MKT 316 (Sections 1 and 2) Intermediate Marketing Management
Fall 2015 (as of Oct 7, 2015)
Dr. Ted Mitchell (theodorem@unr.edu) Office hours are Tuesday, Thursday 2:30 - 3:45 and by appointment.

Dr. Bret Leary (rleary@unr.edu) Office hours TBA
Salman Parsinejad (salmanparsinejad@gmail.com): Office Hours 4:00-5:00 Tuesday and Thursday, LLC Room 146D

Class Times:
Mitchell Section 1:
Tuesday and Thursday 1:00 -2:15 in F.A. Room 301
Leary Section 2: Tuesday and Thursday 9:30 -10:45 in W.R.B. Room 2023
NOTE:
The Address for the class web site is
http:// www.prospectlearning.com/316/index.html
Remember this course syllabus is modified on a weekly basis to post new slides, to delete slides that were not used, to post notes or assignments.
(Before starting the registration process for the Biz-Cafe simulation, students should make sure their email account is working.)

New The plan to be followed in Game 4 has been simplified to be a Promotion Plan. Students do NOT get any credit for a plan if they fail to complete a full 8 periods of the practice game #3. Plans handed in after class will not receive full credit. The objective in Game #4 is to achieve a minimum of 80% awareness by spending money on communication expenses as efficiently as possible and to ensure that the cafe has a positive level of retained earnings by the end of week 8. Students who fail to achieve an 80% awareness level and/or a positive retained earnings by the end of the simulated 8 weeks will receive zero points for game #4. The Plan for Game #4 to be handed in on Tuesday, Oct 13, is only a Promotion Plan. Students should not hand in a full 4P marketing plan. The promotion plan must be typed and be a maximum of two pages. Handwritten plans will not be accepted and will receive zero points. Plans must have the headings presented in class and can written in bullet form. Plans that fail to use the format headings presented in class (see Slides) will receive zero points.

Theme of the Class: Optimizing Marketing Performance
Before you can control, manage or plan a marketing strategy you need to be able to evaluate the situation and analyze your current strengths, weaknesses, threats and opportunities. You can not create a good plan unless you've got a good diagnoses of past performances.

Rules for the Classroom Behavior (Note)

Manage your marketing plan by the numbers.
Your plan is your commitment to reach certain objectives in the future by making certain decisions and following certain policies.

There are many objectives; however, the overarching goal for the marketing manager is profit.

Prerequisites:
The material in this course assumes all of the students have completed all the required marketing, economics, accounting, mathematics, calculus, and statistics courses in the pre-business core. The course includes problems that require the students to know and to use accounting, algebra, calculus, decision theory, and statistics. A major focus of this course is the mathematical analysis and evaluation of marketing situations. All students are expected to be comfortable using modern tools of analysis such as spreadsheets and calculators.
Course Objectives:

This course is designed to help marketing majors learn the concepts used in structuring and analyzing the marketing process and managing market relationships. The course has a focus on the situation analysis and auditing of the marketing plan. The course material will direct the student's attention towards the major issues in managing the marketing mix, competitive analysis, and the buyer-seller relationship. The objective of the course is to give students an opportunity to learn the managerial implications of various decision paradigms and models used in marketing management.
Specific metrics must be learned and their roles in control and evaluation understood. For example, the following metrics are crucial: markup, breakeven, variances, relative change ratios, market share, measures of profitability, sales to expense ratios, customer retention rates, customer response functions, measures of customer satisfaction, efficiency ratios, product life cycles, measures of trends and correlations.
A major component of the learning in this course involves a marketing simulation game. Every student will have a firm of their own to manage and make as profitable as possible. The Biz-Cafe Simulation is designed to help students apply the tools of analysis and evaluation learned in class to realistic management situations.

Classroom rules: (slides)
Always Check the Class Web Site at http://www.prospectlearning.com/316/index.html
for the most recent update of the course outline and news about the simulation.

Review problems, Power Point Slides, and notes will be found at the Web site.
All students are expected to have a valid e-mail address and access to the World Wide Web to use the on-line resources.
There is a lot of analysis in this course. You will need your knowledge of algebra, calculus, stats and accounting on every test.


