, R0509H)

Case Nettwerk: Digital Marketing in the Music Industry (HBS, 9-510-055)

Questions: 1. Which marketing processes from music’s pre-digital era are now

obsolete and which continue to be relevant? 2. What is the role of marketers when fans/consumers have the

ability to create, communicate, and publish? 3. What are the prospects for Polyphonic?

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Mar 28 Lecture-Discussion

Distribution Management

SABRE Decision 7 Due at 7 pm. Questions: 1. What is a distribution channel? 2. What is their purpose?

Channel Management (HBR, 590045-PDF-ENG)

Case The New York Times Paywall (HBS, 9-512-077)

Questions: 1. Why are newspapers in trouble? 2. Is the Paywall working? 3. How would you evaluate the current Paywall compared with

the previous two? 4. Does the Paywall seem like a good strategy for newspapers in

general?

Mar 30 (FRIDAY)

FINAL SABRE DECISION

SABRE Decision 8 Due at 7 pm.

April 4

In-class exercise Pricing Strategy Submission of SABRE report.

We will analyse a series of mini cases to illustrate basic principles of pricing. The mini cases will be posted on uLearn.

Principles of Pricing (HBS, 506021)

Presentations and Lecture-Discussion

SABRE Presentations and Course Overview

Winning teams in each industry will present their strategies (10-15 minute presentations). A Q & A will follow.

April 11 Case – Aqualisa Quartz is an integrative case designed to cover many of the key concepts over the course. I will also offer some summary slides.

Aqualisa Quartz: Simply a Better Shower (HBS, 9-502-030)

Questions: 1. What is the Quartz value proposition to plumbers? To consumers? 2. What should Rawlinson do to generate sales momentum for the

Quartz product? Should he change his marketing strategy to target consumers directly, target the DIY market, or target developers? Should he lower the price of the Quartz? Or should he do something different altogether?

Course Review

Please note that recording is permitted only with my prior written consent or if recording is part of an approved accommodation plan.

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APPENDIX A

Sabre Group Reports and Presentations

When you make your final decision you are not to “milk” the company, but rather leave it well positioned for the future. The results for this period will be made available to you after the presentation class. Because of time constraints, only the teams that are leading as of the last decision will be asked to present. All teams will submit a printed copy of their presentation slides. The winning teams in each industry will have a maximum of 15 minutes to present, followed by questions. It is important for everyone to be present for the presentations and debriefing that follows. It is not necessary for each member of each team to be involved in the presentation -- in fact, given the limited amount of time for it makes sense to have only two or three team members involved. I’d strongly recommend an absolute maximum of twelve slides in your presentation.

You can assume that the audience is very familiar with your industry, so you don't need to provide much background data about the market and how it developed. You may also assume that the management teams of the other firms in your industry will not be changing; that is, you may make some comments to your successors on how to deal with the other competitive management teams.

Your presentation should address the following issues:

1. Brief review of your strategy and the results it achieved. Note that a strategy is what you intended to do and explains why. It is not simply a description of what you did each period.

2. Recommendations to a new management team, with regard to the strategy they should employ for the next three periods, along with the outcomes they should expect.

3. Brief discussion of changes you would make within your management team (leadership or structure, in particular) to make it more effective in a SABRE world.

4. Key marketing learning points for your team from the SABRE experience. This is the most critical part of the presentation. What are the principles of marketing that were learned or reinforced that can be applied to the real world?

IMPORTANT NOTES:

1. Your presentation should “stand on its own,” such that I understand the rationale for your thinking. This means that your slides are going to be more complex and wordy than you would normally create because they must communicate in writing what would normally be presented verbally in your presentation.

2. Provide insights into the “why” of failure or success – don’t just describe what happened.

3. The evaluation of your presentation will be based on how well you can account for your team's performance, your recommendations for the new management team, and the key learning points for the simulation. All teams will be evaluated on the basis of the presentation slides they submit.

4. Presentations will be graded and the same grade assigned to all team members. Please provide me with a printed copy of your PowerPoint slides at the beginning of the class.

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APPENDIX B Group Project – Details on Options

All Group Projects are due within one week of the last day of class. Please place a hard copy in my mailbox on the third floor of the Business School Building and email me a copy.

Generic Format for a Marketing Strategy

Component Attributes Approximate Weight

Business problem or issue: Clearly articulate issue facing the decision maker.

5

Analysis: What are the factors in the environment that are likely to affect the firm’s marketing strategy? Identify the most important aspects and explain how they relate to the strategy being developed.

Consumer - identification of segments - segment differences in terms of who, what, where, when, and why buy

10

Company - Skills and resources that support unique value - Constraints to strategy - Organizational goals - Key environmental factors

10

Competition - Level of competition - Threat of retaliation - Type of competition

10

Planning: Make specific recommendations that are tied to your analysis.

Positioning - Statement relates to what consumers value and the firm’s abilities - Supporting reasons

30

Target market - Clear statement of target market - Supporting reasons

30

Tactics - Price - Promotion - Distribution - Product

30

Integration

- Positioning and TM selection 25

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integrated? - Appropriate use of facts? - Tactics support position and TM? - Tactics integrated/consistent?

Overall Grade /150 points

Length Limitation

The biggest challenge with group reports is to limit the workload. Therefore, I am imposing a strict restriction. The absolute limit on number of pages of text is 15 (you can add a title page and as many references, tables, or figures as needed). The pages are 8 ½” by 11”; I can’t read a font size below 11-point; and I prefer reading pages with some white space in the layout (1.5 spacing is best), etc.