mgsm820 marketing management unit guide · interaction/exchange between the company and its...

MGSM820 Marketing Management Unit Guide, 2014 Term 1

MGSM820

Marketing Management

Unit Guide

2014 Term 1

Dr Lara Moroko

Email: [email protected]

Phone: +61 2 9850 9602

Fax: +61 2 9850 9019

mailto:[email protected]


Last Updated Monday, 17 March 2014 NB This Unit Guide is subject to change. For latest version refer to Student Website.

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About this unit guide We strongly recommend that you read this Unit Guide carefully to understand what is required of you to successfully complete this unit.

1. Unit overview Unit Name MGSM820 Marketing Management

Unit Description The marketing function of any company forms a bridge between its internal structures, resources and goals and the external market place in which it operates. Through marketing we facilitate an exchange with customers, i.e. understanding what customers need and providing it profitably and sustainably. In every market across the globe, leading companies are those that have an intrinsic understanding of their customers and use this understanding to shape their market winning strategies.

MGSM820 provides participants with tools, techniques and frameworks to assist in managerial decision-making in relation to the marketing function. This includes identifying markets and segments, understanding consumer behaviour, strategic targeting and positioning and the latest approaches to product, pricing, distribution and communications. Above all, this unit teaches participants how to think about the marketing function in relation to the business as a whole in order to create sustainable value for the firm and its stakeholders.

Credit Points: 4

Contact Period: 40 hours

Assessments: Quiz 1 (10%), Quiz 2 (10%), Team Marketing Plan (30%), Final Exam (50%)

Textbook: Osterwalder, Alexander & Pigneur, Yves (2010) Business Model Generation, First Edition, Wiley, ISBN: 978-0470-87641-1 Order directly from http://www.businessmodelgeneration.com/book, or join the Co-op Bookshop for AUD20 and order the textbook to get a discount: http://www.coop.com.au/bookshop/action/DataSubjSelect

In this unit, students are required to:

Prepare for and participate in all Team Discussions and activities

Complete all unit activities and exercises

Complete the Assessment tasks

http://www.businessmodelgeneration.com/book

http://www.coop.com.au/bookshop/action/DataSubjSelect



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2. Unit Objectives The objectives of this unit are to enable participants to:

Apply key concepts to inform their management decision-making at a local and global level

Use key marketing techniques and tools in their marketing activities to create sustainable value

Take advantage of tools and techniques which are current and relevant to practising managers

These objectives will be pursued through:

Self-preparation and individual study: textbook and article readings

Weekly lectures, class discussions and debates

Class exercises and case studies

Group work activities

3. Unit alignment with MGSM’s mission-driven attributes

Leadership: The unit develops skills required of leaders with respect to the synthesis of a wide array of market information in order to make well-informed and financially robust strategic decisions

Global mindset: The unit enhances the ability to assess the implications of strategic marketing decisions from a whole of entity perspective, across a wide spectrum of stakeholders

Citizenship: The unit enables learners to apply socially and environmentally responsible marketing actions, meeting the needs of customers, businesses and society now and in the future

Creating sustainable value: The unit develops skills to identify appropriate marketing activities to create, deliver and exchange sustainable value across industries and contexts

4. Learning Outcomes On completion of this unit, participants should be able to:

Discuss marketing management theories and practices

Perform a critical analysis of an enterprise’s marketing environment and marketing management plan, across a diverse range of global contexts, by applying key concepts and theories presented in this unit

Create a marketing plan which takes into account the global operating environment of an enterprise, it’s resources and constraints and which includes marketing activities that drive the creation of sustainable value

Analyse and argue a case using evidence, frameworks and enhanced critical thinking



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5. Unit Topics The unit will be presented over 10 topics as follows:

Topic Date Topic Textbook reading Compulsory Reading

1 14 March

What is Marketing? How does it impact our business?

Canvas Overview: pp 1-44

Blue Ocean Strategy: pp 226-231

Iacobucci, D (2012), Marketing Management, Chapter 1 “What is Marketing”, pp 2-8

Levitt, T. (1991), Marketing Myopia, From Marketing Classics: A Selection of Influential Articles. B. M. Enis, K. K. Cox and M. P. Mokwa. Upper Saddle River, Prentice Hall.

