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ENTREPRENEURIAL MARKETING ENTP 6380/M KT 6380 F ALL 2006 Class Meeting Thursday 7:00 – 9:45

ENTREPRENEURIAL MARKETING

ENTP 6380/MKT 6380

FALL 2006

Class Meeting Thursday 7:00 – 9:45 PM, SOM 2.903

Dr. Joseph C. Picken SOM 4.212 Email: jpicken@utdallas.edu Phone (UTD office): (972) 883-4986 Phone (McKinney office): (972) 562-5401

Office Hours:

Mon/Wed 3:00 – 4:30 PM Or by appointment

COURSE OBJECTIVES:

This course is about the choices and challenges of entrepreneurial marketing. A variety of cases have been selected to demonstrate that the principles and practices involved are broadly applicable across multiple industry contexts.

Firms in established and stable industries are faced with a limited set of choices – in all likelihood, the competitive landscape is reasonably well defined, market segments are known, distribution channels have been established, and the firm’s competitive strengths and limitations are understood. Technology (will it work?) and market (will they buy?) risks are minimized; competitive actions and the firm’s ability to execute are the principal areas of uncertainty. Marketing options are partially constrained by established industry structure and prior choices.

Entrepreneurs competing in rapidly evolving competitive environments, or established firms introducing new products or services into unfamiliar or emerging markets, often face multiple unknowns (technology, market, competitive and execution risks). Entrenched competitors will jealously defend their turf; multiple new entrants will aggressively compete to establish next-generation technologies. Market definitions and customer requirements are often in a state of flux and customer confusion is high. The emerging industry may lack established technical standards, distribution channels and pricing models. Most entrepreneurial challengers will lack brand identity and name recognition, and may face severe resource constraints. Although classic marketing principles (product, positioning, pricing, promotion) still apply, the context is very different and the target is always moving.

The good news is that there are relatively few constraints on marketing choices and strategies; the bad news is that each choice is critical and each in turn constrains future options and flexibility. Often, the innovator or entrepreneur is faced with a “David and Goliath” challenge where the resources and legitimacy of incumbent(s) and established business models create substantial barriers for a challenger firm with limited resources and capabilities. This course will examine these strategic choices utilizing readings, case studies and a semester project with an early stage entrepreneurial firm.

LEARNING OBJECTIVES

Upon successful completion of this course, students will:

Understand the choices and challenges that differentiate entrepreneurial marketing from conventional marketing, with particular emphasis on market entry strategies for technology-based entrepreneurial ventures.

Develop an understanding of the concepts, tools and theoretical frameworks used to analyze and interpret the competitive situations faced by entrepreneurial firms and develop marketing plans and strategies to achieve successful market entry.

Demonstrate the ability to apply the concepts, tools and frameworks presented in the readings and lectures to the analysis, interpretation and prioritization of entrepreneurial marketing issues presented in case studies.

Demonstrate the ability to develop and communicate appropriate recommendations for action with respect to the entrepreneurial marketing issues and challenges presented in case studies.

REQUIRED COURSE MATERIALS:

Davidow, W.H. 1986. Marketing High Technology: An Insider’s View. ISBN 0-02-907990-X

Moore, G.H. 1995. Inside the Tornado: Marketing Strategies from Silicon Valley’s Cutting Edge. ISBN 0-88730-824-4

Chaston, I. 2000. Entrepreneurial Marketing. ISBN 0-333-79299-8 Electronic Readings: Download eJournals as required from the UTD McDermott Library Website (see ASSIGNMENTS below)

ENTP/MKT 6380 Entrepreneurial Marketing Dr. Joseph C. Picken Revised: August 16, 2006 Printed: September 12, 2006

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Cases: Course pack available at book store.

ENTREPRENEURIAL MARKETING

The books and cases are available at the UTD Bookstore or at Off Campus Books on Campbell Road. The electronic readings (Harvard Business School and other journal articles) are available for download at no charge on the UTD McDermott Library website (http://www.utdallas.edu/library/collections/journals.htm)

SELF INTRODUCTION

Each student should post a Self-Introduction in the Discussion area of WebCT prior to the first class. Guidelines are provided on the WebCT Discussion page. This information will assist in the formation of groups for the course.

FORMATION OF GROUPS

Much of the work in this course will be performed in groups. Students should form small groups (3 members) during the first two weeks of the course. It is important that you select your groups to include a diverse set of skills and make sure that at least one member is proficient in accounting and spreadsheet analysis. A list of the members of each group (with name, email and telephone contact information) should be turned into the instructor at the beginning of class on August 31 st .

LECTURE NOTES The MS Powerpoint slides used in lectures and case discussions and other course-related materials will be posted on WebCT (http://webct.utdallas.edu) under course ID ENTP 6380. You should be able to access WebCT with your UTD Unix ID and password. Call computer services at (972) 883-2911 if you need assistance.

COURSE REQUIREMENTS & GRADING:

The list of assigned readings and cases is attached. Discussion questions are provided for each of the cases. Supplemental materials may be provided or posted electronically. Advance preparation and enthusiastic participation in class discussions is an important part of the learning experience in this course and will be evaluated.

