Pricing Channels

MKT 382
PRICING/CHANNELS
FALL, 2011

Course Unique # 05135 (9:30 a.m.)

Professor Kate Mackie, Ph.D.
Office CBA 5.176 M (behind Executive Education, past Communications Office)
Office Hours Tuesdays/Thursdays, 1:00-2:30, and by appointment
Phone 512-288-3115 (Cell phone – feel free to call any day before 9 p.m.)
E-Mail Kate.Mackie@mccombs.utexas.edu
Skype katemackietx
Course Web Page via Blackboard
Teaching Assistants Dave Isquick (David.Isquick@mba12.mccombs.utexas.edu )

Course Objectives
The primary objectives of this course are to: a) advance your understanding of concepts and tools useful in the analysis and development of pricing and distribution strategy, and b) help you develop skills and gain experience in formulating these strategies.

Learning methods
The course uses (a) individual and team assignments with field work, (b) case study briefs and discussions (c) lectures and discussions of readings, (d) guest speakers, and (e) a pricing simulation.

The classroom environment will be very interactive, so prepare to get involved. Students come from a variety of backgrounds with a large and diverse base of knowledge and experience. Therefore, the primary role of the professor will be to facilitate discussions that bring out pertinent issues and to better frame the analyses of these issues.

Required materials

Case Packet: The case packet is available through www.study.net. Instructions to get materials from study.net are included in the last page of this syllabus, before the course schedule.

Pricing Simulation – Universal Rental Car – Harvard Business School: Sign up instructions will be provided to you in early October. It will cost $12.50. There will be a practice round available from Nov. 4-9. The official round will run from Nov. 10-15.

Other Readings: A number of readings for this class are available in full text (usually PDF) from Business Source Complete. For these articles, go to http://www.lib.utexas.edu/, then to Research Tools→ Databases & Indexes to Articles → Databases by Subject→ Business→ Business Source Complete, and search on the title of the article (unless otherwise directed in the schedule). It works best if you put the title of the article in quotes. If you get a yellow box that says “Find it at UT”, click on the box and follow the links that have full text.

Other Materials: Other materials, such as study questions for case studies, grading sheets, and lecture slides are available on Blackboard.

Paperless Assignments: All assignments are to be submitted electronically rather than in hard copy and no later than 5 minutes prior to the start of class. Please send them directly to Dr. Mackie through Outlook as e-mail attachments using the following file name convention on the attachments themselves:

File Name Convention
[Class time]_[Your Last Name and First Initial_[Assignment name]

• Example: 930_SmithJ_Problem Set
• Example: 930_SmithJ_Brief_Case name
• Example: 930_TeamName_RtM Assignment

Grading

Blind Grading: MBA-student teaching assistants do the ‘first round’ of grading on many assignments. Therefore all papers in this course are ‘blind graded’. Therefore:

(a) Please do not submit assignments directly to the TA; and

(b) Place your name *only* in the file name of the attachment. When sending your papers to the TA, I change your name in the file name convention to a number. Please do *NOT* put your names anywhere on your submissions. For Team Assignments, include only your team name.

Each student will be evaluated on the following basis:

Contribution in class, including speaker preparation questions, Bb contribution, and quizzes (Individual) 20%
Store Check Assignment (Individual) 10%
Routes-to-Market Team Assignment (Team) 30%
Homework Exercises: Financial Analysis problems, Demand Estimation Exercise (5% each) (Individual) 10%

Case Briefs: 2 @ 10% each (Individual) 20%
Universal Car Rental Simulation Performance and Write Up (Individual) 10% 100.00%

In Class contribution and Quizzes (20%) (Individual Work)
All students are expected to be present, punctual, and prepared to contribute to all class sessions. Because of the commitment to class discussion, learning hinges on your constructive in-class contribution. Constructive contribution does not mean “air time,” but rather comments and questions that help advance everyone’s learning.

Your contribution will also be important on those days when we have speakers. The speakers talk to topics that were introduced in the readings for that day or in prior classes. Therefore, you are expected to prepare and ask thoughtful questions, and generally engage with the speaker.

Specifically, the elements considered in grading class contribution are: Do your comments indicate that you prepared the materials for the day? In a case discussion, do you go beyond repetition of case facts to analysis and recommendations? Do your comments and questions show evidence of assimilating and integrating what has been covered in the course so far? Are you a good listener – do you listen to what others are saying and contribute constructively to enhancing the discussion? Do you make insightful comments or ask thought-provoking questions? Have you contributed to the learning in the room?

Remember, constructive contribution requires that you attend class and thoroughly prepare the materials assigned for the day. I will cold-call. If you do not feel adequately prepared to participate in the discussion and do not want to be called upon, please let me know at the beginning of the class.

Contribution Scoring: At the end of each class, I will score each student’s contribution on the following scale and post the scores on Blackboard. The emphasis on scoring will be on quality over quantity. In other words, with one “10” comment, you would receive a 10 for the day. With five “8” comments, you would receive an 8 for the day. The scale is:

0 = absent 7 = present, but no contribution 8 = 1 or more average contributions, i.e., participation 9 = 1 or more insightful contributions 10 = 1 or more outstanding contributions

Discussion Board Contribution: Occasionally (maximum two times) you may need to miss a class because of interviewing or other obligations. While full credit cannot be given for in-class contribution on those days, you can earn up to 6 points for the day by discussing the lecture, readings, and/or related topics on the Discussion Board in Blackboard. In addition, you may feel that you had an important comment that you were not able to bring up in class. On those days, you can earn up to an additional 3 points (for 10 max.) by sharing your ideas/discussing the topic on the Discussion Board.
The thread for this discussion will be titled “Session # Additional Discussion”. The instructions in the thread are:
This discussion thread has two purposes:
1) it can be used by students who must occasionally (maximum two times) miss a class. If you miss class, you can receive up to 6 contribution points for the day by discussing, in some depth, what you saw as key concepts from the lecture/readings/case discussion that you missed. The way to get a 6 here is to discuss the topic in depth and perhaps bring in additional material from another article you have found that addresses similar content.
2) it can be used by students who were in class but would like to add to the discussion. For example, you may feel that you had an important comment that you were not able to bring up in class. In this case, you can earn up to an additional 3 points (for 10 max.) for the session discussed.
Note that in order to receive credit, your contributions must be completed before the start of the following class.
Quizzes: There will typically be 1-3 quizzes over the course of the semester. There will definitely be a quiz on the Socially Responsible Pricing article and others will be pop quizzes related to the reading. Each quiz is worth 10 points.

Store Check Assignment (10%)

On a periodic basis, companies that sell products through retail channels conduct store checks. These are usually done by sales personnel. It is common, however, that brand/product managers either do store checks on their own or accompany a sales person who is doing it. Usually this entails visiting one store after another for several days, often up to 6-8 stores per day. The objective is to determine the real state of the business at retail. Things that are checked and documented include shelf placement, facings, price, share of shelf, merchandising activity such as price reductions, shelf talkers, point-of-purchase display materials, end cap displays, larger displays, and other types of promotional activity. This also includes gathering similar information for key competitors. This assignment gives students the opportunity to visit two stores to complete and write up the results of the store checks to understand the impact of marketing mix decisions at the retail level. The details of the assignment will be provided in class.

