National University of Singapore

NUS Business School

Marketing Management (BMA 5009)

Instructor: Professor Ganesh Iyer

Office: BIZ1 -8-33
Phone: 6516-7445
Email: bizgki@nus.edu.sg
Session: Semester I, 2011-12 (Aug. – Nov. 2011)
!
Office Hours: Mondays 2.30 pm to 3.30 pm,
(You may, of course, reach me by email or phone)

1.0 Course Objectives:

As the core marketing course in the program, Marketing Organization and Management is a survey course
designed to provide students with an understanding of the basic concepts of marketing management and
experience in making marketing strategy decisions. Specifically, the course will cover issues relating to the
marketing concept, designing marketing strategy, and implementing marketing tactics. The treatment will be both
conceptual as well as with an emphasis on managerial decision-making.

2.0 Readings
The readings for the course and the cases will be contained in the course packet. In addition, there will be
some recommended readings from various texts. Additional readings may be handed out in the class.

3.0 Class Format:

The course will make a mix of lectures, in-class exercises and the case method. The weights used in arriving
at the final grade for the course will be as follows:

Class Participation 10%

Case analysis 10%
Group project 30%
Mid-term exam 15%
Final exam 35%

Case Preparation and Mechanics (Please also read the note on cases “How to make the case method work for you” which I
will circulate in class)
Full preparation by all class participants is essential to have fruitful class discussions. Merely reading the
case will not be enough. The successful use of the case method depends on careful and thorough preparation, and
active class participation. Therefore the quality of your preparation and the resulting participation will be a
determinant of the grade received in the course.
Step 1, Individual Preparation:
It is recommended that you first prepare each case through two readings. It is best to first read the case
quickly to develop an overview and then read the case more thoroughly a second time. This second reading will
help you to identify the problem and the major issues. Make any notes and mark-up the case to help structure the
facts. Once you have a good grasp of the case fundamentals, you can aim to develop specific recommendations
for the problem that you have identified and to answer the discussion questions that I will provide for every case.
Develop alternative solutions to the problem and debate the pros and cons of each solution. Consider the course
material covered up to that point in time and the assigned readings (if any) for the day. As is often the case in
actual practice, cases may not have all the data you would like. Nevertheless, an important part of the learning is
based upon your developing a reasoned plan of attack based upon available data. In the class discussion, I will try
and build an analysis of the situation and address the problems and issues in the case. Each person must be
prepared to share her (his) individual views with the class. The objective of the class discussions is to examine all
aspects of the situation: facts, suppositions, alternatives or final action. My task as the instructor is to facilitate the
discussion and pull together the prevailing views and the important themes of the case. The overall quality of the
discussion, however, is the collective responsibility of the entire class.

Step 2, Group Discussion:

After your individual preparation of a case you will benefit a lot by discussing your case analysis with your
group. This group discussion is recommended for all cases and not just for the assignments. In this group
discussion you should try to see whether your colleagues have alternative points of view and understand the
rationale for such views

A typical request at the end of a case discussion is: What is the answer? The might not always be a single
correct answer. In most case discussions there can be several viable "answers/alternatives" that are developed and
supported by different participants in the class. What is critical, therefore, is an understanding of the rationale for
each alternative and the pros/cons of pursuing competing alternatives. The presence of several alternatives does
not mean that “anything goes”.

Class Participation
Class participation will be graded after each class meetings. The instructor may cold-call in this class. Lack of
preparation can hurt your class participation grade. The characteristics of effective class participation are suggested
by the following three questions.

1. Do the comments show evidence of analysis of the case and does it add to our understanding of the problem?
2. Does the participant go beyond simple repetition of the case facts and move the class into new territory?
3. Is the participant a good listener? Are the comments linked to relevant comments made by others?

I will assume that you have read the reading assignments before coming to class. For each class, you should
be prepared to discuss materials related to both the previous lecture and the assigned readings. I will also assume
that you have thoroughly analyzed all cases and the assigned case questions and are prepared to discuss them in
class. Please display your name card. Your attendance is important. Absences from class without prior
notification will affect your class participation grade.

