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Market-Based Management Strategies for Growing Customer Value and Profitability Sixth Edition

Instructor’s Manual Overview Book Objectives and Teaching Intent Market-Based Management: Strategies for Growing Customer Value and Profitability has three primary objectives:  First, the book maintains a focus on customer value and profitability throughout. It is my hope that students using this book will develop a good understanding of customer value and the ways that market strategies contribute to profitability and growth.  The second objective is that the book expand students’ understanding of important marketing concepts and tools by means of meaningful examples and applications. With this approach, instructors can use the book as support for lectures, case studies, marketing simulations, and class projects.  The third objective is that the book be comprehensive, yet short enough (16 chapters) to allow for the use of marketing case studies, marketing simulations, and marketing projects. In this manner the book is intended to support discussions and applied assignments.

Chapter Support Materials Each chapter in the Instructor’s Manual includes:  An introductory application to facilitate chapter discussion;  Three key teaching objectives;  Recommended Harvard Business School Case Studies related to the chapter’s content;  Answers to the Market-Based Strategic Thinking questions near the end of the book’s chapters; and  Screen printouts of the online interactive marketing performance tools described at the end of each chapter of the book, along with discussion and the answers to the questions posed in the book. PowerPoint slides for the chapters are available upon request.

Marketing Performance Tools Marketing education without application is a missed learning opportunity.

One of the distinguishing features of Market-Based Management is its performance orientation. How-to-use marketing concepts and mechanisms are a continuing theme throughout the book, and each chapter’s marketing performance tools help students to solidify their learning with application exercises based on the chapter’s content. For many of the marketing performance tools, the Instructor’s Manual has suggestions for creating additional assignments or extending the analysis of the data provided for the examples used. The marketing performance tools are part of an interactive Web site where students can create their own user accounts. After applying the marketing performance tools, students can save the results. They can also experiment with the tools by entering their own data, and the can save those results also. To access the marketing performance tools, go to RogerJBest.com. The tools listed on the next page are described in the book, appear on the Web site, an are illustrated and discussed in the Instructor’s Manual.

Market-Based Management Sixth Edition Instructor’s Manual – Chapter 16

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Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall


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Marketing Performance Tools Chapter 1 1.1 1.2 1.3 1.4

Chapter 9 9.1 Channel Mapping and Pocket Price 9.2 Marketing Channel Profitability 9.3 Alternative Channel Profitability

Customer Satisfaction and Profitability Customer Retention Customer Lifetime Value Customer Loyalty and Profitability

Chapter 10

Chapter 2

10.1 Marketing Communications and Customer Response 10.2 Estimating Advertising Elasticity 10.3 Estimating the Advertising Carryover Effect

2.1 Company-Level Net Marketing Contribution 2.2 Market-Level NMC, Marketing ROS, and Marketing ROI 2.3 Company Net Marketing Contribution and Marketing ROI 2.4 Benchmarking Marketing ROI versus Operating Income as a Percentage of Sales

Chapter 11 11.1 Product Life-Cycle Portfolio 11.2 Market Growth Rate–Share Development Portfolio 11.3 GE/McKinsey Portfolio

Chapter 3 3.1 3.2 3.3 3.4 3.5

Market Potential and Market Development Index Market Share Management Product Life-Cycle Sales and Gross Profit Sales Forecasting

Chapter 12 12.1 Offensive Strategies – Core Strategy I: Grow in Existing Markets 12.2 Offensive Strategies – Core Strategy II: Improve Margins 12.3 Offensive Strategies – Core Strategy III: Diversified Growth

Chapter 4 4.1 4.2 4.3 4.4

Economic Value Analysis Price-Performance Value Mapping Customer Value Analysis Price-Performance Trade-Offs and Customer Value

Chapter 13 13.1 Defensive Strategies – Core Strategy I: Protect Position 13.2 Defensive Strategies – Core Strategy II: Optimize Position 13.3 Defensive Strategies – Core Strategy III: Monetize, Harvest, or Divest

Chapter 5 5.1 5.2 5.3 5.4 5.5

Needs-Based Segmentation Segmentation Identification Segment Profitability The “Acid Test” for Segment Strategies Customer Relationship Marketing

Chapter 14 14.1 Market Demand and Market Share 14.2 Customer Revenue and Percent Margin 14.3 Marketing and Sales Expenses

