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Marketing

Professor: Dr. Stefan Worm


Course Coordinator: Dr. Stefan Worm
worm@hec.fr
Bldg. W1, Rm. 406
Tel. +33 139 67-9601
Office hours: Please set up appointment by email

Assistant: Ms. Aniza Pourtauborde


pourtauborde@hec.fr
Bldg. W1, Rm. 301
Tel. +33 139 67-9799


Course Description
The class introduces participants to concepts and principles of marketing management. The major role of
marketing in a company (or public agency) is determining, creating, communicating and delivering a
value proposition that meets the needs of its customers. In addition, marketing in its boundary-spanning
role introduces the voice of the customer into the firm, helps build long-term relationships and ensures
that the firm builds equity with its customers.
We have selected the materials and structured the sessions, especially the case studies, in a way that will
provide a challenging experience both for students who have very limited marketing experience and for
those who have worked in marketing before beginning the MBA. Because marketing is a very broad and
important business function, this course aims at familiarizing you with the key tools. For those who
become interested in a specific topic, we provide supplementary readings. Courses from the specialized
marketing track will enable to learn more about a specific topic.

Learning Outcomes
When you successfully complete this course, you should be able to . . .
Apply the key marketing concepts and frameworks to analyze marketing problems and business
decisions.
Understand the contribution of marketing assets to firm value and how organizations build, nurture,
and leverage these assets via market-facing business processes.
Describe and analyze the characteristics of a specific market using data on environment, customers,
and competitors.
Develop and formulate a marketing strategy based on a consideration of firm resources and market
opportunities.
Estimate the financial consequences of marketing decisions.
Understand the function of the key instruments available to marketers: customer management,
branding, product, price, distribution, and communication.
Draw on insights from current academic research in Marketing.

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Key Topics
Part 1: Marketing Strategy
v Goals of Marketing
v Market Analysis
v Formulating, Evaluating, and Selecting Marketing Strategies

Part 2: Marketing Instruments
v Product & Brand Management
v Marketing Communication
v Pricing & Promotions
v Distribution
v Managing Customer Relationships

Course Materials
Reference Books (recommended)
- Key Marketing Metrics: The 50+ Metrics Every Manager Needs to Know, by Farris, Bendle, Pfeifer,
and Reibstein.
- Marketing Management and Strategy, by Peter Doyle and Phil Stern (4th edition).
Cases
- Packet of Cases, made available prior to class and available for download via the course website
on K-Hub (https://k-hub.hec.fr, log on using your HEC login).
Other Materials
- Required and supplementary articles made available prior to class or accessible on-line via the
course website on K-Hub.

Learning Methods
The course integrates interactive lectures and discussions of cases. The methods of active learning in this
course require advance preparation by the participants. The cases provide you with an opportunity to
discover key marketing concepts and metrics, and learn how to apply these in "real world" marketing
situations. The readings and accompanying lecture/discussions expand on these concepts and ideas
which provide the basis for marketing decision making.

Cases and articles will be made available to you prior to our class period. It is highly recommended to
every single participant to take the time and effort to work through these materials before each class.
Lecture slides will be available for download after each session. The content provided on these slides are
a guideline for what is covered in class. It is each students responsibility to take notes.

An effective class session can only occur if both you and I are involved in the learning process. It requires
openness, a sense of skepticism, and an interest in learning new ideas and concepts. This suggests that
whatever the topic there will always be room for the subjective, the opinion and the intuition. You should
be willing to share ideas with the other participants and also be willing to listen to them. Your active
participation will help us test our own assumptions and assertions. Your enthusiasm, your intellect and
your physical presence can contribute tremendously to your learning. Furthermore, your colleagues are
important sources of learning. Take advantage of your colleagues experience, knowledge, and ideas, and
do your part by being prepared and contributing your relevant experiences in class meetings.

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Prerequisites
none

Grading
Grades are based on:
v Class participation (including case presentation)
v Group case write-ups
v Final exam

33%
33%
33%

Case Work & Discussion


A total of nine (9) cases will be discussed in class. Please pay attention to the following points:
All participants are expected to prepare each case to be prepared for the group work. This includes
having done the analyses and being able to explain what you did with the data.
Working on the cases by yourself and/or as a group represents a crucial element in your learning
journey for this class. Neglecting case preparation will largely hamper your learning from this class.
I recommend that you utilize the Marketing Metrics Book intensively when working on the
analyses.
The cases introduce a variety of market contexts and company problems. They provide ample
opportunity for class discussion.

