University of Missouri-Columbia
Advanced Marketing Management
MRKTNG 7470
Fall 2012
Professor Detelina Marinova
Office: 424 Cornell Hall
e-mail: marinovad@missouri.edu
Phone: 884-8052
Fax: 884-0368
Office hours:
Tue & Th 11:00-noon
Course Description and Objectives
The long-term competitive position of a modern business organization is tied to its ability to successfully
manage the marketing of its products and services. Accordingly, this class will focus on managerial
decision making and developing participants‟ skills to manage marketing activities at the strategic and
tactical level. Students will learn and practice effective marketing strategy development, marketing
planning and implementation of marketing mix decisions. To achieve its objectives, this course will
utilize case studies, interactive class exercises and advanced reading material to develop and sharpen
participants‟ knowledge in marketing management.
Course Prerequisites
MRKTNG 7460 and MBA Program consent required
Required Course Materials
1.
Packet of Cases and reading materials available at the Bookstore.
2.
Reading material posted on Blackboard or accessible through the business electronic databases in
the library (e.g. Business Source Premier, ABI Inform, Business and Company Resource Center,
Factiva).
Course Policies and Expectations
Class attendance is required and attendance will be taken during each class. During the second-class
session, a seating chart will be established and you will be asked to use this chart throughout the
semester. Given the importance of class participation (see below), I will also ask that you use name cards
so that I can learn your names as quickly as possible. If you miss a class, you are responsible to obtain
information regarding any class material, discussion, assignments, handouts, etc. Slides for each session
will be posted on Blackboard after the end of each class, and within 24 hours of the class. It is not
possible to earn participation points on missed days of class.
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I expect you to come to class prepared to share knowledge and be a part of the learning experience in the
class. This implies that you need to read the assigned materials before class, think about the issues raised,
and be prepared to discuss and answer questions about them in class. Although, class lectures and
discussions will not cover directly all the assigned readings, you are expected to know the information
and use it in analyzing issues raised in class discussions and cases. On some days, I may give a short quiz
on the readings assigned for the day. The points scored on the quiz will be used in your participation
grade. On days when a case is assigned, you will be expected to come to class fully prepared to discuss
the case even if your team is not presenting. Class participation is important, it is more than mere
physical presence, and should not be confused with launching into irrelevant discussions. Instead, I view
class participation as meaningfully contributing to the discussion at hand, offering interesting
perspectives that enhance learning for all the participants. As in the case of the business world, you
might be called upon to answer a question or make a comment on the assigned topic for the day.
Thorough class preparation is essential and especially critical for international students whose native
language is not English. One effective approach for international students is to prepare written potential
remarks before class and outline answers to guideline questions provided in the syllabus.
Free-riding is an inevitable component of all team endeavors. If you are having a problem with team
members, please resolve it within your team. For all other issues, please set up an individual
appointment with me. It is important to address all issues early in the semester, and not at the end difficulties are most likely to be resolved when addressed early.
I expect you to turn in all assignments on the due date. No late assignments will be accepted – all
assignments are due before the missed class, not after. All classes will start and end within the allotted
time. Please note that late arrivals and early departures will not be tolerated. You are expected to
schedule all of your other activities (including meetings, interviews, etc.) at a time that does not conflict
with the class time.
Bringing laptops to class is not allowed unless you prefer to take class notes on your laptop or plan to
use it for presentation or in-class interactive exercises. Using your laptop for non-class related activities
is prohibited and will result in participation points deduction for the entire week.
Grading
The following weights will be utilized in determining grades:
Total
Team Case Presentation
Content/presentation effectiveness -15%
Peer presentation critique -5%
Case Decision Memo
Class Participation
Current Business Practice examples (2)
Final Exam
Team Member Evaluation
Lessons Learned Assignment
20%
10%
20%
10%
25%
10%
5%
100%
Note that +/- will be utilized in determining grades in accordance with Graduate School Policy.
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Assignments
Cases
This class will be exposed to 8 comprehensive cases for analysis and discussion.
