General Hints for Analyzing, Writing Up, and Learning from Cases in Marketing Management Gary M.

Grikscheit and William L. Moore

If this is your first experience with the case method, you should be excited! For a student of business, nothing is more important than understanding how to apply business principles in real situations. This note introduces you to the case method as it will be practiced in this class and gives you hints on how you can make it an effective learning experience. What is a case? A case captures business issues for analysis. You read about a real business challenge, think about it in-depth, and develop potential solutions. C. Roland Christensen of the Harvard Business School writes: "A case is a partial, historical, clinical study which has confronted a practicing administrator or managerial group. Presented in narrative form to encourage student involvement, it provides data - substantive and process - essential to an analysis of a specific situation for the forming of alternative action programs, and for their implementation recognizing the complexity and ambiguity of the practical world." 1 A case attempts to provide you with a situation faced by a manager, including its contradictions and ambiguity. The real world can be complex. Some instructors treat cases in different ways. We treat each case as self-contained. That is, we see no need to go to the library to learn more about the industry, find out what
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C. Roland Christensen (1987), Teaching and the Case Method, Harvard Business School Publishing Division.

happened, or update the situation. In this class, the discussion will center on issues presented in the cases. If there is no information on foreign markets, we will not discuss international expansion. Furthermore, we will focus on the protagonist and his or her problems and constraints. Other instructors will have different interpretations. Why use cases? If the objective of education is to learn to apply concepts, solve problems, or develop judgment, cases are more appropriate than lectures. There are several reasons for using cases as an instructional vehicle in this class. Using cases gives students practice in applying concepts to real world situations. We think the best way to learn marketing is through practice. Many concepts in marketing such as market segmentation and product positioning are pretty straightforward, but a high proportion of business failures are marketing related. We don't think this occurs because people do not understand the concepts. We think it happens because they do not apply them in an intelligent and creative way. The only way to learn to do this is through practice. Cases provide a relatively realistic way to look at a number of decisions in a variety of situations. For example, we will study cases based on products and services aimed at both consumer and industrial target markets in domestic and international settings. Some products are commodities and others are one of a kind. We will make similar marketing decisions and pricing decisions for example, in a number of situations and from this we will derive general principles about how to make a pricing decision. A second reason for using cases is to give you the opportunity to develop your communication and interpersonal skills. Few recruiters complain about your skills in basic

marketing, finance, or quantitative analysis, but there is almost universal agreement that most BAs/MBAs can't communicate either verbally or in writing, and few listen very well. Communicating is just as important as the content and analytical skills you pick up. Additionally, cases give you a chance to develop a constellation of other skills such as creativity, independent thinking, judgment about real-world phenomena, innovativeness, and problem solving skills. Finally, cases expose you to many different industries, and potential jobs, as well as expand your general business knowledge. What are the implications of this method? As mentioned before, the case method is a very different kind of learning experience than a lecture method. First, you need to assume greater responsibility for your education. In a lecture course the teacher sets the agenda: which topics will be covered, what the order will be, and how much time will be spent on each. Your job is to listen, take notes, think about it, and regurgitate it back on a test. If you are not sure if something is important, you can raise your hand and ask if it is going to be on the test. In a case discussion, we will determine the agenda jointly and on the fly. We will come to class with our own analysis plans, but the agenda of the class depends on who speaks at various times - it is unpredictable. Discussions are harder to follow than lectures, but often reward us with greater in-depth knowledge. To be part of the discussion, you need to come prepared with your own analysis of the problem and set of recommendations. We cannot learn how to solve marketing problems just by listening to others. This is not a spectator sport. Many people say the break-even or other

financial calculations look so easy and logical when someone else does them, but they can't do them on their own. You have to practice them. The case discussion method will give you opportunities to practice such skills. However, your individual preparation is not sufficient either. You can learn much more by testing your ideas and comparing them to those of your classmates. You owe it to the rest of the class to contribute your ideas to the discussion so others can learn from you. So, case learning requires a combination of preparation, testing, contributing, and listening. Probably the hardest thing about a discussion class is that you have to listen even though your grade depends on the quality and quantity of what you say. We can have a lot of excitement when everyone presents their own ideas, but we cannot have a discussion without listening. With 40 people, you will spend on average 2.5% of the time talking and 97.5% of the time listening. Making the best use of that listening time is important. Not only is listening complicated by grades, but a discussion is never as neatly organized as a lecture. However, this is a more natural way to learn than through lectures. From time to time we may provide certain frameworks or ways of looking at problems. However, we are reluctant to do this, partly because you learn better when you come up with your own framework. Also, there is the tendency for students to use frameworks suggested by professors, not because they like them but because they think it will lead to a better grade. We have had students ask us, "Just tell me what to do and I will do it," but that is not the way either because then you will not know how to develop a framework yourself. A second implication of the discussion format is risk. In most classes you do not have to speak up. The instructor may be the only person who sees your answers on a test. Here,