The course has been designed to allow flexible management of your time. There will be no quizzes or exams. Your grade will be based on group and individual written assignments and your contributions to class discussions. These assignments, their due dates and page limits, and their relative weights in determining your final grade are summarized in the table below:

 

Length

 

Case

Due Date

Type

(pages)

Weight

WA-1.

XM Satellite Radio (A)

Aug 31, 2006

Individual (outline form)

4-5

10%

WA-2. net.Genesis, Inc.

Sept 14, 2006

Group (outline form)

4-5

10%

WA-3. Proposal: New Venture Marketing Plan

Sept 21, 2006

Group (outline form)

3-4

0%

WA-4. Warner-Lambert Ireland: Niconol

Oct 4, 2006

Group (outline form)

4-5

10%

WA-5. Mathsoft, Inc, (A)

Oct 19, 2006

Group (outline form)

4-5

10%

WA-6. Lenovo: Countering the Dell Challenge

Nov 9, 2006

Individual (outline form)

4-5

10%

WA-7. Wild Card Presentation (sessions 07, 09, 11, 12, 14)

As assigned

Group (outline form) + Powerpoint Presentation

4-5

15%

WA-8. Group Project: New Venture Marketing Plan

Nov 28, 2006

Group (essay form) +

NTE 20

25%

Nov 30, 2006

Powerpoint Presentation

20 mins

 

Class Participation

 

Individual

 

10%

 

Overall Course Grade

100%

Wild Card Presentation. Each group will be assigned one “wild card” presentation (see course outline). The group will prepare an outline form paper for the assigned case and lead the class discussion with a 25-30 minute Powerpoint presentation of their analysis of the case.

ENTP/MKT 6380 Entrepreneurial Marketing Dr. Joseph C. Picken Revised: August 16, 2006 Printed: September 12, 2006

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Peer Evaluation. A peer evaluation process will be utilized to adjust individual grades on all group assignments. The peer evaluation form (attached) should be completed individually, sealed in an envelope and turned in with the final written assignment on November 30 th .

Class Participation. Ten percent (10%) of your grade will be based on the quality of your preparation and active participation in class discussions and exercises. From time to time, it may be necessary to miss a class due to illness or personal business. Please let me know in advance. Keep in mind that written assignments must be emailed by the due date, regardless. If participation becomes an issue, your grade will be impacted.

NEW VENTURE MARKETING PLAN (WA-8)

A major group project for this course will focus on market research and the development of a new venture marketing

plan for an actual startup company. Guidelines and company profiles are posted in a special “Marketing Plan” section of WebCT. Each group should:

Select an actual startup company to work with on or before August 31 st . Several pre-screened company profiles are posted on WebCT. You may choose one of these (first come, first served), or may propose a startup company of your own choosing (subject to approval). Criteria for new proposals should be: (a) an actual startup company of interest to your group; (b) a new product/service idea not currently established in the marketplace; (c) of sufficient rigor and complexity to present an appropriate challenge for the group. Meet with the company at least once (two or more meetings are recommended) during the first three weeks in September to familiarize yourself with the company and its product/service, define its marketing support needs and negotiate a Statement of Work and set of deliverables for your project. Development of a New Venture Marketing Plan proposal (WA-3 due September 21, 2006) that presents the agreed statement of work and deliverables for instructor approval. Guidelines for the proposal are posted on WebCT. Work closely with the company throughout the semester to accomplish the Statement of Work and develop your New Venture Marketing Plan. Submit bi-weekly progress reports (email) to the company with a copy to the instructor detailing the work accomplished, highlighting key findings and identifying issues and roadblocks that require resolution. Prepare and submit a complete and comprehensive New Venture Marketing Plan (suggested content outline posted on WebCT). The New Venture Marketing Plan will be submitted to the company and the instructor as WA-8 no later than 5:00 pm on November 28, 2006. Prepare and present a 20 minute presentation of the New Venture Marketing Plan to the company and the instructor on November 30, 2006. This will be a formal presentation and will be graded; use of MS Powerpoint is recommended. Evaluation criteria for the New Venture Marketing Plan are posted on WebCT.

These requirements will be further detailed and discussed in class during the first two weeks of the course.

GUIDELINES FOR WRITTEN ASSIGNMENTS

Due Dates. Written assignments will be due at the beginning of class on the date assigned (and can be emailed to me

if you are unable to attend the class). Late papers turned in at or before the next class session following the due date

will be graded, but 10 points will be deducted from the grade. Late papers turned in at or before the second class session following the due date will be graded, but 15 points will be deducted from the grade. Late papers not received by the beginning of the second class session following the due date will receive a zero. Consideration may

be given for extenuating circumstances with prior notification.

Format. Your name (or the group identification and names of all group members) the course number and the date should appear in a header at the beginning of each page of the document. The body of each written assignment should comply with the page length guidelines specified for the assignment. The use of charts and exhibits is encouraged, to the extent that they help you make your points. Charts and exhibits should be numbered and appropriately referenced in the document. A list of references should be attached as required. Cover pages, charts or exhibits, and lists of references are not included in the page count. The manuscript should use 11-12 point type, double-spaced, with 1” margins all around. Appropriate titles and section headings should be used. Number the pages and staple in the upper left corner. Binders and report covers are neither necessary or desired.

