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YORK UNIVERSITY

SCHULICH SCHOOL OF BUSINESS


E-Commerce and High-Technology Marketing: Strategic and Cultural
Considerations (MKTG.6525: Section X)
Winter 2005
(NOTE: This syllabus may be subject to minor changes based on the eventual number of students
and the availability of guest speakers).
Instructor:

Class meets: Wednesdays 7-10 PM


Room: W133
Office Hours: By appointment
E-Mail: dzwick@schulich.yorku.ca

Detlev Zwick, Ph.D.


Office: N324 SSB
Phone: 416-736-2100 x 77199 (o)
416-653-0696(h)

Required Texts:
Course Compendium including 4 Business Cases
COURSE OVERVIEW
(please read carefully to make sure this is the course you want!)
This course will expose students to current theories and concepts of marketing,
the culture of science and technology, new media, and consumer behavior to
make sense of and navigate the shifting, complex, and sometimes treacherous
terrain of Electronic Business (e-business) and High-Technology marketing. In
this course, marketing is understood in two different yet interrelated ways:
1. Marketing as strategic action: Used in the companys pursuit of
competitive advantage, market share, customer ownership, and
profitability.
2. Marketing as system of representation: Used as a cultural mediator
between the firms need for customers and the customers need for
(high)technological solutions.
Thus, marketers must impersonate the role of both the strategist and the
mediator. Both roles require very different knowledge, sensibilities, and thinking.
If all you are interested in are so-called managerial aspects of interactive and
technology marketing, this course may disappoint you. Marketing in the age of
high-technology and e-business can no longer be reduced to some sort of
laundry list of the Four Ps. For marketers to operate successfully in the 21st
century, a sound and holistic feel for the game that includes, yet goes beyond
strategic axioms of the how to kind, is needed. Traditional text book concepts
and case study wisdom are neither obsolete nor sufficient. The realities of todays
complex and competitive marketplace requires marketing students to expand on
them and to acquire an often overlooked theoretical expertise of culture, society,
and technology that promotes original, even radical, thinking. Hence, course
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material, ranging from cases, readings, movies, and advertising, has been put
together to provide students with both a sound strategic foundation and a rich
understanding of the social, historical, and cultural context of a technologyintensive marketplace.
Consequently, make sure you understand that in some respects this is not your
typical MBA course!! Its interdisciplinary orientation to marketing and technology,
not to be found in any other business school in the country, demands a certain
willingness to think beyond the expectation of traditional, case-oriented, and
purely managerial marketing applications and to engage in philosophical
discussions. It is a highly innovative course because it combines knowledge,
theories, and concepts from many different fields, traditions, and scholarly
directions. As a result, however, students will be uniquely equipped with tools and
concepts that will allow them to make sense of an increasingly complex and
nebulous world of electronic business and high-tech culture.
Finally, we do of course extensively cover unique marketing challenges that arise
in volatile and virtual markets. However, I expect students enrolling into this
course to be well-versed in basic marketing concepts. This is important in order
to go beyond that pre-packaged, standardized, and shelved material almost all of
your MBA peers in other business schools are limited to.
TAKE AWAYS
1) This course presents the strategic themes and issues often associated
with success in interactive and technology marketing and highlights how
these strategic themes and issues differ from the fundamentals of old
economy success. Students will come out of this course with a well
developed toolbox knowledge of interactive and high-tech marketing.
2) This course also illuminates the social, historical, and cultural context in
which marketers act and consumers either consume technology or
consume with (using) technology. Students will take away the capability
to contextualize technology within consumer culture and therefore to
develop a much more refined understanding of what it means to do
marketing of technology and in computer-mediated environments.
COURSE OBJECTIVES

Acquaint students with a fundamental understanding of the marketing


environment and strategies in the Networked Economy.
Confront students with discussions about the cultural, social, and
philosophical implications of an increasingly technological society.
Understand the traditional and new communication/marketing approaches
that create competitive advantage in the Networked Economy.
Provide analytical tools to understand opportunities in unserved or
underserved markets.

