PBL Aproach for Management Education: Preparing Managers for Action.

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RANDALL SHANNON

intuition, prior experience, and personal beliefs rule over more systematic analysis when it comes to analyzing market situations and solving marketing problems. Moreover, when market research is employed, it tends to lack the analytical power needed to shed light on relevant issues. It is interesting to note that while this describes the status of most Asian SMEs, my experience with multi-national firms in the region suggests that the sophisticated use of market research is also limited in their marketing practice. As a practitioner-turned-academic, I created this PBL project with the aim of helping students see how they could employ market research skills in business situations they are likely to encounter in their careers. While the focal problem for the project concerns the positioning of a new product, the research tools and analytical approach that students learn are transferable to other management problems as well. Scholars, marketing gurus, and business consultants affirm that firms, whether selling products or services, should develop and promote competitive positioning as a business strategy.2 Many positioning strategies have been suggested as options, often with fervor and promise of success. Yet, there is often a gap between the rhetorical passion expressed for a particular strategy and the facts of the marketplace. Consumer research is the only way to obtain advance insight into whether a given positioning strategy is likely to motivate potential customers. Moreover, while publication of books touting the promise of different effective business strategies has boomed in recent years, the global marketplace itself is comprised of regions whose cultures vary on important dimensions. Companies must formulate strategies, not on the basis of a global business model, but on a deep, accurate understanding of their consumers in different markets. Thus, while strategy and marketing models may be broadly applicable, they must be employed with an understanding of the local context. Knowledge of how cultural differences influence consumer motivation becomes critically important, especially when launching new products in new markets. By way of example, for several years, McDonald’s (Thailand) has been running a promotion stating that, “Food orders will be delivered within 60 seconds, or you will receive a discount coupon for the purchase of a drink.” This promotion originated in the United States, which is considered a time-pressured society. Thailand, in contrast, is not; Thai people are accustomed to what they refer to as a sabai sabai or take it easy approach to daily life. Indeed, among Thai’s the characteristic of pushing hard to rush things to completion is known as jai raun or hot hearted. To refer to someone as jai raun in Thailand is not a compliment! Thus, this use of speed as a motivator is unlikely to achieve the desired effect of attracting customers among Thai consumers. If tested, McDonald’s would probably find their Food, Friends and Fun campaign much more successful at attracting Thai customers. This is based upon the strong motivation of Thai people for eating in groups and making the process of daily living fun and sociable. McDonalds is a well-established brand in the local Thai market. Thus, they probably attract sufficient customers, regardless of whether they are attracted to promises of rapid service. But what if instead of McDonalds, it was a new firm, or an established firm launching a new brand into the market? A misplaced strategy


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