Glossary of Marketing by Philip Kotler and Kevin Lane Keller

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  • 8/9/2019 Glossary of Marketing by Philip Kotler and Kevin Lane Keller

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    Case Map forKotler/Keller, Marketing Management

    (Prentice-Hall)

    This map was prepared by an experienced editor, not by a teaching professor. Faculty at HarvardBusiness School were not involved in analyzing the textbook or selecting the cases and articles.

    Every case map provides only a partial list of relevant items from HBS Publishing. To explore alternatives,or for more information on the cases listed below, visit:hbsp.harvard.edu

    PART I: UNDERSTANDING MARKETING MANAGEMENT

    Chapter 1: Defining Marketingfor the 21st Century Abst ractMarvel Enterprises, Inc.:AnitaElberse

    Product #: 505001Length: 20pTeaching Note: 505073

    The management team of Marvel Enterprises, known for its universe ofsuperhero characters that includes Spider-Man, the Hulk, and X-Men,

    must reevaluate its marketing strategy. In June 2004, only six yearsafter the company emerged from bankruptcy, Marvel has amassed amarket value of more than $2 billion. Originally known as a comic bookpublisher, the company now also has highly profitable toy, motionpicture, and consumer products licensing operations. However, doubtsabout Marvel's business model and its growth potential continue toexist. Had Marvel's winning streak been just a fluke? Was marvel'ssuccess dependent on a limited set of blockbuster characters, mostnotably Spider-Man, and should Marvel continue to capitalize on thosecharacters? Or was it time to seek growth in a larger set of lesserknown characters? In exploring growth opportunities, was it wise forMarvel to venture outside its current business model and move intomore capital-intensive activities? What marketing strategy would allowMarvel to sustain its success in the coming years? Includes colorexhibits.Learning Objective:To study a best-practice example of anintellectual property (entertainment) licensing model. Also, to examinesources of sustainability in industries characterized by products withrelatively short life cycles and explore how companies can build andmanage brand franchises.

    Hasbro Games: POX (A):DavidB. Godes,Elie OfekProduct #: 505046Length: 19pTeaching Note: 508112B case#: 505047

    Hasbro's newest toy is so unique it requires a unique launch strategy.Comparing traditional media (TV, print) with a non-traditional viralcampaign, Matt Collins must weigh the risks and benefits of doingthings the way they've always been done or blazing a new path in themarketing of toys.Learning Objective:To allow students to debate and appreciate whata "viral marketing" campaign is, when one might use it, and how to

    implement it. Also, to look at marketing, new-product launch,innovation, word of mouth, marketing to children, and advertising andpromotion.

    BizRate.com:Youngme MoonProduct #: 501024Length: 22pTeaching Note: 501026

    BizRate is a market research firm that collects point-of-purchasecustomer feedback data from retailing merchants. It then makes itsfindings available to consumers in the form of BizRate star ratings onits Web site. In 1999, the company also introduced several highlysuccessful e-commerce initiatives.

    http://hbsp.harvard.edu/http://hbsp.harvard.edu/http://hbsp.harvard.edu/http://hbsp.harvard.edu/cb/product/505001-PDF-ENGhttp://hbsp.harvard.edu/cb/product/505001-PDF-ENGhttp://cb.hbsp.harvard.edu/cb/web/search_results.seam?conversationId=1973290&N=4294962914http://cb.hbsp.harvard.edu/cb/web/search_results.seam?conversationId=1973290&N=4294962914http://cb.hbsp.harvard.edu/cb/web/search_results.seam?conversationId=1973290&N=4294962914http://hbsp.harvard.edu/cb/product/505046-PDF-ENGhttp://hbsp.harvard.edu/cb/product/505046-PDF-ENGhttp://cb.hbsp.harvard.edu/cb/web/search_results.seam?conversationId=1973546&N=4294961014http://cb.hbsp.harvard.edu/cb/web/search_results.seam?conversationId=1973546&N=4294961014http://cb.hbsp.harvard.edu/cb/web/search_results.seam?conversationId=1973546&N=4294961014http://cb.hbsp.harvard.edu/cb/web/search_results.seam?conversationId=1973546&N=4294961013http://hbsp.harvard.edu/cb/product/501024-PDF-ENGhttp://hbsp.harvard.edu/cb/product/501024-PDF-ENGhttp://cb.hbsp.harvard.edu/cb/web/search_results.seam?conversationId=1973672&N=4294962911http://cb.hbsp.harvard.edu/cb/web/search_results.seam?conversationId=1973672&N=4294962911http://cb.hbsp.harvard.edu/cb/web/search_results.seam?conversationId=1973672&N=4294962911http://hbsp.harvard.edu/cb/product/501024-PDF-ENGhttp://cb.hbsp.harvard.edu/cb/web/search_results.seam?conversationId=1973546&N=4294961013http://cb.hbsp.harvard.edu/cb/web/search_results.seam?conversationId=1973546&N=4294961014http://cb.hbsp.harvard.edu/cb/web/search_results.seam?conversationId=1973546&N=4294961014http://hbsp.harvard.edu/cb/product/505046-PDF-ENGhttp://cb.hbsp.harvard.edu/cb/web/search_results.seam?conversationId=1973290&N=4294962914http://cb.hbsp.harvard.edu/cb/web/search_results.seam?conversationId=1973290&N=4294962914http://hbsp.harvard.edu/cb/product/505001-PDF-ENGhttp://hbsp.harvard.edu/
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    Learning Objective:The case allows students to explore concepts ofconsumer trust and merchant credibility; to examine the roles aninformation intermediary can play in building customer relationships;

    and to consider the potential of database marketing in the neweconomy.Japan Net Bank: Japan's FirstInternet-Only Bank:Ali F.Farhoomand,Vincent Mak,Pauline NgProduct #: HKU178Length: 14pTeaching Note: HKU179

    Japan Net Bank (JNB), Japan's first Internet bank without physicalbranches, opened in October 2000. It attracted mainly young customerslooking for round-the-clock bank services with more competitive interestrates and transaction charges than traditional Japanese banks. Itsaccess channels included the mobile Internet service i-mode and fixed-line Internet. JNB relied on flexible, open computer systems and asmall, young workforce to minimize operation cost. Its shareholderswere all big companies from different industry sectors. By April 2001,JNB had 130,000 customers. But it needed to resolve a number ofissues before it could achieve long-term success.Learning Objective:To help students assess the competitiveness ofan Internet-only model of retail banking in Japan, study the businesspotential of alliances, and develop strategies for efficient cooperation.

    Also helps students understand that e-commerce ventures are prone tobursts in demand and need to develop solutions that could balanceinvestment in IT and the scalability of IT systems.

