Intro to Business
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This 3 page Reader was uploaded by Olivia Tenery on Monday April 14, 2014. The Reader belongs to a course at University of Oregon taught by a professor in Fall. Since its upload, it has received 197 views.
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Date Created: 04/14/14
BA 101 41414 1138 PM Marketing The way a company informs customers about its products and services Tries to understand what the customers want to better serve them Demand Analysis Leftover product is better than not having enough product Consumer behavior The processes a consumer uses to make purchase decisions as well as to use and dispose of goods and services Includes factors that influence purchase decisions and the product use Low tech Price importance 41 Age importance 29 Reliability importance 21 39gtSquotquot High tech Position importance 9 1 Positioning importance 33 2 Age importance 29 3 Price importance 25 4 Reliability importance13 Cost versus Price Price 0 Price is that which is given up in an exchange to acquire a good or service 0 Lower is more attractive than higher Cost 0 The expense of obtaining materials for making the products sold Profit Maximization Setting prices so that the total revenue us as large as possible relative to total costs The main idea of a business is to make profit They need to watch the costs relating to the product so that they maximize their profit Who are the customers Segmenting markets Target markets 0 What are the market segments in foundation Low tech and high tech 0 In terms of units old what is the largest market segment in founda on Low tech 0 How fast is demand growing in the low tech segment Look on foundation What do they want from you Product what are the product characteristics Price How much will they pay Place Where do they buy my product Promotion How do they learn about my product 0 Service What level of service will I experience What happens if high tech customers decide to buy your low tech product This is good and bad 0 Good you sell more of your product 0 Bad this could mess up your sales by potentially running out of product The impact of SERVICE Products could be identical but the service associated with buying this can really affect which company sells more The service element can be particularly influential for commodity products those products that are similar to each other without meaningful differentiation EX cars Toyota 0 High end Lexus 0 Middle Toyota 0 Low end Scion Why do they do this 0 They are appealing to different market segments 0 Trying to increase sales by providing products that are attractive to a variety of market segments What can increase material costs The more ideal you make your product the more expensive it is to make Age Low tech How do you manage age What is the ideal age Your product gets older every month 0 July 1 it is 0 0 Dec 31 it is 12 year old 0 By the second December it39s a year and a half old 0 reposition changes size and performance moving product on the perceptual map Promotional Mix You will invest in a promotion budget and create awareness It relates to your advertising efforts The awareness you create is specific to a single product Commercials are one example of this Trade offs Higher price 0 Fewer people buy make more money on each Lower price 0 More people buy make less money on each New product 0 Expense of development new customers Old products 0 Loss of appeal no risk
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