Texts:
1) Student Manual for the Biz-Cafe Simulation Game (Free on-line)

2) Notes and copies of chapters useful to the course are on-line with their links shown below in each lecture set.
3) It is recommended that students have access to their 210 textbooks


Grades:

 A = 85 - 100%  B+ = 77 - 79%  C+ = 67 - 69%  D+ = 57 - 59%
 A- = 80 - 84%  B = 74 - 76%  C = 64 - 66%  D = 54 - 56%
 F = 0 - 49%  B- = 70 - 73%  C- = 60 - 63%  D- = 50 - 53%

Grading:

Simulation Game Biz-Cafe from Intepretive Simulation  

Simulation Game #1 (practice game with lots of replays) Goal is to find a combination of advertising, radio spots, etc. that will create a minimum of 40% Awareness in 4 weeks in the most efficient manner possible with the minimum amount of cumulative promotion expense while maintaining a minimum price of $3.50 a cup and a maximum of 20 servers. Objective is to have a written plan for a 4 week awareness campaign for game #3.
Game #1 starts as soon as the student pays for the game
Game #1 ends on Monday Sept 21

You do NOT get any points for your promotion plan if you fail to play and complete 4 turns of the practice game #1.
The written plan for the awareness building campaign for Game #2 must be typed and be no longer than 2 pages in length. See and follow ( a work sheet guide for a 4 week promotion plan). The plan must be handed in during class on Tuesday Sept 22
. Plans submitted after class will not receive full credit.

Finish the game (10 points) and hand in a Promotion Campaign plan for Game #2 (10 points) based on the practice game.
Game #1 participation and plan is worth a total of 20 Points.

Simulation Game #2 (single shot game) Goal: achieve 40% awareness and optimize the total amount of advertising and promotional expense over 4 weeks (4 turns) ending at the end of first month. You must maintain a minimum price of $3.50 a cup and a maximum of 20 servers. No Replays or Restarts
Game #2 starts on Wednesday Sept 23.
Game #2 ends on Wednesday Sept 30
Earn 0 points when a student fails to achieve an 40% awareness level
Earn 10 points by achieving a minimum of 40% awareness
Efficiency Points: Earn up to 10 additional points by achieving 40% awareness with as little cumulative advertising and radio expense as possible (graded on a normal distribution of class performance)


Results of Game #2 (percentage scores of 20 points)

Simulation Game #3 (practice game) Goal: To achieve a positive level of retained earnings by the end of the 8 weeks of the simulation and to achieve an 80% awareness level among potential customers as efficiently as possible. The reason for playing game 3 is for students to have sufficient experience to write a Promotion Plan for Game #4 that makes realistic forecasts of the outcomes to be achieved by the decisions the student makes following his or her plan.
Game 3 starts on Tuesday Oct 1
Game 3 ends on Monday Oct 12

The Plan for Game #4 must be handed in during class on Tuesday Oct, 13
The plan to be followed in Game 4 has been simplified to be a Promotion Plan. Students do NOT get any credit for a plan if they fail to complete a full 8 periods of the practice game.
Plans handed in after class will not receive full credit. Plans handed in after Game 4 starts will receive 0 points. The objective in Game #4 is to achieve a minimum of 80% awareness by spending money on marketing expenses as efficiently as possible and to ensure that the cafe has a positive level of retained earnings by the end of week 8. Students who fail to achieve an 80% awareness level and/or a positive retained earnings by the end of the simulated 8 weeks will receive zero points for game #4. The Plan for Game #4 is to be handed in on Tuesday, Oct 13, is only a Promotion Plan. Students should not hand in a full 4P marketing plan. The promotion plan must be typed and be a maximum of two pages. Handwritten plans will not be accepted and will receive zero points. Plans must have the headings presented in class and can written in bullet form. Plans that fail to use the format presented in class will receive zero points (see (Slides).

Finish game #3 (5 points) and hand in a marketing plan for game #4 (15 points) based on the practice game for a total of 20 points.