Outline Form Response. Most of the assignments specify an outline form response. I will expect a statement of the question followed by a bulleted or numbered list of the key items in your response.

ENTP/MKT 6380 Entrepreneurial Marketing Dr. Joseph C. Picken Revised: August 16, 2006 Printed: September 12, 2006

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Essay Form Response. Other assignments specify an essay form response. I will expect a well organized paper that addresses the case questions and uses section headings, bulleted lists, charts and exhibits as appropriate to clearly communicate your message.

Electronic Submissions. If you submit a paper by email, the file name should identify the course, assignment number and your name or group ID. For example, “ENTP 6380_2_JSmith.doc” would identify John Smith’s written assignment 2.

Effective written and oral communications are critically important in the business world. It is equally important that students "put their best foot forward" in classroom presentations and written assignments. Poor organization, convoluted sentence structures, mangled grammar and misspelled words have no place in effective communications, and will be considered in the evaluation of your work and ideas.

CASE ANALYSIS GUIDELINES

Written assignments and exams will often require the analysis of case situations. In addition, preparation for class discussions will frequently require the analysis of a case situation. Case analysis assignments are designed to evaluate and develop your skills in:

identifying key organizational issues (decisions or actions required in a given situation).

analyzing the situation (identifying

problems; understanding the underlying causal factors; and identifying and

evaluating options)

recommending specific actions (what should be done, by whom, when and in what sequence) to address the key issues.

I have provided specific questions for each case to focus your analysis. In general, there are no “right” or “wrong” answers for a specific case – different approaches and insights are possible, depending on your individual perspective and approach. Regardless of your approach and conclusions, I expect you to make recommendations that: (1) address the identified issues; (2) follow logically from your analysis and conclusions; and (3) make sense (are feasible) in the context of the case situation.

UNIVERSITY POLICIES

Off-campus Instruction and Course Activities. Off-campus, out-of-state, and foreign instruction and activities are subject to state law and University policies and procedures regarding travel and risk-related activities. Information regarding these rules and regulations may be found at the website address http://www.utdallas.edu/BusinessAffairs/Travel_Risk_Activities.htm. Additional information is available from the office of the school dean. Below is a description of any travel and/or risk-related activity associated with this course.

Student Conduct & Discipline. The University of Texas System and The University of Texas at Dallas have rules and regulations for the orderly and efficient conduct of their business. It is the responsibility of each student and each student organization to be knowledgeable about the rules and regulations which govern student conduct and activities. General information on student conduct and discipline is contained in the UTD publication, A to Z Guide, which is provided to all registered students each academic year.

The University of Texas at Dallas administers student discipline within the procedures of recognized and established due process. Procedures are defined and described in the Rules and Regulations, Board of Regents, The University of Texas System, Part 1, Chapter VI, Section 3, and in Title V, Rules on Student Services and Activities of the university’s Handbook of Operating Procedures. Copies of these rules and regulations are available to students in the Office of the Dean of Students, where staff members are available to assist students in interpreting the rules and regulations (SU 1.602, 972/883-6391).

A student at the university neither loses the rights nor escapes the responsibilities of citizenship. He or she is expected to obey federal, state, and local laws as well as the Regents’ Rules, university regulations, and administrative rules. Students are subject to discipline for violating the standards of conduct whether such conduct takes place on or off campus, or whether civil or criminal penalties are also imposed for such conduct.

Academic Integrity. The faculty expects from its students a high level of responsibility and academic honesty. Because the value of an academic degree depends upon the absolute integrity of the work done by the student for that degree, it is imperative that a student demonstrate a high standard of individual honor in his or her scholastic work.

ENTP/MKT 6380 Entrepreneurial Marketing Dr. Joseph C. Picken Revised: August 16, 2006 Printed: September 12, 2006

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ENTREPRENEURIAL MARKETING

Scholastic dishonesty includes, but is not limited to, statements, acts or omissions related to applications for enrollment or the award of a degree, and/or the submission as one’s own work or material that is not one’s own. As a general rule, scholastic dishonesty involves one of the following acts: cheating, plagiarism, collusion and/or falsifying academic records. Students suspected of academic dishonesty are subject to disciplinary proceedings.

Plagiarism, especially from the web, from portions of papers for other classes, and from any other source is unacceptable and will be dealt with under the university’s policy on plagiarism (see general catalog for details). This course will use the resources of turnitin.com, which searches the web for possible plagiarism and is over 90% effective.

Email Use. The University of Texas at Dallas recognizes the value and efficiency of communication between faculty/staff and students through electronic mail. At the same time, email raises some issues concerning security and the identity of each individual in an email exchange. The university encourages all official student email correspondence be sent only to a student’s U.T. Dallas email address and that faculty and staff consider email from students official only if it originates from a UTD student account. This allows the university to maintain a high degree of confidence in the identity of all individual corresponding and the security of the transmitted information. UTD furnishes each student with a free email account that is to be used in all communication with university personnel. The Department of Information Resources at U.T. Dallas provides a method for students to have their U.T. Dallas mail forwarded to other accounts.

Withdrawal from Class. The administration of this institution has set deadlines for withdrawal of any college-level courses. These dates and times are published in that semester's course catalog. Administration procedures must be followed. It is the student's responsibility to handle withdrawal requirements from any class. In other words, I cannot drop or withdraw any student. You must do the proper paperwork to ensure that you will not receive a final grade of "F" in a course if you choose not to attend the class once you are enrolled.

