Download MANAGEMENT 687: Marketing Strategy

MANAGEMENT 687: Marketing Strategy
Class Starting Date: October 28, 2015
Adjunct Professor:
Robert J Grant
Office:
Room 216
Meeting Time:
By appointment on weekends or Friday afternoon
Phone & E-mail:
713-899-9394; [email protected]
Course Objectives: Can a business survive the pitfalls that spell trouble or worse for such
established companies as Kodak, Baldwin Piano & Organ Company, and many of the
“dotcoms”? While challenges are inevitable, developing and adhering to a well-structured
marketing strategy will help avoid many of the pitfalls that can spell trouble – or the end -- for a
business. This course is designed to provide students a thorough understanding of what
marketing strategy is all about. In so doing one will come to understand why no less than Peter
Drucker called it one of the two the most important elements for a businesses’ success.
Students will be provided with a framework for developing a marketing strategy for any
business, whether in the B2C or B2B world, as well as for-profit and not-for-profit enterprises.
Teaching method: An array of case studies from a variety of industries and business situations
together with examples from today’s business literature will be used to illustrate the components
of a sound marketing strategy which will lay the foundation for long term success. Class
discussions will focus on the cases, reading materials and examples’ from the Professor’s
business experience. Students will also have the opportunity to work in class on identifying
marketing strategies for businesses in the news.
Class 1 Learning Objectives: Marketing Strategy overview: understanding the components of
marketing strategy and how they are linked together in a framework, illustrated by the Marketing
Strategy Pyramid. Develop an appreciation for the marketing strategy as one of the most
critically important elements of any business or organization and how it is designed to
“CCDVPT”. Stage I: how customer needs and product innovation serve as the foundation of any
successful marketing strategy. When and how the marketing strategy might change throughout
the product lifecycle.

Pre-Reading for class: “Marketing Strategy” Robert T. Davis, Stanford University.
“Debunking Myths about Customer Needs” By Lance Bettencourt.

Business Examples (copies supplied in class):
 Listerine (consumer health products) – A marketing strategy re-launch for a
100-year old business past the mature phase of its lifecycle.
 Wendy’s Set to Unseat Burger King (retail food) – A classic example of the
marketing strategy principles at work.
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Class 2 Learning Objectives: Stages II and III: from segmentation and targeting to differentiation
and competitive advantage; how it must all be linked together for the marketing strategy to
resonate in the marketplace. How differentiation alone does not yield a competitive advantage;
the product benefits must deliver incremental value to the customer to create a sustainable
competitive advantage. Leveraging one’s resources to create real benefits and drive the
competitive advantage.

Case Study: Trouble Brewing at Starbucks (specialty retailer) -- The intended
versus the unintended consequences of decision-making viewed through the
context of the marketing strategy. Identifying what resources Starbucks sought to
leverage to create value for the company and/or customer. Students will have an
opportunity to go beyond the case and evaluate recent company moves in the
context of the marketing strategy.

Business Example (copies supplied in class): Puffs Facial Tissue (household products) –
strategic ways of differentiating a business

Reading for class: “Marketing Success Through Differentiation” by Levitt and “The Great
Repeatable Business Model” by Zook and Allen
Class 3 Learning Objectives -- Marketing Strategy Stage IV: Understanding the value
proposition, the promise of value that is at the heart of the marketing strategy. How it is linked to
all the strategy elements and is backed by reason(s) to believe which emanate from the way
one leverages resources to create the competitive advantage. That will be followed by a
discussion of the three different types of a value proposition – is there one best approach?
Recognizing benefits that differentiate and create value versus benefits at parity.

Case Study: The Clorox Company: Leveraging Green for Growth (sustainable
businesses) -- The challenges involved in developing marketing strategies for
products designed around today’s megatrends of natural, organic and
sustainability, i.e., “green” products. Weighing the various means of assessing the
return for such non-traditional go-to-market business platforms.

