BUS 468

MARKETING STRATEGY
Poole College of Management - North Carolina State University
SPRING 2015
INSTRUCTOR:
OFFICE HOURS:
OFFICE LOCATION:
E-MAIL:
COURSE WEBSITE:
CLASS MEETS:

Michael A. Stanko, PhD

Thurs 11:30-12:15, before and after class and by appointment
Nelson 2331
mike_stanko@ncsu.edu
wolfware.ncsu.edu
Section 001: Nelson 1120 Tues, Thurs 8:30-9:45am
Section 002: Nelson 1120 Tues, Thurs 10:15-11:30am

Course Description and Objectives

This course is designed to develop the students ability to apply marketing skills to practical
business situations. Once this course is completed, students should be able to perform qualitative
and quantitative analysis of marketing strategies and develop, communicate and defend new
strategic recommendations.
Brands are assets that must be managed and grown in a competitive context. This course will
cover many of the tools brand managers have at their disposal in the stewardship of a brand.
Students will learn how to apply marketing principles through case analysis, simulation and in
class discussion. RELATIVELY LITTLE TIME WILL BE DEVOTED TO TRADITIONAL
LECTURING. The objective of this course is to teach students how to apply knowledge and
ability attained in earlier studies in developing, analyzing and communicating marketing
strategies. When students finish this course, they will have developed better decision-making
skills and refined their writing and presentation skills.
Critical thinking (the active, persistent, and careful consideration of a belief or form of
knowledge, the grounds that support it, and the conclusions that follow) is a focus of NC States
strategic plan, and will be developed extensively in this course through case analysis and
discussion. This involves analyzing and evaluating ones own thinking and that of others. It also
encourages informed creativity, such as bringing together existing ideas into new configurations
or developing entirely new possibilities to address a business concern.
Course Materials
1. Course packet:

Contains readings and cases. All students required to buy online at:
https://cb.hbsp.harvard.edu/cbmp/access/32024053
Students may choose to purchase a digital only copy or add a printed copy at their discretion.
2. Simulation:

MARKSTRAT Online. All students required to buy online at:

http://estore.stratxsimulations.com
Section 001 (8:30-9:45): Course ID: A45298
Section 002 (10:15-11:30): Course ID: A45299
NOTE: Do not purchase used versions of Markstrata new access code is needed to participate.
3. Lecture notes and other readings: Made available on moodle.

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Policies
Please adhere to professional behavior in class. Refrain from texting, chatting, reading the
newspaper, etc. Such behavior is disruptive and discourteous; students partaking in these
activities will be asked to leave the classroom.
Important announcements will be made in class and posted on course web page.
Late assignments will not be accepted
Any act of academic dishonesty will result in a 0.0 grade for the course and possible
suspension in accordance with the Universitys academic policy guidelines. For
purposes of this course, copying more than 3 words in a row without acknowledging the
source and using quotation marks constitutes plagiarism.
No extra credit assignments are available.
Final course grades are final. Changes will only be made if there is a calculation error.
Course Methodology
Case-Based Teaching: Case analyses will be the primary tool used to achieve the course objectives.
Several cases will be discussed in class to reinforce key marketing concepts. You are expected to
have read and analyzed assigned materials before coming to class. Ability to discuss your analysis of
assigned cases will be an important factor in your class participation grades. To be successful in this
course, you will need to be prepared before every case discussion.
Lectures and Discussion: Lectures and discussion of key marketing concepts will be used alongside
case analysis as indicated by the class schedule. Additionally, videos or other exercises will be used
to supplement lectures and case discussion. The lectures generally precede cases on related topics
case preparation will benefit from including material from lecture and readings.
Grading
There are four components of the final grade:
1. Class Participation (20%): Both attendance and active class participation in case
discussion are very important. This means that each student needs to be ready to discuss the
assigned material in every class period. Please note that class participation scores will be
based upon the quality and quantity of each student's input in class. Occasionally, the
instructor may conduct in-class exercises (e.g. quizzes), small group activities or optional
hand in write-ups that act as a component of each students overall participation grade.
Professionalism is a component of participation and includes:
Making an active, serious and positive contribution to class discussions;
Advising the course instructor in advance by e-mail if unable to attend class (due to illness,
interview, etc.).
2. Quizzes (15%): The first quiz deals with the fundamentals of case analysis, financial
analysis of business information and marketing metrics (10%). The second quiz tests
knowledge of the markstrat simulation before the start of the simulation (5%). Both quizzes
are scheduled early in the semester so that this material may be applied throughout the
semester. You will be allowed to use a one page (one sided) HAND WRITTEN note sheet
for each of these two quizzes.