2 15 March

What is our Market? How do we find out about it?

Business Model Environment: pp 200-215

Detailed SWOT Assessment: pp 216-225

Hollensen, S (2010), Global Marketing - A Decision-Oriented Approach 5th Ed, Chapter 5 "Global Marketing Research" pp 173-202

3 15 March

How does our Market Behave?

Customer Insights: pp 126-133

Alexander Osterwalder Blog Post: “How to Achieve Product-Market Fit with our Brand-New Value Proposition Canvas”

Clay Christensen's, “Milkshake Marketing”, HBS Working Knowledge, Feb 2011

4 16 March

What is our Market Offering?

Value Proposition (VP): pp 22-25

Baker, M and Hart, S (2007), Product Strategy and Management (2nd Ed), Chapter 2, "The Product in Theory and Practice" pp:40-71.

Deschamps, J and Nayak, P (1995), Product Juggernauts, Harvard Business School Press, Chapter 3 “Formenting a Customer Obsession”, pp 70-112. Focus on pp 86-94

5 16 March

Who are our Customers?

Customer Segments: pp 20-21

Walker, O, Gountas, J, Mavondo, F and Mullins, J (2009), Marketing Strategy – A Decision-Focused Approach, Chapter 6 “Targeting Attractive Market Segments”, pp 131-151

6 21 March

How are we Positioned?

Now and in the Future?

Value Proposition (VP): pp 22-25

Walker, O, Gountas, J, Mavondo, F and Mullins, J (2009), Marketing Strategy – A Decision-Focused Approach, Chapter 7, “Differentiation and Positioning” pp 152-172

Pine, J and Gilmore, H (2008), "The eight principles of strategic authenticity", Strategy and Leadership, Vol 6, No. 3, pp 35-40

7 22 March

How do we Create Revenue for our Business?

Revenue Streams (R$): pp 30-33

Patterns: pp 56-107

Burk Woods, M (2010), Essential Guide to Marketing Planning, 2nd Ed, Chapter 7 “Planning for Pricing”, pp 136-157

8 22 March

What Channels do we use to create value for our customers?

Channels (CH): pp 26-27

Patterns: pp 56-125

Marshall, G and Johnston, M (2010), Marketing Management, Chapter 15 "Managing Marketing Channels and the Supply Chain", pp 410-433

9 23 March

How do we manage stakeholder relationships through all touchpoints?

Customer Relationships (CR): pp 28-29

TBA

10 23 March

Creating Sustainable Value

Triple Bottom Line Business Models: pp 262-265

Case study: Ray Anderson and Interface Carpet case study

Watch: Ray Anderson explains what sustainability means at Interface , The business logic of sustainability at Interface

Posner, B (2009), “One CEO’s Trip From Dismissive to Convinced”, MIT Sloan Management Review, Vol 51, No 1, pp:47-51

19 April 2014 Final Exam

http://businessmodelalchemist.com/blog/2012/08/achieve-product-market-fit-with-our-brand-new-value-proposition-designer.html


http://www.youtube.com/watch?v=l_P_V0jk3Ig




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6. Required and recommended texts and materials Unlike many MGSM units, for this unit we will be using a prescribed text plus selected chapters from a broad range of post-graduate textbooks and general management books. We have taken this approach to provide students with the most up-to-date material for the post-graduate level of study.

Prescribed textbook

The main purpose of prescribed textbook is to help you to understand how you should think about the marketing function in relation to the business as a whole. It should be stressed that this is not a marketing book, per se, but outlines an excellent platform for strategically managing the interaction/exchange between the company and it’s customers (i.e. marketing management), in practice.

It is a very good idea to skim through the whole textbook before classes begin and then go back to the weekly readings, as prescribed, for a more detailed look at the contents. You will get a better sense of how the information fits together and the way that the design thinking approach works.