Student Grievance Procedures. Procedures for student grievances are found in Title V, Rules on Student Services and Activities, of the university’s Handbook of Operating Procedures.

In attempting to resolve any student grievance regarding grades, evaluations, or other fulfillments of academic responsibility, it is the obligation of the student first to make a serious effort to resolve the matter with the instructor, supervisor, administrator, or committee with whom the grievance originates (hereafter called “the respondent”). Individual faculty members retain primary responsibility for assigning grades and evaluations. If the matter cannot be resolved at that level, the grievance must be submitted in writing to the respondent with a copy of the respondent’s School Dean. If the matter is not resolved by the written response provided by the respondent, the student may submit a written appeal to the School Dean. If the grievance is not resolved by the School Dean’s decision, the student may make a written appeal to the Dean of Graduate or Undergraduate Education, and the deal will appoint and convene an Academic Appeals Panel. The decision of the Academic Appeals Panel is final. The results of the academic appeals process will be distributed to all involved parties.

Copies of these rules and regulations are available to students in the Office of the Dean of Students, where staff members are available to assist students in interpreting the rules and regulations.

Incomplete Grade Policy. As per university policy, incomplete grades will be granted only for work unavoidably missed at the semester’s end and only if 70% of the course work has been completed. An incomplete grade must be resolved within eight (8) weeks from the first day of the subsequent long semester. If the required work to complete the course and to remove the incomplete grade is not submitted by the specified deadline, the incomplete grade is changed automatically to a grade of F.

Disability Services. The goal of Disability Services is to provide students with disabilities educational opportunities equal to those of their non-disabled peers. Disability Services is located in room 1.610 in the Student Union. Office hours are Monday and Thursday, 8:30 a.m. to 6:30 p.m.; Tuesday and Wednesday, 8:30 a.m. to 7:30 p.m.; and Friday, 8:30 a.m. to 5:30 p.m.

The contact information for the Office of Disability Services is:

The University of Texas at Dallas, SU 22 PO Box 830688 Richardson, Texas 75083-0688 (972) 883-2098 (voice or TTY)

Essentially, the law requires that colleges and universities make those reasonable adjustments necessary to eliminate discrimination on the basis of disability. For example, it may be necessary to remove classroom prohibitions against

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ENTP/MKT 6380 Entrepreneurial Marketing Dr. Joseph C. Picken Revised: August 16, 2006 Printed: September 12, 2006

ENTREPRENEURIAL MARKETING

tape recorders or animals (in the case of dog guides) for students who are blind. Occasionally an assignment requirement may be substituted (for example, a research paper versus an oral presentation for a student who is hearing impaired). Classes enrolled students with mobility impairments may have to be rescheduled in accessible facilities. The college or university may need to provide special services such as registration, note-taking, or mobility assistance.

It is the student’s responsibility to notify his or her professors of the need for such an accommodation. Disability Services provides students with letters to present to faculty members to verify that the student has a disability and needs accommodations. Individuals requiring special accommodation should contact the professor after class or during office hours.

Religious Holy Days. The University of Texas at Dallas will excuse a student from class or other required activities for the travel to and observance of a religious holy day for a religion whose places of worship are exempt from property tax under Section 11.20, Tax Code, Texas Code Annotated.

The student is encouraged to notify the instructor or activity sponsor as soon as possible regarding the absence, preferably in advance of the assignment. The student, so excused, will be allowed to take the exam or complete the assignment within a reasonable time after the absence: a period equal to the length of the absence, up to a maximum of one week. A student who notifies the instructor and completes any missed exam or assignment may not be penalized for the absence. A student who fails to complete the exam or assignment within the prescribed period may receive a failing grade for that exam or assignment.

If a student or an instructor disagrees about the nature of the absence [i.e., for the purpose of observing a religious holy day] or if there is similar disagreement about whether the student has been given a reasonable time to complete any missed assignments or examinations, either the student or the instructor may request a ruling from the chief executive officer of the institution, or his or her designee. The chief executive officer or designee must take into account the legislative intent of TEC 51.911(b), and the student and instructor will abide by the decision of the chief executive officer or designee.

DISCUSSION QUESTIONS FOR CASE ANALYSIS

The following discussion questions are provided to help you complete a structured analysis focusing on the key issues in each case. It is important, in written assignments, to address each of these points.

Case: XM Satellite Radio (A) (HBS 9-504-009)

1. Following Chaston, identify the industry conventions (sectoral, performance, customer, critical success factors) and conventional marketing strategies that characterized the broadcast radio industry in 1997.

2. Without considering the strategies of the individual competitors (SIRIUS and XM), how did the concept of satellite radio challenge these conventions? How should these competitors incorporate the lessons of the Technology Adoption Life Cycle (Moore) into their strategies?

3. Evaluate SIRIUS’ strategy and business model utilizing the concepts and frameworks provided by Kim & Mauborgne (specifically their “four questions”). Is Sirius’ strategy entrepreneurial? How does it challenge the established industry conventions (see Chaston Fig. 3.3)?

