The Marketing Game: A Marketing Principles Simulation Developments in Business Simulation and Experiential Learning, Volume 26, 1999 THE MARKETING GAME: A MARKETING PRINCIPLES SIMULATION Robert W. Schaffer, California State Polytechnic University, Pomona ABSTRACT The Marketing Game learning environment is based on the Digital Camera industry. Although the facts of the case as presented in the student manual are hypothetical, the underlying computer model fairly accurately reflects the introduction of a new technology into a market. The game rewards market segmentation and targeting skills within a framework of an evolving product life cycle. Both industry background and game variable information is covered in detail in the student manual and therefore is not duplicated in these notes. This computer simulation is intended for use as a supplement in a Principles of Marketing course at either the undergraduate or graduate level. It has neither the richness nor complexity of simulations designed for advanced marketing strategy courses. The purpose of the simulation is to introduce students to the basic marketing decision variables and help students understand the relationships between these variables and the marketing environment. In particular, the game has a very strong market segmentation and targeting aspect which should tie in nicely with most lecture topics. Almost all students will make a profit during the course of the game. Also, the game is played in solitaire mode against computer generated competitors rather than competitively against other students. This solitaire mode will help students focus on understanding marketing rather than on “winning” the game. The game environment changes constantly over time as the product moves through the Product Life Cycle. There is ample marketing research available that will allow students to track these changes and eventually predict them. There are hints about each of the following trends in the student manual to guide players but the relationships are not described as explicitly as below. Students are expected to discover these slowly as the game proceeds. Demand will increase rapidly at first, then the rate of increase will slow as Maturity approaches, finally, demand will increase only at the rate of population growth during Maturity. Students will begin the game facing only a few computer generated competitive brands, then as Growth proceeds, more and more competitors will enter. A shakeout will occur near the end of the Growth stage, and in Maturity, the student will once again be facing only a few competitors. Market share will become increasing important throughout the game. As maturity approaches, stores will only want to stock the few brands with the highest share. Also, brands with low market shares will be the ones forced to leave the market during the shakeout; except the student’s brand(s) should they have low market shares. Geographical demand will shift over time from initially being slightly centered on the West Coast to mirroring the general population distribution. Sales through mass merchandisers will gradually become more important as the product enters Maturity. The simulation has a strong emphasis on market segmentation and targeting. Having an “average” product aimed at the market “average” will prove to be an increasingly poor strategy over time as consumers become more knowledgeable about both the product class and their own needs. The Marketing Game simulation package is intended for the Principles of Marketing course and will be published by Harcourt-Brace (Dryden) in early 1999 for use with the Boone and Kurtz marketing principles textbook. 223 Table of Contents Volume 26, 1999 ABSEL's Historical Research Interests Back From the Future: An ABSEL Merlin Exercise for the Year 2005 The Contributions of ABSEL During the 1980's ABSEL's Contributions to Experiential Exercises in the 90's ABSEL's Contributions to Experiential learning/Experiential Exercises: The Decade of the 1970's Business Simulations - Algorithms and Model Enhancements: A 25 year Review A Study of the ETS General Field Test as an AACSB Assessment Tool and the Impact of Experiential Exercises and Simulation on Learning A Framework for Assessing the Competencies Reflected in Simulation Performance Developing A Learning Culture: Assessing Changes in Student Performance and Perception Financial Simulation Using Distributed Computing Technology Analyzing Managers' Judgements and Decisions with an Educational Business Simulation Understanding Your Business through Home-Made Simulator Development An Examination of a Reanalysis of the Impact of a Market Leader on Simulation Competitors' Strategies Applying Shocks to TE Simulations: A Demonstration Increasing Efficiency of Management Skill Assessment A Testbank for Measuring Total Enterprise Simulation Learning Developing Leadership Skills - Video Live! LEADSIMM: Collaborative Leadership