Chapter 6 6.1 6.2 6.3 6.4

Chapter 15

Cost Advantage Differentiation Advantage Marketing Advantage Industry Analysis

15.1 Variance Analysis – Market Demand and Market Share 15.2 Variance Analysis – Revenue and Cost per Customer 15.3 Variance Analysis – Marketing and Sales Expenses

Chapter 7 7.1 Product Positioning 7.2 Brand Name Development 7.3 Brand Equity

Chapter 16 16.1 Market Demand and Market Share 16.2 Percent Margin and Marketing Expenses 16.2 Asset Management and Invested Capital

Chapter 8 8.1 8.2 8.3 8.4

Value-in-Use Pricing Perceived-Value Pricing Performance-Based Value Pricing Price-Volume Pricing

Market-Based Management Sixth Edition Instructor’s Manual – Chapter 16

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Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall


Course Application and Design The information that follows can be of help to instructors in deciding when and how to use MarketBased Management. A set of guidelines for using the book is presented for each of the following courses:

 Undergraduate Marketing Strategy Course;  First-Year MBA Market-Based Management Course;  MBA Capstone Marketing Strategy Course;  Executive MBA Market-Based Management Course; and  MBA Marketing Strategy Course – With a Focus on Building a Marketing Plan. Any of these courses could be built around the process of building a strategic market plan.

Undergraduate Market Strategy Course Objective

To present a comprehensive application of marketing concepts and tools within the framework of developing a strategic market plan and marketing mix strategy.

Approach

Marketing case studies or marketing simulations, or both, serve as the means for applying the marketing concepts and tools used in developing a strategic market plan.

Book

For a course built around case studies (see specific chapters in the Instructor’s Manual for recommended case studies) or a marketing simulation, the book may be used in the following way:

 Chapters 1 and 2 lay the foundation for market orientation, customer satisfaction, marketing performance metrics, and marketing profitability. Students need to master the connection between customer satisfaction and profitability, and understand the mechanics of marketing profitability (net marketing contribution).  Chapters 3 to 6 focus on market analyses and the input needed for developing a market strategy.  Chapters 7 to 10 discuss marketing mix strategies. These chapters cover the concepts and tools needed to build strategies for product positioning, pricing, marketing channels, and marketing communications.  Chapters 11 to 16 are likely to include new material for undergraduates. As a result, more time might be spent talking about the strategic nature of marketing (Chapters 11-13), building and implementing a marketing plan (Chapters 14-15), and the impact market-based management has on the financial performance of a business (Chapter 16).

First-Year MBM Market-Based Management Course Objective

For most new MBAs, this will be their first marketing course. The objective should be to cover the marketing fundamentals and present a comprehensive view of the impact marketing strategies have on marketing performance and business profitability.

Approach

Many MBA marketing instructors prefer to use marketing case studies in this course. The instructor’s approach could include a case book, along with Market-Based Management, or using the marketing case studies recommended in the Instructor’s Manual for each chapter.

Book

For those preferring a heavy case approach with minimum lecture, the book should be used for outside reading to help students understand key marketing concepts and tools. For those using a combination of lecture and case studies, I recommend more time be spent in class discussing the concepts presented in each of the book’s chapters. In either case, I believe the first ten chapters are the most important for this course in delivering the following benefits:


 Chapters 1 and 2 provide a sound basis for marketing and the importance of market orientation, customer satisfaction, marketing performance metrics, and marketing profitability.  Chapters 3 to 6 focus on market analyses and the input needed to develop a market strategy.  Chapters 7 to 10 discuss the marketing mix strategy. These chapters provide the basic marketing concepts and tools needed to build a strategy with product positioning, pricing, marketing channels, and marketing communications.  Instructors at schools on the quarter system may want to limit coverage to Chapters 1 to 10 as outlined above (about one chapter per week). At schools on the semester system (14 to 16 weeks), instructors may want to continue with strategic marketing (Chapters 11 to 13).  Chapter 14 (building a marketing plan) and Chapter 15 (implementing a marketing plan) may be beyond the scope of an introductory MBA marketing course  Depending on the instructor’s preferences and orientation, Chapter 16 could be used to illustrate the ways that the various marketing concepts and tools presented in the book can impact both marketing performance (such market share, market growth, and sales) and financial performance (such as net income, return on capital, and earnings per share).

MBA Capstone Market Strategy Course Approach

A heavy use of marketing case studies and a marketing simulation is common. This course, besides its focus on applying students’ marketing knowledge acquired in previous courses, introduces more advanced concepts and serves to integrate market strategies and performance with the overall success of a business.