4. How does XM’s approach challenge the established industry conventions? How does XM plan to differentiate its offering from that of SIRIUS (consider the Buyer Experience Cycle in your analysis)?

5. What are the key marketing and positioning choices faced by XM? How might Moon’s ideas be put to use here? What do you recommend?

Case: Ikea Invades America (HBS 9-504-094)

1. What are the elements of the “whole product” offered by IKEA. (see lecture slides S02, slides 34-37; Davidow 25-34)

2. What are the key elements of IKEA’s positioning in the North American market? (as a starting point, consider the competitive positioning attributes described in S04, Slides 20-21).

3. Has IKEA targeted a particular market segment? What are the characteristics of that segment (compare to the description of “furniture retailing in the United States).

4. Does IKEA’s positioning reflect the criteria for an appropriate segmentation as described by Yankelovich & Meer (126- 129) and summarized in S04, Slide 11?

5. How did differences in market conditions influence IKEA’s positioning as they expanded in the US market?

6. Write a “competitive claim” for IKEA, following Moore’s format (S04, Slide 23)

ENTP/MKT 6380 Entrepreneurial Marketing Dr. Joseph C. Picken Revised: August 16, 2006 Printed: September 12, 2006

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Case: net.Genesis.Inc. (HBS 9-500-009)

ENTREPRENEURIAL MARKETING

1. Where would you place net.Genesis on the Technology Adoption Life Cycle? Are they ready to cross the chasm or are they in it? Justify your response in terms of the kinds of customers they are currently targeting, and the needs and requirements of the principal users.

2. Does net.Genesis offer a “whole product” at the present time? Is it entrepreneurial with respect to product form and function (Chaston)? What are the key elements? What needs to be added to meet the needs of the mainstream customer? How does the alliance strategy complement and extend the whole product concept?

3. Some of the customer comments reflect a need for more “hands on” customer interaction to use net.Genesis’ products, as compared to their competition. Is this a plus? What would you recommend?

4. Should net.Genesis narrow its marketing focus to one or a few segments (see Exhibit 2 and consider various vertical market options)? What are the risks and potential benefits? What segments should they pursue? What should the selection criteria

be? Is there a logical bowling alley strategy that you can recommend?

5. Create a positioning statement for net.Genesis (following Moore’s framework – S05 – slide 34). Analyze the company’s position relative to its two principal competitors in terms of points of parity, points of difference and points of contention. Prepare a value proposition for net.Genesis following the “resonating focus” model.

Case: Amazon.com – 2002 (HBS 9-803-098)

1. Consider Amazon’s retail model. Who is the target customer? Are they delivering a product or a service, or both? Has the

mix of product/service delivery changed over time?

2. Consider Amazon’s retail model in the context of the buyer experience cycle and the utility levers described by Kim & Mauborgne. How does Amazon create value vs. the conventional channel?

3. Consider the implicit value proposition of the retail model. What is the next best alternative? What are the key points of parity, of differentiation, of contention? Identify the favorable points of difference. Write a resonating focus value proposition for Amazon that would address the issues of greatest importance to a typical MBA student.

4. Does Amazon’s Marketplace Model represent a significant change in strategy or merely an augmentation of the Retail Model? Does it address a different set of customers? What is the next best alternative? What are the key points of differentiation? What challenges did it raise for Amazon’s management team?

5. Consider Amazon’s evolution from the Retail to the Marketplace to the Single Store model in the context of Hamel’s article. Is Amazon a management innovator? Explain and justify your conclusion in terms of Hamel’s framework and criteria.

Case: Dell Online (HBS 9-598-116)

1. Dell’s direct distribution model accounts for about 20% of US sales, with the remainder being sold through various non- direct channels (see Table B). Consider the unique needs and requirements (the “whole product”) for each of the four major target customers for PCs: large corporations, governments, SME’s and consumers (home computing). Develop a table that compares and contrasts the needs of these markets and the relative advantages and disadvantages of each of the four distribution channel alternatives in addressing these needs.

2. How does the direct model challenge industry conventions (consider sales channel, distribution channel and aftermarket support channel)? How does the model challenge customer purchase conventions?

3. Given the apparent cost advantages of the direct model, why haven’t the other major players (Compaq, Packard-Bell, IBM, HP and Gateway) embraced this channel? Why have those who have tried (Compaq and Gateway) struggled with implementation?

4. Does direct distribution over the Internet represent a fifth distribution channel alternative? It appears that Dell has made the move with relative ease. How did Dell address the “whole product” needs of the various market segments in their online offering? Why have the other major competitors struggled in their attempts to emulate Dell’s online channel success?

Case: Warner-Lambert Ireland: Niconol (HBS 9-593-008)

1.

The

decision to include 14 Niconol patches in each consumer package has been made – but as a compromise with marketers

in Western Europe. Does this decision make sense for the initial launch in Ireland? What are the pros and cons of that decision?

2.

Davidow would consider the Niconol patch a “device”. What other elements are required to deliver the “complete product”?

Can

the delivery of the complete product be controlled by Warner-Lambert Ireland (WLI)? What issues are raised? Who

else

is involved? Are the incentives of the other parties aligned with those of WLI?

3.

