BA500 Marketing

FALL 2012
BA 500 MARKETING STRATEGY CORE
University of Washington, Foster School of Business

BA 500 (Marketing Strategy), Fall 2012
Professor Shailendra Pratap Jain, Office 469 PACCAR;
Phone 1-2946; [email protected]
Office Hours: Wednesday, 2 pm 4 pm
COURSE SYLLABUS
OPTIONAL TEXT
Kotler & Keller, A Framework for Marketing Management, Pearson Prentice Hall, 5th
edition, 2012 (K & K). All chapters are in K & K. Except for those noted in the pages that
follow, all cases and readings are in the Course Pack available from University Readers.
The optional text book (referred to as K & K; also on reserve in the Foster Library) is a
comprehensive resource for material relating to marketing theory and practice. It is an
"encyclopedic" treatment of marketing and covers almost all of the issues we will
discuss throughout the course.
PERFORMANCE EVALUATION
Grades will be based on class contribution, several deliverables, and a final exam. The
breakdown of the grade for the Marketing Strategy core is as follows:
1.
2.
3.
Class Contribution
15%
Deliverables
55%
2 Mini Deliverables
15%
1 page case analysis (see bottom of p4) 7.5%
Advertising (see bottom of p4, and p17) 7.5%
2 MEMO Deliverables
40%
Clean Edge Razor Memo
20%
Deere & Company Memo
20%
[There are 9 cases to be discussed in class. Of these 9 cases, 2 are to be submitted
as Memo Deliverables as mentioned above.]
Final Exam (open notes, open book)
30%
CODE OF CONDUCT AND ETHICS

