Podcast
Questions and Answers
An increase in price generally leads to an increase in consumer demand.
An increase in price generally leads to an increase in consumer demand.
False
Consumer Relationship Marketing incurs training costs as one of its expenses.
Consumer Relationship Marketing incurs training costs as one of its expenses.
True
The target market should be defined only by product characteristics for an effective marketing mix.
The target market should be defined only by product characteristics for an effective marketing mix.
False
Productivity is concerned with maximizing waste during the production of goods and services.
Productivity is concerned with maximizing waste during the production of goods and services.
Signup and view all the answers
Labour productivity measures output produced per employee within a business.
Labour productivity measures output produced per employee within a business.
Signup and view all the answers
Just In Time (JIT) is a strategy that focuses on producing goods in advance for inventory storage.
Just In Time (JIT) is a strategy that focuses on producing goods in advance for inventory storage.
Signup and view all the answers
Inventory holding costs include fees for storing inventory in warehouses.
Inventory holding costs include fees for storing inventory in warehouses.
Signup and view all the answers
Stockout costs do not affect customer satisfaction or sales.
Stockout costs do not affect customer satisfaction or sales.
Signup and view all the answers
Quality is only important for brand reputation and has no impact on customer satisfaction.
Quality is only important for brand reputation and has no impact on customer satisfaction.
Signup and view all the answers
Quality Control and Quality Assurance are synonymous terms in business management.
Quality Control and Quality Assurance are synonymous terms in business management.
Signup and view all the answers
Total Quality Management is a management idea focused solely on financial outcomes.
Total Quality Management is a management idea focused solely on financial outcomes.
Signup and view all the answers
Training periods for employees in Total Quality Management can have a positive short-term impact on costs.
Training periods for employees in Total Quality Management can have a positive short-term impact on costs.
Signup and view all the answers
External sources of finance include funds obtained exclusively from within the company.
External sources of finance include funds obtained exclusively from within the company.
Signup and view all the answers
Internal sources of finance can limit a company's ability to pursue alternative investment opportunities.
Internal sources of finance can limit a company's ability to pursue alternative investment opportunities.
Signup and view all the answers
High interest costs are an advantage of using external sources of finance.
High interest costs are an advantage of using external sources of finance.
Signup and view all the answers
Working Capital is money required for day-to-day operations of a business.
Working Capital is money required for day-to-day operations of a business.
Signup and view all the answers
Study Notes
Factors Influencing Consumer Demand
- Product price impacts demand inversely; higher prices typically reduce demand.
- Consumer income affects purchasing; increased income leads to higher demand.
- Price of related goods influences demand; substitutes and complements play a role.
- Consumer tastes and preferences shaped by advertising and endorsements affect purchasing decisions.
Costs of Consumer Relationship Marketing
- Integration costs encompass expenses related to blending CRM systems with existing processes.
- Implementation costs involve the resources necessary to establish CRM initiatives.
- Training costs aim at equipping staff with the skills to effectively utilize CRM tools.
- Maintenance costs pertain to ongoing support and updates for CRM systems.
Benefits of Consumer Relationship Marketing
- Enhances customer relationships fostering loyalty and retention.
- Creates more efficient marketing campaigns through targeted approaches.
- Improves customer service, leading to higher satisfaction and repeat business.
Coordinated Marketing Mix Recommendation
- Effective coordination of the 4 Ps: Price, Place, Promotion, Product is vital.
- Understanding the target market's wants and needs is critical for business success.
- Establishing a unique selling proposition (USP) helps create a competitive advantage.
Understanding Productivity
- Refers to the efficiency and effectiveness of an organization in producing goods and services with minimal waste.
- Productivity is crucial for achieving operational success and can directly impact profitability.
Importance of Productivity
- Maximizes efficient use of available resources, boosting overall profitability.
- High productivity often correlates with competitive advantage and market responsiveness.
Defining Labour Productivity
- Measures the amount of output generated per employee within a business.
- Higher labour productivity indicates more efficient workforce performance.
Ways to Improve Labour Productivity
- Analyze resource allocation to ensure optimal use.
- Invest in tools, equipment, and facilities to enhance operational efficiency.
- Provide employee training and development initiatives to enhance skills.
- Adopt new technologies and innovations to streamline processes.
Inventory Holding Explained
- Refers to the costs associated with storing goods or inventory in a warehouse.
- Holding inventory involves expenses like storage fees, insurance, and depreciation.
Consequences of Not Holding Inventory
- Stockout costs can lead to lost sales opportunities.
- Damage to company reputation due to inability to fulfill customer demand.
- Decreased customer satisfaction from unavailability of products.
Just In Time (JIT) Defined
- A production strategy that aligns manufacturing with demand, producing goods only as needed.
- Focuses on reducing inventory and efficiently managing production schedules.
Costs and Benefits of Just In Time (JIT)
- Benefits include lower inventory carrying costs, reduced waste, and improved productivity.
- Costs include the risks associated with stockouts and the necessity for robust supplier relationships.
Importance of Quality
- Critical for ensuring customer satisfaction, maintaining brand reputation, and promoting long-term business success.
- High-quality standards often lead to competitive advantages in the marketplace.
Quality Control vs. Quality Assurance
- Quality Control detects and addresses defects in products or services post-production.
- Quality Assurance prioritizes the prevention of defects through systematic processes.
Total Quality Management (TQM)
- A management philosophy aimed at enhancing organizational operations via comprehensive process improvement.
- Involves all employees in the pursuit of quality enhancements.
Costs and Benefits of Total Quality Management (TQM)
- Benefits can be significant, including reduced costs in service areas and improved customer satisfaction.
- Training periods can result in short-term costs and disruptions during the implementation phase.
Business Situations Requiring Finance
- Capital investments are needed for purchasing machinery, equipment, or property.
- Working capital funds day-to-day operational needs and expenses.
External Sources of Finance
- Funds obtained from outside the company, including equity financing and loans.
- Advantages include shared risk, accelerated growth opportunities, and financing for new equipment.
- Disadvantages involve higher interest expenses and loss of control over company operations.
Internal Sources of Finance
- Funds generated through internal operations, such as selling excess assets and utilizing retained earnings.
- Advantages include cost savings, operational control, and flexibility in managing capital structure.
- Disadvantages can involve financial resource limitations and exposure to increased risks.
Factors Influencing Choice of Business Finance
- Factors impacting finance choice include purpose of finance, cost implications, risk tolerance, and financial health of the business.
Studying That Suits You
Use AI to generate personalized quizzes and flashcards to suit your learning preferences.
Description
Test your knowledge of marketing principles, including factors that influence consumer demand and the costs and benefits of Consumer Relationship Marketing.
