MKT 316 Intermediate Marketing Management
Spring 2012 (as of Feb 16)
Dr. Ted Mitchell (theodorem@unr.edu) (Phone 356-6234) Office #AB 310, Office hours are before and after class or by appointment.
Matt Ulinski matthew.ulinski@gmail.com Office hours TBA in AB320

Your full attention to the proceedings in the classroom is required.
Rules and standards of behavior for this classroom include:
1) Close all computers and Turn Off all cell phones. There is to be no texting in class.
Answering a cell phone is not an acceptable or valid reason for leaving the classroom.
2) There is to be no talking with your neighbor during the lectures.
3) Cheating of any kind is not tolerated. Only conventional calculators are allowed in the classroom.
4) Students are expected to attend all classes and attendance will be monitored.
5) Students who have a valid reason for leaving class early should sit near the door so their departure will cause a minimum of disruption.
6) Students are expected to bring the textbook to every class.
7) In all your e-mails please include your full name, course, industry and firm's i.d. (I have over 350 students this term and I don't want to miss anybody)

Only Marketing Majors are required to take this class.
It is NOT designed for non-business students, Management Majors, or IB majors. This course is designed for marketing majors.

Class Times and Room
Meet in room AB 635 from 1:00 to 2:15 Monday and Wednesday afternoons
1) A Page For Hints and Simulation Updates: Update Page
2) The web site for this class is NOT on WebCT or Web Campus
The Address for the class web site is http:// www.prospectlearning.com/316/index.html
If needed the Username is: Student and the Password is: MKT316
The above username and password are NOT used for getting onto the simulation game.
(Before starting the registration process, students should make sure their email account is working.)

Theme of the Class
Before you can control, manage or plan a marketing strategy you need to be able to evaluate the situation and analyze your current strengths, weaknesses, threats and opportunities. You can not create a good plan unless you've got good diagnoses of past performances.

If you can not measure it, then you can not manage it.

Important Dates for Spring 2012

Prerequisites:
The material in this course assumes all of the students have completed all the required marketing, economics, accounting, mathematics, calculus, and statistics courses in the pre-business core. The course includes problems that require the students to know and to use accounting, algebra, calculus, decision theory, and statistics. A major focus of this course is the mathematical analysis and evaluation of marketing situations. All students are expected to be comfortable using modern tools of analysis such as spreadsheets and calculators.
Course Objectives:
This course is designed to help marketing majors learn the concepts used in structuring and analyzing the marketing process and managing market relationships. The course has a focus on the situation analysis and auditing of the marketing plan. The course material will direct the student's attention towards the major issues in managing the marketing mix, competitive analysis, and the buyer-seller relationship. The objective of the course is to give students an opportunity to learn the managerial implications of various decision paradigms and models used in marketing management. Specific metrics must be learned and their roles in control and evaluation understood. For example, the following metrics are crucial: markup, breakeven, variances, relative change ratios, market share, measures of profitability, sales to expense ratios, customer retention rates, customer response functions, measures of customer satisfaction, efficiency ratios, product life cycles, measures of trends and correlations.
A major component of the learning in this course involves a marketing simulation game. Every student will have a firm of their own. The New Shoes Simulation is designed to help students apply the tools of analysis and evaluation learned in class to realistic management situations.

Remember: This webpage is NOT on Web CT or Web Campus
Always Check the Class Web Site at http://www.prospectlearning.com/316/index.html
for the most recent update of the course outline and news about the simulation.

Review problems and notes will be found on the Web. All students are expected to have a valid e-mail address and access to the World Wide Web to use the on-line resources.
There is a lot of math in this course. You will need your algebra, calculus, stats and accounting on every test.
Check out your basic math proficiency and take a sneak peek at typical final exam!
Sample algebra problems (Math Review questions)

Texts:
1) Principles of Marketing Management, Ted Mitchell, McGraw Hill 2012
2) Student Manual for the New Shoes Simulation Game

Grades
 A = 85 - 100  B+ = 77 - 79  C+ = 67 - 69  D+ = 57 - 59
 A- = 80 - 84  B = 74 - 76  C = 64 - 66  D = 54 - 56
 F = 0- 49  B- = 70 - 73  C- = 60 - 63  D- = 50 - 53