How important do you think the support package is to the ultimate success of Niconol? How would you price and deliver

that

package? What opportunities or constraints are created by the separate delivery and pricing of the support package?

4.

Pricing appears to be a major issue. How would you price Niconol (consider consumer expectations, cost and margin goals, various competitive benchmarks, value in use, and other factors in your analysis)?

5.

Recommend an initial launch strategy for Niconol in a 14 unit package, addressing the essential elements of the complete product, pricing and delivery strategies, and communications and promotional strategies. Justify your recommendation as

ENTP/MKT 6380 Entrepreneurial Marketing Dr. Joseph C. Picken Revised: August 16, 2006 Printed: September 12, 2006

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compared to alternative approaches.

Case: Documentum, Inc. (HBS 9-502-026)

ENTREPRENEURIAL MARKETING

1. Where would you place Documentum, Inc. along the Technology Adoption Life Cycle? Do they currently have a complete product? If not, what is missing?

2. From the company’s perspective, what are the pros and cons of a horizontal market strategy? Of a vertical market strategy?

3. If the company decides to pursue a vertical market strategy, which of the five vertical market segments makes the most sense for Documentum? Consider at least three perspectives: the ability to leverage current customers as references; the additional effort required to develop a complete solution; and, the ability to leverage an initial success into adjacent market segments (bowling alley strategy). Explain and justify your recommendation.

4. How can Documentum use partnerships to leverage a complete solution for their customers? Can the right partnerships allow them to successfully pursue multiple markets simultaneously (moving toward a horizontal market strategy)?

5. How should Miller respond to the prospective opportunity with Marsh & McClennan? Outline the pros and cons of pursuing this opportunity. Consider both short term and long term implications.

Case: Mathsoft, Inc. (A) (HBS 9-593-094)

1. Analyze Mathsoft’s current sales and marketing approach (consider pricing, sales, distribution. advertising and sales promotion). What is working? Where are they falling short? Are the various elements of the marketing mix complementary or are they conflicting?

2. Does Mathsoft have a coherent and consistent marketing communications strategy? Do each of the elements of the marketing mix work together and reinforce each other? How would you recommend that the company improve the productivity of its marketing mix (without spending any more money)?

3. Table 3 suggests that the 30,000 MathCad units sold to date are scattered across more than 1000 large customers – a relatively low penetration rate suggesting a “try it, you’ll like it” selling approach – or perhaps a failure to “get the word out” to a sufficient number of customers.

4. Is Mathsoft’s product development strategy part of the problem? Are they delivering a “device” or a “complete product”? To what extent have specific customer requirements been taken into account in product design and development?

5. How might the ideas of Guerilla Marketing, Viral Marketing or Buzz Marketing be used to positive effect?

6. What changes in strategy would you recommend to help Mathsoft “cross the chasm” into the mainstream marketplace?

Case: CardioThoracic Systems (HBS 9-899-281)

1. What does the disparity in the initial market valuations of the IPOs of Heartport and CPT, respectively suggest about the value of reputation, image and effective public relations?

2. Can you recommend a lower-cost way to inform the doctors about the new procedure and pre-qualify the surgeons who actually attend the demonstrations in order to increase the cost-effectiveness and productivity of the training sessions?

3. It appears that the benefits of the beating heart procedure do not translate into factors that the heart surgeons are concerned with. Are there other players who would be more interested in the benefits and cost savings (patients, hospital administrators, third party payers)? Could CTS get these interested parties to influence the cardiac surgeons to adopt the new procedure? How could CTS modify their approach to leverage this strategy?

4. How might the ideas of stealth marketing, viral marketing or buzz marketing be used to positive effect?

5. If CTS has achieved a 50% market share, despite being significantly under-resourced relative to some of its larger competitors, it must be doing something right. Or is it? Shouldn’t the marketplace “gorilla” be concerned about the “#1 Chimp” in second place?

6. It is not clear that all of the identified competitors (including CTS) offer a complete solution. Does a partnering strategy (CTS with one of the major medical device companies) make sense to gain access to their significantly greater credibility, brand image and marketing clout? How? Or could you pursue an exit strategy by selling out to one of the majors? Why might this make sense?

Case: Intel Corporation – Leveraging Capabilities for Strategic Renewal (HBS 9-394-141)

Intel was there at the beginning of two “tornados” – the first in memory chips; the second in microprocessors. The outcomes for Intel were very different in these two market situations.

1. Develop a timeline of the key events in each of these two markets as demand rapidly expanded. What were the key drivers of demand in each? How did Intel’s strategy for managing the second “tornado” differ from their approach to the first?

2. What major changes did Intel make in their strategy, organizational structure and approach to the market after their experience in the memory chip market? Why? How did these changes contribute to their success in the microprocessor market? What issues and problems were created?

3. Analyze the differences in Intel’s product offering and market segmentation strategies between the first case and the second. What did they learn from their initial experience that led them to be more successful in the second?

ENTP/MKT 6380 Entrepreneurial Marketing Dr. Joseph C. Picken Revised: August 16, 2006 Printed: September 12, 2006

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ENTREPRENEURIAL MARKETING

4. Intel faces new opportunities and challenges as it moves into the 1990’s. Evaluate the company’s opportunities in moving down the value chain (as discussed at the end of the case). What are the risks? What would you recommend?

