...Nissan managers can set an expected profit margin because the customers has a very high demand of automobiles and they know the automobiles market very well. Second, target costing for a product includes direct manufacturing costs direct materials, direct manufacturing labor, and direct machining costs. (Cost Accounting. Page 519). Analyzing each cost element and eliminate the unnecessary value-added is one of the cost management goals in the target costing system. In order to have a competitive price, Nissan managers have to eliminate some value-added costs which are unnecessary and not so helpful for the automobile manufacturing and selling process. Target costing can shorten the product lives and save Nissan company time to do marketing and financial management. A good example in the Nissan case it that they eliminated the "five-door variant" because it is unnecessary. Last, target costing system helps Nissan build a cross-functional team. The design department, manufacturing department, sales department and management department work together to analyze the cost drivers and eliminate the unnecessary steps. This is very helpful to build a healthy organizational culture through team work and cross department projects. However, there are some weaknesses of the target costing system. Fist, every value-added cost has a reason to exist. It could be adding some function to the automobile, or it could be making the automobile look...
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...1. Define marketing and discuss how it is more than just “telling and selling.” Marketing is managing profitable customer relationships. The twofold goal of marketing is to attract new customers by promising superior value and to keep and grow current customers by delivering satisfaction. Hence, marketing is defined as the process by which companies create value for customers and build strong customer relationships in order to capture value from customers in return. Today, marketing must be understood not in the old sense of making a sale—“telling and selling”—but in the new sense of satisfying customer needs. If the marketer understands consumer needs; develop products and services that provide superior customer value; and prices, distributes, and promotes them effectively, this goal will be achieved easily. The aim of marketing is to make selling unnecessary. Selling and advertising are only part of a larger marketing mix 2. The marketing process (p5) 3. 5 core customer and marketplace concepts • Customer Needs, Wants and Demands needs: states of felt deprivation (physical, social, individual) wants: form of human needs shaped by culture and personality demands: wants backed by buying power • Market Offerings – combination of Products, Services and Experiences offered to a market to satisfy a need or a want. Marketing Myopia: The mistake of paying more attention to the specific products than to the benefits produced by them, e.g, a firm thinks that the customer...
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...FUNDAMENTALS OF MARKETING Marketing is managing profitable customer relationships. The twofold goal of marketing is to attract new customers by promising superior value and keep and grow current customers by delivering satisfaction. Marketing as the process by which companies create value for customers and build strong customer relationships in order to capture value from customers in return. Needs States of felt deprivation. Wants The form human needs take as they are shaped by culture and individual personality. Demands Human wants that are backed by buying power. Market offerings Some combination of products, services, information, or experiences offered to a market to satisfy a need or want. Marketing myopia The mistake of paying more attention to the specific products a company offers than to the benefits and experiences produced by these products. Exchange The act of obtaining a desired object from someone by offering something in return. Market The set of all actual and potential buyers of a product or service. Marketing management The art and science of choosing target markets and building profitable relationships with them. dividing the market into segments of customers (market segmentation) and selecting which segments it will go after (target marketing). Five alternative concepts under which organizations design and carry out their marketing strategies: Production concept The idea that consumers will favour products that are available...
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.... Principles of Marketing: 8/28/14 A. Marketing defined: is a process by which companies create value for customers and build strong customer relationships to capture value from customers in return. 1. To be able to measure profitable customer relationships 2. Aim of marketing is to make selling unnecessary. B. Customer Relationships: C. Chapter one Terms: 1. Needs-states of felt deprivation. 2. Wants-the form human needs takes as they are shaped by environment and character. 3. Demands-human wants that are backed by buying power. 4. Market offerings-some combination of products, services information or experiences offer to a market to satisfy a need or want. 5. Marketing myopia-mistake of paying more attention to the specific product as co. offers than to the benefits and experiences produced by t these products. 6. Exchange-the act of obtaining a desired object from someone by offering something in return. D. Chapter one Terms Cont.: 1. Marketing management-the art and science of choosing target markets and building profitable relationships with them. 2. Production concept-the idea that consumers will favor products that are available and highly affordable; therefore, the organization should focus on improving production and distribution efficiency. 3. Product concept- 4. Selling concept 5. Marketing concept 6. Societal marketing concept E. Chapter one terms Cont. 1. Customer relationship management 2. Customer-perceived...
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...For this task I have to select one organisation, either McDonalds describe the methods used to make marketing decisions based on the behaviour of the customers, competitors and the market environment. research can be used to decide if some restaurant needs to be closed if satisfactory profit is not Marketing Research: Marketing research is aimed to help organisations make effective decisions by providing by providing information that can inform the decision making process Different Types of Marketing Research: There are two types of marketing research, they are: Primary Research- Carried out to find new information required for a marketing research project, which has never previously been collected. Secondary Research- Makes use of work already carried out by someone else for some other marketing project or other purpose. Examples of primary research: * Observation- Useful when a topic first needs to be explored, for example how children play with a new toy. There is no communication between the researcher and the people being observed. * Experimentation- Researchers use it to try to identify the impact of a change in something such as price or packaging format while keeping everything else the same. * Surveys- Use questionnaires to collect data by face-to-face interviews, using the post, email, telephone or internet. Used to obtain data about attitudes, awareness, motivations and lifestyle. Examples of secondary research: * News reports- newspapers...
