# Marketing Management Course Guide: [Programme, course or term]

> A course guide for the core MBA marketing management course: what the course is for, the competencies it builds, a
> 12-session roadmap, the key concepts with links to the concept cards, an original mini-case on Northfield Outdoor Co.
> with exhibits and a teaching note, typical assignments and how they are graded, an exam preparation plan and a
> self-test. It is for incoming and current MBA students, and for working managers who want the core of the course in
> one place. Topics: customer analysis; segmentation, targeting and positioning; the marketing mix; branding and brand
> equity (Aaker 1991; Keller 1993); pricing; channels; communications and digital; marketing analytics; customer
> lifetime value; new products and diffusion (Rogers 1962; Bass 1969).
> Source basis: the primary works cited in each section and the structure common to core marketing courses at leading
> international programmes, written in original words. The case, the company and all data are fictional.
> Replace every [bracketed] value and every row marked *Example* with your own course details.

<!--
Guidance: How to use this template
- Before the course: read sections 1 to 3 and complete the prerequisite check. Fill in your own syllabus in the
  roadmap table (session dates, assigned cases and readings) in place of the *Example* rows.
- During the course: before each session, read the linked concept card, prepare the case with
  mba/mba-case-prep-sheet, and log what you got wrong in mba/mba-error-log.
- Work the Northfield mini-case in section 5 on your own first (two to three hours), then read the teaching note.
- Before the exam: follow the plan in section 8 and do the self-test without notes.
- Related templates: mba/mba-stp-positioning-card, mba/mba-marketing-mix-card, mba/mba-customer-lifetime-value-card,
  mba/mba-pricing-card, mba/mba-demand-elasticity-card, mba/mba-regression-for-managers-card,
  mba/mba-decision-analytics-guide, mba/mba-strategy-guide, mba/mba-npv-irr-card, mba/mba-case-prep-sheet,
  mba/mba-case-write-up, mba/mba-exam-prep, mba/mba-error-log, mba/mba-concept-flashcards,
  mba/mba-core-curriculum-map, mba/pre-mba-economics-primer, mba/pre-mba-excel-modeling-drills,
  marketing/marketing-plan, marketing/go-to-market-plan, marketing/brand-guidelines.
-->

## Document control

<!-- Guidance: Record the course details once. Update the version when you replace the example roadmap with your own syllabus. -->

| Field | Value |
|---|---|
| Programme and course | [MBA core: Marketing Management] |
| Term and dates | [Term, YYYY-MM-DD to YYYY-MM-DD] |
| Instructor | [Name, as listed in your syllabus] |
| Learner | [Your name] |
| Learning team | [Team number and members] |
| Assessment weights | [Participation __%, team project __%, individual case __%, final exam __%] |
| Reviewed by | [Study partner, tutor or mentor] |
| Last updated | YYYY-MM-DD |
| Version | [0.1] |

## Contents

1. What the course is for
2. Prerequisites
3. Session roadmap
4. Key concepts and concept cards
5. Mini-case: Northfield Outdoor Co. and the Fastpack launch
6. Typical assignments and how they are graded
7. Common struggles
8. Exam preparation plan
9. Self-test
10. Reading list

## 1. What the course is for

<!-- Guidance: Read this once at the start and again before the exam. The competencies are what you will be graded on, whatever the topic of a given session. -->

The core marketing course teaches how a firm creates, communicates, delivers and captures value from customers, and
how to make marketing decisions with evidence. It is a decision course: almost every session ends with a question of
the form "what should the manager do?" Its core idea is the sequence that runs through the whole course: understand
customers and the market, choose whom to serve and how to be preferred (segmentation, targeting and positioning),
design the offer (the marketing mix), build the brand, and measure the results (analytics, customer lifetime value).
Levitt (1960) gave the course its classic warning: define the business by the customer need it serves, not by the
product it makes.

