MGMT E-6000 Marketing Management

Fall 2017

Instructor: Dr. John L. Teopaco

E-mail: jteopaco@fas.harvard.edu

Required Materials: Use this unique link to access the coursepack at the discounted rate.

http://cb.hbsp.harvard.edu/cbmp/access/65316608

The cases and articles that you purchase from the link are the only required
materials for the course. Print the materials and bring them to class when they are
assigned per the schedule in the syllabus.

Class Meeting Time: Tuesday, 7:40 9:40 p.m.

Class Location: Harvard Hall - 202

COURSE DESCRIPTION

You cannot teach a man anything.

You can only help him discover it within himself.
- Galileo Galilei

Marketing is the interface between the company and the marketplace. Managers in all functional
areas of business need an understanding of marketing fundamentals. While marketing managers
create and implement marketing strategy, managers in accounting, finance and operations also need
to understand marketing plans that require their cooperation or approval.

This course covers the processes involved in the creation, communication, sale and distribution of
products. It takes a managerial perspective exposing students to the tasks and decisions faced by
marketing managers, including target market selection, competitive positioning, and the formulation
of product, pricing, communications and distribution strategies.

COURSE OBJECTIVES

The principal objectives of the course are to enable you to:

1. Understand and apply the basic concepts and frameworks of marketing management
2. Perform rigorous qualitative and quantitative analyses required for the formulation of
effective marketing programs
3. Communicate effectively in writing and orally
GRADING

The course grade will be determined accordingly:

Class participation - 40%

Written case analysis - I - 30%
Written case analysis - II - 30%
100%

Your participation grade is based on attendance, punctuality, regularity and quality of contributions
to class discussions. Please note: Attendance is a necessary but not sufficient condition for a
satisfactory grade. You need to make significant contributions!

THE CASE METHOD OF LEARNING

He that has sense knows that learning is not knowledge,

but rather the art of using it.
Richard Steele

Cases provide vehicles for learning diagnostic skills. They illustrate applications of the concepts and
frameworks introduced by the assigned readings. Case studies are instructive in two ways. Initially,
they require pre-class preparation, offering an opportunity to diagnose case problems and issues, to
select appropriate forms of analysis (e.g., quantitative, logic, experience, conceptual), and to apply
the lessons in the form of case solutions. Before the start of class, each student should be able to
recommend concrete measures to the challenges presented in the case study and be capable of
defending them based upon solid evidence and coherent analysis.

Secondly, case studies illustrate the diversity of approaches to any given problem, encouraging
students to realize that others do not always diagnose, analyze, and solve dilemmas in the exact same
fashion. This course demands that class members understand alternative approaches, learn from
their colleagues, and engage in a constructive dialogue with their peers. To do so requires that
participants listen to each other as well as talk in class. Furthermore, we ask that class members
defend their position in order that they may fully understand its strengths and weaknesses. There is
no single right answer for a case, just as there is rarely a single right decision in actual practice.

You will be expected to be present for all class sessions and to arrive on time. Your participation
grade will reflect your comments made during discussions. You will be evaluated on your
performance for each class. If you absolutely cannot attend class, please let me know in writing in
advance and provide a specific reason.

The grading of class participation is necessarily a subjective exercise. However, some criteria for
evaluating effective contributions include:
Does the student demonstrate an eagerness to participate?
Is the student a good listener? Does he/she build on others comments?
Is the student willing to interact with other class members?

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 Are the points made relevant to the discussion? Are they linked to others comments?
Do comments demonstrate evidence of in-depth analysis of the case?
Do comments add to our understanding of the situation?
Do comments make a substantive contribution to the advancement of our analysis?
Is there a willingness to test new ideas, or are the comments safe?
Do comments show an understanding of concepts or analytical techniques properly applied
to the current situation?
Is the student presenting insightful quantitative analysis?
Is the student presenting ethical considerations and insights?

WRITTEN CASE ANALYSES

You will write two case analyses. The analyses should be no longer than five, double-spaced,
typewritten pages. They should be addressed to the appropriate executive in the case. The report
should be an actionable, thorough but concise, well-supported document. Do not repeat case facts
unless you are citing them as support for your analysis. (Refer to guidelines provided in the
Syllabus and to the article in your coursepack, How to Write a Case-Based Essay.)

