Texas A & M Central
Graduate Program
MKTK-508 Marketing Management
Online Format
I. INSTRUCTOR
Name:
Dr. Russell Casey
E-mail: For all class matters use Course Email in the Blackboard Course Website.
Position: Adjunct Professor of Marketing, Texas A & M Central
II. COURSE DESCRIPTION
Students will gain a working knowledge of marketing management by learning to think
strategically and to develop marketing plans aligning marketing initiatives with market
opportunities. Students will be able to implement the functional strategies and marketing plans to
optimize customer and organizational value.
IV. COURSE MATERIAL
a. Required Materials
1. Textbooks
Kotler, P. & Keller, K.L. (2012). Marketing Management. 14th or 15th or 16th
Edition. Pearson publishers.
ISBN: 9780132102926
V. SCHEDULE OF ASSIGNMENTS
See more detail below.
Students will prepare an Executive Briefing and Team Business Plan for a computer
company developed as part of participation in the marketing simulation. You will be divided
into teams, as these exercises will be collaborative. Groups will be assigned early in the
semester (Sept. 8th). The Executive Briefing and Team Business Plan will be submitted to
the “Assignment” tab after the end of Quart 4 (Oct. 13th) and Quarter 8 (Nov. 10th).
In addition, you are required to participate in a computer simulation (see details below).
You will be responsible for wrapping up each quarter online at the simulation website.
Your first submit for Quarter 1 will be Sept. 10th (Tuesday) in the third week of class and
then second submit for Quarter 2 will be the Sept. 15th (Sunday) end of the Third week
of class.
Quarter 3 will wrap-up on Sept. 22nd (Sunday), Quarter 4 will submit Oct. 6th
(Sunday), Quarter 5 will submit Oct. 13th (Sunday), Quarter 6 will submit Oct. 20th
(Sunday), Quarter 7 will submit Oct. 27th (Sunday) and the final submit in Quarter 8 will
be Nov. 3rd (Sunday). As part of the simulation you will turn in an Executive Briefing
and Team Business Plan. You will upload your attached files to the “Assignment” tab.
Students are expected answer the discussion question each week, with examples and
supportive evidence, as well as, well-informed, constructive, and relevant comments to
fellow discussion participants during discussion boards (see details below)
FOR ONLINE CLASSES:
1. Weekly Discussion Board: At the beginning of each week, the Professor will post a
discussion questions on the weekly Discussion Board. A rule of thumb is that each
answer should be well thought-out and complete. Post your answers to the week’s
discussion questions as one post and as a reply to the discussion question thread
begun by the instructor. Discussion Question answers each week are due by Thursday 8
AM and students are then expected to critique and comment on each other’s answers.
Weekly Discussion Board Grade: Discussion Board: You are expected to respond to bulletin
board items with some regularity. This means that you are to post at least a few times a week.
You do not have to respond to each and every posting every week. 4-5 substantive* postings a
week will get you there. I do find the more you participate in the discussion the more likely you
are to be less confused and the better grade you earn. Just because you post a response to the
discussion board does not give you full points. The post needs to be well researched, and extend
on a point or class discussion. A post such as I agree with you, is worth little in the form of
participation. Your initial response to the discussion board should be by Thursday by 8am CT
each week.
* Substantive according to Webster: having substance: involving matters of major or practical
importance to all concerned. A posting that is more then merely agreeing with someone else’s
comments. It actually expresses your thoughts, observations, or comments.
Note: Weekly participation will not be required during the Executive Briefing and Team
Business Plan weeks. Week 7 and Week 12
Simulation: Each team will participate in a computer simulation. See more about the simulation
below on Page 13. Due dates can be found in below under the “Schedule of Assignments”
section. The designated Team Leader is responsible for collecting their team member’s work
electronically, consolidating that work, and uploading the Executive Briefing and Team Business
Plan to the “Assignment” tab in Blackboard. Guidelines for this assignment are posted below.
VI. GRADE COMPONENTS
Deliverable & % of Grade
Participation in discussion
board
Date Due
Week 1, 2, 3, 4, 5, 6, 8, 9,
10, 11, 13, 14, 15, 16
Day 7
Executive Briefing
Week 7 (after Quarter 4 in
simulation)
Day 7
Week 13
Week 14
Day 7
(Based on Simulation)
Simulation Performance
Team Business Plan
(Based on Simulation)
Presentation (including
Moderating Discussion
(6pts)Board For Final
Presentation
Evaluating other teams
(4pts)
Total
Points
14 pts. (1 pt.
each week
Final 3
Weeks
Presentations
and
Feedback
additional
pts. see
below.)
10 pts.
45 pts.
20 pts.
6 pts.
5 pts.
100 pts.
VII.TIMETABLE AND REQURED PREPARATION
Week 1
Assignments:
1. Read Chapters 1 and 2.
2. Get familiar with Blackboard and your fellow classmates through the “Welcome”
discussion the discussion board.
3. Participate on Discussion Board for Week 1 at least 2 days during the week
4. Read Syllabus including information on the simulation
Learning Objectives – Chapter One
After reading this chapter, students should be able to:
 Recognize why marketing is important (cc1)
 Describe the scope of marketing (cc1)
 Know some of the fundamental marketing concepts (cc3)
 Explain how marketing management has changed (cc1)
 Recognize the necessary tasks for successful marketing management (cc2)
Topics-Chapter One
This chapter of this textbook introduces the subject and defines marketing and marketing
management. It sets the scene for the remainder of the book.
