BU 452 Marketing Strategy COURSE OUTLINE Fall 2010 Professor: David Rose Office: P3064 Telephone: 519-884-0710 ext.

2307 E-mail: drose@wlu.ca Course Objectives The overall objective of this course is to help the student become skilled in the use of marketing planning concepts, with particular emphasis on the determination of marketing strategy considering environmental, competitive, industry, and company characteristics. The specific course objectives are to develop: 1. an understanding of the process involved in identifying, evaluating, and implementing marketing strategies, 2. a knowledge of selected strategic marketing processes, concepts, and methods, 3. an appreciation of analytical marketing tools, 4. decision-making skills in marketing strategy, and 5. oral and written skills in the preparation of strategic marketing plans. To accomplish these objectives, the course will use cases, readings, written assignments and a marketing strategy game, MARKSTRAT. Prerequisites BU 352 and BU 362 Course Materials 1. David A. Aaker, Strategic Marketing Management, Eighth Edition, Wiley, 2008. 2. MARKSTRAT Handbook and Participant Activation Key (See handout MARKSTRAT Instructions) 3. Assigned readings available via WLU Library website and BU 452 D2L site Students with disabilities or special needs are advised to contact Laurier's Accessible Learning Office for information regarding its services and resources. Students are encouraged to review the Calendar for information regarding all services available on campus.

Evaluation Procedure The weighting of the inputs for course grading are: Class Contribution MARKSTRAT Performance Article Review Company Project Final Examination Class contribution Active participation is essential to the learning process and to the success of the course. Therefore you will be graded on your individual participation including regular attendance and the quality of your contributions to the discussions of readings and cases. It is expected that you will attend all class sessions. Absenteeism will negatively affect your participation grade. MARKSTRAT Performance See separate handout: MARKSTRAT Instructions Article Review Select an article from either MIT Sloan Management Review or Harvard Business Review that deals with an issue related to marketing strategy. The article must be at least six pages long, less than two years old and not an assigned reading from BU 452 or any other course. Write a memo to a target audience of managers who are responsible for, or participate in, setting the marketing strategy for their firms. The memo is to include: 1. a summary of the article 2. the implications for managers 3. what you think of the article (value, relevance, etc.) The memo is due at beginning of class on Wednesday October 13. There is a two-page limit for the memo (12 point font, double spaced). Please attach a copy of the article to the memo. The grade for this assignment will be based on the relevance of the article to this course, the extent to which the summary contains the key messages of the article and the quality of the implications for managers. Company Project See separate handout: Company Project 20% 20% 5% 20% 35% 100%

BU 452 Fall 2010 SCHEDULE OF ASSIGNMENTS Monday September 13 Introduction to BU 452 - Marketing Strategy Wednesday September 15 Strategic Marketing Overview Accessing articles via WLU Library website Read: 1. Chapter 1 Strategic Market Management - An Introduction and Overview Questions: 1. What is Strategic Market Management? 2. Select a well-known Canadian company, visit their website and then consider their business strategy. Where do they compete? How do they compete? Monday September 20 Strategic Marketing Overview Read: 1. Markides, "A Dynamic View of Strategy, Sloan Management Review, Spring 1999, 55-63. 2. Hagel and Singer, "Unbundling the Corporation," McKinsey Quarterly, 2000 Issue 3, 147156. 3. Day, Creating a Superior Customer-Relating Capability, MIT Sloan Management Review, Spring 2003, 77-82. Questions: 1. What is Markides Dynamic View of Strategy? Compare Markides views to the concepts presented in Chapter 1. 2. What impact, if any, does the Hagel and Singer article have on Markides dynamic view of strategy? 3. What are the implications for managers of the Day article? Wednesday September 22 Strategic Analysis: Identifying Opportunities Read: 1. Chapter 2 External and Customer Analysis 2. Chapter 3 Competitor Analysis 3. Coyne and Horn, Predicting Your Competitors Reaction, Harvard Business Review, April 2009, 90-97 Questions: 1. Which of the two approaches to competitor analysis outlined in Chapter 3 would you recommend for Canadian Tire? Which approach would you recommend for Pizza Pizza? 2. Are Air Canada and Westjet direct competitors? 3. A checklist for analyzing a company's strengths and weaknesses is provided in Chapter 3. Which area would be most critical for a firm operating in the PC hardware business? Why? 4. Why do companies not react, in many cases, even when competitors actions have the potential to alter their competitive position? Monday September 27 Strategic Analysis: Identifying Opportunities

