Marketing Simulation Essay
Marketing Strategy for Decision Making
Final Individual Assignment
Reporting on the lessons learned from the simulation exercise
2012
Marketing Strategy for Decision Making
Final Individual Assignment
Reporting on the lessons learned from the simulation exercise
What have I learned…?
About marketing strategy: segmentation and positioning
Sometimes it’s not so important that your product fits the exact needs of the segment you target; rather, it’s vital that customers perceive that you do, even if it’s not true. In order to achieve this, the proper amount of advertising and sending the appropriate message are both vital.
When dealing with several segments, a product can target one segment to specifically to exactly what they want in terms of attributes, or it can be designed to meet the requirements of two or more segments to a certain degree. The latter approach has the advantage of targeting several segments simultaneously. This will depend on the lifecycle of your product to determine the merit of R&D and advertising, and what the competition is doing. If there are many competitors, the probability increases that each competitor will target for exactly one segment, obtaining a majority of the market share for that segment, and rendering a multi-segment strategy useless. Targeting many segments is recommendable if there are few or no competitors in the market.
About competing in an undifferentiated market
In this circumstance, what determines success is how much is invested in advertising to increase brand awareness, and how big of a sales force pushes the product to grab as much market share as possible. Nothing else matters in the short term. In the medium and long term, developing a better product as can help to avoid this situation. However, short and long term measures can be at odds with each other: spending too much on research and development may risk not having enough resources to market current products, and vice versa. Having
Final Individual Assignment
Reporting on the lessons learned from the simulation exercise
2012
Marketing Strategy for Decision Making
Final Individual Assignment
Reporting on the lessons learned from the simulation exercise
What have I learned…?
About marketing strategy: segmentation and positioning
Sometimes it’s not so important that your product fits the exact needs of the segment you target; rather, it’s vital that customers perceive that you do, even if it’s not true. In order to achieve this, the proper amount of advertising and sending the appropriate message are both vital.
When dealing with several segments, a product can target one segment to specifically to exactly what they want in terms of attributes, or it can be designed to meet the requirements of two or more segments to a certain degree. The latter approach has the advantage of targeting several segments simultaneously. This will depend on the lifecycle of your product to determine the merit of R&D and advertising, and what the competition is doing. If there are many competitors, the probability increases that each competitor will target for exactly one segment, obtaining a majority of the market share for that segment, and rendering a multi-segment strategy useless. Targeting many segments is recommendable if there are few or no competitors in the market.
About competing in an undifferentiated market
In this circumstance, what determines success is how much is invested in advertising to increase brand awareness, and how big of a sales force pushes the product to grab as much market share as possible. Nothing else matters in the short term. In the medium and long term, developing a better product as can help to avoid this situation. However, short and long term measures can be at odds with each other: spending too much on research and development may risk not having enough resources to market current products, and vice versa. Having