1.
2.
3.
4.
5.
6.
What is marketing?
What is marketed?
Who markets?
Core marketing concepts
Company orientation towards the marketplace
Marketing management tasks
Learning Objectives – Chapter Two
After reading this chapter, students should be able to:
 Describe how marketing affects customer value (cc2)
 Explain how strategic planning is carried out at different levels of the organization (cc1)
 Identify what is included in a marketing plan (cc4)
Topics-Chapter Two
This chapter presents the key ingredients of the marketing management process. It discusses how
to develop marketing strategies and plans
1.
2.
3.
4.
Marketing and customer value
Corporate and division strategic planning
Business unit strategic planning
The nature and contents of a marketing plan
Week 2
Assignments:
1. Read Chapter 3
2. Participate on the Discussion Board for Week 2 at least 2 days during the week
3. Turn in your self-evaluation to the assignment area of the classroom by Thursday.
Learning Objectives – Chapter 3
After reading this chapter, students should be able to:





Identify the components of a modern marketing information system (cc4)
Recognize what are useful internal records (cc4)
Be able to discuss what is involved with a marketing intelligence system (cc4)
Explain the key methods for tracking and identifying opportunities in the
macroenvironment (cc4)
Know what are some important macroenvironment developments (cc4)
Topics-Chapter Three
This chapter provides information about gathering information and scanning the environment.
The marketing environment is constantly presenting new opportunities and threats and therefore
marketers have to continuously monitor it.
1.
2.
3.
4.
5.
Components of the modern marketing information system
Internal records and marketing intelligence
Analyzing the macroenvironment
The demographic environment
Other macroenvironments
Week 3
Assignments:
1. Read chapter 4
2. Participate on the Discussion Board for Week 3 at least 2 days during the week
3. Submit the Self-Evaluation by Thursday of this week No Exceptions
4. Sign-up for simulation after you have received your email from instructor identifying
your group and how to sign-up for the simulation.
5. Submit Quarter 1 in the simulation by Tuesday 11:45 PM CT
6. Submit Quarter 2 in the simulation by Sunday 11:45 PM CT
Learning Objectives – Chapter 4
After reading this chapter, students should be able to:
 Explain what constitutes good marketing research (cc2, cc4)
 Identify good metrics for measuring marketing productivity (cc4)
 Explain how marketers can assess their returns on investment of marketing expenditures
(cc4)
 Know how companies can more accurately measure and forecast demand (cc4)
Topics-Chapter Four
This chapter is about conducting marketing research and forecasting demand. Good marketers
want insights to help them interpret past performance as well as plan future activities.
1.
2.
3.
4.
The marketing research system
The marketing research process
Measuring marketing productivity
Forecasting and demand measurement
Week 4
Assignments:
1. Read chapter 5
2. Participate on the Discussion Board for Week 4 at least 2 days during the week
3. Submit Quarter 3 in the simulation by Sunday 11:45 PM CT
Learning Objectives – Chapter 5
After reading this chapter, students should be able to:
 Explain customer value, satisfaction, and loyalty, and identify how companies deliver
them (cc1)
 Know what is the lifetime value of customers and how marketers can maximize it (cc1)
 Explain how companies can cultivate strong customer relationships (cc1)
 Illustrate how companies can both attract and retain customers (cc1)
 Discuss database marketing (cc4)
Topics-Chapter Five
This chapter shows how marketers can create customer value, satisfaction and loyalty.
Marketers must connect with customers-informing, engaging, and maybe even energizing them
in the process.
1.
2.
3.
4.
Building customer value, satisfaction and loyalty
Maximizing customer lifetime value
Cultivating customer relationships
Customer databases and database marketing
Week 5
Assignments:
1. Read Chapter 6
2. Participate on the Discussion Board for Week 4 at least 2 days during the week
Learning Objectives – Chapter 6
After reading this chapter, students should be able to:
 Describe how consumer characteristics influence buying behavior (cc1)
 Explain the major psychological processes influence consumer responses to the
marketing program (cc2)
 Describe how consumers make purchasing decisions (cc2)
 Know how marketers analyze consumer decision making (cc2)
Topics-Chapter Six
Marketers are always looking for emerging customer trends that suggCT new marketing
opportunities. This chapter deals with consumer behavior.
1.
2.
3.
4.
What influences consumer behavior
Key psychological processes
The buying decision process: The five-stage model
Other theories of consumer decision making
Week 6
Assignments:
1. Read chapter 7
2. Participate in Week 6 Discussion Board at least two days during the week
3. Submit Quarter 4 in the Simulation by Sunday 11:45 PM CT
Learning Objectives – Chapter 7
After reading this chapter, students should be able to:
 Discuss business markets, and how they differ from consumer markets (cc1)
 Know the buying situations that organizational buyers face (cc3)
 Identify the participants in the business-to-business buying process (cc3)
 Explain how business buyers make their decisions (cc3)
 Discuss how companies can build strong relationships with business customers (cc1)
 Describe how institutional buyers and government agencies do their buying (cc3)
Topics-Chapter Seven
This chapter deals with Business-to-Business Markets. To create value, marketers need to
understand these organizations’ needs, resources, policies, and buying procedures.
1.
2.
3.
