Marketing Monthly - May 2013 by Mays Business School

May 2013: Vol. 8, Issue 3

Marketing Monthly Academy of Marketing Science Awards

2013 Recipients of the Academy of Marketing Science Outstanding Teacher Award: (left to right) Brian VanderSchee (Aurora University), Paul Busch (Texas A&M University), Charles Fifield (Baylor University), and session chair Shannon Rinaldo (Texas Tech University)

Paul Busch just returned from the Academy of Marketing Science Annual Conference in Monterey, California, where he was awarded the AMS Lamb-Hair-McDaniel Outstanding Teacher Award. Says Busch, “I feel a special connection to this award due to one of the namesakes on it. I worked closely with Joe Hair at the University of Mississippi and I’m very grateful to Joe for recruiting me to Ole Miss. This was my first faculty appointment and it proved to be a very productive and enjoyable experience, as well as the beginning of a great 40-year friendship.” Busch especially liked the opportunity to share his current Strengthfinders work with colleagues

Julie Guidry Moulard ‘04 receives her award from Barry Babin (Louisiana Tech)

and future faculty members at the conference. Using examples of student work, interactive exercises, personal experience and information about the Strengthfinders advantages, he feels that he was able to share his excitement about what students are able to accomplish through the personal branding assignment. Julie Guidry Moulard ‘04, (Louisiana Tech) received an award for Faculty Service. This brandnew award - the AMS Harold and Muriel Berkman Faculty Achievement and Development Award recognizes service to AMS and is awarded to a Continued next page

Congratulations! (cont.) younger faculty member (as opposed to a

“lifetime” service award). Moulard is the first recipient! She is also the V.P. for MembershipNorth America; she was elected to a two-year term last spring. Part of the reason she received the award was for her analysis of the AMS

membership at their last executive committee meeting. In appreciation for all her work, Dr. Berkman (the founder of AMS and JAMS) wanted to recognize her efforts—thus, the impetus for the new award.

Mays Faculty and Staff Meeting

Marketing Department Head Rajan Varadarajan congratulates Alina Sorescu (left photo) and Allan Chen (right photo) on their appointment to endowed positions, along with Mays Business School Dean Jerry Strawser.

At the Mays Faculty and Staff meeting, held May 3rd,

several appointments to endowed positions were announced: Allan Chen [MKTG], received the John E. Pearson Professorship in Business Administration. Alina Sorescu [MKTG], received the Rebecca U. ’74 and William S. Nichols III ’74 Professorship in Business. Sorescu and Chen also received Research Recognition Awards along with Venky Shankar. Kelly Haws and Ramkumar Janakiraman both

were recognized for promotion to associate professor with tenure. Other Department of Marketing members recognized for their achievements are: Michael Lowe -- Outstanding Teaching Award for PhD students Kelli Hollinger -- Mays Star Performer Award Steve McDaniel, Lisa Troy, and Ram Janakiraman -- Teaching Recognition Award Congratulations to all of our colleagues on their richly deserved honors and recognition. Continued next page

Congratulations! Michael Lowe earned an Outstanding Teaching Award for PhD students, presented to him by Jerry Strawser.

Kelli Hollinger received her Mays Star Performer Award from James Laird and Jerry Strawser

Marketing faculty members Steve McDaniel (left end, back row), Lisa Troy (front row, third from left), and Ram Janakiraman (back row, third from right) received Teaching Recognition awards along with other Mays faculty members. Associate Dean Marty Loudder (front row, far right) congratulated the group.

Robert Palmatier (front), the John C. Narver Endowed Professor in Business Administration at The Michael G. Foster School of Business, University of Washington, recently visited to take part in our Research Seminar Series. He spoke about Emerging Research in Relationship Marketing. As part of his visit, he enjoyed dinner with Rajan Varadarajan and our doctoral students.

