JOHN M. OLIN SCHOOL OF BUSINESS
WASHINGTON UNIVERSITY
Fall B 1998
MARKETING MANAGEMENT
PROF AMBAR RAO
Tel: 935-4515
rao@wuolin.wustl.edu.
Course Objectives:
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•
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To develop the ability to define and analyze the decision problems dealt with by marketing managers, and
to understand the strategic role of marketing within the organization.
To focus on the “3C’s and the 4P’s” as a framework for analysis.
To refine analytical abilities and the ability to express and defend results orally and in writing.
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Required Text:
Philip Kotler (1996), Marketing Management: Analysis, Planning, Implementation, and Control, 9th edition,
Prentice Hall.
Cases and Readings:
Most daily readings are taken from the text above. All cases and some additional readings are in the course packet
you must purchase. Additional notes may also be posted on the web (connected to my home page), or distributed
via email.
Help Sessions:
These sessions on Tuesdays from 2:30-4:00, will amplify on the case discussions and lecture material, will answer
questions you may have, and will be conducted by the teaching assistants for this course. Please attend these
sessions to enhance your understanding of the material and to be able to prepare the cases better. I am generally
available in my office most days, and you can always schedule an appointment. You may, of course, reach me by
e-mail or phone.
Course Mechanics:
The course makes use of the case method of instruction; successful use of the case method depends on careful and
thorough preparation, and active class participation. The quality of your preparation and the resultant participation
will be an important determinant of the grade received in the course.
Organization:
Each class session is broken into two parts: the first part is usually a case to be analyzed and discussed, and the
second part is a lecture. The lecture covers material that will be useful background for the case assigned for the
next session. The readings assigned for each session are meant to amplify on the lecture. Remember, the lecture
and the readings will not cover all the problems that arise in the case that follows, but will highlight important issues
in the case topic area. Similarly, a case may call upon ideas that have not been formally covered in the lectures.
Remember the cases are actual managerial decision situations and cannot be neatly pigeon-holed as the lectures can.
Preparing A Case:
In preparing case analyses, the following procedure will be helpful. First read the case quickly to develop an
overview of the problem and identify major issues. You can organize these issues around the themes of company,
customer, and competition. This reading will enable you to develop a precise problem statement. Within each of
these themes consider the key marketing variables and their impact - product, promotion, place and price.
Next, read the case carefully, taking notes organized around the major issues, and including action
recommendations.
Finally, for all but the individual assignments, discuss the case with your study group to refine your understanding
of the case and polish the recommendations.
Remember, the case provides all the company facts that should be used: you should not go beyond it in your quest
for information. Under no circumstances should the company be called, knowledgeable sources interviewed, or
library/on-line searches conducted. In addition, because the class meets in two sections, there should be no
communication between sections until both have met.
Attendance is required. You are required to attend the course section to which you are assigned. Your instructor
must be notified in advance if you cannot attend due to illness or family emergency. An unexcused absence from a
class will result in loss of credit for that class.
Preparing a Written Report:
A part of your course credit will be based on written case analyses. These written reports are limited to 1000
words. You will be held strictly to this limit. Appendices and exhibits that you attach to your report will not count
against the 1000 word limit.
Given the word limitation, do not use up this scarce resource is reproducing case information. You should assume
that the reader is completely familiar with the case. If you feel it is necessary to mention specific paragraphs or
data, refer the reader to the appropriate page(s) in the case. Begin your write up with a brief Problem Statement
(50 words approximately). The Problem Statement reflects your understanding of the key managerial decision
problem and any constraints that apply. Follow this with the Analysis. The Analysis should use the 3C’s/4P’s
methodology, but again, do not reproduce case data in the write up. The final section contains your
Recommendations. Recommendations should be justified based on the preceding analysis. Unsupported
recommendations are not acceptable. Neither is the postponement of decision making to await additional research.
For identification, please put your group number on the cover of your case report. Do not put your names on the
cover sheet. This will eliminate any possible biases in grading.
Olin School Code of Conduct:
The code of conduct will be strictly enforced. In particular, remember that individual assignments are just that they represent your individual work and are not to be discussed with any one until they are handed in. Group
assignments may not be discussed outside the group, until they are handed in. Review the code of conduct and
consult the instructor if you have any questions.
Grading:
The weights used in arriving at the final grade for the course will be as follows:
First written case analysis:
Second written case analysis:
Third written case analysis:
Final case analysis
Class participation
R&A Bailey and Co.