4.
5.
6.
What is organizational buying
Participants in the business buying process
The purchasing/procurement process
Stages in the buying process
Managing business-to-business customer relationships
Institutional and government markets
Week 7
Assignments:
1. Read Chapter 8
2. Turn in the Executive Briefing based on the Simulation as a team to the
“Assignments” tab in the classroom by Sunday 11:45 PM
3. Submit Quarter 5 in the simulation by Sunday 11:45 PM CT
Learning Objectives – Chapter 8
After reading this chapter, students should be able to:
 Identify the different levels of market segmentation (cc3)
 Discuss how a company can divide a market into segments (cc3)
 Explain how a company should choose the most attractive target markets (cc4)
 Know what are the requirements for effective segmentation (cc2)
Topics-Chapter Eight
Identifying market segments and target is discussed in this chapter. To develop good marketing
plans, managers need to understand what makes each segment unique and different.
1.
2.
3.
4.
Levels of market segmentation
Bases for segmenting consumer markets
Bases for segmenting business markets
Market targeting
Week 8
Assignments:
1. Read Chapter 9
2. Participate in the Discussion Board Week 8 at least two days during the week
3. Submit Quarter 6 of the Simulation by Sunday 11:45 PM CT
Learning Objectives – Chapter 9
After reading this chapter, students should be able to:
 Express what a brand is and how branding works (cc1)
 Know what brand equity is (cc1)
 Explain how brand equity is built, measured, and managed (cc3)
 Discuss the important decisions in developing a branding strategy (cc2)
Topics-Chapter 9
This chapter is about how to build strong brands. Astrong brand commands intense consumer
loyalty. At the heart of a successful brand is a great product or service
1.
2.
3.
4.
5.
6.
What is brand equity
Building brand equity
Measuring brand equity
Managing brand equity
Devising a brand strategy
Customer equity
Week 9
Assignments:
1. Read Chapters 10 & 11
2. Participate in Week 9 Discussion Board at least two days during the week
3. Submit Quarter 7 in the simulation by Sunday 11:45 PM CT
Learning Objectives – Chapter 10
After reading this chapter, students should be able to:
 Express how a firm can choose and communicate an effective positioning in the market
(cc3)
 Explain how brands are differentiated (cc3)
Topics-Chapter 10
This chapter discusses the concept of brand positioning. As part of the strategic brand
management process, each offering must represent a compelling, distinctive big idea in the mind
of the target market.
1. Developing and communicating a positioning strategy
2. Differentiation strategies
Learning Objectives – Chapter 11
After reading this chapter, students should be able to:
 Explain how marketers identify primary competitors (cc3)
 Discuss how we should analyze competitors’ strategies, objectives, strengths, and
weaknesses (cc2)
 Describe how market leaders can expand the total market and defend market share (cc3)
 Illustrate how market challengers should attack market leaders (cc3)
 Identify how market followers or nichers can compete effectively (cc3)
 The market (cc3)
 Explain how brands are differentiated (cc3)
Topics-Chapter 11
This chapter deals with competitive strategy. Building strong brands requires a keen
understanding of competitors, and competition grows more intense every year.
1.
2.
3.
4.
5.
6.
Competitive forces
Identifying competitors
Analyzing competitors
Competitive strategies for market leaders
Other competitive strategies
Balancing customer and competitor orientations
Week 10
Assignments:
1. Read Chapters 12 &13
2. Participate in Week 10 Discussion Board at least two days during the week
3. Submit Quarter 8 of the Simulation by Sunday 11:45 PM CT
Learning Objectives – Chapter 12
After reading this chapter, students should be able to:
 Describe the characteristics of products and how marketers classify products (cc3)
 Explain how companies can differentiate products (cc3)
 Identify how a company can build and manage its product mix and product lines (cc3)
 Know how companies can combine products to create strong co-brands or ingredient
brands (cc3)
 Know how companies can use packaging, labeling, warranties, and guarantees as
marketing tools (cc3)
Topics-Chapter 12
This chapter deals with how to set a product strategy. The product is a key element in the
marketing offering. At the heart of a great brand is a great product.
1.
2.
3.
4.
Product characteristics and classifications
Product differentiation
Product and brand relationships
Packaging, labeling, warranties and guarantees
Learning Objectives – Chapter 13
After reading this chapter, students should be able to:
 Explain how services are defined and how they differ from goods (cc3)
 Discuss how services are marketed (cc3)
 Discuss how service quality can be improved (cc3)
 Know how service marketers create strong brands (cc3)
 Discuss how goods marketers improve customer-support services (cc3)
Topics-Chapter 13
This chapter deals with the design and management of services. As product companies find it
harder and harder to differentiate their physical products, they turn to service differentiation.
1.
2.
3.
4.
5.
The nature of services
Marketing strategies for service firms
Managing service quality
Managing service brands
Managing product-support services
Week 11
Assignments:
1. Read Chapter 14
2. Participate in Week 11 Discussion Board at least 2 days during the week(for criteria see
Discussion Board information at the beginning of Syllabus above)
Learning Objectives – Chapter 14
After reading this chapter, students should be able to:
 Discuss how consumers process and evaluate prices (cc3)
 Explain how a company should set prices initially for products or services (cc3)
 Describe how a company should adapt prices to meet varying circumstances and
opportunities (cc3)
 Know when a company should initiate a price change (cc3)
 Identify how a company should respond to a competitor’s price change (cc3)
Topics-Chapter 14
This chapter discusses how to develop pricing strategies and programs. Price is the key element
of the marketing mix that produces revenue; the other elements produce costs.