The course builds the competencies that accreditation bodies and programmes expect from the core (see
`mba/mba-core-curriculum-map`):

| Competency | How this course builds it | Where you show it |
|---|---|---|
| Analytical and quantitative reasoning | Segment sizing, CLV, break-even, response curves, diffusion forecasts | Case write-ups, exam problems |
| Ethical decision making | Targeting vulnerable groups, data privacy, honest claims, pricing fairness | Case discussion, project |
| Communication | Positioning statements, recommendations in one page, class contributions | Participation, write-ups |
| Leadership and teamwork | Team marketing plan, peer feedback | Team project |
| Global perspective | Adapting the mix across countries, global versus local brands | Cases, project |
| Technology, data and AI | Digital channels, marketing analytics, experiments, AI in personalisation | Analytics assignments |

## 2. Prerequisites

<!-- Guidance: Do the check two weeks before the first session. If you miss more than two items, work through the linked primer first. -->

| You should be able to | Check yourself | If not, use |
|---|---|---|
| Compute a contribution margin and a break-even volume | Price 50, variable cost 30, fixed cost 100,000: break-even units? (5,000) | `mba/mba-cvp-breakeven-card`, `mba/pre-mba-accounting-primer` |
| Explain price elasticity of demand | What does an elasticity of -2 mean for revenue after a price cut? | `mba/pre-mba-economics-primer`, `mba/mba-demand-elasticity-card` |
| Discount a stream of cash flows | Present value of 100 a year for 3 years at 10%? (248.69) | `mba/pre-mba-finance-primer`, `mba/mba-npv-irr-card` |
| Build a small spreadsheet model with SUMPRODUCT, NPV and Goal Seek | Can you do it without searching for the syntax? | `mba/pre-mba-excel-modeling-drills` |
| Read a regression output (coefficient, standard error, R squared) | What does a coefficient of 0.8 on advertising mean? | `mba/pre-mba-quant-refresher`, `mba/mba-regression-for-managers-card` |
| Prepare a case for discussion | Can you state the decision, the options and your recommendation in three sentences? | `mba/mba-case-reading-guide`, `mba/mba-case-prep-sheet` |

## 3. Session roadmap

<!-- Guidance: Replace the *Example* rows with your syllabus. Keep the "card to read" column: reading the card before the case makes the case discussion far more useful. -->

| Session | Topic | Card or template to read | Case or exercise | Deliverable |
|---|---|---|---|---|
| 1 *(Example)* | What marketing decides: value, customers, the marketing process | This guide, section 1 | Short case on a firm that defined its business too narrowly | Case prep sheet |
| 2 *(Example)* | Customer analysis: needs, decision journey, research methods | `startup/customer-discovery`, `business/market-research-report` | Interview three buyers of a product you use | One-page insight memo |
| 3 *(Example)* | Segmentation and targeting | `mba/mba-stp-positioning-card` | Segment scoring exercise | Scored segment table |
| 4 *(Example)* | Positioning, perceptual maps and jobs to be done | `mba/mba-stp-positioning-card` | Repositioning case | Positioning statement |
| 5 *(Example)* | Branding and brand equity | Section 4 of this guide; `marketing/brand-guidelines` | Brand extension case | Brand funnel analysis |
| 6 *(Example)* | Product and new-product development, diffusion | Section 4 of this guide | Bass forecast exercise | Spreadsheet forecast |
| 7 *(Example)* | Pricing | `mba/mba-pricing-card`, `mba/mba-demand-elasticity-card` | Pricing case | Price recommendation |
| 8 *(Example)* | Channels and omnichannel retail | `mba/mba-marketing-mix-card` | Channel conflict case | Channel economics table |
| 9 *(Example)* | Communications, media and digital marketing | `mba/mba-marketing-mix-card`, `marketing/campaign-brief` | Media plan exercise | Campaign brief |
| 10 *(Example)* | Marketing analytics: experiments, attribution, marketing-mix models | `mba/mba-marketing-mix-card`, `academic/stats-experiment-design` | Budget allocation exercise | Solver allocation |
| 11 *(Example)* | Customer lifetime value and customer management | `mba/mba-customer-lifetime-value-card` | Northfield mini-case (section 5) | Case write-up |
| 12 *(Example)* | Integration: the marketing plan, ethics and review | `marketing/marketing-plan`, `marketing/go-to-market-plan` | Team project presentations | Marketing plan |

```mermaid
flowchart LR
    A["Customers and market"] --> B["Segment and target"]
    B --> C["Position"]
    C --> D["Marketing mix"]
    D --> E["Brand"]
    D --> F["Price, channels, communications"]
    E --> G["Measure: analytics, CLV"]
    F --> G
    G --> A
```

