Marketing Monthly - February 2013 by Mays Business School

February 2013: Vol. 8, Issue 1

Marketing Monthly Brandon Coleman Featured in Advertising Age’s 40 Under 40

Brandon Coleman ’05, CMO, Romano's Macaroni Grill

Brandon Coleman ‘05 marketing major, currently Chief Marketing Officer of Romano's Macaroni Grill, is among the 40 up and coming executives to be profiled in Advertising Age’s “40 Under 40” list.

Particularly noteworthy is the fact Coleman is the youngest (age 30) among those profiled. “The youngest person to take the CMO post at Macaroni Grill, Brandon Coleman is tasked with differentiating the chain from competition and is overseeing its rebranding strategy using data and building what he calls a best-in-class CRM operation to make it happen. Mr. Coleman, who joined Macaroni Grill as CMO in 2010, said that the chain's challenge is positioning as an upscale but value-oriented option while consumers become more conscious of their budgets. "When pressed to reduce budgets, dining out is typically the first thing under scrutiny.“ --from the Ad Age profile Talking about his undergraduate experience, Coleman says: “Texas A&M has shown me the importance and the relevance of tradition. It should be honored and respected; but it should never impede progress. I'm very fortunate to have been taught both sides of this maxim during my tenure at Texas A&M.”

Audrey Henderson— Most Promising Minority Student Audrey Henderson ’13 was named one of 50 Most Promising Minority Students by the American Advertising Federation (AAF) for 2013. AAF’s Most Promising Minority Students Program is the premier advertising industry award program to recognize and recruit outstanding minority college graduates in advertising, marketing, media and communications. The program honors the students and enhances their Continued next page

Audrey Henderson, ‘13

Most Promising Minority Student (cont.) knowledge and understanding of advertising by offering networking, interviewing and industry immersion opportunities with advertising professionals. Henderson is a senior business honors and marketing major, creative studies minor and advertising certificate student from Lake Jackson, Texas. She is the first student from Texas A&M to receive the recognition. Selection for this program involved a nationwide search for the top 50 advertising, communications or marketing college seniors based on their demonstrated interest in the advertising industry, leadership potential and community service. Henderson will be attending the Building Bridges for Our Future Awards Luncheon in New York City in February, as part of a three-day, expense-paid trip provided by AAF. As an undergraduate, Henderson has held multiple leadership positions within the Aggie Advertising Club and Texas A&M’s award-winning National Student Advertising Conference team. She was recently selected as a member of Mays Business Fellows Group XXXI and is a member of Alpha Mu Alpha, the national marketing honorary society. Henderson has also served for three and a

half years as a mentor to elementary students through H.O.S.T.S. at Navarro Elementary School. Her work experience includes a marketing internship in the Windows Phone 7 department of Microsoft and an advertising account coordinator internship with The Atkins Group in San Antonio. She is currently employed as the communications coordinator for the Business Honors program. “It is a huge honor to be named one of AAF’s Most Promising Minority Students,” Henderson said. “I am looking forward to representing Texas A&M University at the program in February as well as connecting with and learning from industry leaders and other students who are just as passionate about the advertising industry as I am!” The Most Promising Minority Students program and its finalists will be featured in Advertising Age, USA TODAY, and the official Most Promising Minority Student program book. Additionally, each finalist’s résumé will be included in the 2013 Most Promising résumé database that will be available to human resources and media professionals across the nation. --Article from Mays Business Online

Aggies Win Fashion Competition Again! $65,000 in scholarships… You Bet Your Flash Sale Site-2013 Fashion Scholarship Fund With serious scholarship dollars, a free trip to NYC, and major bragging rights at stake, 12 Aggies embarked on a semester-long case study project in fall 2012. Mentored by Sandi Lampo, they participated in the YMA Fashion Scholarship Fund case competition. This is the third year Texas A&M University has competed in this national level competition, and their third straight win.

Students were challenged to create a new private label line for a flash retailer such as Gilt Groupe, Ideeli, Rue La La Fashion, Haute Look, Prive or Ivory Trunk targeting the tween market. Utilizing both primary and secondary research, students created a Merchandise Assortment Plan, a Pricing Strategy, a Six Month Sales Plan, a Brand Launch Strategy, Marketing Strategy and a Sustainability Plan for their private label line to be launched spring 2014. They developed all aspects of their private label brand, from name development to specific inventory levels needed throughout the season. Continued next page

Aggies Win Fashion Competition Again! (cont.)

