The Wharton School

University of Pennsylvania

MKTG 277/777: Marketing Strategy

Fall 2008

NOTE: This syllabus is tentative. Minor changes might be made before September 3.

Administrative details
Professor: Renana Peres, Room: TBD , Tel: TBD
Email: [email protected]
http://renanaperes.homestead.com/

Head TA: TBD

Office Hours: TBD

Web Caf Address: http://webcafe.wharton.upenn.edu/eRoom/mktg/777

Overview and objectives

The purpose of this course is to help you develop expertise in evaluating and formulating
strategic marketing decisions. Strategic decisions, unlike tactical decisions, have long term
effects and are costly to change once implemented. Thus, any strategic decision should be based
on a solid understanding of both the market status, and consider the long term influence of the
most important assets of the firms: customer equity and brand equity.

In this course we will deepen the understanding of how marketing relates to the key issues in
business strategy: understanding the market status and competition status, segmentation,
choosing target customers, choosing business scope, defining and creating value, appropriating
value, and sustaining value. The course is designed to help participants -

Analyze key marketing ideas and phenomena, especially the core theme of delivering
superior value to customers.
Develop an appreciation for important marketing assets (e.g., brands, loyal customers),
and learn how to enhance them.
Gain familiarity with the functional marketing strategies (e.g., brand, new product,
international marketing strategies) and enhance problem solving and decision making
abilities in these areas.

Course Syllabus: Marketing 777/271 (Fall 2008) Page 1

 Acquire basic skills in analytical approaches to strategic marketing issues (i.e., develop
some foundation in marketing modeling and marketing science).
Experience in writing a marketing plan.

The course will discuss in details many subjects which were learned in the core courses in
Marketing and Strategy. This is a capstone course in marketing that ties everything together. It
is a generalists course, not a specialists course: we will not spend a large amount of time on
one marketing mix variable or marketing function. Instead, all marketing mix variables will be
discussed in an integrated way, with a focus on the fundamental, strategic marketing issues that
confront senior management.

We will use the experience gained from variety of industries and countries, with special
emphasis on examples from countries outside the US.

Learning methods
The course uses a combination of lectures, cases, class discussions and readings.
Lectures will be used to introduce new concepts, frameworks and tools that are important for
conducting a thorough marketing analysis and developing marketing strategy and programs.
These lectures will be interactive rather than simply a monologue.

Each class is either primarily a lecture or a case discussion. Lecture sessions and case sessions
typically alternate, with the lectures introducing material relevant to the subsequent case. Copies
of the lecture notes and data I will be using will be available at the course site. Typically, the
slides are not complete and will need to be annotated during the lectures, so if you miss a class
you will need to get annotations from a colleague.

You will be asked to read the required material from the reading list below before each class.
You are expected to be able to participate in class discussions based on these readings. The
lectures will complement the text and will not attempt to cover all points raised in the reading.

We use two textbooks in this course:

Aaker, David A. Strategic Market Management, Wiley (8th edition) 2007.

Lehmann Donald and Russell Winer. Analysis for Marketing Planning. Mc-Graw Hill
(7th edition) 2008.

The books complement each other, and both are needed.

In addition, we discuss cases, which illustrate managerial dilemmas and market scenarios. The
cases are contained in the course reading packet. Additional material will be posted on the course
Website.

Course Syllabus: Marketing 777/271 (Fall 2008) Page 2

Assessment
1. Class Participation 20% (individual)

2. Case Reports 30% (couples)

3. Individual Case Memos 10% (individual)

4. Marketing Plan 40% (couples)

Class participation
Regular class participation is expected and will be a part of the grade. Grading class participation
is necessarily subjective. Some of the criteria for evaluating effective class participation include:
a. Is the participant prepared? Do their comments show evidence of deep case and readings
analysis (vs. stating the facts)?
b. Is the participant a good listener? Are the points made relevant to discussion?
c. Is the participant an effective communicator? Are concepts presented in a concise and
convincing fashion?

You should be prepared for all case discussions on the cases and the reading materials. In
addition, be expected to be cold called during a discussion, either about a case or a reading.

Case Reports
You will be asked to submit 5 Harvard Business School case reports out of the case list. The
cases describe managerial scenarios which require strategic decisions.

In each report, you should address the questions that will be distributed via the class website.
Questions can be either qualitative or require computations. Reports will be submitted in singles
or pairs, the typical length of a case report is 2000 words (about 4 pages written in 1.5 lines
space, font 12).

The cases will be discussed in class. The case discussions are a critical component of the
learning process for this course. You should be prepared for all case discussions whether the
cases were written individually or with a partner. You will be evaluated on both the quantity and
quality of the participation. Expect to be cold called during a discussion. We will also use
creative discussion methods such us simulations, exercises, games and contests.

Course Syllabus: Marketing 777/271 (Fall 2008) Page 3

Individual Case Memos

Each person must hand in an individual short memo on each case (except for the five cases that
turn is as case reports). This memo should be no more than one page in length and should
briefly summarize the answer to each of the case questions. You will receive credit simply for
handing in each of these reports on time. These reports will not be individually graded or
returned, however, they will be used to help determine final grades for people close to the letter
cutoffs.