Routes-to-Market Team Assignment (30%) The “Routes-to-Market” puzzle is one of the most challenging tasks in marketing. It represents a myriad of decision points and choices. Part of the challenge arises from the fact that a company is frequently ‘handing off’ major responsibilities for the success of the business to third parties. These responsibilities include generating and/or fulfilling demand, managing after sales service and returns, disseminating information and gathering feedback about the state of the market. The decisions that go into designing and managing routes to market have enormous financial implications.

This assignment permits students to experience the full range of decisions that are involved in designing and/or managing routes to market. Students will work in teams and will do one of the following:

1. Map the routes to market for one product/service for an existing company. Discuss the elements of the map in terms of demand generation, demand fulfillment, after sales service, and information feedback. In addition, examine options and recommend a possible improvement to the system. One example of this would be to recommend a route to market for expansion to a new geographic region or market segment. It will include examining/comparing at least two possible intermediaries.

2. Recommend a route-to-market strategy for a new product/service for an existing company or start up. Discuss the elements of the strategy in terms of demand generation, demand fulfillment, after sales service, and information feedback. This will include examining/comparing at least two possible intermediaries.

Most teams will present their findings to the class. The details of the assignment will be provided in class and are posted in Bb→Course Documents→RtM Assignment.

Homework Exercises (5% each)
1. Financial Analysis for Pricing – Problem Set - Complete/submit the Financial Analysis problem set and discussion question posted in BB→Course Documents.
2. Demand Estimation Exercise - Complete/submit the Demand Estimation data set analysis and discussion question posted in BB→Course Documents.

Case Briefs (2 @ 10% each)
To insure high quality discussion on case days, it is critical that all students be well prepared to discuss each case. Therefore, this assignment requires that you write and submit a 2 page brief, with attachments including your analysis, for the two cases to be discussed this semester (excluding Beauregard). The format for the brief is included in Appendix 1 and a form is posted in BB→Course Documents→Case Materials. There is also a sample brief (Case Brief Mechanics) posted there. The briefs must be exclusively your own work. Therefore, do not discuss the case with others prior to class, examine briefs completed by others, and do not do outside research. All case briefs are due via e-mail attachment, using the correct file name convention by the beginning of the class session when the case is discussed. Late cases will not be accepted – no exceptions. These will be scored as per the Brief Grading Criteria included later in the syllabus.

Universal Rental Car – Pricing Simulation (1 Official Round plus write up @ 10%)
We will run two rounds of a web-based pricing simulation developed by Harvard Business School. One will be a practice round for you to get a sense of the simulation. You are not required to participate in this round, but it is strongly recommended. (You may also want to check the discussion questions posted in BB at that time.) The dates of the rounds are listed in the schedule. Note that you can run each round five times prior to the cut-off date. Each round will require 12 ‘monthly’ decisions (it will take you 2-3 hours to complete the round) and the submission of answers to several discussion questions. These are posted in Bb in Course Documents→Universal Rental Car. High scores will be recorded and compared in class. For the “Official Round” a minimum cumulative profit score of $30,000,000 is required to get a B for the assignment, and will be evaluated separately from your answers to the study questions. A minimum cumulative profit score of $55,000,000 is required to get an A.
Re-grade requests
If you believe that you received too little credit for your work, you may request a re-grade under the following restrictions. (1) All re-grade requests must be submitted with a clear, written statement that explains why you believe the original grade was incorrect. (2) All requests for re-grades must be submitted within 1 calendar week of receiving the grade. (3) The assignment will be completely re-graded; if we were overly generous we will deduct points. Thus, your grade can go up or down on a re-grade.
Final Grades
Final grades will be established by rank in class as well as by points. There is no predetermined letter-grade distribution and the class’s overall performance will be used to set cut-offs for the letter grades.
McCombs Classroom Professionalism Policy
The highest professional standards are expected of all members of the McCombs community. The collective class reputation and the value of the Texas MBA experience hinges on this.

You should treat the Texas MBA classroom as you would a corporate boardroom.

Faculty are expected to be professional and prepared to deliver value for each and every class session. Students are expected to be professional in all respects.

The Texas MBA classroom experience is enhanced when:

• Students arrive on time. On time arrival ensures that classes are able to start and finish at the scheduled time. On time arrival shows respect for both fellow students and faculty and it enhances learning by reducing avoidable distractions.
• Students display their name cards. This permits fellow students and faculty to learn names, enhancing opportunities for community building and evaluation of in-class contributions.
• Students do not confuse the classroom for the cafeteria. The classroom (boardroom) is not the place to eat your breakfast tacos, wraps, sweet potato fries, or otherwise set up for a picnic. Please plan accordingly. Recognizing that back-to-back classes sometimes take place over the lunch hour, energy bars and similar snacks are permitted. Please be respectful of your fellow students and faculty in your choices.
• Students minimize unscheduled personal breaks. The learning environment improves when disruptions are limited.
• Students are fully prepared for each class. Much of the learning in the Texas MBA program takes place during classroom discussions. When students are not prepared they cannot contribute to the overall learning process. This affects not only the individual, but their peers who count on them, as well.
• Students attend the class section to which they are registered. Learning is enhanced when class sizes are optimized. Limits are set to ensure a quality experience. When section hopping takes place some classes become too large and it becomes difficult to contribute. When they are too small, the breadth of experience and opinion suffers.
• Students respect the views and opinions of their colleagues. Disagreement and debate are encouraged. Intolerance for the views of others is unacceptable.
• Laptops are closed and put away. When students are surfing the web, responding to e-mail, instant messaging each other, and otherwise not devoting their full attention to the topic at hand they are doing themselves and their peers a major disservice. Those around them face additional distraction. Fellow students cannot benefit from the insights of the students who are not engaged. Faculty office hours are spent going over class material with students who chose not to pay attention, rather than truly adding value by helping students who want a better understanding of the material or want to explore the issues in more depth. Students with real needs may not be able to obtain adequate help if faculty time is spent repeating what was said in class. There are often cases where learning is enhanced by the use of laptops in class. Faculty will let you know when it is appropriate to use them. In such cases, professional behavior is exhibited when misuse does not take place.
• Phones and wireless devices are turned off. We’ve all heard the annoying ringing in the middle of a meeting. Not only is it not professional, it cuts off the flow of discussion when the search for the offender begins. When a true need to communicate with someone outside of class exists (e.g., for some medical need) please inform the professor prior to class.