Grading:

Simulation Game  
Simulation Game #1(practice game) 5 points
Simulation Game #2 30 points
Simulation Game #3 45 points
Examinations and tests (All Multiple Choice Questions are Potentially Cumulative from exam to exam)  
Midterm #1 (This will include some questions about the basics of the simulation game.)
 25 points
Midterm #2 (This will include some questions about the basics of the simulation game.) jump down to second midterm 25 points
Midterm #3 jump down to third midterm 25 points
Midterm #4 Final Exam Week TBA 25 points
Participation exercises and in-class assignments (There are NO makeups for these assignments, They are designed to encourage attendance.) 20 points
Total Points for the course 200 points
All Midterms are closed book and no "cheat" sheets or aids of any kind are permitted into the room. No cell phones of any kind. Regular calculators only.
Makeup exams can be given to students if they have an excused absence. If a student has a valid reason for missing a midterm, then the student must write the make-up exam before the next Wednesday's class! The makeup exams may have more essay questions than the normal class exam. Students who wish to write a makeup exam must have a written permission slip (e-mail) from Prof. Mitchell and present the e-mail permission to the person doing the proctoring.

Getting Registered and Paying for the New Shoes Game
In order to register, the students will go to http://www.interpretive.com and click the "First-time student? Click here for a walk-through!" link. About halfway down the next screen is a link to go to the course code form page. Here there is a field to enter their Course Code.
The course code for MKT 316 is UNR10673

After entering the course code, the students will be given a form to fill out, which will then generate a student ID for them and allow them to login. Once they have logged in, they can then click the order tab to enter their access code if they have purchased one from the bookstore or pay us the registration fee directly. The cost for ordering the game directly from Interpretive is $30.

Note: Students should only enter the course code and fill out their information once. After using the Course Code once for the initial information, they should log in with the user ID and password they receive, NOT the Course Code. If they don't receive an email with their user ID and password after registering, they can contact us at support@interpretive.com

Week 1
REMEMBER the Simulation will start in week
Jan 23, 25
Introduction to Intermediate Marketing Management: The primary goal of marketing management is to maximize profits. Maximizing secondary goals such as sales volume, sales revenue, market share, return on advertising, etc. may not maximize the firm's profit. Every student must know the Marketing Concept, the classic alternative to the marketing concept and the Four P's of Marketing Management.
Readings:
1) Review Chapter 1 of Principles of Marketing Management
2) A review note on the basic questions involved with the marketing concept (notes)
3) Key terms and Concepts:
Is Value a ratio or difference?
Are Exchanges and Transactions the same thing?
Production orientation
Sales orientation
Marketing concept and customer-centric
Marketing mix
Big "M" marketing and little "m" marketing
Marketing metrics

Lecture Topics:
The Marketing Concept as a Philosophy of Competition (Slides)
Basic Pillars in the concept of Marketing Management (Slides)
The Four P's in small m Marketing Management (Slides)

Week 2 Jan 30
Readings:
Chapter 13: Part 1 Elements of the Simple Cost-based Performance Report Breakeven price (BEP), Return on Sales (ROS)
Chapter 13: Part 2 Basic Profit Equation,Types of Costs, Difference between Fixed and Variable Costs, Learning Curve,
Chapter 13: Part 3 Marketing Expenses and Marketing Overheads
Chapter 13: Part 4 Classic Rates and Ratios Markups and conversion
Key Terms in Chapter 13 (slides)

Lecture Topics:
1) Profit Equation and the Operating Statement (Slides)
2) Price and Types of Costs (Slides)
3) Operating Expenses, Marketing Overheads, Marketing Expenses, Marketing Effort to Sales, (ME/R),Confusion about Costs (Slides)


Feb 1
Students must have registered and paid for the New Shoes Simulation Game by10:00 am on Thursday, Feb 2

Week 3 Feb 6
Decision 1 of the Practice Game (Game 1)
Readings:
Chapter 13: Part 4 continued BEQ, BER, BEMp
Chapter 13: Part 5 Classic Ratios of profitability
Chapter 13: Part 6 Detailing Expenses and Cost Based Ratios of efficiency and effectiveness
Chapter 13: Part 7 Marketing Assets and Ratios from the Balance Sheet, Inventory, ROA,
Chapter 13: Part 8 Marketing Assets not on the Balance Sheet, Market Share, Product Quality, Customer Satisfaction, Customer Retention
Chapter 2: Value as a Ratio, SBU/Portfolio Anaysis, Situation Analysis

