MKTMIX - "MARKET MIX MODEL EXERCISE" Page 1 The...

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Sheet1 Page 1 "MARKET MIX MODEL EXERCISE" Page 1 The "MARKET MIX MODEL EXERCISE" is designed to provide you with experience in measuring elasticities in a market. The exercise utilizes a simulated "market" generated by the program called "MKTMIX" (originally on the BUSLIB library.) The "MKTMIX" simulation assumes you are a market manager with control over three demand creating variables varying these three controllable variables, you can generate different levels of demand in the marketplace. Your assignment is to set up an "experiment" designed to delineate the range of elasticities (i.e., responses) and then use that data to statistically derive the price, advertising, and distribution elasticities that were in effect during your run of "MKTMIX". The following steps and procedures are provided to guide your run and analysis: 1) To load and run, put the "MKTMIX" disk in drive A: and type MKTMIX 2) From the initial screen output, make a note of the initial unit costs. 3) Enter your arbitrary experimental HIGH and LOW values (see class notes) for P (price), A (advertising), and D (distribution/selling). [You can exhaust all possibilities with only eight combinations of high and low vales (2 to the 3rd power) as shown in the table below.] ( H I N T ) Enter previously selected arbitrary high and low values for P, A, and D into the table below prior to running "MKTMIX." When in the program, execute each "trial" or "test" and record the quantity sold under X4. ______________________________________________ | Market | P (X1)| A (X2)| D (X3)|| Q (X4) | | Test |_______|_______|_______||__________| | Trial #| Price | Adver | Dist. ||Qty Sold | |________|_______|_______|_______||__________| | 1 | L | L | L || | | | | | || | |________|_______|_______|_______||__________| | 2 | L | L | H || | | | | | || | |________|_______|_______|_______||__________| | 3 | L | H | L || | | | | | || | |________|_______|_______|_______||__________| | 4 | L | H | H || | | | | | || | |________|_______|_______|_______||__________| | 5 | H | H | H || | | | | | || | |________|_______|_______|_______||__________| | 6 | H | H | L || | | | | | || |
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Sheet1 Page 2 |________|_______|_______|_______||__________| | 7 | H | L | H || | | | | | || | |________|_______|_______|_______||__________| | 8 | H | L | L || | | | | | || | |________|_______|_______|_______||__________| Page 2 When finished with your last marketing mix "TRIAL" run (#8), answer "N" to the question "try again?"
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MKTMIX - "MARKET MIX MODEL EXERCISE" Page 1 The...

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