FSF gala: Victoria Galindo, Lauren Ray, Dr. Sandi Lampo, Macey Cangelose, and Sarah Amelunke in NYC.

This case study required students to identify a void in the tween market, create a new line to fulfill customer demand, develop a plan to implement, and show the feasibility of this new line in the actual marketplace. With the tween market growing in both influence and spending power, the possibilities were wide, although tapered by the reality of catering to customers who cannot drive, hold jobs, or get into PG-13 movies. Four winners were selected from Texas A&M University’s five submissions: Victoria Galindo, Lauren Ray, Sarah Amelunke, and Macey Cangelose. Each won $5,000 scholarships; as a

junior, Macey Cangelose has the opportunity to compete again next year for $25,000. Each student thoughtfully explored the wants and needs of their customers. Victoria Galindo designed a tween line of bras that addressed an awkward stage in a young adolescent’s life. Lauren Ray created customizable school uniforms that blended personalized fashion expression within strict dress codes. Sandi Lampo devoted hours of personal and academic time to coach these students for exemplary performance. She gladly exclaimed, “I am so excited to have winners again in this prestigious national fashion competition! In just three years, our students have won $65,000 in scholarships and multiple internship opportunities in NYC! This is an amazing opportunity for our students. It opens doors to careers in NYC’s highly competitive fashion world. Our winning students represented Texas A&M with honor, professionalism and integrity. They excelled in both their independent written case studies and their personal interactions with retailing executives in New York City. I could not be more proud and know they have exciting careers in the fashion industry ahead of them!” Lampo and the students accepted their awards at a star-studded gala at the Waldorf Astoria Hotel. Fashion designers walked the red carpet, and industry leaders from Macy’s, Ross, Cole Hann and many more personally met and congratulated the students.

2013 Mays Marketing Research Camp Mark your calendars now for this year’s annual event. Friday, March 1, 2013 7:15 – 8:00

Continental Breakfast (Atrium, Cox Hall)

8:00 – 8:15

Welcome Remarks (Wehner, 190) Jerry Strawser, Dean and KPMG Chair in Accounting, Mays Business School, Texas A&M University Rajan Varadarajan, Head of Department, Distinguished Professor of Marketing, and Ford Chair in Marketing and E-Commerce, Mays Business School, Texas A&M University Venky Shankar, Professor and Coleman Chair in Marketing and Director of Research, Center for Retailing Studies, Mays Business School, Texas A&M University

8:15 – 9:30

Robert Meyer, Gayfryd Steinberg Professor of Marketing and Co-Director of the Center for Risk Management and Decision Processes, Wharton School, University of Pennsylvania Biases in Information-Seeking to Avoid Catastrophic Risk

9:30 – 9:45

Coffee Break (Atrium, Cox Hall)

9:45 – 11:00

Don Lehmann, George E. Warren Professor of Marketing, Columbia Business School, Columbia University

11:00 – 11:15 Coffee Break (Atrium, Cox Hall) 11:15 – 12:30 Dina Mayzlin, Associate Professor of Marketing, Marshall School of Business, University of Southern California Promotional Reviews: An Empirical Investigation of Online Review Manipulation 12:30 – 1:30

Lunch (Cocanougher Center, 183)

1:30 – 2:45

Suresh Ramanathan, Professor of Marketing, Mays Business School, Texas A&M University Effects of Focus of Attention on Desires and Resistance Towards Temptations