    Sendwine.com:Thomas R.Eisenmann,Charmaine Ess,AnnO'HaraProduct #: 800211Length: 23pTeaching Note: 801198

    How should Sendwine.com spend the venture capital money itattracted? Should the company consolidate its niche position in winegift-giving? Or should it aggressively expand into new gift-givingcategories under the "Send.com" name?Learning Objective:To familiarize students with the strategic andorganizational challenges facing an early-stage Internet venture,especially the challenge of building consumer trust and the decisionabout whether to diversify.

    Vertical Net:Das Narayandas

    Product #: 500041Length: 25pTeaching Note: 501060

    VerticalNet, a leading creator of targeted business-to-business vertical

    trade communities on the Internet, is trying to expand its model tofacilitate e-commerce as well. Mark Walsh, the CEO of VerticalNet, hasto decide how far he can extend the firm's business model withoutaffecting his current franchise negatively.Learning Objective:To illustrate the various business-to-business e-commerce models that exist today.

    Contextual Marketing: The RealBusiness of the Internet:DavidKenny,John F. MarshallProduct #: R00608Length: 7p

    The Internet has been a letdown for most companies, largely becausethe dominant model for Internet commerce, the destination Web site,doesn't suit the needs of those companies or their customers. Mostconsumer product companies don't provide enough value or dynamicinformation to induce customers to make the repeat visits--and disclosethe detailed information--that make such sites profitable. Instead oftrying to create destinations that people will come to, companies need

    to use the power and reach of the Internet to deliver tailored messagesand information to customers. Companies have to become what theauthors call "contextual marketers, reaching customers throughmarketing "mobilemediaries," such as smart cards, e-wallets, and barcode scanners.Subjects Covered:Brand management; Consumer marketing; Directmarketing; Internet marketing; Marketing strategy; New economy;Technological change

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    Chapter 2: DevelopingMarketing Strategies AndPlans Abstract

    Product Team Cialis: GettingReady to Market:Elie OfekProduct #: 505038Length: 27pTeaching Note: 505060

    Lilly and ICOS are preparing for the launch of a new drug, Cialis, tocompete against Viagra. To position against the incumbent firm Pfizer,which developed and markets Viagra, and other newcomers into theerectile dysfunction market, they must determine how best to segmentthe market and which target market to focus on. The marketing planshould take advantage of Cialis's medical profile. In particular, theymust pay special attention to the communication strategy to patients,physicians, and partners. The analysis, plan, and action should takeinto account extensive market research and recent competitivedevelopments. Includes color exhibits.Learning Objective:To determine the marketing strategy and plan foran entrant into a market dominated by an incumbent firm with anexisting reputation and customer base. The product profile of theentrant has notable attribute differences from existing alternatives. Thegoal is to understand how to translate superiority in productperformance into superior commercial success.

    Nintendo: The Launch of GameBoy Color:Robert J. Fisher,

    Adrian B. RyansProduct #: O901A13Length: 16pTeaching Note: 801a13

    Nintendo Co. Ltd. is a worldwide leader in the retail video gameindustry. In 1998, the color version of Nintendo Game Boy would belaunched simultaneously in North America and Europe and would beone of Nintendo's most important launches. The president of Nintendo,Canada must develop a marketing plan that would generate the mostprofit.Subjects Covered:Marketing management; Marketing mix; Marketingplanning; Marketing strategy; New product marketing

    Edmunds.com:Stephen P.Bradley,Christina AkersProduct #: 701025

    Length: 22p

    Edmunds began in 1966 as a publisher of new and used vehicle guidesand grew into one of the leading third-party automotive Web sites. Thiscase explores how Edmunds.com gained a competitive edge using

    strategic partnerships and alliances, as well as careful productpositioning and strategy implementation.Subjects Covered:Competitive advantage; Implementing strategy;Product positioning; Strategic alliances

    Matching Dell:Jan W. Rivkin,Michael E. PorterProduct #: 799158Length: 31pTeaching Note: 700084

    This case describes the evolution of the personal computer industry,Dell's Direct Model for computer manufacturing, marketing, anddistribution, and efforts by competitors to match its strategy. Studentsmust formulate strategic plans of action for Dell and its various rivals.Learning Objective:Permits an especially detailed examination ofimitation; illustrates how fit among activities and incompatibilitiesbetween competitive positions can pose particularly high barriers toimitation. To illustrate competitor analysis, the evolution of industrystructure, and relative cost analysis.

    Oscar Mayer: StrategicMarketing Planning:John A.Quelch,Dan Kotchen,RobertDraneProduct #: 597051Length: 14pTeaching Note: 597052

    The marketing director of Oscar Mayer faces a series of strategicmarketing options regarding established and new products, includingbudget and capacity allocation decisions.Learning Objective:To highlight the dynamics of marketing planningand budgeting, and to illustrate the need to consider inputs from otherfunctions in the planning process.

    Stick to the Core A fictional case. George Caldwell, cofounder of Advaark, a cutting-edge

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    --Or Go for More?:Thomas J.Waite,Gordon McCallum,JohnO. Whitney,Roland T. Rust,

    Chris ZookProduct #: R0202ALength: 8p

    ad agency, was listening hard to his biggest client, John McWilliams,CEO of GlobalBev. McWilliams ran a multibillion-dollar holding companyfor an assortment of food and beverage brands but was giving credit to

    Advaark for his latest product line. "We were completely blindsided bythis whole 'energy drink' craze," McWilliams was saying, delighted thatAdvaark had steered his company into the business. Then he enthused,"I'd love to get your thinking about our snack lines." "Oh, no," Georgethought. He hadn't realized that his partner, Ian Rafferty, had made thisforay into strategic consulting. Traditionally, their agency focused only onthe creative execution of ad campaigns. Still, Georgewas tempted.Should Advaark meet more of its customers' needs by expandingservices or stay focused on what it does best? Four commentatorsweigh in.Subjects Covered:Advertising; Business growth; Core competencies;Corporate strategy; Implementing strategy; Marketing strategy; Strategicplanning; Strategy formulation

    PART II: CAPTURING MARKETING INSIGHTS

    Chapter 3: GatheringInformation and Scanning theEnvironment Abst ractIntelliseek:Luc Wathieu,AllanFriedmanProduct #: 505061Length: 22pTeaching Note: 506071