Please familiarize yourself THOROUGHLY with the Foster MBA Honor Code. In
keeping with this code, some key aspects are repeated here. Each student is required
to write and sign a deliverable affirmation for every assignment turned in to the
instructor. This affirmation should state the following: I have neither given nor
received unauthorized aid on this deliverable. In marketing, each of the deliverables
is team-based, therefore every member of the team must sign this statement. If this
signed affirmation is missing, your deliverable will not be graded. Also, please do
not use ANY past deliverable of any students to guide your work. Doing so will
constitute a violation of the Foster MBA Honor Code.
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Shailendra Pratap Jain
FALL 2012
Course Objectives
The ultimate goal of most (but not all) businesses is to make profits. If businesses make
sustained losses over a period of time, they cannot survive (without intervention). Profits
fundamentally depend on a firms ability to persuade consumers to buy its products/services,
contributing to its revenue streams, while keeping costs to a minimum. A key purpose of marketing is
to enable businesses to successfully interface with consumers. In this sense, business success is heavily
dependent on the marketing function. Over the years, sufficient research has been documented that has
enabled us to accord a structure and scientific discipline to the marketing common sense. Today, we
understand that marketing involves identification and satisfaction of consumer needs through a process
of exchange that creates value for the marketer as well as the consumer value that is in some
important way superior to that delivered by competition. Identification of a consumer need is typically
accomplished by research and satisfaction is achieved by offering the consumer the right product at the
right price and at the right time promoted using the right strategies and made available through the
right outlets - in short, using the right marketing mix.
The Marketing Strategy component of the core will introduce you to a marketing strategy
framework and related concepts that are central to understanding and analyzing a marketing situation.
This component will also sensitize you to the activities which marketers undertake in trying to achieve
success for their products/services/corporations. Finally, it will provide you with practice in solving
marketing problems through frequent use of case studies. There are several readings and cases which
form an integral part of the material for the course, and you will find that reading them analytically (as
against superficially) will give you a significant advantage in your respective careers, regardless of
which functional discipline you finally opt for.
Course Design
The Marketing Strategy course comprises of 20 sessions, each session running 110 minutes
(please refer to pages 7 through 25 of this handout for details of each session). Conceptually, these 20
sessions have been divided into three phases.
Phase I.
The first phase, comprising of the first 8 sessions, will focus on the concepts,
tools, and analyses that underlie marketing decisions. Topics will include, among others, consumer
analysis, competitor analysis, market segmentation and positioning, break-even analysis, designing and
conducting marketing research, and issues associated with coming up with a marketing strategy.
Concepts and techniques from core disciplines like psychology, sociology, and economics will be used
frequently throughout the course and particularly during the first phase.
Phase II.
The second phase, comprising of the next 8 sessions, focuses on using the
concepts and tools learnt in the first phase to make effective marketing decisions pertaining to product
design and development, pricing, promotion, and distribution. In this phase, you will see the utilization
of what you learnt in the first phase and will also gain exposure to social media and implementation
issues.
Phase III.
The last 5 sessions will complete the core. During these sessions, we will focus
on special topics which are related to each of the topics covered in the preceding part of the course.
Included in these are issues relating to brands, global issues in marketing, and ethics. These sessions
will also be used for topics that students want re-discussed or explained in detail.
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Teaching Style
In terms of teaching style, the course will rely HEAVILY on your contribution to the class
proceedings (more on this issue on the next page). 9 of the 20 sessions have cases which will form
spokes for further discussion. The other 11 sessions include lectures, presentations, reviews, and
discussions. Thus, a conscious attempt has been made to balance workload using a mix of cases and
other forms of pedagogy without compromising on the learning objectives.
Performance Evaluation
Class Contribution (15%)
A large part of the session will be devoted to discussing the case, if assigned for the day.
References to the text and other readings will be in light of the case and rarely for their own sake. It
is imperative therefore that you do the assigned reading for the session in advance. The following steps
are recommended in terms of preparing for a case for a given class session:
1.
First, give the case a cursory reading (45-60 minutes).
2.
Next, go through the readings and chapters assigned/recommended for the day. Think of your
own experiences as a consumer and/or a marketer that may relate to the concepts discussed in
the text and the additional readings. This will help you visualize the material in the text and
live it, in some sense.
3.
Now read the case carefully and analytically (more on this later).
4.
Once you've understood the main issues, go back to the key concepts of the days readings and
chapters and apply them to the case. Try and make notes as you go along to enhance recall if
and when you are called upon in the class to discuss any issues in the text or in the case.
5.
If the case asks you to make a decision, think through the issues being faced by the case
protagonist and based on a careful analysis, suggest a recommended course of action.
The case situations that will be discussed have been developed after careful research on actual
situations in real companies. The case writer has attempted to describe enough of the background and
details of the situation in order to provide an adequate basis for class discussion. Each case is bound to
lack some facts that, ideally, you would like to have to make a possibly better decision. You may be
aware that in real life, management decisions frequently must be made in the absence of information.
A key executive skill is the ability to make effective decisions under uncertainty. A case discussion is
preparation for just such situations.
Thorough preparation on the part of all class participants is essential to having a fruitful class
discussion. Merely reading the case will not be enough. After an initial reading to get the broad pattern,
go back and study the case thoroughly, developing your understanding of the problems confronting the
individuals in the case in light of the material covered till that point in time, the assigned text, and
other readings on that particular day. Make any notes you find helpful and mark up the case to
facilitate structuring your understanding of the situation. Identify the major problems and key
relationships. Conceive alternative solutions to the problem and identify the advantages and
disadvantages of each. Rarely, if ever, does a case contain an ideal solution to the problem highlighted
in it. So do not expect a perfect all-encompassing solution at the end of the case discussion. In most
cases, no such answer will emerge because each management problem often has multiple alternative
solutions, each involving different degrees of costs and benefits. The major benefit of the case
discussion is that it provides the participants with a perspective and a repertoire of ideas which non3
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participants will lack. It is your responsibility to prepare a complete analysis of every case, ranging
from identification of the problem, through an analysis of the problem, to the generation of alternative
solutions and final recommendation. Be prepared to defend your stand and recommendation in the
class if called upon in class to discuss these.
The purpose of class participation is for you to contribute to and demonstrate learning through
the reading material assigned for the day and the case discussion. Do not worry if you have a language
or diction problem. So long as you can articulate a concept, everything else is secondary. Do not feel
that just because you may not speak English as fluently as you would like to or as some of your peers
do, you cannot or should not participate in the class. Class contribution is particularly critical during
case discussions.
Attendance is strongly advised. Class contribution is one of the components of the grade, so if
you are unable to attend one or more sessions, your performance on this component of evaluation will
suffer. In addition, learning in a course like Marketing Strategy and related fields is perhaps enhanced
more through discussion and debate rather than a one-way flow of communication. If you are planning
to miss a session, please inform the professor at least two sessions in advance.
Mini Deliverables (15%)
Throughout the quarter, each team will be required to submit 2 (two) short deliverables, with
each deliverable worth 5% of the overall marketing grade. These deliverables will be pertinent to the
topic for a specific day. The 2 mini deliverables will be as follows:
1. Advertising Mini Deliverable (please see page # 17 for more details);
2. Case Mini Deliverable: Each team will choose any one case (other than Aqualisa, Clean Edge,
and Deere & Co.) and submit an analysis of the case using the guide questions given in the
handout. This analysis should not exceed 1 single spaced typed page and no exhibits are
permitted and must be submitted immediately before the class during which this case will be
discussed.
Memo Deliverables (40%)
In addition to the mini deliverables, there will 2 (two) MEMO deliverables for Marketing
Strategy, each of them to be submitted as a team assignment. Both of these involve detailed and
thorough case analyses and memo writing. Submit your case analysis using the note titled
RECOMMENDATION MEMOS towards the end of this handout. The analyses will be graded largely
on how well you have addressed the issues in the case and the logic you have followed in arriving at
the recommendations. Suggested questions for the case analyses have been provided in this handout.
Prior to each memo submission date, a review session will be held to help you in your submission.
Final Examination (30%)
The final examination will be based on the marketing material covered throughout the quarter.
It will be integrative and a thinking type exam rather than a memory recall type. A special review
session is scheduled to guide you through the preparation for the exam.
Meeting the professor
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Please feel free to schedule an appointment with the professor during and beyond his office
hours. You are encouraged to discuss any aspects of the course with him outside of the class as well.
Additional Sources of Information
The following is a partial list of possible sources of further information to enhance your
understanding of and develop greater interest in the field. Items 7 through 12 are more theoretical
and may not be easy reading for the uninitiated. However, if you are interested in theory building and
technical aspects of Marketing Modeling and related topics, you may find these useful.
1.
Adweek
2.
Brandweek
3.
Business Week
4.
The Economist
5.
Fortune International
6.
Harvard Business Review
7.
Journal of Advertising Research
8.
Journal of Consumer Psychology
9.
Journal of Consumer Research
10.
Journal of Marketing
11.
Journal of Marketing Research
12.
Marketing Science
13.
Sloan Management Review
14.
The Wall Street Journal (in particular, the section dealing with Marketing)
_______________________________________________________________________________
THE NEXT SECTION OF THIS HANDOUT CONTAINS:
I.
AN OVERVIEW OF SESSION TOPICS AND IMPORTANT DATES (PAGE # 6);
II.
INDIVIDUAL SESSION DESCRIPTIONS AND GUIDELINES FOR PREPARING
FOR EACH SESSION (PAGES # 7 TO 25);
III.
THE RECOMMENDATION MEMOS FORMAT DESCRIPTION (PAGES # 26
TO # 32) THAT YOU WILL NEED FOR YOUR TWO MEMO DELIVERABLES.
PLEASE ASCERTAIN THAT YOU ARE NOT MISSING A PAGE. IF YOU ARE, BRING IT
TO THE PROFESSORS ATTENTION IMMEDIATELY.
_______________________________________________________________________________
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Session #
OVERVIEW OF SESSION TOPICS AND IMPORTANT DATES

Topic
Dates
1.
Introduction & Course Overview [Aqualisa Case]
09/24/12
2.
Consumer Analysis [Consumer Behavior Exercise]
09/27/12
3.
Competitor Analysis
10/01/12
4.
Market Segmentation, Targeting, and Positioning I
10/03/11
5.
Market Research [Fiji Water]
10/08/12
6.
Quantitative Issues in Marketing and Review
10/10/12
7.
Market Segmentation, Targeting, and Positioning II

