Marketing Strategy
466 71
Winter 2007-2008
Instructor:
Phone:
E-Mail:
Office:
Tim Calkins
(847) 467-3209
t-calkins@kellogg.northwestern.edu
Jacobs 498
Updated: 11/5/2007
Course Description
The marketing strategy course is focused on helping you become strategic marketing
leaders, so that you can create, gain support for and execute strategic marketing plans
that will build strong, profitable and enduring brands and businesses.
The course builds on the material covered in Marketing 430 and other marketing
classes; the course reinforces that material and introduces new concepts.
The course is certainly valuable for people who plan to go into marketing. It is also
useful for people who are going into finance, strategy, operations and other functions.
The course takes a broad view; every function is involved in marketing strategy.
The course is broken into five sections or modules.
Module A: Fundamentals. This section covers some marketing strategy basics,
including why marketing strategy matters, customer advantage and strategic
marketing plans. The section includes a review of positioning and differentiation.
Module B: New business strategy. In this section, we focus on strategies for
new business creation, including strategies for established and emerging
categories.
Module C: Established business strategy. This section focuses on strategies to
grow established businesses, including margin strategies, core business growth
strategies and new product strategies.
Module D: Defensive strategy. In this module, we look at defensive marketing.
We review why defense is needed and how to develop strong defense plans.
Module E: Pulling it together. In the last part of the course we look integrating all
the parts. This includes student business update presentations.
The class includes cases, readings, and a computer-simulation, Markstrat.
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Marketing strategy is a challenging course. In particular, the Markstrat simulation
requires a substantial time commitment. However, the class is a valuable learning
experience; the material will help you analyze and understand businesses, develop and
gain support for marketing plans and ultimately deliver strong business results.
Course Requirements
Teams
All of the class assignments are completed in teams. We will form teams in class 1.
Team size depends on class enrollment; we have to get to 10 or 15 teams for the
simulation.
As part of the evaluation process, group members grade each others participation.
These grades play an important role in the determination of final grades. Weak team
feedback can and generally will reduce a student’s grade by one full letter.
Class Participation (10% of class grade)
Class participation is critical to the success of the course, as the quality of the discussion
is largely in your hands. Cold-calls are not uncommon. Please plan to attend all classes
and to arrive ready for the case or discussion. In addition, please plan to stay for the
entire class. I will do my best to start and end on time. In week 2 I’ll send around a
seating chart.
Computers are not allowed to be used in class. Surfing seems to be an inevitable and
unfortunate result, and it is distracting for everyone.
Markstrat-Team (50% of class grade)
Each team will be assigned a Markstrat company to manage. Your task will be to set
objectives, develop strategies to achieve those objectives, and implement your
strategies with appropriate tactical decisions over the course of the semester.
Teams develop three business updates during the semester. The first two are written
and the third is a presentation to the class. The first two updates count for 10% of the
class grade and the third update counts for 20% of the class grade.
Actual Markstrat results count for 10% of the class grade.
Case Analysis-Team (15% of class grade)
Each team will submit one case analysis. Most teams will work on the Marlboro case,
with two teams presenting Marlboro and the rest completing a written analysis.
Two teams will present the Steinway case instead of working on the Marlboro case.
Early in the semester I’ll determine which teams will present. The presentations are 10
minutes in length, and the write-ups are no more than four pages.
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Final Assignment-Team (25% of class grade)
For the final assignment, students will develop a marketing plan for a company or
organization of your choice. The paper should not exceed seven pages including
exhibits, and should include the one page marketing plan summary discussed in class.
Course Administration
I am on campus most days. I am happy to meet to discuss the course, Markstrat,
careers and life; just call or send an email to set up some time.
I will be using Blackboard to post announcement, class notes and other materials.
Please check Blackboard regularly for updates.
The attached schedule shows the class plan, with topics, assignments and readings.
The class schedule will almost certainly change during the semester due to pacing and
guests. The latest schedule is always posted on Blackboard.
Required Readings
Larreche and Gatignon, MARKSTRAT Online Student Handbook (StratX 2003)
This is a required book; you can’t play the Markstrat simulation without it. So please
purchase this book promptly. Please note that you are really purchasing the software
license, so used books don’t generally work.
Case packet
I’ve pruned the case material down substantially over the years because the simulation
takes a lot of time. As a result, completing the readings for each class is important.
Optional Readings
Tybout and Calkins, Kellogg on Branding (2005)
This is an excellent book that you really should acquire and read. Take that with a grain
of salt, however, because I am, for obvious reasons, biased. That said the book
contains a number of great chapters. Two of them are in the case pack. The rest are
worth a read, too.
Walker, Mullins, Boyd and Larreche, Marketing Strategy (6th edition, 2007).
This text provides a more academic review of the concepts we will discuss. Given the
size of the case packet and other work in the course, however, I’ve made it optional
reading.
