USING MARSGAP (A MARKETING SIMULATION GAME ANALYSIS PROGRAM) WITH LAPTOP: A MARKETING SIMULATION Developments In Business Simulation & Experiential Exercises, Volume 20, 1993 145 USING MARSGAP (A MARKETING SIMULATION GAME ANALYSIS PROGRAM) WITH LAPTOP: A MARKETING SIMULATION T. Rick Whiteley, Lawrence Technological University ABSTRACT MARSGAP is a spreadsheet-based software program designed as a learning/analysis aid for the user of the LAPTOP marketing simulation game. The program includes (1) a ‘what if’ income statement calculation component, (2) a ‘what if cash flow statement calculation component, (3) a breakeven analysis component, (4) a general graphics component, and (5) a market share plot component. The demonstration will be of interest to users of LAPTOP and users of any simulation game who are seeking ways to increase the involvement and the quality of the decisions and reports of simulation-game participants. INTRODUCTION MARSGAP was developed to provide the user of the LAPTOP marketing simulation game by Faria and Dickinson (1987) with the opportunity to carry out additional analysis of the decisions and the data acquired during the play of the game. While the program is based on Lotus 1-2-3 (version 2.01), no detailed knowledge of Lotus is required on the part of the user. By just entering raw data and using a limited number of pre-defined (macro) commands, the user is able to carry out some very detailed analysis for the game. [The program has also been modified to be usable with Quattro Pro and any other spreadsheet which is compatible with Lotus 1-2-3 macros.] Before submitting a decision, the game participant can prepare income and cash flow statements to determine the soundness of the decision, assuming the predicted level of demand for the company actually occurs. A breakeven analysis, for an infinite number of prices, can also be carried out, given the nature of the decisions the student is considering. In fact, the program automatically calculates the breakeven point in units for 13 different prices (incremented by $25) for each price entered. Data collected during the game can be entered so that trends can be monitored over time. Data for each company in the game available from the LAPTOP research reports can be entered for each quarter of the game. Once such data is entered, the user enters one macro command to automatically prepare up to 49 different graphs. The structure of each graph is pre-defined by the program. Only the raw data entry is required for the final preparation. The user of MARSGAP is also able to create up to 36 graphs, which plot market share by various decision values. Again, the user only needs to enter the raw data collected during the game. The structure of each graph is pre- defined. By analyzing the appropriate graphs, the user may be able to determine the best decision inputs for the game. If the game participant is required to prepare a final game report based on the LAPTOP simulation, any of the graphs produced by MARSGAP can be printed easily by following the print commands for Lotus 1-2-3 or any other usable spreadsheet program. By entering one macro command, MARSGAP will automatically save a *.pic file for each graph to be printed. The MARSGAP program has been used in first year and second year M.B.A. marketing courses. Use of the program has clearly increased (1) the involvement of the participants with the simulation game, (2) the quality of the data analyses, (3) the quality of the decisions, and (4) the quality of the game reports. In fact, by using the program, the participants can easily avoid making a decision, which results in a loss even when all available units are sold. This type of decision was a common problem before MARSGAP was available. Notes. MARSGAP was developed by T. R. Whiteley; College of Management. Lawrence Technological University, Southfield, MI, 48075- 1058; Copyrighted 1992 LAPTOP: A Marketing Simulation was developed by A. J. Faria and John R. Dickinson; Business Publications, Inc., 1987. Lows and 1-2-3 are registered trademarks of the Lotus Development Corporation. DETAILS OF THE MARSGAP PROGRAM As indicated, MARSGAP comprises five main components: (1) a ‘what if’ income statement calculation component, (2) a ‘what if cash flow statement calculation component, (3) a breakeven analysis component, (4) a general graphics component, and (5) a market share plot component. The first three components can be found in a separate file entitled ‘MARSGAP1.WK1.’ The ‘MARSGAP2.WKI file contains the general graphics component. And the ‘MARSGAP3.WKI’ file contains the market share plot component. Income Statement Component The what if’ income statement calculation component of the program will allow the user to determine the impact of various sets of decision variable values on before-tax operating income (i.e., before tax and before investment income). The program only manipulates the input values; it does not search for the best decision. The nature of the environment and the competitive forces are not taken into account. Cash Flow Statement Component The cash flow statement calculation accompanies the income statement calculation. Based on the ‘what if’ set of decision variable values entered, the cash position of a player’s firm will be determined. All income sources and tax considerations are included in the cash flow statement calculation. Breakeven Analysis Component The breakeven analysis component of the program allows the user to determine the number of units that must be sold, given a specified price and a specified cost structure, such that total revenue will equal total cost. All costs except the following are considered to be fixed for the decision period under consideration, once set co-operative advertising expense, sales force sales commission expense, and unit production cost. Price, of course, is also a variable item. The results of the breakeven analyses are shown on each relevant screen. General Graphics Component The general graphics component of the program will allow the user to monitor the competitive environment throughout the game. Information appearing on the game printouts, including marketing research information, can be entered into the program so that graphical trends can be portrayed and then analyzed by the participant. If game reports are required as part of the course, printouts