Because the quality of a case discussion depends heavily on your participation, I expect every one of you
to have read and thought about the case prior to the class session. You are responsible for preparing the
questions for each case listed in the class session outline later in the syllabus (even if you are not
presenting!). To facilitate maximum learning:

Each team will analyze and present in class the solution to 1 case guided by the questions
listed in the expanded course outline (pages 9-20). Presentations will last 10- 15 minutes
followed by a discussion and questions/comments from the class. Presentations should
not include any case summary information or facts already presented in the case, just
student analysis, rationale and problem solution. Slides should be submitted before the
beginning of class via email. Also, hard copies (4- 6 slides per page) should be turned in
class.

Each team will analyze and submit a decision memo for 1 of the remaining 7 cases (as
chosen by the team). The format of the decision memos is outlined below.
Decision Memos
Case solution write-ups should be action-oriented, rather than general, proscriptive, or textbook-like
discussions. To enhance this focus, cases should be written in memo form:
TO:
FROM:
RE:
(Character in the case)
(Your team)
(Short statement of the problem)
It is important that in the early part of this memo you list your recommendations. Typical items in a
viable defense include market/consumer analysis, economic analysis, and assessment of competition that
refute alternatives and support your choice. You have to specifically explain why you have selected a
particular alternative, as well as why you have not chosen other actions. Importantly, in explaining your
recommendations, you need to center not only on the question of „what to do,‟ but also on „how to do
it.‟ The case-specific questions listed in the syllabus signal the main issues to be addressed in your
analysis. It is important that you address these issues and that you support your arguments with relevant
data from the case. However, you do not need to use these questions as the structure of your memo.
An important challenge for marketing managers is to succinctly present comprehensive recommendation
regarding a specific problem. To this end, your write-up should be typed, double-spaced, and no longer
than two (2) pages (double spaced, 12pt font), exclusive of special exhibits and appendices. Note that
the appendix is not merely a reservoir for supplemental text material. Exhibits should be clearly labeled
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and understandable. As the skeleton of your memo, exhibits need to broach the future as well as the past
and present. Finally, do not waste time summarizing the case text. Include only facts from the case that
are necessary for your arguments and analysis. Also, indicate what information you would like and what
you would use it for.
Class participation
Your class participation grade will depend on the quality of contributions to class discussions. Here is a
guideline for how to prepare:
-
Be well prepared for class (also, see the section on course policies and expectations)
Raise your hand and/or make a thoughtful comment on the topic discussed
Ask insightful questions or answer another student‟s question
Redirect a discussion when the current point has been adequately covered
Share with the rest of the class your relevant work or life experience that illustrates a point
discussed
Draw generalized learning points based on class discussion
Importantly, focus on the quality of your class participation:
o Are your comments helping the progression of discussion or enhancing the insights
obtained?
o Do your comments show evidence of thoughtful analysis of the case and readings?
o Are your arguments well substantiated and persuasive?
o Do your comments show evidence of integration of the material covered in class or
assigned in the readings?
Class participation will be evaluated for each class as follows:
3 points – outstanding contribution, which reflects exceptional preparation. Consistently
presents important ideas, has one or more major insight and well-reasoned/persuasive
arguments; provides fruitful class direction
2 points – good contribution, which reflects thorough preparation. Often presents important
ideas, generally useful insights and persuasive arguments; sometimes provides fruitful class
direction.
1 point – contribution based on satisfactory preparation. Sometimes presents important ideas,
generally useful insights but seldom provides fruitful class direction.
0 points – unsatisfactory contribution, non-participant or absent. Contribution reflects
inadequate preparation; seldom offers any insights; the student was present but said nothing or
missed class.
Thus, note that the full range of participation points (0-20) will be used to assign a participation
grade. In other words, the participation grade may be critical in differentiating A, B and C final grades.
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Current Business Practice Examples
Applying the concepts you learn by generating your own examples and linking them to the covered
material is one of the best ways to get a better grasp of the principles and develop your own thinking.
