Marketing Analytics

Course Marketing Analytics; Course contents © Stephan Sorger

UC Berkeley Extension EDP 308445; Fall 2010

Instructor Stephan Sorger

Phone: 650.455.4411
email: stephan@stephansorger.com
www.stephansorger.com

Meetings Sep. 18, 2010 – Oct. 16, 2010; Saturdays, 9AM – 4PM
Some class meeting dates subject to change
San Francisco Art and Design Center, 95 Third Street

Course Description
This course introduces the relatively new concept of marketing analytics, which applies
quantitative methods to improve marketing decisions in positioning, segmentation, advertising,
and other areas. Participants learn how to apply quantitative methods to allocate scarce
marketing resources toward efforts that will maximize results, vital in a world where senior
management holds marketing accountable for their effectiveness. The course uses readings, case
studies, and computer spreadsheet exercises to give marketers the tools they need to do more
with less.

Course Goals and Learning Objectives

On successful completion, participants will:
• Understand the benefits and objectives of marketing analytics
• Learn how to apply the techniques to improve marketing decisions in key areas
• Understand best practices through case studies
• Learn by doing through in-class exercises using computer software spreadsheet models

Intended Audience
This course is intended for students working at organizations which need to quantitatively show
the impact of their marketing efforts. Many companies report a trend toward “marketing
accountability”, where senior management demands to see how effectively their marketing dollars
are spent.

Prerequisites
• Essentials of Marketing or equivalent
• Computer spreadsheet expertise, e.g., Microsoft Excel

Instructional Methodology
• Lectures on vital areas of marketing analytics
• Case studies of analytics models applied toward practical problems
• Videos highlighting areas of marketing analytics
• Exams to test marketing analytics concepts and terminology
• Analytics project to exercise topics taught in course

Textbooks
Required:
• Course Reader: Stephan Sorger, “Marketing Analytics.” See www.stephansorger.com
• Textbook: Lilien and Rangaswamy, “Marketing Engineering”, Trafford Publishing, 2004, 2nd
edition, ISBN # 1412022525

© 2010 by Stephan Sorger www.stephansorger.com 1

Grading and Course Components
Grading is calculated from the components shown below, using standard grading cutoff points:
100 – 94 = A, 93 – 90 = A-, 89 – 87 = B+, 86 – 84 = B, 83 – 80 = B-, 79 – 77 = C+, etc.

Percent
Project 40%
Midterm Exam: 30%
Final Exam: 30%
Total 100%

Project
Students apply what they learn in class by forming teams and completing an analytics project.
The project consists of an original spreadsheet model, which addresses a specific marketing
problem at an organization. Students must create their own original model and not re-purpose or
modify an existing ME>XL model. At the final session of class, teams shall present their findings
in a 30 minute PowerPoint (ppt) presentation (or 20 minutes, if 4 or more groups present). Each
person will receive their overall team’s grade, which is calculated according to the attached
“Project Grading Sheet”.

Project Deliverables
- Hardcopy of PowerPoint presentation, printed 2 slides per page (for instructor to keep)
- See example and Project Grading Sheet for required structure and contents
- Softcopy of PowerPoint presentation and Excel-based model (for instructor to keep)
- CD-ROM or USB flash drive

Project Ideas (not an exhaustive list)

- Positioning graph tool
- Tool to suggest menu prices for new restaurant
- Customer database scoring (ranking the likelihood of future purchases by customers)
- Bass forecasting model
- Survey to determine price of Pro version of Freemium software
- Segmentation tool
- Conjoint analysis for new product

In-Class Exercises
Each week, students will come to class prepared to do that week’s in-class exercise, which is
based on a business case, and incorporates hands-on work with an actual computer model.
Often, a video will be shown that highlights aspects of the case or a similar situation.
Students then meet in class in their teams to complete the in-class exercise. The exercises
reinforce the topics taught during the lecture as applied in a “real-world” environment.

Midterm Exam
The midterm is closed-book, and tests the following chapters in the Reader: 1, 2, 3, 4, 5

Final Exam
The final exam is closed-book, and tests the following chapters in the Reader: 6, 7, 8, 9, 10

Class Participation: Lectures & Weekly Cases

Class participation is encouraged. Students must not miss more than 2 class sessions. Students
missing classes shall complete that week’s in-class exercise outside of class to make up the
session. Students expecting to miss an exam must make alternate exam arrangements before the
scheduled exam date.

