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The Ohio State University Autumn 2010 Max M. Fisher College of Business

BUS-M&L 844 - Applied Marketing Planning Professor James L. Ginter 542 Fisher Hall 292-2267 [email protected]

This course is concerned with strategic marketing planning. The focus is on making and developing plans for implementing strategic decisions, i.e. decisions that have a long-term impact on the organization and that are difficult and costly to reverse. The strategic marketing planning process is supported by an external analysis (an analysis of the organization’s environment) and a self-analysis.

Course Objectives:

1. The course aims to develop your skills in developing and planning implementation of marketing programs and strategies. In so doing, we broaden and deepen the basic marketing “tool kit” you acquired in the core marketing course. The general goal of this course is to enable you do develop a plan that effectively integrates the various marketing tools into a consistent program aimed at achieving a sustainable and profitable position in the marketplace. The course materials cover firms of different sizes marketing a wide range of consumer and industrial products and services.

2. A second primary objective for the course is to develop general skills of making valuable contribution to a group process of problem identification, analysis, and resolution. These skills include effective listening, development and communication of logical frameworks, establishment of priorities, identification of underlying reasons for differences of opinion, and meaningful contribution to a productive discussion.

Case Analysis

A large part of the course involves case discussions and the presentation of analyses. It is expected that everyone will prepare each case fully, and you are encouraged to discuss the case before class with a study group.

The philosophy and expectations are those described in the handout entitled “Case Discussion Expectations”. The following points deserve emphasis.

Your participation grade will reflect the quality (not quantity) of your contribution to the class discussion.

Please come to each class fully prepared and ready to open the discussion. Each class will begin with a random call opening and a thorough, decision oriented response (about ten minutes in length). If you are not ready to open the discussion in a particular class, please let me know in advance.

Please be on time for all classes. Late arrivals unfairly distract the class member who is opening the discussion and deprive you of the opportunity to be called to open.

Each case has its own integrity, and additional data gathering should not be undertaken. 2

Readings

Aaker, David A., Strategic Market Management, 9th Edition, John Wiley & Sons, 2011. In the outline of sessions, the numbers refer to chapters in this book. Earlier, but recent editions of the book are a bit different but will be satisfactory for our use. We do not study the book in a highly structured way.

Packet of cases will be available at UniPrint.

Assigned readings are available on-line through the OSU Libraries or the HBS web site.

Company Analysis

A company analysis is to be completed by teams of 3 to 5 people. The groups need not be the same as those you use for other purposes, but that is acceptable if you prefer. The team will prepare a written company analysis, strategic plan, and implementation plan for a “client” firm. This report is due on Wednesday, December 1. Each team will also present its report in a formal 20 minute presentation to the class.

The client can be a firm that is either already in the market or considering market entry. You may choose a client with whom you can have contact. This may be useful for gathering information. However you do not need to have any contact with the client. In fact, sometimes client contact in this context can be constraining because the client’s agenda will be to get some free information and analysis from you. In any case, you should not let the client direct your analysis, your evaluation of strategic alternatives, or your implementation plan.

At the outset of the report you should indicate the client and the strategic decisions the client is (or should be) facing. The focus on a client will help you focus on strategically important material and avoid becoming too broad, unfocused, and descriptive.

To the extent possible, your report should include the completion of a “planning form” as illustrated in the appendix of the text. Specifically, you might include:

1. A customer analysis including an identification of the key market segments (and perhaps a segment by motivation grid).

2. A market analysis including a market definition, demand trends, product life cycle analysis and an identification of key success factors.

3. Identification of the important competitors and their strategy objectives, weaknesses and problems. What are the sustainable competitive advantages of each of the major competitors? Were they “born” with those SCAs, or did they develop them (when and how)?

4. If appropriate, you may find a historical view of the strategies pursued by one or two of the competitors very instructive. Perhaps two competitors can be identified (e.g. Schlitz and Budweiser) who were similar in the 60’s but have since pursued very different strategies with different results. Specify what the strategies were, their rationale, and the reason they worked or did not work.

5. If feasible, you may wish to contact one or two marketing managers from a firm (or two) within the industry to get their views on: 3

- who is their leading competitor, - what are the SCAs for his/her firm, for the leading competitor, and for other major competitors, - which of these SCAs were the involved firms “born” with and which did they develop?

6. An analysis of the major environmental trends, opportunities, and threats.

7. An assessment of the firm’s industry in terms of the GE “industry attractiveness” dimension and the BCG “market growth” dimension.

