BUSI 568

Marketing Analysis and Decision Making

Spring 2009

Professor: Tarun Kushwaha

Classroom: McColl 3350
Class Time: Monday & Wednesday, 9:30 AM – 10:45 AM (Section 001)
Monday & Wednesday, 11:00 AM – 12.15 PM (Section 002)
Office: McColl 4520
Office Hours: Anytime I am not teaching (by appointment)
Office Phone: 962-8746
E-Mail: tarun_kushwaha@unc.edu

Course Description
In today’s technology enabled world, organizations collect lot of information as a part of their
business operations and pool it with data acquired from outside sources. Marketing Analytics is
a systematic approach to harnessing this data/ information to drive effective marketing decision
making. We will learn to analyze historical data, market research data, and competitive
information for making strategic marketing decisions.

This analytical case based course aims to provide students with tools and techniques that will
help them to make numerous decisions as: how to analyze consumer choice behavior, how to
segment the market, which segments should be targeted, how to position the product in
customers’ minds, which attributes to include/ exclude in a new product, how to forecast sales of
new products, how much to spend on advertising, and how to evaluate marketing performance.
Each of these decisions will be made using analytic tools that are very often used by marketers
in the real world. These decision analytic tools will help us generate useful insights about
customer preferences, consumer behavior, and competitive market actions.

Specifically, the course objectives are to:

• Help students understand the role of analytical techniques and show how they can enhance
quality of marketing decision making in modern enterprises.

• Make students comfortable with powerful Excel based computing tools that are used for
data analysis in the field of marketing analytics.

• Improve students’ ability to view marketing processes and relationships systematically and
analytically.

• Expose students to various examples that demonstrate the value of marketing analytics in
real managerial contexts.

1
Course Format
This course will be extensively based on case analysis and hands on exercises. The cases and
exercises used in course will be bundled with data files which will be used for detailed data
analysis. The decision making for case problems will be based on insights that you will generate
from these analyses. Other pedagogical tools that will be used are lectures, in class
discussions, readings, and team assignments.

Course Materials
Required
1. Course Website will be available through Blackboard in school’s intranet.
2. Course Pack containing all required readings and four cases/exercises will be available
from UNC Bookstore ($50.95).
3. Marketing Engineering for Excel (ME>XL) is a Microsoft Excel based Add-In which will be
used as primary data modeling tool (six month license will cost $10). The software is
packaged with several cases/exercises (along with their data) that will be required for the
class. Details about how to purchase it will be covered in the first class. Password to
download software from the following link will be provided in the class.
http://www.mktgeng.com/student/store/index.cfm
Please note that this software is not available for Macintosh.
4. Please make sure that you have MS Excel 2007 version on your laptops. In addition, please
install ‘Data Analysis Toolpak’ and ‘Solver Add In’ before installing ME>XL. Details on how
to install these can be found at following links.
http://office.microsoft.com/en-us/excel/HP100215691033.aspx
http://office.microsoft.com/en-us/excel/HP100215701033.aspx
5. Data Files for cases/exercises not packaged with ME>XL will be posted on course website.
6. Lecture Slides will be posted on course website and distributed in the class.
7. Each student in the class is required to fill out the Beer Data Survey by January 20th. The
collected data will be used throughout the semester for analysis and decision making.

Optional
1. Textbook: Marketing Engineering: Computer Assisted Marketing Analysis and Planning by
Gary L. Lilien and Arvind Rangaswamy, Trafford Publishing, 2004, ISBN: 1412022525.
2. Technical Notes: Available at http://www.mktgeng.com/intro_principlestechnicalnotes.cfm

Grading
Weight
Individual Component
Midterm Exam 15%
Final Exam 15%
Attendance and Class Participation 20%
Team Component
Assignment#1: Alfonso or ABB Electric 10%
Assignment#2: Connector PDA or Blackberry 10%
Assignment#3: EBooks or Dürr 10%
Case Write Up: Ford Ka or Kirin 20%
Total 100%

2
Deliverables
Individual Component
Midterm and Final Exam
There will be two exams in the course. The exams will comprise of few short answer essay
questions based on lectures, class discussions, assigned readings, and any other material used
in the course. The exams will primarily test your understanding of key concepts covered in the
course.

