Marketing

Marketing

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About the Unit

Marketing is critical for organic growth of a business and its central role is in creating, communicating, capturing and sustaining value for an organization. Marketing helps a firm in creating value by better understanding the needs of its customers and providing them with innovative products and services. This value is communicated through a variety of channels as well as through the firm's branding strategy. Effective management of customers and pricing allows the firm to capture part of the value it has created. Finally, by building an effective customer-centric organization a firm attempts to sustain value over time.

Our faculty addresses a broad array of topics in all of these areas. Our work attempts to get a better understanding of how consumers use information and make choices and how these choices affect the firm's strategy for new product development, customer relationship management, branding and other marketing efforts. We examine issues related to branding, business marketing, global marketing, distribution channels, pricing, direct and interactive marketing, sales management and return on marketing investment. Some of our faculty specializes in specific industries such as retailing, agribusiness, social enterprise, media, arts and entertainment.

There are several new developments in marketing that offer opportunities for us to make important contributions in the future. The current economic crisis is changing consumers' current and future purchase and consumption patterns. Search engines have changed the way consumers obtain information and make decisions and they are also dramatically changing the advertising industry. Social networks and user generated content have opened a new way for consumers to engage with each other as well as with brands and companies. There are significant changes in the attitudes of consumers and companies about social issues. Consumer preferences and choice of products are increasingly influenced by social factors. Companies are recognizing that there is a large market at the "bottom of the pyramid" and marketing to these consumers may require a new framework. These and related developments provide great opportunities for the marketing faculty to make a significant impact in the future.

Honoring Professor Emeritus Al Silk, HBS and Family Virtual Gathering (December 10, 2021)

Recent Publications

Thinking Outside the Wine Box (C): Mekanism and the Franz for Life Campaign

By: Tomomichi Amano, Elie Ofek, Mengjie Cheng and Amy Klopfenstein
  • May 2022 |
  • Supplement |
  • Faculty Research
This case reveals the events that took place after the conclusion of the cases “Thinking Outside the Wine Box (A-B): Mekanism and the Franz for Life Campaign.” After selecting a creative direction for the Franz for Life 2.0 campaign, independent advertising agency Mekanism must decide the campaign’s influencer marketing strategy as part of the media plan. Mekanism Chief Social Officer Brendan Gahan must review a proposed roster of social media influencers and decide which are likely to be the best ambassadors for the Franzia brand. Gahan also needs to decide how many influencers to contract, how much to pay them, how many pieces of content to commission, and what guidelines to provide.
Keywords: Marketing; Brands and Branding; Marketing Strategy; Digital Marketing; Social Marketing; Marketing Communications; Product Positioning; Advertising; Communication Strategy; Advertising Campaigns; Social Media; Food and Beverage Industry; Advertising Industry; United States
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Thinking Outside the Wine Box (B): Mekanism and the Franz for Life Campaign

By: Tomomichi Amano, Elie Ofek, Mengjie Cheng and Amy Klopfenstein
  • May 2022 |
  • Supplement |
  • Faculty Research
This case reveals the events that took place after the conclusion of the case “Thinking Outside the Wine Box (A): Mekanism and the Franz for Life Campaign.” After reviewing Mekanism’s pitches for the Franz for Life 2.0 campaign, TWG executives felt that the proposed storyboards were not the right direction for the campaign, and requested that Mekanism develop a second round of storyboards. At the conclusion of the (B) case, TWG leaders must decide whether to choose one of the new storyboard sets, revisit one of the previous ideas, or request yet another iteration of the pitch.
Keywords: Marketing; Brands and Branding; Marketing Strategy; Digital Marketing; Social Marketing; Marketing Communications; Product Positioning; Advertising; Communication Strategy; Advertising Campaigns; Social Media; Food and Beverage Industry; Advertising Industry; United States
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Thinking Outside the Wine Box (A): Mekanism and the Franz for Life Campaign

By: Tomomichi Amano, Elie Ofek, Mengjie Cheng and Amy Klopfenstein
  • May 2022 |
  • Case |
  • Faculty Research
This case provides an overview of “Franz for Life,” an advertising campaign that independent advertising agency Mekansim created and executed to revitalize the brand image of Franzia, a low-cost boxed wine. For several years, Franzia’s popularity declined among Millennial consumers, many of whom abandoned the brand for higher-priced wines as they grew older. In 2018, executives at The Wine Group (TWG), Franzia’s parent company, recruited Mekanism to change younger audiences’ perception of the brand. Mekanism developed the “Franz for Life” campaign based on the insight that Franzia was a brand meant to be enjoyed with friends throughout all stages of the post-college journey. In 2020, TWG decided to renew its relationship with Mekanism and launch “Franz for Life 2.0,” a second stage of the campaign that would build on the original campaign’s momentum, as well as focus on Generation Z consumers. The case describes how Mekanism developed the 1.0 campaign’s creative strategy, media budget allocation, influencer marketing efforts, and brand merchandising. At the conclusion of the case, the TWG team must respond to storyboards that Mekanism pitched to inform the creative direction for Franz for Life 2.0. Which, if any, of the storyboard represents the best path forward for Franzia? Should TWG executives request Mekanism to create additional options? Depending on the creative direction ultimately selected, how should Mekanism propose to allocate the 2.0 marketing budget across media options? More broadly, could Mekanism and the “Franz for Life” campaign help Franzia become an iconic brand?
Keywords: Marketing; Brands and Branding; Marketing Strategy; Digital Marketing; Social Marketing; Marketing Communications; Product Positioning; Food and Beverage Industry; Advertising Industry; United States
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Borusan CAT: Monetizing Prediction in the Age of AI (B)

