m2g overview

8/3/2019 m2g Overview

1/19

1


2/19

2

What is music2go (m2g)?

A marketing simulation game-: aninteractive, livemarketingcase studyonline!

Teams competeagainst one another in a simulatedconsumer electronics industry

Based on theUS portable MP3 player (PMP3P) market1995-2001


3/19

3

What is music2go?

Companion Product to Etzel et al (2002)Marketing

Market Analysis Segmentation

The Marketing Mix

Marketing Strategy


4/19

4

Five identical student controlled PMP3P firms

Students make decisions relating to all fourareas of the marketing mix

3 consumer market segments differentiated by

m2g Industry Overview:

age

income family tastes

lifestyle

distribution

promotion pricing

product design


5/19

5

5 Marketing Teams

Three market segments

Sports

Standard

Youth

Controls

Marketing Mix

Product Design

Promotion

Pricing

Distribution

For Control of


6/19

6

Characterization Product SegmentsFirm Decision

Field

2 Dimensions

- styling

- tech specs

DifferentConfigurations

Emergent Segment

(Sports)

New Segment(Kids)

ContractManufacture

R&D

- product cost

- perceptualconfiguration

music2go and Marketing

a) Product Design


7/197

m2g: Initial Perceptual Map

SegmentKey

Available

Unavailable

TechnicalS

pecs

Style

Sports

Standard

Youth


8/198

Sports

Youth

Standard

T

cSp

Style/Design

m2g: Concluding Perceptual Map


9/199

b) Promotion

Advertising Sales Promotion Optimizing the mix

Media & sub-media

selection

TV

Radio - station format

Newspaper

Magazine - category

Trade shows

Training

Premiums

Point of purchasedisplays

Rebates

Product segments

- lifestyle -demographics

Product lifecycle

Media type/sub-typecharacteristics


10/1910

Advertising

Sales Promotion

Product

Awareness

Consumer Demand

(Sales)

Distributorperformance

Distributioncoverage

Promotion: m2g


11/1911

c) Distribution

Distribution Channels Optimizing Distribution

Consumer Electronics

(local electronics store)

Department

(e.g Sears)

Discount

(e.g Wal-Mart)

Product Segments

- purchase behavior

- demographics

Channel characteristics

Sales Rep support


12/1912

Segment

Channel

# Reps

PotentialSales

Coverage

Demand

(sales)

Repremuneration

DistributorSupport

Distribution: m2g


13/19

13

d) Price

Market Conditions Optimizing Price

Established product, price

ranges dictated by market

No substitute products

Ability to reduce variable costthrough R&D

Segment characteristics

- elasticity of demand -price ranges

Product lifecycle stage

Channels of distribution


14/19

14

Market Price Range(segment)

DistributionMarkupSupport

CompetitorPricing

R&D

RecommendedRetail Price

(RRP)

Discount

ManufactureCost

BaseCost

Pricing:M2G


15/19

15

e) Segmentation

Demographics:

18 years and less

Fashion conscious

Purchases made by

parents

Promotion:

Mass media

Point of sale

promotion

Product

Emphasis onstyling

Distribution

Deep productassortment

Customer service(purchase advice)

Pricing:

$50- $60

Relatively elasticdemand

Youth

Segment


16/19

16

SportsSegment

Demographics: 19-34 years of age

Active lifestyle

No familycommitments, highdisposable income

Product

Emphasis ontechnology &styling

Pricing:

$100- $150;

Relatively

inelastic demand

Distribution

Deep productassortment

Customer service(advice, after salesservice)

Promotion: Targeted media

Distributor salesforce training


17/19

17

Demographics: 19-34 years of age

Less active lifestyle vssports

No dependents, highdisposable income

Product

Leverage use ofexisting media

Average styling& technology

Pricing:

$60-$100;

Relatively unit

elastic demand

Distribution

Broad product line(accessories)

Customer service

(sales advice)

Promotion:

Broad reach media

Distributor salesforce training

StandardSegment


18/19

18

f) The product lifecycle

Marketingvariable

Growth Maturity Decline

Product Improvementin specs

Differentiated

Costreductions

Costminimization

Price Lower overtime

Lowest Increasing

Distribution Intensive Intensive Selective

Promotion Brandpreference

Securingpurchasecommitment

Counteractsubstitution


19/19

19

music2go: A Summary

Interactive real time business simulation

Application of: Market Analysis

Segmentation

The Marketing Mix

The Product Lifecycle Ideal partner product for marketing course

incorporating Etzel (2002)

m2g overview

Documents