Today’s Agenda
1.  Course Overview
2.  What are Cases?
3.  Preparing Cases
4.  Participating in a Case based class
5.  Writing up Cases
6.  B04/MGM A01 overview
Evaluation:
Individual Evaluation:
Class Discussion 20 %
Individual Case write-ups (10 cases) 30 %
Group Evaluation:
Group Case presentation (2 cases) 20 %
Group Project and Presentation 30 %
Working with Cases
•  Analysing a Case
•  Case Coach
Typical student comments
I like using cases because I have a chance to voice my opinions and hear others; most of all, the
discussions help me to sort through and understand what is going on in the case so I don’t miss
anything
The case discussions make events real –it is no longer just another name or act to be memorised, but
the discussion brings the events and individuals to life
I really like these discussions. One thing we do not learn very well in university is teamwork. College
is essentially an individual thing – I study alone; take tests alone. However discussion helps me
to learn from others
I love this class ! It moves quickly and its fun. Its tough not to be right all the time though.
I enjoy the case method because it forces me to think about issues and to take a stand in support of
my opinion. It helps me think about why I believe what I do. It is hard for me sometimes to
express my opinion in such a situation but I working on it here
What I like best are the broader insights I gain and the different perspectives that are represented
Case discussions are interesting and informative and are key to understanding marketing because
views differ and those differences mirror reality
Makes me think
Participation
Preparation: Reading the materials ahead of time, thinking about the
reading and how it is connected to other course materials
Speaking: Offering insights, observations, analysis, opinion; asking
questions; and responding to other students’ comments
Listening: to what others have to say, following the arguments and
remembering the points
Always bring copy of case, your individual report and your notes to class
Reflection
What Overall lessons do you take from this case?
How would you change your case analysis after today’s
class ?
Your self evaluation
Your goal for the next case
B04/A01
OVERVIEW
Definition of Marketing AMA, 1986
MARKETING IS . . . .
the process of planning and executing
the conception, pricing, promotion, and
distribution of ideas, goods, and services
to create exchanges that satisfy
individual and organizational objectives.
Utility and Marketing
From Production From Marketing
Form
Time
Place
Possession
Utility
Value that comes
from satisfying
human needs
The
Marketing
Mix
C
The Central Idea !
The Four Ps of the Marketing Mix
Product Place
Price Promotion
C
5th P
Summary of factors that affect an organization’s marketing
program
Prom
otion
R
egulatory forces
So
ci
al
fo
rc
es
Pr
od
uc
t
Environmental forces
Consumer
Marketing
program
Technological forces
Organization’s
marketing department
Discover consumer needs
Information about needs
Potential consumers: The market
Marketing’s first task: discovering consumer needs
Organization’s marketing department
Concepts
for
products
Discover consumer needs
Information about needs
Potential consumers: The market
Satisfy consumer needs
Find the right combination of:
•  Product
•  Price
•  Promotion
•  Place
Goods, services, ideas
Marketing’s second task: satisfying consumer needs
What Marketers Do
Look for
Opportunities
Consumer
Competition
Company
(Uncontrollable
3Cs)
Analyze
Opportunities
Segmenting
Targeting
Positioning
(STP)
Implement
Positioning
Product
Price
Promotion
Place
(Controllable 4Ps)
The Marketer’s tasks
4P’s
Product
Place
Price
Promotion
3 C’s
Customer
Competition
Company
STP
Segmentation
Targeting
Positioning
Buyer’s Black Box
Model of Consumer Behavior (CB)
Marketing and
Other Stimuli
Buyer’s Response
Product Choice
Brand Choice
Dealer Choice
Purchase
Timing
Purchase
Amount
Influences on Consumer Behavior
Consumer
Characteristics
Consumer
Decision
Processes
Consumer
Decisions
Product Choice
Brand Choice
Dealer Choice
Purchase Timing
Purchase Amount
Maslow’s Hierarchy of Needs
Higher level
Esteem Needs
(self-esteem, status)
Social Needs
(sense of belonging, love)

Safety Needs
(security, protection)
Physiological Needs
(hunger, thirst)
Self
Actualization
(Self-development)
Consumer Decision Process
Problem Recognition
Information Search
Alternative Evaluation
Purchase Decision
Postpurchase Behaviour
Consumer Behavior Questions
What do we need to know about consumers?
Occupants: Who constitutes the market?
Objects: What does the market buy?
Occasions: When does the market buy?
Outlets: Where does the market buy?
Organization: Who participates in the buying?
Objectives: Why does the market buy?
Operations: How does the market buy?
Step 1: What kinds of customers are there
(segmentation)?
Step 2: Target the customer segment that can deliver
to you the most value in as unique a way as possible.
Step 3: Choose a “position” that communicates your
unique and differentiable position.
Step 4: Evaluate market response and reposition.
