New Product Marketing

BBUS 543                                                                                FALL 2004

 

Professor P.V. (Sundar) Balakrishnan                                     Room: UWB1-240

Email: sundar@u.washington.edu                                           Phone: (425) 352-5384

HOMEPAGE: http://faculty.washington.edu/~sundar/NPM/

ElectronicReserves (ER): http://eres.bothell.washington.edu/coursepage.asp?cid=289

 

Course Objectives

 

The purpose of the course is to explore various issues and problems that are faced by managers making decisions in the marketing of new products and services.  The course is intended to: 

(1)   Acquaint students with the idea of a new product marketing process such as opportunity identification, concept selection, product design, pre-test and test marketing, launching and profit management;

(2)   Demonstrate the utility of formal models and approaches in addressing relevant problems involving new products with a greater focus on the use of these models.

 

The course would be very useful for those students interested in pursuing careers in marketing, consulting and general management.  This course is integrative and interdisciplinary — it builds on the background that you have already established in the other Business classes.  The focus here is on the development and implementation of both the tactical as well as the strategic aspects of marketing decisions. 

 

            To this end, the New Product Marketing course is a “laboratory” designed to provide you with an opportunity for integrating the various marketing concepts in the formulation of a coherent business decision.  This course should help to:

  1. Enrich your understanding of various marketing concepts; and
  2. Sharpen your familiarity with the problems facing Multi-Product, Multi-Market organizations.
  3. Gain a better appreciation of the challenges inherent in developing and implementing New Product marketing decisions in a complex environment.
  4. Provide additional and new frameworks for developing more effective marketing strategies.

 

LEARNING Philosophy:

            To achieve the objectives of this course, we will employ cases and a computer simulation as the pedagogical vehicles for learning by doing. 

This is an innovative course that can be a lot of fun.  However, the onus is on you and your group members to make sure that you get the most out of this unique class.

 

COURSE MATERIAL:

1.    The Marketing Game, (2002) by Mason, Charlotte H. &  William D. Perreault, Richard D. Irwin. (TMG!) Book with CD-ROM.  THIRD Edition.  McGraw-Hill. ISBN  0072513802.

 

2.    New Product and Brand Management: (2002). by Gary L. Lilien and Arvind Rangaswamy. Paperback - 144 pages Book & CD-Rom edition Addison-Wesley Publishing; ISBN: 0321046439.(L & R)

 

  1. Case Packet:   Contains a set of Cases. (CP).

1, 2, 3 & 5 Available from UWB Book Store.

 

  1. Electronic Reserves Readings Packet. (ER)

4. Available from UWB Library’s Electronic Reserves

 

  1. Product Leadership: by Robert G. Cooper, Perseus Publishing; ISBN: 0738201561; (May 2000). (C).  

5.  Available also from Amazon.com

 

 

GRADING:

            The FINAL grade for this course will be based on your performance on a number of different criteria.  In this class, you will have some responsibility, as in the real world, for evaluating the work of the other groups.  The weights for the various criteria are as follows:

 

      Business Cases:(G)

            CASES (G1)                                                                                      30%

Computer Simulation :(G2)                                                          30%

Class Participation, Quiz, Memo, & Exercises                       20%

Final Project & Paper (G3)                                                           20%

 

(G) => GROUP WORK:

 

1.        You will work in DIFFERENT groups for the CASES and the COMPUTER SIMULATION.

2.        Please choose your group members with care.  Groups once formed will not be changed. 

3.        It is YOUR responsibility to make sure that all group work is equitably distributed.  I will NOT arbitrate group conflict (except in case of academic misconduct). 

4.        Please remember, group members are (partially) responsible for grading their peers. 

 

ADMINISTRATIVE COMMENTS

 

1.       Please DO NOT arrive late and/or leave early during Case Presentations.  These entries and exits are distracting. If an early departure is absolutely necessary, please clear it with me at least one class period in advance. 

 

2.       You are expected to behave as professionals in everything from attire to speech.

 

3.       Constructive criticism is a necessary and integral part of this course.  You can expect to be constantly challenged, and, in turn, will be rewarded for challenging others.  However, all comments should be restricted to the issues of the case or game. 

 

4.       If you are NOT prepared to participate in the case day's discussion notify me PRIOR to the beginning of class to avoid any embarrassment.

 

5.       Please read your EMAIL periodically for relevant & critical information!

 

6.       Please have ready a *recognizable* passport size photograph of yourself.  This is to be affixed on the top right-hand side of a  3X5 card.  On this card your class participation points will be recorded (from the time at which you choose to turn it in)!

 

MONDAY

1.       The Marketing Game!

·         Decisions Due

2.       Lectures, Discussions, Exercises
 

WEDNESDAY

CASE Days:

·         PRESENTATIONS

·         REPORTS DUE

OR.

