MKT 6380

ENTREPRENEURIAL MARKETING

ENTREPRENEURIAL MARKETING

Mkt 6380 Fall 2005

Class Meeting
Thursday 1900-2145, SOM 2.903
Office Hours: Mon/Wed 3:00 – 4:30 PM
Or by appointment /

Dr. Joseph C. Picken

SOM 4.212
Email:
Phone(UTD office): (972) 883-4986
Phone (McKinney office): (972) 562-5401

COURSE OBJECTIVES:

This course is about the choices and challenges of entrepreneurial marketing. Although emphasis will be on technology-based entrepreneurial ventures, the principles and practices addressed arebroadly 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 mayface 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 and strategic 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 guest speakers.

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 (paperback)
  • Coursepack: Cases

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 September 1st.

LECTURE NOTES

The MS Powerpoint slides used in lectures and case discussions and other course-related materials will be posted on WebCT ( under course ID MKT 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 discussionsis 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:

Case / Due Date / Type / Length (pages) / Weight
WA-1.XM Satellite Radio (A) / Sept 1, 2005 / Individual (outline form) / 4-5 / 10%
WA-2.net.Genesis, Inc. / Sept 15, 2005 / Group (outline form) / 4-5 / 10%
WA-3.Proposal: New Venture Marketing Plan / Sept 22, 2005 / Group (outline form) / 3-4 / 0%
WA-4.Warner-LambertIreland: Niconol / Oct 6, 2005 / Individual (outline form) / 4-5 / 10%
WA-5.Mathsoft, Inc, (A) / Oct 20, 2005 / Group (outline form) / 4-5 / 10%
WA-6.Amazon.com - 2002 / Nov 3, 2005 / Individual (outline form) / 4-5 / 10%
WA-7.CardioThoracic Systems / Nov 17, 2005 / Group (outline form) / 4-5 / 10%
WA-8.Wild Card Presentation (sessions 04, 07, 09, 11, 13) / As assigned / Group (outline form) + Powerpoint Presentation / 4-5 / 10%
WA-9.Group Project: New Venture Marketing Plan / Dec 1, 2005 / Group (essay form) + Powerpoint Presentation / 18-20 / 20%
Class Participation / Individual / 10%
Overall Course Grade / 100%

Wild Card Presentation. Each group will be assigned one or more“wild card” presentations (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.

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 December 1st.

New Venture Marketing Plan (WA-9)

As a major project for the course, each group will prepare a New Venture Marketing Plan for a startup technology-based business. Guidelines are provided in a separate section below. Each group will submit a proposal (topic selection) on September 22nd, prepare a 15-18 page Marketing Plan (due December 1st) and will make a 15 minute presentation of that plan to the class and a group of outside evaluators on December 1st.

Guidelines for Written Assignments

  • Evaluation:Ninetypercent (90%)of your grade will be based on group and individual written assignments. Written assignments will be evaluated on multiple factors, including (a) fully addressing the requirements; (b) critical evaluation and effective insights into the case situation; (c) demonstrated ability to apply the course concepts and frameworks in your analysis; (d) logical conclusions; (e)appropriate recommendations; and (f) effective communications. Particular care should be taken to fully address the requirements for each paper as detailed in the assignment. A written evaluation and critique will be provided on all graded papers.
  • Format. 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. Cover pages, charts or exhibits, and lists of references will not be included in the page count. Charts and exhibits should be numbered and appropriately referenced in the body of the document. A list of references should be attached as required. The manuscript should use 11-12 point type, double-spaced, with 1” margins all around. Appropriate titles and section headings should be used. Binders and report covers are neither necessary nor desired. Number the pages, put the course number and your name(s) at the top of each page and staple in the upper left corner.
  • Outline Form Response. Some 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.
  • Essay Form Response. Some 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, “MKT6380_2_JSmith.doc” would identify John Smith’s written assignment #2.
  • Due Dates and Late Paper Policy: Written assignments are due at the beginning of class on the date assigned.Group assignments will not be accepted late. Individual late papers turned in within one week after the due date will be graded, but 10 points will be deducted; papers turned in within two weeks will be graded, but 15 points will be deducted. Late papers received more than two weeks after the due date will receive a zero. Exceptions may be made if circumstances warrant.

