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Vanya Slantcheva-Baneva, Ph.D.
 an online-based
interactive tool
 a single-player
marketing exercise
2009/10 2010/11 2011/12
39
55
44
28
17
30
28
6
2927
3
17
Student participation in playing Marketing simulation
for three academic years
(2010-2012)
Total number of students attending Marketing management course
Number of students enrolled for Marketing Simulation
Number of students purchased the Marketing Simulation
Number of students completed the Marketing Simulation
 The simulation is paid and it is more likely students
not to be enthusiastic enough, but less demanding
before the pragmatic choice not to overload their
personal academic duties.
 More than half of the class might become “leads”
(they are inclined to pay for but not to play the
simulation for sure).
 Actual number of participants might reach the
moiety. There are objective and subjective factors
that influence student’s vote.
 The instructor is issued when students pay for their
enrollment but actually apathetically run the
simulation, moreover when they do not run it at all.
2009/10 2010/11 2011/12
39
55
44
28
6
29
Number of IT students who choose to learn by
Marketing simulation
(2009-2012)
Total number of students attending Marketing management course
Number of students purchased the Marketing Simulation
 In 2010 72% of students purchased the Marketing
Simulation©.
 In 2011– hardly 11%.
 In 2012– their number raised to 61%.
 Marketing Simulation® is eligible one, and the figures
above could be suggested as good enough.
 More then 5-year history is required to outline a trend of
an actual student demands to learn by the simulation tool.
 Should students consider their extracurricular tasks, they
decide whether to play the simulation. They draw attention
to the following:
◦ Objective factors – attendance, employment, participations in
student contests, etc.
◦ Subjective factors – family, motivation, interest in the course,
individual perception of the instructor’s capabilities and charisma.
2009/10 2010/11 2011/12
28
6
29
27
3
17
IT student activity in playing Marketing simulation
(2009-2012)
Number of students purchased the Marketing Simulation
Number of students completed the Marketing Simulation
 In the academic 2009/10 year student activity
reaches about 100 per cent – 27 of 28 enrolled
students, run and completed the simulation.
 In 2011/12 student activity, compared to
2009/10 declines almost twice: the number of
students purchased the simulation is 29, but 17
of them completed it.
 The academic 2010/11 is a precedent: the
number of students in class is the highest one –
55, but those who purchased the simulation, is
modestly 6, and even 3 of them played and
completed it.
96%
50%
59%
0
5
10
15
20
25
30
2009/10
2010/112011/12
Relative share of students who completed the
Marketing simulation
Relative share of students purchased the MSim®
Relative share of students completed the MSim®
 CHALLENGE: “The red triangle” is growing smaller
then “the blue one”. Approx. 50 per cent of the
students do not complete the MSim, regardless
they have purchased it.
 PROBLEM: What makes students refuse to run the
simulation?
◦ ill-instructed
◦ feel not involved enough
◦ interest is lost
◦ HBP’s MSim is demanding, a time-consuming process of
learning
 CLUE: Rehearse a “Blue Ocean Strategy” scenario!
59%
0
5
10
15
20
25
30
35
Number of students purchased
the Marketing Simulation
Number of students completed
the Marketing Simulation
Relative share of students with completed
simulation (2011/12)
 17 of 29 students have completed MSim .
 Above 40% of students have not completed MSim
 4 students have not run MSim at all
 The highest number of rounds (running MSim through 12
fiscal quarters) is 41 rounds per student. The lowest one is
just once; the average number of rounds per student is 8.
 The most effective student runs totally 7 rounds and
reaches the highest score in the group twice (81 point).
 The most diligent student runs MSim 41 rounds and reaches
the score of 80 points.
 The average efficiency of the rounds – in 8-9 completed
rounds the individual result is above 50 points.
 The overall group activity hesitantly surpasses 50 per cent
1) “Status quo Strategy”
2) “Increase Price
Strategy”
3) “Commodity Play
Strategy”
Das Narayandas, Marketing Simulation: Managing Segments and Customers. HBR No. 4048, March 2010.
Their
loyals High-end
switchers
Our loyals
1) MM
Competitors
Low-end
switchers
A2
A1
2)
3)
2
5
8
2
0
0
1
2
3
4
5
6
7
8
9
30-43 44-57 58-71 72-85 86-100
Users
Total score
Distribution of class results by best individual score.
Total score
(2011/12)
 The prevailing and active part of the 2011/12
class (47%) has got moderate individual
scores – between 58-71 points.