everyone in the class will be listening to your comments. This can be pretty scary. In football, the announcer says that when you throw a pass three things can happen and two of them are bad. Similarly, when you make a comment in class, the class may take it and run with it, it may be ignored, or other members may even disagree and attempt to kill it. This classroom needs to be a place where we can voice our opinions and take chances without fear because fear is one of the biggest barriers to creative thinking - in fact thinking of any kind. We want to make this classroom as safe a place as possible without tolerating sloppy comments. We want to see discussions about ideas, but we do not want to see attacks on other people. We might think of comments as tentative ideas that have been offered for our consideration. We can learn just as much from comments that are off the mark as those that are absolutely right. Similarly, comments that disparage any ethnicity, race, religious group, gender, or sexual orientation have no place in the classroom. Laughs at others expense is not worth it. As you might guess by now, a third difference is that classes taught by the case method require more work than lecture classes. It is much easier to read a chapter and listen to someone lecture than it is to prepare a case and defend your views in front of the rest of the class. However, if we are successful, you will learn more than is possible through other methods and it will be worth your time. Case Preparation 1. The most important part of solving a case is determining what the problem is and what decisions have to be made. If this step is not done correctly, then much of the rest of your effort will be wasted. Read the case quickly. Skim through and get a preliminary sense of

the major issues: who is the protagonist, what is the situation, and what decisions have to be made? Many times these decisions are stated in the first or last paragraph of the case. 2. Then read the case more carefully noting the most important information, unresolved issues, and inconsistencies. Clarify the issues and determine what action must be taken. 3. Based on the preliminary view developed in Step 1 and the more in-depth thinking analysis in Step 2, decide what decisions the protagonist has to make; on what issues does s/he have to make recommendations? Determine what factors should be considered when making these decisions? Analyze these factors thoroughly. Make well-informed assumptions about missing information. Usually there are more decisions than you can adequately analyze or we can discuss in class, concentrate on the two to four most important ones. If the solutions to some of the important decisions are too obvious, concentrate on some of the less important ones. Generate at least two good alternative solutions for each decision. Next, these alternatives need to be analyzed and decisions need to be made. Rather than attempting to list all of the possible areas that might be considered in this phase, we will focus on a small number that are usually, but not always, very important. a. Look at the various market segments (not only final customers, but intermediaries as well). What do they want? How large are they? Which segments are growing? b. Identify your major competitors. What are they offering? What can you do to top that? How will they respond? Sometimes these comparisons can be made quantitatively, other times comparisons will be more subjective. In any case, make a judgment about where you stand (in the customer's eyes) relative to the competition. c. Much of the time these first two steps will tell you a lot about

i. ii. iii.

Where to focus your efforts, i.e., product/market selection. How to position your product or service. The offer that will create that position including the product or service, price, and the message sent to your customers.

iv.

The level of support you want to give to the offer, i.e., your expenditures on distribution and communication.

v.

Your expected sales or market share with various strategies.

d. Finally, look at the economics i. ii. Always calculate contribution margins. Are they large enough to increase your fixed costs (e.g., advertising, size of sales force, R&D expenditures, etc.)? iii. iv. What is your break-even point? Given the previous analysis, are you likely to hit that volume?