A client firm and industry should be selected for which information is available, preferably in trade magazines and business publications like Business Week and Fortune as well as on the internet. Possible industries include gourmet or other specialty frozen foods, wine, retail banking, a software area, a retail segment, a type of restaurant, a type of sports equipment, etc. You may consider a competitive industry that exists completely within a local market, if appropriate.

Please note that this assignment is a research report. It is to be based on multiple information sources of various types. It is not simply a restructuring of information from one or two key sources. As a benchmark, your report should be based on a minimum of fifteen different information sources. Further, your sources should include items from the business press, such as WSJ, Business Week, Forbes, etc., in addition to those you might find through an electronic search such as Google.

By Monday, October 4 you should hand in a report of: - who is in the group - the client firm and industry selected. - a preliminary list of strategic decision options your client is likely to face. These must be approved prior to Monday, October 18. If any member of the group has worked for the proposed subject firm or has worked on a project involving the proposed firm in any other course, this must be disclosed. Such projects may be approved if the proposed work is sufficiently distinct from the prior work.

Hand in by Monday, November 1 a progress report in the form of a short (one page) memo. This should include a brief description of the major competitive forces in the industry and the most interesting and useful strategic issues (not strategic decisions) for your client firm.

The written report is due on Wednesday, December 1. It should be concise but thorough. You should make free use of appendices for descriptive background material. The report must go beyond recitation of descriptive facts and get at strategic implications. You must use this material to discuss and support strategic insights and recommendations in the body or in figures. It is helpful if the paper starts with an introduction that briefly describes the client, sets forth the objectives of the study, motivates the project and provides an overview of the paper structure. An executive summary is required, but it does not replace an introductory section. The report must provide both a recommended strategy for the client and an implementation plan that includes an indication of the level of various efforts (e.g. budget) and a timeline for the recommended actions. It should also tie the recommended actions clearly back to the selected strategy. Your paper must also include a bibliography of the information sources that were used. No format for the bibliography is prescribed, but it should contain sufficient detail on each source for the reader to be able to go to that source.

It is not imperative that the group agree upon the interpretation and conclusions. A note setting forth a “minority opinion” is appropriate if a group member has an opinion not shared by others. 4

In both the written and oral report, when covering a section like competitor analysis do not attempt to be comprehensive -- just discuss those areas that are important and add insight. The goal is to reflect an appropriate set of priorities in providing an analysis that is insightful and helpful to the client.

The oral report will consist of a 20 minute presentation that is polished, professional, rehearsed, interesting, and useful to your client. You should regard it as an excellent opportunity to improve or refine your presentation skills. Everyone should present. During the presentations by the other groups you will be asked to provide written comments on the presentation skills of each speaker (not the content) and make suggestions for improvement. A set of these comments will be copied and returned to you. The goal is not only to provide feedback but also to sensitize you to presentation skills.

Members of a group may receive different grades based upon their oral presentation, their section in the report (if it is well defined), and their role in the group. At the end of the course each student will be asked to describe the role played by each of the group members.

Marketing Simulation: Managing Segments and Customers

Students will work in teams on this simulated decision making exercise. The teams will be the same as those for the company analysis term project. This exercise will be discussed in class on the following dates: Monday, Oct. 4 – Simulation introduction and initial assignment Monday, Oct. 11- Discussion of background materials and decision process. The team then makes two series of decisions. Monday, Oct. 25 – Discussion of initial results. Teams then make the final series of decisions (a “re-do”) Monday, Nov. 8 – Final discussion/debrief. Each team submits a paper (no longer than 10 pages) that describes their initial strategy, the plan they pursued, a log of their decisions in implementing this plan (with a discussion of necessary adjustments), and their conclusions with respect to their strategy and their implementation plan.

Final

There will be an in-class written final exam. Your response will be limited in length, but exhibits may be used. The final is during the normal final exam period:

Monday, December 6, 6:00 – 7:48 pm.

Office Hours

There are no set office hours. Appointments will be made as needed.

Grade

Your grade will be based 45% on class participation, 10% on the simulation exercise, 25% on the industry analysis group project, and 20% on the final exam.

