Foundation Rehearsal script


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Unformatted text preview: the Marketing spreadsheet. The marketing spreadsheet is designed to give you some benchmarking feedback about demand as you change values for price, promo, and sales. However, because the computer has no information about your competitor's decisions, the computer's prediction is only useful for testing elasticities. For example, drop Able's price by $1 and click recalculate. The computer's forecast will predict an increase in sales. However, you cannot trust that forecast. Why? The computer has no idea what your competitors will do. They might drop price $2, or raise prices. The computer assumes your product will compete with five mediocre products. On the other hand, a benchmark can be useful. As you change prices and budgets, you can get some sense for their impact upon demand and contribution margin. Are there tips to keep in mind? Put a pessimistic forecast into “Your Sales Forecast.” You would like to know what your cash position looks like in your worst case scenario. In the w...
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This note was uploaded on 01/19/2014 for the course BA 101 taught by Professor Daseau during the Fall '06 term at University of Oregon.

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