    Intelliseek harvests, filters, and mines the content of messages postedby consumers online and on discussion boards and blogs. For anyspecified consumer product brand, Intelliseek measures the volume ofwork-of-mouth and its valence (proportion of positive and negativecomments) and produces organized sets of quotes in the manner of afocus group report. This "marketing intelligence" company has beensuccessful selling its reports to the car industry, but finds it difficult toachieve client retention in other areas. New initiatives are suggested: (1)to arrange data in problem-specific templates so that it is more"actionable" and (2) to develop industry benchmark metrics against

    which the metrics can be compared in a more informative manner. TheCEO of the company believes that the key to success is a streamlined,standardized approach to the metrics developed for client brands. TheCMO believes that Intelliseek should go much further to capitalize on theopportunity to understand customers emerging from what he calls"consumer-generated media."Learning Objective:To understand the ingredients necessary toproduce a useful understanding of customers. Also, to explore thepotential and limits of monitoring and measuring word-of-mouth

    Agilent Technologies:JeffSaperstein, Camilla Burg,

    Anamika GhoshProduct #: 904A04

    Length: 29pTeaching Note: 804a04

    Agilent Technologies was spun off from Hewlett-Packard (HP) in aneffort to establish a new brand in the high-tech industry. The seniordirector of global brand management was reflecting on the company'schallenges in focusing its worldwide marketing effort on the multiple

    business sectors. Agilent was intended to establish itself as a separatecompany from HP while still continuing in the HP tradition of excellentcustomer service and reliability. Now, with smaller advertising andmarketing budgets, downsizing of the company, fierce competitivepricing and service, and an evolution from within Agilent Technologies toprovide more service and knowledgeSubjects Covered:Brand management; Change management;Computers; Consumer marketing; Marketing information systems;

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    Marketing management; SalesGlobal Climate Change and BP:Forest Reinhardt,Mikell Hyman

    Product #: 708026Length: 35p

    BP Amoco is the world's third-largest oil firm. Its CEO, Sir John Browne,broke with industry colleagues in 1997 when he publicly declared that

    global climate change was a serious problem and pledged BP to play asignificant role in the search for solutions.Learning Objective:To understand the effects of a significant publicgood issue on corporate strategy and operations

    Ciba ConsumerPharmaceuticals Acutrim:Challenges and Opportunities inTodays Diet Industry:Nancy F.Koehn,Rebecca VoorheisProduct #: 795043Length: 20p

    Ciba Geigy has to decide what to do with its Acutrim appetitesuppressant in view of the changing market for such products.Subjects Covered:Business & government relations; Consumerbehavior; Corporate strategy; Marketing strategy

    Chapter 4: ConductingMarketing Research andForecasting Demand Abstract

    Sa Sa Cosmetics:David E. BellProduct #: 502085Length: 31pTeaching Note: 503027

    Sa Sa Cosmetics has had spectacular success as a low-price retailer ofbranded cosmetics. But recently, growth has slackened. What are thecauses? This case describes recent strategic initiatives and providesmarket research data to aid the students in diagnosis.Learning Objective:To enable students to examine strategy andanalyze market research data. Includes color exhibits.

    Juice Guys (A)Product #: 800122Length: 27pTeaching Note: 804155

    Asks, who are the customers for a new beverage product, what are theirdesires as customers for this product, and what are their desires whenordering this product from a local specialty store location?Learning Objective:To help teach students learn how to gather andanalyze customer interview data.

    Talbots: A Classic:V. KasturiRangan,Marie BellProduct #: 500082Length: 23pTeaching Note: 502060

    Talbots has recently recovered from a disastrous 1997 that sawearnings fall from $1.91 per share to $0.18 per share after the companytried to attract a younger customer segment. This case traces why the$1 billion women's clothing retailer decided to attract younger customers,what went wrong, and the actions taken to recover. By the end of 1999,the company has reestablished itself and faces several growthopportunities and must decide on the best course of action.Learning Objective:To illustrate the challenges of repositioning a storeconcept.

    Omnitel Pronto Italia:Rajiv Lal,Carin-Isabel Knoop,Suma RajuProduct #: 501002Length: 24pTeaching Note: 501075

    Describes the situation faced by Omnitel soon after launching its mobiletelecommunication services in Italy in December 1995. Omnitel has todecide whether to attack a new segment with a new service plan toimprove on past performance.Learning Objective:To demonstrate how marketing helps create valueby developing a product that satisfies the needs of the customer.

    Appropriate for a first-year marketing course.The Coop: Market Research:Ruth Bolton,Youngme MoonProduct #: 599113Length: 14p

    Daryl Buckmeister, CEO of The Chicken Coop, must decide whether toinvest in market research, how much money to spend, and whichprograms to fund.Learning Objective:To foster discussion of the principles underlyingdecisions about market research.

    Optical Distortion, Inc. (A):DarrelG. Clarke,Randall E. Wise

    Classic case about a startup offering contact lenses for chickens in theegg production industry. The marketing vice president must make

    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    Product #: 575072Length: 10pTeaching Note: 577161

    certain decisions to complete his marketing plan.Subjects Covered:Entrepreneurship; Marketing strategy; Pricingstrategy; Product introduction; Sales promotions

    Four Steps to Forecast TotalMarket Demand:William P.BarnettProduct #: 88401Length: 7p

    Forecasting total market demand can be crucial to creating a smartmarketing strategy. Some companies--and even whole industries--havelearned the hard way that a product's historical demand curve doesn'tnecessarily predict future demand. An accurate total market demandforecast can yield clues about future product performance. Here are thefour steps to creating one: 1) define the market, 2) divide total industrydemand into segments, 3) find out what drives demand in each segmentand project how those drivers might change, and 4) assess the risks tothe forecast and decide which assumptions are most critical to success.Just going through this process can help managers better understandthe real world in which they operate.Subjects Covered:Corporate strategy; Demand analysis; Economicanalysis; Forecasting; Industry analysis; Market analysis; Marketsegmentation

    PART III: CONNECTING WITH CUSTOMERS

    Chapter 5: Creating CustomerValue, Satisfaction , andLoyalty Abstract

    Rosewood Hotels and Resorts:Branding to Increase CustomerProfitability and Lifetime Value(HBSP Brief Case):Chekitan S.Dev,Laure Mougeot StroockProduct #: 2087Length: 13pTeaching Note: 2088

    Rosewood Hotels & Resorts, a small luxury private hotel managementfirm running a collection of 12 individually branded hotels and resorts inmultiple countries, was wondering how to foster customer retention andloyalty and capture the maximum value from its 115,000 guests.Rosewood had always allowed each hotel to stand as its own individualbrand, with the Rosewood name presented as a muted sub-brand, if atall. Now Rosewood's new leadership was contemplating whether thefirm should significantly increase the prominence of the corporateidentity, making Rosewood a corporate brand. The central focus is a

    quantitative assignment that asks students to calculate how customerlifetime value would be affected by a shift from individual branding tocorporate branding.Learning Objective:To understand the concept of customer lifetimevalue (CLTV) and the importance of maximizing a customer's lifetimevalue for the firm; learn the components of customer lifetime value andhow each component can be estimated; calculate customer lifetimevalue based on a combination of financial and non-financial data; andexplore risks and opportunities associated with corporate branding vs.the branding of individual products.

