MBA PROGRAM
P1 Sept-Oct 2002
COURSE SYLLABUS
June 29, 2002
MARKETING MANAGEMENT I
Professor Pierre Chandon
COURSE OUTLINE
Community
Community
PEST: Political,
PEST: Political,
Economic,
Social
Social
&Economic,
Technological
& Technological
Company
Company
Mission, Objectives,
Mission,
Objectives,
& Resources
& Resources
Competitors
Competitors
Current &
Current &
Prospective
Prospective
Segmentation
Segmentation
and
andtargeting
targeting
Positioning
Positioning
(4Ds)
(4Ds)
Price
Product
Product Price
Target
Target
Market
Market
Promotion
Promotion
Place
Place
Customers
Customers
Needs and other
Needs
and other
Segmenting
Segmenting
Dimensions
Dimensions
Course Website:
http://faculty.insead.edu/chandon/mm1
Professor: Pierre Chandon
E-Mail: pierre.chandon@insead.edu
Tel: 01 60 72 49 87
Office: Quartier Royale West Wing 2.09
Office Hours: By appointment
Course Secretary: Nathalie Hazeldine
E-mail: nathalie.hazeldine@insead.edu
Tel: 01 60 72 42 29
Office: Quartier Royale West Wing 2.13
Office Hours: 0845-1730
COURSE OBJECTIVES
Marketing is the business function that deals with customers' unfulfilled needs and wants. The role of
marketing management in organizations is to identify and measure these needs, determine which
targets the business can serve, decide on the appropriate products and services, and determine the
optimal methods of pricing, promoting and distributing the products or services. Successful firms are
those that integrate the objectives and resources of the organization with the needs and opportunities of
the marketplace better than competitors - that is, those that create, deliver, and capture more customer
value than their competitors.
This course is designed for students with little or no marketing experience. However, the range of
concepts and materials we will be using should provide a challenging experience even for those of you
who have marketing backgrounds. The objectives of the course are:
1. To develop your marketing decision-making skills. This is the primary objective of the course.
You should leave the course with the ability to analyze the marketing and business environment in
which an organization is operating, to determine the major opportunities and problems facing the
organization, to develop a creative set of alternative marketing strategies, to select the most
appropriate one for the organization, and to convert the chosen strategic alternative into an
actionable plan.
2. To understand and apply some major marketing concepts, such as market segmentation,
positioning, customer satisfaction, and the product life cycle.
3. To improve your familiarity with institutional marketing knowledge, practice, and
terminology. By the end of the course, you should be able to converse intelligently with managers
and understand the marketing situation in a variety of organizational environments. Much of this
will be achieved by the extensive use of case studies.
4. To provide you with a forum for presenting and defending your own recommendations, and
for critically examining and discussing the recommendations of others.
ACHIEVING THE COURSE OBJECTIVES
CASE PREPARATION AND CLASS DISCUSSION
Marketing is hard. Marketing requires managers to master an array of ‘hard’ and ‘soft’ skills. It
remains one of the most difficult areas of analysis and decision-making for firms. Why? Because,
although many marketing problems lend themselves well to quantitative analysis, the human element
plays a much larger role than in other business functions. Because marketing efforts affect both
revenues and costs simultaneously. Because marketing decisions must be made in the face of
insufficient information about processes that are dynamic, non-linear, lagged, stochastic, interactive,
and downright difficult.
Cases are a very effective means for learning diagnostic skills and introducing semblance of the real
world into a manageable framework. Each case is chosen based on its ability to illustrate issues
important to the marketing framework. While some of the cases may appear somewhat removed from
the specific problems pertinent to your particular job or industry experience and interests, the lessons to
be learned from the cases are generally universally relevant and transcend particular situations.
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To benefit from the case method, you must be intimately familiar with the facts of each case. Based on
these,
1. Identify the underlying marketing problems (not just the symptoms), which the organization is
facing; use the assignment questions as a guide but do not necessarily limit your analysis to these
issues.
2. Generate alternative marketing actions (incl. their pros and cons) and make a decision about
what should be done before you come to class. Do not try to guess what the “right” answer is. What
matters is how well thought out the arguments behind your decisions are.