Calyx and Carolla
Intel
group assignment
group assignment
group assignment
individual assignment
20%
20%
20%
20%
20%
For group assignments, each group member will be asked to rate the contributions of each other group member in
completing the assignment. These peer ratings may be used to modify the grade you receive for the assignment.
Class Participation:
Classes will generally start with a list of students who are expected to participate on that session, and a student on
the list being called on to lead-off the discussion. This may lead to an open discussion in which students whose
names are not on the list are also encouraged to participate. Other students from the list may then be similarly
called on to discuss other aspects of a case, followed by open discussion.
The effectiveness of a manager, to a large extent, is determined by his or her skill with oral presentations. One of
the primary objectives of this class is to give students the opportunity to develop these skills. The characteristics of
effective class participation are suggested by the following questions:
How creative and insightful is the comment? Does it move the class forward and into new territory? Is there a
willingness to test new ideas or are all the comments safe, non-controversial ones?
Do comments take into consideration the ideas suggested by others earlier in the class or are they isolated and
disjointed? Do they reflect good listening and interpretive and integrative skills?
Do the comments show evidence of thorough preparation, or only a casual reading?
Is the participant willing to interact with others by asking questions or challenging conclusions?
Finally, remember, it is the quality of contributions and not quantity or frequency that is important.
In order that you obtain credit for class participation, make sure that you display your name card in all sessions.
Class Schedule and Assignments
1.
10/26
Introduction
Marketing, Customer Orientation and Marketing Decision Variables
Lecture
Market segmentation and positioning
Readings:
Kotler, Chapter 1, 9, 10.
2.
10/28
Case:
Lecture:
Readings:
3.
11/2
Case:
4.
11/4
Case:
Corporate and Product Positioning
Mazda Miata
The ad agency for Mazda must recommend a positioning for a new car: the Miata. The
Miata positioning must not only fit the product, it must enhance the entire Mazda product
line.
Discussion questions:
What is Mazda’s corporate strategy, and what should be the Miata’s role within that
strategy?
How would you define the target market for the Miata? What would the typical
consumer buying process look like for this target market?
What are the implications of your target market definition for the positioning alternatives
being considered by FCB? What positioning would you recommend?
What are the implications of your recommendation for the advertising of the Miata? For
its pricing?
The first mover advantage
Kotler: Ch 13
Schmalensee (AER June1982) Introduction and Section 6
Carpenter and Nakamoto (JMR Aug 1989) Introduction and Implications section
Pioneering Advantage/Disadvantage
R&A Bailey and Company
Bailey’s is the pioneering cream whiskey. Using a unique manufacturing process and a
positioning which highlights its Irish heritage, Bailey’s has established a new category,
in which it is the leader. Several competitors have now entered the cream liqueur
market. Management must decide whether or not to expand Bailey’s manufacturing
capacity.
Written report (problem statement, analysis, and recommendations) due at the beginning of class. Review the
instructions on written reports above. This is a group assignment, one report per group.
Lecture:
The adoption of innovative products
Reading:
Kotler Ch 12
Creating a Technology Market
Cochlear Bionic Ear
The Cochlear bionic ear can substantially improve hearing for the deaf including the
“profoundly deaf”, people who have been deaf since birth. In spite of its promise, the
product is not selling well.
Discussion questions:
How would you assess the marketing performance as opposed to the technological
Lecture:
Readings:
5.
11/9
Case:
Lecture:
Readings:
6.
11/11
Case:
Lecture:
Readings:
7.
11/16
Case:
8
11/18
Case:
performance of Cochlear to date?
Analyze the market: what and who influence the decision-making process? How has
this affected the development of the market?
Evaluate Cochlear’s marketing strategy to date. What would you do now?
Evaluating new product potential prior to test marketing
Kotler Ch 11
New Products, Segmentation, and the Impact on the Product Line
Colgate-Palmolive: Precision Toothbrush
Colgate has developed a revolutionary toothbrush, which is highly effective against gum
disease. Colgate currently markets other toothbrushes of lower quality than the new
Precision product. Competitors are also beginning to introduce high quality
toothbrushes, with many of the same attributes as Precision. What positioning should be
selected for Precision?
Discussion questions:
What changes are occurring in the toothbrush category? Assess Colgate-Palmolive’s
competitive position
How is the toothbrush market segmented? Are the segment sizes static or dynamic?
Prepare a spreadsheet, using the case data, comparing the impact of each of the two
positionings on Colgate. Bring this spreadsheet to class, as it will inform a large part of
the class discussion.
What marketing recommendations would you make to Steinberg?