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3. Case Briefs (45%): For 2 or 3 of the 4 case discussions (your choice), prepare a 2 page
(single spaced) writeup of the case, plus exhibits (e.g., financial analysis, SWOT analysis).
These case briefs must be submitted via moodle prior to the start of class on the first day of
the assigned cases discussion. See sample outline on p. 5. Students are expected to be
prepared to participate in all case discussions, whether or not they are submitting a case brief.
INDIVIDUAL WORK ONLY. If students submit 2 cases, each will be worth 22.5% of the
semester grade. If students submit 3 cases, each will be worth 15% of the semester grade.
4. MARKSTRAT Team Project: (20% - Breakdown Follows) In teams of about five, you
will compete against your classmates by designing and marketing products in a realistic
competitive situation. In a series of decisions, you will formulate and implement your marketing
strategy to meet your objectives for your products and make a profit. You will create a
marketing plan early in the game. At the end of the semester, each team will present an analysis
of their marketing strategy. This is done through a final written report. Details for the reports
will be discussed in class.
MarkStrat Components and Grading:
MarkStrat Performance (5%): Teams performance rank according to final stock price index.
Marketing Plan (5%): 3 pages maximum, plus exhibits, with cover page.
Final report (10%): 5 pages maximum, plus exhibits, with cover page.
DO NOT REPRODUCE OUTPUT FROM THE SIMULATION
Students should study the game manual to be effective participants in the game. Once the
game begins, decisions are due weekly. No late decisions will be accepted. Failure to submit a
team decision on time will result in default decisions being used for your team that period.
At the end of the game each student may complete a peer evaluation form for other students on
their team. Every student on a team will receive the same MARKSTRAT grade unless the peer
evaluations reveal that a particular student clearly deserves a higher or lower grade. A student
with blatant lack of participation may be fired from the team, resulting in a zero grade.
Your final course grade will be based on the following percentages:
Percent
95.00% and above
92.00 to 94.99%
90.00 to 91.99%
87.00 to 89.99%
83.00 to 86.99%
80.00 to 82.99%
77.00 to 79.99%
73.00 to 76.99%
70.00 to 72.99%
67.00 to 69.99%
63.00 to 66.99%
60.00 to 62.99%
Below 60.00%
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Grade
A+
A
AB+
B
BC+
C
CD+
D
DFAIL

BUS 468 COURSE OUTLINE

Date
8- Jan
13-Jan
15-Jan
20-Jan
22-Jan
27-Jan
29-Jan
3-Feb
5-Feb
10-Feb
12-Feb
17-Feb
19-Feb
24-Feb
26-Feb
3-March
5-March

Day
Thurs
Tues
Thurs
Tues
Thurs
Tues
Thurs
Tues
Thurs
Tues
Thurs
Tues
Thurs
Tues
Thurs
Tues
Thurs

