Week 11 Reflection

Welcome back dedicated readers!

In this week's iteration of my blog, I will highlight the shift in our HONB Marketing class. Up until this point in the semester, we have been learning conceptually by reading chapters from our textbook and doing mind maps. However, since we have finished covering the textbook, it is now time for us to actually apply the concepts we have learned about by making contextual decisions through an online simulation program.

On Tuesday, our class time was dedicated to becoming familiar with the online simulator and how it works. By reading the case study at the beginning of the simulator, we are then tasked with completing certain goals and objectives to satisfy the needs of the company. By changing certain variables, such as product pricing and advertising expenses, stock price will increase or decrease. This provides us with a solid indicator on how well the company is performing based upon our decisions.

On Thursday, each student in the class was assigned a different case study report that shed light on a certain aspect of the "Allstar" pharmaceuticals company. Personally, I looked at the "Operating Statistics" statement which included four of the company's competitors. After reviewing the spreadsheet, it was apparent that the document was basically a glorified income statement that an accountant would put together. The statement showcased the five company's operating statistics from their projected gross margins all the way down to their advertising figure contributions after marketing. However, I chose to view the statement with a more general scope. From the data, I extrapolated that Allstar brand is a small player in the cough syrup sector, as opposed to their competitors due to their low retail sales figure. This is due to the fact that Allstar does not have the product variety that the larger players in their sector do. therefore, their retail sales are bound to be lower than their competitors who offer more products. Another important indication of company health and well-being is gross margin. Gross margins shed light on long term, sustained success for companies because when gross margins are high, so are profits. If Allstar brand wants to increase their gross margins, they should look to either increase manufacturer sales, or decrease either promotional allowance or cost of goods sold, or both.

All in all, getting my feet wet with the simulation has shown me how critical analytic decision making is in the marketing world. Each person is going to interpret data slightly differently, but it is imperative that marketers unite the opinions and wants of many different departments into a common goal. As we progress further into our use of the program, I will be updating you on the things I am learning.

Have a good week,
Chris