Marketing Monthly - May 2012 by Mays Business School

May 2012: Vol. 7, Issue 4

Marketing Monthly Venky Shankar wins the 2012 Mahajan Award for Lifetime Contributions to Marketing Strategy Research

Venky Shankar

Venky Shankar, Professor of Marketing and Coleman Chair in Marketing, has received the 2012 Vijay Mahajan Award for Lifetime Contributions to Marketing Strategy Research. The award will be presented by the Marketing Strategy Special Interest Group of the American Marketing Association at the summer AMA meeting. A three-member panel of past award winners and/or Journal of Marketing editors found Prof. Shankar’s contributions to Marketing Strategy to be highly impactful and deserving of this year’s Mahajan Award. Venky’s principal areas of research interest are competitive marketing strategy, innovation strategy, e-business strategy, international marketing strategy, and retailing strategy.

Says Venky, "I am truly humbled by this huge honor. It inspires me to do more high-impact research in marketing strategy." A 1995 PhD from Northwestern University, Venky is the author of numerous refereed journal articles, book chapters, conference papers, and presentations on these topics. To date, he has published 37 articles in journals such as the Journal of Marketing, Journal of Marketing Research, Marketing Science, Management Science, Strategic Management Journal, Journal of the Academy of Marketing Science, Journal of Retailing, and International Journal of Research in Marketing. Venky has also served as a Co-editor of the Journal of Interactive Marketing, Associate Editor of Management Science, and Academic Trustee of the Marketing Science Institute. In his nomination letter Rajan reported Venky’s citation record: “According to Harzing's Publish or Perish Website, Venky’s research has generated over 4400 citations; 12 of his papers have generated over 100 citations, and he has an hindex of 29 (meaning that his 29th most cited paper has generated 29 cites. An index of 20 and above suggests outstanding impact). This score compares well with those of some of the recent winners of the Mahajan Award (Ajay Kohli: 23, Christine Moorman: 28). Clearly, Venky Shankar is one of the most highly regarded scholars in the marketing academy, both nationally and internationally. His stature as a thought-leader is firmly established and destined to grow.”

Aggie Advertising Team Wins First Place at Regionals

By Kelli Levey ~ Mays Business Online, May 2012 Anxiety levels were high for 30 marketing students as they mentally prepared to showcase nearly a year’s worth of research and campaign development at the District No. 10 National Student Advertising Competition (NSAC). But all their hard work and worry paid off as their team placed first, for the first time in history! For the last three years, 12m Advertising (the advertising firm created and operated by our Aggies) has competed in the NSAC. Teams are presented with a case study and challenge from a real-world client. Students must research the product and its competition, identify potential problems and develop an integrated communications campaign for the client. Nissan USA was the client this year. The challenge was to develop a marketing campaign targeting U.S. multi-cultural millennials, ages 18 to 29 years old, with a $100 million budget. Each team’s campaign is communicated in a 32-page plan book and 20-minute presentation, both of

which factor into deciding the overall winner. Fifteen regional districts host competitions in April, where winners are chosen to present at the American Advertising Federation National Conference in June. This year’s national conference will be in Austin. “The team really had chemistry this year and I think the judges could see it,” said Macie Becker ’12, one of the five presenters. “We were genuinely passionate about our campaign.” 12m Advertising’s past NSAC record has been fourth place, third place and “Most Integrated Campaign” in 2009, 2010 and 2011 respectively. “I am very proud of our students,” said Lisa Troy, clinical associate professor of marketing. “Winning at this level requires a significant amount of dedication and commitment, and the entire team rose to the challenge … working over winter and spring break to perfect the plan and prepare for the event.” Continued next page

First Place at Regionals (cont.) In addition to the team achieving a guaranteed spot at nationals, Jason Syptak ’12, received the “Best Presenter Special Judges Award” from among 50 presenters in the competition. “When the judges announced that I was the winner of this award, I was shocked and in disbelief,” Syptak said. “I was shaking and overwhelmed with positive emotions as I ventured to the front of the ballroom to accept the award and take photos. I kept on exclaiming to my teammates, ‘This is so Glee right now.’” 12m Advertising’s marketing research and campaign development is facilitated through two marketing classes at Mays. MKTG 489, “Advertising Research Procedures and Account Planning,” is offered in the fall semester while MKTG 447, “Advertising Case Competition,” is offered in the spring. Interested individuals must

apply to gain entrance into the class by submitting a letter of intent and resume. To develop the campaign, students in the fall semester class conducted primary and secondary research into the target market, the automotive industry, and its products. Using that research, spring semester students develop the campaign itself: campaign objectives, strategic concept and integrated traditional, digital, alternative and social media executions. “From the long hours of research and countless focus groups, to debates on the most effective alternative executions, this campaign is truly a year’s worth of the best work I’ve done,” said Savanna Pratka ’12, a member of 12m’s Alternative Team. “Competing in the NSAC is so rewarding. I learned a lot from watching the other schools.”

