Marketing Strategy
466 61/62
Fall, 2007
Instructor: Tim Calkins Updated: 7/12/2007
Phone: (847) 467-3209
E-Mail:
Office: Jacobs 498
Course Description
The marketing strategy course is focused on helping you become strategic marketing leaders, so that you can create, gain support for and execute strategic marketing plans that will build strong, profitable and enduring brands and businesses.
The course builds on the material covered in Marketing 430 and other marketing classes; the course reinforces those learnings and introduces new concepts.
The course is certainly valuable for people who plan to go into marketing. It is also useful for people who are going into finance, strategy, operations and other functions. The course takes a broad view; every function is involved in marketing strategy.
The course is broken into five sections or modules.
Module A: Fundamentals. This section covers some marketing strategy basics, including why marketing strategy matters, customer advantage and strategic marketing plans. The section includes a review of positioning and differentiation.
Module B: New business strategy. In this section, we focus on strategies for new business creation, including strategies for established and emerging categories.
Module C: Established business strategy. This section focuses on strategies to grow established businesses, including margin strategies, core business growth strategies and new product strategies.
Module D: Defensive strategy. In this module, we look at defensive marketing. We review why defense is needed and how to develop strong defense plans.
Module E: Pulling it together. In the last part of the course we look integrating all the parts. This includes student business update presentations.
The class includes cases, readings, and a computer-simulation, Markstrat.
Marketing strategy is a challenging course. In particular, the Markstrat simulation requires a substantial time commitment. However, the class is a valuable learning experience; the material will help you analyze and understand businesses, develop and gain support for marketing plans and ultimately deliver strong business results.
Course Requirements
Teams
All of the class assignments are completed in teams. We will form teams early in the semester. Team size depends on class enrollment; we have to get to 10 or 15 teams for the simulation. Teams should form within a particular section.
As part of the evaluation process, group members grade each others participation. These grades play an important role in the determination of final grades. Weak team feedback can and generally will reduce a student’s grade by one full letter.
Class Participation (10% of class grade)
Class participation is critical to the success of the course, as the quality of the discussion is largely in your hands. Cold-calls are not uncommon. Please plan to attend all classes and to arrive ready for the case or discussion. In addition, please plan to stay for the entire class. I will do my best to start and end on time. In week 2 I’ll send around a seating chart.
Computers are not allowed to be used in class. Surfing seems to be an inevitable and unfortunate result, and it is distracting for everyone.
Markstrat-Team (50% of class grade)
Each team will be assigned a Markstrat company to manage. Your task will be to set objectives, develop strategies to achieve those objectives, and implement your strategies with appropriate tactical decisions over the course of the semester.
Teams develop three business updates during the semester. The first two are written and the third is a presentation to the class. The first two updates count for 10% of the class grade and the third update counts for 20% of the class grade.
Actual Markstrat results count for 10% of the class grade.
Case Analysis-Team (15% of class grade)
Each team will submit one case analysis. Most teams will work on the Marlboro case, with two teams presenting Marlboro and the rest completing a written analysis.
Two teams will present the Steinway case instead of working on the Marlboro case. Early in the semester I’ll determine which teams will present. The presentations are 10 minutes in length, and the write-ups are no more than four pages.
Final Assignment-Team (25% of class grade)
For the final assignment, students will develop a marketing plan for a company or organization of your choice. The paper should not exceed seven pages including exhibits, and should include the one page marketing plan summary discussed in class.
Course Administration
I am on campus most days. I am happy to meet to discuss the course, Markstrat, careers and life; just call or send an email to set up some time.
I will be using Blackboard to post announcement, class notes and other materials. Please check Blackboard regularly for updates.
The attached schedule shows the class plan, with topics, assignments and readings. The class schedule will almost certainly change during the semester due to pacing and guests. The latest schedule is always posted on Blackboard.
Required Readings
Larreche and Gatignon, MARKSTRAT Online Student Handbook (StratX 2003)
This is a required book; you can’t play the Markstrat simulation without it. So please purchase this book promptly. Please note that you are really purchasing the software license, so used books don’t generally work.
Case packet
I’ve pruned the case material down substantially over the years because the simulation takes a lot of time. As a result, completing the readings for each class is important.
Optional Readings
Tybout and Calkins, Kellogg on Branding (2005)
This is an excellent book that you really should acquire and read. Take that with a grain of salt, however, because I am, for obvious reasons, biased. That said, the book contains a number of great chapters. Two of them are in the case pack. The rest are worth a read, too.
Walker, Mullins, Boyd and Larreche, Marketing Strategy (5th edition, 2006).
This text provides a more academic review of the concepts we will discuss. Given the size of the case packet and other work in the course, however, I’ve made it optional reading.