© 2010 by Stephan Sorger www.stephansorger.com 2

Schedule

September 18, 2010: Meeting 1: Executive Analytics

• Syllabus
• Introduction: The Structured Approach to Marketing Analytics (Chapter 1, Chapter 2)
• Analytics Project: DIY Modeling, Sample Project
• Team Approach: Team Tips; Presentation Pointers; Video: Pimp My PowerPoint (2:58)
• Lunch
• Executive analytics: Market assessment, Competitive analysis, Objectives & strategy (Ch. 6)
• Video: Malcolm Gladwell at TED: Analytics for Insight into Spaghetti Sauce (17:33)
• Case: BCG Matrix: Honda vs. Toyota
• Case: ME>XL Software Installation

September 25, 2010: Meeting 2: Operations Analytics: Part I

• Project Description: DUE: Title of Project, Names of Team Members, Description of Model
• Operations analytics: Customer analysis, segmentation, targeting (Ch. 3)
• Video: Market Analysis (3:14)
• Video: Market Segmentation Examples (2:03)
• Case: Segmentation: ABB Electric
• Lunch
• Operations analytics: Positioning (Ch. 4)
• Video: Positioning in the Political Arena (3:07)
• Case: Smackdown! Positioning the Infiniti G20

October 2, 2010: Meeting 3: Operations Analytics Part II; Tactical Analytics Part I
• Operations analytics: Forecasting (Ch. 5)
• Video: Bass Forecasting: Backlash of Mass Market on Early Adopters (4:31)
• Case: Forecasting using Regression and Bass: Zenith HDTV
• Lunch
• Tactical analytics: Products and brands: Conjoint analysis (Ch. 7)
• Video: Conjoint Analysis in 10 Minutes (9:33)
• Midterm Exam (Ch. 1 – 5); (students may leave class once they have finished exam)

October 9, 2010: Meeting 4: Tactical Analytics Part II

• Tactical analytics: Price, Distribution (Ch. 10)
• Video: Revenue Management at American Airlines (35:00)
• Case: Revenue Management: American Airlines
• Lunch
• Tactical analytics: Promotion, Sales (Ch. 8, Ch. 9)
• Video: Kia Soul Advertising Campaign (14:51)
• Case: Advertising Budgeting: Blue Mountain Coffee

October 16, 2010: Meeting 5: Tactical Analytics Part III

• Tactical analytics: Management
• Metrics overview
• Measurement overview
• DUE: Present group projects
• Lunch
• Final Examination (Ch. 6 – 10); (students may leave class once they have finished exam)

© 2010 by Stephan Sorger www.stephansorger.com 3

 Marketing Analytics
Project Grading Sheet
Course contents © Stephan Sorger
Date: ___________
Topic: ___________
Members: __________________________________________________________________

No. Grading Criterion Score: 1-5 Total

Deliverables
1. Time: 30 (20) min. max; Start: ________; End: ________; ____min 1 2 3 4 5 ____
2. Excel spreadsheet-based model on CD/ USB Flash Drive 123 4 5 ____
3. Electronic copy of presentation on CD/ USB Flash Drive 123 4 5 ____
4. Hardcopy of presentation, printed two slides per page 123 4 5 ____

Ability to Solve Intended Problem

5. Problem description: Described clearly & completely 12345 ____
Comments: ______________________________________________
6. Research methodology: Data gathered: good source, right data 12345 ____
Comments: ______________________________________________
7. Research analysis: Structuring of results, interpretation of data 12345 ____
Comments: ______________________________________________
8. Model development process: Selected appropriate model structure 12345 ____
Comments: ______________________________________________
9. Calibration: Model calibrated against actual market behavior 12345 ____
Comments: ______________________________________________
10. Results: Output of model appear to be roughly consistent with input 12345 ____
Comments: ______________________________________________
11. Demo: Demonstration of model in class goes smoothly, no problems 12345 ____
Comments: ______________________________________________
12. Interpretation: Presentation interprets findings for class 12345 ____
Comments: ______________________________________________

Ease of Use of Model

13. User guide: Presentation acts as user’s guide to model 12345 ____
Comments: ______________________________________________
14. Use case: Presentation includes example application of model 12345 ____
Comments: ______________________________________________
15. Procedure: Spreadsheet describes how to use model 12345 ____
Comments: ______________________________________________
16. Inputs: Spreadsheet indicates user input area(s) 12345 ____
Comments: ______________________________________________
17. Outputs: Spreadsheet indicates model output area(s) 12345 ____
Comments: ______________________________________________
18. Calibration: Spreadsheet indicates calibration procedure, if any 12345 ____
Comments: ______________________________________________
19. Graphics: Spreadsheet uses graphs to illustrate results 12345 ____
Comments: ______________________________________________
20. Adaptability: Spreadsheet can be easily modified for similar uses 12345 ____
Comments: ______________________________________________

Total
Total Score: 20 criteria x 5 pts each = 100 points max 100 max ____
Comments: ______________________________________________

© 2010 by Stephan Sorger www.stephansorger.com 4