THANK YOU FOR REGISTERING FOR THE COURSE I HOPE YOU FIND IT INTERESTING AND VALUABLE! 5

The following statement is provided by and requested by the OSU Office of Academic Affairs: ACADEMIC INTEGRITY (ACADEMIC MISCONDUCT) Academic integrity is essential to maintaining an environment that fosters excellence in teaching, research, and other educational and scholarly activities. Thus, The Ohio State University and the Committee on Academic Misconduct (COAM) expect that all students have read and understand the University’s Code of Student Conduct, and that all students will complete all academic and scholarly assignments with fairness and honesty. Students must recognize that failure to follow the rules and guidelines established in the University’s Code of Student Conduct and this syllabus may constitute “Academic Misconduct.” The Ohio State University’s Code of Student Conduct (Section 3335-23-04) defines academic misconduct as: “Any activity that tends to compromise the academic integrity of the University, or subvert the educational process.” Examples of academic misconduct include (but are not limited to) plagiarism, collusion (unauthorized collaboration), copying the work of another student, and possession of unauthorized materials during an examination. Ignorance of the University’s Code of Student Conduct is never considered an “excuse” for academic misconduct, so I recommend that you review the Code of Student Conduct and, specifically, the sections dealing with academic misconduct. If I suspect that a student has committed academic misconduct in this course, I am obligated by University Rules to report my suspicions to the Committee on Academic Misconduct. If COAM determines that you have violated the University’s Code of Student Conduct (i.e., committed academic misconduct), the sanctions for the misconduct could include a failing grade in this course and suspension or dismissal from the University. If you have any questions about the above policy or what constitutes academic misconduct in this course, please contact me. Other sources of information on academic misconduct (integrity) to which you can refer include:

 The Committee on Academic Misconduct web pages (oaa.osu.edu/coam/home.html)

 Ten Suggestions for Preserving Academic Integrity (oaa.osu.edu/coam/ten- suggestions.html) 6

INSTRUCTIONS FOR ACCESS TO THE DICKSON/GINTER READING

1. go to www.osu.edu

2. Under the “Students” tab at the top of the page, click on the “Libraries” link

3. Select “Research Databases”

4. Under the databases arranged alphabetically, select “B” (for business)

5. Scroll down to and select Business Source Complete [Selected Articles in Full Text]

6. In the middle of the next page, click on the link: Business Source Complete [Selected Articles in Full Text]

7. Under “Search Options”, select “advanced search”

8. Now you can search for the specific article. For example, for our first article,

a. in the upper field input “Dickson” b. go to the adjacent drop down box and select AU (author) c. go to the next open field on the left and enter “Ginter” go to the adjacent drop down box and select AU (author) d. select the search button (upper right)

9. Under the bibliographic entry for the article, select PDF Full Text

10. You can now read and/or print the article as you wish 7

APPLIED MARKETING PLANNING Autumn Quarter 2010

CLASS ASSIGNMENTS

Introduction

Sept. 22 Course Introduction

Sept. 27 Chapters 1, 3,

Case: Apple Computer, 2006

Sept. 29 Chapters 2, 4

Case: Sears, Roebuck and Co.

Oct. 4 Group Project Proposal Due

Simulation Introduction

Case: Benetton (A)

Oct. 6 “Market Segmentation, Product Differentiation, and Marketing Strategy,” Peter R. Dickson and James L. Ginter, Journal of Marketing, April 1987.

Case: Ring Medical

Oct. 11 Read Simulation Materials and Decision Process

Case: Flying J

Oct. 13 Chapters 5,6

Case: L. L. Bean: A Search for Growth

Oct. 18 Group Project Proposals Approved

Chapters 7,8

Case: Classic Knitwear and Guardian: A Perfect Fit? You should access HBP product 4219 (free) to conduct your analysis that includes the following: 8

 What sales volume is required to break even on Classic’s 2-year marketing investment?  If Classic implements all of Miller’s marketing recommendations, what is the estimated demand for the new product line over the 2-year launch period?

Oct. 20 Chapter 9

Case: H-E-B Own Brands

Oct. 25 Discussion of Initial Simulation Runs

Case: Bayerische Motoren Werke AG (BMW)

Oct. 27 Chapters 10, 11

Case: Manchester Products: A Brand Transition Challenge  What are the break even volume implications of the alternative marketing programs?

Nov. 1 Group Project Progress Report Due

Chapters 12, 13

Case: Nantucket Nectars

Nov. 3 Chapter 14

Case: Arrow Electronics

Nov. 8 Simulation Report Due

Debrief on Simulation

Nov. 10 “Cult Brands,” Melanie Wells, Fortune, April 16, 2001.

Case: The American Express Card

Nov. 15 Note on the Motorcycle Industry - 1975

Case: Harley-Davidson: Marketing Strategy for Motorcycles – 1977

Nov. 17

Case: Merrill Lynch: Integrated Choice 9

Nov. 22 Term Project Presentations

Nov. 29 Term Project Presentations

Dec. 1 Term Project Presentations Written Papers Due

FINAL EXAM

Monday, Dec. 6, 6 – 7:48 pm