 There is no an excellent score – above 85
points
 There are 2 interesting playing behaviours
with the highest scores: of the most efficient
student, and of the most diligent student
(who run the MSim 41 rounds).
5
12
0 0 0
0
2
4
6
8
10
12
14
1-6% 7-12% 13-19% 20-25% 26-31%
Users
Market share %
Distribution of class results by best individual score.
Market share (%)
(2011/12)
 Gaining a portion of market share means,
more or less, obtaining new customers
among the pursued segments.
 “Up to 12% market share” displays defensive
and retentive decision students made.
2
1
7
5
2
0
1
2
3
4
5
6
7
8
$30,000,000 до $39,999,999$40,000,000 до $49,999,999$50,000,000 до $59,999,999$60,000,000 до $69,999,999$70,000,000 до $80,000,000
Users
Cumulative revenue (USD)
Distribution of class results by best
individual score . Cumulative revenue
(USD)
7 7
3
0
1
2
3
4
5
6
7
8
$0 до
$3,999,999
$4,000,000 до
$7,999,999
$8,000,000 до
$11,999,999
Users
Cumulative profit (USD)
Distribution of class results by best
individual score .
Cumulative profit (USD)
 Results display properly applied tactics of
“retention of existing customer” and “market
penetration” strategy (70 % of the 2011/12 class
hit $50,000,000 – $69,999,999 cumulative
revenue)
 Students do not base Investment policy in
product performance on high levels of
cumulative profit.
 They operationalize the improvements in product
features.
 Students are focused on serving and paying for
customer satisfaction, grounded on short-term
profits
 Postgraduate IT students usually run Marketing
Simulation© in a pragmatic manner, rather then
in a holistic one.
 Marketing strategies developed – predominantly
“Status quo Strategy” with hybrid elements of
“Increase Price Strategy”
 Individual results of the classes (2009-12) under
consideration imply that students understand the
simple interrelations between:
• segment behaviour,
• customer satisfaction and retention,
• competitor behaviour,
• product feature investments,
• price and discount decisions,
when segments and customers are managed.
 Student motivation about “learning by
playing” in Marketing
 Instructor’s role and classroom debrief –
“learning before and along playing”
 No single correct solution – “self-debriefing
and learning”
Marketing Simulation Conduction in Postgraduate IT Class (2010-2012)

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Marketing Simulation Conduction in Postgraduate IT Class (2010-2012)

  • 2.
  • 3.  an online-based interactive tool  a single-player marketing exercise
  • 4.
  • 5. 2009/10 2010/11 2011/12 39 55 44 28 17 30 28 6 2927 3 17 Student participation in playing Marketing simulation for three academic years (2010-2012) Total number of students attending Marketing management course Number of students enrolled for Marketing Simulation Number of students purchased the Marketing Simulation Number of students completed the Marketing Simulation
  • 6.  The simulation is paid and it is more likely students not to be enthusiastic enough, but less demanding before the pragmatic choice not to overload their personal academic duties.  More than half of the class might become “leads” (they are inclined to pay for but not to play the simulation for sure).  Actual number of participants might reach the moiety. There are objective and subjective factors that influence student’s vote.  The instructor is issued when students pay for their enrollment but actually apathetically run the simulation, moreover when they do not run it at all.
  • 7. 2009/10 2010/11 2011/12 39 55 44 28 6 29 Number of IT students who choose to learn by Marketing simulation (2009-2012) Total number of students attending Marketing management course Number of students purchased the Marketing Simulation
  • 8.  In 2010 72% of students purchased the Marketing Simulation©.  In 2011– hardly 11%.  In 2012– their number raised to 61%.  Marketing Simulation® is eligible one, and the figures above could be suggested as good enough.  More then 5-year history is required to outline a trend of an actual student demands to learn by the simulation tool.  Should students consider their extracurricular tasks, they decide whether to play the simulation. They draw attention to the following: ◦ Objective factors – attendance, employment, participations in student contests, etc. ◦ Subjective factors – family, motivation, interest in the course, individual perception of the instructor’s capabilities and charisma.
  • 9. 2009/10 2010/11 2011/12 28 6 29 27 3 17 IT student activity in playing Marketing simulation (2009-2012) Number of students purchased the Marketing Simulation Number of students completed the Marketing Simulation
  • 10.  In the academic 2009/10 year student activity reaches about 100 per cent – 27 of 28 enrolled students, run and completed the simulation.  In 2011/12 student activity, compared to 2009/10 declines almost twice: the number of students purchased the simulation is 29, but 17 of them completed it.  The academic 2010/11 is a precedent: the number of students in class is the highest one – 55, but those who purchased the simulation, is modestly 6, and even 3 of them played and completed it.
