Step 2: Product, Incentive, Price, and Profit

Marketing Simulation Name: Hour: Step 1: Resources

Item Cost Quantity Needed Total Cost Paper clip $0.05 each

Index card $0.05 each

Rubber band $0.10 each

Popsicle stick $0.02 each

Clear tape $0.25 (flat fee) Used: Yes or No

Masking tape $0.30 (flat fee) Used: Yes or No

Coloring supplies $0.50 (flat fee) Used: Yes or No (markers, colored pencils) Special Order Items $0.50 each Total Cost of Supplies:

Step 2: Product, Incentive, Price, and Profit

Name of Product: ______

Short description of the purpose or use of your product: ______

Incentive: Will you offer an incentive to consumers to buy your product? YES or NO If YES, explain what you will offer and WHY:

What will the cost be to YOU for this incentive? $______

Price: In order to determine a selling price, you must calculate the TOTAL COST to sell your product (cost of supplies + cost of incentive). In order to make a profit, the selling price must be larger than the total cost. $______+ $______= $______total cost of supplies for the product cost of incentive (if applicable) total cost to sell

Price consumers will pay for your product: $______

Total Cost (supplies + incentive): ─ $______

PROFIT per item sold: $______Step 3: Advertising Plan Design a live commercial that you will perform in front of the class to feature and sell your product.

Include in your commercial:

_____ The product’s name _____ The price _____ What your product is used for or what it does _____ Reasons why people should buy your product (include incentive)

Step 4: Consumer Feedback and Profit Using the consumer feedback forms, fill out the chart below.

Number of Products Total Sales Total Cost of Total Profit Sold (Number of Product Sold Production (Total Sales – Total Cost) x The Sales Price) (Number of Products Sold x Cost of supplies for each product)

From the consumer feedback forms, record the reasons consumers liked or disliked your product.

Reasons consumers LIKED your product (decided to buy it):

Reasons consumers DISLIKED your product (decided NOT to buy it):

Step 5: Improving Your Product Using the consumer feedback from Step 4, you may decide to change your product, price, incentive or commercial in order to sell more of your product in the future. List below the change(s) you will make and WHY you are making that change(s).

Step 6: Consumer Feedback, Part 2 Did more consumers buy your product after you made changes in Step 5?

YES or NO (circle one)