Marketing Plan

The Marketing Plan describes and outlines the strategic decisions, and is one of the important
tools used by marketing managers. Plans will be submitted in singles or pairs. The marketing
plan will be written for Clocky: The runaway alarm clock, based on the case contained in the
Reading Pack.

Writing a marketing plan is a long and time-consuming process, and you are warmly advised to
start working on it from the 3rd week of the course, following the course progress.

We will have a competition among all the marketing plans the winning plan will be presented
in the last meeting. The prize: A bonus of 10 points + a surprise!

More details on the marketing plan will be provided in class.

I look forward to meeting you on the first day of class. If you have any questions regarding the
course, please feel free to contact me.

Course Syllabus: Marketing 777/271 (Fall 2008) Page 4

 Class schedule at a glance

SESSION Week DAY DATE Class Content TYPE

1 Sep 3 Wed Sep 3 Introduction why planning fails?

I. How are we doing? Understanding value

External analysis Knowing our environment

Competition
2 Sep 8 Mon Sep 8 Defining the competitive set Theory
Performance metrics
3 Wed Sep 10 Competition -Dell Case

4 Sep 15 Mon Sep 15 Customers - B2B markets Theory

5 Wed Sep 17 Segmentation: Choosing segmentation bases Theory

6 Sep 22 Mon Sep 22 Segmentation based on situation/use: Gallardos Case

7 Wed Sep 24 Mass customization segments of 1? Theory

Internal analysis Knowing and measuring our assets

8 Sep 29 Mon Sep 29 Customers customer lifetime value Theory

9 Wed Oct 1 Customers customer equity Theory

10 Oct 6 Mon Oct 6 Rosewood Hotels Case

11 Wed Oct 8 Brand equity Theory

12 Oct 20 Mon Oct 20 Mountain Man Brewing company Case

II. Where are we going? Defining value

Targeting Choosing customers

13 Wed Oct 22 Targeting New vs. Existing customers Theory

14 Oct 27 Mon Oct 27 Targeting the influentials: HSBARO Games POX Case

15 Wed Oct 29 Targeting the innovators? Theory

Course Syllabus: Marketing 777/271 (Fall 2008) Page 5

 Positioning

16 Nov 3 Mon Nov 3 Classical positioning: Tanishq Case

17 Wed Nov 5 Blue Ocean Strategy Theory

II. Functional area strategies sustaining and increasing value

18 Nov 10 Mon Nov 10 Brand Management - Diesel Case

Issues in brand management

Product line management
19 Wed Nov 12 Brand extensions Theory
Private labels
Brand ethics
New product strategies pioneering advantage
20 Nov 17 Mon Nov 17 Theory
Is it good to be the first to market?
Product team Cialis
21 Wed Nov 19 Case
Submit the marketing plan
New product strategies international
22 Nov 24 Mon Nov 24 Theory
marketing
23 Wed Nov 26 Managing Satisfaction and Loyalty Theory

24 Dec 1 Mon Dec 1 Harra's entertainment Case

Course summary Presenting the winning

25 Wed Dec 3
marketing plan

Remark: Case reports and memos should be submitted in hard copy in the beginning of the
session in which they are discussed.

Cases

Dell- Overcoming roadblocks to growth, Hong Kong University Case by Ali Farhoomand and
Mary Ho (2006). Product number HKU575.

Gellardo's goes to Mexico, Harvard Business School Case by Clayton Christensen (2005).
Product number 605-072.

Rosewood Hotels and Resorts: Branding to Increase Customer Profitability and Lifetime Value,
Harvard Business School Case by Chekitan S. Dev and Laure Mougeot Stroock (2007). Product
number 2087.

Course Syllabus: Marketing 777/271 (Fall 2008) Page 6

Mountain Man Brewing Co.: Bringing the Brand to Light, Harvard Business School Case by
Heide Abelli (2007). Product number 2069.

Hasbro Games: POX (A), Harvard Business School Case by David Godes and Elie Ofek (2004).
Product number 505046.

Hasbro Games: POX (B), Harvard Business School Case by David Godes and Elie Ofek (2004).
Product number 505047.

Tanishq: Positioning to Capture the Indian Woman's Heart, Harvard Business School Case by
Das Narayandas and Kerry Herman (2007). Product number 507025.

Diesel for Successful Living: Branding Strategies for an Up-market Line Extension in the Fashion
Industry, INSEAD Case by Vadim Grigorian (2004). Product Number 02/2004-4948.

Product Team Cialis: Getting Ready to Market, Harvard Business School Case by Elie Ofek
(2004). Product number 505038.

Harrahs Entertainment, Inc., Harvard Business School Case, by Rajiv Lal and Patricia Martone Carrolo
(2001). Product Number 9-502-011.

For the marketing plan:

Clocky: The runaway alarm clock, Harvard Business School Case, by Elie Ofek and Eliot
Sherman (2006). Product number 507016.
This case will be used only for the marketing plan. No case memo is required, do not select it for
a case report.

