STRATEGIC MANAGEMENT

ASSIGNMENT

Marketing Simulation

BY: -
NAVARAJ JOSHI [PES19G20MB190]
MOHIT KUMAR CHOUDHARY
[PES1PG20MB180]
P VISHNU VARDHAN [PES1PG20MB204]
MOHAMMED AZAIN [PES1PG20MB173]
 ASSIGNMENT 2: Marketing Simulation: Managing
Segments and Customers
-Navaraj Joshi [PES1PG20MB190]

Q1] Mention your role and responsibilities in this simulation.

In this simulation, we take on the role of a newly appointed CEO

tasked with defining and executing a business-to-business (B2B)
marketing strategy for a motion capture sensor company.

Our responsibilities will be to determine which customer segments to

target and how to allocate resources to best position themselves
against the competition and to analyse the requirements of each
segment, gradually focus on each segment individually, by allocating
resources and funding to the required component of the budget o as to
satisfy the needs of a particular segment.

We will have multiple levers to pull including price, customer

communications, market research, salesforce, product development,
and production costs. 
Some of other roles are as follows:
 To allocate funds for salesforce training and development.
 To allocate funds R&D of the products based on requirements
from each segment.
 To analyse the customer requirements.
 To allocate the Sales force based on requirements from each
segment.
 To vary the prices based on the market demand.

Q2] What are the Learning Objectives of this simulation.

 Understand the link between market-strategy formation,
implementation and execution.
 Understand segmentation, targeting, and positioning.
 Understand how to compete in an evolving landscape of product
performance.
  Manage customer acquisition and customer retention strategies.
 Marketing budget allocation
 Understanding the price sensitivity of different segments.
 To Approach different Customers with different Strategy.
 To acquire the market share by giving high value product at low
cost.
 Acquiring the market share by compromising the profit margins.
 To train and develop the salesforce for efficient communication
between the company and the customers.

Q3] Run this simulation and summarise your best results in

the following parameters. Also mention your strategy to
achieve these results.
 Market share: 10.70%
 Cumulative Revenue: $60,611,318
 Cumulative Profit: $2,539,783
 Score: 52
 Customer satisfaction:
Segment A: 3 Stars
Segment B: 1 Stars
Segment C: 1 Stars
Segment D: 3 Stars
Small customers: 5 Stars

Strategy:
My strategy was to allocate all the resources completely based on the
customer base its requirements and on customer satisfaction/feedback.
Increase the training and marketing communications of salesforce to
reduce the gap between the customer and the company.

Customers placing large-volume orders were roughly divided into

four sub segments (A–D), distinguishable by their purchasing
behaviour and the relative importance they assigned to specific
product features.
Segment A places a premium on the sensors' battery life and
generally requires a high level of sales support due to the requirement
for customization.

Segment B places a premium on small and light sensors, and also

values the market and technical knowledge of a manufacturer's sales
representatives.

Segment C, the least price-sensitive of large-volume customers,

requires superior battery life as well as small, easy-to-affix sensors.
These customers conduct sophisticated research for highly technical
applications, therefore their technical standards are stringent.

Segment D is price-sensitive. They buy sensors in bulk for large scale
studies.

Small customers who purchase through distributors are also quite

price-sensitive. Since small-volume purchasers generally have to buy
off-the-shelf sensor packages from a distributor, they are concerned
that the product would be easy to integrate into their software and that
the vendor's product literature would be comprehensive.
 ASSIGNMENT 2- Market Simulation: Managing
segments and customers
-Mohit Kumar Choudhary(PES1PG20MB180)

Q1. Mention your role and responsibilities in this simulation.

 Roles and Responsibilities:

 As the newly appointed chief executive officer of Marker

Motion, Inc., we are now responsible for designing the
company's marketing strategy.
 To understand all aspects of the company's go-to-market
approach (including sales-force deployment and distribution-
channel strategy) and associated elements of product policy,
including pricing and market positioning of the company's
inertial motion sensor line.
 To make critical decisions regarding how marketing resources
such as sales-force time and market-research funds should be
allocated. 
 To determine how MM will meet the needs of the market and its
intended customer base.
 To understand how market segments value MM's product
offering, and decide whether and how MM's positioning relative
to segment needs and behaviours should be changed.
 To make product design decisions by investing in product
features.
 To set product prices across multiple segments and establish
margins for distributors.
 To allocate funds for salesforce training and development.
 To allocate funds for R&D of the products based on
requirements from each segment.
 To analyse the customer requirements.
  To allocate the Sales force based on requirements from each
segment.
 To vary the prices based on the market demand.