American Advertising Federation Scholarship Winners Four marketing students were honored at the American Advertising Federation-Houston annual awards luncheon and received scholarships from the Advertising Education Foundation of Houston. This foundation awards over 15 scholarships annually to students from across Texas, Oklahoma, Louisiana, and Arkansas who are pursuing careers

in advertising and marketing. There were over 300 applications this year and the four scholarships to Texas A&M students represent a record number won by any single school. In addition, Dr. Lisa Troy received a $500 grant from the Advertising Education Foundation of Houston in support of the advertising program

Students pictured are (left to right): Lindsay LaRosa, Business Honors and Marketing major, Houston Media Classic Education Fund Roland Larino, MS Marketing candidate, Lopez Negrete Hispanic Marketing Education Scholarship Lauren Greaves, MS Marketing candidate, Advertising Education Foundation of Houston Scholarship Brittany Watson, Marketing major, Trailblazer Education Scholarship

La Rosa Wins Stickell Award Business Honors and Marketing major Lindsay LaRosa is a 2013 recipient of the national Vance and Betty Lee Stickell Award. Established in 1989 by the Los Angeles Times and the American Advertising Federation, the Stickell program is intended to raise awareness and understanding of advertising and business ethics among future advertising professionals. LaRosa was one of just 15 students from across the country who received the award this year. She will complete her internship in account planning this summer with Leo Burnett in Chicago.

Guest Speakers

Len Berry and Chris Zane

Chris Zane of Zane’s Cycles was a guest speaker in Len Berry’s last day of spring semester classes with his MS Marketing and MBA students. Zane has been a speaker at the Retailing Summit (née Symposium) a record four times since its inception; hearing about the progression of his business and his journey as an entrepreneur extraordinaire is always entertaining as well as enlightening. Zane started fixing bikes for profit at 12 years of age and bought his first bike shop (with money borrowed from his grandfather) when he was 16 years old. (He paid back the loan in four years.) His hands-on customer-service centered approach has yielded enormous success. Zane brought along some copies of his recent book, “Reinventing the Wheel,” which he signed for a few lucky students who won them in an impromptu drawing.

Dr. Berry’s traditional end-of-semester photo with Chris Zane and his Master of Science in Marketing students.

Congratulations! Venky Shankar was recently recognized in Boston with an Award for Outstanding Contributions as Academic Trustee of the Marketing Science Institute (MSI). MSI is a corporatemembership-based learning organization dedicated to bridging the gap between marketing science theory and business practice. As a nonprofit institution, MSI financially supports academic research for the development—and practical translation—of leading-edge marketing knowledge on topics of importance to business. Issues of key importance to business performance are identified by the Board of Trustees, which represents MSI corporations and the academic community. MSI supports studies by academics on these issues and disseminates the results through conferences and workshops, as well as through its publications series. For more details about MSI, see http://www.msi.org. Venky Shankar receives the Outstanding Contribution award from the Executive Director of MSI, John A. Deighton

12m Advertising Team @ District Competition 12m Advertising, the 2013 student advertising competition team from Texas A&M University’s Mays Business School, returned from Tulsa, Oklahoma last week with a 4th place win at the district-level round of the American Advertising Association’s National Student Advertising Competition. To develop the campaign, MKTG 489 students , taught by Lisa Troy in fall 2012, did their discovery of the house paint industry. They conducted primary and secondary research into the target market, competition, industry, and house paint products. Using the research from the fall class, students in Dr. Troy’s MKTG 447 (spring 2013) class developed objectives and strategy; and prepared a fully integrated multi-media campaign including creative executions in traditional, digital, alternative, and social media, as well as developing

a $10 million, six-month media plan and schedule for this year’s client sponsor, Glidden Paint. To market Glidden specifically to Walmart shoppers, 12m Advertising created a campaign designed to break down key barriers inexperienced painters feel towards do-it-yourself projects and integrated the message with digital and social media tactics, promotions, and in-store activations. The team developed the motivational campaign slogan, “Turn Your Can’ts into Cans” and presented ideas in a 20-page professional quality campaign plan book. A group of five students was selected to represent the team at the district level competition and give a 20-minute presentation outlining the campaign to the client judges. 12m Advertising has placed in the top 5 at the hotly contested district competition every year since it began participating in 2010.

