Volume 1, Number 3

on . Posted in Instructor Newsletters

Marketing Engineering News

Welcome to the third issue of Marketing Engineering News. As the Fall semester passes, we gear up for another busy Spring. We are pleased to report some new developments in ME>XL as well as provide information on the latest release of ME>XL. As always, we are keen to get your feedback.

This issue contains:

  • ME>XL News:
    • Release 1.4 is now available. This release is primarily a minor bug release which fixes a few cosmetic issues. Two new business cases (Convergys and Northern Aero) will be added to this release.
    • Discontinuation of channel.
    • Updated 2009 software pricing.
  • Instructor Forum: Prof. Gary Lilien shows how to combine two ME>XL models to provide more powerful insights.
  • A Student's Perspective: An ESSEC MBA Graduate talks about how ME>XL has helped him determine market potential for a new business idea.

To connect with us, please contact us through the support center.

Please pass this newsletter on to your colleagues who can subscribe by This email address is being protected from spambots. You need JavaScript enabled to view it..

All the best,
Gary Lilien, Penn State University
Arvind Rangaswamy, Penn State University

Arnaud De Bruyn, ESSEC Business School

Marketing Engineering for Excel News

Release 1.4, a maintenance release, is now available.

We are pleased to announce the availability of Marketing Engineering for Excel Release 1.4. This release includes


  • New Business Cases
    • Convergys (Customer Lifetime Value and GE Portfolio Matrix)
    • Northern Aero (Customer Lifetime Value)
  • Software Enhancements
    • Improvements in documentation and error messages
    • Minor corrections to software models


Marketing Engineering cases/software/text being discontinued from Study.Net distribution

With the introduction of Marketing Engineering for Excel software in 2007 and subsequent discontinuation of Marketing Engineering Classic v2.4, we will no longer be using the Study.Net channel to distribute materials. The new software is bundled with all cases and data sets and is available independently from the textbooks so it can be used with individual chapters from our books or with your own teaching material. The academic version of software is available for download and purchase from our website,, in a variety of license lengths to make it affordable for students who only need the software and cases for a short time. We welcome your feedback and suggestions as we strive to better support our academic partners.

Marketing Engineering for Excel – 2009 Pricing

When we first introduced Marketing Engineering for Excel a little over a year ago, we established an introductory 2007 price schedule which was casino great britain a 30% discount over our standard published academic rates (and over 95% off the commercial version price). Beginning in January 2009, we are reducing the discount on a six month license to the software. The 12 month license will remain the same price.

If you plan on purchasing a six month multi-user university license for the spring semester, you may order your software before the end of the year to take advantage of the introductory price discount. Your six month license will be valid from the start of class (not from the date of purchase).

Below is our 2009 academic pricing schedule:
Single User License:
6 Month License: $40
12 Month License: $50

University Purchased Multi-user License:

Number of Licenses


Number of Licenses













6 Month












12 Month













ME>XL Teaching Tip: Mix and Match Methods for Fun and Profit

Prof. Gary Lilien, Penn State University

One of the most powerful ways to grab students' and executives' attention with ME>XL is to demonstrate that the individual tools, while powerful in themselves, can be linked together to create more powerful insights than can be obtained with one tool alone. Some examples we will explore in future tips involve segmenting the part worth data in conjoint analysis (see Durr case), and segmenting perceptual data to identify market segments that see the market differently.

I use the ABB case to illustrate how to segment the market by switchability using multivariate choice models. In that case, each customer provides data that looks like:


After the case discussion, as throw-away, I ask if these data "remind the students of anything"? I then show them that if you rotate any individual's responses, you get a matrix that looks like this (eliminating the "Choice" row):


The students will now recognize that this looks like perceptual mapping data...and you can run a perceptual map that will show that customer 1 views the four brands as follows:


Once students get the idea, they can do positioning maps for individual customers, for groups of customers (perhaps by "brand last bought"), for the whole market (perhaps including a market share vector. But these extensions are icing on the cake--once students see the link, they will be more creative than you will in using multiple ME>XL models for greater insight.

Student Perspective of Marketing Engineering for Excel

Adrien Jorge, MBA Student, ESSEC Business School

In one of our classes, we used Marketing Engineering for Excel to study the market potential for a business idea we had. We wanted to import certain types of Vans (horse transportation) from Australia to Europe, and these specific products seemed to offer huge sales potential.

In Marketing Engineering for Excel, we mainly used segmentation and targeting to understand customers' preferences and profiles, and better understand the market structure. Eventually, we collected 700 surveys online (about 50 questions per survey) through emails and forums, and were able to identify a significant unmet demand and promising market niches.

The major strength of this software was that it was very easy to use, yet gave us a robust and almost scientific approach to marketing. Today, it's hard to imagine how we would have done without it.

Volume 1, Number 2

on . Posted in Instructor Newsletters

Marketing Engineering News

Welcome to the second issue of Marketing Engineering News. It has been an exciting time for us, as Marketing Engineering and Marketing Engineering for Excel (ME>XL) software have seen rapid uptake in the past semester. We are pleased to report some new developments in ME>XL as well as information on some new cases we are developing. We are keen to get your feedback on both.

This issue contains:

  • ME>XL News: Release 1.3 will be available in July '08. Among other things it will introduce the Latent Class option in the Customer Choice (Logit) model. Also, new cases have been posted for several other models. A webinar tailored to new Marketing Engineering instructors is being offered in August.
  • Instructor Forum: Prof. Dan Toy recounts his 20+ year journey with Marketing Engineering.
  • A Student's Perspective: An ESSEC MBA Graduate talks about how ME>XL has helped him launch his entrepreneurial venture.