    Nectar: Making Loyalty Pay:John DeightonProduct #: 505031

    Length: 15pTeaching Note: 506048

    Loyalty Management UK (LMUK) manages British supermarket chainSainsbury's frequent-shopper card program, called Nectar. LMUK usesSainsbury's sponsorship as the magnet to attract other retailers into a

    profitable, multisponsor loyalty network. Examines the economics andconsumer behavior of retail loyalty programs and allows comparison ofthe brand-building power of a single-sponsor program to the promotionalpower of a multisponsor program. Describes the launch of the programand its first 18 months of growth, at the end of which it is the largestloyalty program in Britain. Illustrates the use of the program to delivercustomer-specific promotions to the 13.5 million-member database andhow the program evaluates the success or failure of specific promotions.

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    Learning Objective: To look at customer relationships withmanagement in retail organizations.

    Starbucks: Delivering Customer

    Service:

    Youngme Moon,JohnA. QuelchProduct #: 504016Length: 20pTeaching Note: 504089

    Starbucks, the dominant specialty-coffee brand in North America, must

    respond to recent market research indicating that the company is notmeeting customer expectations in terms of service. To increasecustomer satisfaction, the company is debating a plan that wouldincrease the amount of labor in the stores and theoretically increaseLearning Objective:To explore the various meanings of the concept of"service" in the context of a company that is evolving in terms of bothsize and the composition of its customer base and to look at the linksbetween "customer satisfaction" and a company's sales and profitability.

    Hilton HHonors Worldwide:Loyalty Wars:John Deighton,Stowe ShoemakerProduct #: 501010Length: 19pTeaching Note: 501059

    Hilton Hotels regards the frequent guest program as the industrys mostimportant marketing tool, directing marketing efforts at the heavy user.What should Hilton do when a competitor ups the ante?Learning Objective:To illustrate the economics of loyalty marketing.

    Alloy.com: Marketing toGeneration Y:John Deighton,GilMcWilliamsProduct #: 500048Length: 14pTeaching Note: 501043

    Alloy.com retails clothing to teens by catalog; it uses a Web site toconvert prospects and build community. As a result, the firm has theeconomics of a direct marketer and the market capitalization of anInternet start-up. Top management must decide whether to partner with

    AOL or continue with the current mix of customer acquisition methods.Learning Objective:Introduces to direct marketing economics and e-commerce principles.

    Citibank: Launching the CreditCard in Asia Pacific (A):V.Kasturi RanganProduct #: 595026Length: 25pTeaching Note: 595104

    Citibanks Asia Pacific Consumer Bank is considering launching a creditcard in the Asia Pacific region. Students must make a decision, and if ago decision is made, they must work out a comprehensive launch plan.The case introduces the concepts of acquisition cost and lifetime valueof a customer.Learning Objective:To expose students to services marketing and,

    more importantly, the notion of acquisition cost and lifetime value of acustomer. Also introduces students to international marketing issues.

    A Measure of Delight: ThePursuit of Quality at AT&TUniversal Card Services (A):RoyD. Shapiro,Michael D. Watkins,Susan RosegrantProduct #: 694047Length: 23pTeaching Note: 696073

    Dedicated to improving service quality and customer satisfaction, ChiefQuality Officer Rob Davis and his Quality Team have designed and putinto place an unusual measurement and compensation system based onmore than 100 performance measures monitored and communicateddaily.Learning Objective:Links performance measurement andcompensation policies to precepts of quality management.

    Why Satisfied Customers Defect:Thomas O. Jones,W. EarlSasser Jr.

    Product #: 95606Length: 12p

    Most managers rejoice if the majority of customers that respond tocustomer-satisfaction surveys say they are satisfied. But some of thosemanagers may have a big problem. When most customers are saying

    they are satisfied but not completely satisfied, they are saying that theyare unhappy with some aspect of the product or service. If they have theopportunity, they will defect. Companies that excel in satisfyingcustomers excel both in listening to customers and in interpreting whatcustomers with different levels of satisfaction are telling them.Learning Objective: To learn how companies can secure their mostprofitable customers' loyalty by keeping them consistently satisfied

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    Chapter 6: AnalyzingConsumer Markets Abstract

    The Springfield Nor'easters:

    Maximizing Revenues in theMinor Leagues (HBSP BriefCase):Frank V. Cespedes,Laura Winig,Christopher H.LovelockProduct #: 2510Length: 13pTeaching Note: 2511

    The marketing director of a new minor-league baseball team must

    design, conduct, and then interpret survey research to determine optimalticket pricing that will yield large attendance figures and contribute to theowner's goal of breaking even in the first year of play. The pricingassignment becomes more challenging when other variables likeconcessions revenue are considered. Students are asked to complete aquantitative assignment as part of case analysis, but they must grapplewith less quantifiable factors as well.Learning Objective:1. Discuss the design, implementation, andinterpretation of research surveys. 2. Learn to use quantitative analysismethods to develop a "scaled" pricing strategy. 3. Help students tounderstand the sometimes subtle relationships between pricing and thepossible impact on sales of auxiliary products.

    IKEA Invades America:Youngme MoonProduct #: 504094Length: 13pTeaching Note: 504095

    In 2002, the IKEA Group is the world's top furniture retailer, with 154stores worldwide. In the United States, IKEA operates 14 stores, all ofwhich have been enormously popular despite their self-servicerequirements. The company's goal is to have 50 stores in operation inthe United States by 2013. Explores various options for managing thisgrowth strategy.Learning Objective:To explore several nontraditional positioningstrategies, specifically, how a company was able to fashion together aunique--and heretofore unheard of--combination of benefits thatultimately ended up creating a distinctive brand experience for Americanconsumers. Also, to illustrate the advantages associated withestablishing a market position that is highly differentiated from thecompetition.

    Clust.com: Dream More and PayLess:Luc Wathieu

    Product #: 501047Length: 16p

    The company had to decide whether to focus on group-buying and gooddeals vs. consumer creation and exclusives.

    Learning Objective:Allows students to examine reverse marketing,economics of group buying, positioning, building a trusted brand,sustaining value in a competitive environment, consumerism as abusiness opportunity, consumer empowerment, Internet as a revolution,and incorporating the cultural context in the marketing plan.

