MKT 6301 - 502 MARKETING MANAGEMENT

Call number 12254

Fall 2008

Meeting Time: M 7:00 pm - 9:45 pm Prof. Ernan Haruvy

Classroom: SOM2.714 Email: eharuvy@utdallas.edu
Office Hours: W 6:00 pm – 7:00 pm
Teaching Assistant:

Required Text: Philip Kotler and Kevin Lane Keller, Marketing Management, 13th edition.
Case Packet containing 6 cases.

Course Description
This core course in marketing management will provide students with an overview and
understanding of the role of marketing in organizations. Special attention will be given to the
way in which consumer wants, needs, perceptions, and attitudes impact firms’ strategies.
Topics will include marketing strategy, planning and control, segmentation, consumer
behavior, promotion, advertising, branding, new product management, pricing, distribution,
and retailing. Students in this course will learn marketing terminology, develop an
understanding of the basic principles of marketing and their applications and learn to recognize
their significance and scope in marketing management. The lectures will be interspersed with
case discussions. Students are expected to actively participate in constructive class discussions.

Course Policy
Each time a case is on the reading list there will be a quiz which will include one or two
multiple choice questions about the case assigned for that week. There will be no make-up
quizzes but students can drop one quiz grade.
Attendance is important. Participation is even more important. Participation is not
attendance. It is based on your level of involvement in discussion, leadership in the group,
level of preparedness, and demonstrated knowledge.
Please ensure that project submissions are made on time. In fairness to the other
groups, late submissions will be penalized.
Peer Evaluation: Your share in the group’s grade will be determined by your peer evaluation score.
Please abide strictly by the Academic Honor Code.

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Course Evaluation and Grading
Participation 5% Based on involvement in the class discussions.
Weekly Quizzes 5% Closed book.
Assignments 10% Each group will submit portions of the project periodically
Project Write-up 20% Each group will submit a final written project report.
Project Presentation 10% Each group will present its project to the class.
Midterm 25% Closed book
Final Exam 25% Closed book
100%

COURSE SCHEDULE
Dates Topics Chapters

Aug 25 Introduction 1
Core concepts & definitions 1
Social Foundations & Company Orientations 1
Survey Design 4

Due by end of class:

Topic for Group Project.

Sept 1 LABOR DAY—No class

Sept 8 Strategic Planning 2

The Marketing Environment 3
Due:
Complete Survey.

Sept 15 Marketing Research & Demand Forecasting 4

SAS TUTORIAL
Due:
Data from survey.

Sept 22 Buyer Behavior 6

Buyer Decision Process 6
Due:
Descriptive Statistics and Analysis of Data

Sept 29 Executive Summary

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 Marketing Mix (Ch. 1)
Environmental Scanning (Ch. 3)
SWOT analysis (Ch. 2)
Identify three competitors, gather basic information

Oct 6 Market Segmentation 8

Market Targeting, Positioning, Differentiation 8,10

Oct 13 Designing Products, 10

New-Product Development & PLC Strategies
Case 1: Fisher Price Toys

Oct 20 MIDTERM

Oct 27 Pricing Considerations & Approaches 12, 14

Case 2: Colgate Palmolive

Nov 3 Pricing Strategies 14

Case 3: Nestle Contadina & Pasta

Due:
Value Proposition
Egg diagram. Marketspace Offering (Ch. 6)
Pricing Strategy
Identify Customer Segments—collect basic information
Forecasts of Demand and Sales (Ch. 4)

Nov 10 Managing Marketing Channels 15

Retailing & Wholesaling
Case 4: John Deere

Nov 17 Communication Strategies & Advertising 17, 18

Case 5: Pizza Hut

Nov 24 Sales Promotion & Public Relations 18

Case 6: Optical Distortion Inc.

Dec 1 Exam
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 Personal Selling & Sales Management 19
Due:
Communication mix
Advertising Strategy
Channel Strategy
Complete Project

Dec 8 Group Project presentations

Submit Peer Evaluation forms

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GROUP PROJECT – Idea for Topic

Each group will prepare a business model in a clearly specified industry or a particular
marketplace (not from an existing case study) and turn it in. The type of business is
flexible, but you need to get approval from me before you begin. Be original and creative.
Here is a menu of ideas for a web business (which is ideal given the limited capital). You
may choose from this menu. Your choice is due by the end of the second lecture.

Startup capital: You have initial capital of $20,000.