Caleb Robinson, Macie Becker, Jason Syptak (best presenter winner), Katie Hall, Rafik Massoud Continued next page

First Place at Regionals (cont.) Ariel Mueller ’12, Digital Team member of 12m, believes her experience with the student-led firm will prepare her for her future advertising career. “The entire process of building the campaign was a lot of work, but also a lot of fun,” said Mueller. “It was really a great simulation of what an advertising agency does in the real world … and winning was truly a testament to how Mays Business School, even without a specific advertising program, has the tools to prepare us for a career in advertising.” The winning “Experience Innovation” campaign developed by 12m Advertising for Nissan USA sheds light on the car company’s innovative essence by means of a hyperbolesketch theme and is flexible and applicable to the unique lives of multi-cultural millennials.

Because the team achieved a spot in the national competition, photographs of 12m Advertising’s print and digital advertisements could not be released in compliance with the NSAC regulations. Each sketch, however, was hand-drawn by Tyler Guinn ’12, senior marketing major and member of 12m Advertising’s Creative Team. The Marketing Monthly will be showcasing 12m’s campaign materials as soon as legally possible! “This competition proved one thing to me: content matters,” said Guinn. “Our team is dedicated to originality and intense research. No advertising school can teach talent, this team just has it.”

Winning requires a lot of work and practice. Here is the team at their final practice before the Regionals. Their top secret graphics have been grayed out.

(left) Cameron Alspaw, Promotions and Events team. (right) Tony Sellers, Digital team-- a.k.a. “the voice” of 12m Advertising (he did the voiceover for their commercial animatic).

It’s not all work and no play… Jason Syptak lets loose on the dance floor after winning the Best Presenter Award. Another Glee moment? More photos next page

Congratulations! The annual Texas A&M Athletics CHAMPS Banquet, was held at The Zone at Kyle Field where 354 student-athletes and student support staff were honored for posting a grade point average of 3.0 or higher during the 2011 calendar year. The top academic honors are named for Bill Erwin, Jefferson Award winner, former GTE executive and longtime Brazos Valley volunteer. Women's swimming and diving standout Alyssa Conner (Granite Bay, CA) and Aggie baseball pitcher Ross Stripling (Southlake, TX) were honored as the Bill Erwin ScholarAthletes of the Year. The honor goes to a senior who has completed his or her eligibility and has maintained at least a 3.5 grade-point average while also taking into account athletic achievements and community service and leadership. Conner was named the 2011 NCAA Elite 88 Award recipient in women's swimming

Senior marketing student Alyssa Conner (in blue), wins the 2012 Bill Erwin Female Scholar-Athlete of the Year Award

and diving as well as earning Capital One Academic AllAmerica All-District honors. She is listed among the top all-time Aggie swimmers in the 500/1,000/1,650 free and the 400 IM. Aggie Spirit Award

Larisa Kovalenko (right) is shown here at the newly renovated MSC fountain, with MKTG professor Alina Sorescu, who nominated her for the award.

MS-Marketing student Larisa Kovalenko was presented with one of four Aggie Spirit Awards at the recent Faculty Senate Meeting on May 14. The Aggie Spirit Award is given to students who over the past year have demonstrated incredible courage in overcoming adversity to excel at Texas A&M University. At the beginning of the fall semester, Larisa was diagnosed with cancer, and over the past two semesters has dealt with major surgery, radiation treatments and chemotherapy, while also being a wife and mother. Keeping up with a full load of MSMarketing classes, she has always maintained a constant smile and positive attitude.

Seventh Annual Marketing Research Camp The Seventh Annual Marketing Research Camp brought together highly esteemed marketing scholars, PhD students, and faculty, for a day of learning, thinking about, and discussing the latest trends and new ideas in marketing research. dimensions of quality from thousands of descriptive terms in chatter. Speaker 2: K. Sudhir “Does Reducing Spatial Differentiation Increase Product Differentiation? Effects of Zoning on Retail and Format Variety” S. Datta and K. Sudhir

Gerard Tellis and Rajan Varadarajan

Speaker 1: Gerard Tellis “Does Chatter Really Matter: The validity and usefulness of online user generated data?” Seshadri Tirunillai and Gerard Tellis In recent times, Online User Generated Content (UGC) and online chatter, in particular, have grown in importance. Online UGC is a valuable source of consumer feedback for firms. Dr. Tellis presented findings from his recent research, in which he examines the relationship between UGC and stock market performance, with a focus on the dynamics of this relationship. Data were aggregated from multiple websites of multiple firms and many aspects of UGC were investigated. According to the results, different aspects of online chatter are moderately correlated with abnormal returns, risk, and trading volume, with chatter volume having the strongest relationship. Furthermore, the effects of positive and negative messages on firm value are asymmetric with negative chatter having stronger effects. The results also underscore the usefulness of online chatter by identifying a few underlying

Dr. Sudhir presented two papers, one on the impact of spatial zoning on retail market outcomes and the other on the relationship between communication strategy and charitable giving. In the first paper, he estimates a structural model of retail entry, location and format choice across a large number of markets in the presence of zoning restrictions. The impact of prototypical zoning arrangements such as “centralized,” “neighborhood,” and “outskirt” on product differentiation is evaluated. A key finding of the second paper, a field study on sympathy bias and its effect on

K. Sudhir Continued next page

7th Annual Research Camp (cont.) (cont.) K. Sudhir charitable giving, is that presentation of a specific single individual in trouble can induce more charitable giving than that of a group in need. Furthermore, his research found that in-group effects can be more influential on sympathy biases than out-group effects.

results show systematically higher expectations when price is partitioned than when not partitioned and, as a result of this higher expectation, customers respond more negatively to service failures. Conducting the experiment on different customers and different products (car repair, pizza, hotel room plus internet package), she demonstrated the robustness and generalizability of the studies.

