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Marketing Management – GSBA 528 Spring 2017 – Term 3 – L.A. Campus Professor: Rex Kovacevich Office: HOH 622 Office Phone: (213)740-5045 E-mail: rex.kovacevich@marshall.usc.edu Office Hours: by appointment

Course Description:

Though marketing specialists may assist with particular marketing tasks, critical marketing decisions are a

general management responsibility and not something to be delegated. Marketing is about creating value for

customers and then capturing part of that value for the organization. Doing marketing well is important since

marketing decisions impact an organization’s financial performance on many different levels. The marketing

process is relatively straightforward…assessing the market, developing a course of action, implementing a plan,

and evaluating the results…but loaded with complexities. This course integrates a common language, and a set

of concepts and frameworks to help you analyze marketing situations and develop recommendations.

Learning Outcomes

The primary learning outcomes for this course are the following:

Develop a strategic level of understanding of marketing, and comprehend the relationship marketing

has with other business functions.

Apply marketing concepts and frameworks to businesses within a variety of business environments,

including global marketplaces.

Develop recommendations and demonstrate critical thinking skills by fully analyzing problems and

making the intellectual connection between quantitative and qualitative marketing tools, concepts and

theories.

Secondary learning outcomes are the following:

Refine people and leadership skills by working in teams.

Demonstrate ethical reasoning skills relating to marketing, and understand social, civic, and professional

responsibilities, and aspire to add value to society.

Required Materials:

“A Preface to Marketing Management,” 14th edition, by Peter, J. Paul and Donnelly, Jr., James (2015).

Published by McGraw Hill Education.

Electronic Course Reader containing cases and articles.

Enrollment in HBS “Marketing Simulation: Managing Segments and Customers.”

Course Notes: After our first session, the class sessions are generally organized to introduce new material

during half of the session, and discuss a business case during the other half of the session that calls upon

content covered. Copies of the lecture slides and other class information are available through your Blackboard

account.

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Class Policies: See Appendix A (page 6)

Grading Breakdown:

Graded Items Points % Weighting Due Dates Detailed Description

Participation 30 10% ongoing Page 2

Individual Case Write-ups 15 5% March 6 & 20, April 17 & 24 Page 3

Mid-Term 50 17% March 21 Page 5

Marketing Simulation 15 5% Feb. 29 – March 21 Page 4

Team Marketing Plans – 1 30 10% March 27 Page 4

Team Marketing Plans – 2 60 20% April 26 Page 4

Final Exam 100 33% May 1 Page 5

TOTAL 300 100%

Final grades represent how you perform in the class relative to other students. Your grade will not be based on

a mandated target. Based on past classes, the average class grade will likely approximate a B+. Three items are

considered when assigning final grades:

1. Your average weighted score as a percentage of the available points for all assignments (the points you receive divided by the number of points possible).

2. The overall average percentage score within the class. 3. Your ranking among all students in the class.

Assignment Descriptions

Participation (30 points):

Description: We will use several instructional methods in this class, including case discussions. These discussions are special because the transmission of knowledge isn’t based solely on the instructor, but on the insights of the participants. Case discussions are an effective way for participants to apply their developing knowledge to the diagnosis and resolution of marketing problems. The cases are brief stories, many based on actual events, describing some sort of marketing dilemma. You will be asked to evaluate the facts of the case, and make recommendations. Like the real world, a case will rarely provide all of the information you would like to have. Regarding attendance, you need to be here. An 8 session term means every class is critical. I will regularly make note of attendance during the semester. Poor attendance usually correlates with poor participation.

Objective:

Develop critical thinking and problem-solving skills relating to marketing problems.

Assignment: The general case analysis approach is to first dig underneath symptoms to identify

underlying problems, then to develop alternative solutions that lead to the strongest recommended course of action. To assist your preparation, preview questions are provided in the calendar section of the syllabus. Prepare by using only information in the case. Here is a suggested approach: 1. Begin by scanning the case. Get a feel for what the story is about – the business,

the characters, and the dilemma. Watch for information relating to issues highlighted by the preview questions.

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2. Then read the case in more detail. Don’t ignore footnotes and exhibits. 3. Do the math. Data is frequently provided that can improve your understanding of

the case. 4. Develop answers for the preview questions. Prepare to take a position that is

decisive. Avoid vague recommendations such as “hiring a consultant.” There is almost always a potential downside to any recommendation. Consider the risks relating to your stance.

