Page 0 of 10Marketplace Live Simulation MGMT 311 - Marketing 2013 . 10 ................................................................... 7 1st Quarter (Module 3) Set up Shop ........................................................................................................................................................................................................................................................................................................................................................................................................................................................................ 2 Getting Started ........................................................ 2 Demo ................................................. 7 2nd Quarter (Module 4) Test Market ................................................................................................................................. 9 6th Quarter (Module 8) Refine Marketing Strategy ......................................... 5 Balanced Scorecard .................................. 7 Simulation Decisions ................................................... 6 Total Business Performance ........................................................................................................................................... 4 Tips and Suggestions ....................................................................................................................... 6 Marketing Effectiveness ............................................ 8 4th Quarter (Module 6) Market Expansion ............. 2 Ordering ............................................... Page 1 of 10 Table of Contents Introduction ........................................................................................................................................................... 9 5th Quarter (Module 7) Enhance the Market ........................................................................................................................................................................................................... 6 Market Performance .............................................................................................. 2 Marketplace Live Sign Up ........................ 4 Performance Evaluation ...... 4 Marketplace Support Information ................................................................................................................................................................................................................ 8 3rd Quarter (Module 5) Skillful Adjustment......................................................................... 3 Marketplace Simulation Schedule of Events ................................ 6 Financial Performance ..................................................................................................................................................................... You will be working individually. will begin in Module 3 and end in Module 9. Click on the <Sign up for a game> link. market opportunity analysis. your instructor will assign you a team number for login purposes. brand development. however. Below are the requirements for entering into the virtual business simulation game. Go to Marketplace Live "Student license number purchase". fast-paced market. Page 2 of 10 Introduction You will have the opportunity to practice some of the Marketing principals covered in MGMT 311 – Marketing utilizing the Marketplace Live Simulation. Click on the <Sign in as student>. 3. This simulation is specifically designed for marketing courses and has the participants actively managing a business. Getting Started Ordering You are required to purchase a license for the simulation. advertising. Your instructor will provide a Marketplace Game ID number during Module 1. The simulation (or game). Marketplace Live. 2. follow these steps to purchase your student license. 7. . You will have until Module 2 to sign up for the simulation. sales force decisions and simplified profit analysis. 6. such as. go to: Marketplace Live 5. Purchase your Marketplace Live license ($40). The Game ID number is required when you purchase a game license. Enter your student license number. This web based exercise challenges students to make realistic marketing and business decisions in a competitive. Enter your Game ID number and <Continue>. pricing. Attain your Marketplace Game ID number: provided by your instructor Purchase a student license number: purchased on the Marketplace Live website ($25) Sign up for the game with your license number Create an account with login name (your email address) and a password Marketplace Live Sign Up Once you have the Game ID number. sign up for the game and create your account: 1. You will be making decisions. 4. Next. There is a $25 (US Dollars) one-time fee for participation in this simulation. or find your game in the listings by school. Page 3 of 10 8. Enter the Game/Team ID to locate your game. Marketing. You may use this document and any other resources to answer the questions. 