Michael Haenlein is teaching courses on customer value management, customer relationship management (CRM), marketing research and pricing strategy and tactics at the executive, PhD, MBA and postgraduate level at ESCP Europe. He equally provides customized training programs for companies in these three areas of expertise.
In many countries, including the US, executives of publicly traded firms have the legal obligation to maximize their company’s profits. Hence, with the potential exception of non-profit organizations and some privately held companies, the creation and maximization of shareholder value is a key managerial concern for every CEO. While many different marketing actions can help to create value for customers (e.g., developing superior products, building brand equity through advertising or setting up a unique distribution structure), the options to extract value are more limited. Leaving aside purely financial operations (e.g., investing excess cash in financial markets), the only source for profit and ultimately shareholder value creation are a firm’s customers who pay a given price for specific products or services. This makes the concepts of Customer Relationship Management (CRM) and Pricing Strategy and Tactics the key building blocks of any firms value extraction strategy. The purpose of this course is to shed light on these two elements and to provide insights into how firms should manage customers in a profitable manner and set prices in ways to ensure an optimal and sustainable level of value extraction.
Traditionally, businesses have focused on sales and market share growth for competing in the marketplace, and generally adopted a "product-orientation". Today, however, businesses are working with the challenges of building a "customer-orientation" in their organizations, getting to know their customers better, building relationships with them to build customer loyalty, applying differential attention to customers that vary in their profitability to the company, as well as reducing costs and consequently improving the company’s bottom line. The mission of the course is to investigate the antecedents and consequences of implementing such a customer-oriented CRM (customer relationship management) strategy. The course will provide participants with insight on: what CRM and its conceptual foundations are; how CRM can be implemented in an organization and how critical key success factors look like; what the impact of new marketing channels on CRM is; what kind of approaches exist to manage customer appropriately, i.e. according to their relative attractiveness; which metrics can be used to determine the relative attractiveness of different customers or customer segments; and how data mining and the use of databases can help to improve Marketing decisions.
The objective of this course is to develop the skills of the scientific marketing research procedure. This includes problem definition, research design, data collection, analysis and interpretation. The course is intended to provide participants with an understanding of how to solve marketing problems and how to develop research projects to obtain information needed to make appropriate decisions. Among the topics to be discussed are the role of theory and hypothesis development in the research process; choosing the appropriate research plan and design; the construction of questionnaires; hypothesis testing (including methods of data collection); and the reporting of research results. In detail, the course has the following four objectives: to help participants gain an understanding of the role of Marketing Research; to increase participants' awareness of primary and secondary marketing data; to familiarize participants with the principal techniques of qualitative and quantitative data collection and analysis in Marketing Research; and to facilitate participants' ability to interpret research results - and to recognize research limitations - for decision-making purposes in marketing.
Although managers agree that pricing decisions have significant long-term implications, pricing is one of the least understood and most controversial aspects of managerial decision. While many marketing activities are geared toward creating value for the customer, sound pricing decisions are the fundamental tool businesses use to capture the value they create. This course focuses on pricing strategy and tactics from both theoretical and applied contexts. The course concentrates on how firms attempt to capture value and profits in the revenues that they earn. Additional focus will also be made on pricing dynamics and the reaction to competitor pricing at the firm and product level. The materials used in the course are intended to provide participants with a comprehensive exposure to making managerial pricing decisions. The course is designed to help students understand theoretical pricing concepts and apply them to a variety of applied marketing scenarios. The course illustrates with numerous examples how common tactical approaches to pricing undermine a company's ability to realize its profit potential.