4. Formulate a plan of action for the protagonist. Make sure this plan takes account of the protagonist's position in the organization, other members of the organization, and other constraints encountered in this situation. 5. Meet with your study group to discuss everyone's recommendations and rationale. Learning from Cases Learning has to take place at three points in time for a case to be an effective learning experience. Prior to the class discussion, either individually or in small groups, the case needs to be thoroughly analyzed. Group discussion is much more beneficial after tentative solutions have

been reached individually. Approximately 3/4 of preparation time should be spent individually. This is the time to practice applying the concepts of the course. During the class discussion is the time to test how well your arguments and analyses hold up to the questions of your classmates and instructor. This is also the time to learn from other students' comments - how did they approach the problem, what analyses did they perform, how did their solution compare to yours, what did they think of that you did not? Learning during these two phases occurs almost automatically for most good students. Learning after the class discussion requires special effort and is seldom done to the extent it should be. First, after every case, review your case notes, the class discussion, and our summary comments. Ask yourself: i. ii. iii. Did you focus on the right decisions/alternatives? What did you consider when making your decisions? Did you follow the concepts presented in class and the readings?

Next, you need to consider how the major decision(s) was made. Compare the factors that were considered in this case with those of previous cases. For example, many cases deal with product/market selection (or pricing); figure out what you should consider when making product/market choices (or when setting pricing strategies). Written Cases 1. Remember, we are the customers and your classmates are the competition. Think of what we want. How do you market your analysis and ideas? 2. Write your report in the form of a business analysis. Address it to the appropriate person in the company - usually the protagonist's boss. You may use any format you choose; however,

we recommend you start with a short introduction, stating the purpose and the scope of the paper. The body of the paper should contain a very tight analysis of the major issues in the case and reveal why you made your recommendations, rather than other good alternatives. Then, briefly summarize. The first page should be a title page. Do not put your write-up in a folder or a binder. 3. Do not make the papers too wordy (there is a 900 word limit).A complete analysis must be provided. All of the analysis should be in the analysis section. a. Try not to include details that do not bear on the decision or implementation (e.g., leave out company history unless relevant.) b. Write the bulk of the analysis, using sentences i. A few bullets may be used c. Break paper up into titled subsections. 4. Don't leave the reader in suspense - organize your argument to be effective and to make sense. a. Be concise! b. Put your recommendations at the end - show clearly the logic on which your recommendations are based. (No new analysis should be introduced in the recommendations.) c. Don't just state facts, but draw conclusions. For example, after discussing strengths and weaknesses, decide whether the strengths outweigh the weaknesses. d. Complete your analysis and understand your logic before you attempt to write your paper. If you do not understand your argument before you write, you can not write. If

you understand your argument, you can leave out material that does not directly advance your position. 5. Make appropriate use of appendices. a. They are not to be used for hidden additions, i.e., don't say "the reasons for choosing alternative one are in Appendix 2." b. Put assumptions in appendices. c. Put financial calculations in appendices (e.g., the break even point when selling through OEM's is 59 units a year (Appendix 1).) 6. Where appropriate, quantify your answers and give financial implications of your decisions. a. How attractive is your product to the customers: b. What is the break even volume? Given the competition can you achieve that level? c. Do proformas where possible - link them to your plan - if you are going to double advertising, let that be reflected in the figures. 7. Finally, intelligently and creatively apply the marketing principles you have learned here. Specifically, observe the three principles of marketing, competitor analysis, and elements of a complete marketing strategy.

Missed Class Write-Ups Each of the cases is included for a specific reason and you cannot "make up" a case discussion by reading someone else's notes. You need to present your analysis and let someone else react to it. Within this framework, please maximize your thinking and minimize your writing. Your missed class write-up should be similar to a good set of class preparation notes in

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memo format. Write the memo to us. Assume we are familiar with the case. In approximately two pages, present your analysis, state your recommended course of action and the reasons why you chose it. Include a couple of exhibits including a B/E or a proforma income statement. Conclusion Cases provide business students with the opportunity to practice decision making skills based on analysis of real situations, application of relevant business principles, and finally reaching conclusions. In addition, case discussions and written assignments give students the chance to polish communication skills, much prized by employers. Learning in the case method environment is more like participating in a business meeting, than attending a lecture. It offers a superior learning opportunity, but also demands greater responsibility. Preparation is required before class, attentive listening and participation facilitates learning during class, and reflection on what was learned maximizes learning after class. Written cases give students a chance to hone their writing skills, especially organizing solid arguments. Finally, missed class sessions are erased by sharing you class preparation notes. This applies to both cases and readings. *** The case method of instruction confronts future practitioners with the same kinds of ambiguous problems they will face in their professional lives. *** Revised August, 2005 N:\CASE.notefour

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