Written Assignments
You will submit a group case assignment. Each assignment will be based on specific questions/issues that
will be given to the students. The case write-up is due at the beginning of the class on the day the case is to be
discussed. No assignment will be accepted late. More details about the assignments will be provided in-class.

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 SCHEDULE OF ACTIVITY

Week Assignment
2 Groups Formed

6 Midterm Quiz

5 Group Case Assignment (Optical Distortion Case)

13 Group Project Presentation

I will also provide detailed guidelines for the group project in the first class of the semester.

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 BRIEF OUTLINE

Week Session Topic

1. Introduction:
(15/08) Part 1: Introduction to Marketing Management (Framework for Marketing Management)
Case: Bombardier (Marketing Myopia)

2. Creating Customer Value

(22/08) Case: Medicines Company

3. Customers, Company and Competition (Segmentation/Positioning)

(29/08) Ford Ka: The Market Research Problem (cases A, B, C)

4. Branding Strategy
(05/09) Case: Intel Inside

5. Pricing Strategy
(12/09) Case: Optical Distortion.

6. Midterm exam (1 hour)

(17/09) Business to Business Pricing
Case: Goldstar-FastChip (to be distributed in class)

7. Product Line and Bundling Strategies

(26/09) Cambridge Software Corporation

8. Distribution and Going to Market

(03/10) Case: The Challenges of Rural Markets in India (Insead case preprint)

9. Direct Marketing
(10/10) Case: Calyx and Corolla

10. Customer Relationship Management

(17/10) Case: Harrah’s Entertainment Inc.
11. Advertising
(24/10) Case: BMW roadster, Non Traditional Advertising

12. Course Wrap-up

(31/10) Integrating the marketing mix
Case: McDowell’s Vintage
13. Project Presentations
(05/11)
*
14. Final Exam
(12/11)

*07/11 is likely a holiday and so the class will be held on Saturday 05/11.

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 DETAILED OUTLINE OF SESSIONS

MARKETING CONCEPT AND CONSUMER ANALYSIS

WEEK 1: INTRODUCTION TO MARKETING MANAGEMENT:

In this introductory class we present a framework for marketing management that will unify the remaining
sessions of the course. We will also go over the syllabus, the requirements of the course and other
administrative details.

CASE: Bombardier and Alstom (Insead case # 5117)

Marketing management involves a process for approaching and solving marketing problems. In this
session, we put the process into practice. We will use Bombardier and Alstom to introduce the marketing
concept in action and to give you an appreciation for the strategic role of marketing orientation in a
company. Because some study groups will not be able to meet in time to prepare this case, each individual
student should prepare answers to the following discussion questions.

STUDY QUESTIONS:

1. What should a marketing orientation mean for Bombardier?

2. Where is the problem, with Bombardier or with Amtrak? What could have been done to improve the
relationship between Bombardier and Amtrak?
3. What are the reasons for Alstom to license its best technology to a competitor?

ASSIGNED READING:

! This syllabus and course description. A review of the syllabus materials will give you a good idea of the
structure and content of the course.
! Levitt, “Marketing Myopia” HBR Classic, Reprint R0407L.
! “Note on Marketing Strategy,” Robert Dolan," Harvard Business Review. Harvard Business School
Publishing, October 29, 2007.

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WEEK 2: CAPTURING CUSTOMER VALUE

CASE: The Medicines Company (HBS 9-502-006)

It is early 2001 and the Medicines Co. just received FDA approval to market Angiomax, a blood thinner to
be used during angioplasties and heart procedures. It is intended to be a better alternative to Heparin, an
80-year-old drug that costs less than $10 per dose. The company believes it can sell Angiomax for a much
higher price than Heparin--but how much more? Angiomax also represents the first of several drugs being
developed under a rather unique business model. The company is in the business of "rescuing" drugs that
other companies have given up on--i.e., they purchase or license the rights to drugs that other companies
have halted development on, with the intent of completing the development process and bringing the drug
to market. With the success of Angiomax, the company feels that this business model has been validated.

STUDY QUESTIONS:

1. How much is the value of Angiomax?

2. What is the willingness to pay of the hospital and how do you calculate this value?
3. Analyze the likely adoption of Angiomax and the company’s plans to influence this adoption?
4. Comment on the company’s business model.

