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 decisionmaking 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
Opponent Opponent

Business Team

Market

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)

Mercedes Traveler Innovator
Performance

Cost Cutter

Work Horse
Price
Copyright 2006 Ernest R. Cadotte

Sales Office Options

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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 placed. • 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).

Copyright 2006 Ernest R. Cadotte

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

Chronology of Events
• 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.

Copyright 2006 Ernest R. Cadotte

Chronology of Events
• Q9: Present Report to the Executive Board from Corporate Headquarters regarding.
– – – – – – Second year performance Deviations from plan Justification for departures Analysis of current market Plan for third year How well the division is prepared to compete in the future
Copyright 2006 Ernest R. Cadotte

The complete presentation is available to registered instructors.

Copyright 2006 Ernest R. Cadotte

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