Haas School of Business
University of California at Berkeley
Marketing Organization and Management (EWMBA 206-2B)
Fall 2007
Instructor:
Office:
Phone:
Email:
Class:
Professor Ganesh Iyer
F699
643-4328
giyer@haas.berkeley.edu
T, 6.00 – 9.30 PM
Faculty Assistant:
Doanna Seaward, Tel (510) 642-2734, dseaward@haas.berkeley.edu
Office Hours:
Tuesdays 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.
Course web-site:
http://groups.haas.berkeley.edu/marketing/COURSES/ewmba206_fall07.html
Text Book:
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:
Class Participation
Two written case briefs (individual)
Group assignment
Final exam
20%
20%
20%
40%
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.
Step 1, Individual Preparation:
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.
2
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
Week
1 (10/09)
Assignment
Form Groups
5 (11/06)
Individual case report due (Optical Distortion)
7 (11/20)
Individual case report due (Calyx and Corolla)
9 (12/04)
Group Assignment
3
DETAILED OUTLINE OF SESSIONS
WEEK 1:
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.
CASE:
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.
STUDY 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?
ASSIGNED READING:


This syllabus and course description. A review of the syllabus materials will give you a good idea of the
structure and content of the course.
Levitt, “Marketing Myopia” HBR Classic, Reprint R0407L.
SUPPLEMENTARY READING:

Kotler & Keller textbook, Chapter 1, pp. 4-30.
4
WEEK 2:
CUSTOMERS COMPANY & COMPETITION
CASE:
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.
STUDY QUESTIONS:
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
disadvantages of being a first-mover?
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?
ASSIGNED READING:

Kotler & Keller textbook, Chapter 10, pp. 310-317 on developing a brand positioning strategy.
5
WEEK 3:
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.
CASE:
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.
STUDY QUESTIONS:
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 the explanations for the differences?
3. Are there distinct attitudinal segments? If yes, how well can they help separate out the choosers from the
non-choosers?
4. What type of segmentation scheme would you propose to help separate out the choosers from the nonchoosers?
ASSIGNED READING:



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
analyzing consumer preferences.
Kotler & Keller textbook, Chapter 8 pp. 239-268, Identifying market segments and targets.
6
WEEK 4:
BRANDING AND MEASURING BRAND EQUITY
CASE:
Intel Inside
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.
STUDY QUESTIONS:
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?
ASSIGNED READING:



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.
7
WEEK 5:
PRICING
CASE:
Optical Distortion
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.
STUDY QUESTIONS:
1. What characteristics of the ODI lens make it appealing or unappealing to different types of chicken
farmers?
2. What geographic areas and market segments should ODI focus its efforts?
3. What pricing policy should ODI adopt?
ADDITIONAL DISCUSSION CASE:
Coca-Cola’s New Vending Machine (A): Pricing to Capture Value
ASSIGNED READING:

Kotler and Keller, chapter 14, pp. 433-461.
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WEEK 6:
GOING TO MARKET
CHANNEL MANAGEMENT STRATEGY
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.
CASE:
Goodyear: The Aquatred Launch
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.
STUDY QUESTIONS:
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?
ASSIGNED READING:

Kotler & Keller Chapter 15, pp. 468-498.
9
WEEK 7:
DIRECT MARKETING STRATEGY
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.
CASE:
Calyx and Corolla
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.
STUDY QUESTIONS:
1.
2.
3.
4.
What are the strengths and weakness of the Calyx and Corolla formula?
What steps should Ms. Owades and her associates take to fully develop the formula?
What is the value of a C&C customer using their current direct marketing approach?
Should C&C use a TV ad approach to acquire new customers?
ASSIGNED READINGS:

Elie Ofek: “Customer Profitability and Lifetime Value” (HBS 9-503-019)
10
WEEK 8:
COMMUNICATION AND ADVERTISING
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.
CASE:
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.
STUDY QUESTIONS:
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
campaign were most important?
ASSIGNED READING:

Kotler and Keller textbook, Chapter 18, pp. 568-597, on managing mass communications.
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WEEK 9:
COURSE SUMMARY
INTEGRATING THE MARKETING MIX
CASE:
McDowell’s Vintage
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
12
BRIEF OUTLINE
Week
Session Topic
1.
(10/09)
Introduction:
Part 1: Introduction to Marketing Management (Framework for Marketing Management)
Part 2: Case: Bombardier (Marketing Myopia)
2.
(10/16)
Customers, Company and Competition
Case: Product Team Cialis: Getting Ready to Market
3.
(10/23)
Customer Analysis and Market Segmentation
Case: Ford Ka
4.
(10/30)
Product Strategy and Branding
Case: Intel Inside
5.
(11/06)
Pricing
Case: Optical Distortion, Coke Vending Machines.
6.
(11/13)
Distribution and Going to Market
Case: Goodyear: The Aquatread Launch
7.
(11/20)
Direct Marketing and CRM
Case: Calyx and Corolla
8.
(11/27)
Advertising Lecture
Case: BMW roadster, Non Traditional Advertising
9.
(12/04)
Integrating the marketing mix
Case: McDowell Vintage
Main Takeaways, Course Wrap-up
Exam Questions
13