Simulation Game #4 (single shot game). It is the same strategic scenario as in Game 3. The objective in Game #4 is to achieve a minimum of 80% awareness by spending money on marketing expenses as efficiently as possible and to ensure that the cafe has a positive level of retained earnings by the end of week 8. Students who fail to achieve an 80% awareness level and/or a positive retained earnings by the end of the simulated 8 weeks will receive zero points for game #4.
There are No Replays in Game #4
Game #4 Starts on Wednesday Oct 14. It is a single shot game.
Game #4 ends on Wednesday Oct 21.


20 points

Simulation Game #5 (practice game with lots of replays) Goal: maximize retained earnings over 12 turns ending in Month 3 with three sizes of cups. Objective is to prepare a marketing plan for the 12 weeks of the simulation that will be done in Game #6
Game #5 starts on Thursday Oct 22
Game #5 ends on Monday Nov 16

Submit a 3 page marketing plan for game #6 in class on Tuesday Nov 17
Students do NOT get any credit for a plan if they fail to play the practice game.
The plan is to be typed and have a maximum length of 3 pages. Plans handed in after class will not receive full credit.

Finish the game (5 points) and hand in a marketing plan for game #6 (15 points) based on the practice game for a
total 20 points

Simulation Game #6 (single shot game) Goal: maximize cumulative profits/retained earnings over 12 turns ending in Month 3 using three sizes of cups.
Game #6 starts on Wednesday Nov 18. It is a single shot game. There are no replays. It has the same strategic scenario as in Game #5.

Game #6 ends on Wednesday Nov 25
It is the same strategic scenario as in Game #5. The goal is to maximize retained earnings.
Student who fail to earn a positive retained earnings will earn zero points
. Points will be assigned using a normal distribution around the average retained earnings in the class

20 points


Simulation Game #7 (practice game with lots of replays) Goal: maximize retained earnings over 16 turns ending in Month 4 with three sizes of cups. Objective is to prepare a marketing plan for the 16 weeks of the simulation that will be done in Game #8
Game #7 starts on Friday Nov 27
Game #7 ends on Monday Dec 7

Submit a 3 page marketing plan for game #8 in class on Tuesday Dec 8
Students do NOT get any credit for a plan if they fail to play the practice game.
The plan is to be typed and have a maximum length of 3 pages. Plans handed in after class will not receive full credit.
Finish the game (5 points) and hand in a marketing plan for game #8 (15 points) based on the practice game for a
total 20 points
Simulation Game #8 (single shot game) Goal: maximize cumulative profits/retained earnings over 16 turns ending in Month 4 using three sizes of cups.
Game #8 starts on Wednesday Dec 9. It is a single shot game. There are no replays. It has the same strategic scenario as in Game #7.

Game #8 ends at noon on Tuesday Dec 15
It is the same strategic scenario as in Game #7. The goal is to maximize retained earnings.
Student who fail to earn a positive retained earnings will earn zero points
. Points will be assigned using a normal distribution around the average retained earnings in the class
20 points
Examinations and tests (All Multiple Choice Questions are Potentially Cumulative from exam to exam)  
Midterm #1 (This will include some questions about the basics of the simulation game.)
Midterm #1 is on
Tuesday, Sept 22
50 points
Midterm #2 (This will include some questions about the basics of the simulation game.)
Midterm #2 is on Tuesday, Oct 13
50 points
Midterm #3
Midterm #3 is on Tuesday Nov 17
50 points
Midterm #4 Final Exam Tuesday Dec 8 50 points
Participation exercises and in-class assignments (There are NO make-ups for these assignments, They are designed to encourage class attendance.)
Attendance in this class is important and will be noted.
40 points
Total Points for the course 400 points

One 3 x 5 index card of hand written notes and a calculator are allowed in the examination room.
No cell phones or ipads of any kind. Regular business or scientific calculators only.