Speaker 3: Rebecca Hamilton â&#x20AC;&#x153;When Dividing Prices Multiplies Customer Expectationsâ&#x20AC;? Ajay T. Abraham, Rebecca W. Hamilton, and Joydeep Srivastava Firms using a partitioned pricing strategy divide the price of a good or service into two or more mandatory components. Building on previous research showing that partitioned prices make the partitioned Rebecca Hamilton components more salient, Dr. Hamiltonâ&#x20AC;&#x2122;s research explores the implications of increase in salience for customer expectations, their satisfaction with the partitioned component, and their overall satisfaction. Dr. Hamilton presented three studies on customer expectations for product components based on the price partitioning of the components. The

Rebecca Hamilton tries on the Mays brand. Sanjay Jain approves.

7th Annual Research Camp (cont.)

Speaker 4: Yan (Lucy) Liu “A Structural Model of Consumers’ Learning of Channel Quality: The Role of Product Returns” Ramkumar Janakiraman, Yan (Lucy) Liu, Ram Bezwada, and Subodha Kumar Researchers typically employ various channels (offline or online) to reach as many consumers as possible. As consumers shop and buy products from these channels, they learn about their respective qualities. Dr. Liu’s research examines consumer learning about the quality of online vs. offline channels of a retailer and the influence of consumer perception of quality of the channel and the cost associated with that channel on purchase. She also presented findings on the effect of product return on the above-mentioned learning process with respect to the quality of different channels. Her analysis of panel data on consumer purchase of different products from a multichannel department store shows that consumers exhibit inertia in their channel choice but learn about the quality of channels from their purchase experience. The results also show that consumers tend to choose the store channel when they tend to buy a large number of items across different categories and the online channel to save on transportation costs and time. Furthermore, there are salient effect of product returns on perceptions of channel quality and purchases from different channels.

Yan (Lucy) Liu

7th Annual Research Camp (cont.)

Ram Janakiraman, Lucy Liu, and Stephanie Houghton, asst. prof. (Dept. of Economics) share a laugh during a break.

Spring Robinson did her usual excellent job planning and organizing the Research Camp.

Rebecca Hamilton in animated conversation with Allan Chen and PhD student Min Jung Kim.

Venky Shankar thanks Gerry Tellis for his participation.

K. Sudhir looks a little quizzical about his fit with the Mays brandâ&#x20AC;Ś

Congratulations! Manjit Yadav has been invited to join the Editorial Review Board of The AMS Review. The AMS Review, sponsored by the Academy of Marketing Science, is a new journal that “is positioned to be the premier marketing journal that focuses exclusively on conceptual and theoretical contributions across all subdiscipline areas in the field of marketing.” For additional details about this journal, see: http://www.springer.com/business+%26+ management/journal/13162 Venky Shankar was invited to deliver the Laurent Picard Distinguished Lecture this year at

McGill University, Montreal. This invitation is made annually to a thought leader in a leading business field. Venky was chosen as a thought leader in marketing strategy. He presented a paper entitled “A New Flexible Approach to Measure, Model and Improve Sales Agency Productivity.”

Alina Sorescu just got back from the New Interdisciplinary Innovation Research Conference at INSEAD. She led a session on Business Model Innovation and interacted with peers from Marketing, Management and Operations who do research on innovation.

Mays Business School Faculty & Staff Awards

MBS Dean Jerry Strawser; Laurie Marshall, Star Performer; and James Laird, Assoc. Dean of Finance

Laurie Marshall was honored as one of the five recipients of the 2012 Mays Business School Star Performer Award. Laurie’s selection for the award was in recognition of her outstanding contributions to the Departments of Marketing and Management. Dr. Rajan Varadarajan (MKTG), a conominator of Laurie for the award notes, “A little over a year ago, I entrusted to Laurie the responsibility of serving as editor of the Marketing

Monthly. She was a natural choice given her web design skills and past work experience as Assistant to the Editor of the Journal of the Academy of Marketing Science from 2000 to 2003, and as Managing Editor of the Journal of Applied Behavioral Science from 2005 to 2011. Thanks to Laurie’s dedication, commitment and passion, the Marketing Monthly enjoys a reputation as a quality professional publication among faculty, staff, current and former students and other important external constituencies.” Dr. Richard Woodman (Department of Management), another co-nominator of Laurie for the award wrote, “In her capacity as managing editor of a scholarly journal, Laurie was truly in her element and more than one experienced individual in the publishing and reviewing ‘business’ commented to me that she was among the best they have ever worked with in this capacity.” Dr. Murray Barrick (Department of Management), the third co-nominator of Laurie for the award wrote: “As Coordinator for Saudi MSHRM and CHRM, Laurie doesn’t sit back and wait to be told what to do. She proactively anticipates my needs and moves ahead in terms of carrying out projects and work.”