Channel Strategy
Kotler Ch 16
Business to Business Marketing: Adding Value to a Commodity
Becton-Dickinson Vacutainer Division
BD’s Vacutainer Division produces blood collection tubes and needles for sale to
hospitals, commercial labs and physicians’ offices. They are negotiating a contract with
APG, a large hospital buying group; issues include pricing, labeling, and distribution.
The contract will have an impact beyond APG, on negotiations with other buying groups,
relationships with its current distributors and the division’s marketing and sales strategy.
Discussion questions:
How has the health care industry changed from pre 1983 to post 1983?
What are the reasons for BD’s success?
Why is it good to have such intense distribution? What is its impact on end user prices
in the market-place?
The value of a customer
Kotler, Chapter 23
Pine, Peppers, Rogers (1995) “Do You Want To Keep Your Customers For Ever?” HBR
March-April.
Blattberg, Deighton (1991) “Interactive Marketing: Exploiting the Age of Addressability”
Sloan Management Review, Fall.
Managing Customer Equity: Direct Marketing
Calyx and Corolla
Calyx and Corolla is marketing flowers via direct mail. Using exclusive contracts with
flower growers and delivery via Fedex, they have cut out the “middle man”, so that they
can supply flowers which are fresher than competition. They have a loyal customer
base. Can they expand using TV advertising to attract new customers?
Lecture:
Pricing
Readings:
Kotler Ch 17
Written report (problem statement, analysis, and recommendations) due at the beginning of class. Review the
instructions on written reports above. This is a group assignment, one report per group.
Pricing
Gervais-Danone/Dr. Oetker (A)
Gervais-Danone is the industry leader in the German “pudding-with-topping” market,
but Dr. Oetker, a late comer, has gained share rapidly at its expense. Gervais-Danone
Lecture:
Readings:
9.
11/30
Case:
Lecture:
Readings:
10.
12/2
Case:
11.
12/7
Case:
has tried to combat this first, by increasing advertising, and then by reducing prices.
Competitors follow, resulting in a general reduction in profits. This is a complex case,
which requires a lot of data analysis and statistical work, as is usual in pricing decisions.
Please prepare the following for aid in discussion:
What has happened to price and advertising spending since 1990? What are the reasons
for the change?
What is the impact of the different marketing mix variables on market share. Be careful
in how you define the independent variables and run regression(s) to answer the question.
Note: for some variables regression is not required.
What has been the impact of competitive dynamics since 1980 on market shares and
industry profitability? Again, run the appropriate statistical analyses to help clarify the
issues here.
How will the different competitors behave in 1983 and what does this mean for market
shares industry growth, and profitability?
Sales Promotion
Blattberg, Neslin(1989):”Sales Promotions: The Long and the Short of it”, Marketing
Letters, 1,1, Dec 97
Price Promotion
Hartmann Luggage
The president and vice-president of marketing have different views about the value of
price promotions for Hartmann. The immediate issue is whether to run a promotion in
the coming year, and if so, what product to promote, and on what terms.
Discussion questions:
Describe consumer behavior in the luggage market. How is luggage bought? Who are
the major manufacturers? What are the implications of Hartmann’s strategy?
What are Hartmann’s strengths? Why have they been successful?
How can they achieve their strategic objectives?
Was the 1978 promotion successful?
Should they run a promotion in 1981? Assuming that they do what are the specifics of
the promotion?
Researching a new advertising campaign
Kotler Ch 20
Selecting and Implementing an Advertising Strategy
Intel Inside- A Multimedia Case
Students must recommend production of one or two Intel TV ads to run in the UK in
October 1993. You have a total budget to cover the production of concepts in animatic
form, and testing the concept either qualitatively in focus groups, or quantitatively with a
survey. You need to trade off the number of concepts developed and the research
expenses, while staying within the fixed budget.
Readings:
Kotler Ch 21
Written report (use the format in the case) due at the beginning of class. This is a group assignment, one report
per group.
Combining Fashion With Industry
United Colors of Benetton
The case describes the creation and development of Benetton S.p.A. Founded in 1962, it
has become Europe’s largest clothing company. The focus of the case discussion will be
on their unorthodox communications strategy, and how it should evolve.
Discussion questions:
What are the major factors that help explain Benetton’s early success?
What are the specific elements of the Benetton System that allowed them to combine
fashion with industry?
What are the unique aspects of Benetton’s communication philosophy?
How effective has their communication been?
What should they do now and into the near future?
Pick up final examination case. This is an individual assignment. Do not discuss this assignment with any one.
Due 12/15 by 5 PM