MadRadioProductions

How we made it to the top

Tuesday & Thursday class
Marketing 101
Aaron Pinder
Daniel Santiago
Elisa Salazar
Leyann
Kelvin R

Throughout our time in marketing class, we have tried to master the perfect marketing mix in order to find balance within a business. A marketing mix is a unique blend of product, place, promotion and pricing strategies. The term “marketing mix” was coined in the early 1950s by Neil Borden in his American Marketing Association presidential address. This is one of the preliminary knowledge every marketer must have and is considered to be the basics of every marketing theory; the marketing mix is often referred to as the “Four P’s.
One of the important elements is product. Product is the tangible or intangible product or service that the customer obtains. Price is how much the customer pays for the product. Place is how the product is distributed to the customer. Promotion is how the customer is found and persuaded to buy the product that is being marketed to the consumer. In this paper, we will discuss how each quarter we gained knowledge and used it to our advantage as a business.
Quarter 1
Production Cost: $22.34
Price: $40.00
Starting inventory: 1,938 units
Ending inventory: 1,191 units
Marketing: $90,000 We started off not making any substantial changes due to the fact that we did not understand the cost characteristics for a good marketing mix. In Quarter 0, the quality management was at $15,000 and stayed the same for our Quality Management for Quarter 1. Price was kept at the same amount of $40.00. Plant addition was kept at $3,800. Marketing research was at $7000. At quarter 0, the Research and Development was at $10,000 and increased it to $18,000. Production was at 100 % so we brought production down to 90%. In our smart pack on page 2 it indicates that in order for our plant to operate on optimum cost level it would need to be from 70 to 90 percent capacity. We decided at the current time that 90 percent would be the best route to take with production capacity. Our sales were $23,747 at the cost rate of $40.00 per radio. Each quarter we were given a combination of market research studies. At the current time we did not apply this information to our decision making tactics for running a profitable business.
Quarter 2
Production cost: $22.10
Price: $39.00
Beginning inventory: 1,191 units
Ending inventory: 0 units
Marketing: $105,000

In quarter 2 our company decided to make the following changes. For quality management we changed the amount from $15,000 to $20,000. Marketing was changed from $90,000 to $105,000 and the price was lowered from $40.00 to $39.00. The reason we decided to make these changes so that way we can sell a substantial amount of radios to make a profit. At the time we did not realize this type of marketing strategy would become an unforeseeable mistake which would reflect in this quarter. By lowering our price to $39.00 and increasing our marketing to $105,000, as well as keeping our plant addition at the constant rate to prior quarter, we did not have any growth in production. Thus, this caused our company to sell out our entire inventory with an estimated loss of 7,800 radios. Our production rate was decreased to 85 percent.
Quarter 3
Production cost: $22.27
Price: $42.00
Starting inventory: 0 units
Ending inventory: 0 units
Marketing: $100,000 In quarter 3, the price was changed from $39.00 to $42.00. By boosting the price up to $42.00, we figured this would increase our profit and inventory due to the fact that the following quarter would be Christmas. During the Christmas quarter, it is expected that radio sales would increase substantially. As a company, we felt the amount we spent on marketing was too high so we decreased it from $105,000 to $100,000. Quality management was kept the same at 20 and research and development was kept at 22. Plant addition was