3. Be prepared to discuss your analysis and decisions with other students in class in a constructive
manner; merely having a single observation or repeating case "facts" is not enough. Asking the
right questions of each other is as important as coming up with answers. Ideally, the instructor takes
on the role of a discussion facilitator, not of an expert.
More specifically, in preparing for class, I recommend that you read a case more than once. The first
reading should give you a feeling for what the case is about and the types of data contained in the case.
Many people like to underline or otherwise mark up their cases to pick out important points relating to
the business and the situation; e.g., customer behavior and trends, competitor's behavior and trends, and
the firm's strengths and weaknesses. Be sure to pay attention to the exhibits in the case - these often
contain information that will be useful in analyzing the situation.
Once you have a good idea of the fundamentals, you should read the case again with the goal of
understanding the specific situation. You will want to get at the root causes of problems and gather data
from the case that will allow you to make specific action recommendations. During this reading,
carefully prepare your answers to the assigned discussion questions. As is often the situation in actual
practice, cases may not have all the data you would like. Nevertheless, it is critical that you develop a
reasoned plan of attack on the basis of the data available. The toughest part, and the one I care about
the most, is the problem diagnosis and analysis – from that, a solution will follow.
A typical question at the end of a case discussion is: “So what is the answer?” In case studies, as in the
real world, there is no unique answer! What is important is that you know what you would have done
in that specific marketing situation, and why, and that you begin to construct your own framework for
approaching more general marketing problems.
One last piece of advice: Do not attempt to find out what happened to the company or business as a
basis for making your decision. Do not use notes from previous courses or other sections at INSEAD or
concurrent courses elsewhere. This destroys the whole purpose of the case study and greatly reduces
what you will learn from the case and your performance during class discussion, exams… and future
problem-solving efforts!
GUIDELINES FOR A WRITTEN CASE ANALYSIS
The format for a written case analysis is as follows:
•
An opening paragraph which defines the problem and outlines the solution.
•
Analysis, conclusions, and recommendations for action. This section defends your definition of the
problem and sets up the case for your recommended solution by drawing inferences from case facts
and data.
•
Exhibits as needed to support your analysis.
Structure is important if your argument is to be lucid. You may use bullet point form for part of your
argument, but be careful not to become so cryptic that your argument is unintelligible. Use exhibits to
amplify and support your paper, but ensure the argument in the paper can stand on its own. Never
append an exhibit that is not referred to in the text. The reader knows the case well. There is no need to
repeat facts verbatim from the case except to explicitly support a conclusion.
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REQUIRED COURSE MATERIAL
•
Packet of cases and readings.
•
Kotler, Philip (2001), A Framework for Marketing Management, Upper Saddle River, NJ: Prentice
Hall. Available at Footnote. This book is a concise version of Kotler’s “bible” book, Marketing
Management. If you have at least a relatively recent edition of Marketing Management, you don’t
need to buy the required book. Use this book as a basic reference text; I provide page numbers of
chapters from Kotler that you can use to flesh out material from the class discussion in greater
detail, depending on your needs and interests.
EVALUATION
•
Class Participation
30%
•
Final Examination
70%
Class Participation
Almost every session of the course will involve interaction in the form of class discussion. I expect you
to be prepared at all times to comment in any class session. To reinforce this expectation, I may
randomly select (i.e. cold call) students at the beginning of the session (to open the class) and
throughout the ensuing discussion (whether or not the student's hand is raised). Many of the sessions in
this course follow a case discussion format. The case method provides the most effective means of
sharpening your decision-making abilities, requiring you to be an active participant in resolving a
marketing problem. The assigned cases are intended to give you practice in assembling data to support
a decision. Further, the case method provides a vehicle by which to apply the theories, concepts, and
analytical devices discussed in a class or in the reading materials. Finally, the discussion forum
provides an opportunity to argue your position and to learn from others by listening to their comments
and criticisms.
Class participation is evaluated on the following three criteria:
1. Is the participant prepared? Do comments show evidence of analysis of the case? Do comments
add to our understanding of the situation? Does the participant go beyond simple repetition of case
facts without analysis and conclusions? Do comments show an understanding of theories,
concepts, and analytical devices presented in class or in the reading materials?