9. and Performance Evaluation. we strongly recommend that you keep a copy of both numbers on your computer desktop or in a file that you can retrieve easily. Sales. Next view the Group Demo Once you completed viewing the demos. Click "View Demo" for a thorough review of the simulation. IMPORTANT: Once you have obtained your student license number and The Marketplace Simulation ID number. Fill in the contact information and choose a password. go to your Canvas Course in Module 2 and complete the Marketplace Live Quiz. course and team. . Read through the Introduction to Marketing simulation. Demo Now go to Marketplace Live and select Introduction to Marketing. instructor. Go through the demo sections: Overview. Refine Marketing Strategy Marketplace Support Information If you experience problems during the simulation. Read and study all information carefully. not just time viewing content in each quarter.Test Market 5 3rd Quarter . Help Button: Before contacting the Marketplace Technical Support team. Be patient with each task. Read all tasks relating to each quarter carefully before completing required tasks.Market Expansion 7 5th Quarter . try your instructor first. Remember. Page 4 of 10 Marketplace Simulation Schedule of Events Module Activities 1 Getting Started Ordering License Watch Demonstrations 2 Marketplace Live Quiz 3 1st Quarter – Setting Up Shop 4 2nd Quarter . Productive time spent in modifying and making decisions is what counts.Skillful Adjustment 6 4th Quarter . 8 am to 9 pm. Hours: M–F. Technical Support: For technical difficulties or problems throughout the simulation contact Marketplace Support by emailing support@marketplace-simulation. please be sure to contact the Marketplace Live technical support. Your instructor will review your time spent in each quarter.com or call their toll free telephone number 1-865-522-1946. if in doubt of who to contact. Your instructor will be monitoring your progress. Sat & Sun 10 am – 7 pm EST Tips and Suggestions Initially view the demo several times to familiarize yourself with this simulation. first click the Help button located on the top navigation bar in the simulation. you are applying the basic principles of marketing you are learning each week from your textbook and incorporating them into this marketing simulation. The suggested time spent by each student in each quarter should be 40 minutes.Enhance the Market 8 6th Quarter . . keep in mind that you should introduce new brands in every quarter of the simulation. As such. Carefully analyze your initial reports on your first product and market before committing to higher expenses for additional sales offices. As a benchmark your brand ratings should be in the high 70's. staff. If you open a sales office in the 2nd quarter. In the beginning of the simulation. As a benchmark. students will end up with between 5 to 10 brands by the end of the simulation. One of the most important components of Marketplace Live is the balanced scorecard. (Which means. If you have questions related to Marketplace Live. Ad ratings are calculated on a 0 . The balanced scorecard is used extensively in industry. etc…) Brand ratings are calculated on a 0 . students should not plan on a high market share. Page 5 of 10 Deadlines . representing 15 percent of your final grade in the course. You will staff the office in the 2nd quarter. Do not get behind or miss a deadline. Become familiar with the balance scorecard early in the simulation. To accomplish this. you will find a detailed description of how the balanced scorecard is derived. As you complete each quarter.100 scale. Typically. always refer to the Help button or you may e-mail your instructor for additional help. your Ad ratings should be in the high 80's to 90's to start. Brand ratings are revealed during quarter number two. market and marketing results are calculated into your final grade for the simulation in this course. you . It provides a single number that can be compared between companies.Your instructor will preset all of the important deadlines for the marketing simulation. Performance Evaluation The balanced scorecard is the most important measure of your total performance. Final financial.100 scale. as there are at least four other firms competing against you. it is the main indicator for evaluating your performance in the market. Use the Final Check button to check on tasks that you have completed each quarter. approaching the 80's with demand at 1000 units or greater. The system will send a warning if you have not wrapped up a quarter. it is important to remember the following: Print your documents – The developers of the simulation strongly suggest that you print your completed tasks per quarter to keep track of your selections. you will not be able to staff the sales office opened. in the 1st quarter. Once you begin the simulation. you cannot staff it until the 3rd quarter. and advertisements. It is important that you manage the division to do well in all areas measured. Its popularity reflects the fact that it encourages managing executives to properly consider a host of performance criteria at the same time. You must wrap up each quarter before advancing to the next quarter. Working ahead to complete tasks before the scheduled deadlines is recommended. Below. Ad ratings are revealed during quarter number three. When you open a new sales office in a quarter you