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12m Advertising Team @ District Competition

Faculty Advisor: Dr. Lisa Troy Students: (in alphabetical order) Blair Banker, Chaney Barton, Leslie Bergamo, Rachel Broussard, Bethany Debayle, Danielle Estes, Daniel Feller, Courtney Frey, Kimberley Frey, Carla Gardner, Ryan Gore, Mathieu Gregoire, Audrey Henderson, Melissa Huisman, Lauren Jay, Catherine Jones, Logan LeBouef, Chelsey Lewis, Sarah McCollom, Laura Munoz, Jeremy Mutuc, Jillian Netzel, Brittany Oliver, Kellie Parker, Chrysah Pederson, Lori Pineda, Kara Rhoads, Candace Robinson, Carli Smith, Kyndal Teich, Brittany Watson

The 12m Advertising 2013 Presentation Team: Kara Rhoads, Blair Banker, Mathieu Gregoire, Melissa Huisman, Audrey Henderson

Campaign image next page

12m Advertising Team (cont.)

12m Campaign image

CRS News & Updates Academy Sports + Outdoors – CEO/President named 2013 Visionary Merchant By Mays Business Online • April 9th, 2013 •

Rodney Faldyn receives his Visionary Merchant Award from Dean Jerry Strawser.

Rodney Faldyn ’88 says obsession drives the success of Academy Sports + Outdoors, which led to his recognition as the 2013 M.B. Zale Visionary Merchant Award. “We are obsessed with always getting better. We build a team, align our goals and let them execute them.” Faldyn says the company’s goal is to be a nationally recognized, regionally relevant and locally merchandised sports, outdoor and lifestyle store. “The market for sporting goods and outdoor gear changes every 100 miles, and we stay on top of that.” With sales projected to exceed $4 billion in 2014 and 21,000 store associates, the company seems to be on the right track. Faldyn described during his lecture at Mays Business School how his years at Texas A&M University, where he received an accounting degree, prepared him for his career in more ways than one. His juggled a rigorous academic

schedule with a job as an assistant manager at a retail store. “I don’t think I could do my role as a manager now if I had not put in that time.” He says he also learned from the failure of the company he worked for back then – Furrow Building Materials. “So many companies lose touch with the changing consumer landscape and they don’t make adjustments they need to, so they get left behind,” he says, naming other businesses such as Linens ’n Things and Circuit City. Before his promotion to CEO of Academy, Faldyn was president and chief financial officer of the company. Prior to Academy, he worked at N.F. Smith & Associates, a privately-held international electronics distributor. He spent eight years at Enron Corp. in several capacities, including vice president in international finance, chief accounting officer for a publicly-held subsidiary and vice president in accounting. Prior to that, he spent eight years at Deloitte & Touche LLP, working in the energy, wholesale trade and construction sectors. The annual M.B. Zale Visionary Merchant Lecture Series hosted by the Center for Retailing Studies (CRS) highlights the role of innovative merchandising in the success of retail businesses. M.B. Zale was a legendary retailer, visionary merchant and esteemed philanthropist. Past recipients of the Zale award represented companies ranging from Walmart to Crate and Barrel to Build-A-Bear Workshop. Faldyn’s lecture concluded an invitation-only conference for retail executives, the Center for Retailing Studies’ annual Retail Sponsor Forum. Speakers for the one-day event included Mays faculty members and industry experts who addressed topics such as showrooming, supply chain security, shelf-space allocation and motivating employees for top performance. Continued next page

CRS News & Updates (cont. from previous page)

Center director Cheryl Holland Bridges said the CRS at Mays has helped prepare thousands of Aggies for careers in retailing. As she introduced Faldyn, she added, “You all are going to have your interest piqued in retailing. If so, come see us at the center on the second floor.” Mays Dean Jerry Strawser said Faldyn differed from many speakers in that he is involved in an area of retail that directly impacts the students’ lives. The company that started as an Army surplus store now has 159 stores in 13 states, and is still expanding. “Our culture is very similar to the culture at Texas A&M: friendly, energetic, the highest integrity, respectful and based on family values,” Faldyn says. “We strive to bring active families what they need to stay active.” Faldyn and his wife live in Houston with four 16-year-olds – two sets of twins they each brought to their marriage.

