Strategic Marketing Simulation Reflection Essay Example

would not have high requirements on the products’ features.

For such situation, I decided to increase the motor’s price and offered more discounts to customer from segment D as well as the small customers. Surprisingly, I received an increasing change in the profit margin, and the market share was also going up. Obviously, I was successful in the early stage of the simulation. As I have mentioned above, the majority of my customers had a relatively higher standard for the motors’ quality and performance. Particularly, the power-to-size and the thermal resistance were significantly important for their requirements.

As a CEO of MM, I wish my product could stand out in the marketplace. Since the fact that competitors always have certain strengths and abilities, in order to succeed, I must leverage the abilities to differentiate from similar motors in the industry. After checking the current performance of BLDC motors, I found that the level of power-to-size was leading among the competitors; however, the thermal resistance was somewhat below to that of my competitors. Thus, it was necessary for me to spend more on thermal resistance feature improvement to achieve a better performance.

The result after doing so was not as good as what I expected since the market share of customer segment B decreased by 0. 2 precent, although the profit margin was still going up consistently. The question arose in my head was ‘isn’t the change of market share positively related to that of product’s feature spending? ’ Even that I was still believing I was doing right, in order to find out whether such relationship did exist, I decided to invest

a lot more on thermal resistance feature spending than power-to-size feature spending. For this point, i will discuss more in later section with details.

From the above point, of course, the change of the market share does not simply due to one factor. Customer satisfaction level may directly affect the unit sales thus to influence the overall marketing performance of the company. Therefore, increasing customer satisfaction was also an important action in the marketing strategies. Before attempting simulation, I used to regard customer satisfaction was strongly related to the sales force deployment as I thought the more effort put on sales force the higher customer satisfaction would reach.

In term of this point, I would like to give two specific examples to prove my previous thinking was not quite appropriate. One successful example was that the customer satisfaction of segment B was increased to ‘satisfied level’ by enhancing the sales force, as the representative of segment B was dissatisfied with the slow sales responses. However, increasing the sales force would not always increase the customer satisfaction level. I failed to satisfy the customer from segment D since they complained that ‘too much repetitive offering about motor’s features’.

The important failure was that I ignored their real need. The segment D customer was very sensitive to the price change instead of sales force. The correct action I should have taken was to offer more discounts to get them more satisfied. Customer satisfaction is crucial for marketing decision making, but the more important point is that we should get to know well about what the customers really need or what they are unsatisfied with.