University of San Diego

School of Business Administration

GSBA 504-Spring 2005 CUSTOMERS AND MARKETS
Dr. T. (Soma) Somasundaram Olin 112 619.260.4889 (Voice) 619.260.4891 (Fax) Office Hours: Mon, Wed 3:00- 5:30 p.m. or by appointment. I encourage you to contact me by e-mail first so as to maximize our productivity.

soma@sandiego.edu www.sandiego.edu/~soma

Course Description This course examines the key elements of marketing and the economic concepts that underlie them. Topics include creating and capturing value, analysis of industries, competitive structure and competitors, product differentiation; branding; pricing; promotion; and distribution. Common business processes and business skills practiced include formulation of a marketing strategy, developing and positioning a product; choice of distribution channels; promotional techniques; demand estimation; pricing decisions. Teaching methods are lecture, case studies, simulations etc., and a portfolio project. Course Objectives As a basic course in marketing, GSBA 504 is designed to provide a survey of the marketing process in the firm and in society through an analysis of the environments that impact marketing. In addition, the course examines contemporary issues in marketing that affect the efficient and effective operation of both the micro and macro marketing systems. The principal objective of this course is for each participant develops an understanding of the field of marketing, including its scope, history, theoretical foundations, challenges, opportunities, and limitations. Specific objectives include: 1. Enable students to appreciate the key role marketing plays in assuring the success of a firm. 2. To provide students a familiarity with and an understanding of the fundamental concepts of economics and marketing. 3. To make students familiar with the basic elements of an economic and marketing analysis. 4. To illustrate how marketing interacts with other functional areas; 5. To insure future general managers are aware of the important issues undertaken by
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marketers, and that a marketing attitude pervades their thinking. 6. To show the importance of marketing activities at a broader societal level; and 7. It is also hoped the course will develop the student's awareness of the many challenging career opportunities in marketing.

Course Materials: A. Reading packets from USD Bookstore. B. Marketing Mistakes Robert F. Hartley (selected chapters). Course Requirements Assessment of your progress is in this course will be based on your performance of several activities. A. Class Discussion The success of this class is heavily dependent on our ability to create an atmosphere conducive to collaborative and participant centered learning. It is my belief that each of you has the intellect and life experiences that could be of value to others in the class. You need, therefore, to take responsibility to share your ideas and insights and help move the class forward in a substantial and meaningful way. You also need to be able to listen, respond and where appropriate challenge ideas and views being proffered by me or other class members. On each class day we will begin with a general discussion of current events in marketing. To aid the discussion, you are urged to come to the class with articles, product or package samples or any other material that has caught your attention. Attach to each example a halfpage note explaining its relevance and how it reflects or contradicts theoretical issues discussed in class. You are also encouraged to post items of class interest to the web forum http://ac.sandiego.edu/forums and respond to topics and posts of other class members. In addition, you may be called on to summarize and highlight the key ideas of the assigned readings of the day. Your contributions to class discussions are worth 15% of the course grade. B. Project You and members of your team will engage in an in-depth analysis of a selected industry. The analysis will cover the business environment and its changes, the industry and its competitive structure and an outline of a marketing plan that enables a firm to capture a marketing opportunity that your team has identified. The detailed requirements for the project, which represents 40% of the course grade, have been covered under a separate handout.

C. Written analysis and class discussion of Harvard cases Four comprehensive cases from the Harvard Business School cases have been selected for written analysis and class discussion (representing 30% of the course grade). The cases are: The Medicines Company, and Suzuki Samurai (written analysis and class discussion) and SONYS AIBO and BMW Films (class discussion only). D. Hartley Synopses Every member of the class should prepare a two page (8.5x11) double-spaced typed, tightly written outline of each assigned Hartley chapter. The outlines (representing 15% of the course grade) will then serve as the basis for their initial input in the class discussion. The outline should: 1. Identify the important lessons in the chapter. IMPORTANT: This is not to be a rehash of what Hartley has to say on the matter! Use bullets and headlines to aid clarity. This section should take up exactly one page or less. 2. Discuss how another firm is still committing some of the mistakes, perhaps in a completely different industry. This section should be exactly one page or less. E. Grading The final course grade will be based on performance in the following components. Class discussion Project Written Harvard cases (4)(20%+10%) Hartley synopses (4) 15% 40% 30% 15% 100 %

F. Attendance Policy Class attendance is required. I recognize that many of you have busy work related travel commitments. Please minimize time away from class and clear absence from class with me in advance. G. Academic Integrity USD's policy on academic integrity is explicitly a part of this course. Acts of academic dishonesty are taken seriously and dealt with harshly. Acts of academic dishonesty include a) unauthorized assistance on an examination or quiz, b) falsification or invention of data, c) unauthorized collaboration on an academic exercise and d) plagiarism. If you have any doubts about actions of your own or other students concerning this course, see the professor for an interpretation of this policy.