Thus, each student will be required to turn in two write-ups (no longer than 1 page each) of examples
from the current business practices that illustrate issues discussed in certain class sessions, as indicated in
the expanded class schedule (pages 9-20). The write-up has to include: (1) a discussion of the example,
and (2) how it relates to the topic/issues assigned for the session. Your examples and discussion have to
be relevant, creative and insightful. The assignment will be due at the beginning of each class session
for which it was assigned, as indicated in the expanded course outline. Note that you cannot turn in both
of your examples during the last week of class. Finally, some class time will be dedicated to discussion of
these examples.
Lessons Learned Assignment
You will be required to complete an individual assignment that answers the following question: "What
are the three most important lessons that I learned about marketing in this course that will help me as a
manager?" This assignment should be no more than two pages in length and should briefly summarize
each of the three lessons. You will receive credit simply for turning in this assignment on or before
December 6th.
Team member evaluation
Since for part of this course requirement you will be working in a team with others, at the end of the
semester each student will turn in written evaluations of her/his team members. I will collect team
evaluation forms (posted on Blackboard) at the end of the semester. The form will ask you to provide
written comments and assign points (0 -100) to each team member to indicate their contribution to your
team‟s performance in the class. Your team member evaluations‟ will constitute 5% of your final grade.
Final Exam
There is a 75 minute in-class Final Exam. The test will focus on lessons, insights and applications derived
from class discussions, lectures, required cases and readings included in the Course Pack, or posted on
Blackboard and any Guest Speakers‟ presentations made in class.
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University and Business School Policies and Procedures
This course will adhere to the University and Business School Honor code and ADA policies
listed below.
Honor Code
ADA
Academic dishonesty is an offense against the University and other
students in the class. Any student who has committed an act of academic
dishonesty has failed to meet a basic requirement of satisfactory academic
performance. Thus, academic dishonesty is not only a basis for disciplinary
action but also is relevant to the evaluation of the student‟s level of
performance. When there has been an act of academic dishonesty in a
course, the instructor may assign a failing grade for the course, or may
adjust the grade as deemed appropriate. If you have any further questions
regarding University policy regarding academic honesty, please see your
instructor, academic advisor, or other University official. You should also
consult the Mizzou Student Handbook.
If you have special needs as addressed by the Americans with Disabilities
Act and need any test or course materials provided in an alternative format,
it is your responsibility to notify me as soon as possible. Please see me in
my office. Reasonable efforts will be made to accommodate your special
needs. You should also register with the Access Office, AO48 Brady
Commons, 882-4696, especially if you are requesting academic
accommodations such as extended testing time. Detailed information
regarding the Americans with Disabilities Act may be obtained from the
Access Office.
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Overview of Class Schedule
(tentative)
Day
Topic
Assignment
October 16
Introduction to the class
Reading: HBS, Note on Marketing Strategy
October 18
Product market evolution
Team formation, team lists due
Case presentation assignment
October 23
Product success and failure
Find and prepare examples of product success and
failure
October 25
Segmentation, Product
Differentiation and Positioning
Case: Goodyear
Review: HBS, Note on Marketing Strategy
October 30
How to enter a product market?
Product positioning:
- Perceptual Mapping
- Conjoint Analysis
Reading: HBS, Analyzing Consumer Perceptions
HBS, Analyzing Consumer Preferences
Bringing New Products to Market
Guest Speaker
Nov 1
- Percep
Tom Wells
Vice President and Director of
Engineering Strategy & Technical Support
Leggett & Platt, Inc
Nov 6
Product Positioning
Case: Sony PlayStation 3: Game Over?
Nov 8
Where to enter a product market?
Diagnostics for ActionUse of Marketing Research
Case: Techsonic
Reading: HBR, Creating New Market Space
Nov 13
When to enter a product market?
New Product Launch Strategies
Case: Biopure Corporation
Reading: HBS, Going to Market
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Nov 15
Pricing,
Product Line Strategy
Reading: L&W, Pricing Decisions; HBR, Business
Marketing: Understand What Customers Value;
HBR, Who Benefits from Price Promotions?
Case: Barco Projections Systems
Nov 27
Forecasting demand
Reading: L&W, Market Potential and Diffusion of
innovations;
Review: HBS, Analyzing Consumer Preferences
Case: Zenith HDTV
Nov 29
Building Brands
Case: Starbucks: Delivering Customer Service
Reading: Keller, Managing Brands Over Time;
CMR, The Brand Relationship Spectrum
Dec 4
Managing Advertising and Brand
equity
Case: Charles Schwab, Inc.
