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The University of Texas at Austin

McComb’s School of Business — TEMBA

MKT382 - Industrial Marketing Management
Strategy and Implementation for Technology-based Products

Kevin Williams Spring 2003 GSB 3.104 6:00pm—10:00pm Tuesdays

Overview and Objectives:
Many of an enterprise’s strategically important decisions involve marketing issues:
understanding how to properly segment the market and target the right customer(s),
differentiating the product/service offerings, formulating pricing and distribution channels,
forming the alliances and network relationships necessary for dynamic, global marketplaces.
This course focuses on these issues for companies selling technology-based products and
integrates the impact of strategic marketing decisions on the financial performance of the
enterprise. Specific objectives:
• Highlight the differences between consumer goods and industrial marketing.
• Understand the difference between breakthrough technology (brave new world) vs.
incremental improvement (better, faster, cheaper) and the impact on marketing decisions.
• Provide decision making frameworks for managing the marketing process, e.g.
o Technology diffusion models,
o Economic value pricing,
o Lifetime value of a customer.
• Integrate marketing frameworks with financial results and business models.
• Focus on the balance of growth, risk and profitability when evaluating strategic
marketing alternatives.
• Relate the creation of customer value to shareholder value.
• Look at the importance of intangible assets (intellectual property) to sustainable
competitive advantage.
• Examine the interplay of internal efficiency (supply chain management) and external
relationships (customer, distributor, partner relationship management).
Format and Performance Evaluation:
The course will emphasize case discussion, although short lectures, additional readings and guest
speakers will also be used. The emphasis will be on integration of skills and concepts through the
thorough analysis and examination of cases.
Grading will be based on class participation, an individual written case analysis and a group case
analysis/presentation, as follows:

• Individual class participation 25%
• Written case assignment 35%
• Group case assignment/presentation 40%

opinions. Given the limited number of class sessions. of course. issues and management problems. breakeven. etc. 90% of life is just showing up. based on intellectual rigor and powers of persuasion are critical. real options. DCF. But. objectives. a different set of facts. preferably several days in advance to just get a feel for it. weaknesses. Skim the case quickly.g. communicating.” I suggest the following approach: 1. judging. e. critical facts and assumptions. What are the market conditions? What do the economics look like? Use any analytical tools that seem relevant. • Analysis – do your comments reflect in-depth analysis of the cases? Did you think about the issues or are your comments just gut reactions? Are your comments based on evidence. much less the “answers. MKT382 – Industrial Marketing Management – Spring 2003 p. supportable assumptions and relevant experience? • Relevancy – are your comments timely and linked to the comments of others? Do your comments add value to the discussion and move it in a constructive direction? Are you just “lobbing in” a canned response? • Risk-taking – are you willing to participate? Take a contrarian’s viewpoint? Test new ideas? Question assumptions? Or. students are expected to attend EVERY class. etc. • Peer evaluation – toward the end of the course we will evaluate each other and I will consider this peer input as an important part of the participation grade. I will usually start class by asking for a volunteer. are all your comments “safe”? • Clarity – Reaching class consensus is not necessarily important. 3. thinking. Prepare your analysis considering the company’s strengths. specific problems. facts. EVERY student should plan to participate in EVERY class session. Class participation grades will be based on a number of factors. Porter ICA. Also. Everyone will have read and analyzed the case so a rehash of the general situation is not necessary. listening. For class discussion purposes I suggest that you write yourself an executive summary outlining the above. 2 of 8 Class Participation An important part of this course is the opportunity to interact with other students and to further develop management skills such as reading. reacting and persuading. Read the case slowly and carefully noting the key issues. conceptual clarity and focused debate. involving both the content and the process of your participation: • Attendance – as Woody Allen said. Notes on Case Analysis Each case is. 2. 4. Set it aside and let the questions begin to form in your mind. . What alternatives are open to the company? What assets are available or required? What changes to the business processes might be considered? What are the financial implications? What will the competitive response be? 5. That person will be expected to give a quick summary of the relevant issues and critical facts in the case. analysis. There never seems to be enough information and often the issues are elusive. given the small class size. SWOT. or “cold calling” on someone to open the discussion. Develop a set of recommendations.

