Mkt 425, MW, 5-7pm
Choose Your Strategy… Wisely.
Welcome to your first day on the job. As our Division Marketing Manager, you will be responsible for leading our newest division to compete in the expanding, world-wide computer industry. The new PC Marketing Division will involve introducing a new line of computers to four international markets, which may include successfully creating, developing, launching, and making money in the business world. You have a limited time frame to prove to upper management that your division is self-sufficient and profitable. You will be taking a comprehensive marketing approach in your decision-making to accomplish your goals. There are no redo’s in the business world, so you will be expected to live and learn from your decisions by taking corrective action throughout your marketing strategy. To gauge your progress, the instructor will represent Corporate Headquarters… essentially, be your direct supervisor. Corporate expects positive results and giving you a promotion after your year-and-a-half run. What you need to know to WIN In a nutshell, this project is like a flight simulator. You can afford to make a few mistakes early on and still come out on top. The software is designed in Windows format with multiple layers of TABS. Be sure to view all of these tabs and fully understand what information and tools are available to you under each one. The number of tabs and layers will increase as your quarters progress. 1) At the start of quarter 1, you will receive the results of a market survey of your potential customers. Be sure to understand the free market research before you begin. Information about your competition will be available in quarter 3. 2) There are 2 visual versions used to make your decisions, which can be toggled back and forth. There is a linear version, which will walk you through each decision that needs to be made, and there is a window/tab version that will allow you to freely make decisions and edit decisions. MY ADVICE is to use the linear version for your first quarter and start using the tab version for the rest. 3) To submit your decisions, click the Red Arrow in top/center of the screen. DO NOT hit this button if you are not totally satisfied. Clicking this will automatically process your quarter and give you results. Be sure to click the Consultant BEFORE clicking the Red Arrow. 4) ADJUST your Marketing Strategy after each quarter. LEARN from the results of your decisions and your competition. The World Market Scenario Your PC Marketing Division is responsible for introducing the new line of computers to Japan, the United States, Canada, and France. You may choose to set the headquarters of your new division wherever you think is the best to begin your campaign. You will be expected to expand from this base. As mentioned above, competition will be entering in Quarter 3; specifically, three companies at random will be competing against your division in each of your world markets. To simplify the scenario, the simulation assumes that the computer market is in the INTRODUCTORY STAGE OF THE PLC.
MarketPlace Project Launch
Mkt 425, MW, 5-7pm
All competition, including your division, will begin with the same resources and market research. Be advised of the following: You will specifically target the business sector You will NOT be selling to the home market/end-consumer market You will NOT be selling through retail establishments Design your marketing strategy FOCUSED on direct sales to business customers
All four companies competing in the world market will sell through company-owned sales offices and in the markets/countries listed above. Market Structure There are three (3) target markets with which you will be able segment your product lines: Work Horse, Traveler, and Mercedes. Be sure to research the needs/wants of these markets with the given market research. In general: Mercedes: Looking for high performance to use in engineering/mfg; willing to pay more Traveler: Wants to use a computer on the road; Price sensitive; Sale executives who travel Work Horse: Largest market in size; want easy-to-use computers; modestly priced
You will be expected to specifically target ONE of these target markets to focus your marketing strategy. Once the quarters go by and you begin to see how your products are selling, you will make the decision to choose your secondary target market. There is no clear advantage as to which market is the best to begin your strategy in the short-term; however, be sure to have a long-term strategy in plan. HOW to WIN Make a lot of people happy and earn a lot of money. The following suggestions will sound much easier said than done: Find out what people want (market research) Give them what they want (design and price a product) Tell them you have what they want (advertise) Send people out to where they work and explain how problems can be solved (sales/logistics) Collect money and increase profitability
In a perfect world, life would be that easy. Business is full of problems disguised as opportunities. Some basic advice: 1. Not all customers are alike – they all have different preferences. One offer will not work for all. a. You cannot satisfy everyone all of the time b. Potential customers will wait until the “right” solution comes along 2. Everyone wants more for less – lower price is a powerful magnet, but are you making money? a. If your price is lower, your sales volume had better be increasing. Increase promotions. 3. There will always be a competitor – learn from them… benchmark them 4. Customers have loyalty but will always move toward a better value
Mkt 425, MW, 5-7pm
Team Assignments The best education you receive is what you learn from each other. Teams can ONLY consist of 2 people (if the class has an odd number of students there will be one (1) team of three (3). Each member of the team must noticeably contribute to the project and understand every decision made. In the event a student should drop the class, appropriate team adjustments will be made by the instructor. You will not be permitted to switch partners during the MarketPlace Project. Each member of the team will receive the same grade for each assignment turned in. Written Assignments and DUE Dates The following is a brief outline of your deliverables: Quarter 1-2 Market Report: Quarter 3 Market Report + Presentation: Quarter 4 Market Report: Quarter 5-6 Market Report + Presentation: DUE = April 30th DUE = May 9th DUE = May 14th DUE = May 21st
Each team will be required to turn in a total of four (4) Market Reports and give two (2) presentations during the six quarter run. Market Reports are to be a maximum of three (3) pages in length and due at the BEGINNING of class, where we will begin our discussion of the teams’ results. The results of your quarter WILL be shared with the rest of the class at EACH due date… no exceptions. As this is still a learning atmosphere, we must learn from each other and talk about the situations that arise from everyone’s business decisions. At the beginning of every operational quarter, you will be given the questions that you will be expected to answer for the upcoming quarter. Be sure to answer ALL of the questions in order and clearly identifiable. If an answer is hard to match up with a question, credit may not be given for it. Be sure to include the following MarketPlace generated printouts… these will not count toward the 3page max… (see the sample report given for reference of what the report looks like): 1) 2) 3) 4) 5) Profitability Analysis by quarter; Total Market Demand by company; Total Market Share Percentages by company; Design Judgment for your brands and ad copies; and Balanced Scorecard tracking your scores toward your goal. Be sure to include the following scores: Financial Performance, Market Performance, and Market Effectiveness.
