Core Curriculum Readings in Marketing cover fundamental concepts, theories, and frameworks in marketing. For classroom use in higher education, this Reading is accompanied by a Teaching Note, test bank, and exhibit slides. This Reading explores how firms can create value for their customers. The goal of any business is to delight customers by understanding its customers' needs and to provide products and services to meet those needs. As a result, it is critical to understand what customers value and how firms can offer products and services by creating different types of value for their customers. The purpose of this Reading is to help students understand customers' perspectives on what they value and why. The Reading describes four types of customer value: economic, functional, experiential/psychological, and social. A Supplemental Reading looks specifically at how to manage customer expectations of services, as distinct from products.
Dopfner had directed Axel Springer to approach this task with a two-stage digital transformation strategy process. Beginning in 2006, the company focused on organic growth and late-stage digital acquisitions. This stage of the strategy process had centered around profitability and the infusion of digitization into the corporate culture. In 2013, the second stage of the strategy process was driven by Dopfner's formulation of the firm's corporate mission to become "The Leading Digital Publisher" and his defining the company's business as its branded content and not its distribution channels. With this new strategy, Axel Springer intended to espouse early-stage investments and entrepreneurship and grow revenue through three business models: paid content, marketing, and classified advertising. As of 2013, Dopfner's two-stage digital transformation strategy had been a stunning success. Axel Springer had more than 12,800 employees, total revenues of $3.9 billion, and EBITDA of $625 million. The company had exceeded the goals it had set for digital media contributions to revenue and EBITDA, achieved reach in 44 countries, and serviced 98 million unique digital visitors worldwide. Looking forward in April 2014, however, it was clear that the future still held many challenges. Dopfner knew that Axel Springer would need to continue to successfully balance digital and traditional media business strategies, further reestablish the firm's identity, and continue to pioneer the cultural transition within the organization.
This note examines the processes of seeking, receiving, and giving advice by drawing on both academic research and the lessons of skilled practitioners. It begins with a discussion of the potential benefits and costs of advice-seeking and advice-giving. The note then defines and distinguishes four related activities: advising, counseling, coaching and mentoring. Next, it describes the primary stages or steps in the advising process; each stage is examined from the perspective of both advice-seekers and advice-givers. The note concludes with recommendations for practice, listing a number of pitfalls to avoid when seeking, receiving, and giving advice as well as several guidelines and best practices.
This case provides a discussion of critical illness insurance from various perspectives. The case first looks at critical illness insurance from both a consumer's and life insurers' perspectives. The case then discusses critical illness insurance's position in a changing healthcare and health insurance environment before considering its relevance in the future.
Core Curriculum Readings in Marketing cover fundamental concepts, theories, and frameworks in marketing. For classroom use in higher education, this Reading is accompanied by a Teaching Note, test bank, and exhibit slides. This Reading introduces two of the integral parts of any marketing strategy: segmentation and targeting. It covers, first, the methods, techniques, and variables with which a business initially uncovers the full range of its potential customers and then distinguishes between them. It then takes up how a company judges the potential of each market segment, selects the segments worth pursuing, and designs marketing programs to serve them. The Reading includes two interactive illustrations. Both drive the students to think more carefully about segmentation and targeting. The first, "Segmenting the Dog Food Market," shows how successfully marketing a product consumed by dogs depends on first understanding and segmenting their owners. The second, "Segmenting the Market for Early Pregnancy Test Devices," shows how the most important category for segmentation is not demographic or geographic, but concerned rather with consumer psychology and motivation. The Reading also includes a six-part video mini-case study on how GE Healthcare developed and applied segmentation for its Imaging Systems business.
This case focuses on different types of client relationships at IDEO, the value of these relationships for IDEO and clients, and the implications for IDEO designers' everyday experience of work. As new types of client work have shifted away from the more classic design projects, there may be accompanying shifts in designers' engagement and motivation. The case illustrates the importance of progress and meaning to IDEO designers, and it poses the questions: Which types of client work keep designers most motivated and engaged at work, and what are the implications for the client relationships IDEO should pursue?
A manufacturer of over 75 grades of styrenic resins — used to make DVD cases, refrigerator trays, packaging materials and auto parts — faces a “transition loss” each time it switches production from one grade to another. A transition loss for each grade arises from the initial 16 metric tons produced, which are sub-standard and unsuitable for usage by customers. To the company, this implies a loss of resources (raw material and production cost) and a disposal fee ($10,000) to remove each sub-standard production.<br><br>The case illustrates a sample of 15 grades for which data on their requirements for machine time usage, raw materials and labour hours are provided, as well as their production cost, selling price and market demand. Some of these grades must also be sold jointly in specific ratios. A newly hired sales executive must present an optimization template that would meet the company’s production constraints and maximize its profitability. Which grades of styrenic resins should be produced? Furthermore, how much of each grade should be produced?
