Entrepreneurial Marketing

Professor:Dr. M. Morris, Witting
E-mail: mhmorris@syr.edu, Phone: 443-3164
Class Meets: 11:30-12:50 on Office: SOM 407 Mondays and Wednesdays
Meeting Room: SOM 020
Spring Semester 2003 Office Hours: M,T,W,Th from 2-4 and by appointment (gladly!)

I. Course Pre-requisites:

Completion of “Principles of Marketing” or equivalent intro-level course in marketing.

II. Course Overview:

A dramatically new form of marketing is emerging. Recent years have witnessed the use of such terms as subversive marketing, disruptive marketing, radical marketing, guerrilla marketing, viral marketing, and expeditionary marketing. Each reflects an alternative approach to conventional marketing. This course represents an attempt to bring together these perspectives by providing an integrative framework called “entrepreneurial marketing” (EM).

With EM, marketing is approached not as a set of tools (a technology) for facilitating transactions or responding to change, but as a vehicle for fundamentally redefining products and markets in ways that produce sustainable competitive advantage. EM represents a strategic type of marketing built around six core elements: innovation, calculated risk-taking, resource leveraging, strategic flexibility, customer intensity, and the creation of industry change. A continuum is involved, where marketing efforts can be less entrepreneurial or more. Conditions in the firm’s external environment drive the need for entrepreneurial marketing (turbulence, discontinuities, rapid changes in technology, economics, etc.), while organizational factors can hinder or facilitate the firm's ability to demonstrate high levels of EM. Further, it is argued that organizations "cycle" back and forth between periods of entrepreneurial marketing (creating the future) and periods of more traditional marketing (managing the present). During the former, major new directions are taken in terms of new products, markets and marketing processes. During the latter, the focus is more on penetration of existing products and markets and the achievement of higher levels of marketing efficiency. Further, EM manifests itself in different ways as organizations evolve through stages of development.

In this course, we will explore how marketing and entrepreneurship affect and are affected by one another. We will examine concepts from each of these two areas to determine how they apply to, and how they can aid the practice of, the other. Hence, we will look at the role of marketing in entrepreneurial ventures, and the role of entrepreneurship in marketing efforts of all firms. Attention will be devoted to understanding why marketers resist entrepreneurship as well as the common mistakes entrepreneurs make when it comes to marketing. The distinct challenges confronting marketers in contemporary business environments will be reviewed, and a number of approaches for addressing these challenges will be identified. Implications will be drawn from the latest trends in marketing and in entrepreneurship. A number of hands-on cases will be used to assess real world problems at the marketing-entrepreneurship interface. Students will create marketing inventions for existing businesses.


III. Course Objectives for Students:

Upon completion of this course, students should be able to:

• Recognize the fundamental changes taking place in markets and marketing today, and draw implications for companies of all types;
• Define how marketing can be an entrepreneurial activity within organizations;
• Apply the concepts of risk analysis and risk-taking to marketing decisions;
• Identify entrepreneurial opportunities from the emerging trends occurring in marketing practice around the world;
• Identify the role of marketing in each stage of the entrepreneurial process;
• Understand the roles of networking and resource leveraging in entrepreneurial ventures, and ways that marketing can facilitate both of these activities;
• Develop inexpensive yet reliable and valid approaches to identifying customer needs and conducting market research for entrepreneurial concepts;
• Apply entrepreneurial thinking to market segmentation and targeting decisions;
• Demonstrate entrepreneurial approaches to formulating product, price, promotional and distribution strategies and action programs;
• Identify ways in which marketing inputs can enhance the new product/service development process;
• Design creative approaches to marketing communications under conditions of severe resource limitations;


IV. Textbooks and Materials (all required):

L. Lodish, H.L. Morgan and A. Kalianpur, (2001), Entrepreneurial Marketing:
Lessons from Wharton’s Pioneering MBA Course, New York: Wiley.