## 4. Key concepts and concept cards

<!-- Guidance: Use this table as a map. For each concept, be able to give the definition, the originator and one number or example from memory. -->

| Concept | What it is | Originator | Where to study it |
|---|---|---|---|
| Market orientation and marketing myopia | Defining the business by the customer need, not the product | Levitt (1960) | Section 1 |
| Segmentation, targeting, positioning | Choosing whom to serve and how to be preferred | Smith (1956); Ries and Trout (1981) | `mba/mba-stp-positioning-card` |
| Jobs to be done | Customers hire products to make progress in a circumstance | Christensen, Hall, Dillon and Duncan (2016) | `mba/mba-stp-positioning-card` |
| Marketing mix (4Ps, 7Ps) | Product, price, place, promotion; plus people, process, physical evidence | McCarthy (1960); Booms and Bitner (1981) | `mba/mba-marketing-mix-card` |
| Brand equity | The value a brand adds to a product | Aaker (1991); Keller (1993) | This section |
| Pricing | Value-based pricing, elasticity, price discrimination | Economic theory | `mba/mba-pricing-card`, `mba/mba-demand-elasticity-card` |
| Budget allocation and marketing-mix models | Equal marginal returns, carry-over, saturation | Response-modelling practice | `mba/mba-marketing-mix-card` |
| Customer lifetime value | Present value of a customer's expected margins | Berger and Nasr (1998); Gupta, Lehmann and Stuart (2004) | `mba/mba-customer-lifetime-value-card` |
| Diffusion of innovations | How adoption spreads: adopter categories | Rogers (1962) | This section |
| Bass diffusion model | Forecast of first purchases from innovation and imitation | Bass (1969) | This section |

### Branding and brand equity

Aaker (1991) described brand equity as a set of assets and liabilities linked to a brand: **brand loyalty, name
awareness, perceived quality, brand associations** and other proprietary assets (such as trademarks and channel
relationships). Keller (1993) defined **customer-based brand equity** as the differential effect of brand knowledge on
consumer response to the marketing of the brand, with brand knowledge made up of **brand awareness** (recall and
recognition) and **brand image** (favourable, strong and unique associations). The practical test of Keller's
definition: do customers react more favourably to the same product, price or advertisement when they know it comes
from this brand?

Managers track brand equity with a **brand funnel** (aware, consider, buy, repeat or recommend), price premium versus
an unbranded or store-brand equivalent, and association surveys. A funnel shows where the brand loses people: a brand
with high awareness and low consideration has an image problem, not a visibility problem. Brand extensions use the
equity in a new category; they work when the parent brand's associations fit the new category, and they can dilute
the parent when they do not.

### New products and diffusion

Rogers (1962) described how innovations spread through a social system over time and grouped adopters, by time of
adoption, into innovators (about 2.5%), early adopters (13.5%), early majority (34%), late majority (34%) and laggards
(16%), the shares implied by cutting a normal distribution of adoption times at one and two standard deviations from
the mean. Adoption is faster when an innovation has a clear relative advantage, is compatible with existing habits,
is simple, can be tried, and its results are visible.

