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This week’s problem lies within disagreements between myself and others in the team. Being the marketing director, I was adamant about not wanting to decrease my advertising costs. 

Peter had given us a clear indication that we were spending too much on advertising given how our sale:advertising ratio. However, I did not want to decrease it due to the fact that advertising is one of the main components of getting our products out there and raising awareness. In the back of mind, I did not want to make drastic changes because this will drive our sales/possibly help to increase our SHV. After talking to the marketing director of our parent company, I was confused. From one end, I was told we are spending a reasonable amount but on the other end, I was told we are spending too much? So what do I do? Do I meet in the middle or listen to one person? I listened to one person, Peter. And maybe everyone else on the team that was saying to decrease costs. 

The way I did this was calculating what 20% of our wholesale sales revenue was and allocating that amount on advertising. In total, I decreased about 2.4 mil from our advertising costs altogether, which broke ma heart doing so, but obviously if it’s the logical thing to do, then why would you not do it? 

To see whether this worked, I am going to keep an eye on our reports when the rollover occurs later today. From there, if this has worked out well in our favour, then I will continue to work like this for the last couple of rollovers. I want to try to optimize our marketing costs in the best way possible to ensure the team is happy with all the decisions being made, not just with marketing but overall decisions too. 

2 Comments

  1. Hi Shivi, 

    The problem you've encountered seems to be which approach to utilise given the information you had received and the disagreements around this. When looking at a possible solution for the problem, I find that the best way to approach this is by asking myself "If I could go back and repeat this week, what would I have done differently to ensure the problem does not occur". It is helpful to analyse the results from your decisions to help make better decisions, but how would that help with the disagreements within the team? A possibility could be trying to understand the different possible outcomes for each of the variables propositioned to you. If you were to keep the costs as they were, would they give you similar results or if you were to reduce marketing costs would you be able to reinvest those elsewhere to increase the SHV. On our team when we have a dilemma and opposing views we tend to do further research, we refer to the MikesBikes advanced manual which can be found here: http://ftp1.smartsims.com/versions/latest/manuals/MBAdvancedPlayersManualWebSim.pdf 

    Overall, it was an insightful journal, well structured and succinct. 

    All the best for the rest of the multi-player rounds! 

    Cheers, Pearl 

  2. Hi Shivi,

    There was no such right or wrong actions in this situation, the first thing to do should be asking yourself, what is marketing expenditure actually do and what is the minimum investment that you put to exchange for a greater return on the response of the market share. Everything you need is in the marketing senario report. The only problem of disagreements around this, was that you have to be confident enough and show the evidence to prove that your solutions are much better in this case, otherwise as a team, try to be more rational and smart, that change a little bit won't hurt.