RULES OF THE GAME

Education is not preparation for life; education is life itself.

- John Dewey

We shall treat our class sessions as business meetings. As such, attendance, punctuality,
preparedness, and meaningful contributions are required. Well practice professional demeanor in
class. Specifically, we shall adhere to the following protocols:

(1) Arrive on time. Quit on time.

(2) This is a discussion class, and not a note-taking class, therefore, computers are
not allowed.

(3) Stay during the entire duration of the class. Do not leave prematurely. If you must leave early,
please alert me in advance.

(4) You may bring beverages to class. Please do not eat in class.

(5) Turn off cell phones.

(6) Only one conversation at a time.

(7) Bring your name card to every class.

(8) Stay in the same seat.

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(9) Raise your hand and wait to be acknowledged before you speak.

(10) Do not raise your hand when someone else is speaking.

If an emergency arises and class is cancelled, in the next class, we shall pick up where we left off
(i.e., well cover the assignment that was missed).

ATTENDANCE / LATE POLICY

You are expected to attend all classes, to arrive on time for each class, and to stay for the entire
duration of the class. Any unexcused absence, tardiness, or early departure will lower your
participation grade for that class session.

If you have an excusable absence, email me in advance and provide a specific reason for your
absence, and turn in (via email) written answers to the assignment for the missed class upon
your return. Otherwise, your absence will not be considered excused.

HARVARD EXTENSION SCHOOL GRADING POLICIES

Grades reflect the quality and quantity of a students work submitted throughout the term according
to the grading standards listed below. Undergraduate- and graduate-credit students may earn the
following grades:
A and A grades represent work whose superior quality indicates a full mastery of the
subject and, in the case of A, work of extraordinary distinction. There is no grade of A+.
B+, B, and B grades represent work of good to very good quality throughout the term;
however, it does not merit special distinction.
C+, C, and C grades designate an average command of the course material.
D+, D, and D- grades indicate work that shows a deficiency in knowledge of the material.
E is a failing grade representing work that deserves no credit. E may also be assigned to
students who do not submit required work in courses from which they have not officially
withdrawn by the withdrawal deadline.
This description is drawn directly from the Harvard Extension School website. Harvard Extension
School policy is that grades below a B- do not count toward the Certificate Program.

INSTRUCTOR BACKGROUND

I have had a varied career in marketing, consulting and teaching. After receiving my MBA degree
from the University of Minnesota, I worked in product management for The Pillsbury Company,
Citibank, and in account management for Ogilvy & Mather Advertising.

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After this corporate experience, I decided to pursue my interest in teaching by studying for my
doctorate in marketing at Harvard Business School. I am an Adjunct Professor at Boston College,
Emerson College, and Harvard Extension School. Prior to that, I was in the marketing faculty of
Boston University, Northeastern University, Miami University (Ohio), Babson College and Fisher
College.

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 MGMT E-6000 MARKETING MANAGEMENT

CLASS PREPARATION QUESTIONS

Bad Faculty Can Lessen Value of Night Schools Lessons

1. What is the author complaining about? What does she find lacking in night school teaching?

2. What would the author prefer to see in the classroom? Why?

Trap-Ease America: The Big Cheese of Mousetraps

1. Is Trap-Ease a good product? What are its benefits?

2. Why is Trap-Ease not selling well?

3. How would you change Trap-Eases marketing strategy in terms of the target market, the product
itself, price, marketing communications/promotion, and product distribution and availability?
Provide your rationale.

Framework for Marketing Strategy Formation - I

1. What is a marketing strategy?

2. What are the 4 Ps? Illustrate with the Trap-Ease case.

3. What are the 5 Cs? How do they relate to the 4Ps? Illustrate with the Trap-Ease case.

Aqualisa Quartz

1. Why is the Quartz shower not selling?

2. How do the different types of shower valve consumers (premium, standard, value,
do-it-yourselfers) buy shower valves? What purchase criteria are important to each?