Development for the Knowledge Society A Team Approach to Producing Multi-Media Laptop and Video Formatted Presentation Tinkertoys Revisited: Exploring Trust Based Relationships Overall Dominance in Total Enterprise Simulation Performance Success or Bankruptcy: The Relationship between Personal and Goal Orientation and Simulation Performance Assessing the Effects of Feedback: Muti-method and Muti-directions in Multi-pedagogical Courses The Missing Ingredients in Experiential Learning Purpose and Learning Benefits of Business Simulations: A Design and Development Perspective Building Capabilities for Change through Laboratory Simulations Modeling Innovation as a Process of Design in Educational Business Simulation The Need to Measurer variance in Experiential Learning and a New Statistic to do so Assessing Effectiveness of an Experiential Oriented Course Over Time Developing Participant Satisfaction Models of Experiential Exercises in Business Education Perceptions of Learning in TE Simulations Students' View on the Use of Business Gaming in Hong Kong Management Gaming's Lost Opportunity: Meditations about the Russian Experience and Prospects for the Future Unanticipated Enhancements in the Business Strategy and Policy Game when Running in Windows 95 Using a Business Game to Demonstrate Broad Business Concepts A New Model for Business Courses (Getting the Student Connected) Seeing the Forest and the Trees: Integrating Knowledge Using Large Scale Simulations in Capstone Business Strategy Classes Is It Here To Stay? A Roundtable Discussion of the Inter-Group Interaction Interactive Tools Used in Applying Financial Concepts Strengthening Essential Skills through a Finance Exercise: Calculation of Beta A Model of Currency Exchange Rates Understanding Currency Exchange Rates: A three-part Exercise Student Experiences in the World Intercollegiate Business Game Competition Student Experiences in the International-Collegiate Business Policy Game Competition Using Boards of Directors in Simulation Environments: Comments From Board Members Sharing Best Practices: Teaching Smarter, Not Harder Star Power: A Simulation for Understanding Power and Empowerment The Marketing Game: A Marketing Principles Simulation Alexander Islands: GSSM Tiny Business Simulator on the WWW Putting Strategy into Strategic Business Games Industry Analysis, Porter's Five Forces Model and Strategic Group Maps in the Business Strategy Game Simulation The Use of Concept Mapping to Improve Student Performance and Understanding of Strategic Management Concepts: A Comparison of Techniques Transformational thinking in the Organizational Behavior Course: The Use of Metaphor as an Assessment Tool Creation of a Virtual Learning Community for the Global Virtual Enterprise Project Inter Institutional use of Educational Resources: Joint Use of Management Simulation Games Business Insights: Theory and Practice with the Aid of a Business Simulation Progress: An Experiential Exercise in Development Marketing The ABC's of teaching the Theory of Constraints to Undergraduate Business Students Demonstrating Principles of Organizational Purchasing Behavior through an Experiential Exercise The Virtual Manager: A Different Simulation for Managing Complexity When the Rules are changing and Chaos Breeds Innovation: Recapturing the Value of Constructive Thinking and Play in Simulation Training The Pitfalls, and Potential, of Actual Events as Problem Drivers Using Business Games to teach Environmental Awareness and Green Management: The International Experience with the ENSIM Game A Review of my ABSEL-Related Work Simulation of Government: A Workshop Using GEO Creating Internet-Based Games Using Perl and JavaScript Who's on First? Exploring the Concepts of Problem-Based Learning, Experiential Learning, and Lifelong Learning Students Learn Customer Service and Selling while Conducting Research So You Want to Run an NFL Football Team–An Honors Interdisciplinary Project Supervised Internship: The Employer's Perspective Using Computer Assisted Simulation to Teach International Business Strategy: A Case of the Multinational Management Game (MMG) Multi-Cultural Experiential Learning: A Computer Simulation in China An Appreciative Stance on Diversity as We Move into the 21st Century: A Timeline Exercise to Identify Key Experiences in Good Work Relationships between Black and White Peers A Day in the Life of an Interactive, Real Time, and Internet Delivered Course: A Demonstration Comparing Internet Search Engines: An Experiential Learning Exercise Total Enterprise Simulations and the Internet: Assessing Student Perceptions and Preferences Teaching Accounting Information Systems in a Practicum Format Providing Experiential Learning in Accounting through a Field Study Payroll Project A Spreadsheet Based Business Simulation Game Computer-Behavioral Simulations Training for Project Managers Simulation Scenarios - Rationale and Illustration