''Markstrat'' is a

simulation A simulation is the imitation of the operation of a real-world process or system over time. Simulations require the use of models; the model represents the key characteristics or behaviors of the selected system or process, whereas the s ...

video game Video games, also known as computer games, are electronic games that involves interaction with a user interface or input device such as a joystick, controller, keyboard, or motion sensing device to generate visual feedback. This fee ...

developed by Jean-Claude Larréché and Professor Hubert Gatignon, in which players take control of a virtual

corporation A corporation is an organization—usually a group of people or a company—authorized by the state to act as a single entity (a legal entity recognized by private and public law "born out of statute"; a legal person in legal context) and ...

. Players make a number of decisions in marketing, finance, research and development, and other areas in order to achieve a better performance than competing players, who also take control of their own companies. After the game was developed it was distributed on an ad-hoc basis by the French business school

INSEAD INSEAD, a contraction of "Institut Européen d'Administration des Affaires" () is a non-profit business school that maintains campuses in Europe (Fontainebleau, France), Asia (Singapore), the Middle East (Abu Dhabi, UAE), and North America (San ...

. Markstrat is played in over 500 academic institutions worldwide, including 8 of the top 10 international business schools.

Structure and gameplay

The simulation generally consists of ten periods, in an

industry Industry may refer to: Economics * Industry (economics), a generally categorized branch of economic activity * Industry (manufacturing), a specific branch of economic activity, typically in factories with machinery * The wider industrial sector ...

that contains six

companies A company, abbreviated as co., is a legal entity representing an association of people, whether natural, legal or a mixture of both, with a specific objective. Company members share a common purpose and unite to achieve specific, declared go ...

. Each of these companies, labeled 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 the same products, which are artificial

products Product may refer to: Business * Product (business), an item that serves as a solution to a specific consumer problem. * Product (project management), a deliverable or set of deliverables that contribute to a business solution Mathematics * Produ ...

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. The players should give verdicts on the amount of production of a certain product, the advertisement budget of a product, and the target segments and targeted qualities of the advertisement. The marketing decisions also include the number of the sales force for each product that can be allocated to various sales centers such as

specialty store A specialty store is a shop/store that carries a deep assortment of brands, styles, or models within a relatively narrow category of goods. Furniture stores, florists, sporting goods stores, and bookstores are all specialty stores. Stores such as ...

department store A department store is a retail establishment offering a wide range of consumer goods in different areas of the store, each area ("department") specializing in a product category. In modern major cities, the department store made a dramatic app ...

s and mass merchandisers. 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. 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 to measure the performances of the players.

The uses of the game

Markstrat is mostly used to assess the group dynamics and decision-making processes of the players. It is used in higher level education, incorporated in a certain class such as

Marketing Marketing is the process of exploring, creating, and delivering value to meet the needs of a target market in terms of goods and services; potentially including selection of a target audience; selection of certain attributes or themes to emph ...

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. There are corporations who also use it to assess and boost their employee's skills.

References

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Markstrat Management Development - Experiential Learning for Business Impact
Simulation video games