Attendance and Class Participation

I will randomly take class attendance. I expect our class sessions to be very interactive. A truly
interactive session involves you not only interacting with me but also with the rest of the class. I
strongly encourage you to get to know each other by name and to respond thoughtfully to each
other’s comments during class. Active participation requires you to listen carefully to what your
classmates say in class. It is very important that you complete the assigned readings, prepare
the cases, and practice the in class hands on exercises for each class.

Team Component
Each team should ideally consist of 4 students. Each team should provide me the name of its
members on a sheet of paper no later than the second class period. Individuals who fail to form
a team by the designated date will be either grouped together or assigned to other teams. At the
end of the term each team member will get an opportunity to evaluate other members of the
team. This peer evaluation will be used to identify contribution of each team member as
perceived by other member of the team. If a team member is consistently rated poorly for
inadequate contribution by other members, points will be deducted from his/her team
assignment score.

Assignments
You will be required to work as a team to complete 3 team assignments. Details of what is
expected in each assignment will be provided in the class throughout the module. The
assignment write ups should not exceed 4 double-spaced pages (12-point font, 1-inch margins).
References, tables, figures, and appendix are not counted in this four page limit. The due date
for these assignments is mentioned in the course outline. The assignments are due at beginning
of each class.

Case Write Up
You will be required to work on 1 team case write up. Details of what is expected in this case will
be provided in the class. The write ups should not exceed 6 double-spaced pages (12-point
font, 1-inch margins). References, tables, figures, and appendix are not counted in these four
page limit. The due date for this case write up is mentioned in the course outline. The case write
ups are due at beginning of each class.

Each team can choose any of the following bundles for their deliverables. Roughly only half of
the teams in a class can sign up for a bundle (first come first serve). The due dates are
mentioned in the parentheses.

Bundle 1: Alfonso’s (Jan 26th), Connector PDA (Feb 11th), Ford Ka (March 2nd), Dürr (April 1st)

Bundle 2: ABB (Feb 2nd), Blackberry (Feb 23rd), E-Books (Mar 18th), Kirin (April 8th)

3
Course Policies
Preparation: It is important that you are familiar with the assigned articles and cases for that
class period. As a good citizen of the class it is your responsibility to contribute towards the
class learning.

Attendance: Attendance in lectures is required because material covered in class will generally
not be a repetition of the assigned reading. The ‘hands on tools’ that are integral part of this
course can only be learnt through ‘in class’ interactions. If you are likely to miss a class or an
exam for any reason please contact me in advance. The official absentee policy prescribed by
the UNC will be applicable.

Laptops, Phones, PDAs etc: You will be required to bring your laptops in every class.
However, you will be permitted to use them only when we are working on data analysis and
hands on exercises in the class. You are not permitted to use your laptops (or PDAs, phones
etc.) for other purposes as checking emails, reading news, trading stocks, checking sports
scores, applying for jobs etc.

Etiquettes: You should not engage in behavior that distracts us from teaching/learning, such as
arriving late, walking out early, talking while either I or your classmates are speaking, working on
or reading material that is not part of a class assignment, or using your laptops for work
unrelated to the class.

Assignments/ Case Write Ups: In interest of fairness and equity of the process my help on
assignments and case write ups will be restricted to only clarification questions.

Communication and Office Hours: Outside classroom the best way to get in touch with me is
through email. You are welcome to pass by my office anytime during the weekdays. However, it
is highly recommended that you write me an email before you plan to pass by my office
because I may be teaching, traveling, or attending another meeting at that time.

Copyright/Plagiarism

It is the responsibility of students and instructors to help maintain scholastic integrity at the
university by refusing to participate in or tolerate scholastic dishonesty. The material generated
for this class is copyrighted. Because these materials are copyrighted, you do not have the right
to copy the handouts, unless I expressly grant permission. Plagiarism involves passing off
another’s ideas, words, writings, etc. as one’s own. If you have any questions regarding
copyright or plagiarism, please consult the UNC Honor System manuals (http://honor.unc.edu/).

Special Services
If you feel you are entitled to special accommodations because of a disability, please see me
within the first week of class.