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Kellogg School of Management
Marketing Strategy
Winter, 2007-2008
Updated 11/5/2007
Session
1: 1/8
Topics
Assignments for this Class
Course Introduction
Markstrat Introduction
Read: Markstrat Online Student Handbook
Submit: Team lists
Markstrat decision 1 due 1/13, 11:30 PM
2: 1/15
Marketing Strategy Fundamentals
Poland Spring Case
Prepare: Poland Spring case
Read: What is Strategy?
Read: Brand Positioning
Optional reading: KoB, chapters 14 and 15
Optional reading: Text, chapter 6
Markstrat decision 2 due 1/20, 11:30 PM
Markstrat update 1 due 1/20, 11:30 PM
3: 1/22
New Business Strategy-1
Carolina Lunker Sauce Case
Read: Writing Great Marketing Plans
Read: Market Driving Strategies
Read: Eager Sellers
Prepare: Carolina Lunker Sauce Case
Attend: Team meetings
Optional reading: KoB, chapter 4
Optional reading: Text, chapter 7
Markstrat decision 3 due 1/27, 11:30 PM
4: 1/29
New Business Strategy-2
Crestor Case
Prepare: Crestor Case
Read: First Mover Advantages
Read: Do you always have to be the First….?
Markstrat decision 4 due 2/3, 11:30 PM
Markstrat update 2 due 2/3, 11:30 PM
5: 2/5
Established business strategy-1
Lenovo Case
Read: The Image and the Brand
Prepare: Lenovo Case
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Markstrat decision 5 due 2/10, 11:30 PM
6: 2/12
Established business strategy-2
Marlboro Case
Read: Brand Portfolio Strategy
Read: Extend Profits, No Product Lines
Prepare: Marlboro case
Submit: Marlboro case analysis
Optional reading: KoB, chapter 5
Optional reading: Text, chapters 9 and 10
Markstrat decision 6 due 2/17, 11:30 PM
7: 2/19
Guest Speaker
Markstrat decision 7 due 2/24, 11:30 PM
8: 2/26
Defensive strategy
A.1. Case
Read: Why Good Companies Go Bad
Read: Meeting the Challenge
Prepare: A.1. case
9: 3/4
Markstrat presentations
Prepare: Presentations
10: 3/11
Steinway case
Markstrat debrief
Course summary
Prepare: Steinway case
Final assignment due 3/17, 11:30 PM
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Kellogg School of Management
Marketing Strategy
Assignments
Markstrat Management Update 1
Provide management with a marketing plan for your company, not to exceed 4 pages
including exhibits. Plans should be clear, focused and convincing.
Updated should include:
-Objectives: Your goals for the 7 periods, including profit
-Strategies: Key initiatives to deliver your objectives
-Plans: Plans to execute against your strategies
Markstrat Management Update 2
Provide senior management with an update on your progress to date, not to exceed 4
pages including exhibits. Plans should be clear, focused and convincing.
Updates should:
-Link back to your initial objectives and strategies
-Highlight drivers of your results
-Lay out your plan going forward
Markstrat Management Update 3
Prepare a presentation for management to review your progress to date and plans going
forward. Presentations should be 10 minutes in length. There will be additional time for
questions.
Presentations should:
-Link back to your objectives and strategies
-Highlight key drivers of your results
-Lay out your plan going forward
Marlboro Case Assignment
Answer the following question: Was the Marlboro strategy rolled out by PM a good
idea? Why or why not?
Two teams will present this assignment; the rest will complete a 4 page paper, including
exhibits. Excellent papers and presentations will put forth a clear position and provide
strong support.
Final Assignment
Develop a marketing plan for a company or organization of your choice. Play the role of
a consultant hired to develop the plan. Set objectives, identify strategies and provide
sample tactics/plans. The plan should not exceed seven pages including exhibits, and
should include the one page plan summary discussed in class. Excellent plans will have
clear and linked objectives, strategies and plans and will be convincing.
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Kellogg School of Management
Marketing Strategy
Case Questions for Class Discussion
Poland Spring
Congratulations. You’ve just been hired to replace Mike Schott. What will you focus on
first? Why?
Carolina Lunker Sauce
You have been hired to advise the Cobb family. Should they reduce the price of
Carolina Lunker Sauce as requested? Why or why not?
Crestor
How did Lipitor overtake Zocor?
How should AstraZeneca launch Crestor?
Lenovo
Why did Lenovo acquire IBM’s PC division?
What branding challenges does Lenovo face? How should the company address them?
A.1.
1. Should A.1. defend? Why or why not?
2. If A.1. should defend, what should it do?
Steinway
1. How strong a brand is Steinway?
2. What is the core business challenge facing Steinway?
3. Should the new owners invest in the Boston by Steinway brand? Why or why not?
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Kellogg School of Management
Marketing Strategy
Group Evaluation Form
Please list below each member of your group. For each person, assign a grade (A, B,
C, D, F) that reflects their overall contribution to the group’s output. Please consider the
quality and quantity of their work. Responses are confidential, and can have a
substantial impact on final class grades. Feel free to provide comments.
Your name:
Your team (industry and color):
Team Member
Grade
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Comments:
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