Carnegie Mellon University

Graduate School of Industrial Administration


70-381 : Marketing I 9 units

Fall 1998


Professor Srinivasa Prakhya




Lecture : Section I - 8.30 to 9.20 Monday & Wednesday (HH B131)

Section II - 9.30 to 10.20 Monday & Wednesday (SH 125)

Office Hours : Professor Srinivasa Prakhya (, GSIA 207, 268-5799)

Monday, Wednesday 11 am - 12 noon

Recitation : Section I - 8.30 to 9.20 Friday

A DH 2200


C PH 126A

Section II - 9.30 to 10.20 Friday

D SH 422

E SH 212


Recitation Leaders : Elina Petrova (

Nitin Mehta (

Tolga Akcura (





Course Schedule

Aug 24 Introduction

Aug 26 What is Marketing (Chapter 1)

Aug 28 Video Cases

Aug 31 Core Concepts (Chapter 1)

Sep 2 Strategic Planning (Chapter 2)

Sep 4 Recitation : Financial Analysis in Marketing

Sep 9 Strategic Planning (Chapter 2)

Sep 11 Recitation : Group Project (Marketing Plan)

Sep 14 Competitive stategies (Chapter 18)

Sep 16 Segmentation,Targeting and Positioning(Chapter 7)

Sep 18 Recitation : Pharmacia Upjohn - Case Discussion; Marketing Plan I due

Sep 21 Consumer Behavior (Chapter 5)

Sep 23 Business Buyer Behavior (Chapter 6)

Sep 25 Recitation : Exercises

Sep 28 Marketing Research (Chapter 4)

Sep 30 Product Strategy (Chapter 8)

Oct 2 Recitation : Exercises; Marketing Plan II due

Oct 5 Product Strategy (Chapter 8)

Oct 7 Midterm Review

Oct 9 Midterm Examination

Oct 14 New Product Development (Chapter 9); Southwest Airlines due

Oct 16 Recitation : Exercises

Oct 19 Pricing (Chapter 10)

Oct 21 Pricing (Chapter 10)

Oct 23 Recitation : Exercises; Dell Computer Corporation due

Oct 26 Pricing (Chapter 11)

Oct 28 Channels (Chapter 12)

Oct 30 Recitation : Exercises; Cima Mountaineering, Inc. due

Nov 2 Channels (Chapter 12)

Nov 4 Video Cases - Communications

Nov 6 Recitation : Exercises

Nov 9 Communications (Chapter 14)

Nov 11 Advertising, Sales Promotion and Public Relations (Chapter 15)

Nov 13 Recitation : QA session - Projects (Marketing Plan)

Nov 16 Project (Marketing Plan) Presentations

Nov 18 Project (Marketing Plan) Presentations

Nov 20 Project (Marketing Plan) Presentations

Nov 23 Project (Marketing Plan) Presentations

Nov 30 Project (Marketing Plan) Presentations

Dec 2 Ethics; Marketing and Society (Chapter 20)

Dec 4 Final Review

Dec 7 Final Examination



Course Information


This is the core marketing course for the GSIA Undergraduate Program and it also appeals to non-majors who have taken at least one previous business course. The course aims to provide a rigorous and comprehensive introduction to contemporary marketing practice. the specific objectives of the course are :

  1. To introduce students to the concepts used in modern marketing management
  2. To train students in the analysis of complex business situations
  3. To improve students' skill levels in making presentations and writing concisely.
  4. To introduce marketing research techniques to students.
  5. To provide experience in working as a team.


Principles of Marketing, Eighth Edition - Philip Kotler and Gary Armstrong, Prentice Hall.

Additional Readings

Regular reading of contemporary business periodicals such as Business Week, Fortune and The Wall Street Journal will be useful in assimilating the concepts dealt with in the course. The Hunt Library carries specialized publications, such as Advertising Age, American Demographics, and The Journal of Marketing, which could be referred to for specific information during project work.


Two lectures are scheduled every week on Mondays and Wednesdays. Recitations on Fridays will supplement the lectures. Participation in the regular classes and the recitations is essential for smooth learning. Class participation will contribute to the overall course grade.

Name Cards

The use of name cards during lectures and recitations is necessary for obtaining class participation credit.