Mkt 425, MW, 5-7pm
Please follow the directions below for instructions on written work: ALL projects are to be written in memo format. ALL written directions outlined in the syllabus are to be followed. NO exceptions. Failing to follow directions will result in a grade reduction. Wherever you can, you should use materials, models, and examples from your class notes and personal experience to help answer the questions and develop your credibility to assure Headquarters that you are moving in the right direction.
As your Corporate Headquarters appointed direct supervisor, you will be graded on how well the facts speak and you perform, just as in the real world… be thorough… I cannot read your mind.
Oral Assignments In addition to the written assignments described above, you will be expected to give two (2) oral presentations to your direct supervisor and the class. In Quarter 4, you will be expected to give an elevator presentation, and after you complete your 6-quarter run as the Division Marketing Manager, you will be expected to formally present your results. Requirements of the Elevator Presentation: (2%) - Less than ONE MINUTE; more than 20 seconds; you may be cut off at any random time - No visual aids - Professional interaction in an elevator… you will be asked how is business going What are you going to say to your supervisor? - ONE person of the team will be randomly chosen to give the elevator presentation - BUSINESS CASUAL dress is expected - You will be graded with one of three scores: 100=A; 85=B; 75=C This will be done on a feeling of how well your direct supervisor feels you have done and the impression you have made Requirements of the Final Formal Presentation: (5%) - Five minute maximum length… you will be cut off at this time, as management is busy There will be at least one question for Q&A asked by management - No Computer Allowed; other visual aids are strongly encouraged - Professional attire required of all members - All members of the team MUST present… use the “Casual Tag Team” Approach - Professional handouts/presentation materials are expected (only make copies for me) You decide what information you want to highlight to me - You will be graded a number of points, which will be explained at a later date - Come PREPARED… PRACTICE repeatedly… it will be noticeable one way or the other - Each team’s presentation date will be ASSIGNED Goals, Objectives, REWARDS Corporate has set the following minimum divisional GOALS: 1) Earn $20 million profit by Quarter 6 2) Capture 50 percent of the market in AT LEAST two market segments 3) Achieve a 90 percent customer satisfaction rating in your brand design AND advertising Failure to achieve GOALS 1, 2, and 3 will result in a maximum grade of a 75 percent (C) for your FINAL Market Report. ALL THREE goals must be met. A “C” is considered average, and you will have failed to meet the expectations set forth by Corporate Headquarters.
Mkt 425, MW, 5-7pm
At each Market Report’s due date, we will engage in discussion and comparison of each team and the decisions made, so each team will know its standing and learn from each other. EACH team will be competing to be the best in the class and earn the following REWARDS: 1st Place 2nd Place 3rd Place 4th Place 5th Place 6 + Place = = = = = = 5 4 3 2 1 0 percent percent percent percent percent percent bonus bonus bonus bonus bonus bonus added added added added added added to each to each to each to each to each to each member’s member’s member’s member’s member’s member’s final final final final final final quarter quarter quarter quarter quarter quarter grade grade grade grade grade grade
In the event of a tie at any or all of the top five placements, each member of the placing team will receive the reward for the placement achieved. Placement in the class will be judged by the numeric scores earned on the Balanced Scorecard and the GOALS discussed above. The three Balanced Scorecard numbers will be averaged to determine placement. Grade Breakdown As stated in the syllabus, the following is the grade breakdown of the assignments, as they relate to the scope of the quarter:
Q1-2 Market Report Q3 Market Report Q4 Market Report (13) + Presentation (2) FINAL Market Report (15) + Presentation (5)
10 percent 10 percent 15 percent 20 percent
______ ______ ______ ______
The first Market Report is the lowest percent, so you get used to how they are graded and understand how in-depth you need to be in your answers. Additional Expectations Team and brand names MUST NOT be obscene, vulgar, racist, etc Each team is responsible for their own performance; there are no mergers or partnerships Good business is expected between your teammates/competition… maintain professionalism Others added as needed throughout the quarter
Failure to abide the expectations and general business practices outlined in this project launch, syllabus, or verbally may result in a grade reduction or University-governed procedural actions.
BEST OF LUCK!!