Reading: Keller, Measuring Outcomes
of Brand Equity;
HBR, The Brand Report Card
Lessons learned assignment due
Dec 6
Final exam
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CLASS SESSION OUTLINE
October 16
Course Overview
To read/prepare for today’s class:
(1) Dolan, Robert (2000), “Note on Marketing Strategy,” Harvard Business Case,
9-598-061.
October 18
Product Market Evolution. We will develop a framework for the process by
which product markets evolve and its implications for building a competitive advantage.
Key Discussion Points:




What is a product market and how does it evolve over time?
Neoclassical theory of competition
Modern View – Systems Perspective
Theory of Competitive Rationality
To read/prepare for today’s class:
(1) Review theory of perfect competition (from your principles of economics textbook)
(2) Dolan, Robert (2000), “Note on Marketing Strategy,” Harvard Business Case,
9-598-061.
(3) Team formation – team lists due first 10 minutes of class; Team case selection and
assignment.
October 23
Product Success and Failure.
Key discussion points:





What do we need to devise and implement a product strategy?
What are the reasons for new product success?
What are the reasons for new product failure?
Perspectives on competitive advantage?
Customer views of value leaders
To read/prepare for today’s class:
(1) Find 1 example of product success and 1 example of product failure in the market
during 2009-2011. You can use your own business or consumer experience or use the
Research databases available online through the library (Business and Industry, Business
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Source Premier, ABI Inform etc.) There are many different publications that are relevant
- for example Marketing News, Marketing Management, Journal of Product Innovation
Management, Fortune, WSJ, etc.
October 25
Segmentation, Product Differentiation and Positioning
Case - Goodyear: The Aquatred Launch
Key Discussion Questions:
1.
2.
3.
4.
5.
6.
7.
8.
Assess Goodyear's position in the tire industry.
How do consumers buy tires? How can the market be segmented?
Assess the evolution of Goodyear's distribution channels in the U.S. replacement
tire market.
Assess Aquatred's strategic role at Goodyear.
What segments would you target with the Aquatred? How would you position
Aquatred – what is the unique value proposition for the targeted segments relative
to competing products
How would you distribute the Aquatred? Should mass merchandisers,
warehouse clubs and large tire chains (discount channels) be offered the
Aquatred?
Design Aquatred‟s marketing program. Include distribution, pricing,
advertising/branding
and other dimensions that you feel are relevant.
Given the pricing structure and expenses in 7 above, what sales and market share
would be necessary to consider the launch successful?
To read/prepare for today’s class:
(1) Review: Dolan, Robert (2000), “Note on Marketing Strategy,” Harvard Business
Case, 9-598-061.
(2) “Goodyear: The Aquatred Launch,” Harvard Business Case, 9-594-106.
(3) Bring an example of segmentation, product differentiation and positioning practices
of a company in the last two years. You can use your own business or consumer
experience or use the Research databases available online through the library
(Business and Industry, Business Source Premier, ABI Inform etc.) There are many
different publications that are relevant - for example Marketing News, Marketing
Management, Journal of Product Innovation Management, Fortune, WSJ, etc.
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October 30
How to Enter a Product Market? Product positioning is the
cornerstone of a successful product strategy. Today we will learn about two advanced
techniques anchored in consumer analysis to guide the product manager in making
product positioning decisions.
Key discussion points:


Perceptual mapping
- Factor analysis
- Multidimensional scaling
Conjoint Analysis
To prepare for today’s class:
(1) Dolan, Robert J., (2001)“Analyzing Consumer Perceptions,” Harvard Business Case,
9-599-110.
(2) Dolan, Robert J., (2001)“Analyzing Consumer Preferences,” Harvard Business Case,
9-599-112.
(3) Bring an example of product positioning practices of a company in the last two years.