Case: Lenovo: Countering the Dell Challenge (HKU356)

1. Lenovo is the market leader in the PRC; Dell the market leader in much of the rest of the world. Describe, compare and analyze the business models of these two competitors in their respective markets. How are they similar? How are they different? Why has each been successful?

2. Based on the exhibits and tables in the case, analyze the market opportunity in the PRC over the next five years. What market segments would be most attractive to Dell, utilizing the strengths of their direct model? Which segments would present the greatest challenges?

3. Outline the “most likely” strategy for Dell in engaging this market.

4. Outline a marketing strategy for Lenovo, with the following objectives: (a) blunt the thrust of Dell’s “mostly likely “ strategy and minimize its market penetration; (b) aggressively grow Lenovo’s share in the markets in which their competitive advantage is greatest relative to Dell’s direct model; and (c) maintain and increase the company’s overall market share. Develop a five year forecast of the results of your recommended strategy, projecting the sales and market shares of the principal competitors.

5. Evaluate the rate of Internet penetration in the PRC. How can Lenovo most effectively exploit this opportunity? Can you think of any stealth marketing techniques that they could employ?

Case: First USA and Internet Marketing (9-500-043)

1. First USA’s strategy is based on speed to market and data mining expertise. How important is the First USA “brand” to their target market in terms of their two objectives of acquisition and portfolio marketing? In your view, what is the meaning and value of the First USA brand to the average consumer?

2. Evaluate the Internet as a distribution channel for First USA. What are the advantages/disadvantages of this channel as compared to its traditional channels (direct mail, telemarketing, event marketing)? Consider separately the implications for acquisition and portfolio marketing. How important is the brand in this channel?

3. How will the company’s use of the Internet channel change in the planned rollout of Wingspanbank.com? How important is the role of a “trusted agent” in First USA’s current marketing strategy? How important is the company’s data mining capability? Will these factors become more or less important as their strategy plays out?

4. Taking into account the information contained in this case, Dell Online and Amazon.com, evaluate the Internet as a distribution channel. What are the strengths and limitations of this channel as compared to traditional distribution channels. How do differences in the nature of the product/service offered, the level of customer interaction/customization required, and the level of aftermarket support affect the suitability of the channel?

ENTP/MKT 6380 Entrepreneurial Marketing Dr. Joseph C. Picken Revised: August 16, 2006 Printed: September 12, 2006

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COURSE OUTLINE

ENTREPRENEURIAL MARKETING

Session/Date

Topic

Assignment

1

The Challenge of Entrepreneurial Marketing

 

8/17/06

Readings:

Chaston: Entrepreneurial Marketing: 1-58 Morris, Schindehutte & LaForge: Entrepreneurial Marketing: A Construct For Integrating Emerging Entrepreneurship And Marketing Perspectives: Journal of Marketing Theory & Practice: 10(4) Fall 2002 (eJournal)

2

Understanding the Context: Technology Adoption Life Cycle; Market Structures; the Entrepreneurial Firm

 

8/24/06

Readings:

Davidow: Marketing High Technology: Introduction; 1-36 Moore: Inside the Tornado: Introduction, 3-26 Chaston: Entrepreneurial Marketing: 170-187

3

Entrepreneurial Marketing: Challenging Conventions

WA#1

8/31/06

Readings:

(Individual)

Chaston: Entrepreneurial Marketing: 102-151 Kim & Mauborgne. Creating New Market Space. (HBR R99105 Jan-Feb 1999) (eJournal) Moon: Break Free from the Product Life Cycle (HBR R0505E May 2005) (eJournal)

Outline Form

(4-5 pp)

Case Study: XM Satellite Radio (A) (HBS 9-504-009)

4

Defining the Target: Segmentation, Positioning & Strategic Considerations (lecture based in part on Moore: Crossing the Chasm: 107-162)

Select Wild

9/7/06

Card

Readings:

Assignment

Moore: Inside the Tornado: 27-61, 201-217 Yankelovich & Meer: Rediscovering Market Segmentation (HBR R0602G) (eJournal)

Case Study: Ikea Invades America (HBS 9-504-094)

5

Defining the Product: The Whole Product; Value Proposition

WA#2

9/14/06

Readings:

(Group)

Davidow: Marketing High Technology: 37-52, 133-146 Kim & Mauborgne: Knowing a Winning Business Idea When You See One (HBR R00510) (eJournal) Anderson, Narus & van Rossum: Customer Value Propositions in Business Markets (HBR R0603F) (eJournal) Case Study: net.Genesis,Inc. (HBS 9-500-009)

(4-5 pp)

6

Customer Service & Aftermarket Support

WA#3

9/21/06

Readings:

Project

Chaston: Entrepreneurial Marketing: 188-209 Davidow: Marketing High Technology: 53-70 Hamel: The Why, What & How of Management Innovation (HBR 0602C) (eJournal)

Proposal:

New Venture

Marketing Plan

Case Study: Amazon.com – 2002 (HBS 9-803-098)

7

Reaching the Customer: Channel Choices

WILD

9/28/06

Readings:

CARD #1

Davidow: Marketing High Technology: 71-88 Chaston: Entrepreneurial Marketing: 93-101 Case Study: Dell Online (HBS 9-598-116)

