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. ...
What I did different this time was that instead of pricing the backpacks reasonably, I overpriced the bags at 50$ per unit. And another thing I did different here was that I had made the promotional medium to be internet ads. What I figured would be different this time was that the teenagers tendency to spend time on internet and social media sites would eventually result into them getting more aware about the product, and the psychological play in increasing the price which would lead them into thinking that the product is the one that they must have. I don’t know if the simulator takes the psychological factor into consideration but my changing the medium of promotion actually worked as this time I was able to make a profit out of it. In my fifth turn, I wanted to take it to a different level where I wanted to experiment with the distribution or place aspect of the simulation. I took the details of targeting a sports athlete where the price of the bag was still 50$ and the promotion medium of the backpacks was TV commercials where I had made a profit. This time the distribution channel I used was intensive distribution where the product was in the majority outlets and the dealership was not specialist for the product. In the end the sales were low because of the product being in every outlet where there was no need to put it and the fifth turn ended up making loss. In the sixth and final turn, I again used intensive distribution with the successful simulation for teenagers and still ended up in loss. In the end what I had garnered from the whole analysis was that there had to be a right mix of 4Ps with the correct target market. Reflection What was done in the simulation was trying to come with different ways to make ... Read More