You can use your own business or consumer experience or use the Research databases
available online through the library (Business and Industry, Business Source Premier, ABI
Inform etc.) There are many different publications that are relevant - for example
Marketing News, Marketing Management, Journal of Product Innovation Management,
Fortune, WSJ, etc.
November 1 Bringing New Products to Market
Guest Lecture
Tom Wells,
Vice President and Director of
Engineering Strategy & Technical Support
Leggett & Platt, Inc
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November 6
Case on Product Positioning: Sony PlayStation 3: Game Over?
Key Discussion Questions:
1. If you were in charge of the Sony PlayStation 3 launch for the holiday season of 2006,
how would you position the new console? (Who are you targeting and what value
proposition are you highlighting?)
2. How worried should Sony be about the unexpected success of the Nintendo Wii? Is
there anything Sony can do to ensure the Wii does not eat into PS3 adoption?
3. Given the way things had unraveled in 2007, what actions should Sony take to
improve the performance of its Sony PlayStation 3 in 2008 and beyond? (Consider all
elements of the marketing mix; consider also the profitability of the PS3 from the sale
of game titles)
4. If you were a game development firm, which of the three consoles would you be
most willing to develop games for? How many units would you need to sell to break
even on the development of one game title for the PS3?
5. How soon should Sony phase out its Sony PlayStation 2?
6. Does Xbox 360‟s head start seem to have been effective? Who should Microsoft be
more concerned about, the PS3 or the Wii?
To prepare for today’s class:
(1) “Sony Playstation 3: Game Over?” (2008) Harvard Business Case, 5-508-105.
(2) Bring an example of product positioning practices of a company (or any other aspect
of the case) in the last two years. You can use your own business or consumer
experience or use the Research databases available online through the library
(Business and Industry, Business Source Premier, ABI Inform etc.) There are many
different publications that are relevant - for example Marketing News, Marketing
Management, Journal of Product Innovation Management, Fortune, WSJ, etc.
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November 8 Consumer Analysis and Market Entry. Building on the last two weeks‟ discussions,
today we will focus on integrating consumer analysis and product market considerations
in selecting a competitive arena
Key discussion points:


Where to enter?
Market attractiveness
Diagnostics for action – Role and use of marketing research
Primary versus secondary data
Criteria to evaluate marketing research
Case: Techsonic- Humminbird
Key Discussion Questions:
1.
2.
3.
4.
5.
What priority would you attach to each of the three new products?
Which one or ones would you announce at the upcoming annual trade show?
What problems does Techsonic face that could be impacted by new products?
What opportunities could Techsonic take advantage of?
As Jim Balkcom, what criteria would you use to evaluate new product
opportunities? Based on those criteria, how do you evaluate the three new
product opportunities?
How do you evaluate the research used by Techsonic for (i) the 901, (ii) the radio,
and (iii) the navigation device? Would you have done things differently? Why?
To read/prepare for today’s class:
(1) Kim, W. Chan and Renee Mauborgne, “Creating New Market Space,” Harvard
Business Review, Jan-Feb 1999, 83-93.
(2) “Techsonic Industries, Inc.: Humminbird – New Products,” HBR case #9-591-007,
1990, 1-22.
(3) Prepare a current example from the business world/press that relates to product
market entry or any other aspect of the case in the last two years. You can use your own
business or consumer experience or use the Research databases available online through
the library (Business and Industry, Business Source Premier, ABI Inform etc.) There are
many different publications that are relevant - for example Marketing News, Marketing
Management, Journal of Product Innovation Management, Fortune, WSJ, etc.
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November 13 When to enter?
New product Launch Strategies
 Pioneer versus follower strategies
Case: Biopure Corporation
Key Discussion Questions:
1.
Should Carl Rausch launch Oxyglobin? If yes, when should he launch it -immediately
or after Hemopure had established itself in the marketplace?
What are the reasons “for” and “against” immediately launching Oxyglobin?
2. What is the market potential for Oxyglobin and Hemopure?
3. What will be the impact of Oxyglobin‟s pricing on Hemopure?
4. How should the company go to market with Oxyglobin? What should be the target
market, distribution strategy and pricing?