Osterwalder, Alexander & Pigneur, Yves (2010) Business Model Generation, First Edition, Wiley, ISBN: 978-0470-87641-1

Prescribed (compulsory) readings

See the Prescribed Readings listed on page 4 of this Unit Guide. Your ability to pass this course is very heavily reliant on your familiarity with these readings. They form the basis of the weekly topic tests and the final exam. These readings have been selected because they give the most efficient overview available of the theories and frameworks that we cover in marketing management.

Supplementary unit materials

We have also provided additional material (articles, book chapters and video links) as a resource for you. These supplementary unit materials are not compulsory and have been provided as extra resources should you be particularly interested in a topic, or need to access supplementary information to resolve an issue with your specific Team Marketing Plan.

Writing and citation resources

If you require assistance in writing, particularly academic writing and/or business reports, the Macquarie University Library provides three excellent web sites covering writing skills, researching online: and a guide to citations and referencing

http://writinggateway.mq.edu.au/

http://infoskills.mq.edu.au/

http://www.lib.mq.edu.au/resources/subject/readyref/cites.html

http://writinggateway.mq.edu.au/

http://infoskills.mq.edu.au/

http://www.lib.mq.edu.au/resources/subject/readyref/cites.html



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7. MGSM iLearn and other required technology You will receive information, including your id/password, for accessing your MGSM iLearn unit after you have enrolled.

You can log in (using your id and password) to your MGSM iLearn unit at: https://ilearn.mq.edu.au/login/MGSM/

Use the MSGM iLearn unit to access the following:

Unit materials eg videos, readings

Quizzes, exercises and other activities

Assessment information and submission online

Online Final exam (when exam time comes)

To access resources and assessment tasks in your MSGM iLearn unit, you will need:

A computer with access to the internet. Your MSGM iLearn unit will operate on the following web browsers (upgrade your browser to its most recent (non-testing) version):

Mozilla Firefox

Google Chrome

Apple Safari

Microsoft Internet Explorer (version 8 or later).

A printer connected to your computer so that you can print out unit materials. You may need to print out supporting data for your online Final Exam.

https://ilearn.mq.edu.au/login/MGSM/



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8. Assessment tasks Your overall mark in this unit will comprise of three components:

Assessment Component Due Weighting

1. Quiz 1 26 March 2014 10%

2. Quiz 2 6 April 2014 10%

3. Team Marketing Plan 18 April 2014 30%

4. Final Examination 19 April 2014 50%

Total 100%

Please note that to pass the subject, students must pass the final examination and perform satisfactorily in each of the remaining components. In addition, to obtain an overall grade of HD for the subject, the students must also obtain an HD in the final examination.

In fairness to other students, penalties may apply for late submission of assessment items.

8.1 Quiz 1 Due 26 March 2014

Weight 10%

Format Answer the Quiz online in the unit

8.2 Quiz 2 Due 6 April 2014

Weight 10%

Format Answer the Quiz online in the unit

Two online, open book quizzes will be held during the week before the second block and two weeks after the second block. The quizzes will assess learning of the terminology and frameworks of the relevant book chapters. The purpose of each test is to ensure that all students attend class with a base knowledge of the relevant subject area. This then enables class interaction to be utilised to maximum effect.

The quizzes will assess learning from set textbook chapters only. Each test will be made available online 5 days before the due date. The test can only be taken once and must be completed within 60 minutes.



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8.3 Final examination Date 19 April 2014

Weight 50%

Format Open book exam

The exam format will be open-book, and will consist of a combination of case study and essay style questions. Further information will be provided in class.

Please note that to pass the unit students must pass the final examination and perform satisfactorily in each assessment component.

You are expected to present yourself for examination at the time and place designated in the MGSM at

https://students.mgsm.edu.au/hong-kong-students/study-2/exams/

Special consideration for final exam

The only exception to not sitting an examination at the designated time is because of documented illness or unavoidable disruption. In these circumstances you may wish to consider applying for Special Consideration. See the section on ‘Extension and Special Consideration Request’ below for more information.

If a Supplementary Examination is granted as a result of the Special Consideration process the examination will be scheduled after the conclusion of the official examination period. You are advised that it is Macquarie University policy not to set early examinations for individuals or groups of students. All students are expected to ensure that they are available until the end of the teaching term that is the final day of the official examination period.