Mays Business School Faculty & Staff Awards Fifth-year doctoral student, Woo Jin Choi, received an Outstanding Teaching Award (for Ph.D. students) at the recent Mays Business School Faculty and Staff meeting. Woo Jin taught MKTG 322, the undergraduate consumer behavior course, in fall 2011. Her average student evaluations were 4.72/5, indicative of her excellence in the classroom. Student comments include: • “… (she) taught very well and the course material was interesting. I loved having Woo Jin as an instructor. She has definitely been one of my favorite instructors of my college career. She acts like she genuinely cares for her students and relates course materials to real life well. “ • “The course is interesting and detailed. It was very well organized. The instructor is very open to suggestion and involved.” • “The course is interesting and sparked more interest in becoming a marketer. The instructor’s teaching is very pleasing and welcoming. I love her!” Congratulations, Woo Jin!

Woo Jin Choi receives her Outstanding Teaching Award from MBS Dean Jerry Strawser.

Guest Speaker J.R. Atkins ‘85, Chief Client Strategist at Aria, a branding and marking firm in Dallas, TX spoke to Lisa Troy’s MKTG 321 class on April 27. As a speaker, J.R. is noted for “taking the mystery out of Social Media” and speaking in terms that “even a CEO can J.R. Atkins understand.” He works with company leaders on how Social Media Networks can make a positive impact on their organization. J.R. helps business leaders understand the shift in selling that is occurring as more consumers and businesses turn to the internet for information before engaging in the sales process. How has selling changed? How do the metrics for sales need to change? Using inbound and outbound marketing, J.R. helps businesses implement plans to increase sales results in the changing sales environment.

Just released this spring, his book Success Simplified (co-authored with Stephen Covey, Dr. Tony Alessandra and Patricia Fripp) shares “Simple Solutions that generate measurable results.” J.R.’s section covers “The Big 5 of Social Media” (Facebook, Twitter, LinkedIn, blogging, and video) and how business can use Social Media to communicate with perspective customers, current clients, and employees. His classroom talk emphasized “The Big 5” and strategic thinking on why and how organizations use these tools for communication. J.R. holds an MBA from The University of Phoenix, Dallas Campus, and a BBA from Texas A&M University. J.R. began his research into Mobile Apps in January of 2010 and has uncovered several trends that are affecting business today such as “Every organization will have a mobile app or they will be out of business.”

Center for Retailing Studies First Mona Williams Scholarship Awarded at Marketing Department Awards Ceremony

Peggy Doughty, VP of Visual Merchandising at The Container Store, awards Allison Miller the first Mona Williams Scholarship.

Reflections on Mona Williams Scholarship (written for The Container Store Blog by Kelli Hollinger) While I love my containers, wicker boxes, and organized closet, it’s always been the people at The Container Store that most wow me. They wear enormous smiles. Are funny & fashionable. Do business with integrity. They make you feel special. I had never met Mona Williams when I learned of her passing late last year. She must have been the North Star, shining brightest among many great people. Inspirational, smart,

and loving to family, friends, colleagues and vendors. It was humbling to learn that The Container Store had decided to establish a scholarship at Texas A&M University to honor Mona’s memory. Our organizations have always shared common values in respecting others, selfless service, leadership and excellence. Aggies greet everyone with “Howdy,” and genuinely mean it as a warm hello. We have over 800 student organizations to let students explore their interests, from fly-fishing to promoting global justice to celebrating mariachi dance, that develop leadership skills. Our retail education program at Mays Business School is recognized as the nation’s best program to develop the next generation of leaders in retailing. I knew among our smart and exceptionally talented students, there was one that embodied Mona’s legacy. Allie Miller, an honors student and M. B. Zale Leadership Scholar, wants to be a buyer. She will make a difference in the world around her. While she may not follow Mona’s path exactly, she will blaze her own trail. And, like my friends at The Container Store, she will do it with a joyful smile that lets everyone around her know she is a new star rising high above the rest. Thank you The Container Store for establishing the Mona Williams - Women Making a Difference in Retailing scholarship at Texas A&M University. As an endowment, your investment will grow year after year, leaving a permanent legacy for Mona Williams. Each year, starting now and going forever, a student will receive the Mona Williams Scholarship and learn her inspirational story and dramatic impact on the retailing industry.

News & Updates

Zale Scholars with M.B.Zale (left, center) and Zale CEO Theo Killion (right, center).