Instructions for Student Registration for the Biz-Cafe Game by Interpretive Simulations
1. go to http://www.interpretive.com/students
2. you will see fields to enter your User ID/password OR enter your Course ID
3. if coming to the site for the first time, you will need to enter the Course ID for your class in the indicated field and click "Start" to begin the self-registration process.
The Course Code for Biz-Cafe Mitchell Section 1 is:
UNR19757
The Course Code for Biz-Cafe Leary Section 2 is: UNR19758
4. you will then be given a form to fill out (name and email), which will then generate a User ID/password for you and allow you to login (you should also receive an email with your User ID/password)
5. once you have logged in, please click the "Register for the Simulation" link under Getting Started to register for the simulation
6. once you have created an account, you will use your User ID/password to login to your account in the future (please only create an account with the Course ID once)
Please contact the help desk at: support@interpretive.com if you need any further assistance.

Note: Students should only enter the course code and fill out their information once. After using the Course Code once for the initial information, they should log in with the user ID and password they receive, NOT the Course Code. If they don't receive an email with their user ID and password after registering, they must contact the support staff at support@interpretive.com


Week 1 Tuesday Aug 25, Game #1 starts
Introduction to Intermediate Marketing Management:
The primary goal of marketing management is to maximize profits. Maximizing secondary goals such as sales volume, sales revenue, market share, return on advertising, etc. may not maximize the firm's profit.
Readings:
1) Draft of Chapter 1: Philosophy of Competition and Relationship of Profit to the 4P's (Draft ch1)
2) Review the concepts of the 4-P Marketing mix, market segmentation and segment targeting in any principles text.
3) A review note on basic questions involved with the study of marketing as a social science and as a management science (QandA note)
Lecture Topics:
Review the 4P's and their relationship to customer value and profit
1) Basic Definitions Used in Marketing Management With Some Misconceptions and Counter Intuitive Concepts (Slides)
2) Classic Review Questions from Principles of Marketing (slides)

Week 1 Thursday Aug 27
Lecture Topics:
Every student must know the Marketing Concept, and the classic alternatives to the marketing concept. The Four P's used by Marketing Managers are the ingredients for the creation of customer value.
1) The Marketing Concept of Competition: Creating Customer Value with the 4 P's (Slides)


Week 2 Tuesday Sept 1
Introduction to Biz-Cafe and First Decision
Biz-Cafe Simulation: The First Decision and Result
Readings:

1) Biz-Cafe manual. (interpretive note on the Biz-Cafe Case)
Lecture Topics

1) Introduction to Biz-Cafe and learning how to navigate the game (interpretive navigation slides)
2) Identifying the Game results that Marketing managers are held responsible for.
Identifying the types of Decisions that must be made and the results needed to earn points (Slides)


Week 2 Thursday Sept 3
Lecture Topics:
1) Example of an Initial Decision (Slides)
2) Re-Organizing the Biz-Cafe Decisions into those that are 4P Marketing Decisions and those that are not (Slides)



Week 3: Tuesday Sept 8
Building Customer Awareness: The question: Why are you not doing any advertising or promotion of your new business?
The Answer: I can't afford it.
The Reply: You can't afford not to build awareness for your business. Your potential customers have to know about your offering!
Readings:

Review the Topics of Awareness Building (in the Communication chapter of Principles Text)
Lecture Topics:
Building a Dashboard to track awareness as an output of the promotional effort

1) The Transition From a Direct Relationship with Advertising creating Sales to an Indirect Relationship with Advertising creating Customer Awareness, and Awareness creating Sales (slides)

2) An example of an Awareness Building Dashboard (Slides)

Week 3: Thursday Sept 10
Reading: Finish the Draft of Chapter 1 with a focus on the creation of customer value with the ingredients of the marketing mix (Draft ch1)
Lecture Topics:
1) Components of a Simple Promotion Plan (Slides)
Remember: The NEW objective in your promotion plan for Game #2 must achieve a minimum awareness of 40% while maintaining a minimum price per cup of $3.50 and a maximum of 20 servers.