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 Outline Overview

Date Topic Deliverables

1/12 Course Introduction
1/14 Importance of Analytics Teams, Software Issues
1/19 NO CLASS (MLK Holiday)
1/21
Response Models
1/26 Assignment #1
1/28
Consumer Choice Behavior
2/2 Assignment #1
2/4
2/9 Segmentation
2/11 Assignment #2
2/16
2/18 Positioning
2/23 Assignment #2
2/25 NO CLASS (Team Work Day)
3/2 Case Analysis (Ford Ka) Case Write Up
3/4 Mid Term Exam
3/9
NO CLASS (Spring Break)
3/11
3/16
Forecasting
3/18 Assignment #3
3/23 Portfolio Planning
3/25
3/30 New Product Design
4/1 Assignment #3
4/6 NO CLASS (Team Work Day)
4/8 Case Analysis (Kirin) Case Write Up
4/13
4/15
Pricing and Resource Allocation
4/20 Peer Evaluation
4/22
4/27 Course Wrap Up Course Evaluation
4/29 Final Exam

5
 Detailed Outline
Note: (1) Although I fully expect to adhere to this course outline, it is subject to change.
Changes in this schedule will be announced in the class. (2) All assignments and case write ups
are due by the beginning of the class.

January 12th
Topics
• Course Introduction, Syllabus Discussion, Software for class (ME>XL)
Readings
• Course Syllabus (ON WEBSITE)
Cases/ Exercises
• None

January 14th
Topics
• Importance of analytics in modern organizations.
Readings
• Competing on Analytics, HBR, January 2006 (ON WEBSITE)
• Math will Rock your World, Business Week, January 2006 (ON
WEBSITE)
Cases/ Exercises
• None

January 19th
NO CLASS, MLK HOLIDAY

January 21st
Topics
• Introduction to linear response models.
• Use of multiple regression for understanding response functions.
Readings
• Regression Analysis (IN COURSE
PACK)
Cases/ Exercises
• Medical Advertising (DATA ON
WEBSITE)

January 26th
ASSIGNMENT #1 DUE
(Alfonso’s Department Store)
Topics
• Introduction to linear response models.
• Use of multiple regression for understanding response functions.

6
Readings
• None
Cases/ Exercises
• Alfonso’s Department Store (IN COURSEPACK DATA ON
WEBSITE)
January 28th
Topics
• How to analyze consumer choice behavior?
• Concepts of logistic regression and multinomial logistic regression.
Readings
• None
Cases/ Exercises
• Office Star (WITH ME>XL)
• Bookbinders Book Club (WITH ME>XL)

February 2nd
ASSIGNMENT #1 DUE
(ABB Electric)
Topics
• How to analyze consumer choice behavior?
• Concepts of logistic regression and multinomial logistic regression.
Readings
• None
Cases/ Exercises
• ABB Electric (WITH
ME>XL)

February 4th
Topics
• How to identify segmentation basis and number of segments in a product market?
• Use of cluster analysis for market segmentation.
• How to use demographic variables for targeting?
• Use of discriminant analysis for targeting.
Readings
• Cluster Analysis for Segmentation (IN COURSE
PACK)
Cases/ Exercises
• None

February 9th
Topics
• How to identify segmentation basis and number of segments in a product market?
• Use of cluster analysis for market segmentation.
• How to use demographic variables for targeting?
• Use of discriminant analysis for targeting.

7
Readings
• None
Cases/ Exercises
• Beer Data Analysis (DATA ON
WEBSITE)
• Office Star (WITH ME>XL)

8
February 11th
ASSIGNMENT #2 DUE
(Connector PDA)
Topics
• How to identify segmentation basis and number of segments in a product market?
• Use of cluster analysis for market segmentation.
• How to use demographic variables for targeting?
• Use of discriminant analysis for targeting.
Readings
• None
Cases/ Exercises
• ConneCtor PDA 2001(Segmentation) (WITH ME>XL)

February 16th
Topics
• How to successfully position a brand in customer’s mind?
• Use of perceptual and preference mapping techniques for positioning.
Readings
• Analyzing Consumer Perceptions (IN COURSE
PACK)
Cases/ Exercises
• None