Remember, you are competing for the best faculty McCombs has to offer. Your professionalism and activity in class contributes to your success in attracting the best faculty to this program.
Academic Dishonesty
I have no tolerance for acts of academic dishonesty. Such acts damage the reputation of the school and the degree and demean the honest efforts of the majority of students. The minimum penalty for an act of academic dishonesty will be a zero for that assignment or exam.
The responsibilities for both students and faculty with regard to the Honor System are described on on the final pages of this syllabus. As the instructor for this course, I agree to observe all the faculty responsibilities described therein. As a Texas MBA student, you agree to observe all of the student responsibilities of the Honor Code. If the application of the Honor System to this class and its assignments is unclear in any way, it is your responsibility to ask me for clarification.
For specific guidance for this course, see the section titled Description of Requirements above. Specific guidance is provided for each assignment.
Students with Disabilities
Upon request, the University of Texas at Austin provides appropriate academic accommodations for qualified students with disabilities. Services for Students with Disabilities (SSD) is housed in the Office of the Dean of Students, located on the fourth floor of the Student Services Building. Information on how to register, downloadable forms, including guidelines for documentation, accommodation request letters, and releases of information are available online at http://deanofstudents.utexas.edu/ssd/index.php. Please do not hesitate to contact SSD at (512) 471-6259, VP: (512) 232-2937 or via e-mail if you have any questions.
Schedule: The schedule is attached at the end of this document.
Honor Code Purpose
Academic honor, trust and integrity are fundamental to The University of Texas at Austin McCombs School of Business community. They contribute directly to the quality of your education and reach far beyond the campus to your overall standing within the business community. The University of Texas at Austin McCombs School of Business Honor System promotes academic honor, trust and integrity throughout the Graduate School of Business. The Honor System relies upon The University of Texas Student Standards of Conduct (Chapter 11 of the Institutional Rules on Student Service and Activities) for enforcement, but promotes ideals that are higher than merely enforceable standards. Every student is responsible for understanding and abiding by the provisions of the Honor System and the University of Texas Student Standards of Conduct. The University expects all students to obey the law, show respect for other members of the university community, perform contractual obligations, maintain absolute integrity and the highest standard of individual honor in scholastic work, and observe the highest standards of conduct. Ignorance of the Honor System or The University of Texas Student Standards of Conduct is not an acceptable excuse for violations under any circumstances.
The effectiveness of the Honor System results solely from the wholehearted and uncompromising support of each member of the McCombs School of Business community. Each member must abide by the Honor System and must be intolerant of any violations. The system is only as effective as you make it.
Faculty Involvement in the Honor System
The University of Texas at Austin McCombs School of Business Faculty's commitment to the Honor System is critical to its success. It is imperative that faculty make their expectations clear to all students. They must also respond to accusations of cheating or other misconduct by students in a timely, discrete and fair manner. We urge faculty members to promote awareness of the importance of integrity through in-class discussions and assignments throughout the semester.
Expectations Under the Honor System
Standards
If a student is uncertain about the standards of conduct in a particular setting, he or she should ask the relevant faculty member for clarification to ensure his or her conduct falls within the expected scope of honor, trust and integrity as promoted by the Honor System. This applies to all tests, papers and group and individual work. Questions about appropriate behavior during the job search should be addressed to a professional member of the Career Management Office. Below are some of the specific examples of violations of the Honor System.
Lying
Lying is any deliberate attempt to deceive another by stating an untruth, or by any direct form of communication to include the telling of a partial truth. Lying includes the use or omission of any information with the intent to deceive or mislead. Examples of lying include, but are not limited to, providing a false excuse for why a test was missed or presenting false information to a recruiter.
Stealing
Stealing is wrongfully taking, obtaining, withholding, defacing or destroying any person's money, personal property, article or service, under any circumstances. Examples of stealing include, but are not limited to, removing course material from the library or hiding it from others, removing material from another person's mail folder, securing for one's self unattended items such as calculators, books, book bags or other personal property. Another form of stealing is the duplication of copyrighted material beyond the reasonable bounds of "fair use." Defacing (e.g., "marking up" or highlighting) library books is also considered stealing, because, through a willful act, the value of another's property is decreased. (See the appendix for a detailed explanation of "fair use.")
Cheating
Cheating is wrongfully and unfairly acting out of self-interest for personal gain by seeking or accepting an unauthorized advantage over one's peers. Examples include, but are not limited to, obtaining questions or answers to tests or quizzes, and getting assistance on case write-ups or other projects beyond what is authorized by the assigning instructor. It is also cheating to accept the benefit(s) of another person's theft(s) even if not actively sought. For instance, if one continues to be attentive to an overhead conversation about a test or case write-up even if initial exposure to such information was accidental and beyond the control of the student in question, one is also cheating. If a student overhears a conversation or any information that any faculty member might reasonably wish to withhold from the student, the student should inform the faculty member(s) of the information and circumstance under which it was overheard.
Actions Required for Responding to Suspected and Known Violations
As stated, everyone must abide by the Honor System and be intolerant of violations. If you suspect a violation has occurred, you should first speak to the suspected violator in an attempt to determine if an infraction has taken place. If, after doing so, you still believe that a violation has occurred, you must tell the suspected violator that he or she must report himself or herself to the course professor or Associate Dean of the McCombs School of Business. If the individual fails to report himself or herself within 48 hours, it then becomes your obligation to report the infraction to the course professor or the Associate Dean of the McCombs School of Business. Remember that although you are not required by regulation to take any action, our Honor System is only as effective as you make it. If you remain silent when you suspect or know of a violation, you are approving of such dishonorable conduct as the community standard. You are thereby precipitating a repetition of such violations.
The Honor Pledge
The University of Texas at Austin McCombs School of Business requires each enrolled student to adopt the Honor System. The Honor Pledge best describes the conduct promoted by the Honor System. It is as follows:
"I affirm that I belong to the honorable community of The University of Texas at Austin Graduate School of Business. I will not lie, cheat or steal, nor will I tolerate those who do."
"I pledge my full support to the Honor System. I agree to be bound at all times by the Honor System and understand that any violation may result in my dismissal from the McCombs School of Business."

The following pages provide specific guidance about the Standard of Academic Integrity at the University of Texas at Austin. Please read it carefully and feel free to ask me any questions you might have.