Case:
Case Write-Ups by Groups
1. Starbucks - Delivering Customer Service (# 9-504-016)
1, 2,3, 4
2. Nestle Refrigerated Foods (A): Contadina Pizza & Pasta (# 9- 5, 6, 7, 8
595-035) (# 9-509-049)
3. Hubspot
9, 10, 11, 12
4. Mountain Man Brewing (#2069)
1, 2,3, 4
5. BBVA Compass: Marketing Resource Allocation (# 9-511-096) 5, 6, 7, 8
6. Reynolds Metals Company (# 9-597-045)
9, 10, 11, 12
7. Natureview Farm (# 2074)
1, 2,3, 4
8. Atlantic Computer: A Bundle of Pricing Options (# 2078)
5, 6, 7, 8
9. CMR (# 9-501-012)
9, 10, 11, 12

While all participants are required to prepare each of the cases prior to our course meetings, three
specific groups (see group assignment) submit their write-ups to Ms. Aniza Poutauborde
(pourtauborde@hec.fr) by email by 12:00 noon on the day preceding the in-class discussion of the case
(8:00 AM in the case of morning sessions). (PT MBA only: Since the cases require in-depth analysis of the
problem and data, it is absolutely necessary that you work on all cases at question before the lecture
week starts.)

Please respect the following guidelines for the write-ups and your case preparation (where applicable):

Write succinctly and do not go over the page limit. The instructor will provide a number of case questions
to help you get started in assessing their case. Yet, you should NOT answer the discussion questions one
after the other in your write-up. Answer the following questions:
1. The problem in this case is (Define the problem and cite only the relevant facts to support
your definition. Do not repeat case facts unless it is to support your judgment)
2. If I were responsible for solving the problem, I would do the following (Describe what you
would do and why you would select this course of action)

Some additional tips:
Take a managerial perspective. Imagine you were reporting to your boss on your solution to the

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problem.
The quality of your analysis is critical. Make sure that you explain the rationale behind each
recommendation or conclusion that you make and provide their related pros and cons.
You should develop the alternative solutions for the problem
You should state the relevant criteria on which to evaluate these solutions
Make a recommendation based on the above analysis
If applicable, read the related course material while working on the case
Use an analytical approach to support your conclusions. Use the data provided in the case!


Format: Page limit 2 pages, 12 pt. Times New Roman font, single spaced, with 2.5 cm margins all round,
excluding appendices.

Many students find that their write-up described the most important points but ran out of space to
write them all down. This is symptomatic. The purpose of this course is to help you identify which of the
details hidden in the myriad of case facts are most relevant. The page constraint is meant to force you to
reveal what you think is relevant.

Plagiarism: Written case assignments should reflect your work and your work only. Violations of this rule
will lead to a fail grade and may lead to further sanctions by the MBA program.

Every individual on the team will usually be given the same grade, but individual grades may be adjusted
using peer evaluation. Please do not prepare for the class discussion by seeking out additional or more
recent data on the firms or industries in the case.

Tentative Schedule
(may change, e.g. to accommodate guest speakers and due to schedule changes by the MBA)

Day & Time


th

Session 1 Tue Jan 20


Session 2

Fri Jan 30

Session 3

Tue Feb 3

Topic

What to Prepare

13:00 16:10

th


Learning Objectives
Introduction
Course Organization
Goals of Marketing - Discovering,
Creating, Communicating,
Delivering and Extracting the
Value Proposition

09:00 12:50
Marketing & Strategy
Case: Starbucks - Delivering
Customer Service

rd

13:00 16:10


Prepare case
Case write-ups
HBR: Customer Intimacy and Other Value
Disciplines
Farris et al. Chapters 1, 10
Doyle & Stern (D&S) Chapters 1 & 2
Supplementary Readings (for those looking
for background information):
HBR: Bringing Customers into the
Boardroom.
Marketing, Business Processes, and
Shareholder Value
The Cost of Myopic Management
Theory and Practice of Myopic
Management

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Session 4

Tue Feb 10

Session 5

Tue Feb 17

Session 6

Tue Feb 24

Session 7

Tue Mar 3

Session 8

Tue Mar 10

Strategic Analysis: Discovering


and Sizing Market Opportunities
Case: Nestle Refrigerated Foods
(A): Contadina Pizza & Pasta

th

13:00 16:10
Strategic Planning: Formulating,
Evaluating, and Implementing
Marketing Strategies
Case: Hubspot

th

13:00 16:10
Product & Brand Management
Case: Mountain Man Brewing

th

13:00 16:10
Integrated Marketing
Communication I
Case: BBVA Compass

rd

13:00 16:10
Integrated Marketing
Communication II
Case: Reynolds Metals Company

th

13:00 16:10
Distribution
Case : Natureview Farm
Exam info and Q&A

Prepare case
HBR article: Competing on Analytics
Farris et al. Chapters 2, 4 (pp. 92-104)
D&S Chapters 3 & 4
Supplementary Readings:
HBR article: Big Data - The Management
Revolution
From Marketing as a Function to
Marketing as a Transformational Engine
(Kumar)