10-March
12-March
17-March

Tues
Thurs
Tues

19-March
24-March
26-March
31-March
2-April
7-April
9-April
14-April

Thurs
Tues
Thurs
Tues
Thurs
Tues
Thurs
Tues

16-April
21-April
23-April

Thurs
Tues
Thurs

Class Topic
Assignment for this Class
Course Introduction
Syllabus
How to prepare a marketing case
Marketing Decision Making and Case Analysis
Marketing case cont.
Financial analysis for marketing
Financial Aspects of Marketing Management
Marketing Metrics
Marketing Metrics: Note for Marketing Managers
Quiz on case analysis, financial analysis for marketing, metrics
Case Discussion #1
Bagel Bakes
Case Discussion #1
Bagel Bakes
Understanding Market Opportunities
Discovering New Points of Differentiation
Segmentation, Targeting and Positioning Market Customization: Segmentation, Targeting and Positioning
Introduction to MarkStrat
Markstrat Participant Handbook pp. 1-30 (MS Groups Due)
WEATHER CANCELLATION
Markstrat #2
Markstrat Participant Handbook pp. 31-67
Markstrat #3 (+ Quiz)
(MS decision #1 )
WEATHER CANCELLATION
Providing for Customer Needs/ Branding What tech Managers Need to Know re Brands (MS decision #2 )
Building a Marketing Strategic Plan /
Is It Real? Can We Win? Is It Worth Doing?
International Marketing
SPRING BREAK
SPRING BREAK
New Products
Growing Green: Three Smart Paths to Developing Sustainable
Products
(MS decision #3 Due)
Meetings with each MarkStrat Group
MarkStrat Marketing Plan Due
Case Discussion #2
The Black & Decker Corp: Power Tools(MS decision #4 Due)
Case Discussion #2
The Black & Decker Corp: Power Tools
Pricing / Channels
Thinking twice about Price
(MS decision #5 Due)
SPRING HOLIDAY
Case Discussion #3
Virgin Mobile (MS decision #6 Due)
Case Discussion #3
Virgin Mobile
Marketing Communication/online
Can You Measure the ROI of Your Social Media Marketing?
marketing
Search Engine Optimization: Note for Marketing Managers
(MS decision #7 Due)
Interactive Promotion Exercise
Case Discussion #4
Natureview Farms
Case Discussion #4/Course Wrap up
Natureview Farms
Final MarkStrat Projects Due
Team Evaluations In Class

MarkStrat decisions (denoted MS) are due at 9am the day after the class indicated.

denotes readings on moodle

Please note that every effort will be made to cover the assigned topics on the scheduled days. However, some
modification can be expected based on class discussions, questions, etc.

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Business Case Analysis

The following outline may help organize your case brief submissions. Some aspects of this
outline may be emphasized more in certain cases, depending on the focus of a case. Generally, a
good guideline is to allocate half your space to your recommendations, to allow for the
development of an actionable plan.
I.

Problem Statement
What is the main problem? What is the objective? What do you want to accomplish?

II.

Strategic Situation Facing Management in the Case

Focus on the critical factors for decision making.

A. Analyze Customers and the Market
Buyer behavior; market segmentation, market size and potential.
What favorable opportunities does the market present?
B. Analyze the Competition
Identify strengths and weaknesses of current and potential competitors.
How might competitors react to any actions you take?
C. Analyze your Company in the Case
What are your strengths and weaknesses?
Who are your channel partners and collaborators (suppliers and buyers)?
What is your current marketing strategy, and is it working?
D. Analyze the Market Environment
Political, economic and technological trends.
Product market characteristics cost structure, product life cycle, channels.
III.

Strategic Alternatives Available to the Firm

What strategies might help you solve the problem?
What are the pros and cons of each alternative strategy?

IV.

Recommended Strategy
Which strategy is best?
How can you implement the strategy through your marketing mix activities?
What are the financial implications of your recommended strategies?
What implementation and control activities will help achieve success?

