Introduce the marketing simulation and explain the objective
A marketing simulation should be a lot of fun, but you also want to learn something valuable and useful with it. The objective is to help you understand the process of how customers buy your product through an interactive game, but it can also be used for other purposes. In this case, I’m using the marketing simulation for our school paper. The simulation is based on a real-life situation where I manage a new sport product to see if I can gain market share and increase revenue. You manage the marketing process of your product by using marketing channels such as radio, television, newspapers, etc., and introduce your product to your target market. The objective of the class is to help you understand more about theory and strategy in marketing.
Let’s start with a picture of how the exercise is arranged. The simulation includes the following steps:
1) Introduction: You will introduce yourself and your sport product to the class, as well as explain your objectives throughout the game.
2) Market development: You need to decide on which product you want to develop in this marketing simulation. This is crucial; think about who would be your target market, and how you will sell to them.
3) Product introduction: You need to introduce your product (one or more of your product lines) to the class and explain the various benefits of it. Use short, catchy slogans to popularize your product, and create a fun, enthusiastic atmosphere for them.
4) Product promotion: You need to promote the benefits of your product and the various channels that you will use for marketing. You need to inform people about the product, and get them to try it out.
5) Measuring: After you have introduced your product, you now need to measure some key performance indicators (KPIs) that will give you insight into how effective your marketing is. These may be sales figures or traffic figures to your website.
Describe how to manage customer segments and understand their needs
The marketing simulation I chose for this exercise is called “Try It Club” (TIC) and you can find the website for it at http://tryitclub.com/diamond/. The objective of the game is to reach 100,000 new members by the end of the week. You can reach those members by different marketing channels, but the game also tracks your progress through three special statistics: average number of new members per day, percent sold broken down by channel, and amount spent on advertising. As the game progresses, your budget will also be cut each week. That’s why you need to spend more effectively on different marketing channels. It is important to understand the needs of each segment and find strategies that are right for them. In this case, I want to target male consumers over 25 years old between $40,000~$50,000 per year and buy my product through radios because it is inexpensive and we have quite a lot of them in China.
The game starts on June 25th and ends on July 6th. During that week, you can send out up to five emails at the same time per day which will cost you around $35. Three of those emails are free, and the other two cost $0.50 each. You can choose how you want to spend your budget in the beginning of the game, with a fixed amount or with a percent of maximum budget.
Discuss how to create effective marketing campaigns that appeal to different customer segments
As we all know, there are two types of customers: current and potential. The first type is the one that buys and uses your product. In this case, it would be the male population over 25 years old between $40,000~$50,000 per year in China. The objective of marketing channels is to introduce your product to these customers and get them to try it. In terms of marketing messages, the best way to do that is by creating two different segments. The first segment will be used to introduce you product as a new invention and tell how it makes your customers’ life easier. The second segment would be used as an endorsement from some famous figures, such as athletes, actors, etc., that are popular with the public. In this way, you can get the attention of both your current and potential customers.
Examples: “As a university student and businessperson, I often go out to eat at restaurants or to buy lunch with friends. However, when I have time to eat on my own, I prefer to make a sandwich.” “I am planning to buy a new car in the future because my current car is getting old and really needs some repair work.”
This might sound like an obvious method, but it actually not. If you are going to make a sandwich, you have the options of using white bread, whole grain bread, and multigrain bread. If you are planning to buy a new car, there are so many choices that it is often difficult for the average consumer to pick one.
Offer tips for optimizing your results in the marketing simulation
The initial results of this marketing simulation are not very promising. I’ve tried different strategies in order to optimize my results, but it is still not enough to reach 100,000 new members by the end of the week. While we can attribute a lot of things to luck when using a marketing simulation like this, there are still a few tips that can help you optimize your results.
One thing that is obvious is that the number of new members increases much faster when you start from a larger base. The bigger the base you have, the more likely it is to increase. So, if you are trying to reach 100,000 new members, I suggest having more than 100 people already in your network when starting―it will be easier to get new people.
In case you are a large company that has a very large network, it is much easier getting new people than if you were small. So, start from a larger base and build your way up!
I was trying to find out which tactics people used in order to increase the number of their new members. So, I tried different things. However, none of these things seemed to have any effect.
Summarize what you’ve learned about managing customer segments and creating successful marketing campaigns
Soccer is a very popular sport in China, so it is not surprising that there are a lot of clubs around the country. It would be difficult for an outsider to get into these clubs, but I think this simulation will help you understand how to advertise your product and build customer relationships in different parts of the country. At the end of the week, we don’t have enough evidence to conclude if I will be successful or not, but it looks pretty promising so far. There are only a few more days left, so I’ll keep my fingers crossed. Keep up the good work!
# Soccer is a very popular sport in China, so it is not surprising that there are a lot of clubs around the country. It would be difficult for an outsider to get into these clubs, but I think this simulation will help you understand how to advertise your product and build customer relationships in different parts of the country. At the end of the week, we don’t have enough evidence to conclude if I will be successful or not, but it looks pretty promising so far. There are only a few more days left, so I’ll keep my fingers crossed. Keep up the good work!