Securing the loyalty of millennial customers is at the heart of Macy’s merchandising strategy, says Evonne Brazell, who wrapped the spring 2013 Executive Professor Evonne Brazell guest lecture program. The youth-targeted program is an extension of its successful My Macy’s localization program launched in 2009. “By identifying the different lifestyles of our customers, such as Girl Next Door, Freestyle, VIP and Style Setter, Macy’s tailors its assortments and store experience,” says Brazell. The 150-year-old retailer is using and

Rodney Faldyn ’88, CEO/President of Academy Sports + Outdoors, with wife Karen

developing new technologies to lure Millennial customers. After a $400 million dollar renovation, the flagship Macy’s Herald Square store will feature virtual mannequins that are re-outfitted throughout the day in order to showcase more diverse and different outfits. All of Macy’s 800+ stores offer WiFi so customers can engage through their own devices in store. With internet sales increasing 30% each month, digital access and expanded online inventory will help fuel demand. Macy’s college recruitment strategy at Texas A&M University focuses on finding talent for its stores. During the 2012-2013 academic year, over a dozen Mays students confirmed their plans to intern or begin careers as assistant managers with the department store chain. Brazell concluded by saying they will begin interviewing for 2014 in August.

CRS News & Updates New York City Spring Break Tour Every Spring Break, the Zale Scholars and top retail students travel to New York City and participate in a variety of activities that emphasize both personal and professional development of the members. The following is a reflection paper from student participant, Kailie Flores: Tom Wolfe, an American author and journalist, said it best when he claimed that, “One belongs to New York instantly, one belongs to it as much in five minutes as in five years.” The trip this past Spring Break was the first time I have ever been able to experience New York City, and I must say

Mr. Wolfe could not be more correct. From the corporate meetings, to shopping in SoHo, to seeing a Broadway show, or to just walking around the city, I knew instantly that I could see myself returning to this great city. During our trip, we attended two days of meetings with some of America’s best-known companies. Jerry Telson, Manager of the Walgreen’s at the Times Square location, gave us a tour of the three-story drug store while walking us through a little company history, and explaining the celebrity events, security measures, and merchandising strategies they implement at this particular location. For me, the most memorable part of his speech was a story about connecting with customers. While working as a sales associate, he decided to find out what greeting produced the best response from visitors. He learned that saying, “Hi, how are you?” made people, especially the highly international, tourist customer base, feel uncomfortable because that greeting implies that you know the person you are addressing. However, a simple “Welcome to Walgreens” put smiles on customer faces and established a comfortable setting. The tour concluded with a rare off-season viewing of the New Year’s Eve crystal ball, which is housed atop the store.

Kailie Flores, Amanda Entringer, Madison Conway and Natalie Swart in retail heaven at Tiffany & Co.

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CRS News & Updates (cont.) Next, we met at the Ross Buying Office. An assistant buyer and location planner discussed what each of these entry-level positions do. I particularly enjoyed hearing the buyer speak passionately about meeting their customers’ needs. With the buying office only blocks from vendors, Ross buyers regularly meet personally to view samples and negotiate deals. Ross will order products to put in stores immediately, rather than planning assortments six months in advance like most retailers. Although I enjoyed all of our meetings, our second day of tours at Bergdorf Goodman and Gilt Groupe was definitely my favorite! It was amazing to experience Bergdorf’s luxurious glamor. The 104 year-old store has kept up with technology and provides all employees iPhones; this reflects that the company’s business is really centered on relationships with customers. Without much weekday store traffic, employees regularly send merchandise pictures and

Katherine Gaines and Madison Conway

updates on new arrivals to clients via their iPhones. Bergdorf sees iPhone use as a competitive advantage. At Gilt Groupe, I discovered my dream job. The truly faster-than-fast-pace dynamics, modern open-office environment and youthful culture are amazing. Gilt manages all business aspects, from product photography, sales, and online listings inhouse in order. The Park Avenue office location lived up to its luxury brand status. By the end of the meetings, I was ready to explore the city. I enjoyed seeing Roger & Hammerstein’s Cinderella on Broadway, and shopping flea markets and SoHo boutiques. However, my most memorable experience was being asked to participate in a VH1 taping to be aired on national television the next morning. I gave them a big smile and shared my inner Aggie with a loud WHOOP! That may have been a trip highlight, but the entire New York City experience is something that I will never forget!