To read/prepare for today’s class:
(1) “Biopure Corporation,” Harvard Business Case, 9-598-150.
(2) Dolan, Robert J, (2000) “Going To Market,” Harvard Business Case, 9-599-112.
(3) Bring an example of a company‟s new product launch strategy or decision regarding
timing of market entry in the last two years. You can use your own business or
consumer experience or use the Research databases available online through the
library (Business and Industry, Business Source Premier, ABI Inform etc.) There are
many different publications that are relevant - for example Marketing News,
Marketing Management, Journal of Product Innovation Management, Fortune, WSJ,
etc.
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November 15 Pricing
Price is the marketing variable that most often makes or breaks the transaction. In this
session we will discuss approaches to setting product prices and their implications. We
will also discuss the utility of using coupons and the impact of the internet.
Question for in-class discussion:
In September 2007, Apple Inc. decreased the prices of iPhone from $599 to $399. This
price cut surprised consumers since it took place about 2 months after introducing the
product to marketplace.
 Why did Apple decrease the Price of iPhone?
 Was this a good marketing decision? Why? What (if anything) would you do
differently?
Case on Pricing and Product Line Strategy: Barco
Key Discussion Questions:
1.
Describe the product line strategy of the Barco Projection Systems Division.
2.
At one point in the discussion, Dejonghe comments that "All of our projections,
however, were based on the fact that Sony would respect our 'vision' of the
marketplace." What does this mean? When does one competitor accept
another's "vision" of the market?
3.
Why did Sony decide to reject BPS's vision of the market in August 1989?
4.
How serious of a threat is the Sony 1270? What are Sony's objectives?
5.
Did Barco make a mistake along the way -- or do things like this "just happen"
when competing in high technology businesses on a global scale?
6.
What should Barco do now with respect to price?
7.
What should Barco do now with respect to its product development plans?
To read/prepare for today’s class:
(1) Lehmann, Donald R. and Rrussel S. Winer (2002), “Pricing Decisions,” in Product
Management, Boston, MA: Irwin McGraw-Hill., 276-308.
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(2) “Barco Projection Systems (A): Worldwide Niche Marketing,” No. #9-591-133, 1991,
1-21.
(3) Anderson, James C. and James A. Narus, “Business Marketing: Understand What
Customers Value,” Harvard Business Review, Nov-Dec 1998, 5-15.
(4) Srinivasan, Shuba, Pauwels, Koen, Hanssens, Dominique and Marnik Dekimpe,
(2002)“Who Benefits from Price Promotions?” Harvard Business Review, Sept, 2-3.
(5) Prepare a current example from the business world/press that focuses on product
pricing in the last two years. You can use your own business or consumer experience
or use the Research databases available online through the library (Business and
Industry, Business Source Premier, ABI Inform etc.) There are many different
publications that are relevant - for example Marketing News, Marketing Management,
Journal of Product Innovation Management, Fortune, WSJ, etc.
November 27 Forecasting Demand and Diffusion of Innovations. In this session you will be
exposed to techniques for forecasting product demand in presence or absence of
historic data.
Key discussion points:




Aggregate models of demand growth
Models of sales formation
Market potential assessment from concept tests
Individual-level adoption models
Case: Zenith HDTV
Key Discussion Questions:
1.
2.
3.
4.
5.
6.
7.
Will HDTV be an uphill battle or a boost for the company (industry)?
Is HDTV an innovation? Will consumers perceive it to be an innovation? Who
will be the early adopters of HDTV?
Should Zenith undertake the Aspect Ratio Study? What are the Pros and Cons of
the existing proposal?
How should one assess the market potential for HDTV?
What is the role of marketing research for innovative high-tech consumer
durable innovations?
What are the Pros and Cons of the other proposals for HDTV research?
What is the market potential for HDTV based on the diffusion history of similar
innovations? Provide actual number estimates.
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To read/prepare for today’s class:
(1) “Zenith: Marketing Research for High Definition Television (HDTV),” No. 9-591025, 1991, 1-22.
(2) Lehmann, Donald R. and Russel S. Winer (2002), “Market Potential and
Forecasting,” in Product Management, Boston, MA: Irwin McGraw-Hill., 178-210.
