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Opening Session

Marketing Management
HEC Paris MBA
Spring Semester 2015

Dr. Stefan Worm


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Key Challenges in Marketing


High Degree of
Ambiguity in
Decision-Making

Marketers
increasingly held
Accountable for
their Actions

Cutting Across
Functions
e.g. engineering,
finance, supplychain, service,
sales

Severe
Consequences of
Mismanaged
Marketing
e.g. Kodak, Nokia,
Sony, PSA

Increasing Need
for Analytical and
Data-Driven
Approaches

Learning
Objectives

Gap Between
Marketing TalentPool and Firms
Needs

Marketing and YOUR Career?

A. Consulting

B. Private Equity & Venture Capital


C. Entrepreneur

D. General Management
E. Other corporate functions (engineering, finance,
supply-chain, service, sales)
F. Marketing & Sales function

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Introduction

Introduction

an
Stef
m
Wor

Marketing-Finance Interface
B2B Marketing
Brand Management in B2B Markets
Service Strategies in B2B Markets
Top Management Teams & Marketing

Your Experience & Expectations

Little
Marketing
Background

Large
Marketing
Background

The Groups Marketing


Background & Experience
Novices
Novices

Marketers
Marketers

Learning from your Group


Members Experience
Groups of 5-6 people:
1 traditional marketer (market research,
communication, STP, branding, distribution,
loyalty).
1 customer manager (service, satisfaction, CRM,
sales).
3-4 experts from other functions
Customer Manager

Marketer

Experience List
Traditional Marketing Experience

Customer Management Experience

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Learning Objectives for this Class

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Novices Expectations
What do you hope to learn?
Fundamentals of marketing
Basics of marketing
I hope to learn about the role that marketing plays in the world of business. I
also hope to learn marketing strategies which I can use in my professional
career.
How to think about the process of marketing as a core business concept and the
technical skills you need to apply to basic business approaches.
Create and implement a marketing strategy.
Marketing related to strategy and development.
I would like to learn how to implement in practice a Marketing Strategy that is
aligned with the overall strategy of a company.
Everything that is required to a Marketing Manager as I aim to work in this role
after the MBA.
I hope to learn basics of marketing in a practical scenario and enhance my core
skills.
I hope to learn the most effective and efficient strategies to promote a business.
The fundamentals of marketing and how they can benefit a supply chain/
operations professional.
At minimum, I would like to be in the comfortable position to manage marketing
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professionals.

Marketers Expectations
What do you hope to learn?
Creating marketing value in an organization, updates in marketing media and
measuring ROI.
How to evaluate success, marketing in different industries including business to
business.
Marketing techniques outside of the industry I have been working in.
How to catch up with the continual changes in marketing? Trends, mobile
marketing, social media marketing etc.
More in depth knowledge of the core marketing competencies, improved
understanding of the analytical capabilities required for senior strategic
marketing roles, the impact of digital on strategy today and how it is helping to
shape and inform insight, and to understand the key emerging trends for
marketers.
Understand the academic fundamentals of marketing and study best in class
methodologies that have proven to succeed across the globe. Although I have a
7 year background of working as a marketer, yet I have never really studied
marketing in school. Hence, I'm seeking to fill those gaps.
Digital marketing
I want to structure my knowledge gained from brand management experience.
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When you successfully complete


this course, you should be able to . . .
Apply the key marketing concepts and frameworks to
analyze marketing problems and business decisions.
Understand the contribution of marketing assets to
firm value and how organizations build, nurture, and
leverage these assets via market-facing business
processes.
Describe and analyze the characteristics of a specific
market using data on environment, customers, and
competitors

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When you successfully complete


this course, you should be able to . . .
(continued)
Develop and formulate a marketing strategy based on a
consideration of firm resources and market opportunities.
Estimate the financial consequences of marketing
decisions.
Understand the function of the key instruments
available to marketers: customer management, branding,
product, price, distribution, and communication.
Draw on insights from current academic research in
Marketing.

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Learning Approach

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How Do You Learn?


Activity
Learning by doing

Pragmatism
Learning when
shown how to solve a
problem

Learning
Marketing

Theorizing
Learning through structuring
and abstraction

Reflection
Learning by
observing others
and reflecting

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Learning Approach
Activity
Trying it out discover
frameworks inductively

Case
Work
Pragmatism
Solving problems
and learning new
tools

Learning
Marketing

YOU Active
Learning

Reflection
Learning from your
colleagues
experience,
knowledge, and
ideas

Lecture

Theorizing
Learn about
theoretical
frameworks

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Typical Session Structure

Lecture: Theory,
Concepts, & Approaches
[1 hr.]

Theory Recap in
Breakout
Groups
[10 mins.]

Work in
Breakout
Groups on Case
[50 mins.]

Presentation of
Case Analysis,
Discussion
[1 hr.]

Limited time for discussion during lecture part (clarification questions)


Discuss relevant experience in group during recap.
Breakout groups prepare 5-Minute analysis on flip-chart. Random
draw of 1-2 teams who present.
Everyone must prepare case in-depth before class.
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The Learning Contract


You have an obligation to help your classmates learn by bringing your
observations, insights, and experiences into the discussion
To fulfill your part of contract, you must be prepared for class

Do the preparation before you come to class


Dont just read, analyze
Be in command of the details (who, what, when, where, how, why)
Have opinions about what should be done in a case

Be open to new ideas. Dont be the cynic sitting on the fence.