1.
2.
3.
4.
Understanding pricing
Setting the price
Adapting the price
Initiating and responding to price changes
Week 12
Assignments:
1. Read Chapter 15 & 16
2. Participate in the Discussion Board Week 12 at least two days during the week
3. Turn in the Team Business Plan based on the Simulation as a team to the
“Assignments” tab in the classroom by Sunday 11:30 PM
Learning Objectives – Chapter 15
After reading this chapter, students should be able to:
 Identify a marketing channel system and a value network (cc1)
 Know what work marketing channels perform (cc3)
 Describe how channels should be designed (cc3)
 Explain what decisions companies face in managing their channels (cc1)
 Discuss how companies should integrate channels and manage channel conflict (cc1)
 Discuss what are the key issues with e-commerce (cc3)
Topics-Chapter 15
This chapter shows how to design and manage integrated marketing channels. Successful value
creation needs successful value delivery. Marketers must examine the whole value chain.
1.
2.
3.
4.
5.
6.
7.
Marketing channels and value networks
The role of marketing channels
Channel-design decisions
Channel-management decisions
Channel integration and systems
Conflict, cooperation and competition
E-commerce marketing practices
Learning Objectives – Chapter 16
After reading this chapter, students should be able to:
 Identify the major types of marketing intermediaries that occupy this sector (cc3)
 Discuss what marketing decisions these marketing intermediaries make (cc3)
 Describe what are the major trends with marketing intermediaries (cc4)
Topics-Chapter 16
This chapter examines retailers, wholesalers and logistics. The various types of retailers and
wholesalers are discussed.
1.
2.
3.
4.
Retailing
Private labels
Wholesaling
Market logistics
Week 13
Assignments:
1. Read Chapters 17, 18 & 19
2. Participate in the Discussion Board for Week 13 at least two days during the week
Learning Objectives – Chapter 17
After reading this chapter, students should be able to:
 Describe the role of marketing communications (cc3)
 Discuss how marketing communications work (cc3)
 Know what are the major steps in developing effective communications (cc3)
 Explain what the communications mix is and how it should be set (cc3)
 Identify an integrated marketing communications program (cc3)
Topics-Chapter 17
This chapter shows us how to design and manage integrated marketing communications. To
effectively reach and influence target markets, holistic marketers are creatively employing
multiple forms of communications.
1.
2.
3.
4.
The role of marketing communications
Developing effective communications
Deciding on the marketing communications mix
Managing the integrated marketing communications process
Learning Objectives – Chapter 18
After reading this chapter, students should be able to:
 Describe the steps involved in developing an advertising program (cc3)
 Understand how sales promotion decisions are made (cc3)
 Discuss the guidelines for effective brand-building events and experiences (cc3)
 Explain how companies can exploit the potential of public relations and publicity (cc1)
Topics-Chapter 18
This chapter presents mass communications: advertising, sales promotions, events and
experiences, and public relations. Mass media is still very important to companies if used
correctly.
1.
2.
3.
4.
5.
Developing and managing an advertising program
Deciding on media and measuring effectiveness
Sales Promotion
Events and experiences
Public relations
Learning Objectives – Chapter 19
After reading this chapter, students should be able to:
 Discuss how companies can integrate direct marketing for competitive advantage (cc3)
 Describe how companies can do effective interactive marketing (cc3)
 Identify how marketers can bCT take advantage of the power of word of mouth (cc1)
 Understand what decisions companies face in designing and managing a sales force (cc3)
 Know how salespeople can improve selling, negotiating, and relationship marketing skill
(cc3)
Topics-Chapter 19
This chapter deals with personal communications: direct and interactive marketing, word of
mouth and personal selling. New technologies have encouraged companies to move from mass
communication to more targeted, two-way communications.
1. Direct marketing
2. Interactive marketing
3. Word of Mouth and Social Networks
4. Designing the salesforce
5. Managing the salesforce
6. Principles of personal selling
Week 14
Assignments:
1. Read chapter 20
2. Turn in to the classroom “assignments” tab Team Business Plan 11:30 PM Sunday
3. Participate in Week 14 Discussion Board at least two days during the week (Teams 13 post your presentation and comment on others presentations)
Learning Objectives – Chapter 20
After reading this chapter, students should be able to:
 Discuss what challenges a company faces in developing new products and services (cc1)
 Explain the organizational structures and processes used to manage new-product
development (cc3)
 Identify the main stages in developing new products and services (cc3)
 Describe the bCT way to manage the new product development process (cc3)
 Know what factors affect the rate of diffusion and consumer adoption of newly launched
products (cc1)
Topics-Chapter 20
This chapter deals with new product offerings. Companies need to grow their revenue over time
by developing new products and services and expanding into new markets. New product
development shapes the company’s future.
1.
2.
3.
4.
5.
