1.2 Marketing

The Marketing Department controls each sensor's:

• Price: Customers want sensors priced within expected price ranges;
• Promotion Budget: The department sets a promotion budget for each sensor, which creates awareness– 100% awareness means every customer knows about your sensor;
• Sales Budget: The department sets a sales budget for each sensor, which builds accessibility via sales people and distribution systems– 100% accessibility means every customer can locate your product.

Promotion and sales budgets for each sensor affect sales . In general, higher budgets increase demand. However, the department can choose to hold the line on these budgets and increase demand with lower prices.

Each sensor product is intended for a primary group of customers, also known as market segments. Demand and growth rates for each segment vary. For each product, Marketing needs to determine a sales forecast by assessing:

• Last year's sales
• The intended segment's growth rate
• The relative merits of other products competing in the segment