will not be able to staff it until the next quarter. Then.000. The firm's market share in two target segments is used to measure this demand creation ability. you will be measured on the division's financial performance. The following is a summary of the measure of the firm's Total Business Performance and its key performance indicators. Financial Performance Measures how well you have been able to create profits for Corporate Headquarters. The computational details follow. Total Business Performance = (Financial Performance + Market Performance + Marketing Effectiveness) / 3 If one of the performance measures is less than zero. market performance. Thus your score is based upon what percent of 20. Page 6 of 10 need to completely understand how your performance is measured. The score ranges from 0 to 100 and will depend upon the number of competitors. Balanced Scorecard Review your balanced scorecard for each quarter. try to find the weaknesses and correct them. work your strategy and tactics to enhance your performance across all measurement areas. To become a top manager. you must do well in all areas. Market Performance = Sum of market shares in targeted segments . Corporate Headquarters expects your division to earn at least 20. then the total overall performance measure will be zero. Your firm should be above average in all areas measured. Financial Performance = Firm's profit / 20. you will be very successful. A good score would be greater than 50.000.000. As the marketing manager. The net profit for the division is used to compute financial performance. If not. Here is how the performance criteria are computed. Total Business Performance A quantitative measure of the team’s ability to effectively manage the resources of the firm. A positive number is always desired and the larger the better. and marketing effectiveness. If you are able to do this. The industry scores represent your benchmark on how well you should be doing.000 the division has earned this quarter.000.000 * 100 Market Performance Is a measure of how well you are able to create demand in your primary and secondary segments. Check how well you performed relative to your score in the previous quarter. and will be used to measure your firm's performance in comparison to the other firms participating in the exercise. and to the industry as a whole. Just like in the real world there are no clear cut designations for decision making. Customer perceptions of the firm's brands and ads in its primary and secondary segments are used to measure customer satisfaction. and potential competition. Evaluate market survey results in end user profile – what are the potential outcomes? Establish corporate goals. and control of the marketing plan each quarter. Wrap-up the quarter as per the instructor's schedule. Understand your rationale for these selections. as well as the monitoring. implementation. Why did you choose the segment(s)? Establish strategic direction – provide your company’s mission statement. geographic markets. Marketing Effectiveness = (Average of best brand judgments + Average of best ad judgments) / 2 Average of best brand judgments in target segments = (Highest brand judgment in first segment + Highest brand judgment in second segment) / 2 Average of best ad judgments in target segments = (Highest ad judgment in first segment + Highest ad judgment in second segment) / 2 Simulation Decisions In each quarter you will focus on specific decisions based upon your role in the simulation. Select target segment. The two scores are then added to obtain the indicator for marketing effectiveness. Why did you choose this name? Analyze market opportunities—evaluate segments. How and why did you choose this strategy? Select test markets – why and where? Open sales office – where and why? Define the responsibilities and roles. 1st Quarter (Module 3) Set up Shop Designate a company name (Be Creative). As the sole decision maker. Page 7 of 10 Sum of market shares in targeted segments = Market share in first segment + Market share in second segment Marketing Effectiveness Is a measure of how well you have been able to satisfy the needs of the customers as measured by the quality of your brands and ads. A good score would be greater than 80. you hold the primary responsibility for setting the strategic direction of the micro-computer business unit. Select your primary and secondary responsibility . The specific decisions you will make each quarter are outlined below. The score ranges from 0 to 100. Page 8 of 10 2nd Quarter (Module 4) Test Market Design your brand. What was your rationale for these brand designs? Did you create customer value—match components to benefits desired? Marketing strategy—evaluate tactical options and choose marketing mix. Develop media plan and budget—ad copy design. Are these your best option? Why? Brand price – Why did you select this pricing strategy? What was your rationale? Price promotions. Sales priority. Does this affect product demand? Evaluate performance from the first two quarters. Should you revise your marketing strategy? . How many salespeople did your hire? Why? Open new sales office (optional). Wrap up the quarter per the instructor's schedule. Hire salespeople assign to service or target segments. 