Welcome New Zale Scholars! The Center for Retailing Studies welcomed eight new M.B. Zale Leadership Scholars into the program for fall 2012 through spring 2013. They are: Sarah Becker, Madison Donaldson, Kathryn Gaines, Lauren Ray, Haley Sullivan, Natalie Swart, Aly Ufer, and Wilson Vick. Six scholars return for the second semester of their one-year commitment. For fall 2012, the Zale Scholars number 14 outstanding students, the largest class in history. Center director Cheryl Bridges says, “They provide enormous service to the Center for Retailing Studies. They are shining ambassadors for the college, the marketing department, and CRS to the retailing companies that support us.” Zale Scholars also volunteer at all CRS events, managing many behind the scenes tasks like registrations, signage, set-up and clean-up. In return, they enjoy high-level professional development opportunities such as round table discussions with executives in retailing. Outgoing Zale Scholar Phillip Chu said, “The best thing about the program is the people. I networked with retailing executives often, and became great friends with the other Scholars.”

The students also perform community outreach through the Teens in Retailing, a career and college coaching program, at area high schools.

Bravo Graduating Zale Scholars! The Center for Retailing Studies is thrilled that many of the May 2012 graduating Zale Scholars begin their careers with some of the nation’s top retailers and CRS sponsor companies:  Ariel Bailey, Sewell Automotive Companies  Abbie Brown, Merchandise Training Program, Zale Corporation

 Megan Green, Sales Program, Nordstrom  Chelsea Sauder, Assistant Buyer, Academy Sports+Outdoors  Bianca Stewart, Assistant Manager, Ross Stores  Katherine Woelfel, Exec.Trainee/Merchandise/Buying program, Stage Stores

News & Updates Zale CEO accepts Visionary Merchant Award By Kelli Levey

Theo Killion (right) accepts the M.B. Zale Visionary Merchant Award from M.B.’s son, Donald Zale.

“Visionary merchants have one desire in common: to fulfill the dreams of others,” said Zale Corporation CEO Theo Killion in a lecture at Mays Business School. Killion had just received the 2012 M.B. Zale Visionary Merchant Award for leading the company’s turnaround plan and returning Zales to historic levels of profitability. Killion spoke of the company’s strategy and commitment to providing outstanding products, service and value to the customers of the Zale Corporation brands: Zales Jewelers, Gordon’s Jewelers, Zales Outlet, Piercing Pagoda, as well as Peoples and Mappins Jewelers, in Canada. Killion’s management ideas emerged before he was even hired. After a friend became CEO of the company and invited Killion to work there, Killion visited three stores. “The sales people all had their heads down. They didn’t want to be there. I found it really exciting to think about turning that situation around,” he recounted to more than 450 students, faculty and guests who attended his April 4 lecture in Ray Auditorium. “I

saw this company that had unbelievable DNA, a great rich story and a founder who had vision. My challenge was, how do we pull that forward?” When Killion became CEO in February 2010, he focused on strategy, marketing, quality products and credit promotions, while improving the quality of the guest experience. He said he wrote a three-year plan – something he called “a bold step… There’s fire in the basement and fire in the ceiling, and we’re planning three years out.” Killion said he incorporated seven “P’s” in those plans:  Product – “If the product is wrong, nothing else matters. If the product is right, everything else matters.”  Price – “We have to be sure we are offering the price value proposition where our male customer can be the hero and she can fall in love with a beautiful piece of jewelry.”  Promotion – Killion’s management team meets with consumers four times a year to “get their permission to be their diamond store.”  People – Killion said the employees need to realize they work for the guests of Zales.  Place – Zales invested in improving their stores, especially technology.  Process – Do things smarter, not harder. Killion said his goal is to “Stamp out stupid.”  Profit – You’ve got to make money.

Continued next page

News & Updates Zale CEO (cont.) Under Killion’s guidance over the past two years, Zales’ bottom line improved $141 million and its reputation has improved. “Zales was a mile long and an inch deep,” he says. “We’ve been working methodically to build up our work force so that our guests feel valued and excited and they know we really care.” Killion’s career in retailing includes extensive experience in human resources. Prior to joining Zale Corporation, Killion was with the executive recruiting firm Berglass+Associates, where he focused on companies in the retail, consumer goods and fashion industries. He has held leadership roles in human resources strategies at Tommy Hilfiger Corporation, The Limited Inc., and the Home Shopping Network. The Visionary Merchant Lecture was part of the CRS annual Retail Sponsor Forum. Speakers included Mays faculty members and industry experts who addressed topics such as creating unique marketing campaigns, managing workplace violence and looking to the classics to understand human behavior.

Cheryl Holland Bridges, director of the Center for Retailing Studies, said this year’s award marked a milestone for her organization. “Thirty years ago, M.B. Zale, the founder of Zales, gave Texas A&M a grant to establish the Center for Retailing Studies,” she said. Bridges called Killion “an extremely talented CEO who exemplifies M.B. Zale’s success as an innovative merchant.” Following tradition, Donald Zale presented the award. “Mr. Killion was invited to come to the company at a time of transition,” Zale said. “He said he would come on an interim basis, then he said, ‘All CEO’s are interim.’” Killion does not claim to be a visionary merchant, but he said that he accepted the award to keep from making the same mistake twice – many years ago, he passed up coming to Texas A&M when it was one of four choices for his college career. “I don’t think of this award as being my award,” he said. “It belongs to the 13,000 people who come to work every day to help people celebrate the magic moments in their lives with a piece of our jewelry.”

