Manajemen | Fakultas Ekonomi Universitas Maritim Raja Ali Haji joeb.83.4.214-220
Journal of Education for Business
ISSN: 0883-2323 (Print) 1940-3356 (Online) Journal homepage: http://www.tandfonline.com/loi/vjeb20
Experiential and Cooperative Learning: Using
a Situation Analysis Project in Principles of
Marketing
Caroline Munoz & Ann Huser
To cite this article: Caroline Munoz & Ann Huser (2008) Experiential and Cooperative Learning:
Using a Situation Analysis Project in Principles of Marketing, Journal of Education for Business,
83:4, 214-220, DOI: 10.3200/JOEB.83.4.214-220
To link to this article: http://dx.doi.org/10.3200/JOEB.83.4.214-220
Published online: 07 Aug 2010.
Submit your article to this journal
Article views: 127
View related articles
Citing articles: 11 View citing articles
Full Terms & Conditions of access and use can be found at
http://www.tandfonline.com/action/journalInformation?journalCode=vjeb20
Download by: [Universitas Maritim Raja Ali Haji]
Date: 11 January 2016, At: 23:09
Downloaded by [Universitas Maritim Raja Ali Haji] at 23:09 11 January 2016
ExperientialandCooperativeLearning:
UsingaSituationAnalysisProject
inPrinciplesofMarketing
ANNHUSER
CAROLINEMUNOZ
FAIRLEIGHDICKINSONUNIVERSITY
MADISON,NEWJERSEY
ABSTRACT.Inthisarticle,theauthors
proposeasemester-longexperiential-
learningprojectforintroductorymarketing
students.Theprojectrequiresananalysisof
aproductcategory,competition,andconsumerbasetosupportanewproductproposal.Thepurposeisto(a)putintopracticetheconceptsanddefinitionstaughtin
anintroductorymarketingcourse,(b)create
afoundationfordoinganundergraduate
businessplan,(c)improveresearch,analysis,communication,andteamworkskills,
and(d)provideanopportunityforcreative
thinking.Theauthorsprovideadescription
ofthesituationanalysisprojectandsupplementalpreliminaryassignments.Theyalso
provideanoutcomesassessmentwithcurrentandformercollegestudents.
Keywords:cooperativelearning,experientiallearning,principlesofmarketing,situationanalysis
Copyright©2008HeldrefPublications
214
JournalofEducationforBusiness
T
oday’scollegestudentswanttobe
engaged in their learning experiences.Theyfindone-waylectures,rote
memorization,andregurgitationofisolatedfactsandtermstediousandboring.
Inaddition,thesepassivelearningmethods do not facilitate the critical thinkingandcommunicationskillsnecessary
to be successful in business. Business
managersandmarketersneedtobeable
to navigate through research, analyze
findings, and produce clear reports of
their conclusions. Educators need to
provide opportunities for students to
develop these skills and facilitate content learning by using more dynamic,
engagingteachingtechniques.
Increasingly, marketing educators
are using experiential learning (Smart,
Kelley, & Conant, 1999). Experiential
learning forces students to move away
from passive learning and play a more
activeroleintheireducation.Themarketingeducationliteraturehasproposed
numerous activities, such as games,
cases, computer simulations, servicelearning products, and role playing to
foster experiential learning (Anselmi
& Frankel, 2004; Bobbitt, Inks, Kemp,
& Mayo, 2000; Daly, 2001; Gremler,
Hoffman, Keaveney, & Wright, 2000;
Hamer,2000;Petkus,2000).Inthisarticle,wesupplementtheexistingexperiential techniques by proposing the use
of a demanding, real-world marketing project (i.e., situation analysis) for
students in an introductory marketing
class.We developed this semester-long
project to involve students in cooperativeexperientiallearningandtoenhance
thecourseandbusiness-schoolcurriculum. We required students to conduct
a situation analysis of a category and
propose a new product for this categoryonthebasisoftheirfindingsand
conclusions. To evaluate the project,
we conducted an outcomes assessment
withformerstudents.Inthisarticle,we
demonstrate that the situation analysis
project is a valuable learning exercise
for both marketing and nonmarketing
majors.Theprojectdiffersfromwhatis
currentlybeingofferedinmanymarketingclassesinthatthesituationanalysis
does not concentrate on the marketing
mix (product, price, place, and promotion),butratherontheresearchrelated
to the product category, competition,
and consumers. The project also has
studentsusevaliddataintheiranalysis,
thusprovidingrealisticconclusionsand
recommendations.Last,thedesignand
structure of the project is innovative.