Lecture Topics:
1) What we hope to learn in the New Shoes Simulation (slides)
2) Connecting BCG to SWOT in the situation analysis for playing the simulation (Slides)
3) Ratios as Measures of Efficiency and Effectiveness: Return on Sales, Expenses (GROS, MROS, ROS, ROME,) (Slides)
4) Calculating Average Rates and Ratios is Not straight forward (Slides)

Feb 8, Decision 2 of the Practice Game (Game 1)

The Simulation is reset to start Game 2 on Feb 13. All the results of Game 1 are lost. You may start making decisions for game 2 as soon as the game is reset. You do NOT have to wait until Wednesday to make a decision. Readthe descriptions of the Three Markets in the New Shoes. The descriptions provide a number of hints.
Don't Forget to check the Simulation News and Update Page for Hints.

Week 4 Feb 13
Readings:
1) Chapter 3 in the Principles of Marketing Management. Product Life Cycle
2) New Shoes Manual
Lecture Topics:
1) Product Life Cycle (Slides)
2) Review the Starting Conditions of Game 2, PLC in New Shoes (Slides)
3 ) Markup the most Important Ratio (Slides)

Feb 15 Decision 1 of Game 2 must be made by midnight

Week 5 Feb 20 *****President's Day ***********

Feb 22 ++++ Midterm #1+++++
Test covers Chapters 1, 2, 3 and 13
New Sample exam questions chapter 1 (Ch1)
New Sample exam questions Chapter 2 (Ch2)
New Sample exam questions Chapter 3 (Ch3)
New Key metrics to review and sample income questions from chapter 13 (ch13)
Make sure that you study the end of Chapter 13 for sample questions
Decision 2 of Game 2 must be made by midnight

Week 6 Feb 27
The key focus for this week is Breakeven and Cross-over analysis which leads into margin maintenance and indifference-point bidding
Readings:
Chapter 5: Breakeven pages 118-120
Chapter 14: Breakeven and Cross-Over Analysis, in Marketing Management and Revenue Accounting
Lecture Topics:
1) Breaking Even and Cross-Over Analysis (Breakeven Price, Breakeven Revenue, Breakeven Quantity, Breakeven Markup)
2) Target Profit, A Generalized Form of Breakeven (Slides)

Feb 29. Decision 3 of Game 2 must be made by midnight

Week 7 March 5
Readings:
Finish Chapter 14: Breakeven and Cross-Over Analysis, in Marketing Management and Revenue Accounting
Lecture Topics:
1) Cross-over point (Example Using Manufacturer's Reps and Own Sales Force) (Slides)
2) Maintaining The Gross Profit, Almost a Law (Slides)
3) Margin Maintenance: Identifying the quantity needed to maintain the gross profit margin ( Slides)
4) The Learning Curve (Slides)
6) Bidding (Slides)

March 7 ******* Midterm #2 *******
This midterm covers Chapters 13, and 14
Decision 4 of Game 2 must be made by midnight

Week 8 March 12
Readings:
Review Chapter 5: Pricing (Five C's of Pricing)
Chapter 15: Cost Based Pricing and Promotion
Lecture Topics
1) Reviewing the 3 Approaches to Pricing: 1) Cost based 2) Competitive based 3) Customer based.
2) Cost Based Pricing (Slides)
3) Setting price based on target profits defined as desired Markups (Mp for retailers) and net profit margins (ROS for manufacturers) (Slides)
4) Is Cost Based Pricing fair? (Slides)
5) Setting Advertising Budgets Based on Costs and Sales to Advertising Rate (Slides)

March 14
Decision 5 of Game 2 must be made by midnight
Remember the game is advanced two more periods using Decision 5 as the default decision.

Week 9 March 19- 21 ****** Spring Break ********

The Simulation is reset to start Game 3 on March 26. All the results of Game 2 are lost. You may start making decisions for game 3 as soon as the game is reset. Be sure to review the descriptions of the Three Markets in the New Shoes. The descriptions provide a number of hints.
Don't Forget to check the Simulation News and Update Page for Hints.