CEO Theo Killion and Donald Zale spent some time with the Zale Scholars.

News & Updates Center for Retailing Studies Sponsor Forum The rules of marketing have changed. “Content excellence has replaced creative excellence,” says Steve Moore, VP of Marketing & Communication for Texas A&M University. His Steve Moore message kicked off an afternoon of executive learning at the annual Forum for Center for Retailing Studies sponsor companies. Key questions retailers or marketers must constantly reevaluate include: “Who is my customer? How does he feel about me? How does she want to receive information?” Uniqueness is defined through dynamic story telling. Moore continued by contrasting some of the world’s most revered brands, and discussing which newbies are real competitors for market share. For example, Nike is no longer the fresh, young, nimble company of 30 years ago. Today’s kids want Under Armour, which has carefully cultivated a brand image of cool to customers in elementary school through early use of social media and heavy participation in kid-oriented events. Apple vs. Dell. Facebook vs. Twitter. SEC vs. Big 12. Each brand face-off conjures different emotions. Moore argues that successful brands must pursue uniqueness, must change and stay connected with youth. He gives much credit to his teenagers for keeping him relevant. What does Aristotle have to say about retailing? Quite a bit. Over two millennia ago, he identified the three primal things humans seek: truth, beauty and joy. Customers will

embrace your merchandise and brand if you incorporate all three, argues Will Clarke, Executive Creative Director at The Integer Group. By looking to the classics, we can understand Will Clarke human behavior. For example, the brain reacts to beauty in a biological way. Across cultures, from ancient times to modern day, beauty in facial features embodies Phi, the perfect mathematical proportion of 1.618. From architecture to anatomy, structures with foundations built on Phi offer visual harmony to the viewer. Visual discord, such as rotten fruit, elicits distain. To marketers, this understanding means that beauty has real value and can be defined through a standard measurement. Clarke offered three tips to audience members so they can infuse their brands with truth, beauty and joy. #1 Hire artists to bring beauty to your assortments. #2 Hire mythmakers to build joy into your brand. #3 Hire jokers to tell the truth and put FUN into brands and shopping. For example, IKEA is truthful that customers may find assembling their products difficult. Ads throughout the store depict the wellintentioned customer overwhelmed at home. By laughing at the problem, IKEA also offers customers a solution that further engages them with the brand. There is no worry that IKEA will abandon you when your new bedroom dresser does not assemble as planned. Continued next page

News & Updates CRS Sponsor Forum (cont.) Dr. Ricky Griffin, Department Head of Management, headed the next session on the complicated subject of workplace violence (WPV). Two million Americans are victims of WPV Ricky Griffin annually through incivility, bullying, sexual harassment, verbal abuse, physical violence or suicide. From a business perspective, the time lost from victim recovery can cost employers as much as $55 million per year. Griffin notes that retail stores are safer work environments than law enforcement or transportation.

But, from 2003 to 2008, one-third of the 944 homicides and 8,700 non-fatal incidents that occurred in the retail trade sector were caused by workplace violence. Unfortunately, only 31.5 percent of retailers have established prevention programs. Dr. Griffin argues that organizational culture can cause WPV, especially if the culture “rewards” aggressive behavior, such as pitting workers against each other, receiving choice assignments after belittling colleagues, or getting a promotion for being aggressive. Employers can proactively prevent violence by creating policies and regulations, communicating them, and enforcing them. Structurally, they can also provide controlled access, security systems, and exterior security in parking areas. Most importantly, companies should audit their organizational culture to assess their embrace, tolerance or opposition to workplace aggression, which often triggers workplace violence. With humor and grace Dr. Ben Welch delivered an evening keynote address at Madden’s restaurant in Downtown Bryan. Whether in business, retailing or life, success is defined by ones choice to live life with integrity. The Sponsor Forum provides Center for Retailing Studies partner companies with an exclusive executive education symposium to interact with leading campus academics and industry thought leaders. The intimate gathering also fosters relationship building among partner companies. The annual event precedes the M.B. Zale Visionary Merchant Lecture Series, the Center’s major spring program.

News & Updates Marc Eckhart Shares College Bookseller Strategy in MKTG 321 The nation’s incoming freshman class of 2015 is 50,000 strong. Like with any of life’s major changes, the transition to college – with new friends, dorms, and no parents – marks a special time when student customers establish new brand loyalties. With the college textbook market topping $37 billion, Marc Eckhart, regional manager for Barnes & Noble’s College Booksellers, described the company’s strategy to build emotional connections with freshmen and convert them into customers for four, or more, years of higher education. Eckhart outlined a six-month courtship plan to Dr. Janet Parish’s MKTG 321 honors students. Direct marketing emails start right after college acceptance in March, well before arrival to campus in September. While students may not be ready to buy books, they likely want to show school spirit by purchasing and wearing gear from their future university. Eckhart says, “Everyone wants a T-shirt! You must understand the journey of an incoming freshman. They want to display school pride, build a social network before arriving to campus, post their class schedule, and then commit to buying $800 worth of textbooks.” “Freshmen are impressionable. It’s a smarter strategy to target them, rather than converting juniors,” argues Eckhart. By building relationships with Fish Camp counselors, the company gets campus influencers to recommend Barnes & Noble College Booksellers to incoming freshman. The company also enjoys strategic agreements with universities to be the only on-campus store. “We have no off-campus strategy; our student customer is very different

