Untitled Quiz

Break-Even Point

• The break-even point is calculated by dividing fixed costs by the difference between the selling price per unit and the variable cost per unit.
• Fixed costs are expenses that do not change with the volume of production.
• Variable costs are expenses that change with the volume of production.

Factors Affecting Pricing Decisions

• Demand is often a key factor in pricing decisions.
• The price of competitors can influence pricing decisions.
• The number of customers in the target market is an important factor.
• Production costs must be factored in when setting prices.
• Customer perception of value is significant.

Demand and Price Increases

• Demand typically decreases as prices increase.
• This is due to the law of demand, which states that as price increases, quantity demanded decreases.

Mark-Up Pricing

• The primary goal of mark-up pricing is to ensure profits for the business.
• This is done by adding a fixed percentage to the cost of goods sold.

Penetration Pricing

• The intention of penetration pricing is to gain market share quickly.
• This is achieved by setting a low initial price, aiming to attract customers and discourage competitors.

Targeted Customer Pricing Strategies

• Value pricing: Emphasizes the value proposition to customers rather than a low price.
• Premium pricing: Targets a niche market with a high price, reflecting high quality and exclusive features.
• Competitive pricing: Aligns prices with those of competitors to stay competitive.

Markup Percentage Formula

• The formula for calculating markup as a percentage of selling price is: (Markup / Selling Price) x 100.

Consequences of Penetration Pricing

• It can result in lower initial profits for the business,
• It can attract price-sensitive customers,
• It can make it difficult to increase prices later.

Hyperlink

• A hyperlink is a clickable link that connects to a specific website, document, or other online resource.

Blog Purpose

• The primary purpose of a blog is to share information, thoughts, and experiences on a specific topic.

Smartphone Internet Usage in South Africa

• A significant percentage of South African consumers use smartphones to access the internet.

App Definition

• The term "app" refers to a software application designed for use on smartphones, tablets, and other mobile devices.

Social Media Marketing 'Do's'

• Engage with your audience and respond to comments and questions.
• Use high-quality images and videos.
• Post consistently and share valuable content.

Social Media Marketing Practices to Avoid

• Posting the same content across all platforms without adapting it to the specific audience.
• Focusing solely on promoting your products or services.
• Ignoring negative comments and feedback.

Mobile Content Considerations

• The content should be optimized for smaller screens.
• The content should be easily accessible and engaging on mobile devices.

Social Media Pitfalls

• Over-posting and overwhelming your audience.
• Engaging in negative or confrontational behavior.
• Not monitoring your brand reputation on social media.

Export Management Company (EMC) Role

• Provides export services, such as market research, customer identification, and logistics management.
• Acts as an intermediary between the exporter and international buyers.

Export Trading Company (ETC) Operation

• Focuses on buying and selling products for export.
• May handle distribution, marketing, and financing tasks.

Export Agent Responsibilities

• Handles export documentation and procedures.
• Facilitates communication between the exporter and overseas buyers.

Piggyback Marketer

• A retailer that sells products in a larger retailer’s store, often with a separate section.
• Uses the larger retailer's customer base for access to new consumers.

Irrevocable Letter of Credit Feature

• A critical feature is that the bank issuing the letter of credit is obligated to pay the exporter if the buyer meets specific conditions.

Letter of Credit Advantage for Exporters

• Provides a reliable means of payment, reducing risk for the exporter.
• Ensures the buyer's financial commitment and the availability of funds upon meeting conditions.

Private Bank Support for Exporters

• Offer trade finance services, such as export credit insurance, working capital loans, and letters of credit.
• Support exporters in managing financial risk and accessing capital for international operations.

Understanding Financing Sources for Exporters

• Provides access to tailored financial solutions.
• Enables exporters to optimize cash flow and manage financial risks effectively.

Price Skimming Assumption

• Consumers are willing to pay a higher price initially to gain early access to a new product or service.

Price Skimming Effectiveness

• It is most effective when a new product or service is highly differentiated with a strong brand and limited competition.

