Fall+2008+Section+07-PS+Week+1

=Class Discussion For Week 1=

1. The purpose of the class

 * Key Competencies that our course is designed to help each of us improve on**
 * 1) Marketing Knowledge
 * 2) Managerial Practice
 * 3) Decision Making
 * 4) Personal Communication
 * 5) Ethical Sensitivity
 * 6) Team Participation
 * 7) Social Responsibility
 * 8) Social Planning
 * 9) Strategic Planning
 * 10) Organizational Integration
 * 11) Learning While also Having Fun!!![[image:file:moz-screenshot-2.jpg]]

2. The Syllabus Highlights
During the syllabus discussion, Paul mentioned [|Google Analytics]. This free utility analyzes website traffic and helps businesses evaluate and improve the effectiveness of marketing on the web. [|WebTrends], a local Portland company, offers similar software and services.

3. Course wiki, written case assignments, social network
Paul emphasized that Case assignments are of the highest priority, please make sue you have these read prior to class

[|Red Letter Designs: What is MARKETING?]

 * Transactional Marketing**

//Third assumption -// It is rather easy to replace lost customers with new ones.
Two Levels of Marketing: Marketing is understanding that marketing operates on 2 different levels. **//Operational Marketing//** — Operational Marketing executes marketing functions to attract and keep customers and to maximize the value derived from them.This includes the determination of the marketing mix, advertising execution etc...
 * //Strategic Marketing//** — Strategic Marketing attempts to determine how an organization competed against its competition in a market place. In particular, it aims at generating a competitive advantage relative to its competition.When Jack Trout says that marketing is 'the war between competitors' and 'the conflict between companies' what he is really doing is defining marketing at the business level.

5 Analyzing cases visually. Paul introduced the concepts and referred us to -
A couple of book suggestions from Paul: [|The Black Swan: The Impact of the Highly Improbable by Nassim Nicholas Taleb] [|A Whole New Mind by Daniel H. Pink]

Another book of interest and one that discusses the evolution of large group interaction and how that togetherness is challenging business assumptions [|Wikinomics]

====//[|The Back of the Napkin: Solving Problems and Selling Ideas with Pictures]//====

See what critics are saying about this book:

“The premise behind Roam's book is simple: anybody with a pen and a scrap of paper can use visual thinking to work through complex business ideas. Management consultant and lecturer Roam begins with a “watershed moment”: asked, at the last minute, to give a talk to top government officials, he sketched a diagram on a napkin. The clarity and power of that image allowed him to communicate directly with his audience. From this starting point, Roam has developed a remarkably comprehensive system of ideas. Everything in the book is broken down into steps, providing the reader with “tools and rules” to facilitate picture making. There are the four steps of visual thinking, the six ways of seeing and the “SQVID”– a clumsy acronym for a “full brain visual work out” designed to focus ideas. Roam occasionally overcomplicates; an extended case study takes up a full third of the book and contains an overload of images that belie the book's central message of simplicity. Nonetheless, for forward-thinking management types, there is enough content in these pages to drive many a brainstorming session. Illus.” —//Publisher’s Weekly//

“As painful as it is for any writer to admit, a picture *is* sometimes worth a thousand words. That's why I learned so much from this book. With style and wit, Dan Roam has provided a smart, practical primer on the power of visual thinking.” —Daniel H. Pink, author of //A Whole New Mind//

“Inspiring! It teaches you a new way of thinking in a few hours -- what more could you ask from a book?” —Dan Heath, author of //Made to Stick//

“This book is a must read for managers and business leaders. Visual thinking frees your mind to solve problems in unique and effective ways.” —Temple Grandin, author of //Thinking in Pictures//

“If you observe the way people read or listen to things in the early 21st century, you realize that there aren't many of us left with a linear attention span. Visual information is much more interesting than verbal information. So if you want to make a point, do it with images, pictures or graphics. . . . Dan Roam is the first visual consultant for businesses that I've worked with. His approach is faster for the customer. And the message sticks.” —Roger Black, Media design leader, Author of //Websites That Work//