8.4 Team Marketing Plan Due 18 April 2014, 5pm HK Standard Time

Weight 30%

Format Report (5,000 word limit, not including appendices and references)

The project requires the production of a marketing plan for a product, either existing or planned. The plan should have a 12-24 month focus.

Preparing the Team Marketing Plan

Throughout this course, you will be assigned weekly Team Exercises. These exercises are designed to lead you through some of the key preparatory work for completing your Team Marketing Plan.

For the final plan, you will draw on your output from the weekly Team Exercises; however, you will also need to include additional components. The content of the Plan is representative of strategic marketing plans prepared commercially by internal marketing departments and consultants. As such this is an excellent opportunity for you to participate in the construction of what is likely to be a business critical document in your corporate life now, or in the future.

https://students.mgsm.edu.au/hong-kong-students/study-2/exams/



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Suggested Content Your team marketing plan should include the content you would expect to see in a standard strategic marketing plan, with some additional inclusions that specifically relate to the learning objectives of this course. For a comprehensive overview of suggested content, see Team Marketing Plan – Suggested Content and Marking Guide (MGSM iLearn; Additional Resources Category)

Formatting In the document, you should pay close attention to acknowledging all sources of data, especially existing internal company documents, plans, market research studies etc. In particular, you should cite any references fully and in an acceptable style as noted in the Student Handbook.

The document should be presented in a professional manner, in line with what would be presented by consultants to a management board. Specifically, it is vital that your document is easy to read. As such you must use at least 11 point font and 1.5 spacing with 2.5cm margins.

The word limit is absolute. Assignments which are longer than the prescribed limit will be penalised.

Group Presentation

You will be required to present your objectives and key recommendations in sessions 8,9 or 10. More information about the presentation will be given in Session 1.

Submission The designated group member should submit an electronic copy to [email protected] by 18 April 2014, 5pm HK Standard Time of:

Team Marketing Plan

Completed Group Assignment Cover Sheet

The softcopy may be submitted to automatic plagiarism detection software (Turnitin).

Peer Evaluation In allocating individual marks for the Marketing Plan, the team mark may be adjusted up or down on the basis of peer evaluations of individual contributions. The peer evaluation form is available in MGSM iLearn. Please download from the Peer evaluation section of the online unit and save completed form as: Team #_Your Name.doc, and send it per email to Oliver Manlutac ([email protected]) by 18 April 2014, 5pm HK Standard Time.

You will not receive your final grade if you do not submit this form. All fields including student name, student ID and team number must be on the form or else it will not be accepted.

Late assignments Late assignments will be penalised up to 10% per day unless you have successfully applied for special consideration. Applications for extensions must be made before the submission date, and will only be granted in exceptional circumstances.

Further information about the marketing plan, including guidelines and marking guide, will be provided online. No pre-submission assignment marking

You/your group is expected to submit your Team Marketing Plan in its final, completed form by the due date. Lecturers will not mark or assess any draft plans prior to actual submission of the final version.





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9. Extension and special consideration request Extension and special consideration requests for assessments and exams must be made to your lecturer with appropriate evidence to support the request. Each request will be treated on its merits.

MGSM is committed to equity and fairness in all aspects of its learning and teaching. In stating this commitment, MGSM recognises that there may be circumstances where a student is prevented by unavoidable disruption from performing in accordance with their ability. MGSM recognises at times that an event or set of circumstances may occur that:

Could not have reasonably been anticipated, avoided or guarded against by the student AND

Was beyond the student’s control AND

Caused substantial disruption to the student’s capacity for effective study and/or completion of required work AND

Substantially interfered with the otherwise satisfactory fulfilment of unit or program requirements AND

Was of at least three (3) consecutive days duration within a study period and/or prevented completion of a formal examination

This policy is instituted to support students who experience serious and unavoidable disruption such that they do not reach their usual demonstrated performance level.