    TiVo:Luc Wathieu,MichaelZoglioProduct #: 501038Length: 16pTeaching Note: 501057

    TiVo is a digital video recorder that allows viewers to watch what theywant, when they want to watch it. Fourteen months into the launch, salesare very disappointing. Brodie Keast, VP of marketing and sales, wantsto combine a catchy communications campaign, product bundling withsatellite television receivers, aggressive pricing, and sales support, inorder to boost demand for the new category. One important goal is toposition TiVo as a strong brand before the entry of big player Microsoft.TiVo is confronted with the difficulty of selling a new and complex

    electronics product that is meant to change consumer habits radically.The case can be used to explore issues such as marketing a radicallynew product; changing consumer habits, privacy, consumer control, andpermission-based advertising; relevance of targeting early adopters;creative communications strategy for a small first-mover; integratedmarketing plan; and television and the advertising industry.Learning Objective:Explores concepts such as launching a radicallynew product; changing consumer habits, privacy, consumer control, and

    http://hbsp.harvard.edu/cb/product/2510-PDF-ENGhttp://hbsp.harvard.edu/cb/product/2510-PDF-ENGhttp://hbsp.harvard.edu/cb/product/2510-PDF-ENGhttp://hbsp.harvard.edu/cb/product/2510-PDF-ENGhttp://hbsp.harvard.edu/cb/product/2510-PDF-ENGhttp://cb.hbsp.harvard.edu/cb/web/search_results.seam?conversationId=1977472&N=4294962411http://cb.hbsp.harvard.edu/cb/web/search_results.seam?conversationId=1977472&N=4294962411http://cb.hbsp.harvard.edu/cb/web/search_results.seam?conversationId=1977472&N=4294962543http://cb.hbsp.harvard.edu/cb/web/search_results.seam?conversationId=1977472&N=4294962410http://cb.hbsp.harvard.edu/cb/web/search_results.seam?conversationId=1977472&N=4294962410http://cb.hbsp.harvard.edu/cb/web/search_results.seam?conversationId=1977472&N=4294962410http://hbsp.harvard.edu/cb/product/504094-PDF-ENGhttp://hbsp.harvard.edu/cb/product/504094-PDF-ENGhttp://cb.hbsp.harvard.edu/cb/web/search_results.seam;jsessionid=3ACFF9313FA1F498930F5A97D20557B3?conversationId=1977611&N=4294962911http://hbsp.harvard.edu/cb/product/501047-PDF-ENGhttp://hbsp.harvard.edu/cb/product/501047-PDF-ENGhttp://hbsp.harvard.edu/cb/product/501047-PDF-ENGhttp://cb.hbsp.harvard.edu/cb/web/search_results.seam?conversationId=1977704&N=4294961854http://cb.hbsp.harvard.edu/cb/web/search_results.seam?conversationId=1977704&N=4294961854http://hbsp.harvard.edu/cb/product/501038-PDF-ENGhttp://hbsp.harvard.edu/cb/product/501038-PDF-ENGhttp://cb.hbsp.harvard.edu/cb/web/search_results.seam?conversationId=1977755&N=4294961854http://cb.hbsp.harvard.edu/cb/web/search_results.seam?conversationId=1977755&N=4294961854http://cb.hbsp.harvard.edu/cb/web/search_results.seam?conversationId=1977755&N=4294961054http://cb.hbsp.harvard.edu/cb/web/search_results.seam?conversationId=1977755&N=4294961054http://cb.hbsp.harvard.edu/cb/web/search_results.seam?conversationId=1977755&N=4294961054http://cb.hbsp.harvard.edu/cb/web/search_results.seam?conversationId=1977755&N=4294961054http://cb.hbsp.harvard.edu/cb/web/search_results.seam?conversationId=1977755&N=4294961854http://hbsp.harvard.edu/cb/product/501038-PDF-ENGhttp://cb.hbsp.harvard.edu/cb/web/search_results.seam?conversationId=1977704&N=4294961854http://hbsp.harvard.edu/cb/product/501047-PDF-ENGhttp://hbsp.harvard.edu/cb/product/501047-PDF-ENGhttp://cb.hbsp.harvard.edu/cb/web/search_results.seam;jsessionid=3ACFF9313FA1F498930F5A97D20557B3?conversationId=1977611&N=4294962911http://hbsp.harvard.edu/cb/product/504094-PDF-ENGhttp://cb.hbsp.harvard.edu/cb/web/search_results.seam?conversationId=1977472&N=4294962410http://cb.hbsp.harvard.edu/cb/web/search_results.seam?conversationId=1977472&N=4294962410http://cb.hbsp.harvard.edu/cb/web/search_results.seam?conversationId=1977472&N=4294962543http://cb.hbsp.harvard.edu/cb/web/search_results.seam?conversationId=1977472&N=4294962411http://hbsp.harvard.edu/cb/product/2510-PDF-ENGhttp://hbsp.harvard.edu/cb/product/2510-PDF-ENGhttp://hbsp.harvard.edu/cb/product/2510-PDF-ENGhttp://hbsp.harvard.edu/cb/product/2510-PDF-ENG
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    permission-based advertising. Allows students to ponder the relevanceof targeting early adopters and the elements of a successful; creativecommunications strategy for a small first-mover.

    Heineken N.V.: Global Brandingand Advertising:John A. QuelchProduct #: 596015Length: 13pTeaching Note: 598080

    Heineken managers are evaluating the results of the research projectsdesigned to identify the values of the Heineken brand and to translatethese into effective advertising messages.Subjects Covered:Advertising; Brands; Consumer behavior;International marketing; Market segmentation

    High-Performance Marketing: AnInterview with Nike's Phil Knight:Phil Knight,Geraldine E. WilliganProduct #: 92406Length: 10p

    Behind Nike's catchy slogans and flashy TV commercials is the vision offounder, chairman, and CEO Phil Knight. Knight has taken Nike from asmall-time distributor of Japanese track shoes to the top of the athleticshoe and apparel market. He has transformed his technology companyinto a marketing company whose product is its most important marketingtool. Knight learned how to build brands and understand consumers, andthen how to split those brands into sub-brands to help keep the companygrowing. That approach brought Nike to a broader range of consumerswhile preserving the customer base. To create an emotional tie with theconsumer, Nike started advertising on TV. "Sports is at the heart of

    American culture," Knight says. "You can't explain much in 60 seconds,but when you show Michael Jordan, you don't have to. It's that simple."Subjects Covered:Advertising; Brands; Consumer marketing;Interviews; Leadership; Product lines

    Chapter 7: Analyzing Bus inessMarkets Abstract

    Centra Software:John Deighton,Laetitia PouliquenProduct #: 502009Length: 17Teaching Note: 503047

    Centra is a pioneer in software eLearning. It is debating how to modifyits go-to-market strategy, adding telesales to improve sales forceproductivity. At the same time, its market is evolving, and managementthinks it may be about to "cross the chasm" in Geoffrey Moore'sterminology. Should it "fish where the fish are biting" or should itconcentrate on the enterprise customer and exclude small and mid-size

    corporations? If a shakeout is coming, how can Centra ensure that iteither survives or is acquired by one of the survivors?Learning Objective:Examines the design of go-to-market strategy, howto manage conflict between field sales and telephone sales, how tomanage rapid growth markets, and the competition between best-of-breed collaborators and single-source vendors.