3. Map out the various channels of distribution (diagrams with the appropriate intermediaries like
showrooms, distributors, trade shops, etc.) that Aqualisa uses to reach the various types of shower
valve buyers.

4. What should Rawlinson do to generate sales momentum for the Quartz product? Should he
change his marketing strategy to target consumers directly, target the DIY market, or target
developers? Cite pros and cons of each option.

5. Should he lower the price of the Quartz? Why/why not?

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Framework for Marketing Strategy Formation - II

1. The central role of marketing in the enterprise stems from the fact that marketing is the process
via which a firm creates value for its chosen customers. What does this mean to you?

2. Be prepared to discuss the application of the 5Cs and 4Ps frameworks to the Aqualisa case.

Note on Low-Tech Marketing Math

1. What are the dollar and percentage contribution margins of the Trap-Ease mousetrap?

2. What is the breakeven volume of the Trap-Ease mousetrap?

3. What is the contribution margin (dollars and percentage) of the Aqualisa Quartz Pumped for the
manufacturer? [Refer to Exhibit 8.]

4. What is the breakeven volume of the Aqualisa Quartz if the branding advertising campaign were
to be launched?

Product Team Cialis: Getting Ready to Market

1. What are the most relevant dimensions along which to segment the patient (not partners/spouses
and doctors) market for ED treatment? (This is a separate and independent step from the selection of
the actual targetsee next question below.)

2. Of the patient segments identified, which would you target with Cialis?

3. What is Viagras positioning in the marketplace in 2002? How would you characterize the
Viagra brand?

3. What would be the most effective way to position Cialis in the marketplace?

4. What marketing mix activities should accompany the launch of Cialis?

a) What would be the most important messages to communicate to the target patients?
To physicians? To partners?

b) What medium would you use to reach each of these parties and what would your
relative resource allocation be to each?

c) How would you price Cialis (assuming no health coverage)? What type of
promotions would you offer?

Market Segmentation, Target Market Selection and Positioning-I

1. Explain the differences between segmentation, targeting, and positioning.

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2. What are the major bases for segmenting consumer markets? (Refer to Framework for
Marketing Strategy Formation.) Cite examples.

3. How does one determine which market segment to target?

Competing with a Goliath

1. What is Telas current positioning and how well is it working?

2. Who is Telas current target market? Who should Tela be targeting?

3. What is Sairas positioning? What do they offer that Tela does not, and what does Tela offer that
Saira does not?

4. Which of the four brand positioning options should Tela pursue? What consumer-, competitive-,
and company-related criteria are you using to evaluate each option? What other value propositions
might the company employ?

5. What special challenges does Tela face as a second-mover?

Market Segmentation, Target Market Selection and Positioning-II

1. What is the significance of positioning to marketing strategy?

2. How do you develop a positioning for a product?

3. What is a positioning statement?

4. How do companies differentiate their products for effective positioning? Cite examples.

British Airways: Go for It, America! Promotion

1. Whats the problem facing BA? Is it reality or perception?

2. Evaluate each of the strategic marketing alternatives that BA considered in addressing the
business downturn problem. Do you agree with the BA executives assessments?

3. Assess the Go for It, America! promotion. Is it really a big idea? Will it be able to deliver
the $78 million incremental revenue goal?

4. Can you think of ways to enhance its launch to help ensure its success?

Integrated Marketing Communications

1. What is integrated marketing communications?

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2. Explain the various communications mix tools/vehicles. For what objective is each tool best
suited? What are advantages and disadvantages of each vehicle?

3. What is fundamentally different between sales promotions and media advertising?

4. Whats the difference between consumer promotions and trade promotions?

5. Explain the 6Ms model for communications planning.

General Mills, Inc.: Yoplait Custard-Style Yogurt (A)

1. Be prepared to discuss the methodology (objective, respondents, procedures) and key findings
from each stage of Yoplaits new product development process.

Idea Generation Sessions (Who was involved? How did they vet ideas?)

Concept Test Screening (What concepts were tested? How? What criteria were used?)

Prototype Testing

Concept Fulfillment Test (How is this step different from Prototype Testing?)