If you need to apply for special consideration, see our policy and complete the form: https://students.mgsm.edu.au/assets/PDF/Student-Website/Exam-APScons.pdf

10. Academic honesty policy It is a fundamental principle that all staff and students act with integrity in the creation, development, application and use of ideas and information. This means that:

All academic work claimed as original is the work of the author making the claim

All academic collaborations are acknowledged

Academic work is not falsified in any way

When the ideas of others are used, these ideas are acknowledged appropriately

You must become be familiar with the:

University Policy on Academic Honesty http://www.mq.edu.au/policy/docs/academic_honesty/policy.htm

University Statement on Ethics http://www.mq.edu.au/ethics/ethic-statement-final.html

The policies and procedures explain what academic dishonesty is, how to avoid it, the procedures that will be taken in cases of suspected dishonesty, and the penalties if you are found guilty. Penalties may include a deduction of marks, failure in the unit, and/or referral to the University Discipline Committee.

https://students.mgsm.edu.au/assets/PDF/Student-Website/Exam-APScons.pdf

http://www.mq.edu.au/policy/docs/academic_honesty/policy.htm

http://www.mq.edu.au/ethics/ethic-statement-final.html



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Examples of dishonest academic behaviours are:

Plagiarism

Deception

Fabrication

Sabotage

11. Attendance policy The interactive learning environment is central to the MGSM experience. Students are required to attend all classes for the duration of each class. We recognise that exceptional circumstances may occur; circumstances such as unavoidable travel on behalf of your organization or the serious illness or injury of you or a close family member.

Special consideration may be given for a maximum of 20% non-attendances for such circumstances as long as, where possible, lecturers are notified in advance and supporting documentation provided. Failure to abide by these conditions may result in a Fail grade being recorded.

12. Grading policy MGSM operates on the premise that, through assessment, students are encouraged to engage in their education, rather than merely pursue grades. The grades that students achieve at MGSM reflect assessment of the extent to which they have met the learning outcomes of a unit.

Marks awarded in the continuous assessment items will not automatically guarantee a specific grade. Final grades for all units are formally determined at the Examiners' Meeting, in accordance with MGSM’s assessment procedure. The following grade descriptors are School-wide standards used to determine final grades for units in the award suite of programmes. The inclusion of a specific reference to unit learning outcomes within each descriptor enables these descriptions to be applied to all coursework units of study.

High Distinction (HD)

Provides consistent evidence of deep and critical understanding in relation to the learning outcomes. There is substantial originality and insight in identifying, generating and communicating competing arguments, perspectives or problem solving approaches; critical evaluation of problems, their solutions and their implications; creativity in application as appropriate to the discipline.

Distinction (D)

Provides evidence of integration and evaluation of critical ideas, principles and theories, distinctive insight and ability in applying relevant skills and concepts in relation to learning outcomes. There is demonstration of frequent originality in defining and analysing issues or problems and providing solutions; and the use of means of communication appropriate to the discipline and the audience.



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Credit (CR)

Provides evidence of learning that goes beyond replication of content knowledge or skills relevant to the learning outcomes. There is demonstration of substantial understanding of fundamental concepts in the field of study and the ability to apply these concepts in a variety of contexts; convincing argumentation with appropriate coherent justification; communication of ideas fluently and clearly in terms of the conventions of the discipline.

Pass (P)

Provides sufficient evidence of the achievement of learning outcomes. There is demonstration of understanding and application of fundamental concepts of the field of study; routine argumentation with acceptable justification; communication of information and ideas adequately in terms of the conventions of the discipline. The learning attainment is considered satisfactory or adequate or competent or capable in relation to the specified outcomes.

Fail (F)

Does not provide evidence of attainment of learning outcomes. There is missing or partial or superficial or faulty understanding and application of the fundamental concepts in the field of study; missing, undeveloped, inappropriate or confusing argumentation; incomplete, confusing or lacking communication of ideas in ways that give little attention to the conventions of the discipline.

Grades awarded are aligned to the following numerical ranges as outlined in the Table below:

Grade High Distinction

Distinction Credit Pass Fail

% 85-100 75-84 65-74 50-64 0-49

13. Disclaimer Unit materials and content are provided for educational purposes only, and are not intended as commercial advice. Please seek independent professional counsel when the need arises.