2:45 – 2:50

Wrap-up and Concluding Remarks by Venky Shankar

Congratulations Len Berry Receives Award for Healthcare Article The winners of the 2013 Edgar C. Hayhow Award are Denise M. Kennedy, Richard J. Caselli, MD, and Leonard L. Berry, PhD, for their article “A Roadmap for Improving Healthcare Service Quality.” The article appeared in the November/December 2011 issue of the Journal of Healthcare Management. In their article, the authors chronicle the results from a data-driven, comprehensive model for improving service and creating long-term value that was developed and implemented at Mayo Clinic Arizona. This model can be used by other healthcare organizations to improve the patient experience and value-based purchasing scores. Value-based purchasing is a payment system in which quality of care and patient experience measures are used, in part, to determine reimbursement. At Mayo Clinic, Kennedy is service coordinator and assistant professor of healthcare systems engineering, and Caselli is medical director for service. Berry is distinguished professor of marketing, Mays Business School, Texas A&M University, College Station. The Edgar C. Hayhow Award is given to the author(s) of an article judged the best from among those published in the Journal of Healthcare Management, ACHE's official journal. Named in honor of ACHE’s 14th Chairman, Edgar C. Hayhow, the first practicing administrator to earn a doctoral degree, the award recognizes outstanding contributions to healthcare management literature. The winning article was selected by ACHE’s Article of the Year Awards Committee.

Advisors’ Corner As students trickled back into College Station after the holiday break, the marketing advising office was their “refueling station” before their transition into the spring semester. The advising office did not see a dull moment in the month of January, with over 200 students stopping by in the first week alone. With opportunities for a degree evaluation check, a class adjustment ,or a conversation about internship and job opportunities, the traffic in suite 242 did not slow down. Now, into February, the students are settled into classes. With the first round of exams and projects, students will gain insight into themselves and their interests, which will give them direction toward future goals. If you have a student whose interest has been piqued, send them to suite 242 and we’ll help them find their right path toward success! Happy 2013!

From: http://www.ache.org/Pubs/Releases/2013/2013_P ublishing_Awards.cfm, Feb. 4, 2013 Student worker Lori Pineda shows what happens when you forget the shredder bag…

Congratulations Congratulations to Venky Shankar and Leonard Berry on their forthcoming publication in The Journal of Marketing Research.

Title: Service Innovativeness and Firm Value Co-Author: Thomas Dotzel ‘09 (McGill University) Abstract: Service innovativeness, or the propensity to introduce service innovations to satisfy customers and improve firm value at acceptable risk, has become a critical organizational capability. Service innovations are enabled primarily by the Internet or people, corresponding to two types of innovativeness, electronic- (e-) and people- (p-) innovativeness. The authors examine the determinants of service innovativeness and its interrelationships with firm-level customer satisfaction, firm value, and firm risk and investigate the differences between e- and p-innovativeness in these relationships. They develop a conceptual model and estimate a

system of equations on a unique panel data set of 1,049 innovations over five years, using zeroinflated negative binomial regression and seemingly unrelated regression approaches. The results reveal important asymmetries between eand p-innovativeness. While e-innovativeness has a positive and significant direct effect on firm value, p-innovativeness does not. Pinnovativeness has an overall significantly positive effect on firm value through its positive effect on customer satisfaction, but only in humandominated industries. Both e- and pinnovativeness are positively associated with idiosyncratic risk, but customer satisfaction partially mediates this relationship for pinnovativeness to lower this risk in humandominated industries. The findings suggest that firms should nurture e-innovativeness in most industries and p-innovativeness in humandominated industries.

At the Mays Business School faculty and staff meeting held Dec. 6, two of our esteemed faculty colleagues were honored in recognition and appreciation of their outstanding contributions to the mission of the Mays Business School. Paul Busch (Professor of Marketing and Regents’ Professor) received the Mays Business School Outstanding Service Award. The award was presented to Buschin recognition of his numerous and outstanding service contributions at the departmental, college and university level and to the marketing profession. Kelly Haws (Assistant Professor of Marketing) received the Mays Business School Outstanding Research Award (Ricky Griffin Research Award). Dean Jerry Strawser also announced the appointment of Haws to the Pamela M. and Barent W. Cater ’77 Faculty Fellowship.

Regent’s Professor Paul Busch and Jerry Strawser, Dean of Mays Business School

Excellence Lives On The 2012 Texas A&M Advertising team, also known as 12m Advertising, won a coveted 2013 AAFHouston ADDY student award for collateral material. In April 2012, 12m Advertising competed in the AAFâ&#x20AC;&#x2122;s National Student Advertising Competition, winning first place at regionals and going on to score in the top ten at the national competition out of over 150 colleges and universities across the country. The plan book from this competition served as the collateral material for the 2013 ADDY Awards (see plan book cover at right). It involved a 32-page professional brochure detailing a complete $100 million advertising campaign for Nissan. Founded in 1960, the ADDY Award is the worldâ&#x20AC;&#x2122;s largest professional advertising competition and is currently sponsored by the American Advertising Federation. Winners from the local Houston level will be put forth to the district ADDY competition, with district winners advancing to nationals.