By: Navid Mojir and Gamze Yucaoglu
  • May 2022 |
  • Supplement |
  • Faculty Research
Borusan Cat is an international distributor of Caterpillar heavy machines. In 2021, it had been three years since Ozgur Gunaydin (CEO) and Esra Durgun (Director of Strategy, Digitization, and Innovation) started working on Muneccim, the company’s predictive AI tool. While the prediction accuracy of the tool was on the rise, the sales team remained resistant to incorporating it into their sales approach. Gunaydin and Durgun knew that, to get the most out of Borusan Cat’s AI technology and help its customers adopt Muneccim’s predictions, a shift in employee mindset was essential. Growing impatient with the speed at which middle management was integrating Muneccim into their processes, they began weighing options for effecting cultural change. Should they continue to employ soft tactics to get buy-in from sales reps or had the time for that passed? Would it perhaps be better to add Muneccim-based sales into the metrics for calculating bonus payments? Durgun and Gunaydin knew that, without proper implementation, even the best technology would not create much value and time was of the essence if they aimed to stay ahead of the competition.
Keywords: AI and Machine Learning; Commercialization; Technology Adoption; Industrial Products Industry; Turkey; Middle East
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LOOP: Driving Change in Auto Insurance Pricing

By: Elie Ofek and Alicia Dadlani
  • May 2022 |
  • Case |
  • Faculty Research
John Henry and Carey Anne Nadeau, co-founders and co-CEOs of LOOP, an insurtech startup based in Austin, Texas, were on a mission to modernize the archaic $250 billion automobile insurance market. They sought to create equitably priced insurance by eliminating pricing factors that disproportionally affected people of color, such as credit score, income, and education. The company used sophisticated AI algorithms to analyze which roads were more prone to accidents and employed proprietary technology to track driving behavior. Moreover, the founders believed in providing a sense of community and in building a mission-driven brand that people loved, thereby altering the antagonist and distant relationship that existed between an insurance company and its customers. By the September 2021 Texas launch, the company had developed a waitlist of over 30,000 people. In March 2022, as the first policy term expired, the co-founders had to figure out which policyholders to renew and at what price to renew them. They also wondered if they could motivate drivers to become safer on the roads by investing in rewards and gamification. Going forward, by the end of 2022 Loop had plans to enter nine additional states with its revolutionary car insurance model, and contemplated removing several other pricing criteria that could be discriminatory, while incorporating metrics that might provide discounts to customers. Longer-term, the company needed to decide which strategic direction to pursue—whether to expand their fledgling company vertically by adding complementary insurance lines, like homeowners insurance, or expand horizontally to other financial services, like auto lending, that were plagued by structural biases against minorities. Given the recent lackluster performance of several high-profile insurtechs, Henry and Nadeau knew that, to achieve their goal of unseating the entrenched incumbents, they had to get these decisions right.
Keywords: AI and Machine Learning; Technological Innovation; Equality and Inequality; Prejudice and Bias; Insurance Industry; Financial Services Industry
Related

Companies Should Be Guided by Their Purpose and Values When Deciding Whether or Not to Exit Russia

By: Hubert Joly
  • Article |
  • Fortune
Related

The Freedom Fund (B)

By: V. Kasturi Rangan and Courtney Han
  • May 2022 |
  • Supplement |
  • Faculty Research
The Freedom Fund (B) case describes the management’s plan of how to use the windfall of $35 million granted by philanthropist Mackenzie Scott. The case also describes the process by which the decisions were arrived at.
Keywords: Philanthropy and Charitable Giving; Spending; Decision Making
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The Freedom Fund (A): Ending Modern Slavery

By: V. Kasturi Rangan and Courtney Han
  • May 2022 |
  • Case |
  • Faculty Research
The Freedom Fund founded in 2013 to end modern slavery had raised more than half its intended target (by 2025) of $200 million. In 2021, impressed by its decentralized-partnering style of operations, philanthropist MacKenzie Scott awarded the Fund a gift of $35 million over 5 years. The beauty of the gift was that it came with no strings attached. It was completely unrestricted for use the way the company’s management and staff deemed fit. Nick Grono, the organization’s first CEO was wrestling with the question of how to put the money to best use.
Keywords: Social Issues; Corporate Social Responsibility and Impact; Philanthropy and Charitable Giving; Spending; Decisions; India; Thailand; Ethiopia
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Contact Information

Marketing Unit
Harvard Business School
Morgan Hall
Soldiers Field
Boston, MA 02163
Marketing@hbs.edu