(3) Review: Dolan, Robert J., (2001) “Analyzing Consumer Preferences,” Harvard
Business Case, 9-599-112.
(4) Prepare a current example from the business world/press that relates to diffusion of a
new product in the market, right/wrong forecasts of new product sales or any other
aspect of the case. You can use your own business or consumer experience or use the
Research databases available online through the library (Business and Industry,
Business Source Premier, ABI Inform etc.) There are many different publications that
are relevant - for example Marketing News, Marketing Management, Journal of
Product Innovation Management, Fortune, WSJ, etc.
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November 29 Building Brands
Case - Starbucks: Delivering Customer Service
Key Discussion Questions:
(1) What were the critical drivers of Starbucks success on the early 1990‟s? What was so
compelling about the Starbucks value proposition? What brand image did Starbucks
develop during his period?
(2) Why have Starbucks‟ customer satisfaction scores declined? Has the company‟s
service declined, or is it measuring satisfaction the wrong way?
(3) Describe the ideal Starbucks customer from a profitability standpoint. What would it
take to ensure that this customer is highly satisfied? How valuable is a highly satisfied
customer to Starbucks?
(4) Should Starbucks make the $40 million investment in labor in the stores? What is the
goal of this investment? Is it possible for a mega-brand to deliver customer intimacy?
(5) What is the source of Starbuck‟s competitive advantage? Is it sustainable?
(6) What should the company do next to enhance its position in the market?
To read/prepare for today’s class:
(1) “Starbucks: Delivering Customer Service,” Harvard Business Case, 9-504-016.
(2) Aaker, David and Erich Joachimsthaler, (2000)“The Brand Relationship Spectrum,”
California Management Review, Vol. 42, No. 4, Summer, 8-23.
(5) Keller, Kevin Lane, (2003)“Managing Brands Over Time,” in Strategic Brand
Management, Upper Saddle River, NJ, Prentice Hall 2003, 632-679.
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December 4 Managing Advertising and Brand Equity
Brand Equity.




What is brand equity?
How can we build brand equity?
- Brand Strength/ Brand Statute perspective
- Brand Dominance perspective
Selecting, creating and maintaining brand associations
Significance of branding for e-commerce
Advertising
Question for in-class discussion:
Watch the Super Bowl Game Commercials by accessing them on www.superbowlads.com (click “2011” on the top menu). With an average cost of about $3 million for a
30-second segment, the advertisers reach an estimated 100 million viewers. Choose an ad
that you judge is highly effective and an ad that you believe falls short of its objectives.
Evaluate the two ads in detail by addressing the following issues: (1) Who are the target
customers that the ad is trying to reach?, What is the main communication objective of
the ad?, (2) Does the ad achieve its intended objectives by using relevant tactics such as
humor, fantasy, celebrities, sex appeal?
Case: Charles Schwab, Inc.
Key Discussion Questions:
(1)
(2)
(3)
(4)
What circumstances motivated development of the TTC campaign?
Evaluate the company strategy behind the TTC campaign?
How effective was the TTC test market? Evaluate the results
Would you support Saeger‟s TTC budget request for 2006?
To read/prepare for today’s class:
(1) “Charles Schwab & Co, Inc: The “Talk to Chuck” Advertising Campaign,” Harvard
Business Case, 9-507-005.
(2) Keller, Kevin Lane, (2003) “Measuring Outcomes of Brand Equity: Capturing Market
Performance,” in Strategic Brand Management, Prentice Hall, Upper Saddle River, NJ, 477508.
(3) Keller, Kevin Lane, (2000)“The Brand Report Card,” Harvard Business Review, JanFeb,3-10.
(4) Prepare a current example from the business world/press that focuses on advertising
and brand equity in the last two years. You can use your own business or consumer
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experience or use the Research databases available online through the library (Business
and Industry, Business Source Premier, ABI Inform etc.) There are many different
publications that are relevant - for example Marketing News, Marketing Management,
Business Week Journal of Product Innovation Management, Fortune, WSJ, etc.
December 6 Final Exam
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