10 Questions
What is the primary factor that determines the revenue figure in an Enterprise Business Plan?
Product pricing
For merchandising businesses, how is the price of the products typically determined?
Purchase cost plus markup and margins estimated for buying and selling transactions
Which of the following concepts is helpful in computing prices for both product and service units?
Break-even analysis and the use of fixed, variable, and unit costs
What is the term used to describe the distribution approach where products or services are sold directly to the end-users?
Direct distribution
Which of the following is a combination of direct and indirect distribution approaches?
Hybrid distribution
Which of the following is NOT mentioned as a tool for communicating with the buyer population in the promotion strategies?
Social media marketing
What is the importance of the forecasted sales volume in the Projected Sales Volume and Value section?
It is important for the purchase orders of the operations teams
How is the forecasted sales value calculated in the Projected Sales Volume and Value section?
By multiplying the forecasted volume by the price per unit
What is the term used for pricing strategies where the cost serves as a basis for pricing products?
Cost-oriented pricing
Which of the following is an example of cost-oriented pricing mentioned in the text?
Standard markup pricing
Study Notes
Business Enterprise Stimulation
- Business: an organization or economic system where goods and services are exchanged for one another or for money.
Types of Business
- Merchandising: "buy and sell" business, also known as retailing (sale of goods in small quantities) or wholesaling (sale of goods in large volumes).
- Service: offers merchandise with no physical form, such as skills, field of expertise, and consultancy.
Method Analysis
- Used by companies to develop new products or services and improve existing methods.
- Steps in method analysis:
- Identify the operation to be analyzed.
- Gather relevant information, including tools, materials, and procedures.
- Talk with employees who use the operation or have used similar operations.
- Chart the operation, and evaluate each step.
- Revise the existing or new operation as needed.
Business Plan
- A management tool that focuses on the nature of the business in a logical and organized manner.
- Guides an entrepreneur on what, how, and when to implement enterprise goals and objectives.
Research Data
- Can be drawn from both secondary and primary sources.
- Secondary sources: public documents, books, journals, magazines, the internet, and internal databases.
- Primary sources: surveys, experiments, and observational research.
Target Market
- A group of potential customers to whom a company wants to sell its products and services.
- Characteristics: geography, buying power, demographics, and incomes.
- Can be categorized by age, location, income, and lifestyle.
- Market segmentation characteristics: demographics, lifestyle/psychographics, behavior, occasion, and usage.
Pricing Strategies
- Price dictates the revenue figure in the Enterprise Business Plan.
- Factors to consider: breakeven point, fixed, variable, and unit costs.
- Pricing approaches:
- Cost-oriented pricing (cost-plus pricing, standard markup pricing)
- Other approaches to be discussed later
Distribution Strategies
- Direct distribution: company sells products directly to customers.
- Indirect distribution: through agents or intermediaries.
- Hybrid distribution: combination of direct and indirect approaches.
Promotion Strategies
- Tools designed to communicate with the buyer population.
- Platforms: advertising, public relations, personal selling, sales promotions, and direct marketing.
Explore the definitions of service, merchandising, retailing, and wholesaling in the context of a business enterprise. Learn about the method analysis used by companies for new product development and improving efficiency.
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