CRS News & Updates

Center for Retailing Studies Sponsor Forum Dr. Subodah Kumar urges retailers to avoid “the knee jerk reaction of price matching” when it comes to showrooming.* His research concludes that price matching is not a long-term success strategy for brick-and-mortar retailers facing off against on-line sites. Instead, stores should focus on relationship building with guests and view showrooming as an opportunity for sales. Even though 24% of shoppers admit to showrooming – a number expected to surge with more smartphone use and increased WiFi access – there is still no real replacement for a quality in-store experience. Kumar’s talk was part of CRS’s annual Sponsor Forum, an exclusive executive education event that showcases retailing research at Mays Business School for its corporate partners. Center director Cheryl Bridges says, “We want companies to know that not only can they find great student talent at Texas A&M, but worldclass faculty engaged in relevant industry research, as well.” Addressing the heavily HR-focused audience, Murray Barrick, director of the Center for Human Resource Management, discussed his research on employee motivation. He concludes that employers should focus on job enhancements that give employees ownership and control over their workplace. This investment pays off in terms of engaged employees who are intrinsically motivated and more knowledgeable. As for supply chains, retailers have some of the most extraordinary supply chain systems in the world. Since the recession, companies have invested more in these systems to be even more efficient and money saving. However, according *Showrooming is when a shopper visits a store to check out a product but then purchases the product online from home.

Murray Barrick, Director of the Center for Human Resource Management, talks about employee motivation

to Xen Koufteros Associate Professor of INFO, more should be done to protect product supply and consumer safety. He advises companies to invest in preventative measures to protect supply chain security. “If you allow a security breach, everyone goes down; brands and companies fail.” Experts predict the next terrorist attacks will happen through supply chain. Koufteros shocked audience members with a video of Chinese food forgery through the manufacturing of chemical filled fake eggs. Surprises continued when colleague Neil Geismar discussed his research on shelf space optimization and noted that beer and diapers share cross product elasticities. Perhaps (he postulated) this is because both diapers and beer share rectangular packaging which is visually appealing to customers, or , (he joked) maybe new babies just make you want a beer. The day’s program concluded with a networking dinner at Madden’s. Participants all share a common value in investing in retailing education at Texas A&M; all present agreed it’s good business to meet and network together.

CRS News & Updates Dallas Career Day Regina Gomez and five students made the trip to Dallas for Career Day, a philanthropic, educational outreach program for students seeking careers in the fashion and lifestyle industries. The program provides career opportunities and insights; hands-on access to companies offering internships and entry-level jobs; interaction with industry leaders, mentors and role models; and merchandising and design competitions with over $30,000 in scholarship funds and awards along with other cash and merchandise prizes. Seminars and exhibitions are hosted by some of the industries foremost companies and leading professionals. Speakers share their day-to-day work activities and real-time experiences with student participants. Career Day is held each spring at Dallas Market Centerâ&#x20AC;&#x2122;s World Trade Center (WTC) complex, and classes are held in the heart of Fashion Center Dallas. This venue gives students a first-hand view of the inner workings of the 15story market where all categories of todayâ&#x20AC;&#x2122;s marketable products are shown.

Left to right: Amanda Entringer, Hailey Jenson, Shelby Wolter, Sydney Callahan, and Hannah Kaplan at Dallas Career Day

Congratulations to student worker Lori Pineda on receiving her Aggie ring in April. Whoop!

Congratulations to Allan Chen! He has been appointed to serve on the Editorial Review Board of the Journal of Marketing.

Getting Ready for the Mays Remodel! New paint and carpeting for offices on the second floor is scheduled for this summer. Everything must go!

Clarissa Means helps pack up the department head’s office.

Rajan Vardarajan was the first mover and modeled excellent leadership behavior! Is that a cartful of old journals?

Spring Robinson and the Dean’s Office’s Rachel Krolczyk pause to pose.

Paul Busch pitches in to move a heavy cart. Diane Johnson ( Dean’s Office) and Theresa Hessel (Development Office) took a break from their regular duties to lend a hand.

Theresa Morrison on the move!