Excerpts from the University of Texas at Austin Office of the Dean of Students website (http://deanofstudents.utexas.edu/sjs/acint_student.php)
The Standard of Academic Integrity
A fundamental principle for any educational institution, academic integrity is highly valued and seriously regarded at The University of Texas at Austin, as emphasized in the standards of conduct. More specifically, you and other students are expected to "maintain absolute integrity and a high standard of individual honor in scholastic work" undertaken at the University (Sec. 11-801, Institutional Rules on Student Services and Activities). This is a very basic expectation that is further reinforced by the University's Honor Code. At a minimum, you should complete any assignments, exams, and other scholastic endeavors with the utmost honesty, which requires you to:
• acknowledge the contributions of other sources to your scholastic efforts;
• complete your assignments independently unless expressly authorized to seek or obtain assistance in preparing them;
• follow instructions for assignments and exams, and observe the standards of your academic discipline; and
• avoid engaging in any form of academic dishonesty on behalf of yourself or another student.
For the official policies on academic integrity and scholastic dishonesty, please refer to Chapter 11 of the Institutional Rules on Student Services and Activities.
What is Scholastic Dishonesty?
In promoting a high standard of academic integrity, the University broadly defines scholastic dishonesty—basically, all conduct that violates this standard, including any act designed to give an unfair or undeserved academic advantage, such as:
• Cheating
• Plagiarism
• Unauthorized Collaboration
• Collusion
• Falsifying Academic Records
• Misrepresenting Facts (e.g., providing false information to postpone an exam, obtain an extended deadline for an assignment, or even gain an unearned financial benefit)
• Any other acts (or attempted acts) that violate the basic standard of academic integrity (e.g., multiple submissions—submitting essentially the same written assignment for two courses without authorization to do so)
Several types of scholastic dishonesty—unauthorized collaboration, plagiarism, and multiple submissions—are discussed in more detail on this Web site to correct common misperceptions about these particular offenses and suggest ways to avoid committing them.
For the University's official definition of scholastic dishonesty, see Section 11-802, Institutional Rules on Student Services and Activities.
Unauthorized Collaboration
If you work with another person on an assignment for credit without the instructor's permission to do so, you are engaging in unauthorized collaboration.
• This common form of academic dishonesty can occur with all types of scholastic work—papers, homework, tests (take-home or in-class), lab reports, computer programming projects, or any other assignments to be submitted for credit.
• For the University's official definitions of unauthorized collaboration and the related offense of collusion, see Sections 11-802(c)(6) & 11-802(e), Institutional Rules on Student Services and Activities.
Some students mistakenly assume that they can work together on an assignment as long as the instructor has not expressly prohibited collaborative efforts.
• Actually, students are expected to complete assignments independently unless the course instructor indicates otherwise. So working together on assignments is not permitted unless the instructor specifically approves of any such collaboration.
Unfortunately, students who engage in unauthorized collaboration tend to justify doing so through various rationalizations. For example, some argue that they contributed to the work, and others maintain that working together on an assignment "helped them learn better."
• The instructor—not the student—determines the purpose of a particular assignment and the acceptable method for completing it. Unless working together on an assignment has been specifically authorized, always assume it is not allowed.
• Many educators do value group assignments and other collaborative efforts, recognizing their potential for developing and enhancing specific learning skills. And course requirements in some classes do consist primarily of group assignments. But the expectation of individual work is the prevailing norm in many classes, consistent with the presumption of original work that remains a fundamental tenet of scholarship in the American educational system.
Some students incorrectly assume that the degree of any permissible collaboration is basically the same for all classes.
• The extent of any permissible collaboration can vary widely from one class to the next, even from one project to the next within the same class.
• Be sure to distinguish between collaboration that is authorized for a particular assignment and unauthorized collaboration that is undertaken for the sake of expedience or convenience to benefit you and/or another student. By failing to make this key distinction, you are much more likely to engage in unauthorized collaboration. To avoid any such outcome, always seek clarification from the instructor.
Unauthorized collaboration can also occur in conjunction with group projects.
• How so? If the degree or type of collaboration exceeds the parameters expressly approved by the instructor. An instructor may allow (or even expect) students to work together on one stage of a group project but require independent work on other phases. Any such distinctions should be strictly observed.
Providing another student unauthorized assistance on an assignment is also a violation, even without the prospect of benefiting yourself.
• If an instructor did not authorize students to work together on a particular assignment and you help a student complete that assignment, you are providing unauthorized assistance and, in effect, facilitating an act of academic dishonesty. Equally important, you can be held accountable for doing so.
• For similar reasons, you should not allow another student access to your drafted or completed assignments unless the instructor has permitted those materials to be shared in that manner.
Plagiarism
Plagiarism is another serious violation of academic integrity. In simplest terms, this occurs if you represent as your own work any material that was obtained from another source, regardless how or where you acquired it.
• Plagiarism can occur with all types of media—scholarly or non-academic, published or unpublished—written publications, Internet sources, oral presentations, illustrations, computer code, scientific data or analyses, music, art, and other forms of expression. (See Section 11-802(d) of the Institutional Rules on Student Services and Activities for the University's official definition of plagiarism.)
• Borrowed material from written works can include entire papers, one or more paragraphs, single phrases, or any other excerpts from a variety of sources such as books, journal articles, magazines, downloaded Internet documents, purchased papers from commercial writing services, papers obtained from other students (including homework assignments), etc.
• As a general rule, the use of any borrowed material results in plagiarism if the original source is not properly acknowledged. So you can be held accountable for plagiarizing material in either a final submission of an assignment or a draft that is being submitted to an instructor for review, comments, and/or approval.
Using verbatim material (e.g., exact words) without proper attribution (or credit) constitutes the most blatant form of plagiarism. However, other types of material can be plagiarized as well, such as ideas drawn from an original source or even its structure (e.g., sentence construction or line of argument).
• Improper or insufficient paraphrasing often accounts for this type of plagiarism. (See additional information on paraphrasing.)
Plagiarism can be committed intentionally or unintentionally.
• Strictly speaking, any use of material from another source without proper attribution constitutes plagiarism, regardless why that occurred, and any such conduct violates accepted standards of academic integrity.
• Some students deliberately plagiarize, often rationalizing this misconduct with a variety of excuses: falling behind and succumbing to the pressures of meeting deadlines; feeling overworked and wishing to reduce their workloads; compensating for actual (or perceived) academic or language deficiencies; and/or justifying plagiarism on other grounds.
• But some students commit plagiarism without intending to do so, often stumbling into negligent plagiarism as a result of sloppy notetaking, insufficient paraphrasing, and/or ineffective proofreading. Those problems, however, neither justify nor excuse this breach of academic standards. By misunderstanding the meaning of plagiarism and/or failing to cite sources accurately, you are much more likely to commit this violation. Avoiding that outcome requires, at a minimum, a clear understanding of plagiarism and the appropriate techniques for scholarly attribution. (See related information on paraphrasing; notetaking and proofreading; and acknowledging and citing sources.)
By merely changing a few words or rearranging several words or sentences, you are not paraphrasing. Making minor revisions to borrowed text amounts to plagiarism.
• Even if properly cited, a "paraphrase" that is too similar to the original source's wording and/or structure is, in fact, plagiarized. (See additional information on paraphrasing.)
Remember, your instructors should be able to clearly identify which materials (e.g., words and ideas) are your own and which originated with other sources.
• That cannot be accomplished without proper attribution. You must give credit where it is due, acknowledging the sources of any borrowed passages, ideas, or other types of materials, and enclosing any verbatim excerpts with quotation marks (using block indentation for longer passages).
Plagiarism & Unauthorized Collaboration
Plagiarism and unauthorized collaboration are often committed jointly.
By submitting as your own work any unattributed material that you obtained from other sources (including the contributions of another student who assisted you in preparing a homework assignment), you have committed plagiarism. And if the instructor did not authorize students to work together on the assignment, you have also engaged in unauthorized collaboration. Both violations contribute to the same fundamental deception—representing material obtained from another source as your own work.
Group efforts that extend beyond the limits approved by an instructor frequently involve plagiarism in addition to unauthorized collaboration. For example, an instructor may allow students to work together while researching a subject, but require each student to write a separate report. If the students collaborate while writing their reports and then submit the products of those joint efforts as individual works, they are guilty of unauthorized collaboration as well as plagiarism. In other words, the students collaborated on the written assignment without authorization to do so, and also failed to acknowledge the other students' contributions to their own individual reports.
Multiple Submissions
Submitting the same paper (or other type of assignment) for two courses without prior approval represents another form of academic dishonesty.
You may not submit a substantially similar paper or project for credit in two (or more) courses unless expressly authorized to do so by your instructor(s). (See Section 11-802(b) of the Institutional Rules on Student Services and Activities for the University's official definition of scholastic dishonesty.)
You may, however, re-work or supplement previous work on a topic with the instructor's approval.
Some students mistakenly assume that they are entitled to submit the same paper (or other assignment) for two (or more) classes simply because they authored the original work.
Unfortunately, students with this viewpoint tend to overlook the relevant ethical and academic issues, focusing instead on their own "authorship" of the original material and personal interest in receiving essentially double credit for a single effort.
Unauthorized multiple submissions are inherently deceptive. After all, an instructor reasonably assumes that any completed assignments being submitted for credit were actually prepared for that course. Mindful of that assumption, students who "recycle" their own papers from one course to another make an effort to convey that impression. For instance, a student may revise the original title page or imply through some other means that he or she wrote the paper for that particular course, sometimes to the extent of discussing a "proposed" paper topic with the instructor or presenting a "draft" of the paper before submitting the "recycled" work for credit.
The issue of plagiarism is also relevant. If, for example, you previously prepared a paper for one course and then submit it for credit in another course without citing the initial work, you are committing plagiarism—essentially "self-plagiarism"—the term used by some institutions. Recall the broad scope of plagiarism: all types of materials can be plagiarized, including unpublished works, even papers you previously wrote.
Another problem concerns the resulting "unfair academic advantage" that is specifically referenced in the University's definition of scholastic dishonesty. If you submit a paper for one course that you prepared and submitted for another class, you are simply better situated to devote more time and energy toward fulfilling other requirements for the subsequent course than would be available to classmates who are completing all course requirements during that semester. In effect, you would be gaining an unfair academic advantage, which constitutes academic dishonesty as it is defined on this campus.
Some students, of course, do recognize one or more of these ethical issues, but still refrain from citing their authorship of prior papers to avoid earning reduced (or zero) credit for the same works in other classes. That underlying motivation further illustrates the deceptive nature of unauthorized multiple submissions.
An additional issue concerns the problematic minimal efforts involved in "recycling" papers (or other prepared assignments). Exerting minimal effort basically undercuts the curricular objectives associated with a particular assignment and the course itself. Likewise, the practice of "recycling" papers subverts important learning goals for individual degree programs and higher education in general, such as the mastery of specific skills that students should acquire and develop in preparing written assignments. This demanding but necessary process is somewhat analogous to the required regimen of athletes, like the numerous laps and other repetitive training exercises that runners must successfully complete to prepare adequately for a marathon.
Appendix 1: Instructions for Case Analyses