2. Is the participant a good listener? Are the points made relevant to the discussion? Are they
linked to the comments of others? Is the participant willing to interact with other class members?
3. Is the participant an effective communicator?
convincing fashion?
Are concepts presented in a concise and
Keep in mind that your grade for class contribution is not simply a function of the amount of "air time"
you take up. In general, I will evaluate you on how well you respond to questions and on how
effectively you take into account the comments and analyses of your classmates.
Final Examination
The final examination will consist of a case analysis (guided by discussion questions, similar to the
ones we have analyzed throughout the term). It is designed to test how well you can apply the
knowledge and skills learned in the course. The same criteria used to assess the written case assignment
will be used to judge your test performance. Thus, the best way to prepare for the exam is to
conscientiously study each of the cases throughout the term, read the assigned readings, and attend the
classes. The exam will be in class, closed book, with one 2-sided A4 sheet of notes allowed.
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SESSIONS OVERVIEW
THE MARKETING FRAMEWORK
Session 1: Mon 2 Sept
The role of marketing
Lecture and mini cases
Session 2: Thu 5 Sept
The marketing framework &
concept
Case: Harlequin in Poland
MARKETING STRATEGY FORMULATION
Session 3+4: Wed 11 Sept
Customer segmentation
Case: Black & Decker
Session 5: Tue 17 Sept
Targeting and reaching customer
segments (I): Developed Countries
Case: Dewar’s
Session 6 : Thu 19 Sept
Brand and product positioning
Case: Land Rover North America
Session 7: Mon 23 Sept
Targeting and reaching customers
segments (II): Developing countries
Guest Speaker: Arvind Singhal on
Entertainment-Education
Session 8: Wed 25 Sept
Key issues in segmentation,
targeting, and positioning
Lecture and Schwarzkopf & Henkel
shampoos case
MARKETING MIX DECISIONS – THE 4 P’S
Session 9 : Fri 27 Sept
Product line management and
global marketing
Case: Gillette Indonesia
Session 10+11: Mon 30
Sept
Advertising and branding
Case: Intel CD-ROM and lecture
Guest speaker session: Tue Brand repositioning
1 Oct
Session 12: Fri 4 Oct
Pricing I (cost-based)
Yves Dubreil, Head of Renault’s Luxury
division.
Session 13: Mon 7 Oct
Pricing II (demand-based) and new
product development
Case: Biopure
Session 14: Wed 9 Oct
Retailing & Customer Relationship
Management
Case: Tesco
Case: Kodak
MARKETING FORUM
Additional session with
Prices & Markets and
Organizational Behavior :
Fri 11 Oct
Corporate responsibility:
Sessions 15+16: Tue 15
Oct
Wrap-up and marketing crisis
management
Case: Adidas
Economic, Organizational, and
Marketing Considerations
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Case: Perrier
OUTLINE OF CLASS ASSIGNMENTS
SESSION 1 - THE ROLE OF MARKETING
ASSIGNED READING
This syllabus.
Kotler, P - Chapter 1 and 2.
Andrews, K Z, “Still a Major Player: Marketing’s Role in Today’s Firms”, MSI Advancing
Knowledge and Practice, Winter 1999.
SESSION 2 - THE MARKETING FRAMEWORK AND CONCEPT
CASE
Harlequin in Poland
DISCUSSION QUESTIONS
1. What is the fundamental decision that Harlequin must make? What specific tactical
decisions must be made in Poland?
2. What are the core economic/financial factors in Harlequin’s business? Is it an
attractive business? What are the keys to making money?
3. What is Harlequin’s “product”? What benefits do consumers derive/expect from the
product? Who is the target market? How do consumers “value” the product? How
important is price?
4. What issues/challenges does Harlequin face? Are they particularly critical and/or
urgent?
ASSIGNED READING
Dolan, R J, “Note on Marketing Strategy”, Harvard Business Review, July 1998. This note will
serve throughout the course. You should come back to it and re-read the relevant section for
each class.
SESSION 3&4 – CUSTOMER SEGMENTATION
CASE
Black & Decker
DISCUSSION QUESTIONS
1. How do you explain the considerably smaller B&D market share in the Professional-Tradesmen
segment of the market as compared with its leadership or strength position in the other
segments?
