15.810 | Fall 2004 | Graduate

Marketing Management

Pages

Cases Generally

The cases facilitate the discussion of marketing problems in real situations. You should read these cases carefully and come to class prepared to provide constructive input as the class works together to address the issues of the case. The best way to prepare is to attempt to answer the discussion questions (posted on the website). If you can answer each question well, you will understand the basic issues of the case.

We strongly encourage you to discuss the case within your group. You will benefit from defending your ideas and you will learn by discussing other group members’ approaches. For the cases that are not due as written cases, you may discuss the general issues with other students at Sloan. However, you should not discuss these cases with any students who may have studied them in a prior year. For the three written group cases you should discuss the cases only within your group. All group members should contribute to the case write-up, which is expected to be original material.

Group Case Reports (PDF)

Each group will be required to hand in three case write-ups. You may choose from the following menu:

  • Vestron or Barco
  • Optical Distortion or Tweeter etc.
  • Boston Whaler or Michael Bregman

Use the following sets of questions to guide your report:

CASE TOPICS QUESTIONS
Barco Projection Systems (PDF)
Boston Whaler (PDF)
Michael Bregman (PDF)
Optical Distortion (PDF)
Tweeter (PDF)
Vestron (PDF)
Vicks Healthcare (PDF)

Individual Case Reports

In addition to your three group case write-ups, each person must hand in an individual report on each case (not including the three cases that comprise your group report). This report 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 students close to the letter cutoffs.

Final Exercise (PDF)

A final exercise will be handed out at the start of the semester. It will be a group exercise. Instructions will be provided. A report will be due on the Monday following the final class session.

Lec # Topics
1 Lecture: Introduction
2 Lecture: The Customer Decision Process
3 Case Study: Vicks
4 Lecture: Marketing Strategy 1
5 Lecture: Marketing Strategy 2
6 Case Study: Vestron
7 Case Study: Barco
8 Lecture: New Product Development
9 Case Study: Optical Distortion
10 Lecture: Pricing
11 Case Study: Tweeter etc.
12 Lecture: Management of Marketing Channels 1
13 Case Study: Boston Whaler
14 Lecture: Management of Marketing Channels 2
15 Case Study: Michael Bregman
16 Lecture: Advertising
17 Lecture: Advertising at Nike
18 Lecture: Conclusion

Lec # Lecture Notes
1 Lecture: Introduction (PDF)
2 Lecture: The Customer Decision Process (PDF)
3 Case Study: Vicks
4 Lecture: Marketing Strategy 1 (PDF)
5 Lecture: Marketing Strategy 2 (PDF)
6 Case Study: Vestron
7 Case Study: Barco
8 Lecture: New Product Development (PDF)
9 Case Study: Optical Distortion
10 Lecture: Pricing (PDF)
11 Case Study: Tweeter etc.
12 Lecture: Management of Marketing Channels 1 (PDF)
13 Case Study: Boston Whaler
14 Lecture: Management of Marketing Channels 2 (PDF)
15 Case Study: Michael Bregman
16 Lecture: Advertising (PDF)
17 Lecture: Advertising at Nike
18 Lecture: Conclusion (PDF)

Required Readings

Case Studies of the Following Topics

Hibbard, Jonathan D., Julie Yao, and John A. Quelch. “Vestron.” Boston, MA: Harvard Business School, 1990. Case No. 9-590-002.

Willilams, Jeffrey R. “Vicks Health Care Division, Project Scorpio (A).” Boston, MA: Harvard Business School, 1981. Case No. 9-582-039.

McQuade, Krista, and Rowland T. Moriarty. “Barco Protection Systems (A).” Boston, MA: Harvard Business School, 1991. Case No. 9-591-133.

“Optical Distortion, Inc. (A).” Boston, MA: Harvard Business School, 1975. Case No. 575-072.

Gourville, John, George Wu, and James Evans. “Tweeter etc.” Boston, MA: Harvard Business School, 1996, 1997. Case No. 9-597-028.

Kane, Margaret L., and Thomas V. Bonoma. “Boston Whaler, Incorporated: Managing the Dealer Network.” Boston, MA: Harvard Business School, 1983. Case No. 9-584-036.

Von Werssowetz, Richard O., and Howard H. Stevenson. “Michael Bregman.” Boston, MA: Harvard Business School, 1983. Case No. 9-383-107.

Shapiro, Roy D., and Bruce Isaacson. “Bose Corporation: The JIT II Program (B).” Boston, MA: Harvard Business School, 1994. Case No. 9-694-002.

———. “Bose Corporation: The JIT II Program (D).” Boston, MA: Harvard Business School, 1994. Case No. 9-694-004.

Background Reading in Course Packet

Customers

Thaler, R. “Mental Accounting and Consumer Choice.” Marketing Science 4 (1985): 199-214.

Simonson, I. “Get Closer To Your Customers By Understanding How They Make Choices.” California Management Review 35, no. 4 (Summer 1993).

Simester, D., and Drazen Prelec. “Always Leave Home Without It: A Further Investigation of the Credit Card Effect on Willingness to Pay.” Marketing Letters 12, no. 1: 5-12.

