m2g overview
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What is music2go (m2g)?
A marketing simulation game-: aninteractive, livemarketingcase studyonline!
Teams competeagainst one another in a simulatedconsumer electronics industry
Based on theUS portable MP3 player (PMP3P) market1995-2001
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What is music2go?
Companion Product to Etzel et al (2002)Marketing
Market Analysis Segmentation
The Marketing Mix
Marketing Strategy
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Five identical student controlled PMP3P firms
Students make decisions relating to all fourareas of the marketing mix
3 consumer market segments differentiated by
m2g Industry Overview:
age
income family tastes
lifestyle
distribution
promotion pricing
product design
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5 Marketing Teams
Three market segments
Sports
Standard
Youth
Controls
Marketing Mix
Product Design
Promotion
Pricing
Distribution
For Control of
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Characterization Product SegmentsFirm Decision
Field
2 Dimensions
- styling
- tech specs
DifferentConfigurations
Emergent Segment
(Sports)
New Segment(Kids)
ContractManufacture
R&D
- product cost
- perceptualconfiguration
music2go and Marketing
a) Product Design
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m2g: Initial Perceptual Map
SegmentKey
Available
Unavailable
TechnicalS
pecs
Style
Sports
Standard
Youth
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Sports
Youth
Standard
T
cSp
Style/Design
m2g: Concluding Perceptual Map
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b) Promotion
Advertising Sales Promotion Optimizing the mix
Media & sub-media
selection
TV
Radio - station format
Newspaper
Magazine - category
Trade shows
Training
Premiums
Point of purchasedisplays
Rebates
Product segments
- lifestyle -demographics
Product lifecycle
Media type/sub-typecharacteristics
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Advertising
Sales Promotion
Product
Awareness
Consumer Demand
(Sales)
Distributorperformance
Distributioncoverage
Promotion: m2g
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c) Distribution
Distribution Channels Optimizing Distribution
Consumer Electronics
(local electronics store)
Department
(e.g Sears)
Discount
(e.g Wal-Mart)
Product Segments
- purchase behavior
- demographics
Channel characteristics
Sales Rep support
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Segment
Channel
# Reps
PotentialSales
Coverage
Demand
(sales)
Repremuneration
DistributorSupport
Distribution: m2g
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d) Price
Market Conditions Optimizing Price
Established product, price
ranges dictated by market
No substitute products
Ability to reduce variable costthrough R&D
Segment characteristics
- elasticity of demand -price ranges
Product lifecycle stage
Channels of distribution
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Market Price Range(segment)
DistributionMarkupSupport
CompetitorPricing
R&D
RecommendedRetail Price
(RRP)
Discount
ManufactureCost
BaseCost
Pricing:M2G
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e) Segmentation
Demographics:
18 years and less
Fashion conscious
Purchases made by
parents
Promotion:
Mass media
Point of sale
promotion
Product
Emphasis onstyling
Distribution
Deep productassortment
Customer service(purchase advice)
Pricing:
$50- $60
Relatively elasticdemand
Youth
Segment
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SportsSegment
Demographics: 19-34 years of age
Active lifestyle
No familycommitments, highdisposable income
Product
Emphasis ontechnology &styling
Pricing:
$100- $150;
Relatively
inelastic demand
Distribution
Deep productassortment
Customer service(advice, after salesservice)
Promotion: Targeted media
Distributor salesforce training
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Demographics: 19-34 years of age
Less active lifestyle vssports
No dependents, highdisposable income
Product
Leverage use ofexisting media
Average styling& technology
Pricing:
$60-$100;
Relatively unit
elastic demand
Distribution
Broad product line(accessories)
Customer service
(sales advice)
Promotion:
Broad reach media
Distributor salesforce training
StandardSegment
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f) The product lifecycle
Marketingvariable
Growth Maturity Decline
Product Improvementin specs
Differentiated
Costreductions
Costminimization
Price Lower overtime
Lowest Increasing
Distribution Intensive Intensive Selective
Promotion Brandpreference
Securingpurchasecommitment
Counteractsubstitution
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music2go: A Summary
Interactive real time business simulation
Application of: Market Analysis
Segmentation
The Marketing Mix
The Product Lifecycle Ideal partner product for marketing course
incorporating Etzel (2002)