Read: 1. 2. 3. Questions: 1. Chapter 4 Market/Submarket Analysis Chapter 5 Environmental Analysis and Strategic Uncertainty Porter, "The Five Competitive Forces That Shape Strategy" Harvard Business Review, January 2008, 79-93. Porter provides a structure for analyzing the investment value of an industry or market/submarket, i.e., how profitable the average firm in the industry will be. Using the structure, assess whether each of the five factors is "good", "bad", or "can't tell" news for the tire manufacturing industry (e.g. -Firestone, Goodyear, etc.). Based on this analysis, what level of ROI would you expect firms in the industry to achieve, on average? Why does Porter not include market size and growth rate when determining the profitability of an industry or market/submarket? Perform a market analysis for the North American automobile market, including emerging submarkets, using the dimensions addressed in Chapter 4. What are the strategic implications of your analysis for Chrysler, Ford and General Motors?

2. 3.

Wednesday September 29 Strategic Analysis: Identifying Opportunities Due today: Name of company selected for Company Project Read: 1. Chapter 6 Internal Analysis 2. Westjet 2009 Annual Report (available at http://www.westjet.com/guest/en/aboutUs/mediaInvestors/financialReports.shtml) Questions: 1. Perform an internal analysis for Westjet using the aspects of internal analysis discussed in Chapter 6. 2. Which tools/approaches are most relevant for this analysis? 3. Based on your analysis, what marketing strategy would you recommend for Westjet for the next three years? Monday October 4 Competitive Advantage Read: 1. Chapter 7 Creating Advantage, Synergy and Strategic Philosophies 2. Christensen, "The Past and Future of Competitive Advantage," Sloan Management Review, Winter 2001, 105-109. 3. Christensen, Johnson and Rigby, "Foundations For Growth: How to Identify and Build Disruptive New Businesses, Sloan Management Review, Spring, 2002, 22-31. 4. Markides and Oyon, What to Do Against Disruptive Business Models, MIT Sloan Management Review, Summer 2010, 25-32 5. Adner and Snow, Bold Retreat, Harvard Business Review, March 2010, 76-81 See questions on following page Questions: 1. What is a sustainable competitive advantage (SCA)? How does a company get/keep an SCA?

2. 3. 4. 5.

Provide an example of a point of parity and a point of differentiation. What is the link between "disruptive innovations" and SCAs? Why are disruptive innovations so difficult for incumbents to compete against? What options do companies have for dealing with disruptive innovations?

Wednesday October 6 Competitive Advantage Read: 1. Porter, What is Strategy? Harvard Business Review, November-December 1996, 61-78. 2. Christensen, Anthony, Berstell and Nitterhouse, Finding the Right Job For Your Product, MIT Sloan Management Review, Spring 2007, 38-47. 3. Lauster and Neely, The Cores Competence, Strategy+Business, 04/15/05: available at http://www.strategy-business.com/media/file/rr00018.pdf (not available from library website) Questions: 1. What are the major implications of the Porter article for marketing strategy? 2. What ideas/concepts, if any, might you question or challenge? 3. Does the Christensen article support Porter's concept of strategy?

Wednesday October 13 Strategic Options Due today: Article Review Read: 1. 2. 3. 4. Questions: 1. 2. 3. 4. Chapter 8 Alternative Value Propositions Kim and Mauborgne, "Creating New Market Space," Harvard Business Review, JanuaryFebruary, 1999, 83-93. Forsyth, Gupta, Haldar, and Marn, "Shedding the Commodity Mind-Set," McKinsey Quarterly, 4, 2000, 78-85. Schrage, The Myth of Commoditization, MIT Sloan Management Review, Winter 2007, 10-14. Can differentiation be created in a new market space? Why? What is the major message in the Forsyth, Gupta, Haldar and Marn article? In the 2000s can quality be a sustainable competitive advantage? Why or why not? Why is it risky for marketers to view their products/services as commodities?

Monday October 18 First MARKSTRAT Decision Wednesday October 20 Competitive Advantage Read: 1. Chapter 9 Building and Managing Brand Equity 2. Chapter 10 Energizing the Business

3. 4. Questions: 1. 2. 3.