Bass (1969) turned the idea into a forecasting model of first purchases. The probability that someone adopts at time
$t$, given they have not yet adopted, rises with the share who already have:

$$\frac{f(t)}{1 - F(t)} = p + q\,F(t)$$

$$F(t) = \frac{1 - e^{-(p+q)t}}{1 + \frac{q}{p}\, e^{-(p+q)t}}, \qquad N(t) = m\,F(t), \qquad t^{*} = \frac{\ln(q/p)}{p+q}$$

| Symbol | Meaning |
|---|---|
| $m$ | Market potential: the number of eventual adopters |
| $p$ | Coefficient of innovation: adoption driven by external influence (advertising, the product itself) |
| $q$ | Coefficient of imitation: adoption driven by previous adopters (word of mouth, visibility) |
| $F(t)$, $N(t)$ | Cumulative share and number of adopters by time $t$ |
| $t^{*}$ | Time of peak adoption |

Excel, with $t$ in `A2`: `=m*(1-EXP(-(p+q)*A2))/(1+(q/p)*EXP(-(p+q)*A2))`; new adopters in year $t$ are the difference
of two consecutive cumulative values. The model forecasts first purchases only: add replacement and repeat purchases
separately. Its parameters are usually estimated from early sales or borrowed from analogous products, which is the
model's main weakness before launch.

## 5. Mini-case: Northfield Outdoor Co. and the Fastpack launch

<!-- Guidance: Read the situation and exhibits, answer the discussion questions in writing (two to three hours), then read the teaching note. The case is fictional and original; the numbers are consistent across exhibits. -->

### 5.1 Situation

Mira Okonjo had been Northfield Outdoor Co.'s chief marketing officer for eight months when the board asked her for a
decision on Fastpack, a range of ultralight running packs and layers that the product team had been developing for two
years. Northfield, a mid-size outdoor-gear retailer and brand with 48 stores and a growing e-commerce business, had
built its reputation on durable, fairly priced camping and hiking gear for families. Its customers trusted it; few of
them thought of it as a technical brand.

The product team's research had found a fast-growing group of trail runners who trained on weekday evenings, raced on
weekends and complained that technical running kit was either too fragile or too expensive. Prototypes had done well
in field tests with a local running club, and the team believed Fastpack could become Northfield's first range with a
genuine technical reputation.

Mira's analytics lead, Tomás Reyes, had pulled together the numbers in the exhibits. The diffusion forecast in
Exhibit 3 used parameters from analogous product launches in the category. The launch plan assumed a price of USD 165
for the core pack, a unit cost of USD 74 and a unit mix of 55% store and 45% own e-commerce, with variable selling
costs of USD 6 per store unit and USD 14 per online unit. The launch would cost USD 2.4 million (design, tooling,
launch campaign and store fixtures), followed by USD 0.6 million a year of ongoing marketing.

Two disagreements dominated the pre-board meeting. Jonas Feld, head of stores, wanted Fastpack listed on the two
largest online marketplaces from day one, because "that is where runners shop and the acquisition cost is tiny".
Priya Raman, head of e-commerce, argued that marketplace customers rarely came back and that the marketplaces were
full of discounted rival kit that would drag Fastpack's price down. The finance director, Elena Brandt, had looked at
a five-year cash flow and found the launch did not pay back; she asked why the board should approve a project with a
negative five-year NPV.

Mira also worried about the brand. Exhibit 4, from the annual brand tracker, showed Northfield was well known but
converted awareness into consideration less well than its strongest rival. She wondered whether Fastpack should carry
the Northfield name, a sub-brand ("Fastpack by Northfield"), or a stand-alone brand.

The board meeting was in three weeks. Mira needed a recommendation on four questions: whether to launch, through which
channels, under which brand, and how to judge success in the first two years.

### 5.2 Exhibits

**Exhibit 1. Segments in the regional outdoor market (survey of 400 buyers, fictional).**

| Segment | Share of buyers | Main need | Current Northfield share | Growth |
|---|---|---|---|---|
| Weekend family campers | 38% | Durable, good value | High | Flat |
| Ultralight trail runners | 9% | Light, durable, technical credibility | Very low | Fast |
| Urban commuters (outdoor look) | 41% | Style, weather protection | Low | Moderate |
| Serious alpine hikers | 12% | Maximum performance, safety | Low | Moderate |

**Exhibit 2. Customer economics by channel (annual, existing Northfield customers, fictional).**

| Channel | Orders per year | Average order value (USD) | Gross margin | Variable cost per order (USD) | Annual retention | CAC (USD) |
|---|---|---|---|---|---|---|
| Stores | 2.2 | 95 | 44% | 6 | 70% | 30 |
| Own e-commerce | 2.6 | 110 | 47% | 14 | 72% | 55 |
| Marketplace | 1.5 | 120 | 40% | 31 | 45% | 18 |

Discount rate 10% a year.

