Podcast
Questions and Answers
What is a primary risk entrepreneurs often face when starting a business?
What is a primary risk entrepreneurs often face when starting a business?
Which of the following is NOT a characteristic of cash cows in the Boston Matrix?
Which of the following is NOT a characteristic of cash cows in the Boston Matrix?
Which promotion strategy aids in improving customer loyalty?
Which promotion strategy aids in improving customer loyalty?
What does opportunity cost refer to in business decisions?
What does opportunity cost refer to in business decisions?
Signup and view all the answers
Which strategy is most appropriate for 'problem children' in the Boston Matrix?
Which strategy is most appropriate for 'problem children' in the Boston Matrix?
Signup and view all the answers
How do necessity products typically behave in terms of elasticity?
How do necessity products typically behave in terms of elasticity?
Signup and view all the answers
What aspect of distribution has changed significantly due to social trends?
What aspect of distribution has changed significantly due to social trends?
Signup and view all the answers
Which business objective focuses on breaking even during challenging times?
Which business objective focuses on breaking even during challenging times?
Signup and view all the answers
What is the primary purpose of a mission statement?
What is the primary purpose of a mission statement?
Signup and view all the answers
Which of the following is NOT a factor influencing the choice of a promotion strategy?
Which of the following is NOT a factor influencing the choice of a promotion strategy?
Signup and view all the answers
Which pricing strategy involves setting a high initial price to recover research and development costs?
Which pricing strategy involves setting a high initial price to recover research and development costs?
Signup and view all the answers
What is a potential limitation of the product life cycle concept?
What is a potential limitation of the product life cycle concept?
Signup and view all the answers
Which of the following is an example of a sales promotion?
Which of the following is an example of a sales promotion?
Signup and view all the answers
Which is a characteristic of predatory pricing?
Which is a characteristic of predatory pricing?
Signup and view all the answers
How can businesses extend the life of a product?
How can businesses extend the life of a product?
Signup and view all the answers
What does product portfolio analysis aim to achieve?
What does product portfolio analysis aim to achieve?
Signup and view all the answers
What does the opportunity cost represent in business decision-making?
What does the opportunity cost represent in business decision-making?
Signup and view all the answers
Which of the following best describes Risk in a business context?
Which of the following best describes Risk in a business context?
Signup and view all the answers
Which pricing strategy would be most beneficial for inelastic products when prices increase?
Which pricing strategy would be most beneficial for inelastic products when prices increase?
Signup and view all the answers
What type of goods have negative Income Elasticity of Demand (YED)?
What type of goods have negative Income Elasticity of Demand (YED)?
Signup and view all the answers
When should a business emphasize on normal luxury products according to the Income Elasticity of Demand?
When should a business emphasize on normal luxury products according to the Income Elasticity of Demand?
Signup and view all the answers
Which factor does NOT influence unit costs?
Which factor does NOT influence unit costs?
Signup and view all the answers
What does high capacity utilization do to fixed costs per unit?
What does high capacity utilization do to fixed costs per unit?
Signup and view all the answers
What is a key implication of low capacity utilization in a business setting?
What is a key implication of low capacity utilization in a business setting?
Signup and view all the answers
Study Notes
Marketing Strategies
- Marketing aims to identify, anticipate, and satisfy consumer needs profitably.
- Mass markets target broad market segments with large-scale production and low prices, leading to lower profit margins. Examples include Primark.
- Niche markets, like Louis Vuitton, focus on specialized products for smaller consumer groups, leading to higher production costs, higher prices but higher profit margins.
- Market size and share are measured by sales volume or value. Market share is the percentage of total sales.
- Branding differentiates products, adding value, increasing pricing power, and influencing a business's market position through perceived quality and legal protection.
Market Research
- Market research involves gathering and analyzing data to reduce risks, understand customers, and identify opportunities.
- Research can be qualitative (non-numerical insights) or quantitative (measurable data).
- Primary research gathers new, tailored data, but it's costly. Secondary research uses existing data, which is cheaper but may be outdated.
- Methods like questionnaires, focus groups, and product trials gather insights. Focus groups provide in-depth opinions, while product trials help refine products before launch.
Operations Management
- Operations management focuses on designing, managing, and improving the processes that transform inputs into outputs (goods and services).
- Key targets include maximizing efficiency, minimizing unit costs, and maximizing quality.
- Unit costs are calculated as total costs divided by the number of units produced and are influenced by production volume, supply costs, and labor productivity.
- Capacity utilization measures current output as a percentage of maximum potential output. High capacity utilization reduces fixed costs per unit; low utilization increases them.
Price Elasticity of Demand (PED)
- PED measures how demand changes in response to price changes.
- Inelastic products (PED < 1) have less responsive demand, due to high differentiation, few substitutes, and strong brand loyalty
- Elastic products (PED > 1) have more responsive demand.
Income Elasticity of Demand (YED)
- YED measures how demand changes with income.
- Normal necessary products have a low but positive YED (e.g., milk). Demand rises slightly as income increases.
- Inferior goods have a negative YED, where demand decreases as income rises.
- YED is important for firms to predict sales during economic changes and to diversify product ranges to mitigate risks.
Opportunity Cost & Business Objectives
- Risk refers to the chance of loss or damage (business failure, investment loss, debt).
- The opportunity cost is the next best alternative forgone when making a choice.
- Business objectives include survival, profit maximization, market share, cost efficiency, employee welfare, and customer satisfaction.
Distribution
- Distribution involves making products or services available to customers when and where they need them.
- Methods include retailing (physical shops), e-tailing (online), wholesalers (purchase from producers).
- Factors influencing distribution include product type, speed requirements, distance.
- Social trends are impacting how goods transition into online services.
Survival & Profit Maximisation
- Survival involves breaking even during tough times, by reducing costs or prices.
- Profit maximisation focuses on increasing sales and reducing costs.
Product Life Cycle & Portfolio Analysis
- Product portfolio analysis examines each product or brand to improve market performance.
- The product life cycle helps businesses plan their marketing mix and allocate resources effectively, although limitations exist.
- Extension strategies can prolong a product's lifecycle, such as introducing new versions, offering limited editions, or updating packaging.
- The Boston Matrix categories products based on market share and market growth.
Studying That Suits You
Use AI to generate personalized quizzes and flashcards to suit your learning preferences.
Related Documents
Description
Explore the essential concepts of marketing strategies and market research. This quiz covers mass and niche markets, branding, market size, and the importance of qualitative and quantitative research methods. Test your knowledge on how these elements influence consumer behavior and business success.