Berry, Carbone, and Haeckel, "Managing the Total Customer Experience, Sloan Management Review, Spring, 2002, 85-89. Lodish and Mela, If Brands Are Built Over Years, Why Are They Managed Over Quarters, Harvard Business Review, July-August 2007, 104-112. What is the value of brand equity? What's the main message in the Berry, Carbone and Haeckel article? What does Lodish and Melas article offer with respect to understanding SCAs?

Monday October 25 Second MARKSTRAT Decision Wednesday October 27 Competitive Advantage Read: 1. Chapter 11 Leveraging the Business 2. Chapter 12 Creating New Business 3. Strebel and Ohlsson, The Art of Making Smart Big Moves, Sloan Management Review, Winter 2006, 79-83 4. Suarez and Lanzolla, The Half-Truth of First-Mover Advantage, Harvard Business Review, April, 2005, 121-127. 5. Sawhney, Wolcott and Arroniz, The 12 Different Ways for Companies to Innovate, Sloan Management Review, Spring 2006, 75-81 6. Kim and Mauborgne, "Blue Ocean Strategy," Harvard Business Review, October, 2004, 7684. Questions: 1. What are the implications of the Strebel and Ohlsson article for growth options that leverage the core business? 2. When is there a first-mover advantage? 3. Is "wait and see" a viable marketing strategy? If yes, when? 4. On which innovation dimension(s) should Ford be focusing its efforts? 5. What does Blue Ocean Strategy say about creating new businesses?

Monday November 1 Third MARKSTRAT Decision

Wednesday November 3 Competitive Advantage Read: 1. Chapter 14 Setting Priorities for Businesses and Brands The Exit, Milk and Consolidate Options

2. 3. Questions: 1. 2. 3. 4. 5. 6.

Baghai, Smit and Viguerie, Is Your Growth Strategy Flying Blind?, Harvard Business Review, May 2009, 86-96 Starbucks articles available on BU 452 D2L site What are the key decision rules for managers facing mature/declining markets? How does a more granular approach improve resource allocation decisions? What impact have Starbucks actions in 2008 and 2009 had on the Starbucks brand? What is Starbucks sustainable competitive advantage? What trade-offs does Starbucks need to make as it attempts to grow, e.g., Customer experience versus expanded product line, modes of entry? Using the BCG matrix and/or Market Attractiveness/Business Position Matrix, what advice would you give Howard Schultz?

Monday November 8 Fourth MARKSTRAT Decision

Wednesday November 10 Global Strategies Read: 1. Chapter 13 Global Strategies 2. MacMillan, van Putten and McGrath, Global Gamesmanship, Harvard Business Review, May 2003, 62-71 Questions: 1. Are strategic alliances an important alternative for Canadian companies wishing to expand beyond Canada? 2. What is the main message in the MacMillan, van Putten and McGrath article? How does it relate to the concepts discussed in Chapter 13?

Monday November 15 Fifth and Sixth MARKSTRAT Decisions

Wednesday November 17 Applications Company Project Presentations Due today: Company Project Report

Monday November 22 Seventh and Eighth MARKSTRAT Decisions

Wednesday November 24 Applications Read:

1. Questions: 1. 2. 3.

Dell articles on BU 452 D2L site.

Which course concepts might explain Dells success, and/or lack of success, over the years from 1997 to 2010? Are Dells recent moves consistent with course concepts? What recommendations can you make for Dells current marketing strategy, based on course concepts?

Monday November 29 Implementing Strategy Read: 1. Chapter 15 Organizational Issues 2. Webster, Malter and Ganesan, The Decline and Dispersion of Marketing Competence, Sloan Management Review, Summer 2005, 35-43 3. Moore, Geoffrey A., To Succeed in the Long Term, Focus on the Middle Term, Harvard Business Review, July-August, 2007, 84-90 4. Rust, Moorman and Bhalla, Rethinking Marketing, Harvard Business Review, JanuaryFebruary 2010, 94-101 Questions: 1. What are the major issues to be considered in implementing a marketing strategy? 2. What is the role of marketers in strategic market management? 3. What is the main message in the Moore article? 4. How does the role of a Chief Customer Officer differ from that of a CMO?

Wednesday December 1 - MARKSTRAT Summary and presentations

Due today: MARKSTRAT Report

Monday December 6 - Course Summary