MEETING YOUR COURSE OBJECTIVES Part 2: Understand the various elements of the marketing mix
In this series, we will take a look at the most common learning objectives for intro and principles level business courses and demonstrate how CapsimCore™ can be effectively used to meet those objectives. Our newest simulation is designed to make business learning fun and engaging at any level.
Objective: Understand the various elements of the marketing mix
In Part 1 of this series, we discussed the decisions made in the functional areas of a business. Specifically, in CapsimCore students make decisions in:
When focusing on the marketing mix we only need to look at the first two departments: R&D and Marketing.
Product – R&D
In CapsimCore, students run a B2B company that produces sensors. Sensors are found in almost every electronic device to detect changes in its environment. For example, your phone probably has a sensor to detect changes in lighting, which it then uses to automatically adjust the screen’s brightness for a better viewing experience.
There are two customer segments that demand sensors in the simulation: High Tech and Low Tech. The High Tech segment wants sensors that are:
- brand new
- small and fast
- and more reliable
The Low Tech segment is more cost conscious. Because they care more about the price, they are willing to purchase sensors that are:
- bigger and slower
- and less reliable
Both segments drift every simulated year, so students must revise their existing sensors and create new ones to keep up with the demand.
Price – Marketing
Students set the price for all of their products in the marketing department. They need to consider what segment each product is in and what it costs to produce each one to ensure they have suitable margins. The simulation provides the ideal price ranges and importance of price for each segment.
Promotion – Marketing
Students also determine a promo budget in the marketing department. The promo budget helps create awareness of their products, which could give them the edge over their competitors. They will have to consider their existing market share and whether or not the opportunity cost favors the investment.
Distribution – Marketing
Finally, students will determine a sales budget. The sales budget helps ensure their products’ accessibility, which can also impact sales. If products are easier and more readily available for purchase they are likely to sell more, all thing being equal.
Put theory to practice
CapsimCore provides a basic introduction to the marketing mix and gives student the opportunity to experience the impact these critical business decisions have on the success of their company.
Try CapsimCore For Free
If you want to test drive the simulation for free, register for our CapsimCore Professor Challenge. You can even win:
- A $5,000 scholarship donated to your school in your name
- Free CapsimCore licenses for an entire class