New-product options
Challenges in new-product development
Organizational arrangements
Managing the development process
The consumer-adoption process
Week 15
Assignments:
1. Read chapter 21
2. Participate in Week 15 Discussion Board at least two days during the week (post your
presentation Teams 4 & 5 and comment on others presentations)
Learning Objectives – Chapter 21
After reading this chapter, students should be able to:
 Identify the factors a company should review before deciding to go abroad (cc3)




Examine how companies can evaluate and select specific foreign markets to enter (cc4)
Understand the major ways of entering a foreign market (cc3)
Know to what extent the company must adapt its products and marketing program to each
foreign country (cc3)
Describe how the company should manage and organize its international activities (cc1)
Topics-Chapter 21
This chapter deals with global markets. Products and services developed in one country are
finding enthusiastic acceptance in others. Companies need to be able to cross boundaries within
and outside their country.
1.
2.
3.
4.
5.
6.
7.
Competing on a global basis
Deciding whether to go abroad
Deciding which markets to enter
Deciding how to enter the market
Deciding on the marketing program
Country-of-origin effects
Deciding on the marketing organization
Week 16
Assignments
1. Read Chapter 22
2. Participate in Week 16 Discussion Board at least two days during the week (post your
presentation Team 6 & 7 and comment on others presentations)
Learning Objectives – Chapter 22
After reading this chapter, students should be able to:
 Discuss the important trends in marketing practices (cc4)
 Describe the keys to effective internal marketing (cc1)
 Explain how companies can be responsible social marketers (cc1)
 Discuss how a company can improve its marketing skills (cc4)
 Know what tools are available to help companies monitor and improve their marketing
activities (cc7)
Topics-Chapter 22
This final chapter pulls all the concepts together and deals with the management of a holistic
marketing organization. Holistic marketers must engage in a host of carefully planned,
interconnected marketing activities and satisfy an increasingly broader set of constituents.
1. Trends in marketing practices
2. Internal marketing
3.
4.
5.
6.
Socially responsible marketing
Marketing implementation
Evaluation and control
The future of marketing
Note on uploads to BB9 course website:
Because of compatibility issues with
certain browsers, only upload Word
files saved as 2003 .doc or .rtf files.
By
ErnCT R. Cadotte
Professor of Marketing
University of Tennessee
Knoxville, TN 37996
ecadotte@marketplace-simulation.com
Modifications by
Dr. Russell Casey
Business
Management
The overall objective of this course is to develop your marketing skills. Through computer simulation, we will place
you into a very realistic international business setting where you will run a company for two years in compressed
time (eight rounds of decision-making). You will work closely with a teammate to manage a highly complex and
integrated business. Personal leadership and strong interpersonal skills will be necessary to succeed.
Learning Objectives
This course will employ the Marketplace simulation as a learning environment. The exercise is a transformational
experience. You will learn what it is like to compete in the fast-paced, competitive market where customers are
demanding and the competition is working hard to take away your business.
In the Marketplace, you start up and run your own company, struggling with business fundamentals and the
interplay between marketing, distribution, operations, finance, and accounting. You are given control of a simulated
business and must manage its operations through several decision cycles. Repeatedly, you must analyze the
situation, plan a business strategy to improve it and then execute that strategy out into the future. You face great
uncertainty from the outside environment and from your own decisions. Incrementally, you learn to skillfully adjust
your strategy as you discover the nature of your real-life decisions, including the available options, linkages to other
parts of the business, conflicts, tradeoffs and potential outcomes.
Here is a list of the specific tasks that Marketplace players do:
 Analyze market research data
 Plan and roll out a marketing campaign
 Design brands to appeal to different market segments
 Devise advertising campaigns, sales force incentives, and price option
 Allocate scarce funds to R&D, manufacturing, quality, advertising, and distribution
 Select and prioritize R&D projects, leading to new product features
 Negotiate strategic partnerships with competitors for new technology
 Initiate and defend lawsuits over false advertising
 Set up and manage a distribution channel
 Schedule production and manage plant capacity
 Manage cash
 Negotiate equity and debt financing for new business development
 Compete head-to-head with other business teams
 Adjust strategy and tactics in response to financial performance, competitive tactics, and customer needs.
The specific goal of the simulation exercise is to develop your management skills by giving you an integrated
perspective of the entire business operation. In terms of specifics, the exercise can:








Develop strategic planning and execution skills within a rapidly changing environment
Crystallize the linkages between business decisions and financial performance
Instill a bottom line focus and the simultaneous need to deliver customer value
Internalize how important it is to use market data and competitive signals to adjust the strategic plan and
more tightly focus business tactics
Promote better decision-making by helping you see how your decisions can affect the performance of
others & organization as a whole
Facilitate learning of important business concepts, principles and ways of thinking
Experience the challenges and rewards of the entrepreneur by starting up and running a new business
venture
Build confidence through knowledge and experience
To accomplish all of this, it will be necessary to forge a strong team that can effectively manage many tasks in
concert. Leadership, teamwork and interpersonal skills will be part-and-parcel of what it takes to succeed. Your
team will serve as a live case study within which you can develop your personal style of working with others. You
will deal with such issues as the selection of professional colleagues, working with diversity, organization of work,
decision-making processes, conflict management, performance appraisal, and culture.
Organization of the Exercise
Table 1 contains a chronological listing of selected simulation activities that you and a team of fellow students will
encounter while competing in this exercise. Each quarter or decision period has a dominant activity and a set of
decisions that are linked to it. These dominant activities take the team through the business life cycle from start-up,
to development, to growth, to near maturity. As you work through the business life cycle, we will phase in the
disciplinary material as it becomes relevant to the current decisions of the team. Thus, the delivery of the learning
material is not organized by discipline, but rather by its relationship to decisions being faced by your firm.