Week 4: Tuesday Sept 15
Managing the Size of the Marketing Investment in Customer Value in order to Maximize the amount of Profit
Readings Chapter 2:
Topics in Chapter 2 (draft of chapter 2)
Lecture Topics:
1 ) The Marketing Profit Function: Marketing profit, Z = (a – bI) x I
The introduction to the Marketing Profit Function (slides)
2) The existence of an optimal strategy: An overview of the relationship between customer demand and customer value, the relationship between creating customer value and the cost of creating value through the marketing mix, the types of marketing costs (fixed and variable) in the 4P's, the quadratic relationship between profit and the amount of customer value that is put into the offering (Slides)

Week 4 Thursday Sept 17
Lecture Topics:
1) Introdution to the two types of rates of return associated with marketing investments AROR and MROR (slides)
Principle of Business: The AROR from investment in customer satisfaction decreases as the size of the Investment increases.
The link between theory and practice: An overview
of the linkage between the theory of marketing management based on maximizing profits and the practical problems of measuring the sensitivity or elasticity of marketing profits to changes in the amount of marketing effort expended in creating value through the mix of the four P's. (Slides)


Week 5: Monday Sept 21, Game #1 Ends,

Week 5: Tuesday Sept 22, Hand in Your Promotion Plan for Game #2

++++ Midterm #1+++++

Students are allowed to bring a 3 x 5 index card with hand written (not printed) formulae on both sides
Topics for First Midterm
Points to consider (note)
Classic Review Questions from Principles of Marketing (slides)
Basic questions involved with the study of marketing as a social science and as a management science (QandA note)
Review the questions at the end of Draft of Chapter 1: Philosophy of Competition and Relationship of Profit to the 4P's (Draft ch1)
Review the questions at the end of Draft of Chapter 2: (draft of chapter 2)

Week 5: Wednesday Sept 23, Game #2 Starts

Week 5 Thursday Sept 24
The Marketing Expenses That can be Treated as Marketing Investments
Readings:
Chapter 3:
Lecture Topics:
1) Classic strategies of business growth: penetration, new products, new customers, diversification. (slides)
2) Examples of the Three Types of Marketing Expenses (Slides)


Week 6: Tuesday, Sept 29
Exploring the Difference Between Financial Rates of Return and Marketing Rates of Return
Lecture Topics
1) The determination of a marketing investment or an enabling expense using Examples of Marketing Expenses in Biz-Cafe (Slides)
2) Demonstrating the nature of a Financial Return on Investment and
high-lighting the diffence between classic financial/business investments and marketing investments (Slides)

Week 6: Wednesday Sept 30, Game #2 Ends

Week 6: Thursday Oct 1, Game #3 Begins
Lecture Topics:
1) Financial hurdle rates being imposed on Marketing Invesstments (Slides)
2) Nature of the Marketing Investment in Growth Markets and Interpretation of the constants in the Marketing Profit Function (Slides)
3) The nature of Marketing Investment Elasticity (How sensitive is the profit being returned on a change in the investment size?) (Slides)


Week 7: Tuesday Oct 6
Reviewing the Format for the Promotion Plan
to be be followed in Game #4 ( Slides)

Lecture Topics:

Choosing a Price to charge based on the Customer Response to the sizes of Price Tags

1) Optimal Price For Maximum Revenue:
(slides)
Exploring the quadratic relationship between revenue and the size of the price tag a marketer sets
2) Discovering that there is an average rate at which revenue is being returned for every proposed level of price.
AROR on the price tag compared to the AROR on Marketing investment
3) Discovering that there is a marginal rate at which revenue is being returned for every proposed level of price.
MROR on the price tag compared to the MROR on Marketing Investment

Week 7 Thursday Oct 8
Lecture Topics:
1) Review of Setting Optimal Price: Why is The AROR(of Revenue on Price Tag) called the Demand Curve Facing the Firm
2) C
omparing the Marketing approach to the approach of an economist to how prices are set
3) how Marketing Managers Calculate and Use the Price Elasticity (Slides)


Week 8: Monday Oct 12 Game #3 Ends

Week 8 Tuesday Oct 13, Hand in the Promotion Plan for Game #4
The plan is to be typed and a maximum of 2 pages long using the format presented in class (Slides).
*******Midterm # 2 *******

Students are allowed to bring a 3 x 5 index card with hand written (not printed) formulae on both sides
Poorly done questions and topics will be returning from midterm 1

Week 8: Wednesday Oct 14, Game #4 Starts
The objective in Game #4 is to achieve a minimum of 80% awareness by spending money on marketing expenses as efficiently as possible and to ensure that the cafe has a positive level of retained earnings by the end of week 8. Students who fail to achieve an 80% awareness level and/or a positive retained earnings by the end of the simulated 8 weeks will receive zero points for game #4.

