Product and Brand Management (the required password is in your handbooks) and
indicate A70085 as course ID in your profile. Download the MarkStrat Online
software (version 1.091) on your laptops. Log on to MarkStrat Online at home to
make sure that your password works and view the practice industry.
(3) Review theory of perfect competition (from your principles of economics
textbook)
(4) Team formation – team lists due
January 31
1. Markstrat Introduction
This course is structured around a widely accepted and successful simulation of
the product
market and
strategy process – MarkStrat. The Markstrat model incorporates theories of
competitive behavior that have been tested empirically in a variety of situations.
All the leading business schools employ MarkStrat to help MBA students develop
skills that other forms of learning do not. Participating in this exercise will enable
you to develop critical skills required of a product manager in a dynamic market
environment. Today you will get familiarized with the structure and the
requirements of the simulation.
Key Discussion Points:



The MarkStrat World
Managing your firm
Getting started
2. MarkStrat Online In-class workshop


Demonstration of the MarkStrat software
In-class trial decisions
To read/prepare for today’s class:
(1) Bring your laptops to class with the downloaded MarkStrat Online software
and your MarkStrat Online registration information (User ID, password etc).
Your laptop should be able to connect to the Internet.
(2) MarkStrat Online Student Handbook: Chapters 7-9
February 7
1. Markstrat – product strategy. We will talk about key aspects of product
strategy – segmentation, targeting, positioning, research and development, and
1
ways to implement them within Markstrat.





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
2. Performance Analysis and Marketing Planning – Framework and Methods. We will
discuss some analytical techniques for examining the drivers of your products’ performance.
These analyses will give insights into returns on your marketing expenditures and provide
guidance for future strategic and tactical decisions in managing your products as well as effective
budget allocation.
Key discussion points:





Linking strategic and tactical actions to market outcomes
- nature of the relationships
- role/responsibility of the product manager
- addressing ‘uncertainty’
Using regression analysis to determine the impact of marketing variables
What drives your product’s performance?
How do we determine the return on advertising, sales force and R& D expenditures?
Allocating the budget for next year
To read/prepare for today’s class:
(1) Find 1 example of product success and 1 example of product failure from the business world
during 2003-2005. You can use your own business or consumer experience or use the
Research databases available online through the CWRU 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. Bringing in class the actual product or
pictures/photos of the product will give you bonus points!
(2) MarkStrat: Period 1 decisions due
(3) Bring Laptops with MarkStrat to class.
February 14
Product Positioning
How to Enter a Product Market? Product positioning is the cornerstone of a successful
2
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) MarkStrat: Period 2 decisions due
February 21
(4) Find and bring examples of successful/unsuccessful product positioning from current
business practices
No formal Class
Team workshop: Markstrat Marketing Plan
Markstrat Period 3 decisions due
February 28
1. Case on Segmentation, Product Differentiation and Positioning –
Goodyear: The Aquatred Launch
Key Discussion Questions:
1.
2.
3.
4.
5.
6.
7.
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
3
8.
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?
2. Customer 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?
- Assessing Market attractiveness
To read/prepare for today’s class:
(1) MarkStrat: Marketing plan due (beginning of class 6 pm)
(2) Markstrat: Period 4 decisions due
(3) “Goodyear: The Aquatred Launch,” HBR case #9-594-106, 1994, Pages 1-24.
(4) Prepare a current example from the business world/press that relates to segmentation,
positioning, multiple channel use or any other aspect of the case.
March 7
1. Case on Market Entry and Use of Marketing Research: 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?
Role and Use of Marketing Research


Primary versus secondary data
Criteria to evaluate marketing research
2.

When to enter?
Pioneer versus follower strategy
To read/prepare for today’s class:
4
(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,
timing of product entry (pioneer versus follower strategy) or any other aspect of the case.
(4) MarkStrat: Period 5 decisions due
March 14
Spring Break
March 21
No formal Class
Markstrat Team Workshop
Markstrat Period 6 decisions due
March 28
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.
Case on Pricing and Product Line Strategy: Barco
Key Discussion Questions:
1.
2.
3.
4.
5.
6.
7.
Describe the product line strategy of the Barco Projection Systems Division.
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?
Why did Sony decide to reject BPS's vision of the market in August 1989?
How serious of a threat is the Sony 1270? What are Sony's objectives?
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?
What should Barco do now with respect to price?
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), “Chapter 10. Pricing Decisions,” in Product
Management, Boston, MA: Irwin McGraw-Hill., 276-308.
5
(2) Anderson, James C. and James A. Narus, “Business Marketing: Understand What Customers
Value,” Harvard Business Review, Nov-Dec 1998, 5-15.
(3) Srinivasan, Shuba, Pauwels, Koen, Hanssens, Dominique and Marnik Dekimpe, (2002)“Who
Benefits from Price Promotions?” Harvard Business Review, Sept, 2-3.
(4) “Barco Projection Systems (A): Worldwide Niche Marketing,” No. #9-591-133, 1991, 1-21.
(5) Prepare a current example from the business world/press that focuses on product pricing
(6) MarkStrat: Period 7 decisions due
April 4
1. 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 on Forecasting Demand: Zenith HDTV
Key Discussion Questions:
1.
2.
3.
4.
5.
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?
6
6.
7.
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.
2. Pretest and Test Markets