“Simplicity. This is Dan Roam's message in The Back Of The Napkin. We all dread business meetings with their mountains of documents and the endless bulleted power points. Roam cuts through all that to demonstrate how the use of simple drawings -- executed while the audience watches -- communicate infinitely better than those complex presentations. Is a picture truly worth a thousand words? Having told us how to communicate with pictures, Roam rounds out his message by explaining that “We don't show an insight-inspiring picture because it saves a thousand words; we show it because it elicits the thousand words that make the greatest difference.” And that is communication that works.” —Bill Yenne, author of //Guinness: The 250 Year Quest for the Perfect Pint//

Dan Roam's book //The Back of the Napkin// describes a simplified method of conveying complex and challenging business problems or situations. Using a napkin rather than a piece of paper is a psychologically important element because it can be easily disposed. We are able to draw a silly picture without the psychological pressure of using a clean piece of paper. If you go into a classroom of small children and ask them to draw anything, they will jump at the chance, but if you go into a sixth grade class, they will claim they cannot draw. We become more self-conscious as we grow older.

Compressing and focusing ideas into visual concepts simplifies large and complex problems into the most important elements. Mr. Roam proposes that we innately understand and remember pictures better than words and that all we need to know how to draw are a triangle, square, circle and a stick figure he suggested that in order to analyze cases visually. For example, Mr. Roam suggests changing an elevator pitch into a picture. As the listener moves through the process of drawing a picture, he or she may ask more questions and become more engaged about the individual's job. The brain will also remember the images associated with the person's job description. Alternatively, the words of an elevator pitch can be misinterpreted and easily forgotten.

[|Some highlights of this presentation: Web 2.0 and Management] > - ‘black pens’ (start to draw right away), ‘yellow pens’ (drawing comments on drawings of others), and ‘red pens’ (do not want to draw; but often turn out to have the best ideas. You have to challenge the ‘red pens’ to start drawing). > - what, where, how much, when, how, why > - what: portrait representing a person or object, where: map, how much: chart, when: timeline, how: flowchart,- why: multi-variable plot
 * Who can use this: anybody!. Dan classifies people into three categories:
 * Core idea: reduce complexity of a problem by slicing it into 6 slices: the 6 ways we are seeing:
 * Use the corresponding drawing:
 * Talking while drawing leads to better understanding of a problem
 * Dan gives examples of his work with Microsoft
 * Dan uses a drawing to give an explanation of the strategy behind the Yahoo takeover over by Microsoft

More resources on Visual Thinking:
 * Another great resource on Visual understanding - also look at [|http://www.gapminder.org]
 * Earlier [|post, containing some presentations explaining the concept] in more detail



we watched a video clip of [|Dan Roam] speaking to [|Google] employees about the idea of analyzing issues visually. [|Dan's video clip]

Paul told us about the

6 We tackled the [|Xerox] case.
"__Xerox Corp.: The Customer Satisfaction Program__" (Publication Date: Jan 10, 1991; Author(s): Melvyn A.J. Menezes, Jon D. Serbin) in teams by utilizing the tools described by [|Dan Roam]. We tried to visually analyze the case with pictures. It led to some hilarity, much discussion and lots of learning



On a side note, we learned that our professor is quite the entrepreneur

- see the rest of the pictures here [|http://www.flickr.com/phot][|os/30397074@N02/sets/72157]  [|607228307714/] After thoughtful, yet visual analysis, the advice to Xerox management regarding the guarantee options ranged, and generally encompassed all options.

And some new options that were not presented in the case, one of which was to "Make it right the first time." Rather than diverting large amounts of funds and resources to determining what type of guarantee or customer service gimmick to deliver to the public, they should take those funds and resources and apply them into innovation and making a great product.

