Business Marketing: Strategies, Systems, and Research
Unit 17: Introduction to Business Address
17.1 The Concept of Marketing
Commercial activity is intrinsically linked with the existence of human beings. In terms of trade, either through barter or sale, it is necessary for our survival. Trade is an activity almost as old as man, but the meaning of carrying out and the competition for this activity, known as marketing, has evolved over time. In today’s competitive environment, where supply exceeds demand in almost all markets, knowledge on how to perform
Read MoreMarket Research and Business Strategy Development
Market Research: Understanding Supply and Demand
Market research involves collecting and analyzing background information about supply and demand to determine the feasibility of a project. The market study should determine, according to the information collected, whether it is feasible to continue the study of the project or abandon the idea.
Study Objectives
- Market Feasibility: Define the position that the project can achieve.
- Profitability of the project relative to the market.
Markets Involved in
Read MoreInternational Trade Operations
Operation of Foreign Trade
What Channels Exist in the International Market?
Distribution channels provide critical links between manufacturers and consumers. The optimal distribution systems are flexible and are able to adjust to market conditions. In general, companies use more than one distribution system. These include:
Do We Need an Intermediary?
Exporting firms require the services of intermediaries as concerned to gain knowledge of the target market, to distribute their products when they are
Read MoreBusiness Strategy: Competitive Advantages and Organizational Culture
Theme 3: The Environment of the Organization
Entry Barriers
Entry barriers are those aspects that make it impossible or difficult for new competitors to participate in the business, thereby generating a field of activity. Profitability depends largely on the barriers to entry.
Major Entry Barriers:
- a) Economies of scale: These relate to reductions in unit costs of producing a product. Because increasing the volume of activity reduces total average costs, economies of scale allow firms in the sector
Marketing Mix: Strategies for Business Success
Tools of the Marketing Mix
1. The Marketing Mix integrates and combines the decisions the company has taken on the attributes of their product, the prices set for each of them, the chosen distribution channel to bring them closer to the end customer and, finally, communication or promotion who will carry out to be known and appreciated by the market. Having chosen a market or segment that is addressed, should realize their plan of action to stimulate demand for its products, you must define your
Read MoreProfit vs. Wealth Maximization in Business Finance
Profit Maximization vs. Wealth Maximization
| Points | Profit Maximization | Wealth Maximization |
|---|---|---|
| Aim | To maximize the profit of a business firm | To maximize the wealth of shareholders |
| Effect | It leads to social evils like cutthroat competition, exploitation of workers and customers, etc. | It increases the wealth (value) of shareholders as share prices are increased |
| Conceptual Clarity | Calculation of profit is not clear, i.e., whether short-term or long-term, even profit before tax or after tax | Concept calculation of wealth |