Players sometimes ask why they are limited in targeting segments for the first quarter.
Students are only able to target two segments during the first decision round. Certain levels only allow for one segment. The first quarter’s decisions are factored into the calculation of the balanced scorecard. More specifically, the segments chosen as the primary and secondary targets are used to calculate the “Marketing Effectiveness” and “Market Performance” scores for the balanced scorecard.
The “Marketing Effectiveness” score is based on the company’s ability to satisfy the needs and wants of the targeted segment(s).
The primary segment choice should be listed as number “1.’ The secondary segment choice as number “2.” All other segments should be set to “0.” It is OK to rank any and all segments if it helps the team set its priorities. However, only the top two segments are used in the balanced scorecard calculation.
The full calculation details are listed in the <Performance Report>, <Balanced Scorecard> section of the <Task List>.
Note: At any time, students are able to sell to any and all segments. However, a team’s “Marketing Effectiveness” and “Market Performance” scores are based only upon the segments selected as the “primary” and “secondary” segments.
Ideally, students should focus on achieving superior performance in their targeted segment(s) before moving on to other segments. If a firm tries to focus on too many segments early in its development, it will tend to dilute the effectiveness of its marketing efforts.
Clearly, the revenue generated from any sale, no matter the segment targeted, will improve the financial position of the company.