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14. Session Topics and Readings

Session 1: What is Marketing? How Does it impact our business

Key Concepts: The role of marketing in the firm

Exchange as a source of sustainable value creation

Product, sales and marketing orientation

Business Model Canvas -

o marketing relevant building blocks

o value creation focus

References: Canvas Overview: pp: 1-44Blue Ocean Strategy: pp 226-231

Levitt, T. (1991), Marketing Myopia, From Marketing Classics: A Selection of Influential Articles. B. M. Enis, K. K. Cox and M. P. Mokwa.

This piece by Levitt, while old, is probably the best known article in Marketing and is generally considered to be the most influential. It provides a useful and easy to read introduction to the essence of marketing, customer focus, and the challenges of environmental change.

Optional resources

Iacobucci, D (2012) ,Marketing Management, Chapter 1 “What is Marketing”, pp: 2-8.

Iacabucci provides a brief overview on what marketing is and why it is important.



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Session 2: What is our Market? How do we find out about it?

Key Concepts: Actors and Forces that make up the Environment

SWOT Analysis

Marketing Research

o Primary vs Secondary Data

o Types of Marketing Research

o Methods of Marketing Research

o Qual vs Quant

References: Business Model Environment pp:200-215 Detailed SWOT Assessment pp:216-225

These sections help you to understand the environment within the Canvas operates.

Hollensen, S (2010), Global Marketing - A Decision-Oriented Approach 5th Ed, Chapter 5 "Global Marketing Research" pp: 173-202

This chapter outlines the main methods of marketing research and gives a good overview of the uses of each method as well as a process for putting together a research plan.

Optional resources

Big Data: Earls, M. (2002), Drinking from the big ‘data hosepipe’, Market Leader, Quarter 1, pp:32-35.

Today's marketers have access to more consumer data than ever. Earls argues that only because we can analyse and re-analyse data

doesn't mean that we should- often it is more important to be less precise in order to identify the big picture.

Proctor, T, (2005), Essentials of Marketing Research 4th Ed, Chapter 1 "Nature of Marketing Research" pp: 1-31

Tony Proctor takes you through the foundations of marketing research, including the philosophy of research, the different uses of market research and ethical considerations.



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Session 3: How Does our Market Behave?

Key Concepts: The buying process

o low/high involvement goods

o B2B, B2C

o leverage points

o roles

Influence of individual and social factors

Impact of buying context

References: Customer Insights pp: 126-133.Alexander Osterwalder Blog Post: “How to Achieve Product-Market Fit with our Brand-New Value Proposition Canvas”

This is preparatory work for arriving at Customer Segments (CS), Value Proposition (VP), Channels (CH), Customer Relationships (CR) and Revenue Streams (R$) decisions

Clay Christensen's, “Milkshake Marketing”, HBS Working Knowledge, Feb

2011

This short article introduces the "jobs-to-be-done" concept: looking at products the way customers do, as a way to get a job done.

Optional resources

Solomon, M. R., (2010), Consumer Behavior: Global Edition, 9/E, Chapter 4 Parts 1 & 2, 'Consumer Motivation', pp: 86-115.

This chapter helps you to understand the types of human needs and motives that drive consumer behaviour.

Edelman, D.C. 2010. “Branding in the digital age.”, Harvard Business Review, Vol 88, No 12, pp: 62-69.

Edelman anlayses the consumer decision making process and how it has changed in recent years due to digital interactions. Smart marketers need to study the 'consumer decision journey' for their products and use the insights they gain to revise strategy, media spend, and organisational roles.






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Session 4: What is our Market Offering?

Key Concepts: Types and characteristics of market offering - products, services, experiences, ideas, people

KANO model - product attributes - basis for differentiation and innovation

References: Value Proposition (VP) pp: 22-25

Baker, M and Hart, S (2007), Product Strategy and Management (2nd Ed), Chapter 2, "The Product in Theory and Practice" pp:40-71.

An introduction to product strategy, including the different types of market offerings (products, services, experiences, idea, etc)

Deschamps, J and Nayak, P (1995), Product Juggernauts, Chapter 3 “Formenting a Customer Obsession”, pp: 70-112. Focus on pp: 86-94

This chapter describes how companies can fuel a product and market obsession that leads to successful new product creation processes. The Kano model (pp 86-94) is introduced and provides you with a good framework to analyse your marketing offering in more detail.

