PRODUCT MANAGEMENT Course Syllabus, Spring 2007 Revised March 28, The Fuqua School of Business Phone:

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1 PRODUCT MANAGEMENT Course Syllabus, Spring 2007 Revised March 28, 2007 Marketing 460 Professor Carl F. Mela Term 4, Spring 2007 A325 Fuqua The Fuqua School of Business Phone: Duke University Office hours: Anytime, by appointment 1. Course Background and Objectives Career Focus Product and brand management are at the heart of many organizations' survival. Brand and product managers "run" a small business and, as such, have profit and loss responsibility for brands. Yet few courses in the curriculum are intended to walk students through the steps necessary to achieve this objective. Accordingly, the goal of this course is to prepare such managers to build brand assets and create an enduring advantage for their brands in the marketplace. The focus of the course will be highly applied with many cases and guest speakers that emphasize the actual management of products and brands. Brand management has traditionally been associated with consumer products and services markets, though there is increasing interest in branding by firms who operate in industrial markets. The brand manager's key focus is developing and building the brand itself, which may extend across multiple product lines or categories. Product management is typically used to describe a wide range of activities centered around a product or product line. Product management is often the preferred organizational approach in high technology and industrial markets, and in consumer products companies who favor a product category focus. Finally, the course exposes students to the contemporary challenges faced by a broad variety of firms in creating and maintaining brand equity. The settings of the cases and exercises used in the course are quite diverse in terms of the sizes of the organizations involved and the types of markets they serve. Hence, the course is relevant to students whose interests are in general management and consulting as well as those who expect to work directly in brand or product management. Objectives By the end of this course, you should be able to: better understand the issues pertaining to the execution of brand strategies, formulate strategies for building, leveraging, and defending brands, manage integrated campaigns to influence customer and trade behavior,

2 work with data of the types that are typically available to brand and product managers, and draft a marketing plan that reflects these objectives. Thus, you will have acquired skills that will help you to manage your products and brands to achieve a sustainable competitive advantage, command greater price premiums, and efficiently allocate your marketing resources. 2. Class Organization Product Management is a marketing elective that is designed to improve student s marketing skills and understanding of specific marketing topics, as well as big picture issues of how various aspects of marketing fit together, all from a brand equity perspective. Accordingly, Product Management is organized around the product and brand management decisions that must be made to build and manage brand equity. Specifically, the course is organized in three sections: a) describing the brand and product management system, b) managing a brand and c) extending brand management across products and geographies. In the first section, we overview the course and discuss i) how to organize the firm to manage the brand asset and ii) the concept of brands and a framework to provide insight into how brands are built. In the second section, we articulate the product strategies that can lead to enduring brand advantage. In the last section, we look at marketing decisions that extend beyond the core brand and market. Each section of the course employs an amalgam of cases, lecture, article discussions, videos, and guest speakers in order to lend perspective to the brand management problem. The frequent use of guest speakers, typically drawn from the area of the cases they will attend, will help you to understand the implementation issues associated with managing a brand and ensure that the discussions reflect the most contemporaneous management practices. 3. Grading and Course Requirements The following table summarizes how your grades will be determined. The subsequent discussion elaborates upon each of these requirements. Grading Element Length Due Date Weight - Procter and Gamble 3 pages March 30 10% Group Pharmasim Marketing Plan - Situation Analysis & Objectives - Marketing Program & Financials - Executive Summary, Contingencies & "Post-mortem" 4 pages 4 pages 4 pages April 6 April 20 April 27 35% Total Class Participation 15% Final Exam TBA 40%

3 Please note that final grades will approximately follow the distribution recommended by Fuqua (30% SP, 45%HP, and 25% P and below). The length of the assignment refers to double spaced, 1" margin, 11 or 12 point font. Group Write-up(s) One brief case write-up is required (Procter and Gamble). The objective of this assignment is to provide more detailed feedback on your analyses than you may receive in class. Details for this assignment can be obtained on the course web site. PHARMASIM & Marketing Plan As many of you will have to write one, an extremely important part of this class is the marketing plan. Given the short duration of the term, it is infeasible to request you make contact with an actual firm, find a product line of interest, and draft a marketing plan. Accordingly, we use a computer simulation of a business to serve as a foundation for the marketing plan. However, this assignment has a corollary purpose; to give you increased exposure to running a business. Thus, 5% of the PHARMASIM grade will be predicated on your performance and 30% will be based on the marketing plan (for total of 35%). Note that these two factors are not independent; strong marketing plans lead to strong performance. The PharmaSim manual is of moderate length. Please begin reading it sufficiently early such that you are not overwhelmed when the assignment begins. The Marketing Plan assignment can be accessed from the course website. Important: For more tips on PharmaSim, please visit the course web site. Final Exam The final exam will be based on a take-home case analysis. You will receive the case in the last class and then be given questions about the case during the time scheduled for the final exam. Details regarding the final exam will be distributed in class. Class Participation Case-based learning requires class participation from every student. Participation and discussion are imperative to engender a collaborative learning environment in class. Without that participation, the learning experience is significantly diminished (to ensure that participation is widespread, and that all students have the opportunity to participate, students may randomly be selected to commence the case discussion in each class). In addition, participation also enables you to develop the skill to present and defend your ideas as well as to see contrasting points of view. Those skills can prove invaluable in your forthcoming careers. Further, when guest lecturers are present, their reactions to your comments will provide practical input to your ideas from someone who has to broach similar issues in a daily fashion. These participation points are reflected in the grading scheme.