Companies,muchlikeclassrooms,have
widevariabilityintheinformationthey
collectanduseintheirmarketingefforts.
Ourprojectisveryspecificaboutwhat
information is necessary. The project
could be used as a good benchmark
for many instructors. Furthermore, the
use of preliminary assignments and
our general structure is an asset. The
incrementalapproachallowsinstructors
to provide feedback for improvement
duringthecourseofthesemester.
ysis, teamwork) necessary for business
survivalandsuccess(Peterson,1996).
CooperativeLearning
Downloaded by [Universitas Maritim Raja Ali Haji] at 23:09 11 January 2016
ExperientialLearning
Traditional lecture-based classes
facilitate the process of passive learning. Students spend their class time
recording the content and are left little
time to reflect, synthesize, and apply
the concepts discussed (Shakarian,
1995). One method to reduce passive
learning is using experiential learning
in the classroom. Experiential learning
canbethoughtofaslearningbydoing
(Wood,2003).Moreformally,theterm
describesthe“processwherebyknowledgeiscreatedthroughthetransformationofexperience”(Kolb,1984,p.38).
Experiential learning requires that
students draw on their direct experiences to reflect, test, and create new
ideas. Researchers have suggested
that experiential learning is successful
because it increases a student’s level
of involvement in the material (Slavin,
1980),encourageshigherorderthinking
(Bonwell & Eison, 1991), and leads to
improved test performance (Hakeem,
2001;Hamer,2000).Experientialexercises used in the marketing curriculum
havebeenfoundtoincreasethelevelof
realism(delosSantos&Jensen,1985)
and learning involvement (Sautter,
Pratt, & Shanahan, 2000) and to foster
an appreciation of marketing among
nonmarketingmajors(Henke,1985).
The principles-of-marketing class is
arequiredcourseformostundergraduatebusinessprograms.Thebroadscope
oftheclass,coupledwithasometimes
uninterested student population, warrants the implementation of teaching
techniques that activate student learning.Furthermore,experientialexercises
are often reserved for the conclusion
of an individual’s college studies (e.g.,
internships, simulations, cases, client
sponsored projects).Yet, using them at
a student’s initial exposure to marketing should provide a stronger foundationofbasicmarketingorbusinessconceptsthroughimprovedcomprehension.
Experiential-learning techniques can
also allow for the development of fundamental business skills (e.g., written
andoralcommunication,research,anal
Studentteamsarereadilyusedwithin
the business curriculum. Both instructors and students benefit from cooperative learning. For the instructor, the
grading workload is more manageable.
For the students, working in a group
provides a broad range of experiences
thatmorecloselyresembletheworkperformed in marketing jobs (Dommeyer,
1986;Henke,1985;Williams,Beard,&
Rymer,1991).Anotherprimarybenefit
of group work is that it allows for the
development of interpersonal, leadership, and communication skills. Students learn to delegate responsibility,
createinternalworkschedules,critique
eachothers’work,assessandovercome
other group members’ strengths and
weaknesses, and accept responsibility
in other individuals’ work (Chapman
& Van Auken, 2001). Not only does
cooperative learning afford individuals
additional educational opportunities,
but it can also provide more pleasurable (Dommeyer) and successful experiences (Johnson, Johnson, & Smith,
1998) when compared with individual
learning.
TheSituationAnalysisProject
We attempted to enrich the curriculum of the introductory marketing
course as a piece that is vital to the
overall business curriculum by incorporating a semester-long, team-based
situation analysis project. The situation analysis represents an important
component of real-world marketing
practice. The American Marketing
Association (2005) describes a situationanalysisas“thesystematiccollectionandstudyofpastandpresentdata
to identify trends, forces, and conditions with the potential to influence
the performance of the business and
the choice of appropriate strategies”
(para.1).Expertshaveagreedthatthis
collectionandstudyofmarketingdata
is“vitaltodevelopingsoundmarketing
strategies” (Lehmann & Winer, 2002,
p. 39). Mark Shapiro, former Senior
VicePresidentofCorporateStrategyat
QuakerOats,hasnoted,
Thesituationanalysisisanecessaryfirst
step in the marketing planning process.
It is imperative to begin by researching
andanalyzingtheconfluenceofcategory
issuesandtrends,competitiveactionsand
capabilities, and the customer dynamics
that will impact the product’s sales and
profits during the planning horizon. It
is widely used by world-class marketing companies and strategy consultants
(M. Shapiro, personal communication,
December17,2005).