Case Study Preparation

It is imperative that a businessperson be competent in the process of problem solving. Through the use of case studies this course will develop your skills in analyzing various business problems. Therefore, a basic methodology for situation analysis and decision-making is presented which will useful in most areas of policy making. The major steps in this process are:

1. Define the decision to be made (be specific) and the selection criteria you will use to choose between the alternatives.
2. Determine which information is relevant to the decision and organize it into separate issues
3. Analyze each issue, using spreadsheets where applicable
4. Formulate viable alternatives
5. Evaluate the alternatives
6. Make a decision, i.e., specify criteria you will use to choose between the alternatives and make a recommendation based on those criteria.
7. Devise a plan for implementation

The required format will take you through this process.

In preparing yourself for class, the following process may be helpful:

1. Thoroughly familiarize yourself with all the information given in the case. As you go through the information take notes and/or highlight and be sure you differentiate between fact and opinion. 2. State the decision to be made and selection criteria. This should be very direct and very succinct. It could include key elements of the decision and/or alternatives under consideration. The best papers include the alternatives among which the decision will be made. Also include selection criteria, i.e., what are the criteria that would be important to the protagonist in the case that you would use to choose between the alternatives? 3. Divide the case data into logical areas of consideration that are relevant to the decision. For example, a decision on whether to enter a new market may involve analysis of issues such as size and growth of the market, existing and potential competition, competitive fit of current marketing programs, and government regulation and policy. Analyze the case information in each area, including financial analysis and spreadsheets (as appendices) as applicable. 4. Formulate alternative courses of action. Brainstorm to develop as many potential solutions as possible. Then reduce the alternatives down to the most logical (perhaps 3 alternatives, depending on the situation). 5. Evaluate the “pros” and “cons” of each alternative. Be sure to consider the long-run impact of each alternative. Try to determine how sensitive each alternative will be to outcomes/changes in the business environment which are different from what you are projecting. Plan on presenting at least 2 pros and 2 cons for each alternative. This will frequently include the results of your analytical work. For example, if you have determined that one alternative is less profitable than another, a ‘con’ for that alternative would be the degree to which the profit would be lower. 6. Recommend a decision (i.e., one of the alternatives) and provide rationale. Go further than simply repeating the pros of your choice. The rationale should include a discussion of how well or badly each of the alternatives fares when tested against the selection criteria that you believe are important (e.g., profitability, market share, time to market, company fit, etc.). It should include an explanation of why the alternative you’ve chosen is superior in terms of those criteria. Note that, as in real life, you may feel that a combination of alternatives would be a better overall approach. However, in this decision-making process, it is important for you to recommend only one of the alternatives. At the same time, though, you will need to identify the weaknesses as well as the strengths of your choice. These weaknesses can then be addressed in your implementation plan – the next section of the write up. 7. Develop a plan for implementation that is realistic and which attempts to minimize or avoid the weaknesses in your recommendation. An implementation plan is often a listing of who is going to do what, when, and how. Depending on the case, your implementation plan might include a set of action priorities, time-lines, personnel recommendations, policy changes, and/or organization and system changes. In some cases you may need to include contingency plans for environmental changes different from the projections on which you base your recommendation. (Note that the implementation plan is not required for the briefs. However, we may discuss possible implementation issues in class.)

Format for Individual Written Case Brief (Required)

(Two pages, single spaced, 1” margins, Calibri 11. You may also use unlimited exhibits to show analysis of data IF the exhibits are referenced in the text AND there are a few summary points made on each exhibit). . Briefs over 2 pages (excluding exhibits) will be penalized one point per page over length.

******************************************************************************
Note: Use the study questions on Bb when preparing the brief. They are provided to focus your brief towards a specific area of the case. Moreover, they will assist you in determining the central decision to be addressed in the brief.
******************************************************************************

Decision to be made: (Must be stated briefly and clearly with at least some idea of the alternatives. Should not be a question.)

Selection Criteria: (what 2-3 criteria would the decision-maker in the case use to choose between the alternatives?)
•
•
•

Alternatives (include 2-3 of the most viable): Pro’s Con’s
Alt #1: • • • • • •
Alt #2: • • • • • •
Alt #3: • • • • • •

Recommendation (which one of the alternatives do you recommend?):

Rationale (what is the logic behind your decision? How is it related to each of your selection criteria? What are the strengths/weaknesses of your choice? The clearest way to write this is to use a paragraph to fully examine each of your criteria – and how your chosen alternative is superior to the others in terms of that criterion):

****************************************************************************** Scoring Criteria for Brief

Score Description

√+++
10
Very clear decision choice; Criteria logical and concise; Alternatives viable, insightful, and in alignment with Decision to be Made; Extremely thorough pros/cons; Clear recommendation with thorough explanation of rationale that is linked to evaluation criteria; Extremely thorough financial or other, (e.g., performance), analysis; Thoroughly addresses concepts raised in study questions.