To connect with us, please contact us through the support center.

Please pass this newsletter on to your colleagues who can subscribe by This email address is being protected from spambots. You need JavaScript enabled to view it..

All the best,
Gary Lilien, Penn State University 
Arvind Rangaswamy, Penn State University

Arnaud De Bruyn, ESSEC Business School 

Marketing Engineering for Excel News

Release 1.3, a maintenance release, available Friday, July 25.

  • Latent Class Segmentation within our Customer Choice model
  • Various maintenance enhancements

Webinar for New Instructors: The Marketing Engineering Solution

  • This webinar, being held August 13 at 11:00 a.m. EDT, will focus on new instructors who are contemplating a marketing analytics course in the fall.  We'll cover the text, software and resources available to help you plan your course.
  • For more information and to register, please visit our webinar page.


New Business Cases are being introduced for Fall 2008.

  • Blackberry Pearl ( Product Positioning)
  • Convergys (Customer Lifetime Value)
  • Ford Hybrid Cars (Bass, New Product Introduction)

Marketing Engineering in the Classroom: My 20+ Year Journey

Dan Toy, Professor of Marketing, California State University, Chico

My first experience using “marketing engineering” concepts in the classroom came in the early 1980s. At first, I was using several cases written by Darrell Clark, then a professor at the Harvard Business School, that incorporated decision models into Harvard type cases. Eventually, Darrell aggregated the cases to create a book focused on marketing analysis and decision making. This text included a spreadsheet software package called Lotus 123 that allowed students to incorporate quantitative modeling into their case solutions. I used Darrell’s book in a marketing analysis course for both a second year MBA class and for an undergraduate class for business honor students. I became a firm believer in the models-based approach and have been using this approach to teach marketing concepts ever since.

Darrell’s marketing analysis text was the prototype for the original Lilien and Rangaswamy text on marketing engineering. I was one of the early adopters of the Lilien and Rangaswamy text “Marketing Engineering” when it was first published in 1998. I used the text in a Marketing Management graduate class as well as a senior level undergraduate class. The first two versions of the text were difficult reading for students in both classes, but I always emphasized a conceptual, rather than mathematical, understanding of the marketing engineering material. Both classes were very successful in terms of both student learning and student feedback.

I am now using the most current marketing engineering text, Principles of Marketing Engineering, along with the new Excel-based software, a marked improvement over the previous software in terms of ease-of-use. During a 15-week semester I assign 13 cases. I also have three exams in the course: two “midterms” and a comprehensive final. The cases are analyzed by student teams. Each team is responsible for presenting two cases and writing up all 13 of the assigned cases. This format requires teams to be prepared to discuss each of the cases every week of the class. Because every student in the class analyzes all of the cases, in depth discussions about each student case presentation are central and important parts of the course and the learning experience.

Here’s how I run my classes: A typical three hour class includes a one to two hour discussion of a marketing issue and a related marketing engineering tool followed by an exploration of the next case due, where we talk about how the marketing engineering tool can be used to help solve the case problem. I use extensive Power Point presentations to help students understand how each marketing engineering tool works in general and more specifically, how it can be used to help solve the case problem. These presentations make it possible for students to more efficiently and effectively solve the problems presented in the marketing case. Before I developed these Power Point presentations, I spent a considerable amount of time helping students with the cases. Now, students have few questions about how to analyze the cases and they feel confident doing their analyses without my intervention. Depending on class size, I have either one or two team presentations for each case. After each presentation (limited to 25 – 30 minutes) the class critiques the analysis of the presenting team. We then start the discussion of the next marketing engineering concept.

While most students feel this class is the toughest MBA course they take, their overall evaluation of the class is always very positive. Most importantly, they really enjoy the hands on, quantitative approach to solving marketing issues and appreciate the fact that the course provides both concepts and tools they can apply outside the classroom. The marketing engineering class is my favorite class to teach and I find it just about impossible to go back to teaching marketing using more traditional lecture or case-discussion approaches.

I would be happy to share my experiences and detailed recommendations with other instructors contemplating their Marketing Engineering journeys of their own. My friends know that I am an avid mountain climber and the analogy with marketing engineering is clear in my mind--while the path is steep at times, the view from the top makes the journey more than worthwhile.

Student Perspective of Marketing Engineering for Excel

Lionel ChouraquiESSEC MBA Graduate, 2008

I had a chance to use Marketing Engineering for Excel while I was working on a term project for one of my courses at ESSEC Business School, and I applied that tool to an entrepreneurial venture I was involved in. At the time, I was working on launching a new offer on the education market in Paris, and used that course assignment to conduct additional market research. We mainly used the customer choice component of Marketing Engineering for Excel, which helped us understand what really matters for a prospective student. Indeed, if you ask if professors’ reputation matters, they will say yes. If you ask if location of the school matters, they will say yes. If you ask if the tuition fee matters, they will say yes again. The challenge of our analysis with Marketing Engineering for Excel was to understand the true, key drivers of students’ choices, to help us build a better offer for the market, and of course focus our communication efforts.

The software was really all-inclusive, and once the tutorial was read, very easy to use. We ran into some problems at first (real data can be messy sometimes), but all in all, the experience was positive and very enriching. My partners and I are launching our company this summer.

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