Microsoft word - ewmba206_1bfall07.doc

Haas School of Business
University of California at Berkeley
Marketing Organization and Management (EWMBA 206-1B)
Fall 2007
Doanna Seaward, Tel (510) 642-2734, [email protected] Mondays 5.30 PM to 6.00 PM. Any other times may be scheduled by appointment. You may, of course, reach me by email or phone. http://groups.haas.berkeley.edu/marketing/COURSES/ewmba206_fall07.html Marketing Management 12e, Philip Kotler and Kevin Keller.
1.0 Course Objectives:

As the core marketing course in the Haas EWMBA program, Marketing Organization and Management is a survey course designed to provide students with an understanding of the basic concepts of marketing
management and experience in making marketing strategy decisions. Specifically, the course will cover issues
relating to the marketing concept, designing marketing strategy, and implementing marketing tactics. The
treatment will be both conceptual as well as with an emphasis on managerial decision-making.
2.0 Readings
The readings for the course and the cases will be contained in the course packet. In addition there will be recommended readings from the Kotler and Keller text book. Some additional readings will be handed out in the
class.
3.0 Class Format:
The course will make a mix of lectures, in-class exercises and the case method. The weights used in arriving at the final grade for the course will be as follows: Case Preparation and Mechanics (Please also read the Haas note on cases “How to make the case method work for you” on
the course web-site)
Full preparation by all class participants is essential to have fruitful class discussions. Merely reading the case will not be enough. The successful use of the case method depends on careful and thorough preparation, and active class participation. Therefore the quality of your preparation and the resulting participation will be a determinant of the grade received in the course. It is recommended that you first prepare each case through a minimum of two readings. It is best to first read the case quickly to develop an overview and then read the case more thoroughly a second time. This second reading will help you to identify the problem and the major issues. Make any notes and mark-up the case to help structure the facts. Once you have a good grasp of the case fundamentals, you can aim to develop specific recommendations for the problem that you have identified and to answer the discussion questions that I will provide for every case. Develop alternative solutions to the problem and debate the pros and cons of each solution. Consider the course material covered up to that point in time and the assigned readings (if any) for the day. As is often the case in actual practice, cases may not have all the data you would like. Nevertheless, an important part of the learning is based upon your developing a reasoned plan of attack based upon available data. In the class discussion, I will try and build an analysis of the situation and address the problems and issues in the case. Each person must be prepared to share her (his) individual views with the class. The objective of the class discussions is to examine all aspects of the situation: facts, suppositions, alternatives or final action. My task as the instructor is to facilitate the discussion and pull together the prevailing views and the important themes of the case. The overall quality of the discussion, however, is the collective responsibility of the entire class. Step 2, Group Discussion: After your individual preparation of a case you will benefit a lot by discussing your case analysis with your group. This group discussion is recommended for all cases except for the case which has been assigned
as individual graded assignments. In this group discussion you should try to see whether your colleagues have
alternative points of view and understand the rationale for such views
A typical request at the end of a case discussion is: What is the answer? The might not always be a single correct answer. In most case discussions there can be several viable "answers/alternatives" that are developed and supported by different participants in the class. What is important, therefore, is an understanding of the rationale for each alternative and the pros/cons of pursuing competing alternatives. Class Participation

Class participation will be graded after each class meetings. Please expect to be cold-called in this class. Lack of preparation can hurt your class participation grade. The characteristics of effective class participation are suggested by the following three questions. 1. Do the comments show evidence of analysis of the case and does it add to our understanding of the problem? 2. Does the participant go beyond simple repetition of the case facts and move the class into new territory? 3. Is the participant a good listener? Are the comments linked to relevant comments made by others? I will assume that you have read the reading assignments before coming to class. For each class, you should be prepared to discuss materials related to both the previous lecture and the assigned readings. I will also assume that you have thoroughly analyzed all cases and the assigned case questions and are prepared to discuss them in class. Please display your name card. Given that class participation is critical for this course your attendance is important. Attendance is mandatory for all class sessions. Absence from any class without prior notification will affect your class participation grade.
Written Assignments
Each student will submit three written assignments over the semester, two of which will be individual efforts while the other will be group assignment. Each assignment will be based on specific questions/issues that will be given to the students prior to the due date. The case write-up is due at the beginning of the class on the day the case is to be discussed. No assignment will be accepted late. More details about the assignments will be provided in-class. SCHEDULE OF ACTIVITY
Assignment
1 (10/08)
Form Groups