ASSIGNED READING:

! Economic Benefits and Value Creation (Reading from Roger J. Best pp.105-129, chapter 4)

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WEEK 3: CUSTOMER ANALYSIS, MARKET SEGMENTATION AND POSITIONING

We devote this session to presenting a framework that is useful for understanding customer behavior.
We will start the session with the consumer behavior exercise. This will require you to interview and
collect data from one customer. In the second half of the class, we will develop a framework and use it to
operationalize the concept of market segmentation. The Ford Ka exposes you to the strategic and the
market research aspects of market segmentation. Segmentation is a tool to divide heterogeneous markets
into more homogeneous sub-markets based on the characteristics of customers. Targeting is the process
of choosing the most attractive segments for the company to pursue. Together segmentation and targeting
integrate the analyses of customers, company and competition into Positioning.

CASE: Ford Ka: The Market Research Problem (cases A, B, C) (Insead 06/2003-5066)

Ford the third largest car manufacturer in Europe decided to launch the Ka in small car market. Before
Gilles Moynier can get to the specifics of marketing strategy, Ford must analyze market research and
decide on a market segmentation and target selection strategy.

STUDY QUESTIONS:

1. Can different demographic variables separate out “Ka Choosers” and “Ka Non-Choosers”?
2. Are there differences in the way Ka Choosers and Non-Choosers perceive the small car market? What are
the explanations for the differences?
3. Are there distinct attitudinal segments? If yes, how well can they help separate out the choosers from the
non-choosers?
5. What type of segmentation scheme would you propose to help separate out the choosers from the non-
choosers?

ASSIGNED READING:

! Dolan, "Analyzing Consumer Perceptions," (HBS 9-599-110), pp. 1-8. Discusses methods for
analyzing how consumers see the market, including profile analysis and perceptual mapping
techniques.

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 MARKETING STRATEGY (PRODUCT AND PRICING)

WEEK 4: BRANDING AND MEASURING BRAND EQUITY

CASE: Intel Inside

The "Intel Inside" campaign has encountered resistance by IBM, Hewlett Packard and Compaq.
Management must re-evaluate if the original objectives of the campaign are still attainable.

STUDY QUESTIONS:

1. What are the pros and cons for subscribing to the campaign, from the OEM's point of view?
2. How has the campaign been doing up to the point of the case?
3. What is Intel trying to achieve here?
4. What really are the value and the role of Intel Inside?

ASSIGNED READING:

! Inside Intel", cover story, Business Week, 1 June 1992.

! Squeeze, gently” Intel and microchips, The Economist, Nov.30 - Dec. 6, 1996.
! Dolan, "Analyzing Consumer Preferences," (HBS 9-599-112), pp. 1-6. Discusses methods for
analyzing consumer preferences.

In this session we will also discuss the use of conjoint analysis to measure the value of the Intel brand name and
how such measurement can be used for decision-making in the competitive marketplace for semiconductor chips.

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WEEK 5: PRICING

CASE: Optical Distortion

Optical Distortion Inc. is a small new company with a patent for an innovative new product which is a
contact lens designed to impair the eyesight of chickens. The case deals with the problems faced by the
company and marketing strategy that the company needs to design to launch the product. One of the
main decisions that management needs to consider is the pricing policy for this product.

STUDY QUESTIONS:

1. What characteristics of the ODI lens make it appealing or unappealing to different types of chicken
farmers?
2. What geographic areas and market segments should ODI focus its efforts?
3. What pricing policy should ODI adopt?

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WEEK 6: BUSINESS TO BUSINESS PRICING

MID TERM EXAM (45 MINUTES)

PRICE NEGOTIATIONS IN BUSINESS TO BUSINESS RELATIONSHIPS

CASE: In class exercise with Goldstar-Fastchip case.

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WEEK 7: PRODUCT LINE AND BUNDLING STRATEGIES

In this session we will examine how market segmentation, product design and pricing are all inter-related
and understand how to develop integrated product line and bundling strategies.