from the traditional Barnes & Noble visitor.” Only Barnes & Noble College Booksellers offers Aggies integration with the Howdy registration system. This new interface exports student Marc Eckhart schedules to the bookstore, allowing students to purchase all required books during the registration process. Eckhart proudly notes that this ease of selection produced twice the total orders for the retailer during its first semester of use. By being seen as a solution-support center rather than just a book store, Barnes & Noble College Booksellers dominates the textbook market. At Texas A&M, the renovated store in the MSC offers Starbucks, express textbook pickup, guaranteed inventory, and excellence in service. “By stocking every book that all A&M instructors require, we make the shopping experience easy and efficient for Aggies so we have them as customers their entire college careers.” Eckhart continued to impress MKTG students by hosting the Student Retailing Association for a private tour before the MSC reopened on April 21. SRA members evaluated the extensive assortment of Aggie gear, textbook pick-up system, and overall store flow before enjoying a complimentary Starbucks latte of their choice. Thanks Mr. Eckhart!

News & Updates Executive Professor Profiles Roger Taylor, DMM Junior Apparel, jcpenney “In retailing, you change jobs a lot-every 1.5 years. This makes it a dynamic, not static, career path,” says jcpenney’s Roger Taylor ’93. The marketing graduate returned to campus as a guest speaker in Cheryl Bridges’ retail merchandising class to discuss the many changes at jcpenney. Steffanie Ort, a former Zale Scholar and now merchandise planner for mango at jcpenney, also spoke. The Plano-based retailer’s sales have lagged behind competitors like Macy’s and Target. When new CEO and former Apple guru Ron Johnson took the helm in 2011, he transitioned 80% of the top leadership to reinvigorate the iconic, but lack-luster, department store chain. The new goal is clear: become America’s favorite store. Taylor outlined for students how jcpenney will change its image from “your grandmother’s store” to a more whimsical, colorful place. Special, curated shops within the larger store, such as Sephora and Mango, will roll out to all 1,100 locations. The anchor of jcpenney’s plan for differentiation is its “fair and square” pricing structure. Gone are coupons, hourly sales, and special promos. Customers can expect fair pricing, monthly promotions and best prices on the first and third Friday of every month. Pressure from game-changes, like fastfashion chain Forever 21, has pushed jcpenney

to turn inventory more quickly. One-year cycles have been shortened to four to six months. Taylor says, “Every job in retail is a combination of art and science – a balance between the visual beauty and productivity.” Merchants must understand their unique customers’ wants, such as huge Alaskan November swimwear demand, Utah’s preference for long, black skirts, and eagerness for all things purple and gold each spring in Mardi Gras destinations like Galveston and New Orleans. Taylor concluded saying, “You must be adaptable to get into your target customer’s head and select the product SHE wants.”

Advisors’ Corner Leslie has been at home getting to know the newest member of her family, Cora Catherine, born at the beginning of May.

Guest Professors Jim Rogers, Chairman and CEO of KOA, Inc. (Kampgrounds of America, headquartered in Billings, Montana), was a guest speaker in Len Berry’s Services Marketing classes for both the MBA and MS sections. Jim spoke to the students about branding as KOA bright yellow engulfed the room – from Jim’s bright yellow shirt to his PowerPoint slides which bathed the room in a bright yellow glow. Jim gave each student a remembrance of KOA – an official (bright yellow) KOA Rolla Roaster for cooking marshmallows or hot dogs over a campfire. Jim’s career began in the hospitality industry and he worked with Harrah’s Nevada for about 20 years; among his positions with Harrah’s, was as General Manager of Harrah’s Reno casino. Jim Rogers and Len Berry (this is not a KOA Rolla Roster)

Len Berry’s traditional “last day of class” photo with his MS students.

Guest Professors Two members of senior management at LIDS Sports Group, Inc., presented in Len Berry’s MKTG 673 Services Marketing sections for MBA and MS students on April 16. Ken Kocher, President and Carla Rodecap, Director of Human Resources, traveled to Aggieland from Indianapolis to spend the day in the classroom. They also interviewed several of Len’s students for internships at Lids’ headquarters this summer. This is the second year the Lids’ executives visited Len’s classes and hired our Masters/MBA students. Carla Rodecap, Ken Kocher, and Len Berry

Lisa Troy, Shane Hinckley, and Roland Larino

Student Instructor Roland Larino’s BUSN 302 Business of Sports class finished the semester with two TAMU Sports administrators as speakers. Shane Hinckley, Vice President of Business Development at Texas A&M explained how he and his staff focus on many areas, including managing and developing business relationships, external brand management, trademark management, and licensing of goods. He spoke about how the move to the Southeastern Conference has impacted the licensing of Texas A&M apparel and how the move will strengthen the TAMU brand. Mr. Hinckley provided great insight into what the university is doing to promote the new association with the SEC, as well the goals his office wants to accomplish when TAMU officially enters the league on July 1st.

