This simulation explores the concepts of promotion and product life cycle. |
All products pass through several life cycle stages - introduction, growth, stabilization and recession. Promotion of goods refers to using four marketing tools (advertising, PR, inducing sales, and marketing research) for increasing the volume of sales and profit.
The sales growth achieved with the help of active promotion results in the growth of revenue, but, on the other hand, it also requires significant investments. Therefore, it is important to select the optimal level of promotional activities' implementation.
This model allows you to change the amount of promotional investment, and the percentage of total investment going to each of the promotion tools. The graph examines the amount of sales over time (the product life cycle). You can also change the structure of promotional budget allocation for a particular time segment.