These will be used in grading. Group Case Assignment/Presentation By the fifth class session students should take the initiative to form teams for the final case assignment. Teams will prepare their case and present to the class. 2003. clarity and brevity. 3 of 8 Written Case Assignment Everyone will analyze the same case and provide a comprehensive written analysis at the beginning of class on February 25. There is no prescribed format for the report but it should balance thoroughness. . The case assignments will be made by about the eight or ninth class session. Prepared slides and discussion should not take more than 45 minutes and then the class will have 20-30 minutes to ask questions and challenge the team on its recommendations. MKT382 – Industrial Marketing Management – Spring 2003 p. Peer evaluation: I will provide forms for the class to use in evaluating the team presentations. A 2-3 page executive summary. with recommendations should be prepared for me. Teams should consist of no more than four people and they should have a mix of skills and backgrounds.

May 1. strategic alliances and value networks. 62 (January 1998) “Corporate Imagination and Expeditionary Marketing.” Gary Hamel and C. Bower and Clayton M. (A) Richard Ivey School of Business Case #9A99A036 . March-April 1998. 1995 “Note on Strategic Alliances. Cases: None. Prahalad. Cases: Innovation at 3M Corporation (A) and (B) (HBS Case #9-699-012 and 9-699-013 AOL-Time Warner Merger (HBS Case #9-701-036) Session 4—February 4: Launching new technologies and designing new products. Cases: NTT DoCoMo: The Future of the Wireless Internet? (HBS Case #9-701-013) Research in Motion Ltd.” Joseph L. Inc. Jul/Aug 1991 Cases: Microsoft 1995 (HBS Case #9-795-147) Ecton. Readings: “High-Tech Marketing: Concepts. 1997. Readings: “Time Pacing: Competition in Markets That Won’t Stand Still. 11(2). Christensen. pages 7-25. 1995. Moore. Readings: “Ignore Your Customer. “Market-Based Assets and Shareholder Value: A Framework for Analysis. 59-69 (HBR Reprint 98202) “Disruptive Technologies: Catching the Wave. competitive advantage and financial performance. Harvard Business Review.” Geoffery A.” Charles W. “Establishing a Standard: Competitive Strategy and Technological Standards in Winner-Take-All Industries.” Harvard Business School. Session 2—January 21: Understanding technology-based markets and value creation. • Positioning organizations for growth • Linking business assets. Academy of Management Executive. Jan-Feb 1995. Harper Collins Publishers. Continuity. Summer 1989. Journal of Marketing. 1997. Note #9-298-047. Moriarty and Thomas J. Hill. Sloan Management Review. November 12.” Justin Martin.” Srivastava. risk and profitability Readings: “Inside the Tornado. 43-53. 4 of 8 Course Schedule: Topics and Assignments Session 1—January 14: Introduction to the course and the analytical frameworks. Fortune. processes. and Change.” Rowland T.L. MKT382 – Industrial Marketing Management – Spring 2003 p. Shervani and Fahey. Kosnik.” Harvard Business Review. K. • Using customer value to drive shareholder value • Balancing growth. (HBS Case #9-699-018) Session 3—January 28: The value of customer input. Harvard Business Review.

Readings: “Manage Customers for Profits (Not Just Sales).” Journal of Marketing.” HBR. Commercializing the Billion Dollar Idea (C) (HBS 9-701-126) Session 7—February 25: Customer Value. HBS Note 9-501-045 Cases: Customer Value Measurement at Nortel Networks--Optical Networks Division (HBS 9-501-050) . Special Issue 1999. Commercializing the Billion Dollar Idea (A) (HBS 9-701-124) Rambus Inc.. Harvard Business School Reprint #9-999-003.. Jul-Aug 1997 (HBR Reprint #95101) “Customer Intimacy and Other Value Disciplines. Journal of Marketing Research. Readings: “Discovering New Points of Differentiation”. 1994 “Precision Pricing for Profit in the New World Economic Order. (HBS 9-698- 079). differentiation.” Shocker. Channel Change: The Impact of the Internet on Distribution Strategies.. MacMillan and Rita Gunther McGrath. Treacy and Wiersema. Harvard Business Review.” Journal of Marketing. Harvard Business Review. Ian C. BH036 Cases: Dell Online (HBS #9-598-116) Lotus Development Corporation Channel Choice: Direct vs. Distribution. Srivastava and Ruekert. HBR.: Sustaining Value. MKT382 – Industrial Marketing Management – Spring 2003 p. Sep-Oct 1998 “Unbundling the Corporation. Business Processes. Cases: Deere & Co. 60(1) “Marketing. Shapiro et al. Dolan. positioning and response. and Shareholder Value: An Organizationally Embedded View of Marketing Activities and the Discipline of Marketing. Readings: “Customer Profitability and Lifetime Value. 5 of 8 Session 5—February 11: Channels of distribution.” HBR.” Sharpiro. Shareholder value and financial performance Turn in Written Case Analysis of Du Pont Kevlar Aramid Industrial Fiber. pricing and branding strategies. (HBS #9-587-078) Session 6—February 18: Competitive analysis. Business Horizons Article.. segmentation. Harvard Note 9-589-102 “Premarket Forecasting of Really New Products.” Leuhrman. Sep-Oct 1987 (Reprint #87513) “Challenges and Opportunities Facing Brand Management. (HBS 9-899-001) Discussion of Du Pont case Session 8—March 25: Financial performance and customer value (cont.” Elie Ofek.” Robert J. May-Jun 1995 “Sustaining Value. Harvard Business Review. Mar-Apr 1999 “The Options Approach to Capital Investment.) Readings: “Strategy as a Portfolio of Real Options. Commercializing the Billion Dollar Idea (B) (HBS 9-701-125) Rambus Inc. Jan-Feb 1993 Cases: Rambus Inc.