[MEMO Deliverable 1: Clean Edge Razor Memo]
10/17/12
8.
Marketing Strategy
10/18/12
9.
Product Strategy I [EMI case]
10/22/12
10.
Product Strategy II
10/24/12
11.
Advertising and Promotions I
10/29/12
12.
Advertising and Promotions II [Online Big Skinny case]
10/31/12
13.
Distribution Strategy [Bank of America case]
11/05/12
14.
Pricing Strategy I
11/07/12
15.
Pricing Strategy II & Integration

[MEMO Deliverable 2: Deere & Co.]
11/14/12
16.
Implementation [Cialis case]
11/19/12
17.
Brands
11/21/12
18.
International Marketing Issues [Citibank case]
11/26/12
19.
Marketing Ethics
11/28/12
20.
Summary
12/03/12
FINAL EXAM
12/10/12
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_______________________________________________________________________________
Session#
Session Topic and Assignment
Date
_______________________________________________________________________________
1.
Introduction and Course Overview
09/24/12
Case
Aqualisa Quartz: Simply a Better Shower.
Read
High Performance Marketing: An Interview with Phil Knight.
Optional
Chapters 1, 2 in K & K.
Objectives
The ultimate goal of business is to make profits/create value. Fundamentally, how
profitable/'value-creating' a firm is depends on its ability to persuade consumers to buy its
products/services, contributing to its revenue streams. Marketing's purpose is to enable
businesses to successfully interface with and persuade consumers. In this sense, business
success is heavily dependent on the marketing function. Over the years, sufficient research
has been documented that has enabled us to give a structure and scientific discipline to the
"marketing common sense." Today, we understand that marketing involves identification
and satisfaction of consumer needs through a process of exchange that creates value for the
marketer as well as the consumer. Identification of a consumer need is typically
accomplished by research; satisfaction is achieved by offering consumers the right product at
the right price and at the right time promoted using the right strategies and made available
through the right outlets - in short, using the right marketing mix.
In this session, we will use the Aqualisa Quartz case as the springboard to set up the
framework for the rest of the Marketing Strategy core. In addition, we will try and develop
an initial understanding of the role that marketing plays in business success.
Preparation Guidelines
Consider the following questions as you prepare for the class:
1.
What is the Quartz Value proposition to the consumers? To plumbers?
2.
Why is the Quartz not selling?
3.
Aqualisa spent 3 yrs and Euro 5.8 million developing Quartz. Was the product worth the
investment? Is Quartz a niche or a mainstream product?
4.
Aqualisa currently has 3 brands: Aqualisa, Gainsborough, and Showermax. What is the
rationale behind this multiple brand strategy? Does it make sense?
5.
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? Should he lower the price of Quartz? Or should he do something
different altogether?
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_______________________________________________________________________________
Session#
Date
_______________________________________________________________________________
2.
Consumer Analysis
09/27/12
Read
:
Should you listen to the customer?
Deliverable
Consumer Behavior Exercise (Note in the Course Pack).
Optional
Objectives
An overwhelming majority of products and services that are launched fail. One reason for
their failure is that the marketing of these products/services is based on a superficial
understanding of the customer. Thus, when designing a marketing strategy or understanding
a business opportunity, it is crucial to analyze your consumers. Answering questions like
"Who are (or could be) the customers? What needs do they seek to fulfill? Who/what is
currently fulfilling their needs?" gives information on critical issues such as the type and
degree of need, size of the market, potential margin generated, and potential competitive
issues. The purpose of this session is to develop an appreciation and understanding of the
process of uncovering and analyzing customer needs.
While preparing for this session, think of your own experiences as a consumer in specific
buying and consumption situations based on the readings for this session. Also, reflect on the
consumer interview your team conducted (see below for a description). Come prepared to
discuss your experience. Part of this session will be devoted to sharing your experiences and
interview findings, and formulating a structure around these shared experiences.
1.
What types of consumption situations do consumers face on a day-to-day basis?
2.
How will you characterize the pre-purchase search processes underlying these
different consumption situations?
3.
How is the choice made for a) a first time purchase, b) repeat purchase?
4.
What are consumer-level post-purchase considerations that marketers must be
concerned with?
For this session, your team is required to interview a customer using the guidelines included in the
Course Pack. The purpose of this interview is to bring you face to face with a consumer and gain
a deeper understanding of consumer psychology, motivations, and behavior. Much of the class will
be spent on discussing your experiences/observations/findings in this customer interview. Note that
this NOT a formal, graded deliverable. However, going through the process of understanding
consumers by speaking with them face to face is critical to making good marketing decisions.
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_______________________________________________________________________________
Session#
Date
_______________________________________________________________________________
3.
Competitor Analysis
10/01/12
Read
Competitor Analysis: Anticipating Competitive Actions.
Optional
Chapter 9 in K & K.
Objectives
In this session, we will examine demand as well as supply side competitive strategies
through 4 examples of how competition impacts an industry as well as the actions of specific
players within it. Many important lessons can be learned about competitor analysis from
these historical chronicles of the onset of local and global competition as we know of it
today.
We will also take away a basic model of competitor analysis.
Choose an industry of interest to you. Conduct some research and examine the competition
within it. Analyze strengths and weaknesses of some of its key competitors.
Liberally use the material covered in the other parts of the core to bring additional insight
into the discussion pertaining to this topic.
_______________________________________________________________________________
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_______________________________________________________________________________
Session#
Date
_______________________________________________________________________________
4.
Market Segmentation, Targeting, and Positioning I
10/03/12
Read
Market Segmentation, Target Market Selection and Product

Positioning. Harvard Business School, 2006.
Optional
Objectives
This class deals with two central concepts in business planning segmentation and
positioning. We will arrive at an understanding and appreciation of these concepts through
the readings assigned for this session and in-class discussion.
While preparing for this session, think of a brand that you consume regularly. Then think of
reasons why you consume it. Lastly, think of ALL POSSIBLE REASONS that led you to
believe these to be the reasons for your consumption.
Next, think of a brand that you DO NOT consume and that belongs to a different category
from the first. Then think of reasons why you do not consume it. Lastly, think how you came
to believe these reasons as the basis for not consuming this brand.
Based on the readings for the day and your above analysis of your brand choices, come
prepared to discuss your thoughts.
_______________________________________________________________________________
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_______________________________________________________________________________
Session#
Date
_______________________________________________________________________________
5.
Market Research
10/08/12
Case
Fiji Water
Read
Building a Marketing Plan: Marketing Research.