Readings

The following table contains the reading material for each session. Usually reading are due to
theory sessions, while in the case sessions we will focus on case discussions.
Readings which are not a part of the textbooks are found in the reading pack.
Supplemental material will be distributed via the course webCafe site.

READINGS
SESSION DATE Subject

Aaker Ch. 1: Business strategy concepts and trends

1 Sep 3 Introduction Aaker Ch. 2: Strategic market management
L&W Ch. 1: Marketing planning
Aaker: Ch. 3 pp. 44-48 External analysis
Aaker: Ch. 4-6: Competitor analysis, Market analysis,
2 Sep 8 Competition Environment analysis (skim)
L&W Ch. 2: Defining the competitive set
L&W Ch. 3: Industry analysis

Course Syllabus: Marketing 777/271 (Fall 2008) Page 7

 L&W Ch. 4: Competitor analysis (skim)

3 Sep 10 Competition Case: Dell

Building loyalty in business markets, Das Narayadas (2005)

HBR Sep. Product number R0509H.
4 Sep 15 B2B markets
Major Sales: Who Really Does the Buying? Thomas
Bonoma (2006) HBR Jul. Product number R0607P.
Aaker Ch. 3: pp. 49-53 Segmentation
5 Sep 17 Segmentation
L&W Ch. 5: pp. 141-165 Segmentation

6 Sep 22 Segmentation Case: Gallardos

The Four Faces of Mass Customization, James Gilmore

Mass
7 Sep 24 and Joseph Pine (1997) HBR Jan. Product number
customization
97103.
Customer L&W 245-247
8 Sep 29
lifetime value
Customers as Assets, Sunil Gupta and Donald Lehman (2003)
Journal of Interactive Marketing, Vol. 17 (1), p. 9-24.
Customer
9 Oct 1 Seven Barriers to Customer Equity Management Bell,
equity Deighton, Reinartz, Rust and Schwartz (2002), Journal of
Service Research, Vol. 5, p. 77-86.
Rosewood Case: Rosewood Hotels
10 Oct 6
Hotels
L&W Ch. 7: 228-236
Measuring Brand Equity Across Products and Markets, David
Aaker (1996) California Management Review, Spring,
11 Oct 8 Brand equity 103-119.
How Global Brands Compete , Harvard Business
Review, Vol. 82 (9), p. 68-75. Douglas B. Holt John
A. Quelch and Earl L. Taylor (2004)
Mountain Man Case: Mountain Man Brewing company
12 Oct 20 Brewing
company
Aaker Ch. 9 pp. 182-185 Choosing strategies
New vs. Aaker Ch. 12-13 Growth Strategies, Diversification (skim)
13 Oct 22 Existing Managing When Customer Equity Matters, Dominique
customers M. Hanssens, Daniel Thorpe, Carl Finkbeiner (2008).
HBR May. Product number R0805J.
Targeting the Case: HSBARO Games POX
14 Oct 27
influentials

Course Syllabus: Marketing 777/271 (Fall 2008) Page 8

 Targeting the Geoffrey Moore, How High-Tech Markets Develop, Chapter 2
15 Oct 29 in The Gorilla Game, 1999
innovators?
Case: Tanishq
Classical
16 Nov 3 L&W Ch. 7 pp. 221-245
Positioning

Aaker Ch. 11 (focus on Low Cost)

Blue Ocean Blue Ocean Strategy, W. Chan Kim, and Renee
17 Nov 5
Strategy Mauborgne (2004), Harvard Business Review.
Product number R0410D,
Brand Case: Diesel
18 Nov 10
Management Aaker Ch. 10 pp. 202-212 Brand Management
The Brand Report Card, Kevin Lane Keller (1999), Harvard
Business Review Product Number R00104.
Issues in brand
19 Nov 12 Three Questions You Need to Ask About Your Brand, Kevin
management Lane Keller, Brian Sternthal, and Alice Tybout (2002),
Harvard Business Review Product Number R0209F.
Pioneering advantage: Marketing Logic or marketing legend?
Pioneering
20 Nov 17 Peter Golder and Gerard Tellis (1993) Journal of
advantage Marketing Research pp. 158-170.
Product team Case: Product team Cialis
21 Nov 19 Cialis
Submit the marketing plan

Aaker Ch. 15
The Role of Seeding in Multi-Market Entry, Barak Libai,
International
22 Nov 24 Eitan Muller and Renana Peres (2005),
marketing
International Journal of Research in Marketing,
22(4), 375-393.
Lead for Loyalty, Frederick Reichheld (2001) Harvard
Managing Business Review, 79 (Jul/Aug), 76-82.
23 Nov 26 Satisfaction The Loyalty Effect The Relationship between Loyalty and
and Loyalty Profits, Frederick Reichheld (2001), European Business
Journal 12 (3), 134-39.
Harra's Case: Harrah's entertainment
24 Dec 1
entertainment
25 Dec 3 Summary

L&W: Lehmann &Winer

Course Syllabus: Marketing 777/271 (Fall 2008) Page 9