Inc. HBS Case # 9-302-068 Session 11—April 15: Communications. 239X “Tocqueville Revisited: The Meaning of American Prosperity” Charles Handy. HBR Nov-Dec 1998 “Discovering New Value in Intellectual Property. HBS 9-802-050 Session 10—April 8: Marketing management and ethics. (C) (BP272C) Steven C. HBR R0101C Cases: Monsanto: Technology Cooperation and Small Holder Farmer Projects. HBR R0111J Cases: Lonestar Electronics. Readings: “What’s A Business For?” Charles Handy. Brandt Session 12—April 22: Summing up Readings: “Having Trouble with Your Strategy? Then Map It. 6 of 8 Session 9—April 1: Intellectual Property.: The Evolution of a Startup. HBS 9-502-026 Session 13—April 29: Team presentations Readings: None Cases: Collabrys. (B) (BP272B) Steven C. Inc. Brandt Lonestar Electronics. (A) (BP272A) Steven C. 5165 Cases: Documentum. Inc. Howard Zaharoff. HBR Onpoint Article. HBS Note 9-897-046 Cases: Surface Logix. Leadership and Change Readings: “We Don't Need Another Hero” (HBR OnPoint Enhanced Edition) 7702 “The Power of Talk: Who Gets Heard and Why” Deborah Tannen. Inc.” Kaplan and Norton.” Myra Hart. Inc. HBS 9-593-005 . HBS 9-603-064 Hewlett-Packard Imaging Systems Division: Sonus 100 C/F Introduction. HBR Onpoint Article. Brandt Lonestar Electronics.” Kevin Rivette and David Klein. HBR R00109 “Protection of Intellectual Property in the United States. Software and Information Products Readings: “Versioning: The Smart Way to Sell Information. (HBR OnPoint Enhanced Edition) 9977 “Leadership: Sad Facts and Silver Linings” Thomas J.. HBS 9-593-080 GenRad. Peters. 1990 (B): The VXIbus Standard. MKT382 – Industrial Marketing Management – Spring 2003 p. Varian. Inc.” Carl Shapiro and Hal R.

MKT382 – Industrial Marketing Management – Spring 2003 p. 7 of 8 Session 14—May 6: Team presentations Readings: None Cases: BOC Group: Omnimedia (A). HBS 9-587-080 Green Marketing at Rank Xerox. HBS 9-594-047 .

negotiation of terms. due diligence. University of Texas at Austin where he teaches technology marketing and strategic performance. He has been active in the Austin entrepreneurial community as a consultant. a NASA biotechnology spin-off and tenant of the Austin Technology Incubator. develop strategic marketing plans and partners. implement operations. .B. He has helped numerous companies refine their business plans. and fill key management positions. Williams was founder and CEO of Zeoponics. raise capital. Prior to that. He has also helped develop and implement merger and acquisition strategies. Inc. Previously.A in Technology Management and Entrepreneurship from the University of Texas at Austin and a B. Preceding his entrepreneurial and investment activities. Williams is also a Business Fellow with the Center for Customer Insight at the McCombs School of Business. Mr. He took an active role in deal evaluation. Mr.B. joining the firm in early 2000. an investor. Mr. Williams spent 14 years in various marketing and business development positions with Rockwell International and Texas Instruments.A. He holds an M. in Information Systems and Accounting from the University of North Texas. and the management of all portfolio companies. 8 of 8 Kevin Williams Bio Kevin Williams is a Venture Partner with ARCH Venture Partners.. Williams was the COO of Sandefer Capital Partners. and a principal since 1992. MKT382 – Industrial Marketing Management – Spring 2003 p. LP (a $500 million private equity investment fund associated with Ziff Brothers Investments).