The Science of Desire, Business Week, 2006
Optional
Chapter 3 in K & K.
Objectives
This session will be devoted to understand the purpose of market research, some types of
market research, an 'ideal' research process, pitfalls of various research designs, and to gain
exposure to an actual research situation facing a bottled water company.
This case illustrates important principles of Marketing Research and Marketing Math. It is a
two-stage case. First, your team must decide which research to purchase within your $9,500
budget. (Note: You do not need to use the entire budget. Your task as consultants is to use
the appropriate amount of research without exceeding the budget.) You then purchase the
research (a set of reports) from me and use the results to make a go/no go recommendation
to Brandon Miller (protagonist in the case). Once you have decided which reports you
need, please e-mail the TA, who will then e-mail the reports to you. Please send your email (one per team) before 4 pm on Friday, October 5, 2012.
The following questions will form the basis of class discussion.
What information would you ideally want to analyze to make the go/no go decision?
How did you decide which information to purchase?
Given the information at hand, what method of data analysis did you use?
Are there any limitations to the data as it applies to helping Brandon decide?
What are the assumptions behind your analysis? How sensitive is your recommendation to
those assumptions?
Are there any qualitative factors that should affect your go/no go decision?
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_______________________________________________________________________________
Session#
Date
_______________________________________________________________________________
6.
Quantitative Issues in Marketing & Review
10/10/12
Read
Marketing Analysis Toolkit: Breakeven Analysis, Harvard

Business School, 2010.
Marketing Analysis Toolkit: Market Size and Market Share
analysis, Harvard Business School, 2010.
Case
Clean Edge Razor: Splitting Hairs in Product Positioning.
Objectives
This class deals with the fundamentals of marketing math. Basic but critical issues like
margin and contribution calculations, market share assessment, and breakeven analysis will
be discussed.
In addition, we will spend some time discussing the memo deliverable due on Oct 17, 2012,
pertaining to the Clean Edge Razor case.
While preparing for this session, go through the readings thoughtfully and ascertain that you
understand the mechanics underlying the calculations.
Also, read the case and come to the class with questions geared towards preparing you better
for the memo deliverable due next class.
_______________________________________________________________________________
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_______________________________________________________________________________
Session#
Date
_______________________________________________________________________________
7.
Market Segmentation, Targeting, and Positioning II (MEMO 1) 10/17/12
Submit a hard copy of your assignment to the professor right before the class begins. Please
submit ONE SINGLE DOCUMENT containing the memo and all attachments/exhibits.
Case
Clean Edge Razor: Splitting Hairs in Product Positioning.
Objectives
This session firms up our understanding of segmentation and positioning through the case
discussion and the deliverable. We will also get an opportunity to apply some critical
quantitative analytic techniques to a marketing situation.
1.
What changes are occurring in the nondisposable razor category? Assess Paramounts
competitive position. What are the current strategic challenges for Paramounts current
products as well as for Clean Edge?
2.
How is the nondispoable razor market segmented? Examine consumer behavior for
nondisposable razors.
3.
What are the arguments for launching Clean Edge as a) a niche product, b) as a
mainstream brand, and c) as a product based on another strategy? Which would you
recommend? What are the strategic implications of your recommendation?
4.
Be prepared to support your stand with qualitative as well as quantitative reasoning and
arguments. Clearly articulate any assumptions that you may have made in your analysis.
5.
Suggest a marketing program (at a minimum, the 4Ps) along with a Pro Forma for your
chosen strategy and be prepared to defend it, from a strategic perspective as well as from
an implementation viewpoint.
This is the first of two MEMO deliverables. Submit a 1 to 1 page memo along with no more
than 5 attachments/exhibits that support your recommendation. One of these attachments should be
the Options Grid. Please state your assumptions clearly. You can choose to have a separate
attachment exclusively for stating your assumptions or you can state your assumptions as you go
along (e.g., as footnotes to an exhibit). The memo and the Options Grid formats have been given to
you as attachments to this handout towards the end. Please follow the format guidelines closely as
there are points set aside for formatting. This is a VERY popular case and is used at several bschools. Do not rely on/use deliverables of other teams at Foster or outside under any
circumstances.
_______________________________________________________________________________
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_______________________________________________________________________________
Session#
Date
_______________________________________________________________________________
8.
Marketing Strategy
10/18/12
Read
Ken Chenault Reshuffles His Cards.

Note on Portfolio Techniques for Corporate Strategic Planning.
Optional
Chapter 2 in K & K.
Objectives
This session will serve to link up the material covered in the Marketing Strategy Core so far
and introduce some higher level integrative strategic issues.
1. Based on the Fortune article and the other readings, dissect Ken Chenaults strategy in
threadbare detail. What components are related to marketing? What components are related
to other management functions?
2. Identify 3-5 key aspects of his strategy that you think drove the success of his strategy.
3. Explain why you feel these were the keys to his accomplishments.
Based on the Portfolio Techniques article, come prepared to discuss different portfolio
techniques and how they help/hamper the strategic decision making process.
_______________________________________________________________________________
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_______________________________________________________________________________
Session #
Date
_______________________________________________________________________________
9.
Product Strategy I
10/22/12
Case
EMI and the CT Scanner (B).
Read
Break Free from the Product Life Cycle.
Optional
Objectives
In this session, we will discuss the classic case EMI and the CT Scanner. This case has been
discussed by thousands of MBA students all over the world to grapple with the issue: how
can a firm that is spectacularly successful become paralyzed in such a short period of time?
An examination of this question will lead to a discussion of the theory of product life cycle
and how it helps predict market evolution and enables marketers to be prepared for the
future that is usually riddled with uncertainty.
1.
2.
3.
4.
Describe the situation EMI faces in the case.