Final grades will be assigned based on

  1. Exams (50 %) : midterm and final examinations will be conducted in class to test understanding of basic material. The midterm and final examinations will carry weights of 20 % and 30 % respectively.
  2. Case briefs (15 %) : three case briefs are required to be submitted on the indicated dates; late submissions will not be accepted. Students can work in groups of five for these assignments. Each case analysis is worth 5 % of the total grade. The brief should not exceed 4 pages in length (excluding appendices).
  3. Marketing Plan (25 %) : each student team (of five) is required to complete a marketing plan for an existing or hypothetical company and present the plan at the end of the semester in addition to submitting a written report. The length of the report is open; each group will make a ten minute presentation in class.
  4. Class Participation (10 %) : these points are to encourage preparation for and participation in class.
  5. Experiments : extra credit can be obtained by participating in experiments. A representative of the GSIA Behavioral Advisory Committee will make a presentation in class during the third or fourth week of the semester to provide details.

Note : Make up tests and change of due dates for assignments will not be considered except for medical reasons.



Student feedback is essential for the course to meet expectations and provide a valuable learning experience. Students are encouraged to provide informal feedback to the Instructor and Recitation leaders other than taking part in the Course and Instructor evaluations in class.


CASE ANALYSIS - Discussion Questions

Pharmacia & Upjohn, Inc.

  1. How would you characterize the various treatments for balding ? Why do people use these treatments ?
  2. How effective is Rogaine as a treatment for balding and for whom ?
  3. How will the buying process for nonprescription Rogaine differ from the buying process for prescription Rogaine ?
  4. Describe and explain the U.S. sales performance of Rogaine through 1995. Was the marketing objective of "maximizing" sales of Rogaine in the U.S. market achieved ?
  5. How realistic is the belief, expressed by Pharmacia & Upjohn officials, that nonprescription Rogaine (minoxidil) sales of $ 1 billion were possible over five years given the marketing program for the brand ?
  6. How might the loss of U.S. patent protection and marketing exclusivity enjoyed by Rogaine since its introduction and competition from generic products affect sales of the Rogaine brand ?
  7. Will the U.S. marketing strategy developed for nonprescription Rogaine prior to the FDA's recent rulings need to be modified ? If so, why ?

Dell Computer Corporation

  1. What are the strengths and weaknesses of Dell Computer Corporation ?
  2. From where does the ESL Business Unit obtain its revenues ?
  3. How would one describe the higher education market for computers ?
  4. How well does Dell's marketing approach "fit" the higher education market ?
  5. What should Dell do now, and why ?

Southwest Airlines

  1. How would you characterize the U.S. airline industry in the early 1990's ?
  2. How can the "economics" of the airline industry be used to explain the performance of individual airlines and the industry as a whole ?
  3. How is it that Southwest has been able to consistently grow and prosper in the U.S. passenger airline industry ?
  4. How would you describe United's goals, objectives and strategy for "Shuttle By United ?"
  5. How has Southwest responded to the "Shuttle By United" initiative ? What assesments can be made about the market and financial positions on competitive routes of Southwest and "Shuttle By United" based on the 1994 Fourth Quarter results ?
  6. Based on your assessments, how would you interpret United's decision to discontinue "Shuttle By United" service for the Oakland-Ontario market and to raise the one-way walk up first class and coach fare on all 14 "Shuttle by United" routes by $ 10.00 ?
  7. How should Southwest respond, if at all, to the "Shuttle By United" decision to change it's service and price ? Why ?


Cima Mountaineering, Inc.

  1. What is the financial condition of Cima mountaineering ?
  2. What is the current marketing situation at Cima mountaineering ?
  3. Appraise Margaret's proposal to enter the "week-ender" segment of the hiking market.
  4. Appraise Anthony's proposal to extend existing product lines.



Case briefs should be written in a professional tone, from the point of view of a consultant to the firm, giving best advice. Hedging and repetition of case facts should be avoided. The alternative courses of action that are possible should be analyzed and one chosen firmly. All the elements of the marketing mix should be considered in the analysis and recommendations. The discussion questions will help identify the main issues in the case. The following structure is to be adopted

Intoduction : Statement of the problem and decision to be made

Background : Summary of the situation

Recommendation : Suggested course of action with specifics and basis for recommendation

Assumptions: Assumptions made in arriving at the suggested course of action

Action : The steps that need to be taken immediately and in the near future.

Exhibits, as necessary, should be attached to the analysis. The analysis should not exceed four pages (single spacing) excluding exhibits.