**Exhibit 3. Bass diffusion forecast of Fastpack buyers (first purchases), $m$ = 120,000, $p$ = 0.04, $q$ = 0.60.**

| Year | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 |
|---|---|---|---|---|---|---|---|---|
| New buyers | 6,367 | 10,389 | 15,256 | 19,260 | 20,161 | 17,361 | 12,608 | 8,068 |
| Cumulative buyers | 6,367 | 16,756 | 32,011 | 51,271 | 71,432 | 88,793 | 101,402 | 109,470 |
| Share of $m$ | 5.3% | 14.0% | 26.7% | 42.7% | 59.5% | 74.0% | 84.5% | 91.2% |

```vega-lite
{
  "$schema": "https://vega.github.io/schema/vega-lite/v5.json",
  "description": "Fastpack Bass diffusion forecast, new buyers per year (fictional)",
  "width": 400,
  "height": 220,
  "data": {"values": [
    {"year": 1, "new_adopters": 6367}, {"year": 2, "new_adopters": 10389}, {"year": 3, "new_adopters": 15256},
    {"year": 4, "new_adopters": 19260}, {"year": 5, "new_adopters": 20161}, {"year": 6, "new_adopters": 17361},
    {"year": 7, "new_adopters": 12608}, {"year": 8, "new_adopters": 8068}
  ]},
  "mark": "bar",
  "encoding": {
    "x": {"field": "year", "type": "ordinal", "title": "Year after launch"},
    "y": {"field": "new_adopters", "type": "quantitative", "title": "New Fastpack buyers"}
  }
}
```

**Exhibit 4. Brand funnel, category buyers in the region (n = 1,000, fictional).**

| Stage | Northfield | Rival A (technical specialist) |
|---|---|---|
| Aware | 610 | 540 |
| Would consider | 280 | 300 |
| Bought in last 12 months | 120 | 150 |
| Bought again (repeat) | 66 | 98 |

### 5.3 Discussion questions

1. Which customers should Fastpack target, and what should its positioning statement be? Use Exhibit 1.
2. Using Exhibit 2, compute the customer lifetime value and CLV minus CAC for each channel. Should Fastpack be sold on
   marketplaces at launch?
3. Using Exhibit 3, when does adoption peak, and why does the five-year NPV look poor? Compute the five-year and
   eight-year NPV at 10%.
4. What does Exhibit 4 say about Northfield's brand equity, and what does it imply for the branding decision
   (master brand, sub-brand or stand-alone)?
5. Which three metrics should the board track in the first two years, and what results would make you stop or
   accelerate the launch?

### 5.4 Teaching note

<!-- Guidance: Read only after answering the questions. The note gives one well-supported analysis; strong answers can reach different conclusions if they use the evidence. -->

**Q1. Target and positioning.** The fast-growing ultralight trail runners segment is small (9%) but has a clear unmet
need (light *and* durable) that matches Northfield's real strength, durability. Family campers are Northfield's base
and do not need Fastpack; commuters and alpine hikers are served by stronger rivals. A concentrated strategy for the
new range fits. Positioning: "For trail runners who train after work, Fastpack is the running pack and layer system
that stays light through a full season of daily use, because it is field-tested by runners and backed by Northfield's
repair guarantee." See `mba/mba-stp-positioning-card` for the scoring and the perceptual map that support this
choice.