How did EMI end up being in this situation? Discuss all factors that could be
responsible.
What could EMI have done differently to be in a better position?
What should EMI do now and why?
_______________________________________________________________________________
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_______________________________________________________________________________
Session#
Date
_______________________________________________________________________________
10.
Product Strategy II
10/24/12
Read
Nintendo Readies Successor for Wii, Wall Street Journal, 4/26/2011.

P&G Reinvents Laundry with $150 million Tide Pods Launch,
Advertising Age, April 26, 2011.
Optional
Chapters 10, 12, 13 in K & K.
Objectives
In this session, we will discuss some fundamental issues relating to product strategy. In
particular, we will discuss a model of consumer purchase decision making and will also
discuss the pros and cons of brand and line extensions.
1. What is the fundamental purpose why consumers buy products/services?
2. Think of a model of consumer purchase decision making.
3. Are line and brand extensions good? Or are they bad? Why? Or why not?
_______________________________________________________________________________
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_______________________________________________________________________________
Session #
Date
_______________________________________________________________________________
11.
Advertising and Promotions Offline (Mini Deliverable)
10/29/12
Read
Consumers Advertising Response Processes.
Optional
Objectives
This session will focus on considerations involved in advertising strategy. In particular, a
framework to analyze/critique advertising will be discussed.
Pick an ad in print or on TV that you believe was particularly 'good' or effective. BASED
ON THE READINGS FOR THE DAY AND ALL THE MATERIAL COVERED IN THE
COURSE PERTAINING TO MARKET, CONSUMER, COMPETITIVE, COMPANY
ANALYSES, AND 4Ps, come prepared to discuss the ad in class and explain why you found
the ad appealing/effective.
This is the 2nd of the two mini deliverables. Bring your deliverable in the form of a 1 1
page note explaining why you felt the ad was effective. Try and attach the ad if possible
(though this is not required). Thoughtful structuring of your explanation is likely to lead to a
higher score on this deliverable.
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_______________________________________________________________________________
Session#
Date
_______________________________________________________________________________
12.
Advertising & Promotions Online
10/31/12
Case
Online Marketing at Big Skinny
Read
The Social Media Road Map (article from Fast Company, September
2012)
Optional
Objectives
In this session, we will discuss online marketing, an area which is gaining ground at an
astounding pace in some parts of the world. We will see how offline compares with online
and the challenges marketers face in deciding to go online.
1. What should Kiril focus on next? What should be hos lowest priority? Why?
2. Evaluate Big Skinnys sponsored search strategy. Are there any search words for which you
would encourage Big Skinny to increase its bid? To lower its bid?
3. How effective is Big Skinny using social media to sell its wallets? Why?
4. Should Big Skinny expand its partnerships with online distribution?
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_______________________________________________________________________________
Session#
Date
_______________________________________________________________________________
13.
Distribution Strategy
11/05/12
Case
Bank of America: Mobile Banking
Read
Changing Channels: The Impact of the Internet on Distribution

Strategy.
Optional
Objectives
In this session, through the case Bank of America, we will deal with a situation that
marketers are facing routinely today the costs and benefits of going mobile. In doing this,
we will discuss the strategic role and functions that distribution channel performs and the
costs and benefits associated with performing them.
1. What benefits does mobile banking provide to consumers? Why havent more
consumers adopted mobile banking yet?
2. What is BofAs motivation to offer mobile banking to its customers? What are the
associated costs and risk to the bank?
3. What lessons can the bank learn from its online banking operations? What are the
costs and benefits of having customers migrate to online banking?
4. How is mobile technology likely to influence the banking industry in the future?
5. How should McDonald and Brown respond to the LOB managers request to include
more functions in the banks mobile app?
_______________________________________________________________________________
19
FALL 2012
_______________________________________________________________________________
Session#
Date
_______________________________________________________________________________
14.
Pricing Strategy I
11/07/12
Read
Changing the Formula Wall Street Journal, 2007
Optional
Objectives
In this session, we will discuss some high level issues pertaining to pricing strategy.
Consider some of your recent purchases. Analyze what factors guided your purchases. In
particular, how did you process the price information? What role did price play in your
purchase? How did you make tradeoffs between price and other features of the product or
the situation?
_______________________________________________________________________________
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FALL 2012
_______________________________________________________________________________
Session #
Date
_______________________________________________________________________________
15.
Pricing Strategy II & Integration (MEMO 2)
11/14/12
Submit a hard copy of your assignment to the professor right before the class begins. Please
submit ONE SINGLE DOCUMENT containing the memo and all attachments/exhibits.
Case
:
Deere & Company: Industrial Equipment Operations.
Read
Financial Analysis for Profit-Driven Pricing.