Provide a fundamental understanding of the different types and key


components of business models and the role of marketing in the
Networked Economy.
Provide a historically and culturally informed understanding of consumers
strategies to make sense of and adopt high-technology products.
Provide insights on how to implement marketing strategy in the Networked
Economy.
Understand how the emergence of the wireless technology (infrastructure,
devices, content, etc.) will affect marketing strategy, value creation, and
consumer perceptions.

COURSE FORMAT
There will be a mix of lectures, in-class discussions and case presentations in every
class in this course. A typical class (180 minutes) will be divided into two segments:
Segment One (80 minutes) will comprise of a lecture and in-class discussion in
which I present general concepts, theories, and current research and
developments in the e- and high-tech world related to the topic of the week.
Following a 15 minute break, Segment Two (85 minutes) will be devoted to two inclass group presentations and a class discussion of these presentations. For each
class, my goals are (i) to ensure coverage of the assigned theoretical concepts, (ii)
to encourage the application of these concepts to the case at hand, and (iii) to
develop a critical assessment (i.e., the strengths/weaknesses) of the concept. As
the world of interactive and high-tech marketing is rapidly changing and best
practices from yesterday become outdated tomorrow, I believe that one good way
to learn about the idiosyncrasies of the networked economy is through case
studies. Case discussions are never linear and cannot be limited solely to the
topic/concepts that present the focus of the week. Therefore, be prepared to
engage in discussions that go beyond the weekly topic area.
PEDAGOGICAL NOTE: Technology has affected students and professors
expectations of each others work. For example, PowerPoint is now standard for
presentations, written group reports may include tables, figures, and graphs, etc. I
will set up a website for this class. There you will find readings, interesting links, and
downloadable lecture notes. Please be advised that for pedagogical purposes I do
not post my lecture slides before class, but immediately thereafter.
The quality of each class will largely depend on your level of preparation, interest,
and participation in the discussions. Note: You will be required to draw upon the
material covered in the case presentations in both your mid-term and final
examinations.
In an effort to allow you to express your knowledge in different ways, there will be
five (5) components to your final grade.

1. Case (25% of final grade):


The class will be divided into teams of 3 using an in-class lottery in our first
class. Names and ID #s of team members should be provided to the
instructor by Jan. 12. At this time make sure that you know who your
partners are and that you exchanged the requisite contact information. A
lottery system will determine the date on which each team is to present and
these dates will be also released on Jan. 5 (in first class). I will make clear
my expectations with regards to case analysis and presentation at that time.
However, evaluative criteria for the case presentation are provided below. The
presentations will take about 30 minutes and will be of a professional nature.
The write-up will not exceed 10 pages (Times 12, double-space) plus a max.
of 2 appendices.
2. Company Research Project Presentation & Write-up (25% of your
grade).
You will form teams (n=3) and depending on the lottery, you research either a
company of your choice regarding its Internet marketing strategy and efforts
(B2C or B2B) or a high-tech company (i.e., the product consists of hightechnology components, or the process of production is high-tech, or the
explicit marketing-design focus is high-tech even if neither process nor
product is) regarding its marketing approach. For example, you could decide
to analyze the marketing strategy used by Amazon to enter the book market
and then expand on this flagship product into other domains. This discussion
could be framed in relation to what Barnes and Noble has done since they
entered the online book market in 1997 (besides the usual 4 P's, you would
have to talk about such issues like value network creation, customer
interface, value-added technologies, etc.). Or you could look at Microsoft and
look at their project of the smart house and how in the companys vision hightechnology will enter our lives. Or you could look at how kitchens become
futuristic, high-tech spaces, or how WetnOz creates an entirely new market
for pet supplies by making everything look high-tech. Ideally, however, you
would do a study on a local company where you may have access to the
marketing director and other relevant people within the company (or
without such as customers) to provide you with valuable insights. The
assignment is worth 20 points of your grade, divided equally between your
presentation and the accompanying written analysis. For your paper (and also
during your presentation) you will be expected to cite appropriate sources
(primary and secondary!) to back up your analysis. You will be responsible to
assign a set of readings (max. 20 pages) related to your topic for the class to
prepare for your seminar. See the end of the syllabus for more information on
this assignment. The write-up will not exceed 10 pages (Times 12, doublespace) plus a max. of 2 appendices

