SMM course notes

MANAGEMENT DECISION MAKING
Accumulate organizational knowledge
Key concepts
 Explicit knowledge
 Tacit knowledge
 Single-loop learning (adaptive learning)
 Double-loop learning (generative learning)
Learning process
 Information acquisition
o Exploitation
o Exploration
 Information dissemination
o Formal
o Informal
 Information shared interpretation (conflict resolution)
 Information utilization (behavioral change)
o Action oriented
o Knowledge-enhanced
o Affective use
Culture
 Market orientation
 Entrepreneurship
Climate
 Facilitate leadership
 Organic structure
 Decentralized strategic planning
Get help
Marketing management support systems (MMSS)
Marketing problem-solving modes (MPSM)
 Optimizing (MMSS)
 Reasoning
 Analogizing
 Creating
Be responsive
Business cycles (recession)
 Impact on consumer behavior
 Impact on managerial behavior
 Impact on marketing effectiveness
Competition
 Game theory
Implementation intentions
 Goal intentions
 Implementation intentions
Think and decide rationally
 Rational decision making
 Cognitive biases
o Self-interested bias

, o Affect heuristic
o Groupthink
o Saliency bias
o Confirmation bias (dissonance theory)
o Availability bias
o Anchoring bias
o Halo effect
o Sunk cost
o Overconfidence
o Disaster neglect (minimax regret)
o Loss aversion
 Questions that decision makers should ask themselves
 Questions that decision makers should ask the team making recommendations
 Questions focused on evaluating the proposal
INNOVATION
Strategic options
Pioneer vs early follower strategy
 Contingency perspectives (innovator strategy, imitator strategy)
Product vs process innovation
Breakthrough vs incremental innovation
 Innovation typology (newness of technology, customer need fulfillment) (waves of innovation)
Innovation development
Idea generation
 In house R&D development
o Firm size
o Willingness to cannibalize
o Market power
o Organizational culture
 Outsourcing NPD
o Minority equity participation (high technological uncertainty)
o Prior tie selection (high cultural uncertainty)
 Co-developing with consumers
Idea selection
Innovation commercialization
Consumer innovativeness and adoption
 Consumer characteristics
 Innovation characteristics
 Distribution (role of retailers)
Diffusion
 Product life cycle
ONLINE MARKETING STRATEGY
Multi-channel marketing vs omni-channel marketing
Impact of digital on the marketing mix
 Product
o Augmentation of core product with digital services
o Renting products instead of buying
o Products/services becoming digital