PresentationSTratsim_torsten_ringberg
Transcript of PresentationSTratsim_torsten_ringberg
Stratsim and Marketing Strategy
Prof. Torsten Ringberg, CBS December 2009
Course Overview
Stratsim Game Textbook Tools Class Participation Homework (short assignments) Quizzes (Stratsim) Exam (textbook)
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Components of Grade Evaluation
Your performance in this course is evaluated as follows: 1. Stratsim Marketing (35%) (influenced by group evaluation)(*) Final position Presentation 15% and Mktg. Plan 5% 2. Stratsim Quiz 3. Attendance and Participation 4. Homework & Exercises (10) 5. Textbook Exam
15% 20% 10% 20% 10% 25%
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Why a Stratsim Simulation?
I hear and I forgetI see and I remember I practice and I understand
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Marketing Learning Goals
Learn analytical tools that can be readily applied to solve real-world problems. Learn to think strategically. Apply theory to Stratsims real world situations Work in teams to enhance both individual and collective learning.
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Wars Pollution Global Warming Infectious Diseases
The Marketing EnvironmentEconomy Legal/Political Physical/Natural Socio-Cultural Technology Demographics Marketing tactics Management Finance Operations Human Resources Accounting
Global MarketplaceMacroEnvironmentMicroEnvironment
Marketing
Organizational Skills
ConsumersMarketing Strategies Competitors Segment/markets Suppliers Potential consumers Rules and regulationsCopyrights Torsten Ringberg
Preferences, Values, Motives Benefits Cost
StratSimMarketing
The StratSim simulation game is designed to apply management tools to strategic marketing decisions in an active and changing environment. You will be part of a small product management team (typically 3 persons) that competes in the auto consumer market. Each group meets throughout the course (in and outside of class) where it will make strategic decisions on a number of variables (e.g., strategic direction, marketing mix, financials, production, consumer and segment positioning, distribution, R&D, ong-term product introductions).
StratSimMarketing
Ties It All Together: Marketing Management Operations Accounting Finance HR
Integrated Long-Term Market-focused
StratSim Environment
Based on the Automobile Industry Two Markets: Consumer & Fleet (B2B) Consumer market of 150 million people B2B market of numerous fleet contracts
Currently, low GDP and inflation growth rates Demand sensitive to GDP, interest rates, and decisions that you make as an industry Maximum of 10 yearly decisions
StratSim Environment
Industry OverviewClassEconomy
PositionSmaller Low Price Mid Size Mid Price Larger, Expensive Mid Size Mid Price Larger, Mid Price Larger, Mid-High Price Mid-Large Size, Mid Price
Segments1, 2
VehiclesAlec, Delite
Example
Family
2, 4
Alfa, Boffo, Cafav, Defy, Efizz Beaut, Climax
Luxury
4, 5
Sports
3
Buzzy
Minivan
2
Camini
Utility
3, 5
Euro, Awesome
Truck
1, 3
Detonka, Estruck
Consumer Market 5 consumer segments (1-5) with different needs and class preferences Customer = Intersection of segment and class (e.g., 1T is a value seeker who wants a truck)
Segments
Value Seekers (1) Families (2) Singles (3) High Income (4) Enterprisers (5)
Customers
1E, 1T 2E, 2F, 2M 3S, 3T, 3U 4F, 4L 5L, 5U
New need-based segements may emerge
Consumer MarketPurchase Process Customers have different needs and expectations with regard to vehicle characteristics Customer consideration set based on product class, size, and MSRP
Consumer MarketPurchase Process Customers prefer a particular size vehicle Customers prefer a specific engine HP due to the trade-off between performance and fuel economy Customers prefer better (more) Interior, Styling, Safety, and Quality Customers weigh this bundle of goods against the price charged
Hints: Customers may have certain hot buttons or attributes that are particularly important to them, and some customers may be more price sensitive than others.14
B2B Market
(optional)
New Opportunity in direct sales to Fleet Buyers: Rental Car Fleets (6) Delivery fleets (7) Other (8) (e.g. Hertz) (e.g. FedEx) (e.g. Govt)
Note: Segments designated 1-5 are consumer customers Segments designated 6-8 are B2B customers. B2B Customers have a very different purchase process from Consumer Market. Guaranteed sales are awarded to firms who meet contract requirements, preferred supplier status (2x sales) awarded to low cost supplier who meets contract requirements.
StratSimMarketingInternal
16
Tools
Integrated Long-Term Market-Focused
Consumer dataCustomer (segment / preferred class) Demand Information
Preferred (expected) price, size and engine range Details on leading vehicles competing for that customer
Hot Buttons and Price sensitivity
18
Test Market
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Decisions
Stratsim Support
One of the real benefits of the simulation experience for faculty and students is the meaningful dialogue that occurs as core concepts are brought to life.