**Q2. Channel economics.** Annual margin per customer is orders $\times$ (AOV $\times$ gross margin $-$ variable cost
per order); CLV $= m\,r/(1+i-r)$ (end-of-period convention, `mba/mba-customer-lifetime-value-card`).

| Channel | Annual margin (USD) | CLV (USD) | CLV minus CAC (USD) | CLV/CAC |
|---|---|---|---|---|
| Stores | 78.76 | 137.83 | 107.83 | 4.59 |
| Own e-commerce | 98.02 | 185.72 | 130.72 | 3.38 |
| Marketplace | 25.50 | 17.65 | -0.35 | 0.98 |

Excel for own e-commerce: margin `=2.6*(110*0.47-14)`, CLV `=98.02*0.72/(1+0.1-0.72)`. Jonas is right that marketplace
CAC is low, but the customers are worth almost nothing: high fulfilment fees and 45% retention leave CLV below CAC.
Priya's concern about price erosion adds a brand cost the numbers do not capture. Recommendation: launch through own
e-commerce and flagship stores; revisit marketplaces only for clearance or with strict price controls. This is also a
mix-consistency point (`mba/mba-marketing-mix-card`).

**Q3. Diffusion and NPV.** Peak adoption at $t^* = \ln(0.60/0.04)/(0.04 + 0.60) = 4.23$ years, so years 4 and 5 are
the biggest; year 1 is only about 5% of the market. Contribution per unit is
$165 - 74 - (0.55 \times 6 + 0.45 \times 14) = 81.40$. Net cash flow per year is new buyers $\times$ 81.40 minus USD
0.6 million of ongoing marketing (USD millions):

| Year | 0 | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 |
|---|---|---|---|---|---|---|---|---|---|
| Net cash flow | -2.400 | -0.082 | 0.246 | 0.642 | 0.968 | 1.041 | 0.813 | 0.426 | 0.057 |

Five-year NPV at 10%: USD -0.482 million (IRR 4.0%); eight-year NPV: USD 0.223 million (IRR 12.1%). Excel,
with year 0 in `B2` and years 1 to 8 in `C2:J2`: five-year `=NPV(10%,C2:G2)+B2`, eight-year `=NPV(10%,C2:J2)+B2`,
and `=IRR(B2:G2)` or `=IRR(B2:J2)`. Elena's five-year view cuts the project off just as adoption peaks: a
diffusion curve puts most of the volume after year 3. The eight-year view is modestly positive. The model also leaves
out repeat and replacement purchases and the value of new customers Fastpack brings to Northfield. If 30% of Fastpack
buyers are new to Northfield and each brings a further USD 60 of present value in other categories (an assumption to
test), the eight-year NPV rises to USD 1.510 million (IRR 22.9%). The board should see the base case and this
sensitivity side by side, with the halo labelled as an assumption.

**Q4. Brand equity.** Northfield's awareness is higher than Rival A's (61% versus 54%), but conversion from awareness to
consideration is lower (45.9% versus 55.6%), as are consideration to purchase (42.9% versus 50.0%) and purchase to
repeat (55.0% versus 65.3%). In Keller's (1993) terms, Northfield has salience but weaker image in this category: its
associations (durable, family, good value) are favourable but not technical. A stand-alone brand would waste the
awareness and the durability association; the master brand alone would carry "family camping" associations into a
technical segment. A sub-brand ("Fastpack by Northfield") borrows trust and durability while building a technical
identity, and limits the risk to the parent if the launch disappoints.

**Q5. Metrics and decision rules.** (1) Fastpack buyers versus the Bass forecast (6,367 in year 1, 16,756 cumulative by
year 2); re-estimate $p$ and $q$ after four quarters. (2) Share of Fastpack buyers new to Northfield and their
12-month repeat rate (the halo assumption). (3) Average realised price versus USD 165 and funnel conversion among trail
runners. Stop or rethink if year-2 cumulative buyers are below about half the forecast and repeat is below the store
average; accelerate (more stores, second product line) if adoption runs ahead of forecast and realised price holds.

