New Product Marketing

BBUS 543                                                                                FALL 2006


Professor P.V. (Sundar) Balakrishnan                                     Room: UWB1-240

Email:                                            Phone: (425) 352-5384


ElectronicReserves (ER):


Course Objectives


The purpose of the course is to explore various issues and problems that are faced by managers making decisions in the marketing of new products and services.  The course is intended to: 

(1)   Acquaint students with the idea of a new product marketing process such as opportunity identification, concept selection, product design, pre-test and test marketing, launching and profit management;

(2)   Demonstrate the utility of formal models and approaches in addressing relevant problems involving new products with a greater focus on the use of these models.


The course would be very useful for those students interested in pursuing careers in marketing, consulting and general management.  This course is integrative and interdisciplinary — it builds on the background that you have already established in the other Business classes.  The focus here is on the development and implementation of both the tactical as well as the strategic aspects of marketing decisions. 


            To this end, the New Product Marketing course is a “laboratory” designed to provide you with an opportunity for integrating the various marketing concepts in the formulation of a coherent business decision.  This course should help to:

  1. Enrich your understanding of various marketing concepts; and
  2. Sharpen your familiarity with the problems facing Multi-Product, Multi-Market organizations.
  3. Gain a better appreciation of the challenges inherent in developing and implementing New Product marketing decisions in a complex environment.
  4. Understand the process for segmenting markets & to recognize differences in consumer needs.
  5. Employ Customer input in Designing New Products and Services.
  6. Understand the Diffusion of Innovations and Consumer Adoption Process.
  7. Forecast sales of new technologies and likelihood of successful launch.


LEARNING Philosophy:

            To achieve the objectives of this course, we will employ cases and a computer simulation as the pedagogical vehicles for learning by doing. 

This is an innovative course that can be a lot of fun.  However, the onus is on you and your group members to make sure that you get the most out of this unique class.



1.    The Marketing Game, (2002) by Mason, Charlotte H. & William D. Perreault, Richard D. Irwin. (TMG!) Book with CD-ROM. THIRD Edition.  McGraw-Hill.

ISBN: 0072513802.


  1. Case Packet:   Contains a set of Cases. (CP).

1, 2, 3 & 5 Available from UWB Book Store.


  1. Electronic Reserves Readings Packet. (ER)

4. Available from UWB Library’s Electronic Reserves


  1. Product Leadership: by Robert G. Cooper, Basic Books; ISBN: 046501433X; (2005). (C).  


5.       Marketing Engineering Software:  Marketing Engineering has three components – cases, a book and the software. The required cases are in your case packet (Volume 2).  The book is fairly advanced but useful for those who wish to study the additional material in greater depth.  The software, however, is critical for this course.  While we will make available the software in the Computer Lab, most students prefer to have to have their own copy for their machines at home.


a.       Marketing Engineering: Computer-Assisted Marketing Analysis and Planning, Revised Second Edition, by: Gary L. Lilien and Arvind Rangaswamy; Trafford Publishing  ISBN: 1-4120-2252-5 (Book Not Required)


b.      MktgEng Software: A one year license ($25) for the latest release of the MktgEng Software is available for purchase directly from their web site:





            The FINAL grade for this course will be based on your performance on a number of different criteria.  In this class, you will have some responsibility, as in the real world, for evaluating the work of the other groups.  The weights for the various criteria are as follows:


      Business Cases:(G)

            CASES (G1)                                                                                      30%

Computer Simulation + Quiz:(G2)                                              33%

Class Participation, Memo & Exercises                                   17%

Final Project & Paper (G3)                                                           20%




1.        You will work in DIFFERENT groups for the CASES and the COMPUTER SIMULATION.

2.       Please choose your group members with care.  Groups once formed will not be changed. 

3.       It is YOUR responsibility to make sure that all group work is equitably distributed.  I will NOT arbitrate group conflict (except in case of academic misconduct). 