Topics to choose from:

1.Arts and Crafts. A site for arts and crafts (jewelry, art) that brings together hobbyist
makers of crafts from the DFW area with buyers interested in finding bargains.
2. Pet Owners. A site for pet owners offering local services such as pet sitting, pet
walking and pet grooming by local unaffiliated DFW labor.
3. Tutoring. A site that brings together tutors and those in need of instruction. The site
can (and probably should) be focused on one field. Possible fields: Music instruction,
dance instruction, sports instruction, college tutors, home schooling tutors, …
4. Event planning 1 . Focus on one are: Birthdays, weddings, funerals…
5. Handyman Services. A site matching labor with those seeking labor.
6. Moving Services. A site matching labor with those seeking labor.
7. Legal advice. A site offering legal advice in one field. (a) teens in trouble (b) elderly
seeking estate planning, ….
8. Medical tourism. A site offering potential routes and services for those seeking
medical services in more affordable countries

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Since your group is not the provider of the actual services, but rather a website that collects these services
and organizes them, it is important to focus on key competitive advantages. The competition is quite fierce
in all these planning areas, so you must find a way to outdo the competition. Key in this is obtaining
defensible alliances and clever cost-cutting and efficiency enhancing tools. What are some information
sources that only you could have access to? What are some algorithms that you could think of to provide
real cost savings to your customers? How can you personalize the site to enhance loyalty?

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Specific guidelines

The site cannot simply list items. It must devise algorithms to optimally match buyers
and sellers (hence the added value), to optimally customize itself to buyers and sellers,
and to offer only relevant, yet valuable (and preferably proprietary) information. Note
that you are not creating Amazon, eBay or Craig’s List, so just a market for used or new
items is out of the question. You cannot compete with these sites, so you must choose
items that are local in nature or that are so specialized that a general site like eBay,
Amazon, or Craig’s list cannot handle nor find it profitable or feasible to do so.

Devise approaches to attract traffic. This traffic can then be translated into revenue
through ads and clicks. Projects have generally lacked proprietary information sources, a
solid revenue model, and have been characterized by exaggerated (overoptimistic)
revenue forecasts from advertising and clicks. To do well, you need to come up with
unique information sources, a way to organize and customize these sources to create a
competitive advantage, and a way to obtain revenues without exaggerating forecasts.

The project needs to be double spaced. It can be no less than 25 pages of text and no
more than 40 pages of text (not including tables, figures and references). It should have
no less than 6 pages of exhibits and no more than 15.

The written project will have different parts, which closely follow the sample plan in
chapter 2, pp. 61-67 and also detailed in the Table of Contents provided at the end.

Keep in mind that this is not an “imaginary” business proposal. You have seed money of
up to $20,000. That is, do not assume you have a million dollars and exclusive alliances.

If you plan to have exclusive alliances, sponsors, or financing, explain how you plan to
obtain them and why your collaborators would be enticed.

Do not blah, blah. Every claim should be backed up from some source (company web
page, case reports, SEC or 10K filings, news articles, et.). Each reference should follow
the claim and the full reference should be provided in a footnote or the endnotes.

GROUP PROJECT PRESENTATION

Each group will present its business model. DO NOT PRESENT YOUR INDUSTRY
ANALYSIS, although you may have one slide summarizing competitor strengths and
competitive threats. The class will then rate each group on the following dimensions:

1. Competitors: Did the group identify the critical

A B C
competitors? Do they have a competitive advantage?
2. Target Segment: Were the target segments clearly
A B C
identified and are they reachable to the group?
3. Product Offering: Was the product offering complete?
A B C
Were the steps in the consumer decision process addressed?
4. Promotion: Did the group fully utilize the promotion and
A B C
media mix to maximize coverage and reach?
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 5. Branding: Did the group utilize all approaches to branding
A B C
to generate awareness and strong brand equity?
6. B2B: Did the group take full advantage of procurement and
A B C
outsourcing opportunities?
7. Defensive capability: With a head start, can the group
A B C
maintain a competitive advantage that is hard to imitate?
8. Revenue Model: Can the group generate revenues? Have
A B C
they exhausted all possible revenue sources?
9. Pricing: Did the group present a clear and effective pricing
A B C
strategy that employs the material covered in class?
10. Presentation: Was the presentation exciting, interesting,
A B C
and informative?

Group Project Table of Contents

1. Executive Summary
Products/services, target segments, focal benefits, core competencies,
financial assessment

2. Situation Analysis
2.1. Market Summary / Environmental Scanning
2.1.1 Market Demographics
2.1.2 Market Needs
2.1.3 Market Trends
2.1.4 Market Growth
2.2. SWOT Analysis
2.2.1. Strengths
2.2.2. Weaknesses
2.2.3 Opportunities
2.2.4 Threats
1. 2.3. Competition: You need to cover a minimum of 3 competitors that are
relevant (in business as close to yours as possible). You need to do serious
research here and provide some figures. If the competitor does not have filings or
newspaper stories about it, you may need to call them or go over there to find out
info. How many customers do they have? What is the geographical area that they
serve? These answer you can obtain simply by sending them an email. They will
answer these two questions as long as you are polite and don’t have too many
questions. Do some analysis of their web site: How do they generate revenues?
Banner ads? Links? Donations? Fees? Sales? How do they personalize their site
or services? The answers to these questions you can get simply by looking at the
web site. Have a snapshot of each of their main sites. What are the strengths and
weaknesses of each competitor?