J. Spoelstra (2001), Marketing Outrageously, New York: Bard Press.

Case Packet available at Orange Bookstore

V. Student Evaluation (see also note below regarding extra credit):

Class participation/contribution 10%
Case presentation** 20%
Mid-term examination* 20%
Final examination* 25%
Marketing inventions *** 25%
100%

*The midterm and final examinations will be thinking exams. They will involve long-answer essay answers in which students must demonstrate a) their understanding of the key frameworks, perspectives, concepts, ideas and tools introduced in the course, b) their ability to relate these frameworks, perspectives, concepts, ideas, and tools to one another, and c) their ability to creatively apply these frameworks, perspectives, concepts, ideas, and tools in differing contexts. The midterm will cover material from the first half of the course, while the final will cover the second half of the course. Study questions will be provided prior to both the midterm and the final.

**The case presentation is an oral group presentation. Students will form into groups, and each group will present one case. All cases are in the course pack, and specific cases are presented on the date indicated in the ‘Assignments’ section below. An outline to guide your case presentation will be provided in class.

***Students working in teams of three must put together a set of five marketing inventions. Each invention must be for a particular real-world business. The inventions do not all have to be for different businesses, but at least two different businesses must be represented among the five inventions each student team comes up with. An invention will be defined as a truly unique and innovative approach to one element of the marketing mix. Thus, it could be a totally new approach to pricing or a completely different method for distribution. Each team must come up with inventions for at least three of the four elements of the marketing mix. A detailed explanation, justification and implementation plan must be put together for each invention. It should include costs and the estimated impact of the invention.


Extra Credit Opportunity:

Students can earn up to 5 points on their course grade for completing a detailed critique (not a summary) of one of a set of books. You will be provided with a list of acceptable titles. A set of questions that must be addressed in the critique will be handed out in class.

Attendance Policy:

Attendance is required. Your contribution is an important part of the learning experience gained by each of your peers. Absence means you are taking away from the class dynamic and evolving culture of the class. You are allowed a maximum of two unexcused absences. Missing more than this total will mean the forfeiture of your class participation grade.

Course Format:

The learning method will involve a mix of interactive lectures, class discussions, and case presentations. The emphasis will be on developing an understanding of key concepts at the marketing and entrepreneurship interface and applying them in a wide variety of contexts. Students are expected to come to class prepared and to make a contribution to the discussions that occur in the classroom. Contributions include asking questions, answering questions, providing examples from your own life experiences and your other courses, expressing opinions, taking positions, disagreeing with points made by the instructor or your peers, and so forth.

Academic Integrity:

All work in this course must be your own individual effort. Where you have a team assignment, the submitted or presented work must be solely that of the team members. Violations of this rule will be considered academic dishonesty and will be referred to the Academic Disciplinary Committee. The The Martin J. Whitman School of Management has adopted an Academic Integrity Policy emphasizing that honesty, integrity and respect for others are fundamental expectations in our School. The Policy requires all students who take SOM courses to certify in writing that they have read, understand, and agree to comply with the Academic Integrity Policy. SOM students should already have completed a certification statement. All non-SOM students enrolled in this course are also required to complete a certification statement available in the MBA Office. Completed statements are kept on file. The complete text of the SOM’s Academic Integrity Policy can be found on the web at http://sominfo.syr.edu/degree/ai_policy.html.


Course Schedule and Assignments:

Key: MO: Marketing Outrageously
EM: Entrepreneurial Marketing
R: reading/case packet (all assigned cases are in this packet)

Week One The brave, new marketing: 21st century conceptualizations of the Jan.13/15 marketing function; The changing role of marketing in firms;
Emerging trends in marketing; What are guerrilla and entrepreneurial marketing? Understanding entrepreneurship; The roles of marketing in entrepreneurship and of entrepreneurship in marketing;

Read: OM, Chapter 3, EM, Chapter 2 and the Grateful Dead
Case One: Howard Head and Prince

Week Two Linking marketing orientation to entrepreneurial orientation;
Jan. 22 Marketing as an entrepreneurial activity; Why marketers resist innovation; Sinking and missing the boat: marketing and risk; Marketing and resource leveraging; From mass marketing to relationship marketing to one-to-one marketing; From transaction to partnerships; From sales to customer equity;

Read: Read OM, Chapter 1 and 4; EM Chapter 11
Case Two: IceDelights

Week Three The entrepreneurial customer; Innovation diffusion and the
Jan. 27/29 window of opportunity: innovators, laggards and the rest; Crossing the chasm; Leading customers rather than following them; Other perspectives on the buyer and the segment: standardizing while customizing; Managing relationships;