## 6. Typical assignments and how they are graded

<!-- Guidance: Ask your instructor for the actual rubric; use this one to self-assess drafts. -->

| Assignment | What it asks | Typical weight |
|---|---|---|
| Class participation | Contributions in case discussions, cold calls | 20% to 35% |
| Individual case write-up | A recommendation memo on an assigned case (`mba/mba-case-write-up`) | 15% to 25% |
| Team marketing plan | A full plan for a real or fictional product (`marketing/marketing-plan`) | 20% to 30% |
| Analytics assignment | Segmentation, CLV, allocation or forecast in a spreadsheet | 10% to 20% |
| Final exam | Case-based exam, often open book, with quantitative parts | 25% to 40% |

**Rubric for a case write-up or plan** (score each 1 to 5):

| Criterion | 5 looks like | 1 looks like |
|---|---|---|
| Decision and recommendation | Clear answer in the first paragraph, with conditions | Summary of the case, no decision |
| Customer insight | Segments defined by needs, evidence from the case | Generic statements about "customers" |
| Analysis | Correct numbers (CLV, break-even, forecast), stated assumptions, sensitivity | Numbers missing or unexplained |
| Consistency | Target, positioning and mix fit together | Tactics that contradict each other |
| Risks and metrics | Named risks, decision rules, metrics with targets | No way to know if it worked |
| Communication | One-page summary, exhibits labelled, plain language | Long, unstructured |

## 7. Common struggles

<!-- Guidance: Read before the first case and again at mid-term. -->

- **Describing instead of deciding.** Case discussions reward a position. State it early and defend it with evidence.
- **Positioning before targeting.** A positioning statement without a named target is an advertising line.
- **Numbers without assumptions.** Every CLV, forecast or allocation needs its inputs and convention stated.
- **Average versus marginal.** Budget questions turn on marginal returns (`mba/mba-marketing-mix-card`).
- **Short horizons for new products.** Diffusion puts volume late; do not judge a launch on year 1 alone (mini-case
  Q3).
- **Ignoring the brand.** Channel and price decisions change what the brand means; say how.
- **Treating digital as a separate subject.** Digital channels are part of place and promotion and must fit the same
  positioning.
- **Overconfidence in data.** Attribution reports and model outputs are estimates; ask how they were validated.

## 8. Exam preparation plan

<!-- Guidance: Start two weeks before the exam. Use retrieval practice and spacing: test yourself before re-reading. -->

| Day | Task | Template |
|---|---|---|
| T-14 | List every concept in section 4; rate confidence 1 to 5 | `mba/mba-exam-prep` |
| T-13 to T-10 | Redo the self-tests of the three concept cards without notes | Concept cards |
| T-9 | Rework the Northfield mini-case in 2 hours under exam conditions | Section 5 |
| T-8 to T-6 | Re-solve two course cases quantitatively (CLV, break-even, allocation) | `mba/mba-case-write-up` |
| T-5 | Build a one-page formula and framework sheet | `mba/mba-formula-sheet` |
| T-4 | Flashcards for originators and definitions | `mba/mba-concept-flashcards` |
| T-3 | Review your error log | `mba/mba-error-log` |
| T-2 | One timed practice exam with a study partner | `mba/mba-exam-prep` |
| T-1 | Light review, sleep | |

## 9. Self-test

<!-- Guidance: Answer in writing without notes; the answer key follows the reading list. -->

1. What is "marketing myopia", and who described it?
2. Name the five tests a useful segment must pass.
3. A segment scores 3.4 and another 3.6 on a weighted attractiveness model. Why might you still choose the first?
4. Name Aaker's (1991) dimensions of brand equity and Keller's (1993) two components of brand knowledge.
5. A brand has 70% awareness and 20% consideration. What problem does that suggest?
6. In the Bass model, what do $p$ and $q$ capture? With $p = 0.03$ and $q = 0.38$, when does adoption peak?
7. Name Rogers's five adopter categories and their approximate shares.
8. Compute CLV for annual margin USD 50, retention 80% and discount rate 10% (end-of-period convention).
9. Why should a budget be allocated by marginal rather than average return?
10. Name the three Ps Booms and Bitner added for services.
11. Why is a marketplace channel with a low CAC not necessarily attractive?
12. In the mini-case, why does the five-year NPV understate Fastpack's value?