3. Participation (10 % of your grade).


Participation is important in this class and is not limited to "being present". In
this class, participation can work for or against you! Take this aspect of the
class seriously!
4 . Final Exam (40% of final grade): Date: Apr. 13.
The final is not cumulative and will cover only readings, cases, lectures and
discussions after the mid-term. The final exam will comprise of discussion
questions and (perhaps) a short case analysis.
In-Class Team Case Presentation & Writeup
Company Research Project Presentation & Write-up
Final Exam
Participation
Total

25
25
40
10
100

Course grades are earned according to the following scale:


A+
A
AB+
B
B-

=
=
=
=
=
=

95% and up
87%-94.49%
82%-86.49%
77%-81.49%
72%-76.49%
67%-71.49%

C+
C
CF
0

=
=
=
=
=

62%-66.49%
57%-61.49%
52%-56.49%
35% and below
0

SOME IMPORTANT NOTES REGARDING TEAM WORK


(a)
Half of your final grade is determined by team projects, hardly too much
given that the bulk of a marketing professional's activities involve working in
teams. Teamwork can be very stimulating and productive. Compared to
working independently, the synergistic dynamic that occurs in teams
generates more creativity and productivity. On the flip side however, teams
can get mired in free-riding and politicking. Your challenge, both in this
course, and as a marketing professional, is to learn the skills that ensure that
your team resembles the former rather than the latter.
(b)

Free-riding is a common problem in situations involving team work.


However, this problem is also known to be easily remediable through active
monitoring and intervention. Please document the free-rider behaviour (e.g.
missing meetings, not doing the assigned share of the work) of the individual
concerned and I will do my part in trying to assist the team in resolving the
problem.

STATEMENT OF ACADEMIC HONESTY


It is important to be aware of University policy on this important matter:
Academic honesty is the cornerstone in the development of knowledge. If a
student allows his/her name to stand on group work submitted in a course when in
fact there is essentially no contribution made, then that student is guilty of academic
misconduct.
It is the responsibility of all group members to deal effectively with any group
dynamic problem of this nature in the EARLY STAGES of the difficulty. If the
problem cannot be rectified via intra-group action, then it is the further responsibility
of the group members to bring the problem to the attention of the instructor.
OTHER PERTINENT INFORMATION:
(a)
Late Assignments will be penalized one letter grade per day (including
weekends/holidays).
(b)

Mid-term and final examinations will be deferred in cases of illness, death in


the family, and other such extenuating circumstances. DOCUMENTATION
OF THE CIRCUMSTANCE WILL BE NECESSARY BEFORE THE
DEFERMENT IS GRANTED. Note however that the deferment will be at
the discretion of the instructor.

(c)

Please refer to the University Calendar for regulations regarding plagiarism


and cheating. Violation of these regulations will result either in a failing
grade or in expulsion from the faculty.

Class Schedule
DATE

Jan. 5
Jan. 12

Jan. 19

ACTIVITY
Course Introduction
Startup.com: Observing the New Economy
Success Stories in E-Commerce:
Concepts and Tools for analyzing Ecommerce players.
--------------------The New World of Cyberspace: Economic
and social Implications of working,
consuming, and living in cyberspace.
Marketing in a Connected World: Network
Theory
Branding on the Internet

READINGS

CASE AND RESEARCH


PRESENTATIONS

No readings

Dibbell, J. [online]; Castells,


2001; Dreyfus, 2001,
Bernstein, 1998
Kenny and Marshall, 2000;
Seybold, 2001
Dussart, 2001
Kozinets, 1999

One pager on research


project due!