Q2. What are the Learning Objectives of this simulation?

 Learning objectives of the simulation are:

 To understand the basic requirements of each segment and

acting upon in the best of their interests.
 The pricing strategy should be in the lines of all the competitors,
so that customers purchase of the product increases.
 The amount spent on the integrated marketing communication
training is an investment which gives good margins of profit.
 Focussing on our strong hold, i.e. Large customers also helps in
acquiring good profit margins.
 Small customers cannot be neglected even though they represent
30% of overall customers as they help in net profit gains.
 Spending on product development and manufacturing efficiency
of production helps in reducing manufacturing cost and
therefore improves gross margins.
 Providing discounts to loyal customers increases sales and
improves net profit.
 Spending on social media persuasion and direct persuasion
increases sales as it enhances the market reach of the company.
 Market research is important to study the trends and
requirements of customers to customer satisfaction.

Q3. Run this simulation and summarise your best results in

the following parameters. Also mention your strategy to
achieve these results.
 Market share: 15.68%
 Cumulative Revenue: $70,992,934
 Cumulative Profit: $3,163,470
  Score: 61%
 Customer satisfaction- Segment A: 1 stars
Segment B: 1 stars
Segment C: 2 stars
Segment D: 4 stars
Small Customers: 5 stars

 Strategies that I have used were based on understanding all 4

segments as well as small customers and understanding each one’s
requirements.
 Segment A: It is a loyal segment which is power to size most
important. This segment requires customization thus requiring high
level of sales support. So I increased its sales force requirements
and also spend the budget in improvement of their training.
 Segment B: This segment requires small and light sensors also
requires technical expertise so I reduce the sensor pricing which
limits the size of sensors also spending amount on technical
training of salesforce.
 Segment C: This segment requires good battery life so I increased
the expenditure on battery life sensors and also increased the list
price and reduce their discount as they are not price sensitive.
 Segment D: This segment is very high sensitive to price thus
provided them with good discounts and increase the product
quality.
 Small Customers: They are price sensitive and purchase most of
their products from distributors so I increased distributors discount
and made the list price competitive to competitors.

Also improvement in product quality and marketing strategy helps in

getting more net profits.
 ASSIGNMENT 2: Marketing Simulation- Managing
Segments and Customers
P Vishnu [PES1PG20MB190]

Q1] Mention your role and responsibilities in this simulation.

The role in this simulation is to act as a newly appointed CEO tasked

with defining and executing a business-to-business (B2B) marketing
strategy for a motion capture sensor company.

The responsibilities in this simulation are:

 To determine which customer segments to target
 To allocate resources to best position themselves against the
competition
 To analyse the requirements of each segment, gradually focus
on each segment individually, by allocating resources and
funding to the required component of the budget as to satisfy the
needs of a particular segment.
 To allocate funds for salesforce training and development.
 To allocate funds R&D of the products based on requirements
from each segment.
 To analyse the customer requirements.
 To allocate the Sales force based on requirements from each
segment.
 To vary the prices based on the market demand.

Q2] What are the Learning Objectives of this simulation.

 To understand segmentation, targeting, and positioning.

 To understand the link between market-strategy formation,
implementation and execution.
 To understand the price sensitivity of different segments.
 To acquire the market share by compromising the profit
margins.
  To understand how to compete in an evolving landscape of
product performance.
 To manage customer acquisition and customer retention
strategies.
 Marketing budget allocation.
 To Approach different Customers with different Strategy.
 To acquire the market share by giving high value product at
low cost.
 To train and develop the salesforce for efficient
communication between the company and the customers.