Currently, marketing plans are the
mainstay projects in many principles
classes. Although a situation analysis
ispartofamarketingplan,manyclassroomsdonotrequireanextensivecategory,competitive,orconsumeranalysis
andspendthebulkofthereportonthe
4Ps:product,promotion,place(method
andplaceofdistribution),andpricefor
profit. Furthermore, students typically
lackthedataandquantitativeskillsnecessarytodevelopthe4Ps.Theydonot
know how to construct realistic pricing, promotion, or consumer products
programs, forecast sales, and so forth.
Therefore, they are left with vague,
hypothetical information that does not
furthertheirlearningofmarketingprinciplesandrealpractices.Theresultisa
poormarketingplan.
Ingeneral,studentslackthefoundation on which to build a strong plan.
Theyfocusontacticsratherthananalysis and see marketing as creative execution rather than a blend of creative
andstrategicthinking.Moreover,there
islittletakeawayfromsuchaproject
tobeappliedtootherbusinesscourses.
Thislackofattentiontocategory,competitive, and consumer information is
also found in industry. For example,
Day and Nedungadi (1994) found
that 41% of companies surveyed had
almostnoconsiderationforbothcompetitorsandconsumerswhenascertaining competitive advantage, and only
15.5% analyzed both. Therefore, it is
imperativethatmarketingandbusiness
educators stress the importance of a
situationanalysis.
The proposed situation analysis
project offers a realistic, manageable
task for introductory students. It can
be completed within the timeframe of
asemestercourseandconductedusing
libraryandInternetresearchcommonlyavailabletostudents.Moreover,the
March/April2008
215
Downloaded by [Universitas Maritim Raja Ali Haji] at 23:09 11 January 2016
situation analysis offers the opportunityforsignificantandimportantskill
development. Specifically, students
are required to conduct independent
research, use critical and creative
thinking to analyze research findings
and identify new product opportunities,andpresenttheirconclusionsand
recommendations in both a cohesive
written document and a formal oral
presentation. By using realistic and
accurateinformation,studentsareable
to propose actionable product ideas.
Many students of introductory principlesofmarketinginitiallyperceivethat
marketing is primarily about advertising, promotions, and sales (Ferrell &
Gonzalez, 2004). However, the situation analysis project paints a much
broader picture of the field that will
assist them in more advanced marketing and business classes and their
futurecareers.
Thelearningobjectivesofthesituation
analysisprojectareto(a)putintopractice
theconceptsanddefinitionstaughtinan
introductorymarketingcourse,(b)create
a foundation for doing an undergraduate business plan, (c) improve research,
analysis, communication, and teamwork
skills,and(d)provideanopportunityfor
creativethinkingbasedonanalysis.
DesignandManagement
Theproposedsituationanalysisproject has students research a consumer
goods category; analyze relevant category,competitive,andconsumertrends;
anddevelopanewproductideathatfits
an unmet need that the students have
discovered in their investigation. The
studentsareaskedtoassessaconsumer
packaged-goods category (e.g., toilet
paper, adhesive bandages, microwave
popcorn) because information tends to
bewidelyavailableandthedataarefairlyuptodate.Furthermore,thestudents
arefamiliarwithsuchproductsandtheir
users,andideasfornewproductswithin
these categories are fairly easy to conceive without a technical background.
The project outcome includes several
preliminary assignments, a final writtenreport,andaclasspresentation(see
AppendixA).
Theprojectbeginsbyhavingthestudentsformgroupsofthreetofour.The
216
JournalofEducationforBusiness
studentgroupsselectwhichproductcategory they wish to research. Students
are offered several product categories
from which to choose. The instructor
is responsible for selecting the product
categories and ensuring that there is
enough data available for the students
to complete the project. Prior to compilingthefinalsituationanalysisreport,
students complete several preliminary
assignments: store audit, data mining,
and Simmons analysis. These short
assignments are scheduled throughout
theterm,andtheinformationrequested
in each assignment is integrated into
thefinalreport.Wehavefoundthatdistributing the work throughout the term
makes the final project more manageable and also fosters content learning,
astheinstructionofrelevantmarketing
conceptscanbetimedtocorrespondto
keyassignmentdeliverydates.
StoreAudit
Studentsvisitalocalretailstorethat
carries a full line of products in their
chosen category to gather information
on their category and record and analyze their observations in a written
report. In a table, they identify each
of the category’s brands, varieties of
these brands (e.g., size, flavor), each
product’s parent manufacturer, unit
price, and brand imagery (as communicated by the package copy and
graphics). They also think about what
segmentsorbucketstheseproductscan
be divided into (i.e., dividing the categorybyproducttypes,priceorquality
segments, important benefits offered,
consumergroupsserved,andsoforth).