How to Fight a Price War.
Optional
Chapter 12 in K & K.
Objectives
The goal of this session is to examine an actual pricing situation that involves the application
of all the concepts discussed in the course so far (consumer analysis, competitive analysis,
company analysis, segmentation, positioning, product strategy, etc.). Also, we will discuss
how various ECONOMIC as well as PSYCHOLOGICAL considerations impact price of a
product upwards or downwards.
1.
What should be the price point at which the product should be launched by
Deere?
2.
What are the quantitative and qualitative arguments in support of your
recommendation? Examine your arguments from the customer's, the company's
the competition's, and the dealer's viewpoints.
3.
What changes in product/promotion/distribution, if any, do you recommend to support your
price?
4.
Come prepared to recommend a price point for the featured product in the case and to defend
your stand.
This is the second of two marketing deliverables. Submit a 1 to 1 page memo along with no more
than 5 attachments/exhibits that support your recommendation. One of these attachments should be
the Options Grid. Please state your assumptions clearly. You can choose to have a separate
attachment exclusively for stating your assumptions or you can state your assumptions as you go
along (e.g., as footnotes to an exhibit). The memo and the Options Grid formats have been given to
you as attachments to this handout towards the end. Please follow the format guidelines closely as
there are points set aside for formatting. This case has been used innumerable times at several bschools. Do not rely on/use deliverables of other teams at Foster or outside under any
circumstances.
21
FALL 2012
_______________________________________________________________________________
Session#
Date
_______________________________________________________________________________
16.
The Big Picture & Implementation
11/19/12
Case
Product Team Cialis: Getting Ready to Market (HBS case).
Read
Action Plans: The Architecture of Implementation.
Objectives
In this session, we will use a new case featuring a well-known category to see the interplay
of different elements of a marketing plan coming together. This case will serve to integrate
our thinking about components of a marketing decision.
1.
What are some ways to segment the patient market for ED? What segmentation
strategies may be better than others? Which would you target initially for Cialis?
2.
What is Viagras position in the market in 2002? How would you characterize the Viagra
brand?
3.
What in your opinion is the most effective way to position Cialis? Why?
4.
What marketing mix activities should accompany the launch of Cialis?
a. What would be the two most important messages to deliver to the physician? To the
patient? To partners?
b. What will be your media strategy and your relative media budget mix?
c. How would you price Cialis (assuming no health care coverage)?
d. What type of promotions will you use?
5.
What competitive response do you expect from Pfizer? From Bayer-GlaxoSmithKline?
How do you plan to deal with it?
_______________________________________________________________________________
22
FALL 2012
_______________________________________________________________________________
Session #
Date
_______________________________________________________________________________
17.
Brands
11/21/12
Optional
Chapter 8 in K & K.
Objectives
Brands are the engines that determine a companys fortunes. In this session we will bring
together many aspects of the content covered in the Marketing Strategy core so far and unify
them under a discussion of Brands, how they become strong/weak, and what are the
considerations that should go into branding.
Think of a strong brand. What in your mind makes it strong?
Think of a weak brand. What in your mind makes it weak?
In answering these questions, think about what constitutes brand strength. Base your
response on your experiences as a consumer, as an employee, and/or any other material you
have read in this or other courses.
_______________________________________________________________________________
23
FALL 2012
_______________________________________________________________________________
Session #
Date
_______________________________________________________________________________
18.
International Marketing Issues
11/26/12
Case
Citibank: Launching the Credit Card in Asia Pacific (A).
Read
Distance Still Matters: The Hard Reality of Global Expansion.
Optional
Chapter 18 in K & K.
Objectives
This session will help you develop an appreciation for issues involved in marketing at a
global level. In addition, you will gain exposure to cultural classifications that carry
important implications for marketing.
1. Examine consumer behavior is the credit card category. What are some of the cross-cultural
differences pertaining to this category?
2. What are Citibanks strengths and weaknesses as a brand in Asia Pacific vis--vis the US? Is
it a global brand? Why or why not?
3. Evaluate the research in the case. What has been learned? In your opinion, what additional
information is required to determine whether Citibank should launch the credit card or not?
4. Should Citibank launch the credit card or not? What are the qualitative and quantitative
reasons for either of the two recommendations?
5. What should be the segmentation and positioning strategy and what should be the marketing
mix if you recommend that Citibank launches the card?
6. In general, what specific elements of the marketing mix are more/less easily standardizable
across different cultures?
_______________________________________________________________________________
24
FALL 2012
_______________________________________________________________________________
Session #
Date
_______________________________________________________________________________
19.
Marketing Ethics
11/28/12
Readings
None.
Objectives
The goals of this session are
a. To expose you to ethical issues in marketing.
b. To stimulate a deeper understanding and appreciation of ethical dilemmas inherent in
almost every marketing decision.
_______________________________________________________________________________
20.
Summary & Review
12/03/11
Read
The Marketing Audit Comes of Age.

Marketing is Everything.
Objectives
The last session will be devoted
a. To recap the central issues discussed throughout the course.
b. To internalize the marketing strategy framework.
c. To discuss some future trends that may significantly impact marketing decisions.
d. To review key concepts with a focus on helping you prepare for the final marketing
exam.
Think about the marketing strategy core. In particular, consider the following questions as
you prepare for the class:
1.
2.
What is the role of Marketing in a firm?

What are the components of a marketing plan?
_______________________________________________________________________________
FINAL EXAM
12/10/12
25
FALL 2012
RECOMMENDATION MEMOS
A recommendation memo is a routinely used document in leading firms and many
of you in marketing/brand management jobs may be writing such memos. Those of you in other
functions may be communicating with marketing/brand managers on the basis of such memos.
Therefore, it is essential that you gain practice at writing them.
The purpose of a recommendation memo is to concisely recommend a course of action and
provide rationale supporting the recommendation. This note describes how your team should
approach writing a recommendation memo for the deliverables in the marketing core. The second
part of this note gives you a sample memo that you should use to write your own memos for these
assignments. Note that the format of the memos may vary from company to company. Therefore,
while following the memo format as given in this note, bear in mind that the goal here is merely to
expose you to memo writing and enable you to communicate as a manager in as concise a manner as
possible.
WHAT IS A RECOMMENDATION MEMO?
The recommendation memo is a one-page document (not including exhibits) that
recommends your course of action and rationale. This format promotes a concise and clear
strategic thought process. Equally importantly, it mimics managerial practice. If your memo
exceeds 1 1/4 pages, it is TOO long!
ELEMENTS OF A RECOMMENDATION MEMO
1.
FIRST PARAGRAPH
This paragraph expresses your intent or action (This recommends).
Topic overview (the what, not when or how): costs, funding, etc.
Ends with the hook: selling idea, the why or payoff: this part reveals the
authors point of view.
Checklist
Is there a clearly stated purpose/objective?
2.
BACKGROUND
This paragraph explains why we are talking about this today. It lays out the story.
Historical: not new news (i.e., none of your case analysis will appear here).
Highlights what brought us to this moment, why we are in this position, what brought about
the need to make this decision.
Dimensionalize the importance to the organization (e.g., important profit and/or market
share goal).
Constraints such as budget, capacity, technology, people, etc.
This section is both brief and factual.
26
FALL 2012
Checklist
Is the background clear, concise, and easy to follow?
Does it explain why action is needed now?
Does the appropriate sense of urgency come across?
3.
RECOMMENDATION
Here, you detail what to do, when to do it, and how to do it.
The details of what, when, and how. NO why.
This section should be very specific (100% clear). It must be actionable (How much will it
cost, when, how, who). The reader should be able to read this and know how to carry out
this recommendation.
Some cases may require more than one recommendation.
Checklist
Is the recommendation clear and actionable? Could someone else implement it?
4.
BASIS FOR RECOMMENDATION