Each quarter's activities not only result in new material being introduced, but also build upon the prior content so
that there is considerable repetition. We have found that business activities such as leadership, team management,
pro forma cash flow analysis, value creation in product design, demand-based production scheduling, activity-based
costing, and strategic planning and management are not easily absorbed. They require repetitive exercise in order to
set them into the natural thinking of the students.
For each new decision, there is reading material in the accompanying textbook, The Management of Strategy in The
Marketplace, which lays out the nature of the decision being faced, the issues to be dealt with, its linkages with other
decisions, and the tradeoffs to be considered. The chapters are laid out according to the normal process of starting,
growing, and maturing a business.
Team Effort
You will team up with one other students to form an entrepreneurial firm that will compete in a "business strategy
game." During an eight-week period, you will take your fledgling business through the natural stages of business
growth, including emergence, development, and maturity. Along the way, you will learn to develop and refine your
strategies and tactics.
Virtual Teams
The virtual firm is fast becoming a reality. When you take your job after graduation, you may work out of your
home in Dallas, confer with your management team in London, coordinate shipments from the factory in Shanghai,
all to service the customer in Montreal. You will use cell phones, email, instant messaging, the World Wide Web
and video conferencing to communicate with everyone up and down the supply chain.
To help you learn to work within a virtual organization, the Marketplace exercise will be delivered over the Internet.
In logistical terms, we will create a common data set for the team’s decisions and store it on an Internet accessible
file server. Thus, your team will be able to work from any location where there is a PC with an Internet connection.
Any member of the team will be able to log onto the server, review the current situation on the web, make decisions,
and then save them for the next student to work on. As each team member completes his or her area of
responsibility, he or she will report the analysis and decisions to the rCT of the team for their consideration.
You and your team will still need to confer on your analysis, strategy and tactics. The advantage of this Internet
system is that each team member will be able to work on the most up-to-date decision file so that everyone is
looking at the same data set.
The file server setup will also facilitate the coaching role of the instructor. Just like you, the instructor will be able
to log on at any time to review the current situation with any team or the exercise as a whole. Thus, the instructor
can monitor activity and results and adjust the content of any discussion groups or individual coaching efforts.
Required Texts and Software for Simulation
The simulation that will be used in this course is entitled Business Management (2005) by ErnCT R. Cadotte. It is
available through Innovative Learning Solutions, Inc.
Your software license can be purchased online with a credit card at https://web.marketplacesimulation.com/home/purchase/purchase.php. You will not be able to purchase the license until after your
team has been formed a couple of weeks into the course.
Software Demos and Signup Procedures
Three flash demos have been prepared to introduce you to the Marketplace software. Please go to
http://marketplace-simulation.com/sample-screens/flash-demo.php and review the Student’s Overview,
Student’s Signup, and Business Management demo.
Grade Calculation for Simulation
Team Simulation Performance
A cumulative balanced scorecard for quarters 5 through 8 will be used to
judge the success of each firm. A team’s grade will be determined by its
relative ranking on the CBS compared to the other firms in its industry.
45
Executive Briefing
10
.
Team Business Plan
20
Presentation (includes moderation of week 16 discussion board
and evaluating other groups presentations)
10
85 points
Team Simulation Performance
1st place 45 points
2nd place 42 points
3rd place 40 points
4th place 39 points
5th place 37 points
6th place 36 points
7th place 35 points
8th place 34 points
Wrap Up
The schedule will be posted for the next eight weeks regarding when decisions are due. If a team misses a
wrap up for any reason (since the due dates are listed at the start of the course) the team regardless of the
reason will be penalized 10% of the entire grade for the simulation.
Missing two submits in the semCTer for any reason will lead to a zero out of 160 points. I will explain in our
first chat that you cannot go ahead as the inputs that other students do will affect your decisions in this
course. At the graduate level you should have strong time management skills, please do not miss any of the
submits throughout the simulation. I will reinforce this in chat, as I want you to be successful.
Computation of Simulation Performance
A Balanced Scorecard will be used to measure your firm’s performance. The team’s total business performance will
be based upon its financial performance, market effectiveness, marketing performance, invCTments in the firm’s
future, manufacturing productivity, asset management, and creation of wealth. A total score will be computed for
each firm competing in the Marketplace.
At the end of the exercise, each team will be ranked in the order of performance for the total score. A letter grade
will be assigned depending upon your team’s ranking and how close it is to the team(s) above or below it. The rubric
for assigning the letter grade will also be posted on Blackboard.
Role on the Executive Team
Management of your entrepreneurial firm will be a challenging task. Successful firms divide up the responsibility
and share the workload. You will need to take on one of the following roles:
1)
2)
3)
4)
5)
VP Marketing
VP Sales Management
VP Marketing Research
VP Manufacturing, and
VP Finance and Accounting.
One of our goals is to develop management skills of all the students. For this reason everyone will also take on the
responsibility of managing the team and serve for a period of time as the president of the company. The president’s
job is to manage the schedules and meetings, oversee the assignment of tasks, monitor overall performance
(balanced scorecard) and help the team in every way possible to achieve a strong business performance.
Team Formation
Early in the semCTer, you will prepare a resume to apply for one of the executive positions in the new firm. You
will present yourself to the class and highlight why you are a good candidate for the position you would like to fill.
