Marketing Game Report

The demand for VoiceX seems to have been average in the initial stages and it does seem to have demonstrated some growth throughout the period The price elasticity of the demand also seems to be relatively low at this level . What seems to be possible , however , is that the wholesale price might be too high . It is possible that sales might increase to a much higher level if the prices were reduced to a point where the cover costs , but do not exceed costs by the 100 level that is now being seen

One of the highest market segments is represented by students , many of whom cannot afford expensive things . Making the price more appealing to one of the higher market segments might cause growth in the number of units sold to increase to a level where the revenue does cover the costs

Demand for VoiceX also shows itself to respond favorably to advertising and therefore demonstrates that marketing is essential in gaining the desired sales . In the initial stages when the product was new , the advertising budget was on the low end . The product sales should a respectable level of sales , exceeding 22 ,000 units . The response to increased marketing for the next two periods was that the product sales increased . However , decreasing the advertising budget from 400 ,000 in the third period to 350 ,000 in the fourth period corresponds with a decrease in sales from 27285 to 18309 . This shows approximately a 25 decrease in sales in response to a 12 .5 decrease in advertising . The following period shows a much higher decrease in sales to 7960 units While it is possible that market saturation is responsible for some of this decrease , it is recommended that the advertising budget be increased to it 's 3rd period levels in to generate more sales , as that level may have been optimal

Further recommendations include continuing with the trend of decreasing research and development . According to the product analysis , no major innovations are expected to occur (or to be necessary ) in the near future . However , although the decrease in research and development in the first three periods showed no corresponding decrease in the VoiceX 's sales level , it is recommended that a small amount still be spent on R D if only to stay current with the competition . Still , most of the capital spent on research and development is considered better allocated to as a guard against the kinds of losses that the company incurred in the final period

Since VoiceX seems to be more popular among assistants , managers , and students , and research that does go into the product needs to be focused toward making the product more valuable to these persons . In fact , at the latest stages students and assistants demonstrate a higher degree of growth even than managers , so focusing R D even more narrowly toward those markets may be a valuable decision to make . Marketing , which has been shown to be a powerful tool over the...