Last,theydiscusshowtheproductsare
displayedandwhatroleeachmanufacturer plays within the category (e.g.,
leader,challenger,nicher).
DataMining
Students research and write a factfinding exercise in which they obtain
basic information about the category and its competitors from secondary research sources. This includes
information on category size, rate of
growth or decline, primary competitors and their brands, market shares,
channels of distribution, and recent
productinnovations.
SimmonsAnalysis
Studentsconductastudyofconsumer
demographics,asprovidedbySimmons
MarketResearchBureau(SMRB).They
areaskedtoanalyzeaSimmonsreport
on the users in their category to determine the profile of current users and
to consider how better products could
be developed for these users and how
entirely new products could be developed for the demographic groups that
donottendtobeusers.Theoutcomeis
a written report describing current and
potentialconsumermarkets.
After completing the preliminary
assignments, the teams integrate their
findings and conclusions into a document called the SituationAnalysis and
New Product Idea and make an oral
presentation of this report to the class.
The report that the students submit is
organized into four sections: category
analysis,competitiveanalysis,customer
analysis,andconclusionsornewproductidea.
Thecategoryanalysisisanoverview
of the dynamics that affect all participants in the market. It includes a general description of the products in the
category,thelargercategoryorindustry
that they are part of, and the primary
subsegmentswithinthecategory(based
onformulation,priceorquality,benefits
delivered, and so forth). The students
must know the category size, recent
growth or decline trend, and stage in
the product life cycle.Also required is
somediscussionofthechannelsofdistribution,anymajorissueswithsupply
orcost,andanystrongthreatposedby
substitute products. Last, the students
mustshowanunderstandingofthekey
issues in the marketing environment
affecting the category—political and
regulatory policy, economic outlook,
socialordemographicorculturaltrends,
technologicalshifts,andchangesinthe
naturalenvironment.
The competitive analysis is a fairly
straightforward assessment of the primary competitors, both corporate and
brand,inthecategory.Itrequiresareview
of these competitors by manufacturer,
includingmarketshareandsharetrends
andkeydifferencesinthevaluepropositionsoftheirproducts.Thestudentsalso
look at spending, innovation, financial
Downloaded by [Universitas Maritim Raja Ali Haji] at 23:09 11 January 2016
strength, and any other apparent competitiveadvantages.Theyarechallenged
to consider the overall strategy of these
competitorswithinthecategory:market
share leader, low price leader, quality
leader,andmarketnicher.
Thecustomeranalysisraisesthecrucialquestionsofwhobuysandusesthe
product, how, when, and why. Specifically, the students need to understand
the consumer demographics, purchase
influencers, product usage and benefits sought, and whether the consumer
dynamicsarechanging.
In the conclusion or new product
section, students provide a summary
of overall conclusions about the possibilities for new products within the
category and a recommendation for
the product that they think holds the
most promise. The students prepare
a positioning statement for this new
product. They also develop the key
brand elements (brand name, logo,
symbol or character) and a rough
packagethatincorporatesthesebrand
elements.
Survey
To determine whether the situation analysis learning objectives were
achieved, we used an online survey to
evaluatethestudents’perceivedknowledge of how to complete a situation
analysis, their assessment of skills
learnedorenhancedbyparticipatingin
thesituationanalysis,andtheproject’s
applicability in their future business
classes and job experiences.We polled
both former principles-of-marketing
students who were currently enrolled
intheundergraduateprogramandthose
whohadgraduated.
Wesentane-mailinvitationtocomplete an online survey to 331 undergraduate students who had taken principles of marketing with either of us
overaperiodof3years.Wehaveused
the situation analysis project in all of
our principles-of-marketing sections.
E-mail addresses for students that had
graduated were obtained from alumni
records. The sample consisted of 35
(68.6%)currentlyenrolledundergraduatestudentsand16(31.4%)individuals
who had graduated. The response rate
was15.4%.
The survey asked 5 scale-item questions relating to the situation-analysis
content,7scale-itemquestionsonskill
assessment, and 3 scale-item questions
pertaining to their overall assessment
of the project. Respondents were also
asked to explain their responses to the
overallassessmentquestionswithopenended questions. The scale items were
measured on a 5-point Likert scale
rangingfrom1(stronglydisagree)to5
(stronglyagree).