    KONE: The MonoSpace Launchin Germany:Das Narayandas,Gordon SwartzProduct #: 501070Length: 21pTeaching Note: 503068

    Focuses on the launch of a new elevator product in Germany. In 1996,global construction slumps and low differentiation among competitiveofferings has led to significant price competition and margin erosion inthe elevator industry. In these circumstances, KONE, one of the globalplayers in this industry, has developed the Monospace elevator productthat uses revolutionary technologies. This new product is expected tohave a significant impact on the current product lines of KONE and its

    competitors. The firm has test marketed the product in three Europeancountry markets to varying degrees of success. The firm is now planningto launch the new product in Germany, the largest country market inEurope and vital to KONE's overall success. With little room for error andthe future of the firm at stake, KONE's German subsidiary needs todevelop a detailed launch plan for Monospace in Germany.Subjects Covered:Business marketing; Marketing planning; Marketingstrategy; New product marketing; Product management

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    VerticalNet:Das NarayandasProduct #: 500041Length: 25p

    Teaching Note: 501060

    VerticalNet, a leading creator of targeted business-to-business verticaltrade communities on the Internet, is trying to expand its model tofacilitate e-commerce as well. CEO Mark Walsh must decide how far he

    can extend the firms business model without adversely affecting hiscurrent franchise.Learning Objective:To illustrate the various business-to-business e-commerce models that exist today.

    Arrow Electronics:DasNarayandasProduct #: 598022Length: 21pTeaching Note: 500111

    Deals with the issue of cross-selling and managing a portfolio ofproducts and services in business markets. Management must decidewhether to pursue an opportunity to sell its products through a new e-commerce site, which could threaten the viability of its overall businessmodel.Subjects Covered: Customer relationship management; Distribution;Internet; Marketing strategy; Product portfolio management; Targetmarkets

    Optical Distortion, Inc. (A):DarrelG. Clarke,Randall E. WiseProduct #: 575072Length: 10pTeaching Note: 577161

    Classic case about a startup offering contact lenses for chickens in theegg production industry. The marketing vice president must makecertain decisions to complete his marketing plan.Subjects Covered:Entrepreneurship; Marketing strategy; Pricingstrategy; Product introduction; Sales promotions

    Business Marketing: UnderstandWhat Customers Value:JamesC. Anderson,James A. NarusProduct #: 98601Length: 11p

    The authors illustrate several ways in which suppliers can figure outexactly what their offerings are worth by creating and using what theycall customer value models. Field value assessments--the mostcommonly used method for building customer value models--call forsuppliers to gather data about their customers firsthand wheneverpossible. Through these assessments, a supplier can build a valuemodel for an individual customer or for a market segment, drawing ondata gathered from several customers in that segment. Suppliers canuse customer value models to create competitive advantage in severalways. Doing business based on value delivered gives companies the

    means to get an equitable return for their efforts. Once suppliers trulyunderstand value, they will be able to realize the benefits of measuringand monitoring it for their customers.Learning Objective:To see how gathering data from customersfirsthand can help companies discern what their offerings are worth,customize their offerings, and demonstrate each offering's unique value.

    Chapter 8: Identifyi ng MarketSegments and Targets Abst ractThe Fashion Channel: MarketSegmentation (HBSP BriefCase):Wendy StahlProduct #: 2075Length: 12p

    Teaching Note: 2076

    The new Senior Vice President of Marketing for The Fashion Channel(TFC), a cable television network dedicated to round-the-clock, fashion-oriented programming, is preparing to recommend a change in thecompany's traditional marketing approach by introducing a marketsegmentation program. This program is, in part, a response to the

    intensifying competitive environment for TFC, and it needs to strengthenthe company's brand and positioning with viewers and advertisers. Atthe same time, the program must maintain consumer and distributorsatisfaction with the network. Several segmentation options are beingconsidered, each with pros and cons. Consumer research providesinsights but does not give a simple answer regarding the best path totake. The reader must evaluate the research results, calculate financialscenarios, and make a recommendation.

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    Learning Objective:To illustrate the development of marketsegmentation options, using a combination of market and consumerdata, financial analysis, stakeholder inputs, and other analytic resources;

    demonstrate how quantitative analysis can be used to support astrategic marketing decision by asking students to review multiple datainputs and to calculate the bottom line impact of proposed options; andhighlight the issues involved in managing a business that is experiencinga changing competitive environment.

    Fenix: Diversified NicheMarketing in the LifestyleBusiness:Bennett Yim,MonicaWongProduct #: HKU283Length: 8pTeaching Note: HKU284

    Fenix Group's business spans from general merchandise retailing toItalian fashion. The diversity stems from the management's multinichemarketing strategy. Looks at the journeys of two entrepreneurs whostarted out with a tiny garment trading company and, in the span of 30years, expanded into a multinational network of manufacturing andretailing with $230 million annual turnover. How did Fenix identify andtap into niches in different markets? What does it take to be successfulin niche markets? Also analyzes Fenix's strategy and discusses thecritical success factors of its multiniche marketing strategy.Subjects Covered:Implementing strategy; Manufacturing; Marketingstrategy; Networks

    Vans: Skating on Air:YoungmeMoon,David KironProduct #: 502077Length: 22pTeaching Note: 502077

    Vans is best known for selling footwear and apparel to skateboarders,surfers, and other alternative sports athletes. In April 2002, GarySchoenfeld, the CEO, is facing a number of challenges. With respect tofootwear, he must decide what to do about two product lines that arestruggling--the outdoor line of hiking shoes and the women's collection.More broadly, Vans is currently embarking on a number of newventures, some of with which the company has little experience. Forexample, Vans is in the process of promoting a full-length movie,creating its own record label, and working with video-game developersto develop games based on its sporting events. Traces the up-and-downhistory of a niche fashion brand in a market in which consumers are

    notoriously fickle. In recent years, the CEO appears to have revived thebrand; however, it is unclear whether the company is in danger of losingits hardcore customer base as it ventures into the consumermainstream.Learning Objective:Allows for an examination of how a brand canevolve over time, as well as a discussion of the conflict that can arisewhen the growth and popularity of a brand affects its perception ofauthenticity among its most loyal customers.

