Blog Post for Dec 8

Blog Post for Dec. 8

Today in class we went over the Market Share simulation. We went over how to maneuver through it, looking at all of the different aspects of it. We also went over how to change different aspects of it and advance to the next period, and how to look at the information and see what changed and see what information stayed the same. I actually really like the idea of the simulation; I like how the user can change different pieces of data, such as the pricing, advertising, promotion, point of purchase, etc., over different periods, and then be able to look at the changes. We can look at whether or not their unit sales, net income, market share, consumer satisfaction and so much more, increased or decreased.

Along with learning about the simulation, we also went over the different analysis and calculations. For example, we went over how to break even in costs (SP per unit - VC per unit), marketing budget breakeven (total fixed costs +total marketing expenses / SP per unit - VC per unit), and break even in sales (break even unit sales x selling price per unit).
We also went over margin calculations - how to get the MSRP (manufacturers suggested retail price), the price to channel, the $ margin and % margin.
The worksheet was actually extremely helpful in doing the calculations because it was a step by step process that they walked you through, explaining every step and every calculation.

Overall, this was a very interesting and fun class. I liked being able to play around with the numbers and see how one little difference could change all of the data. It was also helpful to go over the breakeven calculations and margin calculations.