This presentation is an introductory one for stratetegic marketing management subject i studied as a part of my MBA curriculum.

1. Introduction to Strategic
Marketing
Copyright 2006 Ernest R. Cadotte

2. Marketplace is a fun way to learn
about marketing!
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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

3. It is Realistic
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You do what your real-life counterparts do
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Design brands
Design ad copy
Schedule media
Set selling prices
Hire and train sales people
Worry about profits
Copyright 2006 Ernest R. Cadotte

4. It is Organized
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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.
Copyright 2006 Ernest R. Cadotte

5. How is the marketing
game conducted?
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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

6. Objective is to profitably capture a
dominant market position
Opponent
Opponent
Market
Business Team
Opponent
Copyright 2006 Ernest R. Cadotte

7. Game Scenario
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You work for a large international electronics firm.
Corporate Headquarters wants to enter the personal computer business.
Copyright 2006 Ernest R. Cadotte

8. Game Scenario
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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

9. Game Scenario
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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

10. Available Market Segments
(Market Structure)
Mercedes
Traveler
Innovator
Performance
Work
Horse
Cost Cutter
Price
Copyright 2006 Ernest R. Cadotte

11. Sales Office Options (12)
Copyright 2006 Ernest R. Cadotte

12. Marketing Team
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Each team member assumes a tactical area of responsibility:
-Brand management
-Advertising
-Sales office management
-Overall leadership
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Everyone is responsible for marketing research and profit management.
Copyright 2006 Ernest R. Cadotte

13. How Conducted?
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At the outset of each quarter, you will receive information on the current situation.
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The current situation is evaluated, strategy formulated, and tactics set in place.
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Tactical decisions are fed into the marketplace simulator, along with decisions of
opponents.
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Results of decisions are fed back to you.
Copyright 2006 Ernest R. Cadotte

14. Chronology of Events
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Q1: Organize the team, name the company and contract for a survey of potential
customers.
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Q2: Analyze market information, establish strategic direction and set up shop
(design brands and set up sales offices).
Copyright 2006 Ernest R. Cadotte

15. Chronology of Events
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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.

16. Chronology of Events
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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

17. 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

18. Funding
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The initial funding is 20,00,000 which is being invested by Corporate Headquarters
in 5,00,000 increments over the first 4 quarters.
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Corporate Headquarters will provide another 50,00,000 in Quarter 5 if it approves
your marketing plan for the second year.
Copyright 2006 Ernest R. Cadotte

19. Learning Strategy
Marketing simulations are a form of combative training where you pit your
marketing skills against those of formidable opponents under the watchful eye
of a training coach.
Copyright 2006 Ernest R. Cadotte

20. When we work strictly in our functional silos, we are like blind people trying to
understand what an elephant is.
It’s a sheet
of rawhide.
It’s a steel
tube.
Please tell me
what it is?
It’s a snake.
Copyright 2006 Ernest R. Cadotte
It’s a
tree
trunk.

21. With marketing simulations, you can crawl all over and under the marketing organization
to see and understand the whole thing.
Brands
Research
Pricing
It is a marketing
organization!
Advertising
Copyright 2006 Ernest R. Cadotte
Distribution

22. Learning Strategy:
Learn by Doing
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You learn about all aspects of marketing by managing a simulated marketing
department.
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The Marketplace scenario follows the life cycle of a new product.
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Marketing decisions are introduced as they become relevant in the evolution of the
product.
Copyright 2006 Ernest R. Cadotte

23. Quarter 2
Establish Strategic Direction
Copyright 2006 Ernest R. Cadotte

24. Q2: Establish Strategic Direction
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Analyze market information
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Establish strategic direction
– Select 2 target segments
– Decide on competitive posture
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Set up shop
– Develop distribution strategy
• open initial sales offices for test
market
– Design 2 brands, 1 for each target
segment
Copyright 2006 Ernest R. Cadotte

25. How do you determine the design
of each brand?
Copyright 2006 Ernest R. Cadotte

26. Customers Buy Benefits
Not Features
Copyright 2006 Ernest R. Cadotte

27. How far do you go in giving
the customers what they say
they want?
Is more speed, software
applications, memory, keys on the
keyboard, etc. always valued?
Could “more of some feature” even make a customer unhappy?
Copyright 2006 Ernest R. Cadotte

28. Learning Points for Quarter 2
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Market opportunity analysis
Segmentation and target marketing
Strategic and tactical planning
Game theory - competitive positioning
Copyright 2006 Ernest R. Cadotte

29. Learning Points for Quarter 2
• Brand design
– Linking product features to customer
benefits
– Finding the customer’s response functions
Copyright 2006 Ernest R. Cadotte

30. Quarter 3
Go to Test Market
Copyright 2006 Ernest R. Cadotte