Markstrat
Encyclopedia
Markstrat is a simulation game, created by Jean-Claude Larréché
, that lets the players take control of a virtual corporation
; making decisions on its behalf. Jean-Claude Larréché and Professor Hubert Gatignon developed the simulation from 1974 to 1977 . After the game was developed it was distributed on an ad-hoc basis by INSEAD
. The game is widely known, and played in over 500 academic institutions, including 8 of the top 10 international business schools and 25 of the top 30 in the US. The players of the simulation have to make number of decisions, in marketing, finance, research and development areas, in order to achieve a better performance than the competing players who also take control of a company.
that contains six companies. Each of these companies - labelled by letters - are player groups that consist of 3 to 6 people. All the companies in the industry start the simulation in the same situation with same products, which are artificial products called sonites. As the game progresses the companies get the chance to develop better products or enter a new market, which is a market for another artificial product called vodite. Unlike the sonite market the vodite market is a new market so the decisions and the actions of the players affect this market differently than the developed sonite market. The players use a wide array of market knowledge, which can be bought as Marketing
Research Studies in order to make decisions.
s, department store
s and mass merchandisers.
On every period the players must submit certain decisions that will affect the progress of their company in the following period. The only time the players can interact with the situation of their company is in the beginning of a period. After the decisions are submitted, the players wait for the results of the next period. Companies’ cumulative net contribution, stock price index, market capitalization and market share are mostly used measure the performances of the players.
or Finance
. Often, the results from the simulation reflect a certain portion of the grade. The game was originally built for MBA students to play, however, because of its ease of use, the simulation became widespread and started being used for both undergraduate and graduate students. Many multinational corporations also use it to assess their employee's skills.
Jean-Claude Larréché
Jean-Claude Larréché is the Alfred H. Heineken Chaired Professor of marketing at INSEAD, a post he has held since 1993. He is known for his pioneering work in the use of computer simulations in marketing training, his work at INSEAD on marketing excellence and customer focus, and his book The...
, that lets the players take control of a virtual corporation
Corporation
A corporation is created under the laws of a state as a separate legal entity that has privileges and liabilities that are distinct from those of its members. There are many different forms of corporations, most of which are used to conduct business. Early corporations were established by charter...
; making decisions on its behalf. Jean-Claude Larréché and Professor Hubert Gatignon developed the simulation from 1974 to 1977 . After the game was developed it was distributed on an ad-hoc basis by INSEAD
INSEAD
INSEAD is an international graduate business school and research institution. It has campuses in Europe , Asia , and the Middle East , as well as a research center in Israel...
. The game is widely known, and played in over 500 academic institutions, including 8 of the top 10 international business schools and 25 of the top 30 in the US. The players of the simulation have to make number of decisions, in marketing, finance, research and development areas, in order to achieve a better performance than the competing players who also take control of a company.
Structure and Gameplay
The simulation generally consists of ten periods, in an industryIndustry
Industry refers to the production of an economic good or service within an economy.-Industrial sectors:There are four key industrial economic sectors: the primary sector, largely raw material extraction industries such as mining and farming; the secondary sector, involving refining, construction,...
that contains six companies. Each of these companies - labelled by letters - are player groups that consist of 3 to 6 people. All the companies in the industry start the simulation in the same situation with same products, which are artificial products called sonites. As the game progresses the companies get the chance to develop better products or enter a new market, which is a market for another artificial product called vodite. Unlike the sonite market the vodite market is a new market so the decisions and the actions of the players affect this market differently than the developed sonite market. The players use a wide array of market knowledge, which can be bought as Marketing
Marketing
Marketing is the process used to determine what products or services may be of interest to customers, and the strategy to use in sales, communications and business development. It generates the strategy that underlies sales techniques, business communication, and business developments...
Research Studies in order to make decisions.
Marketing Decisions
This area of decisions is the most elaborate one. The players should give verdicts on the amount of production of a certain product, advertisement budget of a product, and the target segments and targeted qualities of the advertisement. The marketing decisions also include the number of sales force for each product that can be allocated to various sale centers such as specialty storeSpecialty store
Specialty stores are small stores which specialize in a specific range of merchandise and related items. Most stores have an extensive depth of stock in the item that they specialize in and provide high levels of service and expertise...
s, department store
Department store
A department store is a retail establishment which satisfies a wide range of the consumer's personal and residential durable goods product needs; and at the same time offering the consumer a choice of multiple merchandise lines, at variable price points, in all product categories...
s and mass merchandisers.
Research & Development Decisions
The competing companies also have the chance to create new products to reach various market segments and increase their market share. The characteristics of the products can be changed and made more attractive for the targeted segment. These research projects can either modify the existing products or create new products.Marketing Research Decisions
The players also have the chance to conduct market research and gather information on their customers, their habits and their interests. Many research studies also exist to apprehend the moves competitor groups make. The marketing research makes this information available to companies and the players can purchase the research studies they want.On every period the players must submit certain decisions that will affect the progress of their company in the following period. The only time the players can interact with the situation of their company is in the beginning of a period. After the decisions are submitted, the players wait for the results of the next period. Companies’ cumulative net contribution, stock price index, market capitalization and market share are mostly used measure the performances of the players.
The Uses of the Game
The game, a good measure for performance under pressure, is mostly used to assess the group dynamics and decision-making processes of the players. It is widely used in universities, incorporated in a certain class such as MarketingMarketing
Marketing is the process used to determine what products or services may be of interest to customers, and the strategy to use in sales, communications and business development. It generates the strategy that underlies sales techniques, business communication, and business developments...
or Finance
Finance
"Finance" is often defined simply as the management of money or “funds” management Modern finance, however, is a family of business activity that includes the origination, marketing, and management of cash and money surrogates through a variety of capital accounts, instruments, and markets created...
. Often, the results from the simulation reflect a certain portion of the grade. The game was originally built for MBA students to play, however, because of its ease of use, the simulation became widespread and started being used for both undergraduate and graduate students. Many multinational corporations also use it to assess their employee's skills.