Results
As Table 1 illustrates, the majority
of marketing and nonmarketing majors
either agreed or strongly agreed that
their understanding of how to conduct
a situation analysis improved. The
respondents’finaloverallsituationanalysisprojectgradesshowedasignificant
positive correlation of at least p
ISSN: 0883-2323 (Print) 1940-3356 (Online) Journal homepage: http://www.tandfonline.com/loi/vjeb20
Experiential and Cooperative Learning: Using
a Situation Analysis Project in Principles of
Marketing
Caroline Munoz & Ann Huser
To cite this article: Caroline Munoz & Ann Huser (2008) Experiential and Cooperative Learning:
Using a Situation Analysis Project in Principles of Marketing, Journal of Education for Business,
83:4, 214-220, DOI: 10.3200/JOEB.83.4.214-220
To link to this article: http://dx.doi.org/10.3200/JOEB.83.4.214-220
Published online: 07 Aug 2010.
Submit your article to this journal
Article views: 127
View related articles
Citing articles: 11 View citing articles
Full Terms & Conditions of access and use can be found at
http://www.tandfonline.com/action/journalInformation?journalCode=vjeb20
Download by: [Universitas Maritim Raja Ali Haji]
Date: 11 January 2016, At: 23:09
Downloaded by [Universitas Maritim Raja Ali Haji] at 23:09 11 January 2016
ExperientialandCooperativeLearning:
UsingaSituationAnalysisProject
inPrinciplesofMarketing
ANNHUSER
CAROLINEMUNOZ
FAIRLEIGHDICKINSONUNIVERSITY
MADISON,NEWJERSEY
ABSTRACT.Inthisarticle,theauthors
proposeasemester-longexperiential-
learningprojectforintroductorymarketing
students.Theprojectrequiresananalysisof
aproductcategory,competition,andconsumerbasetosupportanewproductproposal.Thepurposeisto(a)putintopracticetheconceptsanddefinitionstaughtin
anintroductorymarketingcourse,(b)create
afoundationfordoinganundergraduate
businessplan,(c)improveresearch,analysis,communication,andteamworkskills,
and(d)provideanopportunityforcreative
thinking.Theauthorsprovideadescription
ofthesituationanalysisprojectandsupplementalpreliminaryassignments.Theyalso
provideanoutcomesassessmentwithcurrentandformercollegestudents.
Keywords:cooperativelearning,experientiallearning,principlesofmarketing,situationanalysis
Copyright©2008HeldrefPublications
214
JournalofEducationforBusiness
T
oday’scollegestudentswanttobe
engaged in their learning experiences.Theyfindone-waylectures,rote
memorization,andregurgitationofisolatedfactsandtermstediousandboring.
Inaddition,thesepassivelearningmethods do not facilitate the critical thinkingandcommunicationskillsnecessary
to be successful in business. Business
managersandmarketersneedtobeable
to navigate through research, analyze
findings, and produce clear reports of
their conclusions. Educators need to
provide opportunities for students to
develop these skills and facilitate content learning by using more dynamic,
engagingteachingtechniques.
Increasingly, marketing educators
are using experiential learning (Smart,
Kelley, & Conant, 1999). Experiential
learning forces students to move away
from passive learning and play a more
activeroleintheireducation.Themarketingeducationliteraturehasproposed
numerous activities, such as games,
cases, computer simulations, servicelearning products, and role playing to
foster experiential learning (Anselmi
& Frankel, 2004; Bobbitt, Inks, Kemp,
& Mayo, 2000; Daly, 2001; Gremler,
Hoffman, Keaveney, & Wright, 2000;
Hamer,2000;Petkus,2000).Inthisarticle,wesupplementtheexistingexperiential techniques by proposing the use
of a demanding, real-world marketing project (i.e., situation analysis) for
students in an introductory marketing
class.We developed this semester-long
project to involve students in cooperativeexperientiallearningandtoenhance
thecourseandbusiness-schoolcurriculum. We required students to conduct
a situation analysis of a category and
propose a new product for this categoryonthebasisoftheirfindingsand
conclusions. To evaluate the project,
we conducted an outcomes assessment
withformerstudents.Inthisarticle,we
demonstrate that the situation analysis
project is a valuable learning exercise
for both marketing and nonmarketing
majors.Theprojectdiffersfromwhatis
currentlybeingofferedinmanymarketingclassesinthatthesituationanalysis
does not concentrate on the marketing
mix (product, price, place, and promotion),butratherontheresearchrelated
to the product category, competition,
and consumers. The project also has
studentsusevaliddataintheiranalysis,
thusprovidingrealisticconclusionsand
recommendations.Last,thedesignand
structure of the project is innovative.