5 (11/05)
Individual case report due (Optical Distortion)

7 (11/19)
Individual case report due (Calyx and Corolla)

9 (12/03)
Group Assignment
DETAILED OUTLINE OF SESSIONS
INTRODUCTION TO MARKETING MANAGEMENT: In this introductory class we present a framework for marketing management that will unify the remaining sessions of the course. We will also go over the syllabus, the requirements of the course and other administrative details. Bombardier and Alstom (Insead case # 5117) Marketing management involves a process for approaching and solving marketing problems. In this session, we put the process into practice. We will use Bombardier and Alstom to introduce the marketing concept in action and to give you an appreciation for the strategic role of marketing orientation in a company. Because some study groups will not be able to meet in time to prepare this case, each individual student should prepare answers to the following discussion questions. 1. What should a marketing orientation mean for Bombardier? 2. Where is the problem, with Bombardier or with Amtrak? What could have been done to improve the relationship between Bombardier and Amtrak? 3. What are the reasons for Alstom to license its best technology to a competitor? • This syllabus and course description. A review of the syllabus materials will give you a good idea of the • Levitt, “Marketing Myopia” HBR Classic, Reprint R0407L. • Kotler & Keller textbook, Chapter 1, pp. 4-30. CUSTOMERS COMPANY & COMPETITION Product Team Cialis: Getting Ready to Market (HBS 9-505-038) A critical assessment of the customers, company and competitors is an essential precursor to setting a marketing strategy. In the case of Cialis, we analyze the strategy of product that is a follower. We focus on the effect existing competition has had on the customers and how existing and potential competitors might influence the marketing decisions of a second-mover. 1. Describe the purchasing process for erectile dysfunction drugs. What are the primary impediments to adoption? What does this imply about the focus of marketing efforts? 2. How did the first entrant, Viagra, affect the potential market? What are some of the advantages and 3. What are the competitive strengths and weaknesses of Viagra? Assess Levitra as a competitor? How should Cialis account for each of these competitors in its launch? • Kotler & Keller textbook, Chapter 10, pp. 310-317 on developing a brand positioning strategy. CUSTOMER ANALYSIS, MARKET SEGMENTATION AND POSITIONING We devote this session to presenting a framework that is useful for understanding customer behavior. We will start the session with the consumer behavior exercise. This will require you to interview and collect data from one customer. In the second half of the class, we will develop a framework and use it to operationalize the concept of market segmentation. The Ford Ka exposes you to the strategic and the market research aspects of market segmentation. Segmentation is a tool to divide heterogeneous markets into more homogeneous sub-markets based on the characteristics of customers. Targeting is the process of choosing the most attractive segments for the company to pursue. Together segmentation and targeting integrate the analyses of customers, company and competition into Positioning. Ford Ka: The Market Research Problem (Insead 06/2003-5066) Ford the third largest car manufacturer in Europe decided to launch the Ka in small car market. Before Gilles Moynier can get to the specifics of marketing strategy, Ford must analyze market research and decide on a market segmentation and target selection strategy. 1. Can different demographic variables separate out “Ka Choosers” and “Ka Non-Choosers”? 2. Are there differences in the way Ka Choosers and Non-Choosers perceive the small car market? What are 3. Are there distinct attitudinal segments? If yes, how well can they help separate out the choosers from the 4. What type of segmentation scheme would you propose to help separate out the choosers from the non- • Dolan, "Analyzing Consumer Perceptions," (HBS 9-599-110), pp. 1-8. Discusses methods for analyzing how consumers see the market, including profile analysis and perceptual mapping techniques. • Dolan, "Analyzing Consumer Preferences," (HBS 9-599-112), pp. 1-6. Discusses methods for • Kotler & Keller textbook, Chapter 8 pp. 239-268, Identifying market segments and targets. BRANDING AND MEASURING BRAND EQUITY The "Intel Inside" campaign has encountered resistance by IBM, Hewlett Packard and Compaq. Management must re-evaluate if the original objectives of the campaign are still attainable. 