2. Why do a test market? What uncertainties remain, if any?

3. Which or which combination of research methods would you recommend? What sequence?
What are the pros and cons of each of the test market alternatives being considered by Becker?

Principles of Product Policy - I

1. What is product policy? What are key product policy decisions?

2. What is a new product development process? What are the characteristics of an effective one?

Nanda Home: Preparing for Life after Clocky

1. How do you explain Clockys success pre and post its launch in late 2006? What is your
explanation for why sales have slowed in recent years?

2. Do you believe the new alarm clocks Nanda is planning to launch will fare well among
consumers? How will they impact Clocky sales?

3. What insights do you glean from the market research that Gauri has conducted on consumers
perceptions of alarm clocks and the new ideas she is considering? Do you recommend further
development of any of these ideas?

4. Can Nanda replicate Clockys success with the launch of her new product ideas? Which aspects

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of Clockys launch are replicable and which are serendipitous and, hence, difficult to replicate?

5. Do you believe the general concept of adding human character to everyday objects can be
applied to other products besides alarm clocks? If so, which ones? Are there certain consumer
segments that are more open to the humanization of the products they possess?

Principles of Product Policy - II

1. What is a product line? What is product line length? What is product line breadth?

2. What are important considerations in formulating a product line strategy?

3. Be prepared to explain the product life cycle.

Note on Innovation Diffusion: Rogers Five Factors

1. Be prepared to explain the diffusion of innovation theory based on people differences.

2. Be prepared to explain the diffusion of innovation theory based on product differences.

3. How can a marketing manager put to use these theories?

Principles of Pricing

1. What is cost-based pricing? Whats wrong with it?

2. What is true economic value? (Be prepared to explain the TEV illustration in the reading.) What
is TEVs role in pricing strategy?

3. What factors determine price sensitivity? Be prepared to discuss and illustrate with examples the
various factors.

4. How do we use economic value and price sensitivity factors to set price?

Metabical: Pricing, Packaging, and Demand Forecasting for a New Weight-Loss Drug

1. What considerations should be taken into account when making decisions about the package
count? What package size would you recommend?

3. What are the advantages and disadvantages of each pricing strategy option? What price would
you recommend?

4. What are the pros and cons of the forecasting methods presented by Printup? If you had to
estimate demand for this product, how would you go about it? What would your demand (unit)
forecast look like for the first five years? [Refer to the following forecasting tips.]

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5. What impact does your pricing decision have on profitability? What is the ROI over the first five
years for each of the pricing strategies identified? [Refer to the following forecasting tips.]

Metabical Forecasting Tips

Please refer to the attached template for your forecasts and ROI calculation.

In forecasting sales of Metabical, please use the following data:

(1) 34% of Americans have a BMI between 25 and 30the overweight segment
[Exhibit 1]

(2) U.S. population in 2008 was 230 million [page 2]

(3) In forecasting Methods 1 and 2, 10% will try Metabical the first year, and in subsequent years, an
additional 5% of those who are comfortable using diet pills will try. For example, in year 2, a total
of 15% (10% + 5%) will purchase Metabical for the first time. [page 6]

(4) In Method 3, 30% will try Metabical the first year, then an additional 5% of target consumers
will purchase each subsequent year. For example, in year 2, 35% will purchase Metabical for the
first time. [page 6]

(5) For all forecasting methods, take into account the 60% repurchase rate for the second package,
and the 20% repurchase rate for the third package of Metabical in every year. [page 6]

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(6) In calculating ROI, take into account the $400 million in R&D. For year 1, fixed costs include
Marketing ($23 million) and Manufacturing overhead ($1.2 million). For subsequent years, assume
an annual marketing expenditure of $15 million and manufacturing overhead of $1.2 million.

Crafton Industries, Inc.

1. What is Craftons marketing strategy? (target, positioning, marketing mix)

2. What are the pros and cons of a wholesale vs. a company distribution system?

4. What are the economics (financial implications) of a company distribution system vs. a wholesaler
network? Compare the costs of the two approaches.

Financial Analysis Tips:

In your calculations, make sure that the gross margin percentages and sales revenues that you are
using are consistent with each other (i.e., wholesaler margins are applied to wholesaler sales
revenues).