Companies,muchlikeclassrooms,have
widevariabilityintheinformationthey
collectanduseintheirmarketingefforts.
Ourprojectisveryspecificaboutwhat
information is necessary. The project
could be used as a good benchmark
for many instructors. Furthermore, the
use of preliminary assignments and
our general structure is an asset. The
incrementalapproachallowsinstructors
to provide feedback for improvement
duringthecourseofthesemester.
ysis, teamwork) necessary for business
survivalandsuccess(Peterson,1996).
CooperativeLearning
Downloaded by [Universitas Maritim Raja Ali Haji] at 23:09 11 January 2016
ExperientialLearning
Traditional lecture-based classes
facilitate the process of passive learning. Students spend their class time
recording the content and are left little
time to reflect, synthesize, and apply
the concepts discussed (Shakarian,
1995). One method to reduce passive
learning is using experiential learning
in the classroom. Experiential learning
canbethoughtofaslearningbydoing
(Wood,2003).Moreformally,theterm
describesthe“processwherebyknowledgeiscreatedthroughthetransformationofexperience”(Kolb,1984,p.38).
Experiential learning requires that
students draw on their direct experiences to reflect, test, and create new
ideas. Researchers have suggested
that experiential learning is successful
because it increases a student’s level
of involvement in the material (Slavin,
1980),encourageshigherorderthinking
(Bonwell & Eison, 1991), and leads to
improved test performance (Hakeem,
2001;Hamer,2000).Experientialexercises used in the marketing curriculum
havebeenfoundtoincreasethelevelof
realism(delosSantos&Jensen,1985)
and learning involvement (Sautter,
Pratt, & Shanahan, 2000) and to foster
an appreciation of marketing among
nonmarketingmajors(Henke,1985).
The principles-of-marketing class is
arequiredcourseformostundergraduatebusinessprograms.Thebroadscope
oftheclass,coupledwithasometimes
uninterested student population, warrants the implementation of teaching
techniques that activate student learning.Furthermore,experientialexercises
are often reserved for the conclusion
of an individual’s college studies (e.g.,
internships, simulations, cases, client
sponsored projects).Yet, using them at
a student’s initial exposure to marketing should provide a stronger foundationofbasicmarketingorbusinessconceptsthroughimprovedcomprehension.
Experiential-learning techniques can
also allow for the development of fundamental business skills (e.g., written
andoralcommunication,research,anal
Studentteamsarereadilyusedwithin
the business curriculum. Both instructors and students benefit from cooperative learning. For the instructor, the
grading workload is more manageable.
For the students, working in a group
provides a broad range of experiences
thatmorecloselyresembletheworkperformed in marketing jobs (Dommeyer,
1986;Henke,1985;Williams,Beard,&
Rymer,1991).Anotherprimarybenefit
of group work is that it allows for the
development of interpersonal, leadership, and communication skills. Students learn to delegate responsibility,
createinternalworkschedules,critique
eachothers’work,assessandovercome
other group members’ strengths and
weaknesses, and accept responsibility
in other individuals’ work (Chapman
& Van Auken, 2001). Not only does
cooperative learning afford individuals
additional educational opportunities,
but it can also provide more pleasurable (Dommeyer) and successful experiences (Johnson, Johnson, & Smith,
1998) when compared with individual
learning.
TheSituationAnalysisProject
We attempted to enrich the curriculum of the introductory marketing
course as a piece that is vital to the
overall business curriculum by incorporating a semester-long, team-based
situation analysis project. The situation analysis represents an important
component of real-world marketing
practice. The American Marketing
Association (2005) describes a situationanalysisas“thesystematiccollectionandstudyofpastandpresentdata
to identify trends, forces, and conditions with the potential to influence
the performance of the business and
the choice of appropriate strategies”
(para.1).Expertshaveagreedthatthis
collectionandstudyofmarketingdata
is“vitaltodevelopingsoundmarketing
strategies” (Lehmann & Winer, 2002,
p. 39). Mark Shapiro, former Senior
VicePresidentofCorporateStrategyat
QuakerOats,hasnoted,
Thesituationanalysisisanecessaryfirst
step in the marketing planning process.
It is imperative to begin by researching
andanalyzingtheconfluenceofcategory
issuesandtrends,competitiveactionsand
capabilities, and the customer dynamics
that will impact the product’s sales and
profits during the planning horizon. It
is widely used by world-class marketing companies and strategy consultants
(M. Shapiro, personal communication,
December17,2005).
