marketplace intro
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Copyright 2006 Ernest R. Cadotte
Introduction to Strategic Marketing
Copyright 2006 Ernest R. Cadotte
Marketplace is a fun way to learn about marketing!
• It is a marketing game.• It is learning by doing.• It brings to life marketing concepts, principles, and ways of
thinking.• It energizes the competitive spirit.
Copyright 2006 Ernest R. Cadotte
It is Realistic• You do what your real-life counterparts do
– Design brands– Design ad copy– Schedule media– Set selling prices – Hire and train sales people– Worry about profits
Copyright 2006 Ernest R. Cadotte
It is Organized
• The game scenario follows the logical process of starting up a new product line.
• You are guided through the decision-making process.• Detailed help files are available at the touch of a button.
Copyright 2006 Ernest R. Cadotte
How is the marketing game conducted?
• Teams are placed in a game scenario in which they start up and run a new marketing division.
• The opposition can be played out by computer-generated competitors or other student teams.
Copyright 2006 Ernest R. Cadotte
Objective is to profitably capture a dominant market position
Business Team Market
Opponent
Opponent
Opponent
Copyright 2006 Ernest R. Cadotte
Game Scenario
• You work for a large international electronics firm.• Corporate Headquarters wants to enter the personal computer business.
Copyright 2006 Ernest R. Cadotte
Game Scenario
• You have been selected to head up the new marketing division to sell computers into Asia, North America, and Western Europe.
• Several other international firms are entering the market at the same time.
Copyright 2006 Ernest R. Cadotte
Game Scenario• Your marketing strategy will be tightly focused on direct sales to business
customers.
– You will not sell to the home market or through retail stores.
– You will sell through company-owned sales offices in major metropolitan markets around the world.
Copyright 2006 Ernest R. Cadotte
Available Market Segments (Market Structure)
Price
Performance
Cost Cutter
WorkHorse
TravelerInnovator
Mercedes
Copyright 2006 Ernest R. Cadotte
Sales Office Options (12)
Copyright 2006 Ernest R. Cadotte
Marketing Team• Each team member assumes a tactical area of responsibility:
-Brand management
-Advertising
-Sales office management
-Overall leadership• Everyone is responsible for marketing research and profit management.
Copyright 2006 Ernest R. Cadotte
How Conducted?• At the outset of each quarter, you will receive information on the current situation.• The current situation is evaluated, strategy formulated, and tactics set in place.• Tactical decisions are fed into the marketplace simulator, along with decisions of
opponents.• Results of decisions are fed back to you.
Copyright 2006 Ernest R. Cadotte
Chronology of Events• Q1: Organize the team, name the company and contract for a survey of potential
customers.
• Q2: Analyze market information, establish strategic direction and set up shop
(design brands and set up sales offices).
Chronology of Events
• Q3: Test-market brands, prices, ad copy, media campaigns, sales staffing. • Q4: Study end user feedback, competition, and financial performance and
make adjustments in strategy.
Copyright 2006 Ernest R. Cadotte
Chronology of Events
• Q5: Prepare a one-year marketing plan. Present marketing plan to
Executive Board from Corporate Headquarters and obtain its approval.
Copyright 2006 Ernest R. Cadotte
• Q6 – Q8: Refine the marketing strategy– Introduce new brands with new R&D features.– Continue with market expansion by adding
advertising, sales people and new offices.– Study the market and financial data to
determine how to better meet customer needs and surpass the competition through brand design, pricing, advertising, and distribution.
Chronology of Events
Copyright 2006 Ernest R. Cadotte
Funding• The initial funding is 20,00,000 which is being invested by Corporate Headquarters
in 5,00,000 increments over the first 4 quarters.
• Corporate Headquarters will provide another 50,00,000 in Quarter 5 if it approves
your marketing plan for the second year.
Copyright 2006 Ernest R. Cadotte
Learning Strategy
Marketing simulations are a form of combative training where you pit your marketing skills against those of formidable opponents under the watchful eye of a training coach.
Copyright 2006 Ernest R. Cadotte
When we work strictly in our functional silos, we are like blind people trying to understand what an elephant is.
Please tell mewhat it is?
It’s a snake.It’s atree trunk.
It’s a sheetof rawhide. It’s a steel
tube.
Copyright 2006 Ernest R. Cadotte
With marketing simulations, you can crawl all over and under the marketing organization to see and understand the whole thing.
It is a marketing organization!
Brands
Distribution
ResearchPricing
Advertising
Copyright 2006 Ernest R. Cadotte
Learning Strategy:Learn by Doing
• You learn about all aspects of marketing by managing a simulated marketing department.
• The Marketplace scenario follows the life cycle of a new product.• Marketing decisions are introduced as they become relevant in the evolution of the
product.
Copyright 2006 Ernest R. Cadotte
Quarter 2 Establish Strategic Direction
Copyright 2006 Ernest R. Cadotte
Q2: Establish Strategic Direction• Analyze market information• Establish strategic direction
– Select 2 target segments– Decide on competitive posture
• Set up shop
– Develop distribution strategy• open initial sales offices for test market
– Design 2 brands, 1 for each target segment
Copyright 2006 Ernest R. Cadotte
How do you determine the design of each brand?
Copyright 2006 Ernest R. Cadotte
Customers Buy BenefitsNot Features
Copyright 2006 Ernest R. Cadotte
How far do you go in giving the customers what they
say they want?Is more speed, software applications, memory,
keys on the keyboard, etc. always valued?Could “more of some feature” even make a customer unhappy?
Copyright 2006 Ernest R. Cadotte
Learning Points for Quarter 2
• Market opportunity analysis• Segmentation and target marketing• Strategic and tactical planning• Game theory - competitive positioning
Copyright 2006 Ernest R. Cadotte
Learning Points for Quarter 2
• Brand design – Linking product features to customer benefits– Finding the customer’s response functions
Copyright 2006 Ernest R. Cadotte
Quarter 3 Go to Test Market
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