Choices and Market Management
Discuss about the Analysis of Market and Entrepreneurs.
Market management involves the analysis of market to have an overview of what is going on. Entrepreneurs and producers have to make critical decisions pertaining the market choices (Armstrong, 2015.p 35). Market surveillance activity is done to identify the market gaps. Market gaps when identified can be filled strategically to end up with profitable venture (Cherney, 2018.p 63). Intention of this paper is to use Boomtown as case a study to explain the marketing management for new product developers and entrepreneurs.
Choices are inevitable throughout the simulation and so in the real life. Choices in simulation are made to come up with the most profitable venture through the combination of the locations and menu. In real life investors and entrepreneurs make choices on the raw materials to adopt, skills required, business locations, market coverage, and marketing strategies to apply (Cabagnot, 2017.p32).
Simulation involve three choices when it comes to the type of business; food truck, pushcart and research options. All these businesses consist some benefits and limitations and so one has to make an important decision considering the opportunity costs of each one. Three menus namely ice cream, frozen yoghurt and smooth has to be combine critically with six locations namely, beach, art district, city market, train station and university.
The screen shot below express the scores attained in the simulation.
Choices were made basing on the market structuring in the Boomtown. Decision rationale demanded for one to choose wisely what to adopt and what avoid at each stage of the business. This give the profit an upper hand and the increase of the market share for the products and marking the business territories (Fine, 2017.p 11)
Entrepreneur and especially new product developer has to consider the market feedback for a business to proliferate (Paley, 2017.p 67). This was clear during simulation. Companies have to establish a clear protocol of obtaining the market feedback. Market feedback was obtained through a number of ways during the simulation.
Amount of revenue achieved daily was a clear indication of the market situation. Sales of ice cream was done at the beach using the food truck. Information collected in the first week was used for modification of business for the second week.
This provided a platform for gathering information about the taste of the product from the consumers. Suggestion for inclusion and subtractions of certain ingredients and flavors were valued highly. This was used in the improvement of the product helping to achieve high sales volumes.
Hiring of independent body to perform market surveillance.
Five people were paid to do market surveillance and collect the market feedback. This involved giving customers questionnaire with questions about the company and products. The feedback was taken positively and used for improvement.
A business website was created. Customers who buy the product interacted and give their thoughts about the product at the website. Social media provides good platform for customer and business indirect interactions (Newberry, 2017. p56).
Simulation involved making choices right from beginning to the end (Collins, 2017.p 89). Choices included the selection of the business venture, menu and territories. Food truck was operated in the 1st, 3rd, 4th and 5th week. This venture proved to generate more revenues compared to other businesses. This was linked to its size and its ability to be appealing to the locals in Boomtown. However, this business had its own limitations as explained below.
It involved huge risks in term of starting capital to buy the truck with freezers. It also requires huge spaces that leads to high cost of permits and licenses. This business requires one to reason well and prepare well in terms of capital both operational and starting capital.
Some customers experienced were very hostile in terms of taking and paying the products. They complained that the products are of low quality and the cost charged too high. They actually didn’t see the value for their money (Manjiri, 2016.p 106). This was however taken positively and used in the modifications of the products.
Low sales revenues were experienced in the second week at the city market. This was associated to the change of the business to pushcart. The sales were below the average and this was a drawback to the total sales in the five weeks of the simulation.
Boomtown is developing city and it has attracted a lot of small businesses. These businesses provide a headache to any entrepreneur thinking of starting the business at this place. Competition was highly experienced at the at the train center and city market.
This was a major challenge especially in the food truck business. It was restricted to change locations and menu within each week of the business. This provided a challenge and contributed to the daily revenues pull back.
This was done to cope up with the situations in the market (Shiller, 2017.p 647). Modifications to some points were very important in ensuring the continuity of the business. It was done through changing the business venture, location, prices, menu and modre of advertisements (Usui, 2017.p789)
Choices, Modifications and Challenges During Simulation
To begin with, change was made during the 2nd week from the food truck to pushcart and from smoothies to frozen yoghurt and art district to city market. This was a trial to evaluate whether the pushcart can generate good revenues. This was found to be very poor and it leads to low sales volume (Villeneuve, 2017.pp 934-937)
Change in the first week involved to shift from the beach to art center selling smoothies. For a business to be successful, an entrepreneur has to change and move with situations through trying new opportunities. This was driving force for this change.
Modifications was done to shift from one location to another to try increase the market share hence increasing the revenues. As an entrepreneur, one has to make sure all corners of the market are exploited (Woodham, 2017.p35). This was justified in the simulation.
Modification in the mode of marketing was done to increase the awareness of the business to the customers. A truck was fitted with the advertising burners to promote the product and to attract the attention of the people around. This was a promotion technique that involve the exploitation of the available resources (Zhao, 2017.p 83).
Simulation itself acts like a tutorial to guide on the market management and decision making. It couches one to make critical decisions in business (Elangovan, 2016; 43. These decisions are encountered right in the early age of the business and the product life cycle. It teaches the students the power of thinking analytically in business. Right from deciding the name of the business all involves the clear cognitive state. Any typical entrepreneur should think critically and when it come to the market decisions. Any poor decision for market can leads to massive loss and should be avoided in all means possible (Sarigollu, 2014.p 765)
Simulation teaches on the market surveillance and structuring. This enable one to understand kind of customers and their needs. This is a goal to investors since time wasted in the wrong market is reduced.
Time management is a lesson clearly derived from the simulation. The game last between 20- 30 minutes. One has to finish the game within this period. This is the same thing in the real world where one has to achieve certain specified goals within a certain period of time (Cherney, 2018.p 21).
Deciding and knowing the right moment to leave the business making loss is a lesson learnt throughout the simulation. Pushcart was tried in the 2nd week and found to be making loss. Exit from this venture was done strategically.
Lessons from the Simulation
A second chance of simulation
If participation for the second time is allowed, I would not operate pushcart business venture. It is not profitable. It led to low total revenues hence low scores.
Some places was not visited in this simulation. This mean the market was not fully exploited. This can be one of the reasons why there was low record in the total revenues. A second chance can provide an opportunity to cover the whole market hence increase the sale volume.
Business name also can contribute to either making of profit or loss. If given a second chance I would choose an appealing name to attract more customers.
Understanding the competitors well can be done effectively if given another chance of simulation. Previously competitors’ analysis was not done well and this could have contributed to the low sales revenue.
Marketing management system involves a clear set of strategies and decision making. Organizations should invest heavily marketing and in the decision making. This is done through employing the right staffs qualified for specific roles. A poor decision can leads to massive failure in an organization. Market strategies involve understanding the customers, location, legal matters associated to the locations, nature of the competitors, competitors’ products and trends in the market. Keeping these information in mind help entrepreneur to strategize and specify core goals in the market structure.
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