5. If time allows, discuss the case with other students before class to broaden your perspective and improve your understanding of the material

Deliverable: Discussion readiness Grading: During discussions, I will evaluate student comments using criteria similar to what is

listed below. These points aren’t meant to add up to your final score, but will be used to compare your overall performance to the performance of other students in your lab, and converted to a 0 to 30 point scale.

-N Disruptive behavior 0 Student was present, but did not participate and cannot be evaluated. 1 Fair to poor contribution in which the student uses general information rather

than information covered in class or the reading, or is merely reacting to others, or repeats what has just been said, or repeats wording in the reading without building on the point.

2 Good contribution, showing preparation and relevance to the class. Ideas are fairly well substantiated and somewhat persuasive.

3 Excellent contribution. These contributions show special insight and help raise the awareness level and/or discussion level of the class. Ideas are important and relevant, and provide a meaningful direction for the class. Ideas are substantiated and persuasively presented.

Individual Case Write-Ups (15 points)

Description: To help prepare students for the case discussions, each student will submit a single page write-up for three out of the four assigned case questions at the beginning of each case discussion class.

Objective: Sharpen critical thinking and problem-solving skills relating to marketing problems. Assignment: One page write-up (second page OK to show any calculations or illustrations) for each

of the assigned case questions submitted. Deliverable: Due at the beginning of the case discussion: 1 page, single-spaced, typed, with an

additional page attached if hand-written calculations are included. Grading: The three case write-ups will each be worth up to 5 points. These will be graded

quickly based on the following scale: 5 points – Identification of relevant issues, accuracy of facts, writing clarity, relevant use of class concepts/frameworks (where applicable) and quantitative support (where applicable). 4 points – Missing or weak within one of the criteria. 3 points – Missing or weak within two of the criteria. …etc.

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Marketing Simulation (15 points):

Description: One of our case discussions will include a marketing simulation. This is an interactive case analysis that will incorporate several topics we will cover during the term.

Objective: Understand link between segmentation and marketing-strategy formulation.

Assignment: Complete 2 or more runs (12 periods each) of the “Managing Segments and Customers”

simulation. Schedule will be the following:

March 6 Simulation introduction

March 7 - 14 Practice runs

March 15 - 19 Single “real” run of 13 quarters

March 20 - 26 Additional runs for “best” score

March 27 Simulation debriefing in class

Grading: To encourage a little emotional investment in the simulation, there will be a grade assigned to

the play of the simulation (discussion of the results will count toward participation). This grade will be based on a ranking of an average of your first round “score” and best subsequent round “score.” The maximum score is 100 points, and calculated as follows:

Result Max. Score Result/Max. Score

Weighting Contribution to final score

Market Share 10% 15% 67% 25% 17

Cum. Profit $6 million $10 million 60% 35% 21

Cum. Revenue $40 million $100 million 40% 15% 6

Average Customer Satisfaction

60%

100%

60%

25%

15

Player Score 100% 59

Grades will then be assigned based on each student’s class rank as follows:

Top 1 15 points 2 - 15 14 points 16 - 30 13 points 31 - 45 12 points 46 - 60 11 points 61 and below 10 points

Team Strategic Marketing Plan Assignment – Parts 1 (30 points) & 2 (60 points)

Description:

Each team will evaluate the performance of an existing product or service of their choice, and develop recommendations in the form of a marketing plan. Team members’ companies are eligible. Assume that your team is a marketing consulting firm hired to evaluate and make recommendations to help the company improve its bottom line. Recommendations will likely center on adjusting the marketing mix to accomplish one or more of the following: improving marketing-related profit margins, increasing share of wallet, increasing share of market, and/or pursuing new markets with existing or brand new products. There will be numerous strategic and tactical routes to reach your objectives, and your recommendations should correlate with your situation analysis.

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Objective: Develop teamwork skills and marketing concept knowledge by putting together a

comprehensive strategic marketing plan for an existing product or service. Assignment Deliverables: Grading:

Part 1

Analyze company’s marketing activities to identify opportunities or threats that need to be addressed. Due March 27. 6 – 8 page (excluding exhibits, tables, illustrations) analysis. Single-spaced. References identified based on footnotes in the American Psychological Association (APA) format. Suggested outline contained in Appx. B. 30 points, and will be scored based on the grading summary sheet in Appx. D

Part 2 Develop recommendations to address marketing priorities identified in part 1 that will improve or sustain bottom line. Due April 26. 8 – 10 page (excluding exhibits, tables, illustrations) recommendations and feasibility analysis. Single-spaced. References identified based on APA format footnotes. Suggested outline contained in Appx. C. 60 points, and will be scored based on the grading summary sheet in Appx. D

Mid-Term (50 points)

Description: 20 multiple-choice questions (2 points each) and 2 essay questions (5 points each).