Here the reader learns WHY each recommendation is the UNIQUE right thing to do.
2-3 solid reasons are typical. Any other action should seem less appealing.
This section flows from the opening hook; links to the original recommendation.
Support includes impact on profit, share, AND anything else affecting long-term
performance of the company/brand.
Analysis should address quantitative issues such as NPV, cannibalization, break even
analysis, pro forma statement of project, sensitivity analysis; as well as qualitative issues
such as reasons why consumers buy the brand, impact on other brands of the firm, impact on
retail relationships, competitive reactions, etc.
Appeals to precedent and anecdotal evidence in absence of data, but only in limited,
carefully constrained manner.
Shows how the recommendation will put the brand (firm) at a competitive advantage.
The goal is to read the basis and conclude the recommendation.
Checklist
Is the recommendation an inescapable conclusion of the basis?
Does the basis for recommendation appropriately consider:
1. Market size, category trends?
2. Core competencies and consistency with mission of the company?
3. Consumers (builds on important insights)? Competitors?
4. Financial Attractiveness (e.g., NPV, ROI, break-even, payback)?
5. Are all assumptions explicitly stated (e.g., growth rates, market size)? These could be
stated in exhibits/attachments.
27
FALL 2012
5.
DISCUSSION
Outline other alternatives not selected.
Discuss risks and key assumptions (use full disclosure, reference Options Grid) of your
recommendation.
When you give a precise number or range, you must support the basis as well.
Checklist
Is the analysis thorough with key alternatives fairly considered (see the attachment
OPTIONS GRID)?
Risks associated with recommendation are properly addressed? In other words, dont just
state the risks but try and address them through your recommendation(s) as best as you
can.
6.
NEXT STEPS
Orient to the reader
Specify date and action needed (what will be done, by whom, and by when)
Checklist
Clear follow-up/next steps?
If appropriate, lay out timeline with key milestones to implement recommendation.
7.
EXHIBITS
An Exhibit can be a graph, grid, or simple table.
List assumptions used in calculations. Do not assume that the reader can read between
the lines. So, state every assumption explicitly.
Exhibits should have Title, sources, footnotes to calculation. The point of the Exhibit
should be instantly clear to the reader.
Exhibits should be cited in the proper order (i.e., do not cite Exhibit 4 first in your Memo
and then Exhibit 2).
Checklist
Is the analysis precise, accurate, and data-based?
Are the exhibits clearly laid out, titled, and referenced in the memo?
Is every assumption explicitly listed?
NOTE:
Every memo may not include every element described above. The specific case
will dictate what must be included. An example is attached.
28
FALL 2012
To:
From:
SAMPLE MEMO FORMAT

(Name of supervisor as per the case goes here; DONT PUT THE PROFESSORS
NAME HERE! )
Your team designation/title/cohort and number
Date:
SUBJECT:
NAME OF CASE AND RECO TOPIC
This recommends
Implementation will take place within ____ days of approval. Improved sales, reliability,
profitability, productivity, and/or reduced costs will result from these actions (state specific numbers
if possible). Sales (Name), Finance (Name), and Manufacturing (Name) concur (If applicable).
Background
These key facts help explain why we are thinking about this situation today.
At times, the background paragraph is a good place in a recommendation memo to document the
gap between the real and the ideal. When you use it this way, be sure it sets up each of the
reasons in the Basis for Recommendation section of the memo.
Do not include obvious or unnecessary facts. Do not include information found while looking
into the situation. This is for information that caused us to look into the situation.
It is best to simply tell a simple and concise story.
Recommendation
This describes what we are going to do and how we intend to do it. Limit this section to major
points. Implementation details and caveats are discussed in the Discussion section following
the Basis for Recommendation section.
Our objective is to
Basis for Recommendation
We state our most important reason here. It is numbered, underlined, and stated in a full
sentence. We present data here to prove the claim made in point 1, making sure that the first
sentence of this section clearly extends from the data. The claim must be the inescapable
conclusion of the data. If there are more than four rows of data, use an exhibit (i.e., refer to
Exhibit 1). Exhibits must be clearly labeled and numbered.
We state our second most important reason here. We present data to prove the claim made in
point 2.
3 points are typical.
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FALL 2012
Discussion:
Here we discuss a) implementation details, and b) qualifiers, such as risks and rejected
alternative solutions.
Next Steps:
Here we tell the readers exactly what we want them to do and when we want them to do it. We
also lay out a timetable of key milestones to implement the recommendation. A throw-away
schedule should be prepared if high stakes are involved.
[YOUR MEMO SHOULD NOT EXCEED 1 PAGES. THIS PAGE LIMIT IS NOT TO
RESTRICT YOUR THINKING. RATHER, IT IS MEANT TO MIMIC MANAGERIAL
PRACTICE SO YOU GET EXPERIENCE AT WRITING MEMOS IN FORMATS AS CLOSE TO
WHAT IS DONE IN PRACTICE AS POSSIBLE.]
30
FALL 2012
OPTIONS GRIDS (OG)