February 18th
Topics
• How to successfully position a brand in customer’s mind?
• Use of perceptual and preference mapping techniques for positioning.
Readings
• None
Cases/ Exercises
• Beer Data Analysis (DATA ON
WEBSITE)
• Office Star (WITH ME>XL)

February 23rd
ASSIGNMENT #2 DUE
(Blackberry Pearl)
Topics
• How to successfully position a brand in customer’s mind?
• Use of perceptual and preference mapping techniques for positioning.
Readings
• None
Cases/ Exercises
• Blackberry Pearl (WITH ME>XL)

9
February 25th
NO CLASS
(Team Work Day)
March 2nd
CASE WRITE UP DUE
(Ford Ka)
Topics
• Making segmentation, targeting, and positioning decisions for new products.
• What determines the order in which these decisions are made?
Readings
• None
Cases/ Exercises
• Ford Ka (IN COURSE PACK, DATA ON WEBSITE)

March 4th
MID TERM EXAM

March 9th – 11th

NO CLASS
(Spring Break)

March 16th
Topics
• How to forecast adoption of radically new products?
• Use of Bass Forecasting model for making industry level sales forecasts.
Readings
• Forecasting the Adoption of a New Product (IN COURSE
PACK)
Cases/ Exercises
• None

March 18th
ASSIGNMENT #3 DUE
(E-Books)
Topics
• How to forecast adoption of radically new products?
• Use of Bass Forecasting model for making industry level sales forecasts.
Readings
• None
Cases/ Exercises
• Forecasting the Adoption of E-Books (IN COURSE PACK, DATA WITH ME>XL)

March 23rd
Topics
• How to determine ideal portfolio of products, segments, and customers?
• How to generate GE-McKinsey matrix for portfolio planning?

10
Readings
• None
Cases/ Exercises
• Office Star (WITH ME>XL)
• Addison Wesley Longman (WITH ME>XL)
March 25th
Topics
• How to identify optimal mix of product features in a new product/ brand?
• Use of conjoint analysis for product design.
Readings
• Understanding Conjoint Analysis in 15 Minutes (IN COURSE PACK)
• Conjoint Analysis: A Manager’s Guide (IN COURSE PACK)
Cases/ Exercises
• None

March 30th
Topics
• How to identify optimal mix of product features in a new product/ brand?
• Use of conjoint analysis for product design.
Readings
• None
Cases/ Exercises
• Office Star (WITH ME>XL)
• Forte Hotel Design (WITH
ME>XL)

April 1st
ASSIGNMENT #3 DUE
(Dürr Environmental Inc)
Topics
• Understanding the concept of tradeoffs made by consumers.
• How to identify optimal mix of product features in a new product/ brand?
• Use of conjoint analysis for product design.
Readings
• None
Cases/ Exercises
• Dürr Environmental Inc (WITH ME>XL)

April 6th
NO CLASS
(Team Work Day)

April 8th
CASE WRITE UP DUE
(Kirin USA Inc)

11
Topics
• Making product design and STP decisions for new products.
• Using conjoint analysis in conjunction with cluster analysis and perceptual mapping
Readings
• None
Cases/ Exercises
• Kirin USA Inc (WITH
ME>XL)
April 13th
Topics
• Understanding the basic concepts about pricing and revenue management systems.
Readings
• None
Cases/ Exercises
• None

April 15th
Topics
• Optimal resource allocation to advertising and budgeting problems.
Readings
• Resource Allocation: Marketing Engineering Technical Note (ON WEBSITE)
Cases/ Exercises
• Office Star (WITH ME>XL)
• Blue Mountain Coffee (WITH
ME>XL)

April 20th
Topics
• Optimal resource allocation of sales force.
Readings
• A Note on Sizing the Sales Force (IN COURSE
PACK)
Cases/ Exercises
• John French Call Plan (WITH ME>XL)

April 22nd
Topics
• Optimal resource allocation of sales force.
Readings
• None
Cases/ Exercises
• Syntex Laboratories (IN COURSE
PACK)

April 27th

12
Topics
• Course wrap up and strategic summary
• Course evaluation
Readings
• None
Cases/ Exercises
• None

April 29th
FINAL EXAM

13