Kellogg School of Management
Marketing Strategy
Fall, 2007
7/12/2007
Session Topics Assignments for this Class
1: 9/24 Introduction to Marketing Strategy Read: Syllabus
Course Overview
2: 9/27 Introduction to Markstrat Read: Markstrat Online Student Handbook
Read: Ten Common Markstrat Questions
Complete: Register for Markstrat Online
Submit: Team rosters
3: 10/1 Fundamentals Read: Brand Positioning
Read: Writing Great Marketing Plans
Optional reading: Text, chapter 7
Optional reading: KoB, chapters 14 and 15
MS decision 1 due 10/2, 11:30 PM
4: 10/4 Poland Spring case Prepare: Poland Spring case
5: 10/8 New Business Strategy - Established Read: Eager Sellers and Stony Buyers
Read: Market Driving Strategies
Optional reading: Text, chapter 8
Optional reading: KoB, chapter 4
MS decision 2 due 10/9, 11:30 PM
MS update 1 due 10/9, 11:30 PM
6: 10/11 No Class Session! Attend team meetings
7: 10/15 Carolina Lunker Sauce case Prepare: Carolina Lunker Sauce case
MS decision 3 due 10/16, 11:30 PM
8: 10/18 New Business Strategy - Emerging Read: First Mover Advantages
Read: Do you always….?
9: 10/22 Established Business Strategy - 1 Read: The Image and the Brand
MS decision 4 due 10/23, 11:30 PM
MS update 2 due 10/23, 11:30 PM
10: 10/25 Established Business Strategy - 2 Read: Extend Profits, Not Product Lines
Read: Brand Portfolio Strategy
Optional reading: Text, chapters 9 and 10
Optional reading: KoB, chapter 5
11: 10/29 Marlboro case Prepare: Marlboro case
Submit: Case analysis
MS decision 5 due 10/30, 11:30 PM
12: 11/1 Guest Speaker
13: 11/5 Barco case Prepare: Barco case
MS decision 6 due 11/6, 11:30 PM
14: 11/8 Defensive Strategy Read: Why Good Companies Go Bad
Read: Meeting the Challenge
15: 11/12 A.1. case Prepare: A.1. case
MS decision 7 due 11/13, 11:30 PM
16: 11/15 Guest Speaker
------Thanksgiving Break ------
17: 11/26 Steinway case Prepare: Steinway case
18: 11/29 Markstrat Presentations Prepare: Presentations
19: 12/3 Markstrat Presentations Prepare: Presentations
20: 12/6 Markstrat Debrief
Course Summary
Final assignment due 12/11, 11:30 PM
Kellogg School of Management
Marketing Strategy
Markstrat Assignments
Markstrat Management Update 1
Provide management with a marketing plan for your company, not to exceed 4 pages including exhibits. Plans should be clear, focused and convincing.
Updated should include: -Objectives: Your goals for the 7 periods, including profit
-Strategies: Key initiatives to deliver your objectives
-Plans: Plans to execute against your strategies
Markstrat Management Update 2
Provide senior management with an update on your progress to date, not to exceed 4 pages including exhibits. Plans should be clear, focused and convincing.
Updates should: -Link back to your initial objectives and strategies
-Highlight drivers of your results
-Lay out your plan going forward
Markstrat Management Update 3
Prepare a presentation for management to review your progress to date and plans going forward. Presentations should be 10 minutes in length. There will be additional time for questions.
Presentations should: -Link back to your objectives and strategies
-Highlight key drivers of your results
-Lay out your plan going forward
Kellogg School of Management
Marketing Strategy
Case Assignments and Questions
Poland Spring
Congratulations. You’ve just been hired to replace Mike Schott. What will you focus on first? Why?
Carolina Lunker Sauce
You have been hired to advise the Cobb family. Should they reduce the price of Carolina Lunker Sauce as requested? Why or why not?
Marlboro Case: Assignment
Answer the following question: Was the Marlboro strategy rolled out by PM a good idea? Why or why not?
Two teams will present this assignment; the rest will complete a 4 page paper, including exhibits. Excellent papers and presentations will put forth a clear position and provide strong support.
Barco Case
1. What has been Barco’s strategy? How well has it worked?
2. Why is Sony launching the 1270?
3. What should Barco do now?
A.1. Case
1. Should A.1. defend? Why or why not?
2. If so, what precisely should the A.1. team do?
Steinway Case
Is Steinway a good brand?
Should the new owners invest in the Boston brand? Why or why not?
Kellogg School of Management
Marketing Strategy
Group Evaluation Form
Please list below each member of your group. For each person, assign a grade (A, B, C, D, F) that reflects their overall contribution to the group’s output. Please consider the quality and quantity of their work. Responses are confidential, and can have a substantial impact on final class grades. Feel free to provide comments.
Your name:
Your team (industry and color):
Team Member Grade
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Comments:
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