Currently, marketing plans are the
mainstay projects in many principles
classes. Although a situation analysis
ispartofamarketingplan,manyclassroomsdonotrequireanextensivecategory,competitive,orconsumeranalysis
andspendthebulkofthereportonthe
4Ps:product,promotion,place(method
andplaceofdistribution),andpricefor
profit. Furthermore, students typically
lackthedataandquantitativeskillsnecessarytodevelopthe4Ps.Theydonot
know how to construct realistic pricing, promotion, or consumer products
programs, forecast sales, and so forth.
Therefore, they are left with vague,
hypothetical information that does not
furthertheirlearningofmarketingprinciplesandrealpractices.Theresultisa
poormarketingplan.
Ingeneral,studentslackthefoundation on which to build a strong plan.
Theyfocusontacticsratherthananalysis and see marketing as creative execution rather than a blend of creative
andstrategicthinking.Moreover,there
islittletakeawayfromsuchaproject
tobeappliedtootherbusinesscourses.
Thislackofattentiontocategory,competitive, and consumer information is
also found in industry. For example,
Day and Nedungadi (1994) found
that 41% of companies surveyed had
almostnoconsiderationforbothcompetitorsandconsumerswhenascertaining competitive advantage, and only
15.5% analyzed both. Therefore, it is
imperativethatmarketingandbusiness
educators stress the importance of a
situationanalysis.
The proposed situation analysis
project offers a realistic, manageable
task for introductory students. It can
be completed within the timeframe of
asemestercourseandconductedusing
libraryandInternetresearchcommonlyavailabletostudents.Moreover,the
March/April2008
215
Downloaded by [Universitas Maritim Raja Ali Haji] at 23:09 11 January 2016
situation analysis offers the opportunityforsignificantandimportantskill
development. Specifically, students
are required to conduct independent
research, use critical and creative
thinking to analyze research findings
and identify new product opportunities,andpresenttheirconclusionsand
recommendations in both a cohesive
written document and a formal oral
presentation. By using realistic and
accurateinformation,studentsareable
to propose actionable product ideas.
Many students of introductory principlesofmarketinginitiallyperceivethat
marketing is primarily about advertising, promotions, and sales (Ferrell &
Gonzalez, 2004). However, the situation analysis project paints a much
broader picture of the field that will
assist them in more advanced marketing and business classes and their
futurecareers.
Thelearningobjectivesofthesituation
analysisprojectareto(a)putintopractice
theconceptsanddefinitionstaughtinan
introductorymarketingcourse,(b)create
a foundation for doing an undergraduate business plan, (c) improve research,
analysis, communication, and teamwork
skills,and(d)provideanopportunityfor
creativethinkingbasedonanalysis.
DesignandManagement
Theproposedsituationanalysisproject has students research a consumer
goods category; analyze relevant category,competitive,andconsumertrends;
anddevelopanewproductideathatfits
an unmet need that the students have
discovered in their investigation. The
studentsareaskedtoassessaconsumer
packaged-goods category (e.g., toilet
paper, adhesive bandages, microwave
popcorn) because information tends to
bewidelyavailableandthedataarefairlyuptodate.Furthermore,thestudents
arefamiliarwithsuchproductsandtheir
users,andideasfornewproductswithin
these categories are fairly easy to conceive without a technical background.
The project outcome includes several
preliminary assignments, a final writtenreport,andaclasspresentation(see
AppendixA).
Theprojectbeginsbyhavingthestudentsformgroupsofthreetofour.The
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studentgroupsselectwhichproductcategory they wish to research. Students
are offered several product categories
from which to choose. The instructor
is responsible for selecting the product
categories and ensuring that there is
enough data available for the students
to complete the project. Prior to compilingthefinalsituationanalysisreport,
students complete several preliminary
assignments: store audit, data mining,
and Simmons analysis. These short
assignments are scheduled throughout
theterm,andtheinformationrequested
in each assignment is integrated into
thefinalreport.Wehavefoundthatdistributing the work throughout the term
makes the final project more manageable and also fosters content learning,
astheinstructionofrelevantmarketing
conceptscanbetimedtocorrespondto
keyassignmentdeliverydates.
StoreAudit
Studentsvisitalocalretailstorethat
carries a full line of products in their
chosen category to gather information
on their category and record and analyze their observations in a written
report. In a table, they identify each
of the category’s brands, varieties of
these brands (e.g., size, flavor), each
product’s parent manufacturer, unit
price, and brand imagery (as communicated by the package copy and
graphics). They also think about what
segmentsorbucketstheseproductscan
be divided into (i.e., dividing the categorybyproducttypes,priceorquality
segments, important benefits offered,
consumergroupsserved,andsoforth).