Jan. 26

Consumer Behavior in a Networked


Marketplace: Of Communities and hybrid
customers?

Feb. 2

Versioning: Product Strategies in the Digital Shapiro and Varian; Rayport Case Team 2
Marketspace
and Sviokla
NTT DoCoMo
The Technology Paradox
Plato: Phaedrus [online];
Research Presentation(s)
Gross; Moriarty and Kosnik

Feb. 9
Feb. 16

Case Team 1
The Sims Online

Case discussion: The Case of the Profitless Harvard Case of Profitless


PC
PC; Wildstrom, 1999

Research Presentation(s)

Fundamentals of High-tech Marketing

Case Discussion

Feb. 23
Mar. 2

Mar. 9
Strategy of High-Tech Marketing Part I
Mar. 16

Mar. 23

Mar. 30
Apr. 6

Meldrum, 1995_____
Case: Virden 1995
Ward et al. 1999

Case Team 3
Thomke and von Hippel, 2002 Charmed Technology

Strategy of High-Tech Marketing Part II

Benkenstein and Bloch, 1994; Case Team 4


Zwick, 2004 [online]
Microsoft: Positioning the
Tablet PC
From Metropolis to Terminator: Cultural,
Timeline of Technology
Research Presentation
Social, and Philosophical Issues of a High- [online]; Faden, 2001;
Tech World.
Goldman, 1989
Design as Innovation in the High-Tech Age: Moon, 2004; Turkle, 2003
Research Presentation
From Technology to High-Technology
Latest Research in Technology ConsumptionNo readings
Review Class

Apr. 13

Room and Time: TBA

CASE ANALYSIS AND PRESENTATION: EVALUATIVE CRITERIA


PROBLEM

A range of issues should be identified


The issues should be prioritised in some fashion, e.g. (i) central problem vs. symptoms; (ii)
immediate problem vs. long-term problem

SITUATION ANALYSIS
Internal Analysis: strengths/weaknesses should be clearly distinguished according to the four
functional areas (Production, Marketing, HR, and Finance) or the 4Ps (Product, Price, Promotion,
Place).
External Analysis: opportunities/threats should be identified in each of the social, technological,
economic, and political (STEP) environments and other environments that are pertinent to the
case.
Resource Identification: The internal analysis and external analysis should be brought together
to identify the salient strengths and weaknesses.
ALTERNATIVES
alternatives should be strategic. That is, they should advance a particular strategic goal (e.g.
differentiation based on price, differentiation based on value) and/or they should be about the
means by which to increase revenue (market penetration, product development, market
development, and diversification).
alternatives should be complete. That is, they should address: (i) the market position of the
company, (ii) its product strategy, (ii) price strategy, (iii) place strategy, and (iv) promotion strategy.
NOTE: reduce price is NOT an alternative. It is a tactic that is part of a larger strategic plan or
alternative.
EVALUATION OF ALTERNATIVES AND RECOMMENDATION
the alternatives should be compared on common criteria such as (i) maximum profit, (ii) ease of
implementation, (iii) consistency with organizational goals, and others you can think of
based on this discussion and referring back to your problem statement, one or some combination
of the alternatives should be recommended.
state a brief contingency plan.
IMPLEMENTATION
KEEP THIS SECTION RELATIVELY SHORT. In my class, this is NOT the most important
exercise of the case. Do include:
details on what is to be done and how it is to be done. DO NOT SIMPLY SAY, "We should
increase advertising," tell me by how much, where you will advertise, how often you will advertise
and so on.
a clear time line for your plan. (e.g. The following 3 activities will be done in the next 1-4 weeks,
the next 3 activities will be done in the next 5-11 weeks and so on). Provide a rationale for this
time line.
Estimates on how much your plan is expected to cost.
PROVIDE THE INSTRUCTOR WITH A SUMMARY COPY OF YOUR POWER-POINT
PRESENTATION SLIDES (3 PER PAGE). THE WRITE-UP IS DUE THE DAY OF YOUR
PRESENTATION.