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 Note that there are costs associated with financing or carrying accounts receivable. The case
states that a 90-day collection period exists therefore accounts receivable turn over 4 times per
year.

Under the existing system, Crafton finances wholesalers accounts receivable.

If Crafton goes with direct distribution, the company will assume additional inventory carrying
costs at the warehouses, which it did not incur when it simply sold inventory to wholesalers.

Important Notices:

On page 435 of the case, the sentence on the mark-up on cost should read a mark-up on cost of
25%. This is equivalent to 20% margin on sales referred to in the previous sentence.

On page 436, One field sales manager would be needed to manage eight sales representatives does
not mean that only 8 sales reps should be hiredit is simply telling you that whatever number of
sales reps you think should be hired, you will need a manager for every 8 reps.

Distribution Policy - I

1. What functions do marketing channels perform?

2. What are channel length decisions? What considerations must be taken into account?

3. What are channel breadth decisions? What considerations must be taken into
account?

Natureview Farm

Please use a two-year horizon in any calculations.

1. How has Natureview succeeded so far? What role did the natural foods channel play in their
success?

2. How do the three options compare in terms of gross margin% and $/unit? In terms of
marketing investments? Profit potential?

3. What are the strategic advantages and risks of each option? What channel management and
conflict issues might arise?

Financial Analysis Tips:

In preparing the Natureview case, please take into account the following costs for the various
options:

Option 1: Advertising, Slotting Fees (120 SKUs), Trade Promotions (4 per year), Brokers fees (4%

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of manufacturer sales), Incremental SG&A
Option 2: Advertising, Slotting Fees (256 SKUs), Trade Promotions (2 per year), Brokers fees,
Incremental SG&A

Option 3: Advertising, Free Goods at 2.5% of manufacturer sales, Brokers fees

In calculating manufacturer (Natureview) sales, use the Manufacturers Selling Price, not Retailer
Selling Price.

You do not need to use a discount rate in your calculations.

Please note that the case states that natural yogurt sales in supermarkets will grow 20% per year and
yogurt sales in natural food channels will grow 15% per year. Take these growth rates into account
in projecting sales over the next few years.

Distribution Policy - II

1. What are channel conflicts? How do they arise?

2. How can a manufacturer mitigate or minimize channel conflicts?

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 WRITTEN CASE ANALYSIS - I

METABICAL: POSITIONING AND COMMUNICATIONS STRATEGY

FOR A NEW WEIGHT LOSS DRUG

General Guidelines

Your report should be no longer than five pages double-spaced, 1-inch margins, 12-size font, with
page numbers, and stapled (no plastic/hard covers, please). If you wish to include exhibits that you
have created, you can include up to three exhibits in addition to the five pages of narrative. Reports
will be collected in class. Late reports will not be accepted.

Form and presentation count. Your writing should be presentable to top management lucid,
persuasive, proper grammar and sentence structures, no typos. Stylistically, be directuse terse,
simple sentences. Organize your report around topic headings and
sub-headings. Be decisive and persuasive.

Edit and proofread your work. Sloppy and unprofessional writing will lower your grade.

Please do not conduct outside researchuse only the data provided in the case.

Analysis Guidelines

Assume the role of a marketing consultant to Barbara Printup, senior director of marketing. Write a
report to her addressing the following:

How should Metabical be positioned, and what should be its marketing communications plan and
budget?

In your analysis, please consider the following (in addition to other considerations):

What are the strengths and weaknesses of each element of the proposed communications plan
in Exhibit 4?

Would you change the marketing communications mix and budget?

I am particularly interested in the analysis that leads to your recommendations. An outstanding

report is balancedciting pros and consand it covers all the key issues and areas of analysis in an
insightful and logical manner.

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 COMMON ERRORS TO AVOID IN WRITTEN CASE ANALYSES

1. Repeating and rehashing case facts

Analyze data; dont just play them back.

2. Concluding that the data are inadequate

Use what you have and/or make assumptions.

3. Incomplete / Imbalanced analysis

Dont stop halfway through; cover all the important issuesboth pros and cons.
Remember: Analysis is more important for grading purposes than the solution you
happen to recommend.

