Chapter 6

47問 • 1年前

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It refers to a company's plan for making a profit.

Business model

It identifies the products or services to ye business plans to sell, it's identified target market, and any anticipated expenses.

Business model

It is the concept that money you have now is worth more than the identical sum in the future due to its potential earning capacity.

Time value of money

This core principle of finance holds that provided money can earn interest, any amount of money is worth more the sooner it is received.

Time value of money

It refers to the process of creating sales of products and services with the goal of creating income.

Revenue generation

It is an approach in products and services pricing which defines various prices, discounts, offers consistent with the organization goals and strategy.

Pricing structure

It can affect how company grows and is perceived by the customers

Price structure

Types of Pricing Structure

Market penetration, Price skimming, Economy pricing, Psychology pricing, Premium pricing

Pricing the products lowest compared to other competitors to gain a penetration and anchoring in the market.

Market penetration

This attracts a large section of the market specifically the cost-conscious segment and helps the company to make large profits.

Market penetration

Introducing a product or service with the highest possible price and slowly reducing the prices over time.

Price skimming

This targets almost every segment over a period of time.

Pricing skimming

These products are priced at an affordable rate compared to other competitor products.

Economy pricing

The target for these products is the lower economic segment. The quality may or may not be compromised in case of these products.

Economy pricing

The quality may or may not be compromised in case of these products.

Economy pricing

The feel of the price is lower with a lower starting number is the technique used.

Psychology pricing

To offer seasonal discounts on limited products for a limited period of time.

Discount pricing

The price tag for the product is highest amongst all the competitors.

Premium pricing

The elite pricing is owing to the superior and unique quality of the product.

Premium pricing

It generates assured profits and generally the first one to create a demand in the market since either they have unique products or are first in the market.

Premium pricing

A measure of how consumers react to the prices of products and services

Price elasticity

Two types of Price Elasticity

Price elasticity of demand, Price elasticity of supply

It is a measure in economics to show how demand responds to a change in the price of a product or service.

Price elasticity of demand

It is a measure that shows how the quantity of supply is affected by a change in the price of a good or service.

Price elasticity of supply

It represents a chain of businesses or intermediaries through which the final buyer purchases a good or service.

Distribution channel

It include wholesalers, retailers, distributors, and the Internet.

Distribution channels

The manufacturer sells directly to the consumer.

Direct distribution channel

Objectives of Distribution Channels

To increase the availability of the product to the potential customers, To fulfill customer's requirements by providing quality rich services, To obtain promotional support from channel members, To procure timely and detailed market information, To increase cost-effectiveness

Types of Channels of Distribution

Direct channel, Indirect channel, Hybrid channel

When the producer sells goods directly to their customer.

Direct channel

When the producer produces goods on a large scale, it is difficult to make direct selling of the goods to the customers.

Indirect channel

In this way, middlemen come into the picture to ensure the availability of the goods to its customers. It may include wholesalers and retailers.

Indirect channel

Producer ➡️ Wholesaler/Retailer ➡️ Consumer

One level channel

Producer ➡️ Wholesaler ➡️ Retailer ➡️ Consumer

Two level channel

Producer ➡️ Mercantile Agent ➡️ Wholesaler ➡️ Retailer ➡️ Consumer

Three level channel

When the manufacturer uses more than one channel to reach the final consumer.

Hybrid channel

This channel attracts more consumers and facilitates more sales

Hybrid channel

It is another business entity with which you form an agreement to share resources with the mission of growth and mutual success.

Strategic partner

There are different types of strategic partnerships

Horizontal partnership, Vertical partnership, Equity partnership, Joint venture, Merger, Acquisition

Businesses within the same field join alliances to improve their market position. Example: Facebook and Instagram

Horizontal partnership

Businesses team up with companies within the same supply chain (suppliers, distributors and retailers), often to stabilize supply chains and increase sales.

Vertical partnership

The close bond between an auto manufacturer and its suppliers is an example.

Vertical partnership

A complementary vertical alliance is formed when the supplier agrees to work exclusively for the other.

Vertical partnership

An investor acquires a percentage interest in a business, providing needed capital and sharing in profits and losses.

Equity partnership

Two or more businesses form an entirely new legal entity in which the profits and risks are shared, and the original companies continue to exist on their own.

Joint venture

Two companies agree to go forward as a single new company and the original companies no longer exist. Example: Exxon and Mobil, now Exxon Mobil Corp.

Merger

One company takes over another company and establishes itself as the new owner. Example: Aconex, construction management software, aquired by Oracle, now Oracle Aconex

Acquisition

RIZAL QUIZ 1

Alyssa Laciste · 14問 · 1年前

RIZAL QUIZ 1