Strategic Marketing Simulation Reflection
Strategic marketing simulation reflection
I was so struggling with making strategies about how to increase the profit margin. It was challenging because it could not be solved by simply offering more discounts to increase the unit sales, or by increasing the motor's price to receive high revenues. Besides those factors, the change of profit margin also involved the spending on features and the strength of sales force. Any one of them changed could lead to a significant difference in the change of profit margin. As the result that my profit margin experienced a big fall due to some bad strategic decisions. Before further explaining the reasons, I would like to draw some interest findings and the corresponding marketing strategies that I made during the simulation.
I would say I was well prepared for this strategic marketing simulation as I read through all the background information and instructions in order to understand what I was supposed to manage with the potential problems that I would face. Based on the background of MM manufacturing company, I tended to apply the skimming strategy, given that the MM motors have high quality with better performance relatively to that of its competitors. As such a high-end products I decided to charge my customers a premium price to make as much as profit as possible. The other reason which also affected me to do so was that the customers from large segment A, B, C showed strong loyalty towards my product and mainly focused on the quality and performance of the motors. However, on the other side, the customer segment D and small customers valued that price level most as they would not have high requirements on the products’ features. For such situation, I decided to increase the motor’s price and offered more discounts to customer from segment D as well as the small customers. Surprisingly, I received an increasing change in the profit margin, and the market share was also going up. Obviously, I was successful in the early
I was so struggling with making strategies about how to increase the profit margin. It was challenging because it could not be solved by simply offering more discounts to increase the unit sales, or by increasing the motor's price to receive high revenues. Besides those factors, the change of profit margin also involved the spending on features and the strength of sales force. Any one of them changed could lead to a significant difference in the change of profit margin. As the result that my profit margin experienced a big fall due to some bad strategic decisions. Before further explaining the reasons, I would like to draw some interest findings and the corresponding marketing strategies that I made during the simulation.
I would say I was well prepared for this strategic marketing simulation as I read through all the background information and instructions in order to understand what I was supposed to manage with the potential problems that I would face. Based on the background of MM manufacturing company, I tended to apply the skimming strategy, given that the MM motors have high quality with better performance relatively to that of its competitors. As such a high-end products I decided to charge my customers a premium price to make as much as profit as possible. The other reason which also affected me to do so was that the customers from large segment A, B, C showed strong loyalty towards my product and mainly focused on the quality and performance of the motors. However, on the other side, the customer segment D and small customers valued that price level most as they would not have high requirements on the products’ features. For such situation, I decided to increase the motor’s price and offered more discounts to customer from segment D as well as the small customers. Surprisingly, I received an increasing change in the profit margin, and the market share was also going up. Obviously, I was successful in the early