Q3] Run this simulation and summarise your best results in

the following parameters. Also mention your strategy to
achieve these results.
 Market share: 4.38%
 Cumulative Revenue: $44,166,786
 Cumulative Profit: $1,906,435
 Score: 38

Customer satisfaction:
o Segment A: 1 Stars
o Segment B: 1 Stars
o Segment C: 1 Stars
o Segment D: 4 Stars
o Small customers: 3 Stars

Strategy:
The strategy was to allocate the resources completely on the basis of
customer base and its requirements and on customer
satisfaction/feedback.
Segmentation of customers is done on the basis of customers who are
placing large-volume orders in which they were roughly divided into
four sub segments (A–D), who can be differentiated by their
purchasing behaviour and the relative importance they assigned to
specific product features.

Segment A places a premium on the sensors' battery life and generally

requires a high level of sales support due to the requirement for
customization. Segment B places a premium on small and light
sensors, and also values the market and technical knowledge of a
manufacturer's sales representatives. Segment C, the least price-
sensitive of large-volume customers, requires superior battery life as
well as small, easy-to-affix sensors. These customers conduct
sophisticated research for highly technical applications, therefore their
technical standards are stringent. Segment D is price-sensitive. They
buy sensors in bulk for large scale studies. Small customers who
purchase through distributors are also quite price-sensitive. Since
small-volume purchasers generally have to buy off-the-shelf sensor
packages from a distributor, they are concerned that the product
would be easy to integrate into their software and that the vendor's
product literature would be comprehensive. Increase the training and
marketing communications of salesforce to reduce the gap between
the customer and the company.
 ASSIGNMENT 2: Marketing Simulation- Managing
Segments and Customers
-Mohammed Azain[PES1PG20MB173]

Q1] Mention your role and responsibilities in this

simulation.

Responsibilities and role of simulation:

It helps in Analysis of various data available on pricing, research,
product performance, etc. of existing product as well as the
competition’s product.
Facilitate to analyse the different market segments and needs.
Helps in allocating necessary resources to satisfy each segment’s
requirement and Budgeting decision making.
Ensures to analyse the requirements of each segment, gradually focus
on each segment individually, by allocating resources and funding to
the required component of the budget o as to satisfy the needs of a
particular segment. For example, Segment A requires high battery life
and high level of sales support. By increasing the funding of ‘Battery
life feature spending’ in ‘Product development budget’. Initially this
has to be done by reducing the funding of some other component and
allocating that amount to ‘Battery life feature spending’. The sales
force allocation to segment A should also be increase.

Q2] What are the Learning Objectives of this simulation.

a) Learning budget allocation in marketing with simulation

b) Helps in Understanding that each segment is different and have
different specific requirements.
c) Enhancing the prime Importance of technical knowledge of sales
force.
d) Exhibiting key Importance of market research
e) To Understanding the price sensitivity of different

Q3] Run this simulation and summarise your best results

in the following parameters. Also mention your strategy to
achieve these results.
 Market share: 4.89%
 Cumulative Revenue: $35,363,197
 Cumulative Profit: $1,266,068
 Score:36
 Customer satisfaction:
Segment A: 2 Stars
Segment B: 1 Stars
Segment C: 1 Stars
Segment D: 4 Stars
Small customers: 5 Stars
Strategy:
The strategy was allocate with all the resources completely based on
the customer base the requirements and on customer
satisfaction/feedback.
Increased in training and marketing communications in salesforce to
reduce the bridge gap between the customer and the company.

When Customers placing bulk-volume orders were roughly divided in

4 sub segments (A–D), distinguishable by the purchasing behaviour
and their relative importance they assigned to specific product
features and functions.
In Segment A places a premium on the sensors battery life and
generally requires higher level of sales and support due to the
requirement for customization demands.

While in Segment B places a premium on small and light sensors,

and also values of the market and technical knowledge of a
manufacturer's sales representatives.

Where as in Segment C, the least price-sensitive of large-volume

customers, requires superior battery life as well as small, easy-to-affix
sensors. These customers conduct sophisticated research for highly
technical applications, therefore their technical standards are
stringent.

In Segment D it is price-sensitive. They buy sensors in bulk for large

scale studies.

Small Customers who buy through distributors are also quite price-

sensitive. Since small-volume purchasers generally have to buy off-
the-shelf sensor packages from a distributor, are concerned that the
product would be easy to integrate into their software and that the
vendor's product literature would be comprehensive.