The NewShoes simulation

The case study’s NewShoes simulation contains three market segments. These are the domestic, domestic, and international markets (Armstrong, 2013). The home market is a geographic submarket within the home area, which includes the Prairie Provinces of Canada and the Pacific Northwest of the United States, where the corporation is headquartered. The domestic market is a national market that exists within a single country but does not include the home market. In this example, they are the whole Canadian and American markets. Finally, the foreign market encompasses the entire international market that exists outside of the NewShoes Company’s domestic and home territories.  Foreign market differs substantially from domestic and home markets because it is the smallest of the three at the beginning of the simulation. But as the brand becomes popular in the foreign market, the market size is expected to increase significantly.

Marketing Matrix

Home

Domestic

Foreign

Product

High

High

Low

Price

High

Medium

Low

Consumer Promotion

Low

High

High

Advertising

High

Medium

High

Personal Selling

High

Medium

Low

Dealer Promotion

Low

High

High

At the start of the simulation, it is expected that product distribution will be relatively high in both home and domestic markets compared to the foreign market. The price of the product is projected to be lower in the international markets than home and national markets because of the intense competition from other shoe products. Dealer promotion and advertising are expected to be high in foreign markets because of a situation of the new entry. Finally, personal selling in the home market will be higher than in the other markets due to increased popularity of the brand.

Reference

Armstrong, G. (2013). Principles of Marketing. Harlow: Pearson/Education.