Follow-the-Leader Pricing

• A pricing strategy where a company sets prices based on those of its competitors, often the leading company in the market.

Variable vs. Standard Pricing

• Variable pricing offers different prices for the same product or service based on factors like time of day, customer demographics, or purchase volume.
• Standard pricing uses a fixed price for all customers.

Price Lining Advantage

• Simplifies the pricing process for businesses and customers.
• Creates price tiers for different product offerings, catering to diverse customer needs.

Two-Part Pricing Essential Aspect

• Identifying the appropriate fixed-price and variable-price components to maximize profitability.
• The fixed price covers fixed costs, while the variable price covers variable costs and generates profit.

Optional Product and Service Pricing

• Involves offering additional products or services at a premium price to customers who want enhanced features.
• Examples include extended warranties, upgrades, or premium support packages.

Small Business Commodity Market Strategy

• A cost leadership strategy is best, focusing on offering competitive prices and ensuring efficient cost management.

Personal Time Management for Small Business Owners

• It's crucial for maintaining business efficiency, managing workload, and balancing personal life with entrepreneurship.

Time Pressure Impact on Small Business Owners

• Can lead to stress, burnout, and decreased productivity.
• Can impact decision-making and hinder growth.

Time Management Priorities

• Urgent and important tasks should be prioritized first.
• These tasks demand immediate attention and contribute significantly to business goals.

Delegation Hesitation for Small Business Owners

• Fear of losing control,
• Concerns about competence of employees,
• Difficulty in relinquishing responsibility,
• Lack of trust in employees.

Mentors and Advisors for Entrepreneurs

• Provide guidance, support, and networking opportunities.
• Offer valuable insights, expertise, and industry connections.

Last Scheduled Activities

• Activities that are not urgent or important should b scheduled last.
• These activities can be delegated, postponed or eliminated.

Consequence of Being 'Too Busy'

• Can lead to missed opportunities, poor decision-making, and declining business performance.

Interruptions Impact

• Interruptions can disrupt workflow, reduce focus, and decrease overall productivity.
• Effective time management strategies can help minimize interruptions by setting boundaries, prioritizing tasks, and creating a dedicated workspace.

Break-Even Analysis Focus

• To determine the point at which revenue equals expenses, signifying that the business neither makes a profit nor incurs a loss.

Low Initial Price Strategy

• Penetration pricing sets a low initial price to rapidly gain market share and establish a foothold in the market.

Credit Offering Consideration

• The creditworthiness of customers is a significant factor, assessing their ability and willingness to repay debts.

Variable Pricing Meaning

• Setting different prices for the same product or service based on factors like purchase time, customer group, or purchasing volume.

Price Lining Benefit

• Streamlines pricing for businesses and simplifies product choices for customers.
• Creates price tiers for different product offerings, catering to diverse customer needs.

Credit Evaluation Essential Factor

• The applicant's credit history and credit score are essential indicators of their financial reliability and ability to manage debt.

Awareness Advertising Objective

• To increase consumer awareness and knowledge about a product or service, building recognition and interest.

Credit Sale Benefits for Business

• Increase sales by offering flexible payment options to customers.
• Can help attract customers who may not be able to afford the full purchase price upfront.

Global Business Challenge

• Navigating diverse cultures, languages, and legal systems.
• Adapting business practices to international standards.

Gradual Price Increase Strategy

• Price skimming involves gradually raising prices to attract customers who are willing to pay a premium for a new or exclusive product.

Promotional Planning Purpose for Small Businesses

• To create and execute effective marketing campaigns that attract customers and boost sales.

International Strategic Alliances

• A collaborative relationship between two or more companies, based in different countries.
• Aim to achieve mutual benefits and leverage each other's resources and expertise.

Pricing Strategy Consideration

• The target market and customer segmentation are crucial factors, considering the needs, desires, and buying behavior of the intended audience.

Advertising Frequency

• Refers to the number of times an advertisement is shown to a particular individual or group within a specified period.
• Optimizing frequency is critical to ensuring impactful exposure without creating advertising fatigue.