MARKSTRAT 3 A Marketing Simulation

1
MARKSTRAT 3 - A Marketing Simulation

• What is a marketing simulation? and Why use it?
• MS3 and other simulations are pedagogical tools
  that simulate the real world.
• The main objective in using such simulations is
  to provide the students an opportunity to learn
  and to practice the concepts, techniques and the
  decision-making process involved in managing a
  firms marketing activities.

2
MARKSTRAT 3 - An Introduction

• In the Markstrat world, each industry will have 5
  firms and each team is a firm.
• In our case, there will be 3 industries with 5
  firms each (for a total of 15 teams).

3
MARKSTRAT 3 - An Introduction

• In the Markstrat world, each industry will have 5
  firms and each team is a firm.
• In our case, there will be 2 industries with 5
  firms each (for a total of 10 teams).

4
MARKSTRAT 3 - An Introduction

• Although, you will be in direct competition only
  with the teams that belong to your industry, your
  class grade will depend on the overall
  performance of all teams.
• Do not discuss team strategies with ANY PERSON
  outside your team

5
MARKSTRAT 3 - An Introduction

• In the Markstrat world, the management of each
  firm is concerned with the firms strategies and
  decisions involved in each of the following
  areas
• Manufacturing
• Product Design
• New Product Introduction
• Brand Awareness
• Advertising Strategies
• Distribution Decisions
• Pricing Decisions
• Sales Force Strategies

6
MARKSTRAT 3 - An Introduction

• The goal of each team is to maximize your
  objectives (sales, market share and profits).
• The objectives cannot be achieved overnight.
  They require a systematic approach that involves
  considering and applying concepts learned earlier
  -- either in this class or outside.
• Learning occurs over time, and through
  acquisition and analysis of relevant additional
  information.

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What does it take to WIN?

• Team cooperation
• A thorough analysis of all relevant information
• A thorough evaluation of various possible
  strategic alternatives and the associated
  consequences
• An in-depth analysis of competitors situation
  and their current and future strategies

8
Issues To Remember

• Emphasis on Strategic Issues
• Importance of Analysis
• Group Time Allocation
• Input Errors
• Artificial Accuracy
• Role of the Administrator

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The Markstrat World

• Population -- 250 Million
• Monetary Unit -- MMU
• Symbol --
• Industry
• -- Consumer Durable Goods
• Product
• -- Electronic Entertainment Product

10
Consumer Segments

• The Buffs
• The Singles
• The Professionals
• The High Earners
• Others
• Not necessarily applicable for Vodites

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Products

• Product Categories
• start with SONITES
• you have the option to later introduce VODITES
• Brands
• At Period 0 each firm markets 2 brands
• You can modify, withdraw or introduce new
  brands
• At any time, a firm can market a maximum of 5
  brands

12
Branding Policy

• Brand Name Policy
• -- made of 4 characters
• -- for a Sonite brand the first character should
  be S
• -- the second character should be a vowel
  corresponding to the firm number (A, E, I, O, U)
• -- the third and fourth characters can be
  alpha-numeric and can be chosen at will by the
  firms
• -- each brand of a firm should have a distinct
  brand name
• e.g., SAZ3 SUMO SIBI SERO
• S0V8

13
Product Characteristics

• Sonite
• Weight
• Design
• Volume
• Maximum Frequency
• Power
• Vodite
• Autonomy
• Max. Frequency
• Diameter
• Design
• Weight

14
Channels

• Specialty Stores
• Department Stores
• Mass Merchandisers

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Other Decisions

• Sales Force
• Advertising
• Pricing
• Production
• Brand Modification/New Product Introduction
• R D
• Market Research