Effective marketing is customer driven.
Key points for STP
Perceptual Map of Beer Market
(This slide shows only the products)
• 
Meister Brau
Stroh’s
• 
• 
• 
Beck’s
•  Heineken
Old Milwaukee
• 
Miller • 
Coors • 
Michelob • 
Miller
Lite
•  Coors
Light • 
Old
Milwaukee Light
• 
Budweiser
Perceptual Map of Beer Market cont’d
(This slide shows only the attributes)
Popular
with Men Heavy
Special
Occasions
Dining Out Premium
Popular
with
Women
Light
Pale Color
On a
Budget
Good Value
Blue Collar
Full Bodied
Premium Budget
Light
Heavy
Less Filling
Perceptual Map of Beer Market cont’d
(This slide shows both products & attributes)
Popular
with Men Heavy
Special
Occasions
Dining Out Premium
Popular
with
Women
Light
Pale Color
On a
Budget
Good Value
Blue Collar
Full Bodied
Premium Budget
Light
Heavy
• 
Meister Brau
Stroh’s
• 
• 
• 
Beck’s
•  Heineken
Old Milwaukee
• 
Miller • 
Coors • 
Michelob • 
Miller
Lite
•  Coors
Light • 
Old
Milwaukee Light
• 
Budweiser
Less Filling
Example Input Data for MDPREF
Vector Model
Input matrix has attributes on rows and objects on
columns
B1 B2 B3 B3 B4 B5 B6 B7 B8 New
Attractive 5.1 3.6 3.5 5.4 3.9 4.8 5.2 4.0 5.2 4.0
Light 6.0 3.5 5.0 3.9 3.3 5.3 5.0 2.5 5.5 2.5
Unreliable 3.4 4.1 4.5 2.1 4.5 2.7 4.5 3.7 2.5 3.8
Plain 1.5 4.1 2.9 2.3 4.5 2.7 3.5 4.3 2.2 5.2
Battery life 3.3 4.9 4.3 4.1 3.9 3.0 3.5 6.2 3.5 4.0
Screen 3.5 5.3 3.4 6.4 5.4 5.2 3.3 6.0 3.3 4.8
Keyboard 2.6 3.5 2.5 3.4 3.8 3.3 2.8 5.0 4.3 4.7
Roomy 5.5 4.3 5.4 3.1 3.4 3.3 4.7 3.5 4.3 4.2
Easy service 4.5 4.9 3.3 5.0 4.4 4.5 3.3 4.7 3.8 4.5
Expandability 5.5 4.3 5.4 3.1 3.4 3.3 4.7 3.5 4.3 4.2
Setup 5.6 3.5 5.6 5.4 2.5 4.2 5.2 3.3 5.8 2.5
Common 4.1 3.5 3.3 2.9 4.0 4.3 2.2 4.2 3.3 4.2
Value 3.5 4.8 4.4 3.6 3.6 2.7 3.2 4.7 3.5 4.0
Preference 7.4 3.4 4.8 6.6 4.4 7.4 7.1 3.8 6.9 3.3
BCG Matrix
BCG Matrix: 4 Contexts:
Industry Growth Rate (Y-axis) vs.
Relative Market Share (X- axis)
Stars (Hi, Hi)
Dogs (Lo, Lo)
Question Marks (Hi, Lo)
Cash Cows (Lo, Hi)
Question
Marks
Stars
Dogs Cash Cows
Relative Market Share
Industry G
row
th R
ate
Porter’s 5 Forces
Threat of
New
Entrants
Threat of
Substitutes
Buyer
Power Supplier Power
Industry
Competitors
Industry
Attractiveness
Strengths
Weaknesses
Opportunities
Threats
+
-
Internal External
SWOT
Break-even Analysis
To
ta
l
Re
ve
nu
e
an
d
Co
st

Units of Production
Break-Even Point
Profit Area
Total Fixed Costs
Total Variable Costs
Total Cost Curve
Total Revenue Curve
Loss Area
More 0
Higher
Breakeven Analysis
How much to produce to START making a profit !