Last,theydiscusshowtheproductsare
displayedandwhatroleeachmanufacturer plays within the category (e.g.,
leader,challenger,nicher).
DataMining
Students research and write a factfinding exercise in which they obtain
basic information about the category and its competitors from secondary research sources. This includes
information on category size, rate of
growth or decline, primary competitors and their brands, market shares,
channels of distribution, and recent
productinnovations.
SimmonsAnalysis
Studentsconductastudyofconsumer
demographics,asprovidedbySimmons
MarketResearchBureau(SMRB).They
areaskedtoanalyzeaSimmonsreport
on the users in their category to determine the profile of current users and
to consider how better products could
be developed for these users and how
entirely new products could be developed for the demographic groups that
donottendtobeusers.Theoutcomeis
a written report describing current and
potentialconsumermarkets.
After completing the preliminary
assignments, the teams integrate their
findings and conclusions into a document called the SituationAnalysis and
New Product Idea and make an oral
presentation of this report to the class.
The report that the students submit is
organized into four sections: category
analysis,competitiveanalysis,customer
analysis,andconclusionsornewproductidea.
Thecategoryanalysisisanoverview
of the dynamics that affect all participants in the market. It includes a general description of the products in the
category,thelargercategoryorindustry
that they are part of, and the primary
subsegmentswithinthecategory(based
onformulation,priceorquality,benefits
delivered, and so forth). The students
must know the category size, recent
growth or decline trend, and stage in
the product life cycle.Also required is
somediscussionofthechannelsofdistribution,anymajorissueswithsupply
orcost,andanystrongthreatposedby
substitute products. Last, the students
mustshowanunderstandingofthekey
issues in the marketing environment
affecting the category—political and
regulatory policy, economic outlook,
socialordemographicorculturaltrends,
technologicalshifts,andchangesinthe
naturalenvironment.
The competitive analysis is a fairly
straightforward assessment of the primary competitors, both corporate and
brand,inthecategory.Itrequiresareview
of these competitors by manufacturer,
includingmarketshareandsharetrends
andkeydifferencesinthevaluepropositionsoftheirproducts.Thestudentsalso
look at spending, innovation, financial
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strength, and any other apparent competitiveadvantages.Theyarechallenged
to consider the overall strategy of these
competitorswithinthecategory:market
share leader, low price leader, quality
leader,andmarketnicher.
Thecustomeranalysisraisesthecrucialquestionsofwhobuysandusesthe
product, how, when, and why. Specifically, the students need to understand
the consumer demographics, purchase
influencers, product usage and benefits sought, and whether the consumer
dynamicsarechanging.
In the conclusion or new product
section, students provide a summary
of overall conclusions about the possibilities for new products within the
category and a recommendation for
the product that they think holds the
most promise. The students prepare
a positioning statement for this new
product. They also develop the key
brand elements (brand name, logo,
symbol or character) and a rough
packagethatincorporatesthesebrand
elements.
Survey
To determine whether the situation analysis learning objectives were
achieved, we used an online survey to
evaluatethestudents’perceivedknowledge of how to complete a situation
analysis, their assessment of skills
learnedorenhancedbyparticipatingin
thesituationanalysis,andtheproject’s
applicability in their future business
classes and job experiences.We polled
both former principles-of-marketing
students who were currently enrolled
intheundergraduateprogramandthose
whohadgraduated.
Wesentane-mailinvitationtocomplete an online survey to 331 undergraduate students who had taken principles of marketing with either of us
overaperiodof3years.Wehaveused
the situation analysis project in all of
our principles-of-marketing sections.
E-mail addresses for students that had
graduated were obtained from alumni
records. The sample consisted of 35
(68.6%)currentlyenrolledundergraduatestudentsand16(31.4%)individuals
who had graduated. The response rate
was15.4%.
The survey asked 5 scale-item questions relating to the situation-analysis
content,7scale-itemquestionsonskill
assessment, and 3 scale-item questions
pertaining to their overall assessment
of the project. Respondents were also
asked to explain their responses to the
overallassessmentquestionswithopenended questions. The scale items were
measured on a 5-point Likert scale
rangingfrom1(stronglydisagree)to5
(stronglyagree).
Results
As Table 1 illustrates, the majority
of marketing and nonmarketing majors
either agreed or strongly agreed that
their understanding of how to conduct
a situation analysis improved. The
respondents’finaloverallsituationanalysisprojectgradesshowedasignificant
positive correlation of at least p