(WA#7)

ENTP/MKT 6380 Entrepreneurial Marketing Dr. Joseph C. Picken Revised: August 16, 2006 Printed: September 12, 2006

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ENTREPRENEURIAL MARKETING

8

Pricing: Choices and Strategies

WA#4

10/5/06

Readings:

(Group)

Davidow: Marketing High Technology: 102-117, 184-185 Review Kim & Mauborgne: Knowing a Winning Business Idea When You See One (HBR R00510) (eJournal) regarding pricing strategies Chaston: Entrepreneurial Marketing: 81-92 Case Study: Warner-Lambert Ireland: Niconol (HBS 9-593-008)

Outline Form

(4-5 pp)

9

Marketing Strategy: Initial Launch and Product Rollout

WILD CARD # 2

10/12/06

Readings:

Moore: Inside the Tornado: 13-61 (review); 153-174 Moore: Crossing the Chasm: 63-71, 89-106 (handout) Davidow: Marketing High Technology: 179-183 Case Study: Documentum, Inc. (HBS 9-502-026)

(WA#7)

10

Creating Awareness: Advertising, Promotion and Public Relations

WA#5

10/19/06

Readings:

(Group)

Chaston: Entrepreneurial Marketing: 59-80 Davidow: Marketing High Technology: 89-101

Case Study: Mathsoft, Inc. (A) (HBS 9-593-094)

(4-5 pp)

11

Creating Awareness: Stealth, Viral and Buzz Marketing

WILD

10/26/06

Readings:

CARD #3

Kaikati & Kaikati: Stealth Marketing: How to reach consumers surreptitiously. California Management Review: 46 (4). (eJournal) Thomas: Building the Buzz in the hive mind. Journal of Consumer Behavior, Vol. 4, 1, 64-72. (eJournal) Helm: Viral Marketing - Establishing Customer Relationships by 'Word-of-mouse' Electronic Markets, Jul 2000, Vol. 10 Issue 3, p158-161 (eJournal) Reed: Too Much Information: Precision Marketing, June 3, 2005 (eJournal) Case Study: CardioThoracic Systems (HBS 9-899-281)

(WA#7)

12

Marketing Strategy: Driving for Market Leadership

WILD

11/2/06

Readings:

CARD #4

Moore: Inside the Tornado: 63-100, 175-200

(WA#7)

Case Study: Intel Corporation – Leveraging Capabilities for Strategic Renewal (HBS 9-394-

141)

13

Marketing Strategy: Sustaining a Leadership Position

WA#6

11/9/06

Readings:

(Individual)

Moore: Inside the Tornado: 101-149 Chaston: Entrepreneurial Marketing: 152-169

Case Study: Lenovo: Countering the Dell Challenge (HKU356)

(4-5 pp)

14

Building Strong Brands and Strong Entrepreneurial Companies

WILD

11/16/06

Readings:

CARD #5

Davidow: Marketing High Technology: 118-132, 147-178 Moore: Inside the Tornado: 219-238 Christensen, Cook & Hall: Marketing Malpractice: The Cause and the Cure (HBR 0512D) (eJournal) Case Study: First USA and Internet Marketing (HBS 9-500-043)

(WA#7)

15

Group Project: New Venture Marketing Plan – Paper & Presentation

WA#8

11/28/06

Paper will be due to company and instructor by 5:00 PM on November 28 th

(Group) Essay Form (NTE 20 pp)

11/30/06

Presentation will be made in class on November 30 th

ENTP/MKT 6380 Entrepreneurial Marketing Dr. Joseph C. Picken Revised: August 16, 2006 Printed: September 12, 2006

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ENTREPRENEURIAL MARKETING

PEER EVALUATION FORM

INSTRUCTIONS

The peer evaluation process is intended to provide group members with an opportunity to contribute to the evaluation of the performance of your team members on group activities. On the form below, you may rate the performance and contributions of your team members (including yourself) in the preparation of the group assignments. Instructions follow:

1. Enter the names of your group members (alphabetically by last name). Include yourself.

2. Evaluate each assignment separately. Each team member will begin with 100 points on each assignment.

3. You may reallocate the total number of points among team members within a range of 80 to 120 points for each individual, based on their contributions to the group effort on that assignment.

4. The total number of points allocated on any single assignment must equal 100 times the number of members of the team. If you have four members on the team, the total for each column should be equal to 400.

5. I will calculate an overall assessment as a weighted average of the individual ratings, using the percentage weights indicated below.

Please sign the evaluation, place it in a sealed envelope, and turn it in with your final group assignment on December 1 st .

PEER EVALUATION

 

WA-2

WA-5

WA-7

Wild Card

WA-9

Group Member (list alphabetically)

9/15/05

10/20/05

11/17/05

As assigned

12/1/05

15%

15%

15%

20%

35%

1

         

2

         

3

         

4

         

5

         

Total

         

COMMENTS

Group

Member

Comments (please support and justify any assessment below 90% or above 110%) Continue on reverse if necessary.

1

2

3

4

5

ENTP/MKT 6380 Entrepreneurial Marketing Dr. Joseph C. Picken Revised: August 16, 2006 Printed: September 12, 2006

Signature:

Print Name:

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