Read: OM, Chapter 3 and EM, Chapter 13
Case Three: Eastwind Trading Company

Week Four Segmentation as analysis; Segmentation as strategy; Getting out of
Feb. 3/5 the box when segmenting markets;

Read OM, Chapter 10 and EM Chapter 1
Case Four: Tripledge Products

*******first Marketing Invention is due*******

Week Five Marketing research and the innovative marketer; Cheap but good
Feb. 10/12 techniques for conducting marketing research; Issues in and
approaches to identifying customer needs; Estimating market potential for new opportunities; Database management and entrepreneurship

Read: class handouts and OM, Chapter 6
Case Five: Heather Evans

Week Six The Entrepreneurial Marketing Plan; Marketing strategies for
Feb. 17/19 entrepreneurship;

Read: OM, Chapter 2; EM, Chapter 6, 10
Case Six: Calyx and Corolla

Week Seven Product innovation: types and structures; The role of marketing in
Feb 24/26 the new product development process; Innovation versus imitation strategies; Marketing and (product and business) failure

Read: Read OM, Chapter 9 and EM Chapter 2 (again)
Case Seven: Dragonfly

Week Eight Review and Midterm Examination (on Wednesday)
March 3/5


Week Nine SPRING BREAK---March 10-15

Week Ten Differentiation: of anything; Innovating with services; Branding
March 17/19 and the entrepreneurial venture;

Read: EM, Chapter 12 and OM Chapters 14 and 11
Case Eight: Shouldice Hospital

Week Eleven Towards proactive pricing; Understanding the five components of
March 24/26 great pricing programs; Entrepreneurship and the pricing program

Read: class hand-out and EM Chapter 3
Case Nine: Southwest Airlines

Week Twelve Entrepreneurshipship and the salesforce; Entrepreneurship in
March 31/April 2 personal selling;

Read: EM, Chapter 7 and OM, Chapters 5 and 15
Case Ten: Alloy.com

Week Thirteen Inexpensive approaches to advertising, sales promotion and
April 7/9 publicity; Alternative media and the entrepreneur

Read: EM, Chapters 8, 9 and OM, Chapters 12 and 13
Case Eleven: Gordon Biersch

Week Fourteen More on advertising and promotion from a guerrilla standpoint;
April 14/16 viral marketing and buzz marketing

Read: OM, Chapters 7 and 8 and Boston Beer
Case Twelve: Fastlane Technologies

Week Fifteen Marketing, the internet, and new ventures;
April 21/23

Read: EM, Chapters 4, OM, Chapter 16 and Harley Davidson
Case Thirteen: Bonny Doon

Week Sixteen The role of marketing in facilitating the development of networks;
April 28 Emerging distribution channels for the entrepreneur; Speed as
strategy: Entrepreneurship, logistics and customer service; Course wrap-up (Remaining Marketing Inventions Due)

Read: EM, Chapter 5,and OM, Chapter 17and Snap-On Tools
Case Fourteen: Microfridge

Final Examination Date: TBA

GUERRILLA MARKETING CASE ANALYSIS
AND ORAL PRESENTATION FORMAT
Dr. Michael Morris

I. Current Situation
a. The Industry
b. The Company
c. Products/Services
d. Market/Customers
e. Competition
f. Pricing Approach
g. Current Promotional Mix
h. Distribution
i. Customer Service
j. Macroenvironment

II. SWOT Analysis (Provide strong & deep analytical insight---but summarize in 2 minutes)
a. Strengths
b. Weaknesses
c. Opportunities
d. Threats

III. Central Marketing Issue in the Case
(state as a question)

IV. Strategic Alternatives (Be creative but relevant)

V. Pros and Cons of Proposed Strategic Alternatives

VI. Recommended Strategy

VII. Action Plan/Implementation (Be a guerrilla)

VIII. Budget/Timetable

IX. Tracking/Control

NOTE: The Current Situation is to be done by student groups on their own prior to their preparation of the case. Presentations should start with the Central Issue, and should last 25 minutes, followed by Q&A from the instructor and the class. Student presenters must hand out a copy of their SWOT analyses to all students in the class.