Objective: Assess overall marketing knowledge gained from first part of course.

Deliverable: Completing the exam during a 1 hour session at the conclusion of class on March 27.

Final Exam (100 points)

Description: Test will be based on 30 multiple-choice questions (2 points each) and 4 or 5 essay questions totaling 40 points.

Objective: Assess overall marketing knowledge gained from course. Deliverable: Completing the exam during a 2 hour class on May 1.

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Appendix A

Class Policies

Class Communications:

Seating Chart: A seating chart will be established by our second class. Please use that seat throughout the semester so I can get to know you and more accurately evaluate your classroom contributions.

E-mail Responses: For weekdays, my responses will be within 24 hours…and within the same day most of the time.

Electronic Devices: Laptops will be used intermittently for case discussions and classroom exercises, but are

generally not allowed during class. Cell phones and other electronic devices should not be used during class.

Obtaining Content for Missed Classes Office hours aren’t practical for repeating lectures due to missed classes. If you’re absent, start by piecing

together missed information from the posted material, the book and the notes of other students. Then see me

with any questions you still have.

Assignment Submission Policy

A hard copy is due at the beginning of class on the assigned due date. Assignments may also be sent via e-mail if

you think you are running late or will miss class. 10% deduction for each 24 hour period late, except the brief

written case assignments, which will not be accepted once the case discussion has started.

Support Systems Students whose primary language is not English should check with the American Language Institute

http://dornsife.usc.edu/ali, which sponsors courses and workshops specifically for international graduate

students. The Office of Disability Services and Programs (www.usc.edu/disability) provides certification for

students with disabilities and helps arrange the relevant accommodations. If an officially declared emergency

makes travel to campus infeasible, USC Emergency Information (http://emergency.usc.edu/) will provide safety

and other updates, including ways in which instruction will be continued by means of blackboard,

teleconferencing, and other technology.

Academic Integrity

USC seeks to maintain an optimal learning environment. General principles of academic honesty include the

concept of respect for the intellectual property of others, the expectation that individual work will be submitted

unless otherwise allowed by an instructor, and the obligations both to protect one’s own academic work from

misuse by others as well as to avoid using another’s work as one’s own (plagiarism). Plagiarism – presenting

someone else’s ideas as your own, either verbatim or recast in your own words – is a serious academic offense

with serious consequences. All students are expected to understand and abide by the principles discussed in the

SCampus, the Student Guidebook (www.usc.edu/scampus or http://scampus.usc.edu). A discussion of

plagiarism appears in the University Student Conduct Code (section 11.00 and Appendix A).

Students will be referred to the Office of Student Judicial Affairs and Community Standards for further review,

should there be any suspicion of academic dishonesty. The Review process can be found at:

http://www.usc.edu/student-affairs/SJACS/ . Failure to adhere to the academic conduct standards set forth by

these guidelines and our programs will not be tolerated by the USC Marshall community and can lead to

dismissal.

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Appendix B

Strategic Marketing Plan Outline

Part 1 - Analysis

1. Company Introduction (one page)

Not part of the formal plan, but simply to provide basic background information.

Include company name, location(s), business area on which you are focusing, size, and brief history.

2. SWOT Summary

3. Situation Assessment

Company

o How has the company recently performed? What are the firm’s critical assets and capabilities?

o Marketing mix review. How does the product line perform compared to the competition? What

marketing tactics have been used recently, and what market position has the company wanted

to create/support with these tactics?

o Is there alignment among the company’s mission, core competencies, delivered value

proposition (for this product/service), and basic business strategy?

Collaborators

o What is the value-adding role of current or future value chain collaborators?

o Which strategic alliances are critical for future success?

Competitors

o Who are the important competitors? How have competitors recently performed?

o What are competitors’ strengths and weaknesses?

o How do they compete? What are competitors’ notable points-of-parity, points-of-difference?

o How is competition evolving?

o How can your company gain/hold/improve a competitive advantage in this market?

Customers

o Broad market characteristics. Beyond the company’s own customers, what is the size, growth

rate, and customer demand characteristics within this market?

o What causes a customer to purchase and use this particular product or service? What job(s) is a

customer hiring this product/service to do?

o What are the identifying characteristics of the firms’ targeted customers? Consider

characteristics beyond demographics.