Profit = Revenue – Cost
Price x Quantity Fixed Cost + Variable Cost
Unit Variable Cost x Quantity
Π = Q.P – FC – Q.VC
Breakeven => Π = 0
Q.P – FC – Q.VC = 0
Q(P-VC) = FC
Q=FC/(P-VC)
Q* = Fixed Cost Unit Price – Unit Variable Cost
Pricing
Company: Cost Plus Pricing
Profit Pricing
Competition: Competitive Parity Pricing
Customer: Value Based Pricing
0
3.45 c Variable Cost
27.3 c Value to User
What user would have to pay to
get equal benefits i.e perfect
substitute
Perceived Value
Some fraction of actual value to
user
Price
Producer Surplus
Consumer Surplus
SKIM
PENETRATION
Price Summary
Gains Losses
Subjective Value
K
J
L
Reference
point
Prospect theory
The PLC, marketing objectives, and marketing mix
Marketing
objective
Gain
Awareness
Stress
differentiation
Maintain brand
loyalty
Harvesting,
deletion
Competition None Growing Many Reduced
Product Usually one More versions Full product line Best sellers
Price Skimming or penetration Penetration, deal
Defend share,
profit Profit
Promotion Inform, educate Differentiate Differentiate, reminder Minimal
Place
(distribution) Limited More outlets Maximum outlets Fewer outlets
Stage of the product life cycle
Sa
le
s
re
ve
nu
e
or
p
ro
fi
t Introduction Growth Maturity Decline
+
0
–
Total industry
sales revenue
Total industry profit
Five categories and profiles of product adopters
Diffusion of Innovation
Origin: Rural Sociology – The way farmer adopted new agricultural
innovations
Certain characteristics of an innovation may serve to improve or
detract from it’s chances of adoption by consumers (and the
time frame over which adoption takes place). These are:
• It’s perceived complexity
• It’s compatibility in use with present behaviour patterns and
complementary products
• The ease with which it’s features (and especially it’s benefits)
can be observed and communicated
• The degree of risk – physical, financial and social – attached to
adoption of the innovation in preference to existing products or
procedures
• The extent to which the innovation can be tried on a limited
basis before being adopted on a large scale, permanent basis.
Distribution channel
Any set of firms or individuals who
participate in the flow of products from
producer to final user or consumer
Make the sale of products more efficient by
minimizing the number of sales contacts
Number of interactions without intermediary
H
o
u
s
e
h
o
l
d
s
4 x 4=16 interactions M
a
n
u
f
a
c
t
u
r
e
r
s
Number of interactions with intermediary
Retailer
4 + 4= 8
interactions
H
o
u
s
e
h
o
l
d
s
M
a
n
u
f
a
c
t
u
r
e
r
s
Short vs. long channels
Market
Product
Producer
Business users
Concentrated
More knowledge req.
Higher service needs
Larger orders
Perishable
Complex
Expensive
Has resources/
abilities
Broad line
Control important
Consumers
Dispersed
Less knowledge req.
Lower service needs
Smaller orders
Durable
Standardized
Inexpensive
Lacks resources/
abilities
Limited line
Control not important
Factors Short Channels Long Channels
Integrated marketing communications
Traditional:
Separate functions handled by experts in
separate departments.
Begin with organization’s products/services.
IMC:
All elements of promotional mix strategically
integrated.
All elements viewed from consumer perspective.
IMC strategy
Determine the optimal mix of options
based on:
Economic considerations
Target market
Effectiveness of brand building
IMC strategy (cont’d)
Focus on managing two dimensions
Consistency
Complementarity
Ideal communications program
Large number of communication options
Sharing same core meaning
Complementary advantages & disadvantages
Complementarity in IMC
Strengths inherent in one method
counterbalance the disadvantages of another
For example, TV advertising
Competitive clutter
Ad content and structure
Consumer involvement
Structure other aspects of promotional mix to
overcome these disadvantages
Retrieval cues on coupon, in store, on packaging
“I forget the name of the product, but the jingle on TV goes something like
‘Yadee-dum-dee-rahte-dum-dee-rah-dee-dum.’”
Push vs. pull promotional strategies
Manufacturer
Wholesaler
Retailer
Consumer
Flow of
promotion;
mainly
personal
selling
directed to
intermediaries
Flow of
demand
stimulation
Manufacturer
Wholesaler
Retailer
Consumer
Flow of
promotion;
mainly
advertising
directed to
consumers
Flow of
demand
stimulation
Push strategy Pull strategy
5 M’s of Advertising
Mission
• Sales Goals
• Adveritising
Objectives
Money
Factors to
Consider:
• Stage in PLC
• Market Share
and consumer
base
• Competition and
Clutter
• Advertising
Frequency
• Product
substitutability
Message
• Message
Generation
• Message
evaluation and
selection
• Message
execution
• Social
responsibility
review
Media
• Reach,
frequency,
impact
• Major media
types
• Specific media
vehicles
• Media timing
• Geographical
media allocation
Measurement
• Communication
impact
• Sales impact
Inform
Persuade
Remind
Desirability
Exclusiveness
Believability
Rational Positioning
Emotional Positioning
Share of expenditures
Share of voice
Share of mind and heart
Share of market
Style
Tone
Words
Format
Slice of Life
Lifestyle
Fantasy
Mood/Image
Musical
Personality Symbol
Technical expertise
Scientific Evidence
Testimonial Evidence
Creative strategy: Types of appeals
“Rational”
Problem-solution
Demonstration
Product comparison
Testimonial
Slice of life
“Emotional”
Humour
Sex
Image or mood
Fear
Cognitive Affective