Fluent Essays

Marketplace Live Simulation Assignment Guidelines The simulated marketing game tests the fundamental concepts learned throughout the course. Some important things to know about this learning activity: · It is learning by doing - that means that it is OK to make mistakes as long as you learn from them! The game is designed to reward improvements in decision-making in later quarters · It brings to life marketing concepts, principles, and ways of thinking. This is very different than an exam in that there is not a “correct” answer. There are better decisions than others and you will see that translate to your performance measures. · This game energizes the competitive spirit - have fun learning! Watch the following orientation video to familiarize yourself with the simulation background. Key Deadlines · You will be playing the game individually (you will see references to a team here and there as the game can be played in teams but our class is not using this functionality) · The game is set for 6 quarters or decision rounds, with each round taking about 30 minutes to 90 minutes to complete. · The rounds increase in complexity - early on you only make a few decisions as you become familiar with the scenario and software. Later rounds involve many decisions. · Just like in life, there are no do-overs - all you can do is adjust and move forward. · Here is the schedule that we will follow this semester - you can submit your decisions ahead of schedule (and make changes until the date/time decisions are processed*), however, you will not be able to review the results of your rounds until after the due date has passed: Round Section 02 (Mondays) Section 03 (Wednesdays) Quarter 1 (Module 3) 10/10/21 10/12/21 Quarter 2 (Module 4) 10/24/21 10/26/21 Quarter 3 (Module 5) 10/31/21 11/2/21 Quarter 4 (Module 6) 11/14/21 11/16/21 Quarter 5 (Module 7) 11/28/21 11/30/21 Quarter 6 (Module 8) 12/5/21 12/7/21 *Rounds are due at the end of the day on the corresponding date. The simulation software does not allow me to specify a processing time of 11:59 pm so you will see that the time shows as 11:45 pm instead. The reason for this time is to avoid confusion (if I choose midnight the date will show as the following day which will prompt *some* students to ask at what time - noon or midnight?). So, your decisions are not considered late until after 11:59 pm, however, all decisions submitted before the processing time will be processed by 11:45 pm. Any decisions submitted after that are processed at the time of submission. Game scenario You are heading the marketing division of a large international bicycle firm. Headquarters wants to enter a 3D printed, carbon fiber bicycle business. Your task is to launch this division with a focus on direct sales to consumers via company-owned outlets in four major markets around the world. Several other international firms are expected to enter the market at the same time. 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. At the outset of each quarter, you’ll 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 the decisions of opponents. Results of decisions are fed back to you. The objective is to profitably capture a dominant market position - your competition is not perfect but they are trying to gain market share over you. You should prepare by reading the background information on the simulation carefully. These are good areas to review for your notes: · Welcome to the marketplace: this tab orients you to the scenario that you are entering in the simulation · Virtual Business World: this is an overview of the four geographical markets, the current state of the carbon fiber bicycle market, and explains the three market segments among bicycle buyers · Overview of Activities: introduces you to the decisions you will be making throughout the six quarters of the simulation · How to Succeed: highlights key ideas to do well in the simulation · Marketing Research: there are three tabs that you must review carefully! · Customer Needs: provides data about the various needs/wants of the three market segments · Price Willing to Pay: provides data on the segments willingness to pay · Market Potential: provides data on the potential demand by region Market Segments There are three market segments with very different needs and wants that cannot be served with the same marketing mix: 1. The Recreation segment is looking for fun and a little exercise 2. The Mountain segment wants a bike that can be taken off-road 3. The Speed segment is looking for the lightest, fastest, most aerodynamic bike There are trade-offs among the market segments - not one of them is best. However, you can develop a winning strategy for any of the three (or all). The key to success in this game is to understand the needs and wants of your market segment and match it with a suitable marketing mix. *There is no ONE strategy to win. Many strategies, if properly executed, can lead to prosperity. Simulation Timeline The game is designed to become increasingly complex. In the beginning, decisions are simple and focused on one segment and one marketing mix. The goal of earlier quarters is for you to become familiar with the game scenario and platform. As you progress through the quarters your decisions grow in complexity. The game follows the PLC. As you seek to expand your presence globally, as well as increase the breadth and depth of your product mix, the set of decisions you need to make becomes increasingly complex. The competition also intensifies as other companies also try to establish themselves as market leaders. Course Engagement Activities The simulation has a series of built-in learning activities to help ensure that you are successfully engaging with the material. These activities are all graded based on completion and will count towards your course engagement grade. There are three separate types of activities that you must complete: Simulation Knowledge Checks These are quick 7-10 question quizzes that are assigned during the first four quarters to assess whether you are paying attention to the resources provided to familiarize yourself with the game and scenario. These quizzes are open book and the questions should highlight key knowledge that you should familiarize yourself with in order to be successful playing the game. As you advance through the first first four quarters, these questions will challenge you to gain knowledge of the market and your company’s place within it. Microsim Activities There are 3 micro simulations that will help you wrestle and apply product design, pricing, and profitability concepts to similar scenarios and prepare you to make decisions in your game. You will need to complete the included microsimulations in the respective quarters. These microsimulations are very helpful in preparing you for the decisions in the game: Online Learning Assessment (During Q5) You will complete this assessment on the Marketplace Live website when you advance to quarter 5. There is no time limit but it usually takes about 20-40 minutes to complete. The assessment is designed to test: 1. Knowledge of YOUR firm’s operations, market, and competition 2. Integrative skills – knowledge of all functions of the venture 