It should also be explored, having the best product AND offering a guarantee. As part of marketing, it's important to market similar products in similar ways. I'd suggest marketing the Xerox product as best in the business, as well as offer a guarantee so customers see that even if they were to get a lemon Xerox product, their satisfaction is of upmost importance. Offering the guarantee satisfies two things: 1- If a customer knows nothing about Xerox, then the guarantee is something that will keep Xerox an equal with the other products offering guarantees, and 2- A guarantee doesn't have to be built around the functionality of the product, but around customer satisfaction.

The **Elizabeth, Jared, Stephanie and Teal Team** presented the point of view that Xerox was a company that focused more on diversifying their product line than satisfying the needs of the customers they already had. As they refocused on the customer in the 90's they took into consideration a product/service guarantee. Our recommendation: Offer a guarantee that allows Xerox to replace or fix parts at the customer’s request. We don’t recommend a money back guarantee because that would drive customers to Xerox's direct competitors.

**Xerox Total Satisfaction** [|Guarantee] 

Chapter 4 of Roger J. Best's [|Market Based Management] describes the key concepts illustrated by the Xerox case specifically, "The Customer Experience and Value Creation". The **Jaime, Hayley, Jilian and Ben Team** illustrated Best's advice, that by understanding the customer needs a company takes the first step in developing strong market orientation. This group identified the key segments important to Xerox's business and the needs of those particular clients. A company that can fully understand the needs of their target clients as well as develope and implement strategies to fulfill those needs will have a better chances of attracting, satisfy and retaining their customers.

This is such an important concept (as illustrated above by Jaime, Hayley, Jilian & Ben). The key here is not how much money is spent on R & D, or how strongly an executive feels about certian policies, but how accurately a company defines the needs/requirements of current and future customers. There have been times in my own company where we spent millions of dollars developing technologies only to discover that our customers had no use for our new products. Of course, performing extensive market reseach surveys can prove useful. However, from my perspective, obtaining frank & direct feedback from customers (such as USMG of Xerox tried to do) is vital when determining future product mix and development stratagies. Interestingly, Xerox has developed a quick and easy way for customers (and potential users) to provide feedback. http://www.xerox-customer-survey.com/page=site.removal_survey_1/set_lang=en/step1.html
 * BINGO!!!**

The **Tina, Erik, Trish and Jenica Team** proposed that the solution to Xerox's dilemma was to move from their single solution emphasis of service plans to product development and innovation. Offering customers a reliable, and simple to operate product, will reduce the number and duration of service calls. The best case scenario is to have customers that never need to contact the customer service center. The following article //"Products vs. Services"// at [|Automation.com] lends credence to our view point. Read the [|full article] by [|Jim Pinto]. Jim is an industry analyst and commentator, writer, technology entrepreneur, investor and futurist.
 * Below are a few interesting excerpts from "Products vs. Services":**
 * Providing Productivity Tools:** With the recent worldwide decline in the automation business, many major suppliers are trying to generate growth by becoming "total solution providers", rather than just product manufacturers. The total solution includes sales, distribution, engineering, systems integration, service. In my opinion, while this strategy may generate additional short-term revenue, in the long haul it is a business mistake.


 * Conventional Controls are Becoming Commodities:** A few decades ago, industrial automation involved a lot of proprietary knowledge, which generated significant value for the purveyors of that knowledge. Industrial automation products were an essential and proprietary ingredient in factories and process plants.


 * Proprietary vs. Commodity:** To remain "proprietary" in this day and age, developments must progress in months, rather than years, or value degenerates quickly.


 * Products vs. Services:** Recognizing their inability to develop truly proprietary products in the fast-moving global environment, many industrial automation product manufacturers are migrating towards the supply of services to generate growth. This is a shortsighted strategy. "Services" are knowledge intensive (people and labor) and typically local (on-site systems design, integration and startup). This type of business is usually subject to intense local competition and cannot easily be scaled up for consistent revenue growth and profit margins.


 * Sales Channels – Direct vs. Distribution:** In a global environment, the best high-tech distributors they work together to coordinate product purchasing in one geographical area with installation and service in another. The price structures accommodate OEM accounts and systems integrators and they are equally effective with servicing small users and large end-user projects.