Context

o What are the business impacts, if any, that may come from legal/political, demographic,

social/cultural, technological, economic, and/or resource forces? Are these factors part of any

long-term trends impacting the market?

4. Future Marketing Priorities

What are the future marketing-related priorities for the company?

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Appendix C

Strategic Marketing Plan Outline

Part 2 - Recommendations

1. Executive Summary (one page)

Use an opening sentence similar to “Due to state the successes, opportunities or problems, our team

recommends XYZ Company briefly describe recommended action.”

Include the opening (above), a situation overview (highlights from part 1), proposed objectives,

significant next steps and implications/risks.

2. Recommendations

o Objectives. What are realistic goals given 5C conditions (tie goals to market share growth, wallet share

growth, profit margin improvement, and/or new market opportunities)?

o Strategic considerations

o Target market(s)

Is firm pursuing right target market?

Are there ways the firm needs to understand the target market better?

o Value proposition

Does the value proposition align with the job customers want done?

Are there ways POP and POD should be made more compelling?

o Positioning

Should positioning be kept the same or altered?

o Tactical considerations - Marketing mix recommendations

o Implementation

o Timeline for major tactical steps

o Proposal feasibility

o Competitor reaction. Customer reaction.

o What are the potential impacts (if any) from “context” forces?

o Which value chain alliances are critical for future success?

3. Follow-up

Critical marketing metrics – What data/information should the company monitor to best assess

performance of recommendations?

Contingency plans – Are there contingency plans company can consider should any of the risk factors

materialize?

4. Exhibits

Including, but not limited to, a “recommendation summary” table (below), and financial impacts (even if

at a basic level). Other possibilities include market data and data relating to marketing mix elements

Identified Priority Objective Strategy Tactics

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Appendix D

GSBA 528 Marketing Management

Instructor Evaluation Sheet for Strategic Marketing Plan Assignments

Part 1 - Analysis

Grading Criteria Points Earned

Possible Points

1. Company Introduction / Background 5 2. Situation Assessment 10

3. SWOT Summary 5 4. Clarity of Marketing Priorities 5

5. Degree of Difficulty / Effort Level 5

Total Score

30

Part 2 - Recommendations

Grading Criteria Points Earned

Possible Points

1. Executive Summary 5

2. Objectives 5 3. Assessment of strategic elements 10

4. Marketing mix recommendation logic/support 10

5. Implementation 5 6. Metrics / Contingency Plans 5

7. Financial Data 5 8. Summary Table 10

9. Degree of Difficulty / Effort Level 5

Total Score

60

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Appendix E

GSBA 528 - Marketing Management

Strategic Marketing Plan Peer Evaluation

Complete one form for each of your teammates/group members (including yourself).

Name of group member:_________________________________________

Assess each teammate's contributions on a 1-5 scale (5 is excellent) 5 4 3 2 1

Attended and was engaged in team meetings from beginning to end

Asked important questions

Listened to and acknowledged suggestions from others

Made valuable suggestions

Took initiative to lead discussions, organize and complete tasks

Contributed to organizing the assignment

Contributed to writing the assignment

Reliably completed tasks on time in a quality manner

Demonstrated commitment to the team by quality of effort

Was cooperative and worked well with others

I would want to work with this team member again.

Describe your teammate's (or your) most significant contributions to the assignment:

How might your teammate (or you) have made more effective contributions to the assignment?

Your name:

Date:

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Appendix F

GSBA 528 – Spring 2017 Calendar

Understanding Market Dynamics

Class 1 Topics Welcome / Class Orientation (Feb. 27) “The value-adding role of marketing”

Pre-Work Text: Ch. 1 – Strategic Planning & the Marketing Management Process Ch. 13 – Global Marketing

Articles:

The Dawn of Marketing’s New Golden Age The Ultimate Marketing Machine

Case: none

Class 2 Topics “Understanding, identifying and targeting customers” (March 6)

Introduction to Marketing Simulation Marketing Math: Customer Lifetime Value

Pre-Work Text: Ch. 2 – Marketing Research: Process & Systems for Decision Making Ch. 3 – Consumer Behavior Ch. 4 – Business, Government & Institutional Buying

Articles:

Know Your Customers’ “Jobs to Be Done”

Case: Case:

“Should you listen to the customer?” (write-up not required) As you read the case, consider these questions:

Should Delacroix launch a customer research initiative?

