Question
Read the explanations on advertising experiment (and on sales force experiment) on page 18 of the student guide and examine the following screen shot for
Read the explanations on advertising experiment (and on sales force experiment) on page 18 of the student guide and examine the following screen shot for Market Study 11 from the perspective of Company 1. Based on this collective information, how much sales increase (in % terms) could Company 1 expect to achieve with product Baller if it were to double its advertising expenditure in the next Period, assuming everything else is unchanged? What would you recommend that your company do with regard to total advertising spending on both products in the next decision round? Note: The negative numbers represent how the sales of your competitors products will be (negatively) impacted as you double your advertising spending, all else being unchanged. SUBJECT is MARKETING
Content from page 18 -
10. Sales force experiment This study reports the percent change in demand for all products if you were to increase your sales force by a certain factor (usually 2). Demand differs from market share in that it does not include the effect of you or your competitors producing too few products. Note that a +10% change in demand means the demand for your product will increase by a factor of 1.1. It does not mean that you should add 10 percentage points to your market share to obtain the result of the experiment!
11. Advertising experiment This study is the same as for the Sales Force, except that the Advertising budget is adjusted and the percent change in demand is reported.
Market Study 11: Advertising Experiment Run Name: TGaoDemo-W1 Market: Devices Company: Comp 1 (Company 1) Period: O0 Alpha 154% 154% -50% -50% 50% 50% 50% 50% Beta 154% 154% 5090 50% 5090 5090 50% 50% Gamma 154% 154% 50% 50% 50% 50% 50% 50% Delta 154% 154% -50% -50% 5090 5090 50% 50% Epsilon 154% 154% 50% -50% 50% 50% Total 154% 154% 50% -50% 50% 50% 50% 50% Company Product Baller Comp 1 Comp 2 Comp 3 Comp 4 BannessS Caster Camst Danil Daibi Faldo Fano 50% 50% Percent change in demand if your Advertisement expenditure were multiplied by 2.0 (For example +100 means that twice as many purchasers would want to buy the product, if everything else including competitors' actions were held constant. Note that stock-outs can prevent demand from being met.) Market Study 11: Advertising Experiment Run Name: TGaoDemo-W1 Market: Devices Company: Comp 1 (Company 1) Period: O0 Alpha 154% 154% -50% -50% 50% 50% 50% 50% Beta 154% 154% 5090 50% 5090 5090 50% 50% Gamma 154% 154% 50% 50% 50% 50% 50% 50% Delta 154% 154% -50% -50% 5090 5090 50% 50% Epsilon 154% 154% 50% -50% 50% 50% Total 154% 154% 50% -50% 50% 50% 50% 50% Company Product Baller Comp 1 Comp 2 Comp 3 Comp 4 BannessS Caster Camst Danil Daibi Faldo Fano 50% 50% Percent change in demand if your Advertisement expenditure were multiplied by 2.0 (For example +100 means that twice as many purchasers would want to buy the product, if everything else including competitors' actions were held constant. Note that stock-outs can prevent demand from being met.)Step by Step Solution
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