2. NewShoes Introduction

3. NewShoes Overview 3 A computer based, competitive simulation of the athletic shoe industry focusing on the 4 Ps of marketing. Students experience the basic processes of marketing: Design a simple marketing plan Use basic marketing research Experience dynamic competition Learn about group decision making Understand financial implications Get comfortable with ambiguity

4. NewShoes Content 4 In this computer simulation, you will take over management of an athletic shoe manufacturer for up to 10 simulated years and make decisions in the areas of: Corporate Decisions: Product Development Contract bid (price) Group Organization Your group plays the role of the marketing management team. Regional Decisions: Price Consumer Advertising Consumer Sales Promotion Salesforce Dealer promotions What market research to purchase

5. NewShoes Setting Multiple markets with different dynamics and needs: Three Regions Home Domestic Foreign 5 * Instructor selected options which are typically introduced during the event.

6. Starting Position (All Teams) Although the firm’s financial performance has improved somewhat from Period -1 to 0, your team will face major challenges as you take charge at the beginning of Period 1. 6 As you take over marketing, the firm is losing money.

7. Market Research Insights about competitors’ decisions plus customer satisfaction: 3 levels of detail* by variable / region: Industry averages ($10K per item) Range + averages ($10K per item) De tail by firm ($25K per item) Weigh cost vs. value of information Some free information in Market: Industry News 7

8. Financial Consider the financial implications of your decisions: Cost of marketing expenditures vs. the impact on sales / profitability. No budget constraints, but limited marginal value on expenditures. Impact of experience curve on COG: Net impact of B2B/contract bid sales. Long- vs. short-term orientation. 8

9. Financial What are the implications of decreasing unit cost due to the experience curve? 9

10. Decisions Regional decisions: Price Consumer Advertising Consumer Sales Promotion 10 Salespeople Dealer Sales Promotion What market research to purchase

11. Decisions Corporate decisions: Product Development Contract Bid (price) Group Organization 11

12. Decision Analysis Multiple tools assist with your decision- making process: Breakeven Analysis Bid Analysis Cost of Goods Calculator Response Functions Estimation 12

13. Reports Multiple Company reports assist with your decision-making process: COMPANY: Dashboard Income Statement Market Share Return on Sales Product Development 13

14. Reports Multiple Market reports assist with your decision-making process: MARKET: Industry News Market Sales Market Research 14

15. Marketing Planning 15 The decision-making process with NewShoes. Continual process for up to 7 simulated years.

16. Performance Measures For a quick snapshot of performance measures, refer to your Company Dashboard: Profit Return on Sales Return on Marketing Unit Sales Revenue Market Share Customer Satisfaction …and more! 16

17. Items to Keep in Mind Marketing planning is a process. Marketing is about numbers and skill (understanding complex research studies, financial implications, forecasting, etc.). Discover market drivers for each region. Think long-term. 17 Don’t underestimate importance of teamwork and organization.