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Market based Management by Roger Best
Choice of Textbook..!?
Gains in marketing knowledge withoutapplication are missed learning opportunities. Roger J. Best USC UCLA Wharton Columbia UW-Madison NYU Dartmouth Vanderbilt-Owen UNC- Chapel Hill UT-Austin UW-Milwaukee
Stanford
Contents Chapter 1 Customer Focus and Managing Customer Loyalty Chapter 2 Marketing Performance and Marketing Profitability Chapter 3 Market Potential, Market Demadn, and Market Demand Chapter 4 The Customer Expereince and Value Creation Chapter 5 Market Segmentation and Segmentation Strategies Chapter 6 Competitor Analysis and Sources of Advantage Chapter 7 Product Positioning, Branding, and Product Line Strategies Chapter 8 Value-based Pricing and Pricing Strategies Chapter 9 Marketing Channels and Channel Mapping Chapter10Marketing Communication and Customer Response Chapter11Portfoli Analysis and Strategic Planning Chapter12Offensve Strategies Chapter13Defensive Strategies Chapter14Building a Marketing PlanCopyrights Torsten Ringberg
Integrating Stratsim game and textbookInitial setupTheory Method
Book
Stratsim
Evaluation based on: Exam
Evaluation based on: Performance
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Integrating Stratsim game and textbook
Theory
Method Topics
Book
Stratsim
Discussions about Stratsim performance in light of theoriesEvaluation based on: Quiz Performance Presentation 3-Year Marketing plan
Evaluation based on: Exam 10 Homework
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Integrating Stratsim game and textbookOverall Marketing Strategy
Book
StratsimMarket Attractivenes Competitive Advantage
Evaluation based on: Quiz Stratsim Performance Stratsim Presentation 3-Year Marketing Plan Homework (10) Exam
Marketing tactics Cash Flow Segmentation Break-Even Analysis Price Elasticity Research and Development Market Analysis Production optimization Conjoint Analysis New Market EntryCopyrights Torsten Ringberg
Perceptual Mapping
NMC = Product Contribution
With product contribution, a company can compare and contrast across product lines before allocating fixed costs.
NMC
F.C.
Marketing Profitability Metrics
Marketing ROI =
Net Marketing Contribution Marketing & Sales Expenses
Marketing ROS = Net Marketing Contribution Sales Revenues
The Bigger Picture
The Marketing StrategyNeeds Customer
Market (5Cs) Marketing Strategy (STP)
Situation SWOT
Competitors Collaborators Company Target Market Selection Place/Channels Pricing Customer Acquisition Profits
Context
Strategy
Market Segmentation Product/Service
Product & Service Positioning Promotion
Marketing Mix (4 Ps and Tactics Service) Marketing Performance AssessmentAction
Customer Retention
Evaluation
Step 2: Situation & SWOT Analyses per SBU
of 5 x Cs Company Competition Consumers Collaborators Context
Strategic Alternatives Stratsim (substantiated through textbook theory/case studies)
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Steps in Segmentation ProcessStratsim Context1. 2. 3. 4. 5. 6. 7.
Needs-based Segmentation Segment Identification Segment Attractiveness Segment Profitability Segment Positioning Segment Acid Test Segment Marketing Mix Strategy
Expand segment positioning strategy to include all aspects of the marketing mix.
Strategy Matrix100
67
Market Attractiveness
33
0 0 33 67 100
Competitive Advantage
Strategy and Key Performance Issues
Positioning Strategy Value Proposition Channel Strategy Performance Objectives
Stratsim Segment SBU 1 Calculate Market Attractiveness Stratsim Segment SBU 2 Stratsim Segment SBU 3 Calculate Competitive Advantage
Stratsim Product-Market information uncovered in Situation and SWOT analyses Competitive Advantage and Market Attractiveness Scores.
1 StratSimMarketing The final position will affect your grade to some extent as follow No. 1 = 100, No 2 = 95, No 3 = 90 No. 4 = 87, and No 5 = 84. Each team prepares a detailed final presentation. A detailed presentation outlined will be handed out. Your team is also required to produce a short but detailed marketing plan (outline will be provided). The marketing plan includes a 5-year strategy (Periods 11-15 in Stratsim) for the Stratsim company that you are in charge of. 2. Stratsim Quiz A Stratsim quiz is given approx. half-way through the semester. This quiz covers the entire Stratsim manual and tests your understanding of the Stratsim game --a thorough understanding will not only help improve your quiz grade but also compete more efficiently in the game.
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Excerpts from Syllabus Capstone Undergraduate Course at University of Wisconsin Madison
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The End
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