3. Ability to draw important conclusions 4. Awareness of firm’s SWOT 5. Ability to anticipate competitor moves and one’s own position in the future You will not have access to the reports while you are completing the quiz. You will be asked questions about the following: · your firm’s internal operations, the competition, and the market. · your strengths, weaknesses, opportunities, and threats. · your position in the market in Q5 and your predictions for Q6. · specific information on your current business. The results will be made available after your quarter 4 decisions are processed (when you advance to Q6). The assessment is designed to be challenging. Obtaining a score of 80\% correct answers or above is unlikely. Your course engagement point is based on completion but you should aim to understand whether you do poorly or well on this assessment. Measuring Performance: Balanced Scorecard Corporate Headquarters will use a balanced scorecard to measure the marketing divisions performance. Your total business performance will be based upon: 1. Financial performance - your goal is to earn $4 million in cumulative net profit by the end of the game (quarter 6). Remember that based on the PLC you won’t have a profit until some time in the growth stage. 2. Marketing effectiveness - this metric measures how well you have been able to satisfy the needs of the customers as measured by the quality of your brands and ads (based on brand and ad judgments - scores over 80 are good) 3. Market performance - this score is based on your market share You will be able to see this performance score starting in quarter 3. This is how your balanced scorecard is calculated: Assignment Grade The assignment grade is based on the Cumulative Balanced Scorecard at the end of Quarter 6 (across Quarters 3-6). The cumulative balanced scorecard is an average of the last 4 quarters which means that your score from quarter 2 will NOT be included (so don’t dwell if your test market doesn’t do as well as you wanted - it will drop out of your final grade). Your grade is determined by distribution around the mean performance in the class (a curve). · Prior semester cumulative balanced scorecards have ranged from low 20s to high 80s (and a few exceptional performers in the 90s or even 100s). · Students have earned an average of 85\% of the points for this assignment with a cumulative balanced scorecard of 55. Some other fun facts about playing this game: · Avg cumulative net profit: $5.9 Million · Over the 2019-2020 academic year, one student lost $141K · Highest profit so far has been $20 Million · Nearly 20\% of students reached more than $10 million · On average, more than half the class achieves the goal of $4 Million *IMPORTANT: I will give you a safety net. If you reach a positive cumulative net profit by quarter six (that is at least $0 profits - you didn’t lose any money) you will automatically get at least 70\% of the points - have fun and enjoy a great learning experience! Simulation Game Tips The real challenge in the game, and in real-life ventures, is that you must continually make a large number of concurrent strategic and tactical decisions. There is no rest from the advertising decision or the market development decision while you solve the pricing decision. Part of the value of the Marketplace experience is learning to manage a dynamic and complex world. Each element of the marketing program affects every other element. Thus, weakness in product design can pull down the performance in the rest of the marketing strategy. On the other hand, strong performance in, for example, advertising can compensate to a certain degree for weakness in salesforce management. However, a singular strength will not compensate for multiple weaknesses. Overall, the most successful firms will be strong across the breadth of the marketing mix. Here are some tips to help you navigate the game: · Demand: The firm is a market maker, not a market taker. In Marketplace Live, demand does not exist for the taking. Demand is zero at the outset of the game. The firms must create the market. They must: — discover where customers are and locate a sales channel there — sell brands that customers want and at a price they are willing to pay — inform and persuade customers to buy through advertising — hire salespeople to go out and find customers and persuade them to buy *Brand design and pricing are the most important factors determining market demand within the Marketplace. All of the other variables modify the effect of these two variables. So if you find yourself with a low market share, evaluate your brand design and pricing decisions. · Competition: Competition is actually good for the firm. If a team is the only firm in the market, then there will be fewer customers learning about the product category. More competitors mean more customers can be persuaded to buy. · Segmentation: Effective segmentation is critical. Strategies targeting a segment are very specific. For example, a very simple version of a component might have high appeal to the Recreation segment but no appeal to the Speed segment because Speed customers favor a more sophisticated and faster version. Develop a differentiated strategy for each segment rather than a mass-market strategy designed to span multiple segments. · Branding: Customers buy benefits and not components - the attractiveness of a brand is built up by adding together a set of components that satisfy the expressed needs of the market. More of a feature will not always satisfy a customer; sometimes less is better. Sometimes, more can even reduce brand ratings. · As you progress through the game think of a portfolio of brands (compete on value and price). The market likes choices. You are more likely to get it right when faced with uncertainty if you offer a portfolio of products (good, better, and best brand principle). · Pricing: In the Marketplace, price is a very important driver of demand. However, not all markets are equally price sensitive. If you want to compete on price, then it will have its greatest impact in the lower performance segments. Price increases stifle demand and price decreases stimulate demand. · Advertising: beware of ad clutter (saying too much, using the max of 9 features in an ad). Some other considerations: · This is a brand new innovation - how important do you think the actual name is? Will potential customers recognize it on an ad? · Features with superlatives are always good: “Best at…” · Don’t only benchmark against yourself but do so against the competition! · Sales Management: Next to marketing effectiveness (brand/ad quality), distribution is key to volume (number of outlets). Use marginal analysis to deploy salespeople – all cities and segments are not equal. Having an equal number of salespeople in all cities or in targeted segments fails to recognize that the demand potential is different by city and segment. The number of sales employees in cities and segments should be based on the demand per salesperson and profits. Technical Issues The support team is available 7 days a week from 8 am - 9 pm Monday - Friday and 10 am - 7 pm on Saturday and Sunday, EST. Support email: [email protected] / Phone: +1 865-522-1946