A manufacturer of over 75 grades of styrenic resins - used to make DVD cases, refrigerator trays, packaging materials and auto parts - faces a "transition loss" each time it switches production from one grade to another. A transition loss for each grade arises from the initial 16 metric tons produced, which are sub-standard and unsuitable for usage by customers. To the company, this implies a loss of resources (raw material and production cost) and a disposal fee ($10,000) to remove each sub-standard production. The case illustrates a sample of 15 grades for which data on their requirements for machine time usage, raw materials and labour hours are provided, as well as their production cost, selling price and market demand. Some of these grades must also be sold jointly in specific ratios. A newly hired sales executive must present an optimization template that would meet the company's production constraints and maximize its profitability. Which grades of styrenic resins should be produced? Furthermore, how much of each grade should be produced?
This case follows a day in the life of Captain Denny Flanagan. A United Airlines pilot for nearly a quarter of a century and a former naval aviator, Flanagan has created and championed a campaign to radically change the nature of air travel - putting good customer service at the heart of everything the airline does and reaching back, in some way, to the golden age of air travel. Examples of his service include ordering food for passengers of delayed flights and phoning the parents of unaccompanied minors to reassure them of their children's safety.The success he has achieved is significant for a company that has historically received very poor customer service ratings. It raises questions about whether such exceptional service is good or bad for the organization. How can Flanagan's approach be replicated? Is it possible or even desirable to replicate it?
In March 2007 C. James Prieur, CEO of insurance provider Conseco, was faced with a crisis. The front page of the New York Times featured a story on the grieving family of an elderly woman who had faithfully paid for her Conseco long-term care (LTC) policy, only to find that it would not pay her claims. Her family had to pay for her care (until her recent death), which unfortunately resulted in the loss of the family business. The family was now very publicly pursuing litigation. For a company that depended on thousands of employees, investors, and independent agents who sold the insurance plans, this reputational risk was a serious threat. On top of this immediate crisis, all signs in the industry were pointing to the fact that the LTC business itself was not viable, yet over the years Conseco had acquired a number of LTC insurance providers. Students are asked to analyze not only what Prieur's priorities should be in addressing the immediate crisis but also the risks inherent in the LTC industry and how this might affect Conseco's success as a business moving forward.
In 2006, the leadership team at Merrimack Pharmaceuticals, Inc. had to decide whether to keep its R&D organization in functional departments or restructure it into interdisciplinary teams. This case follows the outcomes of this decision from 2006 to mid-2014, and considers their impact on productivity, accountability, communication, and skill development from the perspectives of employees in Merrimack's R&D organization.
A student in his final year at a management school has been asked by his uncle to suggest an optimal investment portfolio for the reinvestment of his retirement account. His uncle wants to invest only in mutual funds managed by reputed asset management companies that have historically given superior returns. He also wants to limit the risk involved to less than 10 per cent per annum. The student now needs to prepare a portfolio that offers the highest possible return for the risk defined by his uncle.
In January 2001, the chief executive officer (CEO) of Canadian Pacific Limited (CPL) was contemplating the future of his firm. CPL was one of Canada's oldest conglomerates with operations in railways, shipping, natural resources and hotels. Its stock market capitalization of CDN$13.5 billion reflected a conglomerate discount, estimated at 12 to 35 per cent of the value. In order to eliminate this conglomerate discount and maximize shareholder value, the CEO weighed the pros and cons of asset divestitures or spinoffs. Would it make sense to keep some of the related business together to preserve economies of scale and scope and to maintain synergies? What would be the tax implications of each option? There were numerous operational and legal implications to consider. Knowing he had to make a decision quickly, the CEO looked for the option that would unlock the most value for CPL's shareholders.
A student in his final year at a management school has been asked by his uncle to suggest an optimal investment portfolio for the reinvestment of his retirement account. His uncle wants to invest only in mutual funds managed by reputed asset management companies that have historically given superior returns. He also wants to limit the risk involved to less than 10 per cent per annum. The student now needs to prepare a portfolio that offers the highest possible return for the risk defined by his uncle.
In January 2001, the chief executive officer (CEO) of Canadian Pacific Limited (CPL) was contemplating the future of his firm. CPL was one of Canada’s oldest conglomerates with operations in railways, shipping, natural resources and hotels. Its stock market capitalization of CDN$13.5 billion reflected a conglomerate discount, estimated at 12 to 35 per cent of the value. In order to eliminate this conglomerate discount and maximize shareholder value, the CEO weighed the pros and cons of asset divestitures or spinoffs. Would it make sense to keep some of the related business together to preserve economies of scale and scope and to maintain synergies? What would be the tax implications of each option? There were numerous operational and legal implications to consider. Knowing he had to make a decision quickly, the CEO looked for the option that would unlock the most value for CPL’s shareholders.
By 2009, since the introduction of liberal economic policies by the government of India in 1991, many Indian companies manufacturing leather cloth were closing down due to cheap imports from China and Taiwan. There had been no new investment or expansion in this field at all. In such a business environment and against the advice of many trade analysts, the chief executive officer of Northern India Leather Cloth Manufacturing Company Pvt. Ltd., based in the industrial town of Faridabad, India, decides to beat the competition by investing in new technology. He undertakes a rigorous examination of the company’s strengths, weaknesses, opportunities and threats, as well as listing and prioritizing four associated factors — technological, business, cultural and social, and financial — to identify the potential advantages and challenges associated with new technology absorption. Should he invest or not invest in new technology, and, if so, which of three possible technologies should he choose?<br><br>There is a supplement to this case, <br>9B14M069.