4. Inadequate quantitative analysis

If you are given pertinent numerical/financial data, be sure to analyze them appropriately.

5. Indecisiveness
When you encounter conflicting data, dont hedge; state your assumptions and fly with
them.

6. Poor organization of the report

Do not simply string together a series of random compound sentences! Use headings and
subheadings. I value reports that flow as well as sparkle with enthusiasm and wit.

7. Lack of editing
Be sure to read your report after its typed! Avoid incomplete and excessively long
sentences. Look for typos and correct grammatical errors. Include page numbers.
Staple.

8. Miscellaneous errors
Exclusive attention to a single option or point of view.
Presenting a massive catalog of problems or alternatives.
Overblown recommendations.
Inconsistent recommendations.
Externalizing or shifting problem elsewhere.

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 WRITTEN CASE ANALYSIS - II

LOREAL OF PARIS:
BRINGING CLASS TO MASS WITH PLENITUDE

General Guidelines

Your report should be no longer than five typewritten pagesdouble-spaced, 1-inch margins, 12-
size font, with page numbers, and stapled. Additionally, you can have up to two exhibits that you
create as an appendix.

Assume the role of a marketing consultant brought in to advise Carol Hamilton, senior vice president
of marketing. Your report should be addressed to her. Please limit your analysis to data presented in
the case. Do not conduct outside research.

Analysis Guidelines

Your task is to provide the following:

(1) Analysis of LOreal Plenitudes problem in the U.S. as of April 1996. Identify,
analyze and discuss root causes. [70% of report]

(2) Plan of action that Carol Hamilton should take. [30% of report]

Consider the following points and integrate useful insights into your analysis and recommendation
simply answering these questions should not constitute your report. Regard these as prompts
for your analysis:

Plenitudes target market and positioning/value proposition

Plenitudes marketing mix
Competitors strategies
Consider the three custom research studies presented in the case. Incorporate whatever insights
you draw into your analysis.
As part of your plan of action, recommend what should be done with Revitalift.

You are not expected to do any financial breakeven analysis. And if you are analyzing prices, you
can just use averages for comparison.

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 MGMT E-6000 Marketing Management
Fall 2017 Course Schedule

MODULE DATE ASSIGNMENT

Course Orientation 8/29 1) Bad Faculty Can Lessen Value of

Night Schools Lessons
2) Learning by the Case Method
3) Marketing Class Discussion Guidelines
4) Why Im Asking You Not to Use Laptops
5) Syllabus

Marketing Strategy 9/5 1) Trap-Ease America: Big Cheese of Mousetraps

2) Framework for Marketing Strategy Formation-I

9/12 1) Aqualisa Quartz: Simply a Better Shower

2) Framework for Marketing Strategy Formation-II

9/19 1) Framework for Marketing Strategy

Formation (continued)
2) Note on Low-Tech Marketing Math

Segmentation, Targeting, 9/26 1) Product Team Cialis

Positioning 2) Market Segmentation, Target Market
Selection and Positioning - I

10/3 1) Competing with a Goliath

2) Market Segmentation, Target Market
Selection and Positioning - II

Marketing Communications 10/10 British Airways: Go for It, America! Promotion

10/17 Integrated Marketing Communications

10/24 Due: Written Case Analysis - I

Metabical: Positioning and Communications

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 Strategy

MGMT E-6000 Marketing Management

Fall 2017 Course Schedule

MODULE DATE ASSIGNMENT

Product Policy 10/31 1) General Mills: Yoplait Yogurt (A)

2) Principles of Product Policy I

11/7 1) Nanda Home: Preparing for Life after Clocky

2) Note on Innovation Diffusion
3) Principles of Product Policy - II

Pricing Policy 11/14 1) Principles of Pricing

2) Quantum Auto Shield

11/21 Metabical: Pricing, Packaging, and Demand

Forecasting for a Weight-Loss Drug

Distribution Policy 11/28 1) Crafton Industries, Inc.

2) Distribution Policy - I

12/5 1) Natureview Farm

2) Distribution Policy - II

12/12 Written Case Analysis - II

LOreal of Paris: Bringing Class to Mass
with Plenitude

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