The teams will be formed via a sports-type draft. The class will be divided into 8 groups of 2 students. One group
will be selected at random to serve as the first president. On the day of team selection, the presidents will step into
the hallway and review the resumes of the first group of students. Each president will pick the first team member
from this group. The order of picking will be random.
Individual Effort
Your performance evaluation will be based upon your team’s performance on the business plan, report to the board
and overall simulation. In addition, you will have personal responsibility for the two or more performance criteria in
the balanced scorecard.
Ownership of Balanced Scorecard. As noted above, you will take on one of the vice-presidential roles within the
firm. To insure that you see the link between your decisions and the balanced scorecard, you will be asked to take
ownership of at least two of the performance criteria that make up the scorecard. At the end of the exercise, part of
your individual evaluation will be judged by how well your firm performed on these criteria compared to the
performance of other firms in your industry.
You Can Be Fired
It is permissible to fire a team member who is not making a substantive contribution to the success of the team.
Missed meetings, poor preparation, failure to complete assignments, etc. are all indicative of underperformance.
Before a person can be fired, the team must give the student an opportunity to correct his or her deficiencies.
In terms of protocol, the team must provide the student with a written statement of the problems associated with his
or her work. A peer evaluation may be used in conjunction with this statement.
When an individual receives a poor performance report, the student must respond in writing as to how he or she will
correct the problems cited. If the problems continue, the team may fire the underperforming team member with a
letter of dismissal. A copy of all correspondence must be submitted to the instructor for approval.
A person who is fired will be assigned to compete in another simulation where the student is responsible for all the
firm’s activities, including weekly decisions, and the preparation of a Business Plan and Report to the Board. This
new simulation will begin in Quarter 1 and continue through the quarter 8.
Being fired will also limit the student’s maximum potential grade by one-and-half letter grade. Specifically, 15
points will be deducted from the student’s final point score for all completed assignments. Thus, if the student
earned a final score of 90 out of 100 points, then the adjusted final score would be 75 points. The final grade would
be based upon the adjusted final score.
The same conditions will be applied if a person quits a team.
Odds and Ends
QuCTions to the Business Coach. The help files in the software contain all of the directions you will need to
participate in the strategic business simulation. Nonetheless, there is a tendency for students to ask the Business
coach for help rather than look in the help files. With the number of students currently playing the game, it can
become a very large burden. For this reason, the instructor/coach will charge $10,000 to answer any question
already addressed in software.
Workload. The first part of the course requires a normal workload for any reading and lecture course. Once the
simulation begins, the work will vary according to the activities within the exercise. During the first quarter of play,
the work is fairly light. However, it will increase each week up through the presentation of the Business Plan.
Students report spending 3 to 4 hours per week during quarters three and four and 8 to 10 hours per week during the
preparation of the Business Plan.
Following acceptance of the business plan, the majority of student’s reports spending 2 to 3 hours per week. This
reduction of time is due to familiarity with the software, game procedures, and market, and having a plan of action
that requires modification rather than creation.
Time Management. Time management will be vital to your success in participating in the Business War Game.
There is more work than any one person can do. Also, it is not wise for everyone to participate in all aspects of the
business. Too much time would be wasted. Therefore, it is necessary to divide up the work. There are suggCTions
on how to divide up the responsibility in the help files within the software. Feel free to depart from these guidelines
if individual preferences, experiences, or workloads would allow a more equitable allocation of tasks. Also, do not
hesitate to reallocate responsibility if conflicts arise or the workload is unevenly distributed.
The president should preside over each executive meeting, making sure that the discussion does not wander from the
business at hand. Each team meeting should begin with an agenda and a timetable. Meetings should not last more
than two hours. Long drawn out meetings are not productive and raise frustration levels about not getting things
done. The meeting should conclude with a set of action items for each executive. The outcome of these actions
should be reviewed at the start of the next meeting.
To facilitate executive meetings, each team member should prepare his/her work in advance. The executive should
know the ins and outs, problems, and tradeoffs of his/her area of responsibility. When the executive committee
meets as a whole, each executive should have a plan of action to recommend to the team. The executive should be
prepared to thoroughly discuss the options open to the company and be flexible on the final decision of the executive
team.
