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Learning's From TMG Simulation: Product Features
Learning's From TMG Simulation: Product Features
Product Features
Distribution Intensity
The ideal level of intensity depends on the other
marketing mix variables.
If you set the intensity too high for the size of your
salesforce, they became overworked and less effective.
Intensity set too low leads to wasted spending efforts on
personal selling.
Finally, the greater the intensity relative to competition,
the stronger the channel push.
Customer Service
Influences both market share and category demand.
There is an expected customer service amount based on
unit sales.
Actual customer service spending versus expected
customer service gives a ratio.
Lower ratios cause sales and market share to drop.
As an industrys ratio increase, its sales increase (when the
2nd product was introduced, spending in this category was
split for some firms, causing the customer service ratio to
drop and product 1 sales to decline).
Market Segment
Change In Target Market/Segment or the Product
configurations drastically without Calculating the risks
Involved, there are greater chances of Competitors taking
up your market share and which could Eventually lead to
losses in the Existing Market and the New markets as well.
Upon Failure trying a new market segment would be a
good try.
Advertising Spending
Ad spending improves brand awareness and increases
category growth.
Ad spending is relative so increased spending by all firms
leads to a lack of INCREASED awareness.
There is a saturation point for ad spending beyond which
there is very little increased effect on sales and category
demand.
Advertising Type
Pioneering creates category demand.
Direct Competitive increases current ad effectiveness for
the firm, but has very little carryover influence on the firm.
Indirect Competitive increases current ad effectiveness for
the firm (but less so than direct), and there is more
carryover effect.
Reminder is only effective when brand awareness is above
50%.
Corporate is useful for a firm with two products.
Number of Sales Reps