Case Analysis Guidelines

Many of the written assignments and class discussions will require the analysis of case situations. Discussion questionsfor each case are provided below to help you to focus your analysis. You are encouraged to work together in your study groups to discuss the cases, including the individual written assignment cases, with the understanding that individual assignments (including tables and figures) are to be prepared and written by yourself.The following general approach to case analysis is recommended:

  • Read the case quickly. Identify the key issues and decisions/actions required (the case preparation questions will help you to focus on the key issues). Prioritize the issues in terms of urgency and importance.
  • Decide what kind of recommendations should be made (and to whom)
  • Choose appropriate analytical tools/frameworks from those introduced in the course
  • Analyze the situation thoroughly using the frameworks and theoretical frameworks provided in the readings
  • Draw logical conclusions based on your analysis
  • Make specific recommendations for action in response to the questions posed in the case or the preparation questions (what should be done, who should do it, when and in what sequence).

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, I will expect you to draw logical conclusions and (if appropriate) make recommendations that: (a) address the identified strategic issues; (b) follow logically from your analysis and conclusions; and (c) make sense (are feasible) in the context of the case situation.

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 classdue 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.

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 in Chaston Chapter 3. Is their strategy entrepreneurial? How does it challenge the established industry conventions?
  4. How does XM’s approach challenge the established industry conventions? How does XM plan to differentiate its offering from that of SIRIUS? What are the key marketing and positioning choices faced by XM? What do you recommend?

Case: Trexel (HBS 9-899-101)
  1. Why has a technology invented in 1982 taken so long to get to market? What are Trexel’s distinctive competencies? What are the competitive advantages (if any) of its technology? Given the history of Trexel’s development efforts, what barriers remain to the effective commercialization of this technology?
  2. Where would you place Trexel’s MuCell technology in terms of the Technology Adoption Life Cycle Model? Does Trexel offer a “whole product” solution (see Moore – page 21)?
  3. Define the key customer needs for each of the potential applications addressed at the end of the case. How well does Trexel’s technology meet each need? How much technology development and/or ongoing support will be required, in each case, to meet the needs (and close the deal)?
  4. Develop a set of 5-8 criteria for evaluation of the potential applications (include size of opportunity; level of technical risk; time to market, etc.). Evaluate each target market option according to your criteria and rank the five options in terms of order of preference. Explain the logic by which you rank-ordered the opportunities.
  5. Explain how your recommended option can be leveraged into a bowling alley strategy?

Case: net.Genesis.Inc. (HBS 9-500-009)
  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? It is 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? How would you position the company’s offering? What should the whole product include? What would the value proposition be?
  5. What segments should they pursue? What should the selection criteria be? Is there a logical bowling alley strategy that you can recommend?

Case: Starbucks: Delivering Customer Service (HBS 9-504-016)
  1. Service is one of three elements in Starbucks’ value proposition. How important is “service” relative to the other elements in defining the “whole product” for Starbucks’ customers? How easy (or difficult) is service to manage and control, as compared to the other elements?
  2. Starbucks has four “basic service” measures. How, if you were a store manager, would you ensure a consistently high level of performance with respect to each?
  3. Based on the information in Table A, does Starbucks compete directly with the Independents, or does the company serve a different market segment? Does the brand meaning attributed to Starbucks reflect its business strategy and the elements of basic service it emphasizes? Does it make sense for Starbucks to modify its approach to appeal to a different set of customers? What risks does this suggest?
  4. Davidow cites four lessons about delivering good service: (a) a service-oriented attitude will not assure good service; (b) if you eliminate the need for service, you are giving good service; (c) infrastructure is essential; and, (d) service is a strategic issue. How does this case illustrate each of these points?
  5. Is Starbucks’ strategy internally consistent? Are there some elements of the strategy that make excellent customer service more difficult? Does Day’s plan address the key customer service issues? Do you think it will solve the problem?

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”) of 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? Customer purchase conventions? 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?
  3. 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?