First Year Marketing Course Marketing - Ii

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FLAME Pune PGDM 2010-2011

FIRST YEAR MARKETING COURSE


MARKETING –II

Instructor:

Prof. Preeta Vyas,


Faculty, AIIM , Ahmedabad.

I. OBJECTIVE

The objectives of this course are to develop the participants’ basic analytical skills,
conceptual abilities and substantive knowledge in the field of marketing management.
It seeks to achieve the objectives by helping the participants undergo meaningful
exercises in decision making in a variety of real life marketing situations.

This course builds a foundation for those participants who plan to take marketing
courses in the second year. It is also designed to serve as a terminal course for those
not intending to specialize in marketing.

II. COURSE CONTENT - A BRIEF OUTLINE

Marketing has come to stay as a critical function that determines the success or failure
of an organization. Marketing is the total system of activities designed to scan and
identify market opportunities and to plan, price, promote and distribute
products/services/ ideas that satisfy certain requirements of chosen target market(s), in
a manner that achieves the organizational objectives.

For identifying market opportunities, a marketing manager group’s potential


customers/ buyers/consumers into segments and then selects target segment(s) for the
organization to achieve organizational goals as well as to satisfy customer’s
requirements better than the competitors. This typically entails a thorough analysis of
the buyer behavior, the organization’s objectives and strengths and weaknesses, the
external environment, and the demand potential of the opportunities under
consideration.

Thereafter the marketing manager uses his bag of marketing tools to transform the
identified opportunities into achieved organizational goals. These marketing tools
broadly consist of the product, price, promotion (including personal selling, consumer
promotion, trade promotion and advertising) and distribution (including physical
distribution and logistics). The marketing manager makes decisions regarding each of
the tools in an integrated manner to formulate a marketing strategy and plan for tapping
the opportunity (ies). The Manager uses marketing research to assess the nature and
size of the opportunity as well as test the design and implementation of each of the tools
of marketing and the marketing strategy and plan. He uses/designs a marketing
organization for executing all the above decisions.

MARKETING-I dealt with

 Market Opportunity Identification:


 Customer Analysis – Segmentation, Positioning, and Consumer Behavior
 Competition Analysis
 Market Assessment
 Marketing Environment
 Demand Assessment and Forecasting
 Designing the Offer
 Product Decisions
 Pricing Decisions

MARKETING-II will focus on the following modules:

 Delivering the Offer


 Distribution Management
 Sales Management
 Communication Strategy and Management
 Marketing Research and Information System
 Marketing Strategy, Planning, and Organization
 Emerging Issues in Marketing

III. DURATION OF THE COURSE

First year marketing course is offered as a two-term course. Each term will have
approximately 25 sessions including quizzes, but excluding mid-term and final
examinations.

IV. LEARNING METHOD AND MATERIAL

Case and Conceptual discussions will be used as the major learning methods for this
course. Cases and other readings would be available in Mimeographed form from the
Case Unit.
The following book would be used for assigning conceptual readings in the course.

Marketing Management-PHILIP KOTLER, KEVIN LANE KELLER,


ABRAHAM KOSHY AND MITHILESHWAR JHA Prentice-Hall of India,

For providing some of the current contextual understanding of Indian market, we would
also use the following booklet. Additional contextual notes might be distributed / kept on
reserve in library.
- Statistical Outline of India, Tata Services Ltd. (2009-2010)
-The Marketing White book 2009-10 – The Essential Marketer’s Handbook
(Businessworld)
LEARNING THROUGH CASE METHOD

Effective learning through case method requires individual preparation, small group
discussion before class, in class discussion, and in and out of class reflection. For
making best use of the learning opportunity following steps may be followed:

1. Responsibility of learning and running the class through discussions/


presentations is of the participants. Each participant must participate and present/
share his/ her analysis in the class to build the skills of presentation and the
attitude of collective learning. Individual participant/ Groups are encouraged to
make presentations of their analysis/ recommendation of the case/ reading
material. However, formal presentation through PowerPoint etc. (which might
take time) is not a requirement.

The composition of groups shall remain the same as in Marketing Management-


I

2. It would be necessary for you to prepare each day's case individually and then
discuss in the group. Please come to the class prepared with specific
recommendations/conclusions and the rationale thereof. Also, discussions in
your group after the class for consolidating the learning of the day would be
very useful for your learning.