Objective

Present and apply advanced marketing concepts and tools. This is generally a second-year MBA or MBA capstone marketing course, which focuses on applying marketing knowledge in the development of market strategies.

Book

The book plays a supporting role in Chapters 1 to 10 and, depending on previous marketing courses, would be used to present new content in Chapters 11 to 16.

 Chapters 3 to 6 (market analysis) and Chapters 7 to 10 (tactical marketing strategies) could be assigned as needed to support specific marketing cases and lectures.  Even if covered in a previous course, I strongly believe the concepts and core messages presented in Chapters 1 and 2 need to be reinforced. Of particular importance is the impact of market orientation and customer satisfaction levels on profitability (Chapter 1), as well as the marketing metrics in both chapters and the mechanics of the net marketing contribution in Chapter 2.  Chapters 11, 12, and 13 (portfolio analysis and offensive and defensive strategic marketing plans) deserve extensive attention and class discussion in this course.  Chapter 14 (developing a marketing plan) and Chapter 15 (implementing a marketing plan) are also important topics for this course. In many instances, they may be coordinated with a marketing simulation or major case study in building a marketing plan.  Chapter 16 is included in the book specifically for this course. It goes beyond the impact of marketing strategies on sales, market share, and the net marketing contribution to show how market strategies also affect net profit, assets, return on assets and, ultimately, shareholder value. The chapter integrates marketing with accounting and finance.


Executive MBA Market-Based Management Course Objective

Introduce a complete picture of marketing and market strategies in a relatively short time frame (7 to 10 weeks).

Approach

Marketing case studies are used to present the realism of marketing, while the book plays an important role in laying the foundation for marketing concepts and tools.

Book

Because time is limited and these students are usually working full time, the book ‘s role is to bring students up to speed on the marketing concepts and tools that they will apply in marketing case studies.

 Chapters 1 and 2 are critical. Students can use these chapters to develop a good understanding of the importance of market orientation and customer satisfaction (Chapter 1) and the role of marketing metrics and the net marketing contribution (Chapter 2) in evaluating the success of a market strategy.  Chapters 3 to 6 need to be covered in detail since they are the bedrock from which market strategies are created. I suggest two chapters per week in covering market analysis.  Chapters 7 and 8 can be presented as a product-price positioning session in one week, and Chapters 9 and 10, the delivery of the positioning strategy, in a second session. Thus, over two sessions, an instructor would fully cover the tactical marketing strategies.  Chapters 11 to 13 (portfolio analysis and offensive and defensive strategic market plans) go together and could easily be covered in one session.  Chapter 14 (developing a marketing plan) requires its own full session. The sample marketing plan at the end of the chapter will greatly facilitate the session.  Chapter 15 (strategy implementation) describes the roadblocks to a successful implementation of a market strategy, and Chapter 16 (the profit impact of market-based management) covers marketing’s impacts on sales, costs, assets, cash flow, profitability, and, ultimately, shareholder value. The material these chapters contain is particularly appropriate for the concluding portion of the Executive MBA Marketing Course.

MBA Market Strategy Course — With a Focus on Building a Marketing Plan Objective

To present a comprehensive application of market strategy concepts and tools within the context of creating a marketing plan.

Approach

Using marketing case studies, a marketing simulation, or a field project, the approach is to apply marketing concepts and tools in the development of a comprehensive marketing plan.

Book

For a course with a marketing plan as an important part of the course, with or without a marketing simulation or case studies, the book could be used in the following way:

 Start with Chapters 1 and 2 to reinforce the importance of market orientation, customer satisfaction, and market-based management, particularly the concept of the net marketing contribution in Chapter 2.  Cover Chapter 14 (developing a marketing plan), perhaps with a case study, to lay out the process of creating a strategic marketing plan.  Next cover the material on strategic market planning in Chapters 11 to 13 and set the strategic direction for the marketing plan.  Then use Chapters 3 to 6 (as needed) to build the situation analysis for the marketing plan. For example, if you feel students need more work on market analysis, Chapter 3 could be assigned.  Chapters 7 to 10 would be assigned to help students with the development of specific marketing tactics needed to accomplish the objectives of the strategic market plan.  Chapters 14 and 15 (marketing planning and implementation) could be covered near the end of the term, depending on the instructor’s individual preference for presenting this topic. The same is true for Chapter 16 (profit impact of marketing strategies).

Solution manual market based management 6th edition roger best  

solution manual market based management 6th edition roger best. Full file at http://testbank360.eu/solution-manual-market-based-managem...

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