## 10. Reading list

<!-- Guidance: Read the classic articles; use textbooks as reference, by chapter, alongside the cards. -->

**Classic works cited in this guide**

- Levitt, T. (1960). Marketing myopia. *Harvard Business Review*, 38(4), 45-56.
- Smith, W. R. (1956). Product differentiation and market segmentation as alternative marketing strategies.
  *Journal of Marketing*, 21(1), 3-8.
- McCarthy, E. J. (1960). *Basic Marketing: A Managerial Approach*. Richard D. Irwin.
- Rogers, E. M. (1962). *Diffusion of Innovations*. Free Press.
- Bass, F. M. (1969). A new product growth for model consumer durables. *Management Science*, 15(5), 215-227.
- Ries, A., and Trout, J. (1981). *Positioning: The Battle for Your Mind*. McGraw-Hill.
- Booms, B. H., and Bitner, M. J. (1981). Marketing strategies and organization structures for service firms. In
  J. H. Donnelly and W. R. George (Eds.), *Marketing of Services* (pp. 47-51). American Marketing Association.
- Aaker, D. A. (1991). *Managing Brand Equity*. Free Press.
- Keller, K. L. (1993). Conceptualizing, measuring, and managing customer-based brand equity. *Journal of Marketing*,
  57(1), 1-22.
- Berger, P. D., and Nasr, N. I. (1998). Customer lifetime value: marketing models and applications. *Journal of
  Interactive Marketing*, 12(1), 17-30.
- Gupta, S., Lehmann, D. R., and Stuart, J. A. (2004). Valuing customers. *Journal of Marketing Research*, 41(1),
  7-18.
- Christensen, C. M., Hall, T., Dillon, K., and Duncan, D. S. (2016). Know your customers' "jobs to be done".
  *Harvard Business Review*, 94(9).

**Textbooks and further reading (by name only)**

- Kotler and Keller, *Marketing Management*.
- Keller, *Strategic Brand Management*.
- Moore, *Crossing the Chasm*.
- Farris, Bendle, Pfeifer and Reibstein, *Marketing Metrics*.
- OpenStax, *Principles of Marketing* (free, CC BY-NC-SA 4.0, openstax.org).

## Answer key

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1. Defining a business by its product rather than by the customer need it serves, which blinds the firm to substitutes;
   Levitt (1960).
2. Measurable, substantial, accessible, differentiable, actionable.
3. Scores ignore competitive position and profit pools: if a strong rival owns the higher-scoring segment and the
   other has an open position the firm can win, the lower score can be the better choice (see
   `mba/mba-stp-positioning-card`).
4. Aaker: brand loyalty, name awareness, perceived quality, brand associations, other proprietary brand assets.
   Keller: brand awareness and brand image.
5. An image or relevance problem: people know the brand but do not see it as right for them. More awareness spending
   will not fix it.
6. $p$: external influence (innovation); $q$: word of mouth and imitation. $t^* = \ln(0.38/0.03)/0.41 = 6.19$ years.
7. Innovators 2.5%, early adopters 13.5%, early majority 34%, late majority 34%, laggards 16%.
8. $50 \times 0.8/(1.1 - 0.8) = 133.33$ (`=50*0.8/(1+0.1-0.8)`).
9. The average includes the early, high-return dollars; the decision is about the next dollar, which may earn much
   less in a saturated channel.
10. People, process, physical evidence.
11. Value depends on CLV, not CAC alone: in the mini-case marketplace customers are worth USD 17.65 against a CAC of
    USD 18, and the channel can erode price and brand.
12. Diffusion peaks after year 4 ($t^* = 4.23$), so a five-year window captures the launch cost but not most of the
    volume; repeat purchases and new-customer value are also excluded.

## Revision history

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## Standard and licence note

Structure aligned with the core marketing management course common to leading international MBA programmes and with
the competency areas used in business-school accreditation; it follows no single school's syllabus. Frameworks are
attributed to their original works (Levitt 1960; Smith 1956; McCarthy 1960; Rogers 1962; Bass 1969; Booms and Bitner
1981; Aaker 1991; Keller 1993; Gupta, Lehmann and Stuart 2004). The explanations, the Northfield Outdoor Co. mini-case,
its people, exhibits and teaching note are original and fictional; no published case, textbook text or exam question
is reproduced. The template is not affiliated with or endorsed by any business school, accreditation body or
publisher. Check your own syllabus for the topics and assessment your course requires. Template licence: MIT.