√++
9.5
Clear decision choice; Criteria logical; Alternatives viable and in alignment with Decision to be Made; In depth pros/cons; Clear recommendation with thorough explanation of rationale that is linked to evaluation criteria; Strong financial or other, (e.g., performance), analysis. Addresses concepts raised in study questions.

√+
9.0
Decision choice acceptable; Criteria logical; Alternatives viable and in alignment with Decision to be Made; In depth pros/cons; Clear recommendation with explanation of rationale; Financial or other, (e.g., performance), analysis. Addresses concepts raised in study questions.

√
8.5

Decision choice acceptable; Criteria logical; Alternatives acceptable; Brief pros/cons OR Brief explanation of rationale; Financial or other, (e.g., performance), considerations

√-
8.0

Decision choice acceptable; Criteria present, though not necessarily appropriate; Brief pros/cons; Brief explanation of rationale; No financial or other, (e.g., performance), analysis

√- -
7.0 – 7.5 Decision choice less clear and/or; Very brief pros/cons; and/or very brief explanation of rationale; No financial or other (e.g., performance) analysis

Preparing Cases for Class Discussion

When you prepare for class discussion, it is recommended that you plan on reading the case at least three times.

First Reading: The first reading should be a quick run-through of the text in the case. It should give you a feeling for what the case is about and the types of data that are contained in the case. It should also give you some insight into the problem requiring resolution, as well as background information on the environment and the organization. For example, you will want to differentiate between facts and opinions that may be expressed. In every industry, there is a certain amount of “conventional wisdom” that may or may not reflect the truth.

Second Reading: On your second reading you should read in more depth. Many people like to underline or otherwise mark up their cases to pick out important points that they know will be needed later. Your major effort on a second reading should be to understand the business and the situation.

Here you should carefully examine the exhibits in the case. It is generally true that the case writer has put the exhibit there for a purpose. It contains some information that will be useful to you in analyzing the situation. Ask yourself what the information is when you study each exhibit. You may find that you will need to apply some analytical technique to the exhibit in order to benefit from the information in the raw data.

There are several errors that people often make at this stage. First, you may form a premature conclusion regarding the key issues of the case. Doing this could cause you to overlook key information, or worse, form a preconceived idea of the “answer.” This can be especially problematic because it could cause you to distort facts to fit that preconceived idea. A second error is that people start indiscriminately crunching numbers. Cases often contain many facts in the text and exhibits. As in real life, much of the data you find will not be relevant to the central problem(s) in the case. Make sure that you understand the meaning and relevance of the data before you start analyzing numbers. Finally, people often confuse supposition with fact. Be sure to ask yourself whether a given piece of information is a fact, based on actions or performance, or someone’s opinion.

Third Reading: On your third reading, you should have a good idea of the fundamentals of the case. Now you will be searching to understand the specific situation. You will want to get at the root causes of problems and gather data from the case that will allow you to make specific action recommendations. In reality, simple underlining will not provide you with sufficient information *in memory* to permit thorough analysis. Therefore, it is strongly recommended that you take notes regarding key facts and ideas as you go. Before the third reading, you may want to review the discussion questions in the course description. It is during and after the third reading that you should be able to prepare your outlined answers to the discussion questions. Note that if you have prepared a formal case write-up, you may not need to develop written answers to the discussion questions as you will have incorporated that information into your write-up.

Finally, be prepared for the fact that the discussion in class will not necessarily follow the exact wording of the discussion questions. However, careful preparation of the questions will provide you with a strong grasp of the case and therefore permit you to contribute in an effective way. Appendix 2: Effective Class Discussion:

Some of the things that have an impact on effective class contribution are the following:

1. Is the participant a good listener? That is, do the participant’s comments reflect an understanding of what previous participants have said?

2. Are the points that are made relevant to the discussion? Are they linked to the comments of others?

3. Do the comments add to our understanding of the situation?

4. Do the comments show evidence of analysis of the case or article?

5. Does the participant distinguish among different kinds of data (e.g., facts vs. opinions.)?

7. Is there a willingness to test new ideas, or are all comments “safe”? (For example, repetition of case facts without analysis and conclusions or a comment already made by a colleague.)

8. Is the participant willing to interact with other class members?

9. Do comments clarify and highlight the important aspects of earlier comments and lead to a clearer statement of the concepts being covered?

“Do’s” for In-Class Case Discussions: “Don’ts” for In-Class Case Discussions:
• Prepare before class - - with notes!
• Enter the discussions
• Relate outside experience and past knowledge
• Relate past cases and material covered in the course
• Relate outside research
• Be brief, constructive and provocative
• Summarize your ideas at the end of a comment
• Keep your comments focused on the topic at hand
• Keep an open mind and respect other students’ views
• Disagree
• Listen
• Have fun • Repeat others
• Repeat yourself
• Repeat facts from the case (unless you are doing so to give a context for your own comments or conclusions or to refute another person’s conclusion)
• Make sudden topic changes
• Dominate the discussions (Let other students have a say as well!)
• Use hostility or sarcasm in evaluating other students’ ideas or comments
• Take criticism of your comments personally

/# Date Topics Readings and Location
(BSC = Business Source Complete) Assignments Due
1. 08/25 Th • Describe the requirements and flow of the course
• Explain the importance of Routes-to-Market (RtM) in terms of your next job.
• Recognize RtM decision areas
• Describe the elements of the “Store Check” assignment.
• Describe the key components of the RtM Team Assignment
• Introductions for purpose of forming teams • Syllabus and Schedule – Blackboard
2. 08/30 T • Form teams for RtM assignment.
• Describe the basic functions/flows of channels.
• Describe the decisions/choices related to the function
• Describe what customers want from channels
• RtM Assignment connections – what functions will be needed by the target?