CASE: Cambridge Software Corporation

Cambridge Software Corp. must decide whether or not to offer multiple versions of a new software
product. The firm has identified five market segments for the software and is deciding which, if any, of
three product versions (a high end "industrial" version, a mid-range "commercial" version, and a low-end
"student" version) to offer. The decision depends on the size of the different market segments, the
customers' willingness-to-pay, and the costs of developing and producing each of the three versions.

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 MARKETING STRATEGY (DISTRIBUTION AND COMMUNICATION)

WEEK 8: GOING TO MARKET CHANNEL MANAGEMENT STRATEGY

Distribution Channels are the conduit for transfers between a firm and its consumers. Channel decisions
are among the most critical decisions facing management. Channels take a long time to build and cannot
be changed easily. The session focuses on channel design and management and the inter-relationships
between channel decisions and the other elements of the marketing mix.

CASE: The Challenges of Rural Markets in India (Insead case pre-print)

This case analyses two radically new distribution models to enter the vast rural sector of a fast growing
emerging economy. The case also highlights of technology and the Internet can be used to leverage rural
distribution.

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WEEK 9: DIRECT MARKETING STRATEGY

Advances in information technology, the growth of the Internet, and direct marketing technologies are
increasingly allowing firms to target at the level of the individual customer. This session is devoted to how
firms should leverage this ability to go direct to customers.

CASE: Calyx and Corolla

Calyx and Corolla is marketing fresh flowers through direct mail and through the internet. Using exclusive
contracts with flower growers and delivery via FedEx, they have cut out the "middle man," so that they
can supply flowers that are fresher than competition.

STUDY QUESTIONS:

1. What are the strengths and weakness of the Calyx and Corolla formula?
2. What steps should Ms. Owades and her associates take to fully develop the formula?
3. What is the value of a C&C customer using their current direct marketing approach?
4. Should C&C use a TV ad approach to acquire new customers?

ASSIGNED READINGS:
! Elie Ofek: “Customer Profitability and Lifetime Value” (HBS 9-503-019)

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WEEK 10: DATABASE MARKETING AND CUSTOMER RELATIONSHIP MANAGEMENT

CASE: Harrah Entertainment Inc.

Calyx and Corolla is marketing fresh flowers through direct mail and through the internet. Using exclusive
contracts with flower growers and delivery via FedEx, they have cut out the "middle man," so that they
can supply flowers that are fresher than competition.

ASSIGNED READINGS:

! Reichheld, Frederick F., and W. Early Sasser, Jr. "Zero Defections: Quality Comes to Services." Harvard
Business Review, September-October, 1990, 105-111.
! Gupta, Sunil, and Donald R. Lehmann. "Customers As Assets." Journal of Interactive Marketing 17, no. 1
(2003): 9-24.

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WEEK 11: COMMUNICATION AND ADVERTISING

The first part of the class will provide an overview of the marketing communication mix. We present a
framework for managing advertising: setting objectives, budgeting, message strategy, media planning, and
measurement. The second half of the class will deal with non-traditional marketing communications and
the development of an integrated marketing communication (IMC) concept.

CASE: Launching the BMW Z3 Roadster (HBS 9-597-002)

In January 1996, executives at BMW of North America were in a position to review their innovative and
non-traditional promotional campaign for the Z3 Roadster.

STUDY QUESTIONS:

1. Evaluate the success of BMW’s promotional campaign for the Z3 roadster? Was it a successful
implementation of the integrated marketing communication (IMC) concept?
2. What was the role of “non-traditional” media in the launch of the Z3 Roadster? Which elements of the
campaign were most important?

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 INTEGRATING THE MARKETING-MIX AND COURSE SUMMARY

WEEK 12: COURSE SUMMARY INTEGRATING THE MARKETING-MIX

CASE: McDowell’s Vintage

McDowell’s the largest manufacturer of alcoholic beverages in India is planning to launch an alternative to
Scotch whisky in India. One of the main problems facing the company in developing the launch strategy
is the positioning of this new product. The case will highlight some of the unique marketing strategy
issues

WRAP UP AND TAKEAWAYS

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WEEK 13: PROJECT PRESENTATIONS

WEEK 14: FINAL EXAM

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