4.       Please remember, group members are (partially) responsible for grading their peers. 




1.       Please DO NOT arrive late and/or leave early during Case Presentations.  These entries and exits are distracting for the presenting groups. If an early departure is absolutely necessary, please clear it with me at least one class period in advance. 


2.       You are expected to behave as professionals in everything from attire to speech.


3.       Constructive criticism is a necessary and integral part of this course.  You can expect to be constantly challenged, and, in turn, will be rewarded for challenging others.  However, all comments should be restricted to the issues of the case or game. 


4.       If you are NOT prepared to participate in the case day's discussion notify me PRIOR to the beginning of class to avoid any embarrassment.


5.       Please read your EMAIL periodically for relevant & critical information!


6.       Please complete the required information on your 3X5 picture card and return it as soon as possible.  On this card your class participation points will be recorded (from the time at which you choose to turn it in)!



1.       The Marketing Game!

·         Decisions Due

2.       Lectures, Discussions, Exercises



CASE Days:


·         REPORTS DUE


Lectures, Discussions, Exercises






TENTATIVE Schedule (subject to change)


         DATE                  TOPIC                                                              ASSIGNMENT



1.       10/2                                                              Course Overview       READ: Winning is Everything (C-Ch1)

                      Introduction to TMG! Simulation      The Marketing Game! Chapters 1, 2, 3, 5 and Appendix A




2.       10/4         Marketing Overview                        READ: A New Product Strategy (C-Ch7);

                                                                          Read: Power “Flops”; Melcher “Zima” (ER)

                                                                          Harrington Who's afraid of a new product?” 2003 (ER)

                     TMG First Round                          First Year Decisions due




3.       10/9        INDIVIDUAL Case                          Individual CASE:  Southwest Airlines (CP)

                     TMG First Round                          Second Year Decisions



4.       10/11       Market Entry Strategies                  Read: Yoffie, “Judo Strategy’ & “Balance” (ER)

                                                                                  Brown “New products from rented brains(ER)





5.       10/16       New Product Process  &                Read: What Separates Winners from Losers (C-Ch2)

                     Marketing Strategies                      Skim:Emshwiller “Coke's Soda Fountain Fizzles” (ER)

                                                                          Skim: Brooke “Japanese Toilets”; (ER)

                     TMG First Round                          Third Year Decisions




6.       10/18       Pricing New Products                     Case: Cumberland Metal

                                                                          Read: Fatis “Barry Bonds Tax”;

                                                                          Rochford “Generating and Screening Ideas” (ER)

                                                                          DUE: TMG! Mission/Vision Statement





7.       10/23       Lifetime Value of Customer            Read: Pine “Customers Forever”;  

                                                                                  Morton “Unprofitable Customer (ER);

                     Install MKTG ENG Software            Read: Installation Guide (MES-ER)    

              ***    TMG! SECOND ROUND                 First Year Decisions Due     ***

                                                                          DUE: Draft of TMG! Strategy



8.       10/25       Concept Evaluation                        TMG! Individual Quiz

                     Introduction to L&R Software          Read: Introduction to Software (MES-ER)



9.       10/30       Preference Analysis                       EXERCISE: Conglomerate’s PDA: (CP-2)

                     & Benefit Segmentation                 Read: Tutorial for Cluster Analysis (MES-ER)

                                                                                                  Read: McWilliamsMinding the Store…”;

                                                                                                            Loveman “Diamonds in Data Mine” (ER);

                     TMG! SECOND ROUND                 Second Year Decisions Due




10.   11/1         Presentation Case #1                     CASE: Optical Distortion (A) (CP)

                                                                          Read: Posner “Seeing Red” (ER)

                                                                                  Star “The Case of the Test Market Toss-up” (ER)




11.   11/6         Product & Service Design I            Exercise: Forte Hotel Design: (MES-ER)

