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?
- Consistent profits
- Debt and financial loss (correct)
- Expansion opportunities
- Increased market share
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?
- Have high market share
- Provide large positive cash flow
- Operates in slow-growing markets
- Require high advertising costs (correct)
Which promotion strategy aids in improving customer loyalty?
Which promotion strategy aids in improving customer loyalty?
- Aggressive pricing tactics
- Personalization of communication (correct)
- Broad market targeting
- High advertising spend
What does opportunity cost refer to in business decisions?
What does opportunity cost refer to in business decisions?
Which strategy is most appropriate for 'problem children' in the Boston Matrix?
Which strategy is most appropriate for 'problem children' in the Boston Matrix?
How do necessity products typically behave in terms of elasticity?
How do necessity products typically behave in terms of elasticity?
What aspect of distribution has changed significantly due to social trends?
What aspect of distribution has changed significantly due to social trends?
Which business objective focuses on breaking even during challenging times?
Which business objective focuses on breaking even during challenging times?
What is the primary purpose of a mission statement?
What is the primary purpose of a mission statement?
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?
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?
What is a potential limitation of the product life cycle concept?
What is a potential limitation of the product life cycle concept?
Which of the following is an example of a sales promotion?
Which of the following is an example of a sales promotion?
Which is a characteristic of predatory pricing?
Which is a characteristic of predatory pricing?
How can businesses extend the life of a product?
How can businesses extend the life of a product?
What does product portfolio analysis aim to achieve?
What does product portfolio analysis aim to achieve?
What does the opportunity cost represent in business decision-making?
What does the opportunity cost represent in business decision-making?
Which of the following best describes Risk in a business context?
Which of the following best describes Risk in a business context?
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?
What type of goods have negative Income Elasticity of Demand (YED)?
What type of goods have negative Income Elasticity of Demand (YED)?
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?
Which factor does NOT influence unit costs?
Which factor does NOT influence unit costs?
What does high capacity utilization do to fixed costs per unit?
What does high capacity utilization do to fixed costs per unit?
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?
Flashcards
Mission Statement
Mission Statement
A business's core purpose and focus, remaining constant over time.
Marketing Objectives
Marketing Objectives
Goals that provide direction, motivate stakeholders, and measure business performance.
Promotion
Promotion
Communicating with consumers to sell products, with goals like introducing new products and enhancing the business image.
Pricing Strategies
Pricing Strategies
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Product Portfolio Analysis
Product Portfolio Analysis
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Product Life Cycle
Product Life Cycle
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Extension Strategies
Extension Strategies
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Pricing Strategy
Pricing Strategy
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Unit Cost
Unit Cost
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Capacity Utilization
Capacity Utilization
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Price Elasticity of Demand (PED)
Price Elasticity of Demand (PED)
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Inelastic Product (PED)
Inelastic Product (PED)
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Elastic Product (PED)
Elastic Product (PED)
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Income Elasticity of Demand (YED)
Income Elasticity of Demand (YED)
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Opportunity Cost
Opportunity Cost
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Risk (in business)
Risk (in business)
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Cash Cows (Boston Matrix)
Cash Cows (Boston Matrix)
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Stars (Boston Matrix)
Stars (Boston Matrix)
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Dogs (Boston Matrix)
Dogs (Boston Matrix)
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Problem Children (Boston Matrix)
Problem Children (Boston Matrix)
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Retailing (Distribution)
Retailing (Distribution)
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E-tailing (Distribution)
E-tailing (Distribution)
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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.
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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.