 * The Role of the Manufacturer:** In my opinion, migrating to the supply of services and integration is just an excuse for the inability of a product manufacturer to fulfill its primary role.

7. Class, I think the [|VIA Strengths] survey deserves mentioning.
The survey results provided opportunity for consideration of our own strengths. Once we have a better understanding of our personal strengths, we can more effectively apply them. Thus, we can have a greater impact on our environment and help to influence our personal direction as well as the direction of our organizations.

Of the 24 character strengths, the top 5 were placed on the [|GSMPR 604 Willamette Social Network] where we are able to navigate common strengths with classmates by clicking on the links. This may be a tool to find group members or ways to discover others with strengths in areas other than our own.


 * __Creativity (originality, ingenuity): __Thinking of novel and productive ways to conceptualize and do things.
 * __Curiosity (interest, novelty-seeking, openness to experience): __ Taking an interest in ongoing experiences for its own sake; exploring and discovering
 * __Open-mindedness (judgment, critical thinking):__ Thinking things through and examining them from all sides; weighing all evidence fairly.
 * __Love of learning:__ Mastering new skills, topics, and bodies of knowledge, whether on one’s own or formally.
 * __Perspective (wisdom):__ Being able to provide wise counsel to others; having ways of looking at the world that make sense to oneself and to other people
 * __Bravery (valor):__ Not shrinking from threat, challenge, difficulty, or pain; acting on convictions even if unpopular.
 * __Persistence (perseverance, industriousness):__ Finishing what one starts; persisting in a course of action in spite of obstacles.
 * __Integrity (authenticity, honesty)__: Presenting oneself in a genuine way; taking responsibility for one’s feeling and actions
 * __Vitality (zest, enthusiasm, vigor, energy):__ Approaching life with excitement and energy; feeling alive and activated
 * __Love:__ Valuing close relations with others, in particular those in which sharing and caring are reciprocated.
 * __Kindness (generosity, nurturing, care, compassion, altruistic love, “niceness”):__ Doing favors and good deeds for others.
 * __Social intelligence (emotional intelligence, personal intelligence):__ Being aware of the motives and feelings of other people and oneself.
 * __Citizenship (social responsibility, loyalty, teamwork):__ Working well as a member of a group or team; being loyal to the group.
 * __Fairness:__ Treating all people the same according to notions of fairness and justice; not letting personal feelings bias decisions about others.
 * __Leadership__: Encouraging a group of which one is a member to get things done and at the same maintain time good relations within the group.
 * __Forgiveness and mercy:__ Forgiving those who have done wrong; accepting the shortcomings of others; giving people a second chance; not being vengeful
 * __Humility / Modesty:__ Letting one’s accomplishments speak for themselves; not regarding oneself as more special than one is.
 * __Prudence:__ Being careful about one’s choices; not taking undue risks; not saying or doing things that might later be regretted.
 * __Self-regulation (self-control):__ Regulating what one feels and does; being disciplined; controlling one’s appetites and emotions.
 * __Appreciation of beauty and excellence (awe, wonder, elevation):__ Appreciating beauty, excellence, and/or skilled performance in various domains of life.
 * __Gratitude:__ Being aware of and thankful of the good things that happen; taking time to express thanks.
 * __Hope (optimism, future-mindedness, future orientation):__ Expecting the best in the future and working to achieve it.
 * __Humor (playfulness):__ Liking to laugh and tease; bringing smiles to other people; seeing the light side.
 * __Spirituality (religiousness, faith, purpose):__ Having coherent beliefs about the higher purpose, the meaning of life, and the meaning of the universe

For a brief critique of the book "Authentic Happiness" (which is the book to read to interpret the via strengths) http://www.timlebon.com/BeyondAuthenticHappiness.html

For praise of the same http://www.happinesshypothesis.com/reviews.html

Some questions to think about with the Via strengths: Are the "strengths" always useful in the business world? Can these strengths be likened to a specific skill set that is necessary for a particular job or career? Or are they just useful for a happy life? Furthermore, what is Authentic Happiness? What makes it Authentic? Is that better?