Marketing Strategy I

Collins, D., and Cynthia A. Montgomery. Competing on Resources: Strategy in the 1990s. Cambridge, MA: Harvard Business School Press, 1995.

Marketing Strategy II

Staff. “Barnes and Noble, Ingram Deal Under Scrutiny.” New York Times, Jan 1, 1999.

Staff. “Republic Industries, Toyota Settle Dispute over Dealerships.” The Wall Street Journal, Jan 2, 1997.

Product Development

Saunders, P. “The Growth Machine.” In Capitalism. Minneapolis, MN: University of Minnesota Press, 1995, pp. 1-12. ISBN: 0816627983.

“Jager’s Gamble.” Economist 37, no. 3 (Oct 9, 1999).

Staff. “Know Thyself.” Economist 76, no. 76 (1999).

Pricing

Anderson, E., and Duncan Simester. “Mind Your Pricing Cues.” Harvard Business Review 81, no. 9 (Sep 2003).

———. “Are Sale Signs Less Effective When More Products Have Them?” Marketing Science 20, no. 2 (2001): 121-142.

———. “Effects of $9 Price Endings on Retail Sales: Evidence from Field Experiments.” Quantitative Marketing and Economics 1, no. 1 (2003): 93-110.

———. “Price Discrimination as a Signal: Why an Offer to Spread Payments May Hurt Demand.” Marketing Science 20, no. 3 (2001): 315-327.

Channels I

Milgrom, P., and John Roberts. “Economic Organization and Efficiency.” Chapter 2 in Economics, Organization, and Management. Newark, NJ: Prentice Hall, 1992. ISBN: 9780132246507.

Gladwell. “Village People.” The Guardian, Jan 2, 2001.

Staff. “Categorical Imperatives.” Economist, Jan 2, 1997.

Channels II

Simester, D., and Marc Knez. “Direct and Indirect Bargaining Costs and the Scope of the Firm.” Journal of Business 75, no. 2 (2002): 283-304.

Channel Conflict on the Internet

Advertising

Ogilvy, D. “How to Produce Advertising That Sells.” Ogilvy on Advertising. New York, NY: Vintage Press, 1985. ISBN: 039472903X.

Elliott, Stuart. “Snuggle Gets An Image Makeover.” New York Times, Jan 1, 2003.

Final Class

Trillin, Calvin. “The Red And The White.” New Yorker Magazine, Aug 19, 2002, p. 145.

Course Meeting Times

Lectures: 3 sessions / week, 1.5 hour / session

Nature and Purpose of the Course

Marketing is not just selling or advertising. It is a rigorous, disciplined science that applies a reasoned framework to the selection of target markets and the optimization of marketing decisions. In this course you will learn to look at marketing problems through the lens of an analytical framework that will help you better understand:

  • How to anticipate and take advantage of surprising inconsistencies in the customer decision process.
  • How to evaluate the attractiveness of different markets.
  • How to manage the tradeoff between risk and information in the product development process.
  • A structure for thinking about the design and management of distribution channels.
  • Why pricing decisions are complex and how they get made.
  • How to manage an advertising campaign.

The course has two parts: a tactical portion and a strategic portion. The strategic portion focuses on identifying organizational competencies and using these competencies to analyze industries and identify target markets. The tactical portion of the course reviews the methods that firms can use to optimize their profits in the markets that they choose to target. Topics covered in the tactical portion include pricing, promotion, distribution and product issues.

The course is designed as an introductory survey of marketing topics for students who have not previously taken a marketing course. There are no prerequisites.

Course Materials

The course draws upon a readings packet containing cases and required readings. There is no required textbook for this subject.

Evaluation of Work

ACTIVITIES PERCENTAGES
Class Participation 25%
Group Case Reports 40%
Final Exercise 25%
Individual Case Reports 10%

Organization of Course

The course is organized so that each class is either a lecture or a case discussion. Lecture classes and case classes alternate, with the lectures covering material relevant to the next case. You should plan to review the lecture slides before coming to class.

I recommend the following reading priorities: cases, required reading and then lecture notes.

Forming Teams

Students are asked to form teams to prepare for the cases. The target size is four people. Three is viable but more than four or less than three is strongly discouraged.

Class Discussion

The benefit that you will derive from the course will depend upon the extent to which you expose your own viewpoints or conclusions to the critical judgement of the class. You should view class participation both as an opportunity to ask questions to enhance your understanding, as well as an opportunity to suggest examples that demonstrate your understanding of the material.

It is imperative that you read all of the cases to be discussed and come to class with a series of comments that you think will be interesting to the class. If you must miss a class, warn one of the TAs so that you do not lose credit for class participation. Try to remember to bring your name cards to class (at least for the first few weeks).

Ethics

We subscribe to the Sloan professional standards. Please arrive on time for class with uninterrupted attendance for the duration of the class. I will endeavor to end class on time. Furthermore, please maintain a professional atmosphere. This includes, but is not limited to, using respectful comments and humor, employing appropriate manners and decorum, utilizing computers and technology suitably (e.g., silencing wireless devices, no web-browsing or emailing), and refraining from distracting or disrespectful activities (e.g., avoiding side conversations and games).

Course Info

As Taught In
Fall 2004
Level
Learning Resource Types
Lecture Notes