Business Example Examples (copies supplied in class):
 Leading Seed Company (B2B in agriculture) -- quantifying the value proposition

Reading for class: “Customer Value Propositions in Business Markets” by Anderson,
Narus and Van Rossum and “Fundamentals of Global Strategy: Globalizing the Value
Proposition by Cornelis A. De Kluyver
Class 4 Learning Objectives -- Marketing Strategy Stage V: translating the value proposition into
product positioning. Understanding that the positioning statement is much more than a catchy
set of words. It must create a perception of value that is based in reality. The strategic versus
the tactical side of the 4 P’s and how they work best to support the value proposition.

Case Study: Pets.com (specialty retailer: pets stores) -- An examination of the
marketing strategy decisions which would spell success or failure for one of the
most well-known dotcom start-ups.

Business Example Examples (copies supplied in class):
 Boeing 747 stretch aircraft – product innovation or stop gap measure?
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
Readings for class: “The Seven Questions of Marketing Strategy”; Farris, Parry, et.al.
“Mapping Your Customer Positioning” by Richard A D’Aveni
Class 5 -- Learning Objectives: Marketing Strategy Stage V: the 4P’s versus the 4C’s.
Identifying the various means of measuring and evaluating the effectiveness of a marketing
strategy, from traditional market research to today’s social and digital media metrics.


Case Study: L’Oreal in China: Turning Around Cosmetic Brand Yue Sai (International
business) – Case involves the development of a marketing strategy, including value
proposition and marketing program / 4 P’s, for turning around a luxury cosmetic brand in
China. The case explores some of the challenges that even very successful
multinational firms like L’Oreal experience when doing business in a foreign country. It
also provides the opportunity to develop a marketing strategy for a business which has
emotional as well as functional benefits.

Business Example (copies supplied in class):
 Bank One (financial services) -- Translating the value proposition into a positioning
that is perceived as delivering real value.
Reading for class: “Three Questions You Need to Ask About Your Brand” by Kevin Lane
Keller; Sternthal; and Tybout
Class 6 – Final Project – Putting it All Together: In this final class students, working in teams,
will have the opportunity to apply the Marketing Strategy principles learned throughout the
course to a business of their choosing.

Independent Case Study -- Teams of 3 to 4 (maximum) students will develop the
marketing strategy, including the positioning and 4Ps, for a product, business or not-forprofit organization of their choosing, using all the elements of the marketing strategy.
Each team’s recommendation will include financial projections as well as metrics used to
measure success for the selected business.

Business Examples (copies supplied in class):
 Bank One (financial services) -- Translating the value proposition into a positioning
that is perceived as delivering real value.
 Chobani for Babies (natural food product)
Course Grade: Final grades will be determined by student’s performance on the following
requirements:
Class participation
Team write-ups and presentations of case studies (9% each)
Final marketing strategy presentation and recommendation
Total
24%
36%
40%
100%
Team activities will factor into over half the grade which is in keeping with how most marketing
organizations typically function. The balance (42%) of the grade will be based upon individual
performance, comprised of the quiz and class participation. Depending upon class size at least
three of the case study write-ups as well as the final presentation will be completed by teams.
Individual grades will be earned for the quiz and class participation. The largest part of one’s
grade will be comprised of the final presentation and accompanying write-up.
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All work turned in for a grade has the applicable Rice Honor Code and should have the
statement and your ID code included. All assignments are due in hard copy before the start
of each class. Please do not submit assignments electronically.
Any student with a disability requiring special accommodations in this course is encouraged to
contact me and I will make every effort to help. Additionally, I suggest such students contact
Disability Support Services in the Allen Center.
Cell Phone Classroom Policy -- It is the policy of the Jones School for students to turn their cell
phones off during class.
Laptop Classroom Policy – Students may utilize their laptop computers to take notes or refer to
cases they have downloaded. Otherwise they should be left in the closed position during class.