Blog 7: Simulation and Chapter Eleven

Our class simulation with MHPractice is going very well. My team (team one) is currently in first place. We have had a great time constructing our backpack, while making sure it satisfies our target market's needs and meets their expectations. Last week, we had to turn in our Income Statement, ROS, Market Share Assignment, which in my opinion went really well. It was great to use the skills I have gained over the years in Excel and incorporate them into this project. This is an example of the income statement we created for the project below. We also had to calculate our sales data, return on sales, market share, break even point for the last five quarters of our simulation.

We then had to create a two page memo outlining what our team has learned from studying the data we created. Here is an excerpt from our memo that covers our current strategy and how we tied the data into the analysis,  Our net income totaled $2,059.85 in round two. We made minor adjustments to our strategy in round three, when we created another distribution deal and marketing developing funds with High End Outdoor. This action we took had a negative impact on the market share, resulting in a decrease from 39% to 35%. Our net income totaled $2,046.85 in round three, which was a bit of a loss compared to the previous round, but still a significant profit for the company. In round four we added the Newspaper as another way of advertising our product. After we had made this decision, our net income for the round had totaled $2,174.25, increasing our market share to 40%. By limiting our advertising we are able to seek out only those who have deep interest in what we produce. Also, by investing in our market places we have produced a total net income of $6,280.95, a total Return on sales of $51,528.00 and a cumulative market share of 114%." This analysis helped us realize what we were doing right and what we can possibly do differently to enhance our backpack company in a positive way. This project was a great way to dig deeper into our simulation, giving us the ability to do more than just the actual decisions we conduct every week.

In class, we have been studying chapter eleven in our textbook, which covers everything that has to do with products, specifically product life style and product branding. In our textbook, product life style is defined as, "the stages a new product goes through in the marketplace; introduction, growth, maturity, and decline"(Kerin, Marketing). Products go through many stages during their life cycle, starting with the introduction stage. During this stage, the product is just being introduced to the market, meaning it may start off slow, and profits may not be too high. If the product begins to become successful, there may be some primary demand due to a low level competitors. There may be a growth stage, which means profits begin to grow at a high level. During the course of the product, it may reach a maturity stage where sales begin to plateau and the company just wants to hold their market shares. Lastly, there is a product decline, which can either be caused by environmental or technological changes. This leaves the company to either delete the product (bring it off the product line) or harvest (lower marketing costs/reducing product advertising).

Thanks for reading!

Blog Six: Building a Consumer Relationship

It has been a while since I have gone into depth regarding our textbook, Marketing Eleventh Edition, and the chapters we have recently been studying. For this blog, I have chosen to write about the conceptual view of customer experience and relationships and how it is integral to running a successful marketing department. The process of forming a strong relationship with your perspective consumers can be difficult. Once a foundation is built and a relationship begins to form, consumer loyalty usually comes into play. There are three important definitions that I want to give before I go any further:

Customer Experience: "The internal response that customers have to all aspects of an organization and its offering"(Kerin, Marketing).

Customer Relationship Management: "The process of identifying prospective buyers, understanding them intimately, and developing favorable long-term perceptions of the organization and its offerings so that buyers will choose them in the market place"(Kerin, Marketing).

Customer Value: "The unique combination of benefits received by targeted buyers that includes quality, convenience, on time delivery, and both before sale and after sale service at a specific price"(Kerin, Marketing).

These three definitions sum up some of the most important factors that go into creating customer based relationships. Without communication, marketing departments would lack the tools necessary to connect with their consumers. If you gain loyalty through proper communication and have a product that satisfies consumers need, you will most likely find yourself with repeat purchasers. When you are in the introduction stage of your product, things may be a little slow at first, but with proper communication skills, customers may chose you over your competitors. I was searching the internet for some examples of how a company can make or break when it comes to customer relationships and I stumbled upon this video:

"Martha Rogers, Ph.D. is an expert in the rapidly evolving fields of customer-focused strategy, customer relationships and increasing demand chain, and managing CRM and DCM ROI, and customer equity. Business 2.0 magazine named Martha Rogers, Ph.D. one of the nineteen most important business gurus of the past century"(www.speakers.ca).

She says, "The most valuable asset you have as a business is your customers". You need to value your customers for who they are today, who they will be tomorrow, how you are going to increase the value of that customer, and how you are going to keep the customer around for the long term. See, the key for any business is keeping your customers satisfied because without customer satisfaction, your business will ultimately fail. Shareholders want you to connect to your customers, so you can grow them bigger, and have them keep buying from you instead of straying to competitors. I really enjoyed this video because it ties directly to what I am trying to convey through this blog. Without a strong customer base, your business will have a hard time growing. Ms. Rogers makes great points when it comes to customer relationship management. I strongly advise you to watch this video if you are interested if building proper relationships with your consumers. The advice given in this video will stick with you and hopefully enhance your knowledge when it comes customer relationships.