Week 8: Thursday Oct 15
Lecture Topic Introduction to the Second Half of the Semester
with Dr, Bret Leary
Introduction and overview of marketing’s strategic organizational role


Week 9: Tuesday Oct 20,
Lecture Topi:c
Marketing’s strategic organizational role

Week 9: Wednesday Oct 21, Game #4 Ends

Week 9: Wednesday Oct 22, Game #5 Starts

Week 9: Thursday Oct 22
Lecture Topic: Strategies for examining market potential, demand, and entry


Week 10: Tuesday Oct 27
Lecture Topic Strategies for examining market potential, demand, and entry

Week 10: Thursday Oct 29
Lecture Topic Market segmentation and segmentation strategies


Week 11: Tuesday Nov 3
Lecture Topic Product-related marketing strategy decisions

Week 11: Thursday Nov 5
Lecture Topic: Product-related marketing strategy decisions


Week 12: Tuesday Nov 10
Lecture Topic Marketing strategy and pricing: Making profitable decisions

Week 12: Thursday Nov 12
Lecture Topics
1) Marketing strategy and pricing: Making profitable decisions
2) Review for Midterm #3


Week 13: Monday Nov 16, Game #5 ends

Week 13: Tuesday Nov 17, Hand in Plan for Game #6
******* Midterm #3 *****

Week 13: Wednesday Nov 18, Game #6 Starts

Week 13: Thursday Nov 19 Developing marketing plans


Week 14: Tuesday Nov 24
Lecture Topic TBA

Week 14: Wednesday Nov 25, Game #6 Ends

Week 14: Friday Nov 27, Game #7 Starts
******* Thanksgiving********


Week 15: Tuesday Dec 1
Lecture Topic Marketing Strategy and communications: Reaching customers

Week 15: Thursday Dec 3
Lecture Topics
1)
Place-related marketing strategy decisions
2) Review for Midterm #4


Week 16: Monday Dec 7, Game #7 ends

Week 16: Tuesday Dec 8, Hand in the Marketing Plan for Game #8
++++++ Final Midterm Exam #4 +++++++++
You may bring a small index card with hand-written notes on both sides into the exam room.

Week 16: Wednesday Dec 9, Game #8 Starts
++++++ Prep Day +++++


Week 17: Tuesday Dec 15, Game #8 ends at noon 12;15 pm
There is no final exam on the final exam day

Scores for Game #8
Students who achieve retained earning greater than the average amount of retained earnings recorded by the class will get between 16 and 20 points depending upon the size of their earnings.
Students who achieve retained earning less than the average amount of retained earnings recorded by the class will get between 10 and 15 points depending upon the size of their earnings.
Student who fail to earn a positive retained earnings will earn 0 points


Summary of Biz-Cafe Simulation Activities
There are a total of 8 Biz-Cafe simulation games
The dates for playing each game are:

Game #1 (Practice Game) Starts on Tuesday Aug 25 and ends on Monday Sept 21
Tuesday Sept 22, Hand in the plan for game #2 before midterm #1 starts

Game #2 Starts on Wednesday Sept 23 and ends on Wednesday Sept 20

Game #3 (Practice game) Starts on Thursday Oct 1 and ends on Monday Oct 12
Tuesday Oct 13 Hand in the plan for Game #4 before midterm #2 starts

Game #4 Starts on Wednesday Oct 14. and ends on Wednesday, Oct. 21

Game #5 (Practice game) Starts on Thursday Oct 22 and ends on Monday Nov 16
Tuesday Nov 17 Hand in the plan for Game #6 before midterm #3 starts

Game #6 Starts on Wednesday Nov 18 and ends on Wednesday Nov 25

Game #7 (practice game) starts on Friday Nov 27 and ends on Monday Dec 7
Tuesday Dec 8, Hand in the plan for Game #8 before midterm #4 starts.

Game #8 Starts on Wednesday Dec 9 and ends at noon on Tuesday Dec 15