3rd Quarter (Module 5) Skillful Adjustment Based on your test market decide whether your price is elastic or inelastic. and ad frequency. How and why did you choose these media selections and ad copy designs? Place advertisements in media – Sales force management—number employed. and training. media selection. 5th Quarter (Module 7) Enhance the Market The simulation is winding up with only two quarters left with actual strategies to execute. What is your current financial condition? Market performance—customer opinions of brand designs. Continue to formulate a SWOT analysis. Evaluate profitability of division. Page 9 of 10 Describe your financial performance—profitability analysis. Begin to formulate a SWOT analysis. Quarter 7. What are your brand/ad ratings? What are you going to do to improve your brand/ad ratings? What is the current buyer behavior? Analyze competitor tactics—segments targeted and selection of marketing tactics. and sales force. Describe your competitors. page A-16. 4th Quarter (Module 6) Market Expansion Analyze your financial performance using the balanced scorecard. Use this information for your final report at the end of the simulation. Use formulas for conducting a demand analysis from Appendix 2. Conduct demand analysis to estimate brand. advertising. page A-16 . advertising.A-17. prices. Adjust your strategy if needed—make incremental changes in tactics. Use this information for your final report at the end of the simulation. prices. Wrap up the quarter per your instructor's schedule. Competitor tactics—segments targeted and selection of marketing tactics. Adjust strategy—make incremental changes in tactics. Evaluate your balanced score card for market and marketing performance. advertising. What was your rationale for each task. Revise marketing tactics as needed and continue test marketing. Wrap up the quarter per your instructor's schedule. if appropriate. Marketing strategies to think about in this quarter: Analyze your financial performance—using the balanced and cumulative balanced scorecards. the results for all the quarters will process in the final quarter. Continue to formulate a profitability analysis using terminology and/or formulas found in Appendix 2. Again. Once the 6th quarter is completed in the next module. use this information for your final report at the end of the simulation. advertising. Market performance—customer opinion of brand designs. Begin to formulate a profitability analysis using terminology and/or formulas found in Appendix 2. if appropriate. Describe and understand these actions. and sales force. price. prices. o What are your brand/ad ratings? o What are you going to do to improve your brand/ad ratings? . Market performance—customer opinion of brand designs. if appropriate. and sales force elasticity. and sales force. page A-16. if appropriate. o Comparison of actions taken against your marketing goals. Page 10 of 10 o What is the current buyer behavior? Analyze competitor tactics—segments targeted and selection of marketing tactics. Continue to formulate a SWOT analysis. advertising. o What is your action plan? Final evaluation of financial and market performance. o Continue to develop a demand analysis to estimate brand. and sales force. This is the wrap up. cumulative Balance Scorecard represents with a maximum of 100 points.) Wrap up the quarter per your instructor's schedule. 6th Quarter (Module 8) Refine Marketing Strategy Complete the final quarter and process all your gaming quarters. Adjust your strategy if needed—make incremental changes in tactics. o Review of significant events that affected the company and/or market Assessment of current situation and market (Also. o Evaluate your balanced scorecard for market and marketing performance. page A-16 . price. Marketing strategies to think about in this quarter: Skillfully adjust strategy to unanticipated competitive moves. how is the current market different than it was in the early quarters?) o Customers o Competition o Company strengths and weaknesses o Major problems/opportunities anticipated in the future. o Evaluate profitability of division. (The ABCs PowerPoint notes are located in Activity 4 of this module. Begin to formulate an Activity Based Costing (ABC) methodology to evaluate profitability of brands. o Would you have done things differently if given the opportunity? Methods used for continuously improving brand features. Note: The wrap up and processing of quarter six actually occurs in the 7th quarter. o What did you learn about your competitors from previous quarters? Managing marketing strategy. and sales force elasticity. . Use fictitious numbers for manufacturing costs into your ABC analysis. It will supply a computation with the results for all your quarters. pricing. There are no activities in Quarter 7. o Analyze your balanced scorecards.A-17. Review of business. It is important to use this information in your final report at the end of the simulation. The final. *Note: The wrap up and processing of quarter six will actually occur in the 7th quarter. o Describe your competitors. Use formulas for conducting a demand analysis from Appendix 2. This is done by going to Quarter 7.