Week 10 March 26
Decision 1 of Game 3 must be made by midnight
Readings:
1) Chapter 2; revisit the portfolio model's of BCG and GE
2) Chapter 16: Relative Competitive Position and Relative Strengths and Weaknesses
3) Review 31 questions on relative market share and competitive position (note)
Lecture Topics:
1) Market Share Definition and Three Basic Approaches to Analysis of Market Share (Slides)
2) Market Share Theorem and Share of Total Voice Prediction (slides)
3) Relative Market Share Theorem (Slides)

March 28
Decision 2 of Game 3 must be made by midnight

Week 11 April 2
Decision 3 of Game 3 must be made by midnight
Lecture Topics:
1) The Expectancy value model and its use for predicting market share and setting relative price (Slides)
Review for Midterm 3

April 4 ******* Midterm #3 *********
This Midterm covers Chapters 13, 14, 15, and 16
Review of Mini-Case For Exam 3 (slides)
Review of Markup For Exam 3 (slides)

Decision 4 of Game 3 must be made by midnight

Week12 April 9
Decision 5 of Game 3 must be made by midnight
Readings:
Chapter 17: Introduction to Incremental Rates of Change Impact Analysis
Lecture Topics:
1) Difference between Average Rates and Incremental Rates (slides)
2) Introduction to Impact Analysis with example of Change in working harder and smarter, change in dollar markup and marketing effort, change in market share (slides)
3) Review of basic Impact Analysis using the Impact of Changing Market Share and Market Size on Changes in Quantity sold,(slides)
4) Missing the Bonus for Salesforce Retention: a simple impact analysis (Slides)
5) Reviewing the ROME Metric using problem in IMC chapter page 244-245 (slides)

April 11 Decision 6 of Game 3 must be made by midnight

Week 13 April 16
Decision 7 of Game 3 must be made by midnight
The goal of this segment is the Role of Optimization and to explore the nature of elasticity as a measure of sensitivity and as a benchmark for finding the optimal levels of the 4Ps.
Readings:
Chapter 18: Firm's performance from a customer's point of view
Lecture Topics:
1) Customer Satisfaction, Retention, and Market Share (Slides)
2) Satisfied Customer Chain (Slides)

April 18 Decision 8 of Game 3 must be made by midnight

Week 14 April 23
Decision 9 of Game 3 must be made by midnight
Readings:
Chapter 19: Optimization of Price and Marketing Effort
Lecture Topics:
1) Customer Demand and Setting Selling Prices to Maximize Revenue (Slides)
2) Estimating Domestic Demand and Price Response (Slides)
3) Customer Demand and Setting Prices to Maximize Profit (Slides)
4) Finding the Optimal Advertising Expense for Maximizing Profit, (Slides)


April 25 Decision 10 of Game 3 must be made by midnight

Week 15 April 30
Decision 11 of Game 3 must be made by midnight. Remember the game is advanced two more periods and decision #11 is used as the default.
Readings:
Chapter 20: Elasticity of Price, Markup and Marketing Effort
Lecture Topics:
1) Review of three question on finding optimal prices and optimal advertising (slides)
2) Introduction to Elasticity (Slides)
3) Elasticity of Advertising (Slides)
4) Using Impact Analysis for Arc Elasticity of Price (slides)
5) Elasticity of the Return on Marketing Expense, ROME (Slides)
6) Elasticity of the Return on Markup or Gross Return on Sales (Slides)
7) Elasticity of Learning Curve (Slides)

May 2

Week 16 May 7
Review Chapters 17, 18, 19, 20
Review of 4 Impact Problems for Exam 3 (slides)
3) Review The Customer Readiness or Response Chain for Market Share (slides)

May9 ****** Prep Day ***********

Week 17 ******* Final Midterm #4 ******
The focus for this final midterm are chapters 17, 18, 19 and 20 with particular attention to the questions at the end of each chapter.
As always, questions that 25% or more of students got wrong on the last midterm will be on this final midterm. That is to say, questions on Markup in Channels, Markup Pricing, Breakeven Analysis, Impact Analysis, and Relative Marketing Effort will be on this exam again.