3. After discussion in-group, each group should make a one-page synopsis on each
case and bring it to class. It should contain:

1. Major issues
2. Analysis for resolving the issue(s)
3. Recommendations/inferences on the major issues

The primary purpose of the synopsis is to prepare you for participation in the
class. You may also be asked to submit the synopsis at the beginning of the
class.

4. You must reflect on preparation and learning both after each case situation/ class
and module both individually and in your group. Please prepare a learning diary in
which you record your daily learning about contents and decision making skills.

5. You are welcome to discuss and clarify any doubts with the instructors/academic
associates during office hours.

V. EVALUATION
Class participation, quizzes, assignments, and term-end examination will be the major
elements used for evaluating the participant's performance in the course:
Element Weight %

Class Participation 20
Projects/ Assignments 50
End-term Examination 30

Examinations, assignments and quizzes might be administered through cases or may


include questions for testing conceptual knowledge. Participant's consistent attendance
and participation in the class discussion will constitute the grade for class participation.

VI. INSTRUCTORS AND ACDEMIC SUPPORT

Should you require any assistance, please do not hesitate to contact the instructor by
email/phone. Office hours could be availed of at your initiative. In case of
urgent/pressing matters, you could also seek appointment outside these hours.
Email: preeta.vyas@aiim.ac.in
Module 1: Sales & Distribution Management
Session wise Schedule
Session Day / Date Module(M), Case(C) , Reading(R), Suggested Reading
(SR)
Guidelines for Preparation (GP)

M: SALES AND DISTRIBUTION MANAGEMENT: SESSION 1 - 9

R: 1. Chapter-15: Designing and Managing Value Networks and Marketing Channels


(Kotler, Keller, Koshy and Jha (KKKJ)).
2. Chapter-16: Managing Retailing, Wholesaling, and Market Logistics (KKKJ).

1 C : Friendly Ford
R : Heskett, James, et. al. (1994), ‘Putting the Service-
Profit Chain to Work’ Harvard Business Review, 72(2),
March-April.
R: Designing and Managing Value Networks and
Marketing Channels (KKKJ).

GP :
1. What would you do to improve the sales process at
Friendly Ford?
2. What changes, if any, would you make in the after
sales follow-up process?
3. What areas of company (Ford Motor Company) –
dealer interactions need to change to improve
Friendly Ford’s rankings? How much do these
rankings matter?
4. What changes, if any, would you recommend in the
present system of evaluating the sales process and
after sales service follow-up? If you change
anything, why would your suggested changes lead
to an increase in sales to meet sales and profit
targets?
5. What is the role of sales-force compensation
systems on improving customer perceptions, sales
and profitability at Friendly Ford?

C : Consolidated Drugs Inc. (HBS- ICH DCIM49 EA-g


94R)
2
R: Managing Personal Communications: Direct
Marketing and Personal selling, (KKKJ)

GP:
1. Analyze the situation carefully and diagnose the
problems faced by Mr. Trucks.
2. Analyze and understand the sales force structure and size
in the division. What structure and size would you
recommend and why?
3. Do you think the territories need to be redrawn and/or
reassigned? If no, why? If yes, please propose a new
design and/or assignment and justify the same.
4. Prepare an implementation plan for the new size of sales
force and the design of territories. Identify and recommend
solution for problems arising due to the new allocation.

3 C: ICICI Rural Banking


GP: 1. Assess the proposed franchisee system for rural borrowers.
2. Identify three most important changes that you would make to
provide value to rural customers at a proft to a bank. Justify.

C :GoodYear AquaTred (HBS Case # 9-594-106)


4
R: Designing and Managing Value Networks and
Marketing Channels (KKKJ).
GP :
1. What is Goodyear’s position in the tyre industry?
2. How do consumers buy tires? How can the market
be segmented?
3. Assess the evolution of Goodyear’s distribution
channels in the US tire replacement market.
4. Should Goodyear broaden its distribution to mass
merchandisers? Should they be offered aquatred?

C: Wesco Distribution (HBS Case # 9-598-021)


5-6
GP :
1. What is the nature of service that Wesco is
providing in the market?
2. What is the nature of the channel, how is it
changing and how appropriate is it for Wesco?
3. What services should Wesco be providing to its
customers?
4. How should Wesco recognize and handle trends in
customer behavior?
5. What should Wesco do with the NA programme?

Off for Field Projects


Group Presentations: SDM
7-8

Project Brief: Distribution and Sales Management

The project is intended to acquaint you with the management of sales and distribution
systems by companies.
For the above, you may like to follow the guidelines as given below:
1. Choose one organization (a company or a channel intermediary) dealing in
one of the chosen product categories. If you wish, you may continue with your
previous assignment’s (from marketing 1) company/ product/ category.