    Omnitel Pronto Italia:Rajiv Lal,Carin-Isabel Knoop,Suma RajuProduct #: 501002Length: 24pTeaching Note: 501075

    Describes the situation faced by Omnitel soon after launching its mobiletelecommunication services in Italy in December 1995. Competingagainst the Italian monopoly, TIM, Omnitel had positioned its services tobe better on the quality dimension. However, sales were significantlybelow expectations. In order to develop a new strategy, Omnitel

    conducted extensive marketing research. This research identified thevarying needs of different customer segments. Omnitel now had todecide whether to attack a new segment with a new service plan,"LIBERO," to improve on past performance.Learning Objective:To demonstrate how marketing helps create valueby developing a product that satisfies the needs of the customer.

    Appropriate for a first-year marketing course.Eastman Kodak Co.: Funtime Eastman Kodak has suffered significant declines in film market share at

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    Film:Robert J. DolanProduct #: 594111Length: 5p

    Teaching Note: 597080

    the hands of lower-priced branded producers and private label products.The case presents Kodaks proposal to launch a new, economy brand offilm to combat these rivals.

    Learning Objective:To allow students to consider issues of marketsegmentation, positioning, and pricing as mechanisms for dealing withdeclining differentiation of goods in an industry.

    How to Segment IndustrialMarkets:Benson P. Shapiro,Thomas V. BonomaProduct #: 84312Length: 7p

    The difficulty of segmenting industrial markets has dissuaded companiesfrom trying, despite the benefits they lose in terms of market analysisand selection. The problem is to identify the most useful variables. Oneway to do this is to arrange the five general segmentation criteria ofdemographics, operating variables, customer purchasing approaches,situational factors, and personal buyer characteristics, into a nestedhierarchy. The segmentation criteria of the largest, outermost nest aregeneral characteristics about industries and companies. Innermost nestsare specific, subtle, and hard-to-assess traits.Subjects Covered:Market segmentation; Target markets

    PART IV: BUIDLING STRONG BRANDS

    Chapter 9: Creating BrandEquity Abst ractBuilding Brand Community onthe Harley-Davidson Posse Ride:Susan FournierProduct #: 501015Length: 37pTeaching Note: 501052

    The second Harley-Davidson Posse Ride, a grueling 2,300 mile, 10-daytrek from South Padre Island, Tex., to the Canadian Border is billed "forserious riders only." Harley Owner's Group (H.O.G.) Director Mike Keefemust decide whether this rolling rally deserves a place in the H.O.G.product line, and if so, what philosophy and tactics to adopt in futuredesign. This case helps students get inside one of the world's strongestbrands to consider issues of brand loyalty, close-to-the-customerphilosophy, the cultivation of brand community, and the day-to-dayexecution of relationship marketing programs. What benefits accrue fromrelationship programs such as this? Can brand community be built?How? What is the role of the marketer in this process? Is it better to

    develop customer intimacy or empathy when executing close-to-the-customer goals? Can management really balance apparently disparatesubcultures such as the retired bikers, Yuppie Weekend Warriors, andserious outlaws within one community? Includes color exhibits.Learning Objective:To allow students, through rich ethnographic data,to develop an appreciation for the conceptual complexity and managerialchallenge involved in cultivating brand loyalties and customercommitments through experiential relationship marketing programs. Toallow students to discuss what it means to get close to one's customers,to develop a brand community, and to build relationships betweenconsumers and the company, the brand, the product, and otherconsumers. The conduct of ethnographic inquiry, and the ability of thismethod to inform management decisions and goals, can be profitably

    explored through this case venue as well.Martha Stewart LivingOmnimedia (A):Susan Fournier,Laura Winig,Kerry Herman,

    Andrea WojnickiProduct #: 501080Length: 32pTeaching Note: 502003

    Martha Stewart Living Omnimedia (MSLO), a branded and integratedcontent and media company dedicated to "elevating the role of thehomemaker," went public on October 19, 1999, creating a company witha market value of $1.73 bill ion, and a stake for Stewart worth $1.2 billion.

    Aretha Jackson, president of a private investment firm, must counsel aclient on whether to invest in MSLO--a precarious prospect in light of thesteady downward plunge in MSLO stock performance since the IPO.

    http://cb.hbsp.harvard.edu/cb/web/search_results.seam?conversationId=46524&N=4294962919http://cb.hbsp.harvard.edu/cb/web/search_results.seam?conversationId=46524&N=4294962919http://cb.hbsp.harvard.edu/cb/web/search_results.seam?conversationId=46524&N=4294962919http://hbsp.harvard.edu/cb/product/84312-PDF-ENGhttp://hbsp.harvard.edu/cb/product/84312-PDF-ENGhttp://hbsp.harvard.edu/cb/product/84312-PDF-ENGhttp://cb.hbsp.harvard.edu/cb/web/search_results.seam?conversationId=46558&N=4294963005http://cb.hbsp.harvard.edu/cb/web/search_results.seam?conversationId=46558&N=4294963005http://cb.hbsp.harvard.edu/cb/web/search_results.seam?conversationId=46558&N=4294961027http://hbsp.harvard.edu/cb/product/501015-PDF-ENGhttp://hbsp.harvard.edu/cb/product/501015-PDF-ENGhttp://hbsp.harvard.edu/cb/product/501015-PDF-ENGhttp://cb.hbsp.harvard.edu/cb/web/search_results.seam?conversationId=46590&N=4294962918http://hbsp.harvard.edu/cb/product/501080-PDF-ENGhttp://hbsp.harvard.edu/cb/product/501080-PDF-ENGhttp://hbsp.harvard.edu/cb/product/501080-PDF-ENGhttp://cb.hbsp.harvard.edu/cb/web/search_results.seam?conversationId=46641&N=4294962918http://cb.hbsp.harvard.edu/cb/web/search_results.seam?conversationId=46641&N=4294962918http://cb.hbsp.harvard.edu/cb/web/search_results.seam?conversationId=46641&N=4294962543http://cb.hbsp.harvard.edu/cb/web/search_results.seam?conversationId=46641&N=4294962519http://cb.hbsp.harvard.edu/cb/web/search_results.seam?conversationId=46641&N=4294961078http://cb.hbsp.harvard.edu/cb/web/search_results.seam?conversationId=46641&N=4294961078http://cb.hbsp.harvard.edu/cb/web/search_results.seam?conversationId=46641&N=4294962519http://cb.hbsp.harvard.edu/cb/web/search_results.seam?conversationId=46641&N=4294962543http://cb.hbsp.harvard.edu/cb/web/search_results.seam?conversationId=46641&N=4294962918http://hbsp.harvard.edu/cb/product/501080-PDF-ENGhttp://hbsp.harvard.edu/cb/product/501080-PDF-ENGhttp://cb.hbsp.harvard.edu/cb/web/search_results.seam?conversationId=46590&N=4294962918http://hbsp.harvard.edu/cb/product/501015-PDF-ENGhttp://hbsp.harvard.edu/cb/product/501015-PDF-ENGhttp://cb.hbsp.harvard.edu/cb/web/search_results.seam?conversationId=46558&N=4294961027http://cb.hbsp.harvard.edu/cb/web/search_results.seam?conversationId=46558&N=4294963005http://hbsp.harvard.edu/cb/product/84312-PDF-ENGhttp://hbsp.harvard.edu/cb/product/84312-PDF-ENGhttp://cb.hbsp.harvard.edu/cb/web/search_results.seam?conversationId=46524&N=4294962919
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    Risks outlined in the company's S-1 filing also highlighted specialconcerns specific to the management of the "Person-Brand." Could thecompany outlive Stewart? What if Stewart's reputation or image was