Lectures, Discussions, Exercises

·          
 
 

 

 

 



TENTATIVE Schedule (subject to change)

 

         DATE                   TOPIC                                                              ASSIGNMENT

 

1.       10/4                                                              Course Overview        READ: Winning is Everything (C-Ch1)

                      Introduction to TMG! Simulation       The Marketing Game! Chapters 1, 2, 3, 5 and Appendix A

 

 

2.       10/6         Marketing Overview                         READ: A New Product Strategy (C-Ch7);

                                                                                                            Power “Flops”; Melcher “Zima” (ER)                              

                                            

 

3.        10/11 INDIVIDUAL Case Analysis                     CASE:  Southwest Airlines (CP)

                            TMG First Round                            First Year Decisions due

 

4.       10/13       Market Entry Strategies                  READ: Yoffie, “Judo Strategy’ & “Balance” (ER)

 

 

5.        10/18           New Product Process  &                           READ: What Separates Winners from Losers (C-Ch2)

                            Marketing Strategies                                 Emshwiller “Coke's Soda Fountain Fizzles” (ER)

                                                                                                  Read: Brooke “Japanese Toilets”; (ER)

                            TMG First Round                            Second Year Decisions

 

 

6.         10/20          Pricing New Products                     Individual CASE: Cumberland Metal (CP);

                                                                                                  READ: Fatis “Barry Bonds Tax”; Klein “Lord of the flies” (ER)

                                                                                                  Rochford “Generating and Screening Ideas” (ER)

 

 

7.        10/25           Lifetime Value of Customer                      Read: Pine “Customers Forever”; &

                                                                                                  Morton “Unprofitable Customer (ER);

                            Install MKTG ENG Software                    Read: MktgEng Install & Introduction Guides (ER)

                  ***   TMG! SECOND ROUND                        First Year Decisions Due            ***

 

8.        10/27 Concept Testing & Evaluation                   Read: Loveman “Diamonds in Data Mine” (ER)

                     Introduction to L&R Software           Read: Introduction & Ch. 1 (L&R)

                                                                                                 

 

 

9.        11/1             Preference Analysis                                  EXERCISE: PDA/ConneCtor: pg. 27-30 (L&R)

                            & Benefit Segmentation                            Read: Ch. 1 (L&R)

                            TMG! SECOND ROUND                        Second Year Decisions Due

 

10.     11/3          Case #1                                         CASE: Optical Distortion (A) (CP)

                                                                                                  Read: Posner “Seeing Red” (ER)

                                                                                                  Star “The Case of the Test Market Toss-up” (ER)

 

 

11.      11/8 Product & Service Design I                                Read: Maremont, “Gillette MACH3”; “New Tootbrush” (ER)

                                                                                                  Terhune “Health Insurance Premium” (ER)

                                                                                                  Read: Ch. 4; Forte Hotel Design: pg.83-89 (L&R).

                            TMG! SECOND ROUND                        Third Year Decisions Due

 

12.     11/10           CASE #2                                                      CASE: Brita Products Company (CP);

                                                                                                  READ: Aaker “Positioning your product” (ER)

 

 

13.        11/15         Product & Service Design II                    Read: Balakrishnan “Evaluating Consumer Preferences..” (ER)

                                                                                                  Skim:Triangulation in DSS: … for Product Design (ER)

                                                                                                  Skim: Jain “Pricing patterns of Cell Phones” (ER)   

                            TMG! SECOND ROUND                  Fourth Year Decisions Due

 

14.        11/17         Pre-Test Marketing                           Skim: Brand Extensions; -Diluting Brand Beliefs;                                   Case #3  CASE: Nestle Refrigerated Foods (CP)

 

 

15.     11/22           Sales Forecasting                                       Skim: Mahajan “New Product Forecasting Models” (ER);

                                                                                                  Read: Estimating the Bass Model

                            TMG! SECOND ROUND                  Fifth Year Decisions Due  

                                                                                                  Last Period to Introduce Second Product

 

 

16.     11/24           Strategy Session/

                            Work on Project

 

 

17.     11/29           Case #4                                                        CASE: SONY Car Navigation System (CP)

                                                                                                  Read: Child “Tesco Global”; Mapes “Hyundai in India” (ER)

                            TMG! SECOND ROUND                  Sixth  Year Decisions Due  

       

18.     12/1             Managing the Brand &                             Read: Michaels “Airbus & Boeing for Iberia deal” (ER)

                            Hypercompetition                                      Read: Tauber “Brand Leverage Strategy:;

                                                                                                  McManus “No sacred cows” (ER Hypercompetition

 

 

19.   12/6         TMG PRESENTATIONS                  L.A. Memo Due

 

 

20.       12/8 Work on Project                                                                            

 

 

21.       12/13         Final Project Presentations                       Final Paper Due

 

IMPORTANT NOTES:

I.  TMG! DISKS/ File Attachment:

1.      It is your responsibility to make sure that the submitted decision file is current, with 606 bytes.

2.      It must be Virus free.

3.        You must place your decision file in the appropriate Network folder on HERMES

                              \\hermes\Classes\BUS543

      or email me as an attachment (if unable to connect to network in an emergency) with the correct name (e.g., PlanB3.TMG) by the end of class period it is due.