Weekly Class Schedule:

COURSE OUTLINE: Spring 2005

Week Of Jan 31 Content/Topics Introduction to course and term project. Creating and Capturing Value Doing Business in the Global Economy, What is Marketing, Marketing Management, Company Orientations toward the marketplace, Defining Customer Value and Satisfaction, Delivering Customer Value and Satisfaction, Retaining Customers. Creating and Capturing Value (Continued) Corporate Strategic Planning, Analysis of the Environment, SWOT Analysis, The Marketing Process, The Marketing Plan. Customer Buying Behavior A Model of Consumer Behavior, Major Factors Influencing Buying Behavior, The Buying Decision Process. Analyzing Industries, Competitive Structure and Competitors Perfect Competition, Behavior of Perfectly Competitive Firms, Long-run Equilibrium, Efficiency Considerations, Price and Output Considerations Under Monopoly, Monopolistic Competition, Characteristics of an Oligopoly, Models of Non-Cooperative Oligopoly. Identifying the Companys Competitors, Identifying the Competitors Strategies, Determining the Competitors Objectives, Assessing the Competitors Strengths and Weaknesses, Estimating Competitors Reactions. Read: HBS Note R0302H Clueing in Customers , SONYs AIBO Deliverables and Activities

Feb 7

Read: HBS Note 9598061 Note on Marketing Strategy and HBS Note 9594125 Scope and Challenge of Business-to-Business Marketing Submit: Hartley Assignment: Southwest Airlines.

Feb 14

Read: HBS Note: 9376054 Note on Structural Analysis of Industries and 9373094 Simple Economic Tools for Strategic Analysis.

Feb 21

Marketing Research Marketing Information Systems, The Marketing Research Process, Characteristics of Good Marketing Research, Secondary Research, Survey Research, Competitor Research, Using the Web for Research Feb 28 Demand and Sales Forecasting An overview of Demand Forecasting and Measurement. Estimation of demand function using regression analysis. Demonstration of time series and econometric techniques to forecast sales. Discussion of distinctions between approaches to estimating demand and sales. Market Segmentation, Targeting and Positioning Market Segmentation, Market Targeting, Overview of Product Perception and Preference Mapping, Tools for Competitive Differentiation, Developing a Positioning Strategy, Repositioning.

Read: HBS Note: 9579136 Note on Market and Consumer Research and HBS Note: 88401 Four Steps to Forecasting Total Market Demand.. Submit: Hartley Assignment: United Way.

Read: HBS Note 9599110 Analyzing Consumer Perceptions, 9599112 Analyzing Consumer Preferences, BMW Films

Mar 7

Read: HBS Note: 9579072 Product Life Cycle Brand Management Mar 14 The Product Life Cycle, Stages of The Product Life Cycle, The Concept of Market Evolution, Product Mix and Product Line Decisions, Brand Management. Task: Select Presentation Dates Submit: Project Review Written analysis/prepare to discuss Harvard case: 9589028 Suzuki Samurai

Apr 4

Services Marketing Nature and Classification of Services, Characteristics of Services and their Marketing Implications, Marketing Strategies for Service Firms.

Read:

Communication Apr 11 The Communication Process, Steps in Developing Effective Communications, Developing and Managing an Advertising Program, Sales Promotion Management, Public Relations, Sales Force Management.

Read: HBS Note: 9599087 Integrated Marketing Communication Submit: Written analysis/prepare to discuss Harvard case: 502006 The Medicines Company

Pricing. Analysis of Costs, Short-run, Long-run, Average and Marginal Costs, Economies of Scale, Perspectives on Price, Price Setting Issues, Pricing Methods (markup pricing, price discrimination, joint product and transfer pricing). Adapting Price to Accomplish Key Objectives, Initiating and responding to Price Changes.

Apr 18

Read: HBS Note: 9580091 Note on Pricing, 9599114 Note on Behavioral pricing and 574082 Note On Marketing Arithmetic And Related Marketing Terms. Submit: Hartley Assignment: Vanguard.

Distribution Apr 25 The Nature of Marketing Channels, Channel-Design Decisions, Channel Management, Cooperation and Conflict in Channels, Overview of Retailing and Wholesaling, Physical Distribution Management. Implementation May 2 (Final Exam) Team Project Presentations In this final module, groups present their marketing plans to the class and invited senior management. Presentations: Team Project Read: HBS Note 9590045 Channel Management. Submit: Hartley Assignment: Rubbermaid.

May 9

May 16