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Though each case brief should be prepared in a format similar to the one above (i.e., problem
statement, analysis, alternatives followed by recommendations) here are a few key questions for
each case. These are meant to highlight key themes in each case which should warrant attention
in preparation and will likely be discussed in class.
1. Bagel Bakes
Questions provided at the end of case writeup.
A well developed recommendation includes: 1) Recommended prices for each channel 2)
Other marketing mix suggestions (working with channel, packaging changes, promotion, etc.)
2. Black and Decker
1. What is the root cause of B&Ds 9% share vs Makitas 50% share (tradesman segment)?
2. Is B&Ds brand salvageable in this segment?
3. What explains B&Ds higher level of success in the Professional-Industrial segment given
that these are essentially identical products as those sold to the tradesman segment?
A well developed recommendation includes: 1) Branding recommendation 2)Full discussion of
Marketing mix recommendations. Changes to Product, which products to release, color, service,
warrantee; using the Channel; Pricing compared to competitors; Promotional mix how to reach
this segment effectively and efficiently. 3) Timeline and performance goals 4) Consideration of
management preference (and how to overcome if necessary)
3. Virgin Mobile
1. Given Virgin Mobiles target market (14 to 24-year olds), how should it structure its pricing?
The case lays out three pricing options. Which option would you choose and why? In designing
your pricing plan, be as specific as possible with respect to the various elements under
consideration (contracts, the size of any subsidies, hidden fees, average per-minute charges, etc.)
2. Will your pricing plan created satisfied or dissatisfied customers? Why? How confident are
you that the plan you have designed will be profitable? Provide evidence of financial viability of
your pricing strategy.
3. The cellular industry is notorious for high customer dissatisfaction. Despite the existence of
service contracts, the big carriers churn roughly 24% of their customers each year, so there is
very little loyalty in the market. What is the source of this dissatisfaction? How have pricing
variables (contracts, pricing buckets, off-peak hours, etc.) affected the consumer experience?
A well developed recommendation includes: 1) Pricing recommendations including all aspects
of this decision for the mobile market (cost per minute, handset subsidy, contracts, etc.). 2)
Approaches to improving customer retention 3) Other marketing mix recommendations

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4. Natureview Farm
1. How has Natureview succeeded in the natural foods channel?
2. How do the three options compare financially? How does the current venture capital situation
change the relative importance of financial outcomes in evaluating these options?
3. What are the strategic advantages and risks of each option? What channel management and
conflict issues are involved?
4. What action plan should the company pursue? What changes in the current marketing mix,
sales, brand, and channel partner arrangements do you recommend in order to implement
the action plan?
A well developed recommendation includes: 1) A selection of one or more new
product/channel options complete with performance goals and a timeline (especially considering
the resource constraints of this smaller sized company) 2) Consideration of how to preserve the
existing channel relationships if you choose to enter the supermarket channel 3) Longer term
recommendations for this brand
5. Bank of America Mobile Banking
1. What benefits does mobile banking provide to consumers? Why havent many consumers
adopted mobile banking yet?
2. What is BofAs motivation to offer mobile banking? What are the associated costs and risks?
3. Does this situation call for aggressiveness to speed up adoption of mobile banking or
deliberately slow rollout?
4. What are the costs and benefits of having customers migrate to online banking?
Note that it is possible to use the customer lifetime value formula from the virgin mobile case to
compare lifetime value for online banking vs. the control group. Assume a 10% cost of capital
and annual margins of $100 for the control group (transaction costs may be different for online
banking customers). Given that it is not clear that BofA faces different costs to acquire mobile
and non-mobile customers, it is reasonable to simplify the LTV formula by using 0 for
acquisition costs, and using the calculated LTVs as a comparative tool only. In this case, if a
student felt that customer acquisition costs would be $20 higher for mobile customers, then an
acquisition cost of $20 could be used for mobile customers compared to $0 for other customers.
A well developed recommendation includes: 1) A detailed response to the request to include
more functions in the mobile app. including timeline 2) Detailed promotional mix tactics for
online banking, with performance metrics 3) Social media tactics to generate app
downloads/usage with performance metrics

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