Optional resources

Michel, M., Brown, S. and Gallan, A. (2008), Service-Logic Innovations: How to Innovate Customers, Not Products, California Management Review, Vol 50, No 3, pp:49-65

This article goes through a practical process for finding customer focussed innovation triggers for products and services. Examples help to show how the process can be effectively used in practice.

Baker, M and Hart, S (2007), Product Strategy and Management (2nd Ed),

Chapter 3: pp:89-101 Innovation Diffusion Model (including research)and Chapter 4: pp: 103-135 Product Lifecycle

Two important concepts used by marketers to understand how quickly a market is likely to grow and the type of support customers may need.

Applying the Business Model Canvas

Using a simple "product canvas" with the business model canvas Going through the Osterwalder and Pigneur process of product design

http://www.youtube.com/watch?v=QoAOzMTLP5s





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Session 5: Who are our Customers

Key Concepts: Segmentation methods

Segmentation strategy - niche (including the long tail), growth, large market/differentiated, mass market.

Matching segmentation strategy to broader marketing and corporate strategy

Identification of segments in practice

Evaluation of prospective segments

References: Customer Segments pp: 20-21

Walker, O., Gountas, J, Mavondo, F and Mullins, J. (2009), Marketing Strategy – A Decision-Focused Approach, Chapter 6 “Targeting Attractive

Market Segments”, pp: 131-151

Summary of segmentation methods and strategy types. The chapter also goes through a step by step segmentation evaluation process.

Optional resources

Iacobucci, D. (2012), Marketing Management), Chapter 3 “Targeting”, pp:

28-37

Iacobucci provides a comprehensive and vivid description of what Targeting is and why Marketers do it.

Christensen, C., Cook, S., and Hall, T. (2005). Marketing Malpractice,

Harvard Business Review, 83(12), 74-83.

Christensen et al talk about segmentation based on the “job” the customer wants done, rather than along traditional product lines, can be more fruitful for companies particularly when identifying potential growth markets.

The Long Tail, Chris Andersen:

Wired founder Chris Andersen discusses his theory of the “long tail”, a way of viewing markets as many small niches rather than large segments serviceable by mainstream “hit” products and services:

Chris Andersen's blogpost summarising the Long Tail theory Chris Andersen discussing the implications of the Long Tail

http://www.longtail.com/the_long_tail/2005/09/long_tail_101.html

http://www.youtube.com/watch?v=0Yku0GTrcuw



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Session 6: How are we Positioned? Now and in the Future?

Key Concepts: Touchpoint maps, positioning maps and the value proposition - construction and uses

The positioning process

Taking account of the past, future, corporate resources and strategy - Gilmore and Pine dynamic positioning and strategic authenticity

Brand architecture - uniting product, segment, and positioning decisions.

References: Value Proposition (VP) pp: 22-25

Walker, O., Gountas, J, Mavondo, F and Mullins, J. (2009), Marketing Strategy – A Decision-Focused Approach, Chapter 7, “Differentiation and

Positioning” pp: 152-172.

Following on from the Session 5 reading on Segmentation and Targeting, this chapter gives a good overview of why it is important to establish a point of differentiation and how to go about establishing market positioning and a value proposition.

Pine, J and Gilmore, H, (2008), "The eight principles of strategic

authenticity", Strategy and Leadership, Vol 6, No. 3, pp.35-40.

In this article, Pine and Gilmore go through, step by step, a process of what they call achieving "strategic authenticity". This process can also be used to establish "dynamic positioning" that is beneficial for giving clarity to marketing decisions now and in the future.