Prepare case
Case write-ups
GFK Roper Consumer Lifestyle
Segmentation
HBR Article: Rediscovering Market
Segmentation
Farris et al. Chapter 3 (pp. 43-53, 64-88)
D&S Chapters 3, 4, & 7

Prepare case
Case write-ups
HBR Article: Selling Services more
Profitably
Farris et al. Chapter 4, p. 105-127
D&S Chapters 5, 6, & 7
Supplementary Readings:
From Market-Driven to Market Driving
HBR Article: Connect and Develop
HBR Article: Understanding the
Psychology of New Product Adoption
HBR Article: Building a Leadership Brand
HBR Article: Brand Equity in the Scheme
of Things
The Financial Value Impact of Perceptual
Brand Attributes

Prepare case
Case write-ups
Farris et al. Chapter 9
D&S Chapter 9


Prepare case
Case write-ups
HBR Article: Mind Your Pricing Cues
Supplementary Readings:
HBR Article: Discounts Can Be Dangerous
Farris et al. Chapter 8
D&S Chapter 9

From Branded Bulldozers to Global
Distribution Partners (Kumar)
Farris et al. Chapter 3 (53-64), 6 (pp. 176-
188)

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D&S Chapter 11
th

Session 9

Tue Mar 17

13:00 16:10

Week 10

Tue Mar 24

Exam

Mon Mar 30

09:00-10:30

Final exam (90 mins)

Closed book, bring calculator

Pricing
Case: Atlantic Computer: A
Bundle of Pricing Options
Guest Speaker: Nicolas Gex,
Amazon Online Retailing

th

13:00 16:10
Managing Customers
Case: CMR Enterprises

th


Prepare case
Case write-ups
Farris et al. Chapter 7
D&S Chapter 8
Supplementary Readings:
HBR Article: How Do You Know When the
Price is Right?
HBR Article: Pricing and the Psychology of
Consumption
HBR Article: Pricing Policies for New
Products

Prepare case
Case write-ups
Farris et al. Chapter 5
HBR Article: Getting the Most Out of All
Your Customers
Supplementary Readings:
HBR-Article: Marketing When Customer
Equity Matters
HBR-Article: Customer-Centered Brand
Management
From Customer Equity to Market
Capitalization
HBR-Article: Building Loyalty in Business
Markets
HBR-Article: The Mismanagement of
Customer Loyalty

Appendix: Discussion Questions for Cases



Case 1: Starbucks: Delivering Customer Service

1. What factors accounted for the extraordinary success of Starbucks in the early 1990s? What
was so compelling about the Starbucks value proposition? What brand image did Starbucks
develop during this period?

2. Why have Starbucks customer satisfaction scores declined? Has the companys service
declined, or is it simply measuring satisfaction the wrong way?

3. How does the Starbucks of 2002 differ from the Starbucks of 1992?

4. Describe the ideal Starbucks customer from a profitability standpoint. What would it take to
ensure that this customer is highly satisfied? How valuable is a highly satisfied customer to
Starbucks?

5. Should Starbucks make the $40m investment in labor in the stores?

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Case 2: Nestle Refrigerated Foods (A)



1. Using the BASES model described in Exhibit 9, forecast the estimated demand (trial and
repeat) for the two Pizza options under consideration: Pizza and Topping and Pizza only.
Most of the data needed for the forecasting exercise is available in Exhibit 21 and pages 15
& 34.
Helpful hints:
In Exhibit 21, there is a big difference between Contadina users and non-users on the top two box
scores. This will obviously affect the forecast depending on what proportions are used for Contadina
users versus non-users in the population.
On page 14 (2nd to last paragraph), Nestles marketing research department cautions us that parent
brand usage could vary from 5% to 25%. It would be worthwhile to judge the sensitivity of the
forecast under 5%, 15%, and 25% parent brand penetration scenarios.
2. What can one learn from Exhibits 13, 14 & 15.
3. How does the pizza concept test data (Exhibits 19, 20 & 21) compare to the pasta concept
test data (Exhibit 6).
4. What is your reading of Exhibits 23 and 24 (include Exhibit 18 if you wish)?
5. In general, how do you compare the pizza opportunity to the pasta opportunity? What are
the similarities? Differences?
6. Why was the pasta product so successful?
7. How do you like Nestles new product development process? For pasta? For pizza?
8. Would you launch the pizza?

