When trying to raise the awareness level of your product(s), you need to pay attention to making sure that you are targeting your budgets to the media types that the particular segment watches the most. AwarenessĪwareness is a measure of how many consumers in that segment are aware of your product due to your corporate brand advertising and product advertising.Īn awareness rating of 0.50 means that 50% of the consumers in that segment are aware of your product. You need to remember that the wholesale price is retail price minus the retailer margin, so it’s possible that a cheaper product than yours might have a higher wholesale price if that firm has lower retail margins. Retail Price is the recommended retail price that each firm set for their product(s). Sales is simply how many units the particular product sold last year. The Market Summary Report is a market research report giving a side-by-side comparison of all the products currently being sold in the market. This is a measure of how profitable your firm is as a result of your decisions.
Marketing Contribution is the amount of profit remaining after manufacturing (cost of goods sold) and marketing expenditures have been deducted.
The Media Advertising expenditure allows you to see how much money your competitors are spending on Advertising, but now how they are allocating it to each media type. The Agency Fees let you know whether your competitors are using an Agency or not and how much it is costing them. The Evaluation Research expenditure lets you know how much market research your competitors are purchasing. Note: You have no control over either the wholesale price or the manufacturing cost of your product, so your aim to maximize sales revenue by running the most cost effective advertising campaign that you can. Gross Margin is the amount of profit that each firm made after the manufacturing costs were deducted. The Cost of Goods Sold is the number of units of a particular product sold multiplied by its manufacturing cost. The Sales Revenue listed for each is the total wholesale sales revenue for each company’s products. Click on the image below for an example report: The Industry Benchmark Report is a summary of all firms’ key results so you can benchmark yourself against your competitors. This Photo by Unknown Author is licensed under CC BY You can receive an immediate answer to a number of commonly asked questions through our Support Center.Improving Total Marketing Contribution Need extra help?
MUSIC2GO MARKETING SIMULATION SAILS PROMOTION HOW TO
How to Set Retailer Price and Retailer Margin in Music2Go If you see any inventory disposal costs, then you know that your competitor has either updated an existing product’s design or abandoned one. Firms with large inventories are over forecasting demand. Firms that have no inventory holding costs have stocked out, because they are under forecasting demand for their products. You can gather some valuable market research from looking at the figures for your competitors. $1 million of inventory would be dumped for $935K giving a loss of $65K. If a firm updates a product with a new design or abandons it altogether then all existing inventory is dumped at 93.5% of what the firm paid for it. Inventory Holding CostĮach year all firms are charged 3.5% of the value of their average closing inventory for inventory holding costs to cover the cost of warehousing etc.įor instance, if you have 1 million units of unsold stock at the end of the year at a cost of $40 per unit, then you have $40 million of inventory which will cost:ģ.5% *$40 million = $1.4m in holding cost Inventory Disposal Loss There are two types of inventory costs in Music2Go.
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