• Speaker: Rolando Cueva • Dolan, R.J. (2000). “Going to Market” HBS Note #9-599-078. (Study.net)
• Stern, L. & Sturdivant, F. (1987). “Customer-Driven Distribution Systems.” HBS Reprint #87411 (Study.net)

• Optional: Nunes, P. F. & Cespedes, F. (2003). “The Customer has Escaped” Harvard Business Review, Nov. (ROG113) (Study.Net)
• Optional: “Consumers will drop companies that don’t use chosen channels” (BSC)
• Optional: “Distributor Services Help Keep Customers Afloat” (BSC) •
3. 09/01 Th • Describe how marketing strategy translates to retail execution.
• Speaker: Angela Hungate, P&G • Store Checks Assignment Instructions (Bb)
• RtM Project Instructions (Bb)
• “The Science of Shopping: The Way the Brain Buys”. The Economist. (2008). http://www.economist.com/node/12792420 • Review course materials to date. Electronically submit two questions that you could ask the speaker. 4. 09/06 T • Compare the pros/cons of direct vs. indirect RtM
• Compare the roles of different types of intermediaries.
• Describe the business expectations of different types of intermediaries
• Calculate intermediary margins
• Describe incentive programs used with intermediaries.
• RtM Assignment connections – Should the firm go with direct or indirect? • Anderson, R.E., Mehta, R., & Dubinsky, A.J. (2003). “Will the real channel manager please stand up?” Business Horizons, 01/15/03. (BSC)
• Kesmodel, D. (2008). “Beer Distributors Want More than One Best Bud.” Wall Street Journal, 02/06/08 (Study.Net)
• Bell, D. & Dreze, X. (2002). “Changing the Channel: A better way to do trade promotions.” MIT Sloan Management Review. (BSC)

• Optional: “ SAP Channel Chief opens up on 2010 Plans” http://www.channelinsider.com/c/a/Spotlight/SAP-Channel-Chief-Opens-Up-on-2010-Plans-475940/ (Feb. 8, 2010) • Send an email to Kate with:
• Team name
• Team members
• Cell phone numbers
• Product choice/options
• Product
•
5. 09/08 Th • Discuss key findings/issues raised in store check assignment.
• Team Work Time: RtM Assignment • Review from Session 2: Dolan, R.J. (2000). “Going to Market” HBS Note #9-599-078. (Study.net)
• Review from Session 2: Stern, L. & Sturdivant, F. (1987). “Customer-Driven Distribution Systems.” HBS Reprint #87411 (Study.net)
• Review: RtM Assignment Instructions (Bb) • Store Check Assignment due electronically by 9:30 a.m. with correct file name on attachment (Classtime_LastName_First_Store Checks)
• Workplan for RtM Assignment due tonight. Final Product Choice, if changed.

6. 09/13 T • Analyze the tradeoffs between intensive, selective, and exclusive distribution coverage
• Describe the process and criteria for finding/evaluating/selecting intermediaries
• RtM Assignment connections – what How many and which intermediaries might make sense for your project? • Sharma, A. & Mehrota, A. (2007). “Choosing an optimal channel mix in Multichannel environments.” Industrial Marketing Management, 36. (BSC)
• Balzer, G. (2003). Avoiding the Top 10 Mistakes with Distributor Agreements. http://www.expertlaw.com/library/marketing/distributor_mistakes.html
• Handout - Intermediaries that can perform flows (Bb-Sess. 3)
• Handout - Criteria for choosing channel partners (Bb-Sess. 3)

• Optional: Coelho, F. & Easingwood, C. (2003). “Multiple channel structures in financial services.” Journal of Financial Services Marketing. (BSC)

7. 09/15 Th • Describe key areas of non-compliance
• Describe 5 sources of channel power.
• Describe 6 strategies for converting power into influence.
• Explain the value of channel conflict
• Describe the major sources of channel conflict.
• Describe approaches to assessing and managing channel conflict
• Describe incentive programs used with intermediaries • Bucklin, C., et al. (1997). “Channel Conflict: When is it Dangerous?” The McKinsey Quarterly, 3. (BSC)
• Webb, I. (2002) “Managing Channels of Distribution in the Age of Electronic Commerce.” Industrial Marketing Management, 31. (BSC)
• Cui, T., Raju, J., and Zhang, J. (2007). “Fairness and Channel Coordination”. http://www.carlsonschool.umn.edu/assets/99631.pdf. (Read Introduction and Conclusion)

8. 09/20 T • Discuss RtM project research process and progress
• ½ Team Work Time – 2nd half • •
9. 09/22 Th • Examine how channel structures evolve over time. • Michael, D. (2007). “The Sales and Distribution Revolution.” (BSC)
• Brugen, G., Antia, K., Jap, S. , Reinartz, W., & Pallas, F. (2011). “Managing Marketing Channel Multiplicity”.http://www.scribd.com/doc/50634632/Managing-Marketing-Channel-Multiplicity-Gerrit-H-Van-Bruggen-Kersi-D-Antia-S
• “Insights into Distribution Channel Innovation in the Retail Banking Sector: Customer Focus as a Key Driver” (BSC)
• “Principal Restructures Distribution” (BSC)
• “Restocking the Snack Machine” (Study.Net)
• “Flipping Friends into Customers”, BloombergBusinessWeek, Feb., 2011. http://jvrufino.posterous.com/zinio-reader-asos-cozies-up-to-facebook-bloom

• Optional: Kumar, N. (2006). “From Declining to Growing Distribution Channels.” Excerpted from Marketing as Strategy: Understanding the CEO’s Agenda for Driving Growth and Innovation. (Study.Net)

10. 09/27 T • Describe the impact of gray markets on RtM strategies.
• Describe strategies for combating gray market activities
• Describe sales managers’ perceptions of gray market activities and strategies to address them.
• Describe approaches to design RtM for international expansion • Thomas, A.R., Wilkinson, T.J. (2005). “It’s the distribution, stupid!” Business Horizons, 48, 125-134 (BSC – Follow the links to PDF)
• Myers, M. & Griffith, D. (1999). “Strategies for Combating Gray Market Activity”. Business Horizons, Nov-Dec. (BSC) •
11. 09/29 Th • Making distribution and pricing decisions in a start up.
• Speaker: Mason Arnold, Founder, Greenling • Hight, M. (2008). “Organics at your doorstep.” Austin American Statesman, 04/16/08 (Study.Net)
• http://www.greenling.com/
• Read his bio on the company website and check out his blog. The link is at the bottom of his bio page in the “About Us” page. • Review company website and course materials to date, electronically submit two questions that you could ask the speaker.
12. 10/04 T • Discuss recommendations for RtM Strategy • RtM Assignment Presentations Note that all RtM Assignment presentations are due by 9:30 a.m. on 10/04.

13. 10/06 Th • Discuss recommendations for RtM Strategy • RtM Assignment Presentations
14. 10/11 T • Review key concepts from the RtM portion of the course
• Recognize the structure for the Pricing portion of the course.
• Conduct pricing-related contribution analysis.
• Analyze BE sales levels for changes in price, variable costs and incremental fixed costs. • “Principles of Pricing” (2005). HBS # 9-506-021 (Study.Net)
• Smith, G. & Nagle, T. (1994). “Financial Analysis for Profit Driven Pricing.” Sloan Management Review. (BSC) NOTE: Tables 4-5 are posted in Bb in a spreadsheet showing additional columns for clarity. • Submit answers to Financial Analysis Problem Set located in BB→Course Documents→ Session 14.

15. 10/13 Th • Analyze BE sales levels for changes in price, variable costs and incremental fixed costs.
• Explain the relationship between unit contribution, total contribution, unit fixed costs, and total fixed costs.
• Explain the concept of relevant costs in pricing decisions.
• Describe the implications of competitor response in pricing decisions.
• Recognize the importance of focusing on the incremental value of price changes. • Beauregard Textile Company HBS # 9-191-058 (Study.Net) • All students read and think about answers to Beauregard study questions (posted in Bb→Course Documents→Case Study Materials). No submission is required. Note that there are some errors in Exhibit 2. There is a replacement for Exhibit 2 posted with the study questions in Bb.