4.      The subject heading of the email should specify your TMG group and the decision period (eg., TMG-B3 Period 4).

 

II. DOCUMENTS; REPORTS:

1.      Only those who signed the document will receive a grade on that piece of work (you can assign a proxy to sign for you).

2.      All Reports turned in to me must be typed and signed by all members of the group.  It should be carefully edited.

a.      All reports that are submitted to the instructor must of be of the highest professional quality.

b.      Handwritten work and diagrams are not acceptable.  Text, Graphs, etc. must be laser printed and prepared using standard word-processing packages and spreadsheets.

c.      Points will be allocated for the quality of writing.

d.      Any work turned in must indicate (on the Title page) at a minimum the group number; names of the participating individuals, and their signatures.

 

III. Honor Code

Students are expected to abide by the Honor Code of the University of Washington.    In this course that specifically entails that you are NOT allowed to consult any past work done on the Harvard cases (whether from other students or from Internet sources) unless you have specific permission from the instructor. 

 

IV. TEAM RESPONSIBILITY FOR CASE ASSIGNMENTS:

 

TEAM RESPONSIBILITY FOR CASE ASSIGNMENTS:

              CASE ANALYSIS TEAMS                                                                         [E-LS]

                       1                   2                                                           

               Internal         Management         BOARD OF                                        Evaluation

CASE      Consultant       Team                  DIRECTORS                               STAKEHOLDERS

____________________________________________________________________________________

1-ODI             X1                 X2                             X3                                           [Y1, Y2]

____________________________________________________________________________________

2-Brita           Y1                 Y2                             Y3                                           [X1, X2]

____________________________________________________________________________________

3-Nestle         X3                 X1                             X2                                           [Y3]

____________________________________________________________________________________

4-Sony          Y3                 Y1                             Y2                                           [X3]

____________________________________________________________________________________

About the Instructor

P.V. (Sundar) Balakrishnan obtained his Ph.D. in Marketing from The Wharton School of the University of Pennsylvania.  He also has an undergraduate degree in Engineering from I.I.T., a Masters’ in Industrial Engineering from the University of Texas at Arlington, and another Masters’ degree in Marketing from The Wharton School.

He is one of the founding faculty of the Business Administration Program of the University of Washington, Bothell and served as the Acting Director of the Business Program for a period of two years.  He was previously on the Marketing faculty in the College of Business at The Ohio State University and was a visiting faculty of the Graduate School of Business at The University of Chicago.

The substantive areas of Prof. Balakrishnan’s research are directed toward studying New Product Management & Strategy; Buyer-Seller Negotiations in the area of Industrial Marketing, Relationship Marketing, and Retail Locational Decisions.  Sundar’s research interests from a methodological standpoint are in working with innovative Artificial Intelligence methodologies such as, Neural Networks and Genetic Algorithms and developing his own DSS software for addressing business problems. He is the developer of NEGOTIAT, a negotiation training simulator, and the co-developer of GENESYS and PRODLIN software for product designs.

His research papers have appeared in Management Science, Psychometrika, Journal of Consumer Research, Decision Support Systems, Journal of  Direct Marketing, IEEE Transactions on Man, Systems and Cybernetics, and the European Journal of Operational Research among others.  He has presented his research at numerous conferences nationally and internationally.  He also serves as a reviewer for many of the leading journals such as the Journal of Consumer Research, the Journal of Marketing and the Journal of Marketing Research and is on the editorial board of Psychology and Marketing. He is a member of the American Marketing Association, INFORMS, and International Association of Conflict Management. 

He is listed among the Top 300 most prolific management scholars in a 1997 INFORMS survey based on publications over a ten year period.  He has been listed in MARQUIS' Who's Who in the MidWest, 23rd, 24th editions; Who's Who in the West, 26th edition; and in the 2004 Who's Who in America, 58th edition.

Prof. Balakrishnan has taught a number of different courses including Advanced Marketing Strategy, Marketing Management, Marketing Research, Business Marketing, Project & Operations Management.  He has developed new and innovative courses including Marketing Management Laboratory and Artificial Intelligence and Marketing Decision Support Systems.

He has taught courses and students at all levels ranging from Undergraduates to Graduates.  He has also taught in various Executive Education programs in the United States, Europe, India, and Japan.  He has received outstanding teaching evaluations from students at all levels. His recognitions for teaching excellence include being recognized as the Business Instructor of the Year by the UWB Business students, Best MBA faculty, has been a two-time finalist for the University's Distinguished Teaching Award.