of the graphs prepared can be obtained from the program. Graphs I to 49 are included in this program component. Market Share Plots Component The market share plot component of the program will allow the user to examine and, hopefully, determine the relationships between market share and various decision variables. Information appearing on the game printouts, including marketing research information, can be entered into the program so that graphical trends can be portrayed and then analyzed. If game reports are required as part of the course, printouts of the graphs prepared can be obtained from the program. Graphs 50 to 85 are included in this program component. Table of Contents Volume 20, 1993 Dominant Personality Types and Total Enterprise Simulation Performance Shelf Wars: A Grocery Channel Simulation Shared Cultural Perspectives: An Experiential Exercise Utilizing International Students to Globalize the Classroom An Instrument for Investigating the Effectiveness of Teaching Methods in the Business Policy and Strategy Formulation Course Providing Better Trained Graduates for Accounting Employers The Ambition Gradient Approach to Evaluation of Computer Simulation Game Team Performance Alphatec: A Negotiation Exercise with Logrolling and Bridging Potential Using the Ideafisher Idea Generation System as a Decision Support System in Marketing Strategy Courses A Dynamic Market Share Allocation Model For Computerized Business Simulations Multi-Cultural Adaptability Using Experiential Learning in a Graduate Course Development of Experiential Applications in HRM: Practicing What Preach and Preaching for Practice Linking Students and Business Leaders Through Portfolios Debriefing International Experiential Learning Exercises: Road Signs for Effectiveness Sales Manager: A Simulation Modeling Interactive Effects in Mathematical Functions for Business Simulations: A Critique of Goosen's Interpolation Reducing the Complexity of Interactive Variable Modeling in Business Simulations Through Interpolation Antecedent Biases of Experiential Learners: Trainee Occupation and Subgroup Diversity Pax in Terra Sancta: Simulating the Middle East Peace Negotiations A Multiple Regression Case In Experiential Learning Changes in Ethnocentric/Geocentric Orientation by Business Students after Exposure to a One Summer Course in International Marketing's A Systematic Approach to the Development and Evaluation of Experiential Exercises Entrepreneurs Evaluate Experiential Education A Linear Programming Approach to Open System Total Enterprise Simulations Reflecting Leader Behavior from the Looking Glass, Inc. Simulation Linking Cognitive Styles, Teaching Methods, Educational Objectives and Assessment: A Decision Tree Approach Restructuring Management Education in Post-Communist Countries: How Western Experts Can Help Managerial and Cultural Pre-Conditions for Superior Performance in a Global Setting: An Experimental Study with the Aid of Business Games Multiple Industries in Computerized Business Gaming Simulations Content or Process? - Content and Process! Some Observations and Reflections About Management Education in Central Europe Out-of-Class Experiences to Promote Volunteerism Enacting the Linguistic Consciousness of the Modern Managerial Mind: Post-Modernism and Experiential Learning Intergrating Experiential Exercises into the College Curriculum: The Case of Internationalizing the Business Curriculum Simulation Marketing Oversights Incorporating Advertising Creative Strategy into Computer-Based Business Simulations The Dynamics of a Partnership Between Business and Education Collaborative Education Done Globally Experiential Systems Analysis CADPLAN: A Simulation for Comparative Advertising A Doctoral Symposium: Preparing Students for Conference Behavior Comparing the Simulation with the Case Approach: Again! Total Quality Management: A Model for Continuous Quality Improvement The Quality Audit: An Experiential Exercise for Business Students Extending the Reach of Simulations: DECIDE Heads for the Inner City Lessons Learned from a Customized Management Development Simulation The Foreign Exchange Spot Trading Simulation Using Lotus 1-2-3 to complete a Triple Play in a Simulated Competition International Business Education: Is Enough Being Done? Matching of Student-Teacher Cognitive Style as a Factor in Student Success in an Introduction to Information Systems Course Breathing (More) Life into the Case Approach Lord of the Flies: A Live Case Approach to Leadership Cooperative Case Studies: Experiential Tools for Teaching Business Problem Solving Tools Strategy Simulations in Context: An Evaluation of Key Dimensions The Distribution Channel Game Evaluation of a Simulation Game as an Education Tool for Utility Professionals The Relationship Between Total Enterprise Simulation Performance and Learning Total Quality Management does not Happen by Magic, but it can be Taught Using a Pedagogical Methodology that Utilizes Magic Effectively Preparing Students for Careers in a Global Environment by Integrating Total Quality Management Thoughout the Business Curriculum An Empirical Investigation of Cognitive and Performance Consistency in a Marketing Simulation Game Environment Using MARSGAP with LAPTOP: (A Marketing Simulation Game Analysis Program) with LAPTOP: A Marketing Simulation Adapting TQM Implementation to Organizational Level An MBA Business Simulation: Executive Interaction Experiential Exercises and Pedagogy Track Workshop: Experiencing Cultural Diversity in the Classroom (and the Hotel Meeting Room) Closing the Gap between Corporate and National Culture The Dynamic Manufacturing Company The Use of Experiential Techniques in Corporate Training The State of Simulation Gaming in Easter European Countries- Principally Russia An Experiential Exercise in Cross-Cultural Training Valuing Differences: A Conceptual Framework Demonstration of an Experiential Exercise Effectively Using Experiential Learning to Impart TQM Concepts in a High Technology Environment The Older Worker Questionnaire: An Exercise Concerning Older Worker Stereotypes and Behaviors The Crime Fighting Task Force: An Exercise in Organizational Politics Welcome to the Party! An Expression of Vocational Preference Experiential Exercise for Imparting Cross-Cultural Appreciation Six Swift Simulations on Globalization Overview of BASF Delegate Program