Jason Cook, Vice President of Marketing and Communications, spoke about the move to the Southeastern Conference and how it was truly a 100-year decision for Texas A&M. He began by debunking many of the myths surrounding the Southeastern Conference in terms of academics and geography, while showing what the SEC truly offers A&M with regards to those areas. He discussed the issues of stability and of increased television revenue in the SEC as compared to the Big 12 and how expanding the conference's geographic footprint by bringing in the Jason Cook Dallas, Houston, San Antonio, Kansas City, and St. Louis markets can lead to a financial windfall for member institutions when the SEC Network is inevitably launched. Mr. Cook also discussed the Texas A&M brand and how the SEC gives the school an opportunity to strengthen and extend it nationally through the increased exposure that comes with the "Conference of Champions." Dr. Lisa Troy, Roland’s mentor during his teaching experience, had this to say about it, "Roland's expertise in the area of college sports and his concern for the students made this a great class. I look forward to seeing him in action when he teaches it again in the fall."

BUSN 302 "The Business of College Sports" By Roland Larino, Student Instructor, BUSN 302 "The Business of College Sports,“ and Intern, Texas A&M Sports Properties, 50 Yard Line Kyle Field To truly understand and appreciate the business behind college sports, it is essential to experience it firsthand. After all, what truly makes NCAA athletics such a popular spectacle is the pageantry and tradition that goes into college sports. Each student in BUSN 302 “Business of College Sports” attends three “College Sports Experiences” such as lectures, outings, games affiliated with the Texas A&M Athletics Department. One of the more popular events was a tour of the new Blue Bell Park. During Aggies vs.

Oklahoma baseball game, students explored the renovated press box, club level, luxury suites, and dugout at Olsen Field. Dave South, the voice of Aggieland, greeted the group before calling the game. Students even participated in on-field marketing promotions, including the immensely popular Slovacek Sausage Race. This high-value learning experience finished with a late-inning comeback by the Aggies to beat the Sooners and win an important Big 12 Baseball series. Whoop!

BUSN 302 students, Sterling Knapp and Vaughn Miller, participated in the immensely popular Slovacek Sausage Race with Lisa Troy’s daughter, Savannah. (This photo makes me LOL.– Ed.)

Continued next page

BUSN 302 “…College Sports" (cont.)

Lisa Troy, Sterling Knapp (no longer disguised as a Slovacek sausage) , Cody Foster, and Roland Larino

Roland Larino, Sterling Knapp, Jacquelyn LePori, Micaela Fox and Sanjay Suresh

Another class tour included 12th Man Productions, the video and television arm of the Texas A&M Athletics Department. Charlene Kroeker explained video broadcasting for Texas A&M sporting events, including replays, advertisements, and features that stream across the screen at football, basketball, and baseball

games. 12th Man Productions creates and broadcasts these streams from its control room. At the Aggie Sports Connection studio, students saw where televised coach shows are filmed and edited. The class’s hands-on sporting adventures concluded with the annual Maroon vs. White Spring Football Game. Students watched the game from the sidelines and assisted Texas A&M Sports Properties raising the Allstate Field Goal Net for each extra point and field goal attempt. This is one of the largest in-game sponsorship activities for the athletics department. It is the only one handled solely by students. Despite having to overcome a strong wind during the game, the students did a great job. Next semester, students will raise the Allstate Net during Texas A&M’s first season in the Southeastern Chuck Thornally and Vanessa Martinez Conference.

Update on MS Students’ Messina Hof Project Students in Manjit Yadav's MKTG 675 (Marketing Strategy) class recently finished their semester-long project for Messina Hof. The project focused, in part, on using Google's AdWords to increase attendance at Messina Hof's annual Wine and Roses Festival. Messina Hof gave the students free rein with their online advertising account for a month and a modest budget to work with. The students developed the campaign and steadily increased clicks/week throughout the campaign for a total of 1000 clicks on their Messina Hof ads. During the course of the campaign they discovered that targeting Aggie parents during Parents Weekend when they were expected to be in the B/CS area for university events was a productive strategy. The students celebrated the conclusion of the project by participating in the Grape Stomp competition at the Wine and Roses Festival. If you’re wondering about what is in the bottle being held by the gentlemen in the photos… it’s probably not what you think. They are proudly displaying the fruits of their grape stomping labor. It’s the must (pulp and juice) of red or black grapes that undergoes fermentation together with the grape skins to produce red wine. Luckily for our students, they were able to observe other teams and develop secret strategies designed to fill their bottle with must faster than the other teams. The grape stomping competition was hard-fought and intense. Sadly, our Ags did not finish first, but, they all seemed very happy with the results. Grape stomping wenches peruse their victims.

We want to include your news items in the next issue. Please submit them to Laurie Marshall at lmarshall@mays.tamu.edu,