PRODUCT CATEGORY MATRIX

DURABLE NON DURABLE SERVICES

CONSUMER

INDUSTRIAL

2. For the choices you made in item 1 above, study:


a. Structure of Sales and Distribution system.
b. Role of each of the members of the system.
c. Terms and Conditions of different intermediaries.
d. The business and the operations of the chosen organisation.
e. The relationships and expectation of the chosen organisation from
(i) The supplier(s) (wholesaler/ dealer/ CFA as applicable)
(ii) The customer(s)
(iii) The product principal (company etc.)
f. The expectations of (b) (i), (b) (ii), and (b) (iii) from the chosen
organisation (as perceived by the chosen organisation).
g. What marketing decisions are made jointly, and which ones
independently?
h. Physical distribution: order volume, order frequency, delivery
quantity and mode of transportation.
i. Sales incentives and trade promotions. (Promotion flow)
j. Information flow.
k. Financial transactions and credit terms.
l. Basic economics of business.
3. On the basis of your study, identify significant problem(s)/ decision area(s)
from the point of view of any one of the following, and suggest an action plan
to resolve the problem(s) identified:
(i) The organisation.
(ii) Key supplier.
(iii) Channel leader.
(iv) Overall channel functioning.
4. Prepare a brief report (not exceeding 1500 words of text) for submission and a
few minutes presentation for sharing your conclusions and justifications in the
class.
Module 2: Marketing Communications
Session Schedule

Session Day / Date** Module(M), Case(C) , Reading(R), Suggested Reading


(SR) Guidelines for Preparation (GP)

C: Britannia Khao World Cup Jao (A). (IIMA- Mar 328)


9-10 R: Chapter-3: Selecting the Appropriate Promotional
Tools, (From Schultz, Robinson, and Petrison).
GP: 1. Understand and evaluate the promotion and its
implementation.
2. Please suggest suitable changes in the programme
and its implementation and justify.
3. Please draw up a template for planning and
implementing promotion programme.

C : Naukri.com: Marketing Communication for an Online


11-12 Business
R : Chapter-17: Designing and Managing Integrated
Marketing Communications (KKKJ).
GP :
1. What is the business model for naukri?
2. Delineate and evaluate its present marketing
communication activities?
3. Recommend a new communication plan for naukri –
given the objective of growing to a Rs. 200 crore
company by March 2008 with the present product
portfolio.

C : British Airways: “Go for it, America!” Promotion.


13 (HBS- 589-089)
R : Chapter-18: Managing Mass Communications:
Advertising, Sales Promotions, Events, and Public
Relations (KKKJ).
GP : 1. Understand the promotion programme developed by
British Airways.
2. Identify the critical decisions taken and critique the
same.
3. Should the programme be implemented as is? If not,
suggest suitable changes.

Group Presentations on Communication Campaigns.


14-15
GP: For your group select a communication campaign in a
product category and a few communication tools of
brands/ offers in that category. Study the tools
carefully and understand broadly the market situation
of the category and the strategies of the brands/ offers/
companies whose communication plan you have
selected. In this context prepare your presentation and
report around the following questions/ issues:

1. What are the objectives of the respective


communication plans/ tools? What are the
possible marketing objectives, which you can
infer for the campaign as a whole and its
components?

2. What in your opinion are the target audiences?


Please evaluate the message
strategies. Are the message strategies likely to
achieve the communication objectives? If so, how? If
not, why not, and what modifications would you
suggest

3. What in your opinion is the creative execution


methods adopted in the respective communication
tools? Do you think the creative executions are
effective? If so, why and how? If not, why not, and
what modifications would you suggest?
4. Prepare a brief report [not exceeding 1000 words of
text) for submission and a few minutes presentation for
sharing your conclusions and justifications in the class.

Module-3 Marketing Research and Marketing Startegy

16-17 T: Marketing Research


C: Chemical Products (A)
R: Chapter-4
GP: 1.Do you agree with the problems as defined in the
CPL(A) case (decision problems, research problems
and information needs). If yes, why?
2. If no, suggest suitable modifications in the problem
definition and justify the same.
3. Understand and critique the process of defining the
Problems
Marketing Strategy
C: Gatorade
18 R: Chapter-2 & 21 (KKKJ)
GP: Prepare a detailed Marketing Plan for possible introduction of
Gatorade in Canada.

19-20 Contemporary Issues in Marketing


Group Presentations and review of learning

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