Week 12 Reflection

The simulation portion of the class continues to speed up as the weeks left of second semester begin to wind down...

Our classes on Tuesday and Thursday involved our class beginning to really dissect our marketing simulation. Whereas last week involved more of a familiarization process with the software, this week we were able to pick apart the numbers and develop an in-depth understanding of the "Allround" company.

An important statistic from the simulation involved a term that I was previously completely unfamiliar with. This term was the "MEI" or the "Marketing Efficiency Index." This figure involves dividing net income by the company's marketing budget, which showcases the return on marketing expenses. For Allround, their MEI at the start of the simulation was 2.71. This means that for every $1 spent on marketing, Allround was earning $1.71 in additional income. This is a very healthy figure, which suggests the company's marketing campaigns and strategies are benefiting the company as a whole.

Besides delving into the operating statistics of the company and looking at market share for Allround in its specific sector, there is another section I would like to touch upon. While filling out our data packet for this simulation, I had to interview someone based on their decision making process for when they purchase cold-remedies. In class on Thursday, listening to everyone's interview stories about their parents was extremely insightful. Personally, I chose to interview my dad, who is largely swayed by cut-out coupons, free "CVS bucks" and weekly specials in buying cold-remedies. On the other hand, other students described habits that ranged from "brand-name only" to "cheapest price" all the way to "whatever brand they grab first off the shelf." Listening to these preferences provided me with the notion that the consumer decision making process is completely and utterly unique to each individual- there is no "cookie cutter" decision making process. Although marketers may be able to group overall decisions and how they are made by consumers, interpreting information is unique to every person based on their previous experiences, beliefs, budget, time, etc. In addition, it became apparent that although on the surface buying cold remedies may be a routine buying process, it actually is more of a limited decision making process. What can also be noted is that when products involve a consumer's health and well-being, consumers will derive more value in their decisions. Therefore, consumers will generally spend more time when evaluating potential products that can help,in this case, mitigate someone's cold symptoms. Health is a common denominator that precedes cultural and socioeconomic backgrounds. However, not everyone has the access and means to buy every product on the market to benefit their health. In this case, store brands prove to be a great alternative for consumers who are still looking for the same benefits from the product, without the cost of a name brand item.

Lastly, different levels of personal, social, and economic risk factors toil with the subconscious of consumers. Some consumers cannot let go of their ego's when buying items, which results in them always buying name brand items. On the other spectrum, some consumers find more risk in buying the name brand items, in case they are not satisfied, and will purchase the cheaper alternative item as a result.

Have a great week.

Best,

-Chris