Case 3: Hubspot

1. Do you agree with HubSpot that the "rules of marketing" have changed? If so, how? Is
inbound marketing the answer? Why or why not?
2. Is HubSpot finding and serving the right set of customers? Given its position as a start-up
company, should it widen its focus to serve any customer that comes its way? Or narrow
their target, by focusing exclusively on either Owner Ollies or Marketer Marys? Or by
focusing exclusively on either B2B or B2C customers?
3. HubSpot has begun to differentiate its products as it has learned more about its customers.
Should it do more? Should its pricing strategy change too? Does the software-as-a-service
(SaaS) pricing model work for both Marketer Marys and Owner Ollies? Should HubSpot try
to immediately capture more value for either of these customers?
4. Are Halligan and Shah being too stubborn by not doing any outbound marketing? Or should
they continue to practice what they preach by focusing on inbound marketing alone?
5. Halligan and Shah want HubSpot to be to marketing, what salesforce.com is to sales. What
would your plan of action be to make this happen? Why would you take these actions?
What keeps you up at night about your plan?

Case 4: Mountain Man Brewing

1. What is Chris considering doing and what factors will he have to align to be successful?
2. What goal should MMBC (Chris) have?
3. What has made MMBC successful? What distinguishes it from competitors?
4. What about these factors enabled MMBC to create such a strong BRAND?
5. What has caused MMBCs decline in spite of its strong brand?
6. Should MMBC introduce a light beer?
7. Is Mountain Man Light feasible for MMBC?
8. Should MMBC launch Mountain Man Light?

Case 5: BBVA:

1. What is the role of offline and online advertising in acquiring checking account customers for

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the bank?
2. In 2010, the bank allocated $1.22 million or 21% of the total ad budget to online advertising
for acquiring checking account customers (see Tables B and C), while allocating the rest of
the budget to offline marketing efforts for this account. However, only 5% of the new
checking account customers came from the online channel, while offline branches
accounted for 80% of the new checking accounts (page 3). Is the 2010 advertising budget
allocation between offline and online media appropriate?
3. Why did BBVA sign multiyear sponsorship deals with NBA and ESPN? Do you agree with this
decision?
4. What are the various steps in the online acquisition process and how can the bank improve
this process?
5. What is the effective acquisition cost and lifetime value of customers acquired through the
online channel?
6. What is the role of display and search advertising in acquiring new checking account
customers? Is the 2010 advertising budget allocation between display and search
appropriate?
7. Is the budget allocation among various search engines appropriate?
8. Why is the bank spending money across various display ad networks? Which ad networks
are working better than others and would you change the budget allocation among them?

Case 6: Reynolds Metals Company

1. Compare and contrast MDF with off-invoice deals. How are the objectives of the two
different?
2. Does MDF offer a more effective trade promotion alternative to off-invoice? Why and Why
not?
3. If Reynolds were to fully implement MDF, how should Rosser go about obtaining retailer
support? Is retailer support even necessary?
4. How should Rosser manage the transition of trade deal responsibility from the marketing
department to the sales department?

Case 7: Natureview Farm

1. What is Natureviews current position in the natural foods channel? What is their marketing
strategy?
2. How do the three growth options under consideration compare financially to terms of yearly
revenue, gross margin, required investment, and profit potential?
3. What are the strategic advantages and risks of each option? What channel management and
conflict issues are involved?
4. What action should the company pursue? How can they mitigate the risks associated with
the chosen strategy?

Case 8: Atlantic Computer: A Bundle of Pricing Options

1. What price should Jowers charge DayTraderJournal.Com for the Atlantic bundle (i.e., Tromm
Servers + PESA software tool)?
2. Think broadly about the top-line revenue implications from each of the four alternative
pricing strategies. Approximately how much money over the next three years will be left on
the table if the firm were to give away the software tool for free (i.e., status quo pricing)
versus utilizing one of the other pricing approaches?
3. How is Matzer likely to react to your recommendations?
4. How is Cadenas sales force likely to react to your recommendations?
5. What can Jowers recommend to get Cadenas hardware-oriented sales force to understand
and sell the value of the PESA software effectively?

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6. How are customers in your target market likely to react to your recommended pricing
strategy? What response can be provided to overcome any objections?
7. How is Ontario Zinks senior management team likely to react to the Atlantic Bundle?

Case 9: CMR Enterprises

1. What is CMRs growth strategy? How does the Blackstone Homes account fit into that
strategy?
2. How is CMRs strategy put into action? What changes are made to how the company selects
customers, manages customer relationships, monitors the health of customer relationships,
and measures the results? What are the impacts of those changes on the health and
performance of the companys relationships with customers? On the Signature relationship?
3. How much profit is CMR making from the commercial business versus the residential
business? From the Blackstone account?
4. What should Marcus do now?