                                                                          Read: Maremont, “Gillette MACH3”; “New Toothbrush” (ER)

                                                                                 Pringle “In Mobile Phones…” (ER)

                     TMG! SECOND ROUND                 Third Year Decisions Due




12.   11/8         Presentation CASE #2                    CASE:  Biopure (CP);

                                                                          Read: Wells “Have It Your Way”;

                                                                          McGovern “Bringing Customers into the Boardroom” (ER)

                                                                          DUE: TMG! Confidential Strategic Plan




13.      11/13      Product & Service Design II            Read: Balakrishnan “Evaluating Consumer Preferences.”(ER)

                                                                           Skim:”Triangulation in DSS: … for Product Design”(ER)

                                                                          Skim: Jain “Pricing patterns of Cell Phones” (ER)       

                      TMG! SECOND ROUND                 Fourth Year Decisions Due




14.      11/15      Pre-Test Marketing                         Skim: “Diluting Brand Beliefs…” (ER)
                Presentation Case #3                     CASE: Nestle Refrigerated Foods (CP)




15.   11/20       Sales Forecasting                          Skim: Mahajan “New Product Forecasting Models” (ER);

                                                                          Read: Estimating the Bass Model

                                                                          CASE: SONY Car Navigation System (CP)

                     TMG! SECOND ROUND                 Fifth Year Decisions Due 

                                                                          Last Period to Introduce Second Product





16.   11/22       TMG! Strategy Session                  Work on Project




17.   11/27       Presentation Case #4                     CASE: GOLFLOGIX (CP)

                                                                          Read: Child “Tesco Global”; (ER)

                     TMG! SECOND ROUND                 Sixth Year Decisions Due




18.   11/29       Managing the Brand &                    Read: Michaels “Airbus & Boeing for Iberia deal” (ER)

                     Hypercompetition                          Tauber “Brand Leverage Strategy:” (ER)

                                                                          McManus “No sacred cows” (ER)

                                                                          Christensen “Marketing Malpractice” (ER)





19.   12/4         TMG PRESENTATIONS                  Read: O Reilly,The secrets of..admired.companies”(ER)

                                                                                  Kim “Creating New Market Space” (ER)

                     TMG! SECOND ROUND                 Seventh Year Decisions Due (?)

                                                                          L.A. Memo Due




20.     12/6       Work on Project                                               





21.     12/11     Final Project Presentations             Final Paper Due





·               C-Ch#: Cooper’s Book –Chapter#

·               CP = Case packet Volume 1

·               CP-2 = Case packet Volume 2

·               ER = Electronic Reserves

·               MES-ER = Marketing-Engineering Software Related Text Materials on Electronic Reserves





I.  TMG! File Attachment:

1.    It is your individual responsibility to make sure that the submitted group decision file has the current date and time stamp.

2.    It must be Virus free and be of size 606 bytes.

3.    Please do ensure that the submitted file has the correct name for your group (e.g., PlanB3.TMG).  Please note that the default is a submission for group A1 (yes, that is correct!).

4.     Please place your decision file in the appropriate Network folder for that week on HERMES



·         Please email me the file as an attachment only if unable to connect to network (or in an emergency).  Ensure that the subject heading of the email clearly indicates the firm and decision period (eg., C4 Period-5). 


5.    The decisions are due in the Hermes folder by 8:00pm of day it is due (unless the instructor announces otherwise).






1.      Only those who signed the document will receive a grade on that piece of assignment work (you can assign a proxy to sign for you).

2.      All Reports turned in to me must be typed and signed by all members of the group.  It should be carefully edited.

a.      All reports that are submitted to the instructor must of be of the highest professional quality.

b.      Handwritten work and diagrams are not acceptable.  Text, Graphs, etc. must be laser printed and prepared using standard word-processing packages and spreadsheets.

c.      Points will be allocated for the quality of writing. We have a writing specialist to help you.

d.      Any work turned in must indicate (on the Title page) at a minimum the group number; names of the participating individuals, and their signatures.