2. Write a marketing plan for B&D power tool division using the strategic marketing framework
presented in session 2: Market analysis, segmentation and positioning, 4 Ps.
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ASSIGNED READING
Kotler P, Chapter 4 and 5.
Green P E & Krieger A M, “Slicing and Dicing the Market”, pp.55-59, Financial Times
Mastering Marketing, 1999.
SESSION 5 – TARGETING AND REACHING CUSTOMER SEGMENTS
CASE:
Dewar’s
DISCUSSION QUESTIONS
1. What are the problems and challenges facing the distilled spirits category in general, and
Dewar’s in particular?
2. How do people choose when, what and how much alcohol to drink? Do you believe
in the globalization of consumption patterns for alcohol products?
3. How can Dewar’s maintain its image with its traditional consumers while appealing
to the “young transitional” consumers? Could Dewar’s conduct a unified campaign?
ASSIGNED READING
Kotler P - Chapter 8.
Dolan R J - “Integrated Marketing Communications”, Harvard Business Review, June 2000.
SESSION 6 – BRAND AND PRODUCT POSITIONING
CASE:
Land Rover
DISCUSSION QUESTIONS
1. Who is the typical SUV consumer and how is this changing? What consumer segments can you
identify? Why are they buying SUVs?
2. What associations do consumers have for Land Rover? What are the differences among
competitive SUV offerings? What would be the impact of each positioning on the brand image
of Discovery, of Land Rover?
3. Which of the three positioning strategies for Discovery would you recommend? What type of
consumers would you target? Is Land Rover’s positioning in the US consistent with its
positioning in Europe? Does it matter?
ASSIGNED READING
Kotler P, Chapter 10.
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Tybout A M & Sternthal B, “Connecting with Consumers: the Four Ds of Effective
Positioning”, Financial Times Mastering Marketing, 1999.
Gouillart F J & Sturdivant F D, “Discovering New Points of Differentiation”, Harvard Business
Review, July-Aug 1997.
SESSION 7 - SEGMENTATION, TARGETING, AND POSITIONING IN
DEVELOPING COUNTRIES
GUEST SPEAKER
Arvind Singhal, a professor at Ohio University, will speak on Entertainment-Education, a
Strategic Alliance of Commercial and Social Interests helping reach customers in remote areas
of developing countries.
SESSION 8 - KEY ISSUES IN SEGMENTATION, TARGETING AND
POSITIONING
Schwarzkopf & Henkel case and lecture.
ASSIGNED READING
Price R, “Ignore your customers”, Focus Magazine, Winter 1997.
Carpenter G S, “Changing the Rules of the Marketing Game”, Financial Times Mastering
Marketing, 1999.
Re-read articles assigned to previous sessions.
SESSION 9 – PRODUCT LINE MANAGEMENT AND GLOBAL MARKETING
CASE
Gillette Indonesia
DISCUSSION QUESTIONS
This case is relies heavily on data. I expect you to do spreadsheet analyses of the information
contained in the case to help answer the following questions:
1. What is your estimate of the size of the market in 1996? Is Effio’s plan achievable?
2. Where would you focus your marketing efforts: Increase primary demand for blades or tradingup customers from blades to systems? To answer this question, analyze the profitability of the
1995 product mix, of Allan’s product mix, of Effio’s product mix, and of the Malaysian product
mix.
3. Write a marketing plan: Segment the market, write a positioning statement for Gillette, and
make recommendations for the 4 P’s.
ASSIGNED READING
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Niraj Dawar and Amitava Chattopadhyay (2000) “Rethinking marketing programs for emerging
markets,” INSEAD Working Paper #2000/47/MKT.
Prahalad, C. K. and Kenneth Lieberthal (1998), “The end of corporate imperialism,” Harvard
Business Review, 76 (4), 69.
SESSION 10&11 – ADVERTISING AND BRANDING
Intel CD-ROM case & Lecture
The CD-ROM will be handed out in class (setting up instructions enclosed herewith).
ASSIGNED READING
Kotler P, Chapter 15.
Ward S, Light L & Goldstine J, “What High-Tech Managers Need to Know about Brands”,
Harvard Business Review, Summer 1999.