Another survey covered in class was the "Which color is your pen" self-assessment. There are three pen colors, each representing how someone may approach using drawings as a way of communicating. One color is Black. About 25% of people are the pen color black, which represents/means "Hand me the pen." Another color is Yellow. About 50% of people are the pen color yellow, which means "I can't draw but..." The third color is Red. 25% of people are the pen color red, meaning "I'm not visual." It's interesting to point out that nearly everyone in our class was a Yellow.

Market-Based Management: Strategies for Growing Customer Value and Profitability by Roger J. Best
Chapter 1: Customer Focus and Managing Customer Loyalty
 * "Marketing isn't somebody's responsibility; marketing is everybody's responsibility." - Jack Welch
 * "Satisfaction is not good enough. Completely satisfied - that's a big deal. A completley satisfied customer is at least three times more likely to return than one who's just satisfied." - Andrew Taylor
 * Finding and maintaining a customer focus (high levels of customer satisfaction) is a key to profitability because retaining existing customers is much less time consuming and costly than trying to attract new customers. However, a repeat customers are not always loyal.
 * Loyalty is measured in terms of satisfaction, retention, and recommendations. Customers fall into four profit categories: 1) Top Performers (advocates, loyalists); 2) High Potentials (big spenders, underachievers); 3) New Opportunities (win-back customers, new potentials); and 4) Non-profits (misfits, spinners).
 * The more managers understand marketing, the more likely they are to focus on customers.

Chapter 2: Marketing Performance and Marketing Profitability
 * "The reason for marketing's low level of credibility is its lack of disciplined financial-return measures for assessing the value of its contribution to the enterprise." - P. Hyde, et.al.
 * Market-based businesses: 1) track market-based measures of marketing performance; 2) measure marketing profits by product, market, or both; and 3) organize around markets rather than products.
 * These businesses also create external market metrics including process metrics. They increase net marketing contribution to increase profit by earmarking overhead costs after NMC has been determined.
 * Typical marketing strategies include:increase average selling price, increase profit margin, grow market demand, increase market share, lower variable cost, improve marketing efficiency, and lower channel costs," (Best). To determine whether a marketing strategy is increasing profits ad revenues, divide the Net Marketing Contribution (NMC) by Sales to get a Marketing Return on Sales (ROS).

Chapter 3: Market Analysis
 * "Marketing is a $450 billion industry, and we are making decisions with less data and discipline that we apply to $100,000 decisions in other aspects of our business." - Chief marketing officer at Procter & Gamble
 * "The tipping point in a product-market occurs when consumption behavior shifts from virtually unnoticed to epidemic-like proportions." - Malcolm Gladwell
 * "...the greatest threat to a business's survival, and a major cause of missed market opportunities is a narrow focus on existing product-markets" (Best). Look to substitutes and adjacent markets for opportunities.
 * "Knowing the maximum number of units that can be consumed by the defined market is of great strategic importance to a business..." (Best).
 * The rate of market growth is determined by customer adoption forces (need, risk, buying, observation, trial) and product adoption forces (awareness, availability, ability to use, benefits, and affordability).
 * Consumers fall into categories based on their entry point into a market: 1) innovators; 2) early adopters; 3) early majority; 4) late majority; and 5) laggards.
 * A successful product cycle follows a fairly consistent pattern where it begins with a negative NMC, gains momentum and volume accelerates until prices and margins decrease, requiring additional marketing expenses. Finally, growth will level out or decrease until it hits market saturation.
 * Market share performance metrics include: 1) product awareness; 2) product attractiveness; 3) price affordable; 4) product availability; and 5) service experience.

Chapter 4: The Customer Experience and Value Creation
 * The entire chapter can be summarized by using the introductory quote by Christopher Meyer, which is: "Only 8 percent of customers describe their experience as superior, yet 80 percent of companies believe the experienc they provide is indeed superior."