Instructions: Complete a five year simulation, and answer the following questions on the actual approach you used for the simulation. You may type your answers directly on this form, but the completed document must be 2-3 pages in length (please do not change the margins). Due November 25, 11:59pm
1. What is your overall strategy (Selling on Price or Value?) A. If selling on low price, what is the implication for decisions you will make on spending (Advertising, PR, Branding, Channel Support, Quality, Efficiency, etc.)?
My Overall strategy eventually was to provide a moderately priced product at suggested cost and again and medial quality. After dabbling in the program for a while, I began to somewhat …show more content…
My marketing strategy essentially was to just focus on advertising since this was stated as having the highest impact on sales. I split up advertising on the mountain bike relatively equal between the three TV, Internet, and Magazines. For the youth bike I focused primarily on the Television aspect of advertising since it controlled 70% of the total targeted audience. I did this keeping in mind that I didn’t want to spend too much on advertising and make the most out of profits from sales. Instead of putting 1 million dollars on television, and three hundred thousand dollars on television and internet, I just opted to put 1.2 million dollars on television and put the extra 600 thousand dollars towards something else, or to simply save it as profit. However, I did notice almost instantly that the competition was putting money into PR based off of the market summary report for the mountain bike and his sales were increasing rapidly on mine, which seemed to stay right around 18,000 each year. This essentially lead me to figure out that PR has a higher importance than I was initially led onto believe. I think that PR and branding also help to establish a solid client base for future purchases. I did try and invest in product support for businesses, but I just didn’t see a high enough response in sales to justify spending the money on that. I believe that is another aspect that doesn’t see results instantly, but builds on itself year to year much like PR and