2012 Texas A&M Advertising Team

Marketing professor Tomkovick recognized at UW-EC commencement From the University of Wisconsin-Eau Claire College of Business website: In 1990, Charles Tomkovick, a graduate student from Texas A&M, applied for an assistant professor of marketing position in the Department of Management and Marketing at the University of Wisconsin-Eau Claire. Included with his application was a letter of recommendation from his major professor, Dr. Paul Busch, professor of marketing at Texas A&M. About Tomkovick, Busch wrote "With respect to teaching, I fully expect Chuck to be a star. He has clearly proven himself to be competent, enthusiastic, and highly motivated—he genuinely enjoys working with young people and they sincerely appreciate his competence and sincerity."

Congratulations to Len Berry on his recent article about the application of Lean in healthcare. The article appears in the January 2013 issue of Mayo Clinic Proceedings, which reaches about 130,000 physicians worldwide. This is the first article published based on Berry’s 2012 field research in Wisconsin. Several other articles from his Wisconsin research are forthcoming. Title: The Promise of Lean in Health Care Co-Author: John S. Toussaint, MD, CEO of the ThedaCare Center for Healthcare Value Abstract: An urgent need in American health care is improving quality and efficiency while controlling costs. One promising management approach implemented by some leading health care institutions is Lean, a quality improvement philosophy and set of principles originated by the Toyota Motor Company. Health care cases reveal that Lean is as applicable in complex knowledge work as it is in assembly-line manufacturing. When well executed, Lean transforms how an

Tomkovick got the job. And he became a star, as Busch predicted, an outstanding teacher who inspired thousands of students who sat in his marketing classes the past 20 years. On Saturday, December 22nd, Tomkovick will be awarded the university’s medallion and receive the title of professor emeritus of management and marketing from Interim Chancellor Gilles Bousquet at the university’s morning commencement ceremony. Read the rest of the story at http://www.uwec.edu/COB/info/news/2012_12_1 9.htm#.UNSLk1vU0Q8.email

organization works and creates an insatiable quest for improvement. In this article, we define Lean and present 6 principles that constitute the essential dynamic of Lean management: attitude of continuous improvement, value creation, unity of purpose, respect for front-line workers, visual tracking, and flexible regimentation. Health care case studies illustrate each principle. The goal of this article is to provide a template for health care leaders to use in considering the implementation of the Lean management system or in assessing the current state of implementation in their organizations. Venky Shankar has been invited as a faculty fellow for the 2013 AMA-Sheth Foundation Doctoral Consortium to be held at the University of Michigan, Ann Arbor. This is the 11th time he has been invited to the AMASheth Foundation Doctoral Consortium in the past 14 years.

Center for Retailing Studies Coming Full Circle: Future Retail Talent and Industry CEOS Sound Off Tony Fontana, NRF Foundation (blog.nrf.com/2013); Edits & comments: Kelli Hollinger

Senior Marketing majors & Zale Leadership Scholars Kylee Young, Victoria Galindo, and Shelby Edmoundson at the NRF Big Show; not pictured, Lauren Ray

Four Aggies breathed youthful energy into the National Retail Federation’s 102 year-oldconference by participating in a first-ever student/CEO panel. Retail’s Big Show is NRF’s annual convention and EXPO. It attracts more than 27,000 participants, including 200 students from 35 of the nation’s top universities. Senior leaders in retailing, such as NRF President & CEO Matt Shay and Macy’s Chairman Terry Lundgren recognized the students in conference opening remarks as “the future talent of the retail industry.” Their message was clear: career opportunities in retailing are endless. This idea carried over into the first panel of recent graduates who are already making their