III. Honor Code

Students are expected to abide by the Honor Code of the University of Washington.

Please see:

            In this course, that additionally entails that you are NOT allowed to consult any work done on the Harvard cases by others (including from other students or Internet sources).  Unless you have specific permission from the instructor, any violation of this will invite the most severe sanctions. 








              CASE ANALYSIS TEAMS                                                                        [E-LS]

                       1                   2                                                           

               Internal         Management          BOARD OF                                        Evaluation

CASE      Consultant       Team                   DIRECTORS                               STAKEHOLDERS


1-ODI             X1                 X2                             X3                                           [Y1, Y2]


2-Brita           Y1                 Y2                             Y3                                           [X1, X2]


3-Nestle         X3                 X1                             X2                                           [Y3]


4-GolfLogix   Y3                 Y1                             Y2                                           [X3]


About the Instructor

P.V. (Sundar) Balakrishnan obtained his Ph.D. in Marketing from The Wharton School of the University of Pennsylvania.  He also has an undergraduate degree in Engineering from I.I.T., a Masters’ in Industrial Engineering from the University of Texas at Arlington, and another Masters’ degree in Marketing from The Wharton School.

He is one of the members of the founding faculty of the Business Administration Program of the University of Washington, Bothell, and where he now is a full Professor. He has served in numerous administrative roles including being the Acting Director of the Business Program for a period of two years from 1998 to 2000, which included all responsibilities associated with the position of managing and running a business school involving both Strategic and day-to-day operational activities.  He was previously on the Marketing faculty in the College of Business at The Ohio State University.  He was most recently a visiting faculty member at the Graduate School of Business of The University of Chicago.

The substantive areas of Prof. Balakrishnan’s research are directed toward studying New Product Marketing & Strategy; Buyer-Seller Negotiations, Relationship Marketing, and Retail Locational Decisions.  Sundar’s research interests from a methodological standpoint are in working with Artificial Intelligence methodologies such as Neural Networks and Genetic Algorithms and developing his own DSS software for addressing business problems. He is the developer of NEGOTIAT, a negotiation training simulator, and the co-developer of GENESYS and PRODLINE software for product line designs.

His research papers have appeared in Management Science, Psychometrika, Journal of Consumer Research, Decision Support Systems, Journal of  Direct Marketing, IEEE Transactions on Man, Systems and Cybernetics, and the European Journal of Operational Research among others.  He has presented his research at numerous conferences nationally and internationally.  He also serves as a reviewer for many of the leading journals such as the Journal of Consumer Research, the Journal of Marketing and the Journal of Marketing Research and is a member of the editorial boards of Psychology and Marketing and the Journal of Product & Brand Management. He is a member of the American Marketing Association, INFORMS, and International Association of Conflict Management. 

He is listed among the Top 300 most prolific management scholars in a 1997 INFORMS survey based on publications over a ten year period.  He has been listed in MARQUIS' Who's Who in the MidWest, 23rd, 24th editions; Who's Who in the West, 26th edition; and in the Who's Who in America, 2004, 2005, and (the forthcoming) 2007 editions.

Prof. Balakrishnan has taught a number of different courses including Advanced Marketing Strategy, Marketing Management, Marketing Research, Business Marketing, Project & Operations Management.  He has developed new and innovative courses including Marketing Management Laboratory and Artificial Intelligence and Marketing Decision Support Systems.

He has taught courses and students at all levels ranging from Undergraduates to Graduates.  He has also taught in various Executive Education programs and company seminars in the United States, Europe, India, and Japan.  He has received outstanding teaching evaluations from students at all levels. His recognitions for teaching excellence include being recognized as the Business Instructor of the Year by the Undergraduate Business students; voted the Best Professor by the MBA students; and has been a four time nominee or finalist for the University's Distinguished Teaching Award.