Lee, A Y & Sternthal B, “Putting Copy-testers to the Test”, Financial Times Mastering
Marketing, 1999.
GUEST SPEAKER SESSION – BRAND REPOSITIONING
GUEST SPEAKER
Yves Dubreil, Head of Renault’s Luxury division will talk on the repositioning of Renault as a
“creator of automobiles” through the launch of its top-of-the-line Vel Satis and Avantime cars.
SESSION 12 – PRICING I (COST-BASED)
CASE
Kodak
DISCUSSION QUESTIONS
Like the Gillette Indonesia case, this case is relies heavily on data. I expect you to do break-even
analyses to evaluate the four possible options that Kodak has:
1. Do nothing
2. Decrease the price of Kodak Gold.
3. Increase the amount of advertising.
4. Launch Kodak Funtime.
ASSIGNED READING
Dolan R J, “Note on Low-Tech Marketing Math”, Harvard Business Review, Dec 1998.
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Rao, R R, Bergen M E & Davis S,“How to Fight a Price War”, Harvard Business Review,
March-April 2000.
Aaker D A, “Should You Take Your Brand to Where the Action Is?”, Harvard Business Review,
Fall 1997.
SESSION 13 - PRICING II (DEMAND-BASED) AND NEW PRODUCT
DEVELOPMENT
CASE
Biopure
DISCUSSION QUESTIONS
1. How do you assess Biopure’s potential in the human market? In the animal market?
2. How might Oxyglobin be a threat to Hemopure? How might it be an asset to Hemopure? What
will be the impact of Oxyglobin’s pricing on Hemopure?
3. Should Biopure launch Oxyglobin immediately or should they wait until after Hemopure has
established itself in the human market?
4. Regardless of your recommendation of whether or not to launch immediately, how would you
price and distribute Oxyglobin for an immediate launch? Would you segment the veterinarian
market, or would you target all veterinary practices? What price should they set? Should the
distribution be selective or comprehensive?
ASSIGNED READING
Kotler P, Chapter 12.
Gourville J., “Note on Behavioral Pricing”, Harvard Business School, May 1999.
SESSION 14 – RETAILING & CUSTOMER RELATIONSHIP MANAGEMENT
CASE
Tesco
DISCUSSION QUESTIONS
1. What are the pros and cons of loyalty schemes?
2. What do you think of Sainsbury’s response to loyalty schemes?
3. Comment on the supermarkets move into financial services. What are the implications for both
industry sectors?
4. What would you now do if you were the CEO of Asda?
ASSIGNED READING
Kotler P, Chapter 14.
Blattberg R C & Deighton J - “Manage Marketing by the Customer Equity Test”, Harvard
Business Review, Summer 1996
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Fournier, Susan., Susan. Dobscha, and David Glen (1998), “Preventing The Premature Death of
Relationship Marketing,” Harvard Business Review, January-February, 42-51.
SESSION 15+16 – WRAP UP AND MARKETING CRISIS MANAGEMENT
CASE
The Perrier Crisis
ASSIGNED READING
Re-read the Note on Marketing Strategy.
B Berman, “Planning for the inevitable product recall”, Business Horizons, Spring 1999.
INSTRUCTOR’S BIOGRAPHY
Pierre Chandon is Assistant Professor of Marketing at INSEAD. He joined INSEAD in 1999 after
being on the faculties of the London Business School and of the University of North Carolina at Chapel
Hill. Before that, he was a Visiting Scholar and Lecturer at Wharton, University of Pennsylvania. At
INSEAD, he teaches the Marketing Management 1 core course and the Advanced Brand Marketing
elective in the MBA program and teaches in various executive educations programs. Pierre Chandon
holds a PhD in marketing from HEC in Jouy-en-Josas and a MS from ESSEC in Cergy-Pontoise, both
in France. His expertise is in brand management and consumer behavior for low-involvement
products, with applications in the areas of sales promotions and point of purchase marketing. He has
published articles and books in leading academic journals, including Journal of Marketing and Journal
of Marketing Research. His dissertation won the Best Interdisciplinary Dissertation Award given by the
Foundation HEC in 1998. His work has been the subject of media coverage in Europe and the US, by
France Inter, L’Expansion, Les Echos, and the Marketing Science Institute.
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