Whether or not to test market?
Test Market Strategies
- Standard test market
- Controlled test market
- Simulated test market
Behavioral Foundations of test market analysis
To read/prepare for today’s class:
(1) “Zenith: Marketing Research for High Definition Television (HDTV),” No. #9-591-025,
1991, 1-22.
(2) 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.
(3) Urban Glen L. and John R. Hauser (1993), “Chapter 17. Test Marketing,” in Design and
Marketing of New Products, Upper Saddle River, NJ: Prentice Hall, p.494-510 and p.518-526.
(4) Lehmann, Donald R. and Russel S. Winer (2002), “Chapter 7. Market Potential and
Forecasting,” in Product Management, Boston, MA: Irwin McGraw-Hill, 178-210.
(5) MarkStrat: Period 8 decisions due
April 11
1. Case on Managing Brand Equity –
The Land Rover North America, Inc.
Key Discussion Questions:
1.
2.
3.
4.
Why is LRNA launching the Discovery?
Why do people buy SUVs?
Who is the typical SUV consumer and how is this changing?
What are the differences among competitive SUV offerings?
a. What is the equity of the Land Rover umbrella brand?
b. What are the distinctive roles of the different brands within the Land Rover line?
5. What strategic considerations are involved in moving this brand forward?
2. Brand Equity.


What is brand equity?
How can we build brand equity?
7


- Brand Strength/ Brand Statute perspective
- Brand Dominance perspective
Selecting, creating and maintaining brand associations
Measuring and managing brand equity
To read/prepare for today’s class:
(1) “Land Rover North America, Inc,” (1996) Harvard Business School Case, 9-596-036.
(2) Aaker, David and Erich Joachimsthaler, (2000)“The Brand Relationship Spectrum,” California
Management Review, Vol. 42, No. 4, Summer, 8-23.
(3) Keller, Kevin Lane, (2003) “Chapter 10: Measuring Outcomes of Brand Equity: Capturing
Market Performance,” in Strategic Brand Management, Prentice Hall, Upper Saddle River, NJ,
477-508.
(4) Keller, Kevin Lane, (2000)“The Brand Report Card,” Harvard Business Review, Jan-Feb,
3-10.
(5) Keller, Kevin Lane, (2003)“Chapter 13: Managing Brands Over Time,” in Strategic Brand
Management, Upper Saddle River, NJ, Prentice Hall 2003, 632-679.
(6) MarkStrat: Period 9 decisions due
April 18
MarkStrat Conclusion - Final Team presentations (Industry Saturn)
An analysis of drivers’ of product performance
April 25
MarkStrat Conclusion - Final Team presentations (Industry Pluto)
An analysis of drivers’ of product performance
8
Supplemental Reading:
Lehmann, Donald R. and Russell S. Winer (2002), Analysis for Marketing Planning, New York, NY: McGrawHill/Irwin.
Cagan, Jonathan and Craig M. Vogel (2002), Creating Breakthrough Products: Innovation from Product
Planning to Program Approval, Upper Saddle River, NJ: Prentice Hall.
Cooper, Robert (2001), Winning at New Products: Accelerating the Process from Idea to Launch,
Perseus Books.
Kahn, Barbara and Leigh McAllister (1997), Grocery Revolution: The New Focus on the Customer, Reading,
MA: Addison-Wesley Longman, Inc..
Johansson, Johny K and Ikujiro Nonaka (1997), Relentless: The Japanese Way of Marketing, New York, NY:
HarperCollins.
Coughlan, Anne T., Erin Anderson and Louis W. Stern (2001), Marketing Channels, Upper Saddle River, NJ:
Prentice Hall.
Dillon, William, Thomas J. Madden, and Neil H. Firtle (1995), Marketing Research in a Marketing Environment,
Boston, MA: Irwin/McGraw Hill.
Rogers, Everett M. (2004), Diffusion of Innovations, Riverside, NJ: Simon & Schuster Free Press.
9