If you think youll have trouble coming to class prepared,
You wont get much out of this mode of education if you are not coming to
class prepared, and others wont learn much from you
Youll also be unprepared for the exam

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4
Course Organization

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10

Readings

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Course Evaluation
Class Participation*
Group Case Write-Ups
Final Exam

33%
33%
33%

Quality of contribution to class discussion = Did it help others


learn? (versus was the answer correct?)
Clarification question vs. Illustrative contribution
Keep your contributions clear and short.
Ask yourself if you really have something to say that the group can learn from.
Be prepared for cold calls, they are part of the pedagogical approach and
enable us to also hear those who are more hesitant to show up.
Dont be offended if I do not call you in the order in which you showed up.
The exam will test fundamentals from the class.
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Ground Rules of the MBA


Program & Business Etiquette

GROUND RULES
The class starts on time, please arrive timely.
Class attendance is required.
Please avoid chatting in order to create an optimal learning
environment for yourself and your class mates.
Raise your hand when you want to speak
No laptop, phone, or tablet usage during class unless
explicitly allowed.
Please bring your name tents.

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Case Work

The problem in this case is


If I were responsible for solving the problem, I
would do the following

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Preparing the Cases Analyses


and Case Write-Ups

Take a Managerial perspective


Support your conclusions analytically
Use the data provided
Explain the rationale behind each recommendation
Develop the alternative solutions
State the relevant evaluation criteria
Make a recommendation
Read the related lecture notes if available
Document your computations (Formulae etc.)

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Case Write-Ups
Select a Name for your Team
One write-up per group
Submit by email by 12:00 noon on the day
preceding the in-class discussion of the case (8:00
in case of morning session).
Group name & number in subject line
Page limit 2 pages, 12 pt. Times New Roman font,
single spaced, with 2.5 cm margins all round,
excluding appendices for tables etc.
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Goals of Marketing
Marketing Management
HEC Paris MBA
Spring Semester 2015

Dr. Stefan Worm


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1
What is Marketing?

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Question: How would YOU define


Marketing?
A.

B.

C.

D.

E.

F.

The action or business of promoting and


selling products or services including
market research and advertising.
Marketing encompasses all the activities
organizations engage in to hear and
respond to their customers.
Marketing is the process of
communicating about a product or
service to customers, for the purpose of
influencing buyer behavior and/or
precipitate behavioral change.
Marketing is the activity, set of
institutions, and processes for creating,
communicating, delivering, and
exchanging offerings that have value for
customers, clients, partners, and society
at large.
Marketing is defined as the process of
planning, implementing, and control of
the 4 Ps (also known as Marketing
Mix): Product, Price, Place, and
Promotion.
Marketing is the department where the
most attractive women in a company
work.

0%

5%

10%

15%

20%

25%

30%

35%

Series1

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What is Marketing?
Benetton

ZARA

2000 Revenues : 2 Billion EUR


Value Promise:
Good quality
Basics
Cotton/Natural Materials

2000 Revenues: 2 Billion EUR


Value Promise:
Upscale, Latest, Cool,
Fresh Fashion
Reasonable Prices

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Sales of Zara vs. Benetton


350%

300%

Inditex Sales

Percent Change

250%
Benetton Sales
200%

150%

100%

50%
Y2002

Y2003

Y2004

Y2005

Y2006

Y2007

Y2008

Y2009

Y2010

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Source: Thomson Financial

Creating Customer-Perceived
Value as Cornerstone of Marketing

CustomerPerceived Value

Benefits (+)

Product Benefits
Service Benefits
Personnel Benefits
Image Value

Sacrifices (-)

Monetary Cost
Time Cost
Energy Cost
Psychic Cost

Work in Teams of 2: Pick the offering of a firm that you


worked for and try to find an example for each benefit
and cost category.

5 Minutes

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Definition of Marketing
Marketing encompasses all the activities
organizations engage in to hear and respond to their
customers
McGovern et al. 2004 (HBR)

Marketing is the activity, set of institutions, and


processes for creating, communicating, delivering
and exchanging offerings that have value for
customers, clients, partners, and society at large.
American Marketing Association, October 2007
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Marketing
Implementation

Advertising

Sales

ca. 1900-1920

Sales

ca.1920-1950

Relationship
Marketing

Market-oriented
Management

Historical Development of Marketing

Marketing
Implementation

Marketing Mix

Marketing Mix

Marketing Mix

Product decisions

Product decisions

Product decisions

Pricing decisions

Pricing decisions

Pricing decisions

Communication
decisions

Communication
decisions

Communication
decisions

Sales decisions

Sales decisions

Sales decisions

ca. 1950-1980

ca. 1980-1990

Starting ca. 1990

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Marketing & Strategy

Session 2

Outlook
Analysis of Strategic Situation
Environment
Market
Company situation

Session 3

Strategy Making
Formulation of alternative strategies
Evaluation of alternative strategies
Selection of marketing strategy

Session 4

Strategy Implementation
Product & brand policy
Price policy
Distribution policy
Communication policy
Customer management

Sessions 5-10

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