Practice Simulation/Reflection - Essay Example

I had set the price of black backpacks that I have targeted the teenagers with to 25$. The distribution channel I set was selective as I was targeting a specific area of the target. The promotion medium I used was through billboards. Even though the price was low, I still lost money in the end because my target market was not the one which was well endowed in the cash department. Rest of the simulations, I wanted to test my area of overpricing the backpacks with different target market and different marketing mix. In the second simulation of mine, the backpack that I was making was targeted towards professional athletes. This time, the distribution channel I used was still selective and the promotion method I used wascommercials. The result was that, I was able to make profit out of this scenario even though the price that I had set was 50$. What I had made of getting the profit out of overpricing was the fact that my target market is on the rich side of the spectrum. On third simulation, the thing that I did different from the second simulation was that that I have set up the promotion of the product through internet. Although the sales were good this time also, but the end result was that I didn’t make any profit in the end. ...