Table 1. Sequence of Simulation Activities
Quarter 1: Organize team to do the job
Focus on process of working as a team to achieve goals
assess team members' skills, personalities, & work styles
set organizational and personal goals
organize the work
determine how to manage the organization
CTablish leadership
Quarter 2: Evaluate market opportunities, setup operations & prepare for tCT market
Analyze market opportunities -- evaluate segments, geographic markets & potential competition
Select target segments
Create customer value -- design initial brands for tCT market
match components to benefits desired (quality function deployment (QFD))
evaluate impact of different components on changeover costs & scale economies
Setup manufacturing operations -- evaluate financial tradeoffs
compare regional cost differences of labor and distribution on plant location
evaluate economy & liquidity of different capacity invCTments
Select tCT markets -- setup sales offices
Quarter 3: Go to market to tCT strategy and market assumptions
Marketing strategy -- evaluate tactical options and choose marketing mix
pricing & price promotions
sales force management - number employed, training, incentives
advertising -- ad copy design, media selection, ad frequency
Manufacturing -- plan production and inventory levels
forecast demand by brand
set 65-day production schedule
Market research -- budget collection of information
Quarter 4: Evaluate tCT market performance and revise strategy, become a learning organization
Evaluate performance
financial performance -- financial statements, ratios, industry norms
market performance -- customer opinion of brand designs, prices, advertising, sales force
competitor tactics -- segments targeted, selection of marketing tactics
Revise marketing and manufacturing tactics as needed and continue tCT marketing
Quarter 5: Seek external funding -- prepare business plan, negotiate
equity invCTment
Evaluate performance - financial, marketing, & competitive
Develop two year business plan
goals - marketing, financial and ownership
marketing strategy
manufacturing strategy
financial strategy
tactical plan chart (show tactics over time)
pro forma cash flows and financial statements
size of equity requCT, number of shares offered and share price
Present business plan to venture capitalists and negotiate equity invCTment
Begin roll out of business plan
Quarter 6: Monitor, improve and execute
Evaluate team - self assessment of roles played, contributions made, & adjustments needed
Evaluate performance - financial, marketing, & competitive
Skillfully adjust strategy
marketing -- make incremental changes in tactics
use activity based costing (ABC) to evaluate profitability of brands, sales outlets
conduct demand analysis to CTimate brand, price, advertising, sales force elasticities
invCT in R&D for new technology
manufacturing -- work on
quality improvements with statistical process control (SPC)
demand-- driven production scheduling
capacity utilization by reducing changeover time and costs
reducing pipeline whiplash by managing market stimulation activities
project cash flows & adjust strategy within financial capability
Quarters 7 - 8: Monitor, improve and execute (continue)
Manage strategy
skillfully adjust strategy to unanticipated competitive moves
continuously improve brand features (R&D), pricing, promotions, distribution
product quality, production efficiency, & asset management
project cash flows & adjust strategy within financial capability
Executive Briefing
Since your invCTors funded you a total of nine million dollars for the simulation they want you
to create a report detailing what your strategies were to be the dominant computer provider in
the world. Please create a DETAILED report of at least four pages that discusses the following:
What is your performance to date? (Balanced scorecard, financial performance). Why is it good
or why does it need improvement? What areas you strong and what areas are you weak as a
company?
Please be sure to discuss your competition (those you are competing against, what type of
computer are they selling, what type of price point they have, and what you are going to do to
try to improve your market position, including forward thinking thoughts such as where you see
opening more sales offices).
What is your plan now that four quarters have passed? What would you do differently (be
specific), and what is your plan to end up being the dominant computer provider in the world?
Again, please be as detailed as if you are really giving this report to an invCTor whose group is
funding you with nine million dollars.
Each and every student must be prepared to defend the analysis and the logic behind all of the
team’s decisions and plans.
Outline for the Business Plan
(this plan needs to be 10 to 12 pages double-spaced as a minimum)
The Business Plan should include the following components:
1. Executive Summary (one page)
2. Review of financial and market performance during the past year
3. Assessment of current situation and the market
A.
B.
C.
D.
Customers
Competition
Company’s strengths and weaknesses
Major problems/opportunities to be dealt with in next year
4. Strategy for the next year in business (What will it take to get ahead or stay ahead?)
A.
B.
C.
D.
Marketing Strategy
Manufacturing Strategy
Sales Channel Strategy
Financial Strategy
5. Financial requCT
A. Amount of money being sought
B. Projected ROI at end of year two
C. Desired stock price and share of company being offered
6. Pro forma cash flow, balance sheet and income statement (Quarter 1 to 8)
7. Tactical plan (Quarters 1 to 8)
The communication style should emphasize objectivity and candor.
Week 14, Week 15 and Week 16 Discussion Board Presentations
Week 16 Discussion Board PowerPoint Presentation, Moderation of Discussion Board and
Evaluation of other teams’ presentations. (Instructions will also be in Week 14, Week 15 and
Week 15 Discussion Board areas)
Using Blackboard Collaborate or another tool that works for you and your group, you want to
create a 15 minute presentation (minimum) including audio with each member of the team
participating by presenting (with audio) part of the presentation.
You will post the link to this presentation that you created using either Collaborate or Elluminate
Live (I suggCT this tool) and it is available from your campus.
There is no fixed format for the presentation, but you want to be sure to cover the eight quarters
of the marketing simulation, what you learned and why you made the decisions you did. Please
be sure to speak clearly, and present professionally as your peers (other teams will be assessing
you on your presentation content and presentation skills).
The teams that aren’t presenting will be sending me a rubric (I will provide) indicating scoring
the teams that presented on different criteria. A portion of your grade will be determined by
how well you assessed others based on the criteria. Thus, please do not give everyone full points
unless they have earned it as this could cause you to lose points for not meeting the criteria.
In week fourteen, teams one & teams two will post their link to their recorded presentations.
They will take that week to moderate (I will help as well) the discussion board for that week.
The next week (fifteen), teams three & four will post the links to their presentations and
moderate the discussion board. The final week (sixteen), teams five & six will post their
presentations and moderate the discussion board.
Please be sure if you aren’t presenting as part of your presentation that week, you are posting to
the discussion board, and uploading the rubric evaluation to the “Assignments” tab of the
classroom for that week. I will be providing the rubric to you.
We are fortunate to be able to do this exercise as I find that evaluating others helps to build our
critical thinking skills and implementing feedback from our peers is a good growing experience.