It is important to recognize that every marketing problem has more than one solution. Our
task in marketing (in fact, in management in general) is to make educated decisions that we can
communicate to others. In doing this, it is helpful to have some tools to evaluate each option facing
us. For the marketing core, we will rely on what we call an Options Grid. You are required to
complete options grids for each of the assignments. This is so we believe that the more you use
them, the more clarity you will gain in examining alternative courses of action in any given
marketing/management situation. In addition, options grids will help you to organize your thoughts
for writing up memos for the marketing core assignments and could potentially help you in other
courses as well. However, note that the options grid and the memo are not meant to be substitutes
for formats that other professors expect you to follow for their courses.
The key areas that are included in an Options Grid are as follows:
Description of Option:
This is a brief description of what each option entails. It is good

practice to describe no more than 4 options. 3 is optimal.
Overall Assessment:
Whether you recommend the option or not, AND WHY.
Strategic Fit:
How does this option fit with the companys core competencies and
vision?
Financial Attractiveness: What is the NPV or break even for the project or option? Can the
company make money on it?
Noteworthy Risks:
For every option, we make assumptions that we hope prove true. If

they dont, outcomes could change. Here is the area to point out what
those risks and limitations could be.
In general, we want to sell our point of view and the Options Grid is a good place to do
that. However, in doing so, we may sometimes lose sight of objectivity. Be aware of this fallacy and
be brutally critical of your recommendation in writing up this options grid. Do not become a victim
of what psychologists call the self-serving bias.
Attached you will find an example of an Options Grid. When you use Options Grids for the
cases in the marketing core, please use the attached general format. An options grid, when used,
must be an attachment (and not the main memo itself) and it must not exceed ONE-PAGE.
31
FALL 2012
Example of an Options Grid
OPTIONS GRID Wal-Mart- P&G Case

Option 1
Maintain Pampers as a
premium brand and fully
support Luvs
Do not recommend because
of high B/E volume and
potential cannibalization.
Option 2
Discontinue support
behind Pampers and Luvs
Strategic Fit
(Core
Competencies)
Provides innovative
product offerings and
capitalizes on marketing
strengths.
Moves away from strong

brand identity. Known
for marketing strengths.
Financial
Attractiveness
Unit B/E Volume = 11.3

million
Dollar B/E Volume =
$174.7 million
Does not identify
cannibalization.
Ability to increase selling
prices based on superior
technology.
Does not anticipate
competitive reaction.
B/E is short run oriented
(1 year).
Substantial change in
market growth of category.

million
Dollar B/E Volume =
$165.7 million
Flat to declining market
share expected.
Does not identify
cannibalization.
B/E is short run
oriented (1 year).
Substantial change in
market growth of
category.
Perceived by customer
as a move away from
premium differentiation.
Description of
Option
Overall
Assessment
Noteworthy
Risks
Do not recommend
because of move away
from core competency
and competitive
marketplace
Option 3
Maintain Pampers as a
premium brand and move Luvs
into private label position
Recommend because of high
B/E volume, expected market
share growth from current
product and anticipated market
segmentation (provides product
to all consumers and dealers)
Provides superior benefit for
premium brand and relationship
with discount channels through
private label. Provides strong
financial outcome
million
Dollar B/E Volume =
$156.6 million
Substantial market share
increases expected.
Does not account for
cannibalization.
B/E is short run oriented (1
year).
Does not anticipate
competitive reaction.
32

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FALL 2012

BA 500 MARKETING STRATEGY CORE

University of Washington, Foster School of Business

CODE OF CONDUCT AND ETHICS

BA 500 MARKETING STRATEGY CORE

BA 500 MARKETING STRATEGY CORE

BA 500 MARKETING STRATEGY CORE

BA 500 MARKETING STRATEGY CORE

BA 500 MARKETING STRATEGY CORE

OVERVIEW OF SESSION TOPICS AND IMPORTANT DATES

Introduction & Course Overview [Aqualisa Case]

Consumer Analysis [Consumer Behavior Exercise]

Market Segmentation, Targeting, and Positioning I

Market Research [Fiji Water]

Quantitative Issues in Marketing and Review

Market Segmentation, Targeting, and Positioning II

Product Strategy I [EMI case]

Advertising and Promotions I

Advertising and Promotions II [Online Big Skinny case]

Distribution Strategy [Bank of America case]

Pricing Strategy II & Integration

Implementation [Cialis case]

International Marketing Issues [Citibank case]

BA 500 MARKETING STRATEGY CORE

Aqualisa Quartz: Simply a Better Shower.

High Performance Marketing: An Interview with Phil Knight.

BA 500 MARKETING STRATEGY CORE

Consumer Behavior Exercise (Note in the Course Pack).

BA 500 MARKETING STRATEGY CORE

Competitor Analysis: Anticipating Competitive Actions.

BA 500 MARKETING STRATEGY CORE

Market Segmentation, Target Market Selection and Product

BA 500 MARKETING STRATEGY CORE

Building a Marketing Plan: Marketing Research.

BA 500 MARKETING STRATEGY CORE

Marketing Analysis Toolkit: Breakeven Analysis, Harvard

Clean Edge Razor: Splitting Hairs in Product Positioning.

BA 500 MARKETING STRATEGY CORE

Clean Edge Razor: Splitting Hairs in Product Positioning.

BA 500 MARKETING STRATEGY CORE

Ken Chenault Reshuffles His Cards.

BA 500 MARKETING STRATEGY CORE

EMI and the CT Scanner (B).

Break Free from the Product Life Cycle.

Chapters 10, 11 in K & K.

Describe the situation EMI faces in the case.

BA 500 MARKETING STRATEGY CORE

Nintendo Readies Successor for Wii, Wall Street Journal, 4/26/2011.

Chapters 10, 12, 13 in K & K.

BA 500 MARKETING STRATEGY CORE

Consumers Advertising Response Processes.

Chapters 15, 16 in K & K.

BA 500 MARKETING STRATEGY CORE

Online Marketing at Big Skinny

Chapters 13, 14 in K & K.

BA 500 MARKETING STRATEGY CORE

Bank of America: Mobile Banking

Changing Channels: The Impact of the Internet on Distribution

Chapters 13, 14 in K & K.