COURSE DESCRIPTION

The objectives of this course is, 1) to build an understanding of the marketing function and how it relates to the organization and it's marketing decisions through general marketing principles (i.e., customer value, differential advantage, and market segmentation) 2) to illustrate the implementation of these principles through the marketing mix (i.e., product, price, promotion, distribution) and 3)to provide managers with practical experience in making marketing decisions.

This is a management oriented course designed to improve your business analysis skills and decision making abilities. Throughout the course you will be expected to act as a decision-maker. A simulation exercise and project will be used to simulate the real world in which you will be required to demonstrate: 1) knowledge and understanding of basic marketing terms and concepts; 2) skills of business analysis; 3) an understanding of marketing problems and opportunities; 4) the skills required to formulate marketing program alternatives and 5) the ability to support for your recommendations.

The course is divided into three major modules. The first module examines current methodologies and practices in marketing. Through a series of guest speakers and lectures you will be exposed to techniques and marketing practices that are currently in operation in today's firm. In many cases the methodologies are at the cutting edge of marketing science.

The second module focuses on developing your decision making skills as managers through a marketing simulation exercise. MARKSTRAT2 is a marketing simulation exercise developed to allow you to experience first hand a competitive environment. In a typical case exercise, such as those discussed in 15.810 you face a real problem and through discussion come to understand the issues and suggest a decision. That decision may be well justified, but you never face realistic market test. In the marketing simulation your decisions will be evaluated against the true market test of how well your group maximizes long term growth and profitability in a competitive environment.

The third module is a series of course mini-exercises. The exercise will provide first hand experience in the collection of consumer data, the translation of customer needs and the development of a new product concept.

MARKSTRAT2 SIMULATION

The MARKSTRAT2 strategy simulation is an exercise that has been specifically designed for teaching marketing strategy concepts. Students will be placed in teams and will compete against each other as competing firms. The MARKSTRAT2 software is available only for the PC.

The grade for the simulation will be based on the strategic plan each team develops for their firm and how well the firm achieves its objectives (70%). Twenty percent (20%) of the MARKSTRAT grade will be based on the relative growth of the firm's Net Marketing Contribution from period 1 to period 8. The remaining 10% of the grade will be based on the rank of each firm in an industry according to the cumulative net marketing contribution.

CLASS EXERCISES

Students will participate as part of a team in three class exercises. The objective of the exercises is to give students experience with several tools in marketing used to solicit and analyze consumer need requirements and benefits. The process of getting at the "Voice of the Customer" will be illustrated by collecting market research data first hand and comparing the set of customer need requirements identified between focus groups and in-depth personal interviews.

The second exercise provides students with an opportunity of translating customer needs into a product concept. Using tools such as Quality Functional Deployment , House of Quality, Pugh concept Design matrix, students will be asked to develop a concept for a new internet marketing tool.

The final exercise will require you to develop a response to a crisis marketing situation. Frequently marketing managers are presented with surprising, unforeseen, and/or unwanted market behavior (i.e. product tampering, branding mistakes, product failures). What is the role of the marketing manager in these situations and how does one protect the image of the brand to reduce the damage of such situations. Through the crisis management exercise we will explore the options a manager may have.

COURSE EVALUATION

The value of this course is heavily dependent on thorough preparation by the student. While some students may have higher skill levels than others at the beginning of the course, it is rare that a motivated hard working student cannot perform up to his or her expectations by the end of the course.

The grading will be, 50% for the marketing simulation exercise, 30% for the class exercises and 20% individual class participation. You will work in groups for the project and the marketing simulation. Grades will be assigned on a group basis for the project and simulation.