The Markstrat Challenge II

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The Markstrat Challenge II
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Markstrat is a simulation designed to focus on
strategic marketing issues

• Understanding customer needs
• Long-term perspective
• Marketing as a profit center
• Competitive environment
• Marketing strategy is based on segmentation,
  positioning, and resource allocation...
  marketing mix decisions are secondary

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Each firm can compete in TWO product markets

• independent
• not substitutes
• not complements

VODITES
SONITES

• Maximum 5 brands/firms marketed at a time

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It is easy to recognize the origin of the brands
from their names
S
I
B
I
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Sonite customers have traditionally been
classified into 5 segments
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...whereas initial studies for Vodites have
pointed to a different segmentation scheme
Typical segment size evolution over time
sales
Followers
Early adopters
Innovators
time
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Your objective in managing your company is to
maximize your Share Price Index

• To do that, you will have to optimize
• Market share
• Sales growth
• Net contribution
• Cumulative net contribution
• R D investments
• .but the main objective is to LEARN!

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You will need to do a certain amount of analysis,
before setting a strategic direction for your firm
Strategic Options

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When you return to your team room, the Main Menu
will be on your screen
Click here to open a session access the
decisions screen
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Within the Decision Screen, you will start making
decisions for the coming period
Click here to make Production, Price
Advertising decisions
The decisions you will make
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Decisions on production, price and advertising
should be entered for each brand
Switch from Sonites to Vodites
You are making decisions for the brand SAMA
Switch from one brand to the other
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The sales force is organized by channel type to
better meet the specific needs of the channels
Click on the assistant to help you allocate to
sales forces automatically
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Buying market research studies will help you make
sound decisions
The cost of each study appears as you make your
selections
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You can monitor the status of your decisions at
any time
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Don't forget to transfer your decisions to your
instructor
You can close your session by clicking on
Interface/Close Markstrat Session
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On your marks, get set, GO!

• Give a name to your company
• Respect the deadlines

Good luck!