    tarnished? How, exactly, did the reputation of Stewart affect the value ofthe brand? Jackson must understand what meanings Martha Stewartclaimed, and for whom, while also coming to grips with the meaning-management principles that applied in "managing Martha," the personand the brand.Learning Objective:Offers the opportunity to explore the uniquebranding and stewardship issues involved when a person is the brand.

    Steinway & Sons: Buying aLegend (A):John T. Gourville,Joseph B. LassiterProduct #: 500028Length: 23pB case 500045Teaching Note: 500104

    It is 1995 and Steinway & Sons has just been purchased by two youngentrepreneurs. For 140 years, Steinway has held the reputation formaking the finest quality grand pianos in the world. The past 25 yearshave proven to be a challenge, however. First, the company haschanged hands several times and product quality has become aconcern. Second, the worldwide market for pianos has been in a steadydecline, and competition for high-end grand pianos has increased.Finally in 1992, Steinway took the questionable steps of introducing amid-priced line of grand pianos under the brand name "Boston."Designed by Steinway, but manufactured by a Japanese piano maker,the Boston line represented a major shift in strategy for the company.Within this context, what do two young entrepreneurs (with little or noexperience in the piano industry) hope to accomplish in buyingSteinway? In particular, what value do they bring to the company andwhat decisions should they make?Learning Objective:Can be used as a marketing strategy case toexplore brand management, raising the question of how best to leveragea strong corporate brand. Can also be used as an industry overviewcase to study competitive dynamics in a mature industry. Finally, it canbe used as an entrepreneurial case to understand the value and

    limitations entrepreneurs bring to a well-established company. Providesa nice contrast to the more traditional role of entrepreneurs in start-upenvironments.

    What Are Brands Good For?:Niraj DawarProduct #: SMR151Length: 9p

    Brands are an indispensable part of modern business. That is true inlarge measure because of a brand's remarkable efficiency in"aggregating" consumers--reaching large numbers of people with apromise to deliver a clearly stated benefit that sets it apart fromcompetitors. But the information revolution is undermining the logic ofaggregation, the very source of brand power. In fact, it is becomingevident that in an information-rich environment, consumerdisaggregation is vastly more efficient and profitable than aggregation.Using customized publications, e-mail, direct mail, Web sites, and callcenters that are based on a common platform of consumer information,

    companies are demonstrating that they can effectively and efficientlydrive consumer behavior through two-way communications. Commonunderlying databases ensure that each interaction is personalized,regardless of the channel through which it occurs. And each interactionwith the consumer builds the consumer database further, making futureinteractions even richer. The implications of the information revolution forthe role of brands in business are far-reaching. Many of the strategic andtactical tasks entrusted to brands can now be performed better, less

    http://hbsp.harvard.edu/cb/product/500028-PDF-ENGhttp://hbsp.harvard.edu/cb/product/500028-PDF-ENGhttp://hbsp.harvard.edu/cb/product/500028-PDF-ENGhttp://cb.hbsp.harvard.edu/cb/web/search_results.seam?conversationId=46706&N=4294962904http://cb.hbsp.harvard.edu/cb/web/search_results.seam?conversationId=46706&N=4294962904http://cb.hbsp.harvard.edu/cb/web/search_results.seam?conversationId=46706&N=4294961183http://hbsp.harvard.edu/cb/product/SMR151-PDF-ENGhttp://hbsp.harvard.edu/cb/product/SMR151-PDF-ENGhttp://cb.hbsp.harvard.edu/cb/web/search_results.seam?conversationId=46751&N=4294959804http://cb.hbsp.harvard.edu/cb/web/search_results.seam?conversationId=46751&N=4294959804http://cb.hbsp.harvard.edu/cb/web/search_results.seam?conversationId=46751&N=4294959804http://hbsp.harvard.edu/cb/product/SMR151-PDF-ENGhttp://cb.hbsp.harvard.edu/cb/web/search_results.seam?conversationId=46706&N=4294961183http://cb.hbsp.harvard.edu/cb/web/search_results.seam?conversationId=46706&N=4294962904http://hbsp.harvard.edu/cb/product/500028-PDF-ENGhttp://hbsp.harvard.edu/cb/product/500028-PDF-ENG
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    eBrands are an indispensable part of modern business. That is true inlarge measure because of a brand's remarkable efficiency in"aggregating" consumers--reaching large numbers of people with a

    promise to deliver a clearly stated benefit that sets it apart fromcompetitors. But the information revolution is undermining the logic ofaggregation, the very source of brand power. In fact, it is becomingevident that in an information-rich environment, consumerdisaggregation is vastly more efficient and profitable than aggregation.Using customized publications, e-mail, direct mail, Web sites, and callcenters that are based on a common platform of consumer information,companies are demonstrating that they can effectively and efficientlydrive consumer behavior through two-way communications. Commonunderlying databases ensure that each interaction is personalized,regardless of the channel through which it occurs. And each interactionwith the consumer builds the consumer database further, making futureinteractions even richer. The implications of the information revolution forthe role of brands in business are far-reaching. Many of the strategic andtactical tasks entrusted to brands can now be performed better, lessexpensively, and more profitably at the level of consumer segments. Andcompanies' brand-centric structures are not suited to marketinginitiatives that are based on reaching segments or individuals. Given thischanged environment, the author calls on companies to rethink threecore areas of brand management: the consumer relationship, thechannel relationship, and the organization of brand management. Hedraws on detailed examples involving Kraft, Procter & Gamble, andTesco.Subjects Covered:Brand manag