University of Texas, Arlington - MANA 4322COMP XM SIMULATION TIPS

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COMP XM SIMULATION TIPS R&D • Max out the MTBF • Position the directly where the market wants it (using the perceptual map) • Try to make it come out the same year. If not, position it corre... ctly, complete all decisions, then come back and see where dates fall. It’s not terrible if it does not come out within the year, you just lose selling time Marketing • Price the products as high as you want. Most likely the market will accept it. For the promo and sales budgets, allocate more money to successful brands. If one brand sucks, don’t waste too much money on it. • For your sales forecast, ignore what the computer tells you o Go to the Inquirer and look up the Market Share portion o Find out the potential size of each market segment for the period you just completed o Multiply that by “100% + the growth rate”  So if market size is 5000 and growth rate is 10%, you do (5000)(1.1) o That gives you the new/expected size for the market segment in each period (you need to do this for all the segments) • Take each product and multiply its market share % by the total market size (this gives you Demand) o So if you have product A and it has a 10% market share in the “X-segment” (5000 members), and 28% market share in the “Y-segment” (6000 members), this is what you’d do to get the sales forecast [Show More]

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