Does your current organization conduct customer research? Why or why not?

“Aqualisa Quartz: Simply a Better Shower” As you prepare for the discussion, consider the following questions:

What is the problem? Why is the Quartz shower not selling?

(write-up) What is the Quartz value-proposition to plumbers? To consumers?

Aqualisa currently has three brands - Aqualisa, Gainsborough and ShowerMax. What is the rationale? Does it make sense?

What should Rawlinson do to build sales momentum for the Quartz product?

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Class 3 (March 20)

Topics “Understanding, identifying and targeting customers” “Marketing metrics”

Marketing Math: Managing marketing profitability Measuring market size and market share

Pre-Work Text: Ch. 5 – Market Segmentation

Articles: none

Case: “Cottle-Taylor: Expanding the Oral Care Group in India”

As you prepare for the discussion, consider the following questions:

What factors determine demand for toothbrushes? How can demand be increased?

How should Cottle accelerate the development of the toothbrush market in India?

o What are Cottle’s target markets? o Which segments make the most sense for Cottle to develop? o Does more ad spending to promote battery-powered

toothbrushes make sense? Why or why not?

(write-up) What should Cottle do? Develop a pro-forma income statement. State your assumptions.

Class 4 (March 27)

Topics “Shaping the value proposition: positioning” “Products, Services and the Power of Branding - Part 1” Mid-Term

Strategic Marketing Plan – Part 1 is due

Pre-Work Text: Ch. 12 – The Marketing of Services

Articles: Case:

none “Marketing Simulation Debriefing” (write-up not required)

As you prepare for the discussion, consider the following questions:

Who are MM’s target customers? Are all segments equally attractive to MM?

How does customer satisfaction change over time? How do you balance hard performance metrics such as revenues and profits with softer metrics such as customer satisfaction?

How do you expect MM’s competition to respond to changes you make in MM’s marketing and sales efforts?

How do you balance short term and long term investments?

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Using the Marketing Mix to Deliver the Value Proposition

Class 5 (April 10)

Topics

“Critical skills needed for a successful marketing career” Guest speaker Richard Manoogian “Products, Services and the Power of Branding - Part 2” Mid-Term Results

Pre-Work Text: Ch. 7 – New Product Planning & Development

Articles: Design Thinking

Case: none

Class 6 (April 17)

Topics “Products, Services and the Power of Branding - Part 2” “Pricing”

Marketing Math: Calculating price change impacts Beak-even analysis

Pre-Work Text: Ch. 6 – Product & Brand Strategy Ch. 11 – Pricing Strategy

Articles:

Building a Better Pricing Infrastructure

Case: Eco7: Launching a New Motor Oil

As you prepare for the discussion, consider the following questions:

How do consumers purchase motor oil?

What is the strategic role of Eco7? How should Avellin weigh consumer interest in, and willingness to pay for, a green motor oil? Is it the right product at the right time?

(write-up) What is your recommended launch strategy for Eco7? o How should Eco7 be priced? What are the profit implications

for wholesalers and DIFM stores? o How should Eco7 be distributed? What is your

recommendation regarding exclusivity for Aventage stores?

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Class 7 (April 24)

Topics “Communicating the Value Proposition: Integrated Marketing Communications” Marketing Math: IMC return on investment

Pre-Work Text: Ch. 8 – Integrated Marketing Communications

Articles: Demystifying Social Media Competing on Customer Journeys Can Social Media Cultivate Long-Term Loyalty?

Case:

“Sephora Direct: Investing in Social Media, Video, and Mobile” As you prepare for the discussion, consider the following questions:

Assuming she receives the additional funding, how should Bornstein allocate her budget across various digital categories? Given that the additional funding requested must be shifted from Sephora’s other marketing spending, where would you propose to cut? Why?

(write-up) What do you make of Sephora’s digital and social media efforts as of the fall of 2010? What do you make of Sephora’s digital and social media efforts today? What role do traditional media play in their promotion efforts today?

(write-up) What metrics do you propose Sephora Direct use to measure the success of its digital efforts going forward?

Class 8 (April 26)

Topics “Delivering the Value Proposition: Selling and Distribution” Wash-Away Clean in-class exercise Class Wrap-up

Pre-Work Text: Ch. 9 – Personal Selling: Relationship Building & Sales Management Ch. 10 – Distribution Strategy

Articles:

none

Other: Strategic Marketing Plan – Part 2 is due Case: none

Class 9 Final Exam (May 1)