mark on the industry. Moderated by Macy’s VP of Talent Acquisition Anne Voller, four NRF Student Association alumni discussed what it’s like to make their first steps in the real world. After replacing the cap and gown with professional business attire, each panelist suggested one key bit of advice– to remember that every day is an interview, and networking symposiums like this one are an invaluable launching pad to a career in retailing. Covering their day-to-day responsibilities to their transition into full time retail careers, the panelists, from Victoria’s Secret, Kohl’s, Macy’s and Belk, shared tidbits of both optimism and caution. This counsel was followed by thoughts from some of the brightest CEOs in the business. HSNi’s Mindy Grossman, Rent the Runway’s Jennifer Hyman, BJ’s Wholesale Club Laura Sen, and Tractor Supply Co.’s Jim Wright honed in on three key elements in the industry. Culture, communication and the appreciation of innovation are elements driving retail that won’t disappear anytime soon, they said. Sen reinforced the importance of communication skills at all levels in one’s career. “Communication is the key to everything. It establishes you as a person and your relationships with your peers. Thoughtful use of communication is key to success.” Recapping her transition to HSNi six years ago, Grossman revisited the comments from those who wondered why she joined HSN. She felt that the next wave of retail revolved around the direct-to-customer experience that HSN could offer. It was through the concept of what Grossman called “intra-preneurialism” – establishing a culture of open creativity that fosters avenues for internal growth – that has helped HSNi find much success with their associates at all levels. Cont. next page

CRS News & Updates

NRF Foundation Executive Director Ellen Davis (left) discusses what makes one successful in retail with CEOs Mindy Grossman (HSNi), Jennifer Hyman (Rent the Runway), Laura Sen (BJ’s Wholesale Club), and Jim Wright (Tractor Supply Co.).

(cont. ) In closing remarks, Wright stressed the importance of life-long learning and setting goals for establishing traits that would differentiate each student from others looking to start their career. To get to the Big Show, Senior Marketing Business Honors major and Zale Scholar Lauren Ray won a $5,000 scholarship plus a travel stipend through the NRF Foundation; CRS supported travel for the other three students. While the Center for Retailing Studies has had a presence at this important annual EXPO, this

WELCOME CRS recently gained a new corporate partner. DATASCAN executives attended the Retailing Summit in 2011; from that positive introduction, the company recently chose to become the Center for Retailing Studies’ newest corporate partner. DATASCAN has been a worldwide leader in the inventory processing industry. Founded in 1970 as an inventory calculating service, it quickly grew to become the largest manual calculating service in the country. As the company grew, DATASCAN began to shift its focus away from manual inventory to

was the first time it sponsored students to participate. Kelli Hollinger, Associate Director and Lecturer, also attended and said, “This was such a high-impact learning experience for these students. They established personal connections with CEOs from major retailers, learned from world and business leaders through the keynote sessions, and positively represented Texas A&M University to this international audience. They did nothing short of a superb job.”

enhancing scanned inventories. In 1996, a client request spurred the company to develop a system that transmits data via modems – eliminating the need for notebook PCs during inventory. In 2010, DATASCAN introduced custom designed scanners, making it an evolving leader in scanning technology. Today, thousands of retailers count on DATASCAN for accurate inventory data, realtime information, customized reporting, and exceptional 24/7 live support. Please welcome them to the family of companies that generously support the Center for Retailing Studies.

CRS News & Updates Celebrating the ARTS

Cheryl Bridges serves as judge for prestigious design competition

Developed by non-profit ART and produced by Dallas Market Center, the ARTS Awards is the premier international awards program dedicated to home industry excellence and achievement in retailing, manufacturing, design, and representation. Because of her extensive background in luxury retailing, Cheryl Bridges was selected to be an academic judge. Nominations for 25 home design categories, including area rugs, tabletop, lighting showroom, and wall dĂŠcor, were submitted from around the globe. In November, Bridges gathered with other judges, whose experience include product design, interior design, retail, and architectural journalism, for an intense, two-day review process. The ARTS Awards culminate with a black-tie gala held each January during the Dallas Total Home & Gift Market attended by hundreds of industry leaders and benefiting ART, the creative home furnishings network. Guests were greeted by a glittering 14-foot-tall crystal strand curtain lining the stage and a custom-made, crystal embellished podium by SWAROVSKI ELEMENTS. The elegant evening recognized the best designers, whose work may one day be seen in high-end showrooms and museums or translated to the mass market and HGTV.

Scenes from MS Graduation Celebration