2.4. Product Offering: Make sure you provide an egg diagram here with
the relevant decision steps. The egg diagram should be displayed at the end in a section
called Figures, but should be described fully in the text.
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 2.5 Keys to Success
2.6. Critical Issues
3. Marketing Strategy
3.1. Mission
3.2. Marketing Objectives
3.3. Financial Objectives
2. 3.4. Target Markets: Be detailed here. Who are your consumers? I need lots and
lots of detail here. Where do they live? How much money do they make? How
many children do they have? What do they eat for breakfast? Some of the answers
will involve decisions by the group. Other answers will come from research on
the geographical area or segment you are targeting. You can have several
segments. In fact, you should. Your segments should be as narrowly defined as
possible. Have a minimum of two target segments. Give detailed research about
each segment. You will need to use survey research here. Make sure to refer to
each of these two segments in each subsequent strategic discussion, particularly
sections 3.6 and 3.7, referring to the marketing mix.
3.5. Positioning
3.6 Strategies
3.7. Marketing Mix
3.7.1 Pricing: Detailed pricing strategy as covered in class. Use research
to justify pricing. Have different prices for different segments. Use cost computations,
break-even analysis, marginal analysis, tiered pricing, bundle pricing, (1st, 2nd or 3rd
degree) price discrimination, two-part pricing and other strategies covered in class.
3.7.2. Distribution
3.7.2.1. Coverage
3.7.2.2 Location, Inventory, Transport
3.7.2.3 Customer Distribution Needs
3.7.2.4. Channel Objectives
3.7.2.5 Channel Alternatives

3.7.3. Promotion
3.7.3.1. Communication mix
3.7.3.2. Advertising Strategy: Mission/Goal, Budget, Message, Media

3.7.4. Customer Service

3.7.5 Product: Quality and Design, Features, Brand Name, Packaging,
Size, Warranties, Returns

3.8. Marketing Research

4.0. Financials
4.1. Break Even Analysis
4.2. Sales Forecast and Demand Assessment
4.3. Expense Forecast
5.0 Controls
5.1. Implementation
5.2. Marketing Organization
5.3 Contingency Planning
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6. Conclusion

7. References: References. References go at the end and are not footnotes. Include at least
five references from reputable non-www sources. Email or phone correspondence with
executives is an acceptable and recommended source as long as you indicate the
executive. The format for the references is not that critical. One recommendation is:
Author (Date or Year), “Title of Article”, Source, page numbers. For example, Haruvy,
E. (1999), Journal of Stuff, pp. 34-36. Is every claim backed by research? Is it cited in
your reference section? Research is not www.google.com. Although you are more than
welcome to cite web sites as your source of information, you are expected to visit
databases. Examples include Business Source Premier, Business Dateline, Business and
Industry and Lexis-Nexis. All are available to you via the UT-Dallas library web site
(you can access it from home). You are expected to do your research.

8. Exhibits (any figure that appears in the exhibits but is not referred to in the text is an
automatic deduction of points). All tables and figures should NOT be included in the
body of the paper but rather moved to the end of the paper. In the body of the paper,
where figure 3 should be, please put <INSERT FIGURE 3 HERE>.

Egg Diagram
Resource Diagram
Snapshots of competitors’ websites
Snapshots of your website
Customer Survey
Site Map
Flowchart

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Sample Survey/Questionnaire for Group Project

Thank you for participating in this study. The findings from this study will be used for a
business proposal for a new type of business involving [give a brief description of the
business]. Your answers are confidential and will not be linked to your identity or used
for any non-research purpose. Should you be interested in the findings of this study,
please contact us at [your email here]. Thanks again for your time and cooperation.

Demographics

1. You gender Male / Female

2. Employment status: Part time / Full time / Unemployed
3. Your occupation __________________________

4. Your age
<20 20-25 25-30 30-35 35-40 40-45 >45

5. Your family’s combined annual income.

<30K 30K- 60K- 90K- 120K- 150K- >180K
60K 90K 120K 150K 180K

6. How many hours a week on average do you spend on the Internet?

<5 5-10 10-15 15-20 20-25 25-30 >30

7-12. Demographic questions of specific relevance to this project (e.g., Do you have a
dog? Do you paint? Do you drink coffee? Do you date?)

Part II. Specific Valuations

Our business consists of a web service that provides the following benefits:

1. We send you reminders of when you are due for a checkup.

2. We link buyers and sellers.
3. We provide user-based ratings and feedback of eligible sellers
4. We provide independent verifications of sellers
5. We bargain with sellers on your behalf to ensure the lowest prices
6. We compare prices with providers out of our partners
7. We provide articles written by users like you as well as a dedicate staff
8. We provide a community of users like you with whom you can share life
experiences, relevant stories, and advice
9. We award prizes on a regular bases
10. We send your information to agencies that provide additional services
11. We provide a portal to all related sites
12. We provide forms and documents relevant to your situation

How much would you be willing to pay for a monthly subscription to this website,
assuming you trusted the source and valued the quality?

______________
Please break down the above amount for each of the items we listed above?
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