COMPANY INTERNET STRATEGY RESEARCH ASSIGNMENT


I find it important that you decide as a group on a topic that interests you and that is, of course, related to
the topic of the class (Interactive Marketing). Thus, the field is wide open. You might want to explore new
developments and applications in the wireless world (know as m-commerce) or you may prefer to take a
look at the marketing processes that accompany the move of a traditional brick-and-mortar company into

the electronic marketspace. You may decide to investigate the opportunities and challenges of producing
high-end fiber connections for industrial applications or to analyze the link between marketing and high-tech
as design. Many other projects are possible. It's up to you. The final paper is due the day of your
presentation.
Bibliography
Benkenstein, M. and B. Bloch (1994), "Strategic marketing management in high-tech industries: A
stock-taking," Marketing Intelligence & Planning, 12 (1), 15-21.
Bernstein, Peter L. Are Networks Driving the New Economy. Harvard Business Review.
November-December 1998. pp. 3-7.
Castells, M. (2001), "e-Business and the New Economy," in The Internet Galaxy: Reflections on
the Internet, business, and society. Oxford and New York: Oxford University Press.
Dreyfus, H. L. (2001), "Disembodied telepresence and the remoteness of the real," in On the
Internet. London and New York: Routledge.
Dussart, C. (2001), "Transformative Power of E-Business over Consumer Brands," European
Management Journal, 19 (6), 629-37.
Faden, E. S. (2001), "The Cyberfilm: Hollywood and Computer Technology," Strategies: Journal
of Theory, Culture & Politics, 14 (1), 77 - 90.
Goldman, S. L. (1989), "Images of Technology in Popular Films: Discussion and Filmography,"
Science, Technology, & Human Values, 14 (3), 275-301.
Gross, et al The Technology Paradox Business Week. Mar 6, 95. pp. 76-84.
Kenny, D. and J. F. Marshall (2000), "Contextual marketing: The real business of the Internet,"
Harvard Business Review, 78 (6), 119-125.
Kozinets, R. V. (1999), "E-Tribalized Marketing?: The Strategic Implications of Virtual
Communities of Consumption," European Management Journal, 17 (3), 252-64.
Meldrum, M. J. (1995), "Marketing high-tech products: The emerging themes," European Journal
of Marketing, 29 (10), 45-58.
Moon, Y. (2004), "Don't Just Do Something, Stand There!," Harvard Business Review, 82 (3), 1617.
Moriarty, Rowland T. and Thomas J. Kosnik. High-Tech Marketing: Concepts, Continuity, and
Change Sloan Management Review. Summer 1989. pp. 7-17.
Rayport, J. F. and J. J. Sviokla (1995). "Exploiting the Virtual Value Chain." Harvard Business
Review 73(6): 75-99.
Seybold, P. B. (2001), "Get inside the lives of your customers," Harvard Business Review, 79 (5),
80-89.
Shapiro, Carl and Hal R. Varian. Versioning: The Smart Way to Sell Information HBR.
November-December 1998. pp. 106-114.
Shapiro, Carl and Hal Varian. Chapter 2: Pricing Information Goods. Information Rules. 1999.
Pp. 19-51.

Thomke, S. and E. von Hippel (2002), "Customers as innovators: A new way to create value,"
Harvard Business Review, 80 (4), 74-81.
Turkle, S. (2003), "Technology and Human Vulnerability," Harvard Business Review, 81 (3), 4350.
Virden, T. W. (1995), "Can this High-Tech Product Sell Itself?," Harvard Business Review,
Nov/Dec, 24-29.
Ward, S., L. Light, and J. Goldstine (1999), "What high-tech managers need to know about
brands," Harvard Business Review, 77 (4), 85-95.
Wildstrom, S. Freeware? Whats not to like? Business Week. Jan 11, 1999. p. 26.
Zwick, D. (2004), "Marketing Innovations to Consumers," Innovative Progress, 2 (1), 3-4.

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