1. What are the pros and cons for subscribing to the campaign, from the OEM's point of view? 2. How has the campaign been doing up to the point of the case? 3. What is Intel trying to achieve here? 4. What really are the value and the role of Intel Inside? • Inside Intel", cover story, Business Week, 1 June 1992. • Squeeze, gently” Intel and microchips, The Economist, Nov.30 - Dec. 6, 1996. • Kotler and Keller, Chapter 9, 274-303, Creating Brand Equity. In this session we will also discuss the use of conjoint analysis to measure the value of the Intel brand name and how such measurement can be used for decision-making in the competitive marketplace for semiconductor chips. Optical Distortion Inc. is a small new company with a patent for an innovative new product which is a contact lens designed to impair the eyesight of chickens. The case deals with the problems faced by the company and marketing strategy that the company needs to design to launch the product. One of the main decisions that management needs to consider is the pricing policy for this product. 1. What characteristics of the ODI lens make it appealing or unappealing to different types of chicken 2. What geographic areas and market segments should ODI focus its efforts? 3. What pricing policy should ODI adopt? Coca-Cola’s New Vending Machine (A): Pricing to Capture Value • Kotler and Keller, chapter 14, pp. 433-461. Distribution Channels are the conduit for transfers between a firm and its consumers. Channel decisions are among the most critical decisions facing management. Channels take a long time to build and cannot be changed easily. The session focuses on channel design and management and the inter-relationships between channel decisions and the other elements of the marketing mix. In January 1992, Goodyear management is concerned with the impact of a new product, Aquatred, on channel relations. Specifically, Goodyear must decide whether to broaden its current distribution to include mass merchandisers, and if so, whether Aquatred should be available to these channels. 1. Assess Goodyear’s position in the tire industry? 2. How do customers buy tires? How can the market be segmented? 3. What is your evaluation of Aquatred’s strategic role and its marketing program? 4. Should Goodyear broaden its distribution to include mass merchandisers? Should they be offered Aquatred? ƒ Kotler & Keller Chapter 15, pp. 468-498. Advances in information technology, the growth of the Internet, and direct marketing technologies are increasingly allowing firms to target at the level of the individual customer. This session is devoted to how firms should leverage this ability to go direct to customers. Calyx and Corolla is marketing fresh flowers through direct mail and through the internet. Using exclusive contracts with flower growers and delivery via FedEx, they have cut out the "middle man," so that they can supply flowers that are fresher than competition. 1. What are the strengths and weakness of the Calyx and Corolla formula? 2. What steps should Ms. Owades and her associates take to fully develop the formula? 3. What is the value of a C&C customer using their current direct marketing approach? 4. Should C&C use a TV ad approach to acquire new customers? ƒ Elie Ofek: “Customer Profitability and Lifetime Value” (HBS 9-503-019) The first part of the class will provide an overview of the marketing communication mix. We present a framework for managing advertising: setting objectives, budgeting, message strategy, media planning, and measurement. The second half of the class will deal with non traditional marketing communications and the development of an integrated marketing communication (IMC) concept. Launching the BMW Z3 Roadster (HBS 9-597-002) In January 1996, executives at BMW of North America were in a position to review their innovative and non-traditional promotional campaign for the Z3 Roadster. 1. Evaluate the success of BMW’s promotional campaign for the Z3 roadster? Was it a successful implementation of the integrated marketing communication (IMC) concept? 2. What was the role of “non-traditional” media in the launch of the Z3 Roadster? Which elements of the ƒ Kotler and Keller textbook, Chapter 18, pp. 568-597, on managing mass communications. McDowell’s the largest manufacturer of alcoholic beverages in India is planning to launch an alternative to Scotch whisky in India. One of the main problems facing the company in developing the launch strategy is the positioning of this new product. COURSE SUMMARY AND TAKEAWAYS SAMPLE EXAM (10/08) Part 1: Introduction to Marketing Management (Framework for Marketing Management) Part 2: Case: Bombardier (Marketing Myopia) (10/15) Case: Product Team Cialis: Getting Ready to Market Customer Analysis and Market Segmentation (11/05) Case: Optical Distortion, Coke Vending Machines. (11/13) Case: Goodyear: The Aquatread Launch (11/26) Case: BMW roadster, Non Traditional Advertising Main Takeaways, Course Wrap-up Exam Questions

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