Corporate Structures and Market Segmentation

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Questions and Answers

What is one major benefit of implementing CSR activities for companies?

It builds customer loyalty.

What is a limitation faced by private limited companies regarding shareholders?

There is usually a restriction on the maximum number of shareholders.

What is one advantage of a private limited company in terms of financial risk?

Owners enjoy limited liability, protecting their personal assets.

What is a primary disadvantage of setting up a private limited company?

It can be more expensive due to legal and administrative fees. Signup and view all the answers

How does a public limited company benefit in terms of capital access?

It can raise money by selling shares to the public. Signup and view all the answers

What is one benefit of market segmentation related to customer satisfaction?

It allows businesses to create tailored marketing strategies that meet the specific needs of each group. Signup and view all the answers

What is one major drawback of using secondary data in fast-changing markets?

It may be old or outdated, making it less reliable for current decision-making. Signup and view all the answers

What is a limitation often associated with market segmentation?

Increased costs due to the need for additional resources for research and targeted campaigns. Signup and view all the answers

How does secondary research provide a time-saving advantage?

It can be done quickly because the information is already available. Signup and view all the answers

How does market segmentation contribute to customer loyalty?

It makes customers feel more understood and catered to, which can increase their loyalty to the brand. Signup and view all the answers

What is a common limitation of the information obtained through secondary research?

It often provides broad, generalized information that may not address specific needs. Signup and view all the answers

In what way can market segmentation assist in product development?

It helps businesses understand unique preferences of different customer groups, leading to new or improved products. Signup and view all the answers

What is a significant credibility concern when using online sources for research?

Not all online sources are reliable or trustworthy, which can lead to inaccurate or biased information. Signup and view all the answers

What impact does segmentation have on marketing strategies?

It allows for more targeted and effective marketing strategies tailored to different segments. Signup and view all the answers

What challenge can arise from the vast amount of information available online?

The sheer volume can be overwhelming and make it difficult to filter out irrelevant data. Signup and view all the answers

Study Notes

Implementing CSR activities can be expensive.
Companies that engage in CSR can build customer loyalty.
Reporting CSR activities can be time-consuming.

Private Limited Company

Owners have limited liability, this means personal assets are protected from business debts.
There are restrictions on the maximum number of shareholders.
Fewer shareholders allows for more centralized control and decision-making.
Setting up and running a private limited company is more expensive than other business structures.

Public Limited Company

Companies can raise money by selling shares to the public.
Public limited companies have more access to capital compared to private limited companies.

Market Segmentation

Dividing a broad market into smaller groups allows businesses to create more tailored marketing strategies.
Segmentation can lead to increased customer satisfaction.
Segmentation requires additional resources, potentially increasing costs.
Segmentation can increase customer loyalty by making customers feel understood.
Segmentation can help businesses develop new products or improve existing ones.
Secondary data used in market research can often be outdated.
Secondary research can be done quickly, saving time compared to gathering new data.
Secondary research often provides broad, generalized information.

Online Sources for Secondary Research

The internet provides access to a vast amount of information.
Not all online sources are reliable or trustworthy.
Online sources are easily accessible from anywhere.
There can be an overload of information online.

Media Articles for Secondary Research

Media articles are easily accessible and can provide current information.
Media outlets may have biases that can influence the objectivity of the articles.
Media articles often provide surface-level information rather than detailed analysis.

P from Marketing

Process: This refers to the systems and procedures involved in delivering products or services.
Physical Evidence: This refers to the tangible aspects that support the service experience, such as packaging, branding, and the physical environment in which services are delivered.
People: This refers to everyone involved in the service delivery, including employees, management, and customers, emphasizing the importance of staff training and customer interactions.

Time Rate (Wages) System

Employees have predictable earnings based on hours worked.
This system lacks an incentive for employees to increase productivity.
Workers have financial stability by knowing how much they will earn each week.
Employers may face higher labor costs, especially if workers work overtime or are unproductive.

Salary Payment System

Employees receive a fixed salary, providing a predictable and consistent income.
This system lacks flexibility, as employees are paid a fixed amount regardless of workload.
A fixed salary can increase motivation and retention.

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Description

Explore the concepts of corporate social responsibility, private and public limited companies, and the significance of market segmentation. This quiz examines the impact of these business practices on company operations and customer relationships. Test your knowledge and understanding of these essential business principles.