January 7th, 2005


Wharton | 3rd Semester

What a difference a night makes! I am back to school, back to being in love with school, last semester's grades are in, и даже на работе приятные новости в кои-то веки (я уже по-моему всем, кому можно про работу нажаловалась - по видимости, сработало).

Just finished up our first lecture - marketing. It dovetails nicely into the L'Oreal marketing competition we are doing, with all of the different components (customer segmentation, brand positioning, channel distribution, price wars) being formalized and making sense. We did some cool cases - the ExxonMobil pricing (the official policy for them is to not match competitors on price if the difference is 1 or 2 cents; their marketing studies also seem to be responsible for the 9/10 cent pricing, which alone accounted for $3 billion in profits for the gas industry); the political campaigns (radicals win primaries, but centrists win elections - which makes it harder for the "right" dems to win). Discussed the disastrous implications of Delta's announced 50% price cuts - this is not supposed to work, unless they are working towards a government bailout! Need to read up on it - at least I should be able to benefit from the cheaper fares.

At the end the professor told us that he designed the Exec MBA pricing and marketing strategy for Columbia and proceeded to convince us why the high price is so great. Basically, EMBA is a "luxury good" - the higher the price, the more prestigious it is, the more you sell...