  • 11. 96% 50% 59% 0 5 10 15 20 25 30 2009/10 2010/112011/12 Relative share of students who completed the Marketing simulation Relative share of students purchased the MSim® Relative share of students completed the MSim®
  • 12.  CHALLENGE: “The red triangle” is growing smaller then “the blue one”. Approx. 50 per cent of the students do not complete the MSim, regardless they have purchased it.  PROBLEM: What makes students refuse to run the simulation? ◦ ill-instructed ◦ feel not involved enough ◦ interest is lost ◦ HBP’s MSim is demanding, a time-consuming process of learning  CLUE: Rehearse a “Blue Ocean Strategy” scenario!
  • 13. 59% 0 5 10 15 20 25 30 35 Number of students purchased the Marketing Simulation Number of students completed the Marketing Simulation Relative share of students with completed simulation (2011/12)
  • 14.  17 of 29 students have completed MSim .  Above 40% of students have not completed MSim  4 students have not run MSim at all  The highest number of rounds (running MSim through 12 fiscal quarters) is 41 rounds per student. The lowest one is just once; the average number of rounds per student is 8.  The most effective student runs totally 7 rounds and reaches the highest score in the group twice (81 point).  The most diligent student runs MSim 41 rounds and reaches the score of 80 points.  The average efficiency of the rounds – in 8-9 completed rounds the individual result is above 50 points.  The overall group activity hesitantly surpasses 50 per cent
  • 15. 1) “Status quo Strategy” 2) “Increase Price Strategy” 3) “Commodity Play Strategy” Das Narayandas, Marketing Simulation: Managing Segments and Customers. HBR No. 4048, March 2010. Their loyals High-end switchers Our loyals 1) MM Competitors Low-end switchers A2 A1 2) 3)
  • 16.
  • 17. 2 5 8 2 0 0 1 2 3 4 5 6 7 8 9 30-43 44-57 58-71 72-85 86-100 Users Total score Distribution of class results by best individual score. Total score (2011/12)
  • 18.  The prevailing and active part of the 2011/12 class (47%) has got moderate individual scores – between 58-71 points.  There is no an excellent score – above 85 points  There are 2 interesting playing behaviours with the highest scores: of the most efficient student, and of the most diligent student (who run the MSim 41 rounds).
  • 19. 5 12 0 0 0 0 2 4 6 8 10 12 14 1-6% 7-12% 13-19% 20-25% 26-31% Users Market share % Distribution of class results by best individual score. Market share (%) (2011/12)
  • 20.  Gaining a portion of market share means, more or less, obtaining new customers among the pursued segments.  “Up to 12% market share” displays defensive and retentive decision students made.
  • 21. 2 1 7 5 2 0 1 2 3 4 5 6 7 8 $30,000,000 до $39,999,999$40,000,000 до $49,999,999$50,000,000 до $59,999,999$60,000,000 до $69,999,999$70,000,000 до $80,000,000 Users Cumulative revenue (USD) Distribution of class results by best individual score . Cumulative revenue (USD) 7 7 3 0 1 2 3 4 5 6 7 8 $0 до $3,999,999 $4,000,000 до $7,999,999 $8,000,000 до $11,999,999 Users Cumulative profit (USD) Distribution of class results by best individual score . Cumulative profit (USD)
  • 22.  Results display properly applied tactics of “retention of existing customer” and “market penetration” strategy (70 % of the 2011/12 class hit $50,000,000 – $69,999,999 cumulative revenue)  Students do not base Investment policy in product performance on high levels of cumulative profit.  They operationalize the improvements in product features.  Students are focused on serving and paying for customer satisfaction, grounded on short-term profits
  • 23.  Postgraduate IT students usually run Marketing Simulation© in a pragmatic manner, rather then in a holistic one.  Marketing strategies developed – predominantly “Status quo Strategy” with hybrid elements of “Increase Price Strategy”  Individual results of the classes (2009-12) under consideration imply that students understand the simple interrelations between: • segment behaviour, • customer satisfaction and retention, • competitor behaviour, • product feature investments, • price and discount decisions, when segments and customers are managed.
  • 24.  Student motivation about “learning by playing” in Marketing  Instructor’s role and classroom debrief – “learning before and along playing”  No single correct solution – “self-debriefing and learning”