16. 10/18 T • Describe psychological factors in pricing
• Calculate price elasticity and explain the relationship to price sensitivity.
• Develop pricing strategies/tactics to take psychological factors into account and address different types of price sensitivity. • Gourville, J. (2002). “Note on Behavioral Pricing.” HBS # 9-599-114. (Study.Net)
• Gourville, J. & Soman, D. (2002). “Pricing and the Psychology of Consumption”, Harvard Business Review, Sept. (Study.Net)

•
17. 10/20 Th • Explain different approaches to determine what a product or service is worth to a customer. • Anderson, J & Narus, J. (1998), “Business Marketing: Understand What Customers Value” (1998) Harvard Business Review (Study.Net)
• “Changing the Formula: Seeking Perfect Prices, CEO Tears up the Rules” (3/27/07 – wsj.online) (Study.Net)

• Optional: Hanlon, D. & Lucry, D. (2002). “The role of pricing research in assessing the commercial potential of new drugs in development.” International Journal of Marketing Research, 44(4). (BSC) • 18. 10/25 T • Describe the process of setting a price.
• Discuss the use of pricing objectives when setting pricing strategies.
• Explain the pros/cons of four different price setting methods.
• Explain different types of pricing structures.
• Explain the concept of optimal price. • Hinterhuber, A. 2004. Towards value-based pricing – An integrative framework for decision making. Industrial Marketing Management, 33, 765-778. (BSC)
• Avionitis, G.J., Indounas, K.A., & Gounaris, S.P. (2005). “Pricing Objectives over the Service Life Cycle”, European Journal of Marketing, 39 (5/6) 696-714. (BSC)
• Duke, C. (1994). “Matching Appropriate Pricing Strategy with Markets and Objectives.” Journal of Product and Brand Management. 3(2). (BSC)
• Marn, M., Roegner, E. & Zawada, C. (2003). “Pricing New Products”. https://www.mckinseyquarterly.com/Marketing/Pricing/Pricing_new_products_1329

• Optional: Sotgiu, F. & Ancarani, F. (2004). “Exploiting the opportunities of Internet and multi-channel pricing: an exploratory research.” Journal of Product and Brand Management, 13(2), 125-136. (BSC – follow the links)
• Optional: Shankar, V. & Bolton, R. (2004). An empirical analysis of determinants of retailer pricing strategy. Marketing Science, 23(1), 28-49. (BSC)

19. 10/27 Th • Analyze different product pricing approaches and recommend a price.
• Evaluate product packaging alternatives for fit with consumer data and possible pricing strategies.
• Explore the complexity of making product pricing and packaging decisions for a new product when demand and consumer behavior are uncertain.
• Examine methods for forecasting demand of a new product and estimating profitability. • CASE: Metabical HBS # 4183(Study.Net) • All students submit case brief

• Get/load Stat Tools into laptops – (Note that your own StatTools expired on 08/31. However, you can re-download it at www.mccombs.utexas.edu/services/cbacc/coe. It is free.)
• Also, if you don’t have Excel Solver, be sure to install the Add-In. See “Help” in Excel.

20. 11/01 T • Use StatTools and Solver in Excel to:
− Estimate a demand model
− Determine price elasticities
− Incorporate the actions of a competitor
− Estimate optimal price
• Explain the purpose behind using Semi-Log and Log-Log models when estimating a demand model. • Mathematical Functions: The Natural Log and the Exponential (Bb – Session 24) • Download OJ Data Set from Bb.
• Bring laptops to class.
21. 11/03 Th • Define “price discrimination”.
• Describe different types of price discrimination (price customization).
• Describe the benefits and the implementation challenges of price customization.
• Explain the basic concepts behind revenue management (yield management)
• Describe the concept of dynamic pricing • Dhebar, A. (1993). “Price Discrimination” HBS # 9-191-105 (Study.net)
• Cross, R.G. (1997). “The Core Concepts of Revenue Management”, Ch. 3 Revenue Management, New York: Broadway Books. (Study.Net)

• Optional: Levin, Y. & McGill, J. (2009). “Introduction to the special issue on revenue management and dynamic pricing.” European Journal of Operational Research., 197(3). (BSC – follow the links) • Homework due - Demand estimation data analysis exercise and discussion question due by start of class.

• SIGN UP/START UNIVERSAL RENTAL CAR PRACTICE GAMES from Friday, Nov. 4 through Wednesday, Nov. 9.

22. 11/08 T • Explain approaches to manage price competition.
• Describe the importance of anticipating competitive actions in the price setting process.
• Describe the dynamics of price competition
• Explain how pricing decisions will affect future competitive behavior and profitability • Nagle, T.T. (1993). “Managing Price Competition”. Marketing Management, Vol. 2(1), pp. 36-45. (BSC)
• “How to Manage an Aggressive Competitor” (2002) Business Horizons, Cressman & Nagle (BSC) • Universal Rental Car ‘Practice Round’ available until Friday, 11/09, end of day. ‘Official Round opens on Saturday, Nov. 10. Write up for Official Round is due on Thursday, Nov. 15 at 8:00 a.m. See instructions and study questions on Bb.
23. 11/10 Th • Describe legal issues in pricing and channels – Christopher Meakin. • “Legal Restrictions on Marketing Management” (1993). HBS Note # 9-588-009. (Study.Net) • Review course materials and readings and electronically submit two questions that you could ask the speaker.

24. 11/15 T • Universal Car Rental – Round 1
• Gain experience in setting prices and analyzing outcomes.
• Examine the implications of price sensitivity/ elasticity in different market segments and geographic regions.
• Manage inventory through asset shifts and pricing
• Examine the implications of competitive pricing actions on marketing and financial outcomes. • Complete the simulation and submit answers to the questions posted in BB→Course Documents→Universal Rental Car

25. 11/17 Th • Explain factors that are included in socially responsible pricing - Quiz • Vachani, S. & Smith, N.S. (2004). “Socially Responsible Pricing.” California Management Review, 47(1), Fall. (BSC)
• “In the Game of Business, Playing Fair Can Actually Lead to Greater Profits:” Profits: Knowledge@Wharton http://knowledge.wharton.upenn.edu/article.cfm?articleid=1916 • Prepare for QUIZ on Socially Responsible Pricing.
.
26. 11/22 T • Examine the interactive nature of the elements of the marketing mix (i.e., the impact of pricing and branding policy on the incentives of channel partners).
• Evaluate different approaches to pricing, including value pricing, competitive parity pricing, and customer indifference pricing (cannibalization).
• Describe the tradeoffs in new-product marketing between an ideal strategy and what is actually feasible and affordable. • CASE: Soren Chemical, HBS #4188 (Study.Net) • All students submit case brief

THANKSGIVING

27. 11/29 T • Define “Pricing Science”
• Describe the processes used to develop optimal price in B2B settings.
• Appreciate the underlying complexities of developing price optimization software.
• View the steps and screens in a price optimization software product. • Hossam Zaki - Zilliant • Review course materials and the website (www.Zilliant.com) and electronically submit two questions that you could ask the speaker.

28. 12/01 Th • Review concepts from the course.