4 Last, class participation will include some brief exercises that will not be graded per se, but will help set the frame for the class. These include the following: Assignment Due Date Private Label Exercise March 27 IRI Exercise April 13 Brand Elements Exercise April 17 Brand Personality Exercise April 24 These exercises are detailed on the web site, as are case preparation questions. Honor Code The pedagogical value of the assignments is compromised when outside sources are consulted. In addition, limiting the need to consult outside sources a) saves students time and b) levels the playing field (students do not all have access to the same resources). Accordingly, it is expected that all your work is original and done without consulting others (except the TAs or myself for individual assignments, and the TAs, myself and your group for the group assignments). If you have any uncertainty regarding what is appropriate and what is not, please consult me. Course Material Course Pack The course pack contains the cases to be discussed in this course as well as some ancillary readings. Most of these ancillary readings are on e-reserve. For your convenience, I have provided links to these e-reserve readings on the web-site. See the web site to view the entire contents of the course pack. Required Texts 1. Keller, Kevin Lane (2003), Strategic Brand Management, Second Edition, Upper Saddle River, NJ: Prentice Hall. 2. Deighan, Michael, Thomas Kinnear and Stuart James (2007), PharmaSim: A Brand Management Simulation, Charlottesville, VA: Interpretive Software, Inc. The two texts can be bundled at a lower cost using ISBN The simulation manual and software are not available from the bookstore and must be ordered on-line with the following link using the coupon you receive in the bundle ( The direct distribution is intended to reduce costs to students. Should you prefer to order these items separately, you can order the simulation from the Interpretive website and the text from any major book retailer.

5 Course Schedule Class Topic Speakers Cases Assignments (*Recommended; **Required) # indicates available on e-reserve Web links are on course web page Part 1 - The Brand Management System. The first part of this course overviews how firms organize to manage their brand assets, including the brand management system and the marketing plan. March 20 March 23 March 27 March 28 1:30 3:00 March 30 Introduction to Brand and Product Management-I Marketing Plan, Pharmasim Building Brands Traditional Brand Management Theresa Silver, Associate Brand Manager; Bill Curtis, Assistant Brand Manager, Procter and Gamble Samsung Electronics Company: Global Marketing Operations Optional PharmaSim Tutorial, Computer Lab Procter and Gamble (A) Strategic Brand Management (SBM), Chapter 1 SBM Chapter 10, pp. 495, * World s Most Valuable Brands* (click on web link) Move Over Coke* (click on web link) Lehmann and Winer pp , 49-51**# Pharmasim Manual pp (79-91 Recommended)** SBM Chapter 2 pp , **, * SBM Chapter 3 pp ** Samsung Electronics Company: Global Marketing Operations** (distributed in class on 3/20) Ad Age Marketer of the Year* (click on Web link) Lehmann and Winer Chapter 1**# Procter and Gamble (A)** Procter and Gamble: Organization 2005 (A)** P&G Assignment Due** Part 2 - Building A Brand. The second section of the course covers the tactical elements involved in managing and developing a brand. The emphasis is different than the core, though, as the focus is on the use of the mix (4 P s) to develop brands (e.g., how does one develop strong, unique, and favorable brand associations via the marketing mix). March 27 Continued April 3 April 6 April 10 April 13 April 17 Product (Private Label) Product (Launch, Brand Valuation) Promotion (Event Marketing) Promotion (Advertising) Price, Promotion Measurement Product (Brand Elements), Place Donna Novitsky, Partner Mohr Davidow Ventures Jason Karmanos, VP, Assistant GM, Carolina Hurricanes Andrew Delbridge, Executive Director, McKinney-Silver JP Beauchamp, Executive VP, Information Resources, Inc. Todd Juenger, VP/GM TiVo Bayer AG (A) Marketing and the NHL Café De Colombia SBM Chapter 5 pp , ** The Power of Private Label*# Private Label Exercise** Bayer AG (A)** Marketing and the NHL** SBM Chapter 6 pp ** Situation Analysis Due** SBM Chapter 6 pp , The End of TV* (click on Web link) How T.V. Advertising Works*# Getting the Most out of Advertising and Promotion*# How Promotions Work*# SBM Chapter 6 pp ** IRI/TiVo Prereading** (click on web link) If Brands are Built Over Years, Why are They Managed over Quarters* (click on web link) IRI Exercise** SBM Chapter 4** SBM Chapter 5 pp , ** Café De Colombia ** Brand Elements Exercise**

6 Part 3 - Managing Across Brands and Geographies The last section of the class expands the concept of brand management across products and markets. In the first lecture of this section, I will outline branding issues associated with extending brands. After moving beyond branding issues for a single product, I will turn to Global Branding in the next section. Next, we will look at a very topical issue in branding today; brand communities. Finally, in the last session, we wrap up the course and discuss the results of the PHARMASIM brand management exercise. April 20 April 24 April 27 May 2 Managing Product Extensions & Hierarchies Global Branding Brand Communities PharmaSim Results and Wrapup Final Exam Black & Decker Video Mike Riegel, Director IBM Global Marketing Management Team Black & Decker er.com SBM Chapters 11-12** Black & Decker** Marketing Programs Due** SBM, Chapter 14 ** Subcultures and Consumption: An Ethnography of the New Bikers*# Neural Dissociations between Brand and Person Judgments*# Brand Personality Exercise** Summary Due** Acknowledgments I would like to express my appreciation to Rajeev Batra (Michigan), Douglas Bowman (Emory University), Aimee Drolet (UCLA) and Kevin Keller (Dartmouth) for supplying ideas, assistance and materials for the development of this syllabus. All mistakes and limitations are my sole responsibility. Additional comments and ideas are welcome.

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