Optional resources

An illuminating discussions on segmentation and value propositions in B2B markets: A market segmentation example

http://gregstrosaker.com/2009/12/a-market-segmentation-example/



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Session 7: How do we Create Revenue for our Business

Key Concepts: Impact of pricing on the marketing mix Approaches to

pricingInfluences on price setting

Internal - marketing objectives, positioning

External - demand managementConsumer evaluation of prices - predictable irrationality

References: Revenue Streams (R$) pp: 30-33 Patterns pp: 56-107

Burk Woods, M (2010), Essential Guide to Marketing Planning, 2nd Ed,

Chapter 7, "Planning for Pricing" pp: 136-157

The basics of pricing strategy outlined clearly, including a discussion on setting pricing objectives

Optional resources

A great example of value based pricing? The smart phone. They cost around $200 to make and sell (in the case of the iPhone) for at least $650. That's a healthy margin! What does it cost to make an Apple iPhone 5?

Session 8: What Channels do we use to Create Value for our Customers?

Key Concepts: Strategic value of the distribution channel Physical

distributionInformation, promotion, contact Negotiation and financing

Risk and production sharingChannel strategy - intensity, channel levels Successfully growing distribution channels

References: Channels (CH): pp: 26-27 Patterns pp: 56-125

Marshall, G and Johnston, M (2010), Marketing Management, Chapter 15

"Managing Marketing Channels and the Supply Chain", pp:410-433

This chapter summarises the core concepts of distribution and channel management including functions, levels, distribution intensity and "push and pull" distribution.

Optional resources

Kumar, N (2004), Marketing as Strategy, Chapter 4 "From Declining To

Growing Distribution Channels", pp:87-114

Kumar gives examples from a range of industries on how increasing distribution channels can revive market growth. He offers a checklist and decision process for integrating new channels into an existing network.

http://www.washingtonpost.com/business/technology/apples-iphone-5-what-does-it-cost-to-make/2012/09/20/ced2395a-031b-11e2-91e7-2962c74e7738_story.html



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Session 9: How do we Manage Stakeholder Relationships through all Touch Points

Key Concepts: Communications as stakeholder relationship management

o Types of audiences/stakeholders

o Types of communication channels - pros/cons

Establishing two way channels and platforms for partnerships

o Co-creation - product, packaging, distribution, comms (social media)

Integration - how to construct an integrated comms audit and plan

References: Customer Relationships (CR) pp: 28-29

Additional reading TBA

Optional resources

Co-creation: New Pathways to Value (2009).

This is a summary of the research currently being undertaken by the London School of Economics (LSE) and a consulting partner (Promise) around the idea of co-creation and how it creates sustainable value in the relationship between businesses and their customers. It has some great, practical examples of companies nurturing a two-way exchange with customers.



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Session 10: What Channels do we use to Create Value for our Customers?

Key Concepts: The difference between sustainable marketing and creating sustainable value

Canvas triple bottom line

The principle of exchange

PLUS: Exam and assessment prep

References: Triple Bottom Line Business Models pp: 262-265Case study: Ray

Anderson and Interface Carpet case study

Watch: Ray Anderson explains what sustainability means at Interface , The business logic of sustainability at Interface

Posner, B (2009), “One CEO’s Trip From Dismissive to Convinced”, MIT Sloan Management Review, Vol 51, No 1, pp:47-51

In 1994, Ray Anderson, CEO of Interface Carpet and Fabric Company had an epiphany about the environmental damage his company, his

industry and the current form of commerce is doing to the planet. This case discusses some details of how this pioneering 200company is “going green”, making profit

Optional resources

Reinartz, W and Kumar, V (2002), “The mismanagement of customer loyalty”, HBR, July, pp: 4-12.

This article by Reinartz and Kumar debunks common wisdom about customer retention and provides you with empirically driven insights about the link between loyalty and profits

Greenwashing index

The Greenwashing Index asks contributors to post and review "green" marketing claims and product credentials. It's a good example of how technology is enabling consumers to "pull back the curtain", see behind company's green credential claims and report what they find.

Triple Bottom Line Canvas in Action

In this presentation, Osterwalder goes through the use of the BMC to create enterprises that take into account social and environmental costs and benefits. There is a detailed example given of Grameen Bank, a micro lender in Bangladesh. It's an excellent example of how truly sustainable value is created. The slideshow includes a triple bottom line Canvas on slide 108



http://www.greenwashingindex.com/

http://www.slideshare.net/slideshow/embed_code/1904118?rel=0

mgsm820 marketing management unit guide · interaction/exchange between the company and its...

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