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...Marketing Assessment Outcome 1 & 2 Britvic Case Study Question 1 The three key characteristics of marketing concept are: * Customer Orientation – this means that the company is focused on the customers, they know what the customers want and expect and satisfy those wants and needs. By being customer focused Britvic make all their marketing decisions based on their customers’ wants and expectations and the customer is then fully satisfied. For example, Britvic focuses on their brand loyalty and therefore create new products and tastes with different contents to suit all their customers. This will increase brand loyalty and image, which is very important for any business. * Marketing Research – in marketing concept: knowing and understanding customer’s needs, wants and expectations is the most important thing. Marketing research can help and identify those on a regular basis to help improve customer satisfaction. This way Britvic knows what the customers want, who are they, what their expectations are, and what the best method of communication with them is. This helps Britvic know what products they need to improve, what new things they could come up with and when to launch. * Marketing Planning – this is a goal-oriented approach to marketing. The main goal of Britvic is to sell their products and satisfy their customers. This is the aim that Britvic has set for themselves. To get there they need definite policies to help them achieve that goal, this is to ensure...
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...Unit19 Customer relations in business Assignment: A1 Understanding marketing concepts used by businesses Introduction What is marketing concepts? Marketing concepts is when businesses use ideas and techniques to make their customers aware of their products or services and tempt them to buy. This relates to: * How buyers decide what they buy * What makes one products or service different from another * How different groups of customer can be targeted according to their needs. * The marketing mix – Considering the price, product, place and promotional activity (four P’s) that will attract customers. The following marketing concepts are: The AIDA (s) model of buying decision making Before you attempt to buy something, you go through a process and the process is: Stage 1 – Attention Before you buy a product or a service, you must be aware of it first. There are many ways of getting your attention to the business products and services and they’re advertising. Ways of advertising your business is newspapers, radio, T.V., leaflets, billboards and posters. Another way of getting you attention is by having store displays and striking packaging. Stage 2 – Information The next step is to find out if that particular item will meet your needs. In order to know this, you need to find more information and there’s various ways that you can get this and they could be by reading the label or packaging, asking your family or friends, searching...
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...with fashion ethical issues 2.1.3.1 Introduction 2.1.4 Study the future prospect of fashion marketing 2.1.4.1 Introduction 3.0 Chapter 3 Introduction 3.1 Case study 4.0 Chapter 4 Conclusion 1.0 Chapter 1 Introduction Fashion is a general term for a trendy style, most commonly related to clothing, jewelry, shoes, accessories, make up, or furniture. Fashion is also something we deal with daily and changes constantly as time progresses. New fashion ideas can be influenced by music, movies, videos, books and other related (items and media connected to popular culture. Due to these changes and relationship with popular culture, fashion is a big business. The fashion industry is involved in the purchasing, selling and manufacturing of clothing. It solely focuses on generational fashion trends and to figure out consumer's liking in different segmentations. (pbs.org) The fashion industry is one of the major contributing sectors in the global economy; it had created various job opportunities for the people. Most noticeably, the industry has designed and manufactured clothing corresponding to trends and brands that have brought out a strong buying desire among shopaholics. In the 21st century, the fashion industry has been facing many existing problems. Most of these are issues surround ethical fashion. Some difficulties regarding ethical fashion are, selling cheap clothes in high street, prices of clothing not correspond with the material, and the process...
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...One of the aims of any company is holding the largest portion of market share. To gain a competitive edge, the company uses marketing as a means to attract the consumer to the service which it provides. Marketing as defined by Boone and Kurtz suggest the following; "Marketing is the process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods, services, organizations, and events to create and maintain relationships that will satisfy individual and organizational objectives” (http://iws.ohiolink.edu/moti/homedefinition.html). The American Marketing Association also released a definition of marketing which states, “Marketing is an organizational function and a set of processes for creating, communicating and delivering value to customers and for managing customer relationships in ways that benefit the organization and its stakeholders” (http://www.marketingpower.com/content21257.php ) While these two definitions speak of the relationship between satisfaction and the value of the customer, others take a different view in defining marketing. Investopedia.com says that marketing is “the activities of a company associated with buying and selling a product or service.” Wordnet.com adds that marketing consists of the “commercial processes involved in the promoting, selling and distributing of a product or service” These two definitions consider the processes which take place in carrying out sales. Wireless Ventures Ltd. trading as Digicel...
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...resources to ensure the business is successful. In addition to this, many skills are required which include taking risks when needed and exploiting opportunities. These enterprise skills contribute to the business achieving their aims and objective, which is critically important for them as a business. Self confidence and motivated management is key to Business managers and franchisees. As a business, McDonalds require highly motivated managers to achieve success. The McDonalds website also states they need to have good communication skills, and be a brilliant multi-tasker. http://www.mcdonalds.co.uk/content/dam/McDonaldsUK/People/Meet-our-people/mcd_prospectus.pdf A business manager works with a team of 80 and a business with an average turnover of £2 million. This indicates their significance of their role and highlights how good communication should be. McDonalds has a flat hierarchy which enables business managers to communicate well with their staff. They can offer efficient training to their staff which therefore helps the business run more smoothly. They also have to maintain motivation which will help their team work more efficiently which will maintain their customer base and generate profit. This will consequently contribute towards their aims and shareholder return. High levels of confidence is also required by franchisees and business managers. Franchisees have to control costs based on the McDonalds requirements. This can be difficult due to their may be limitations...
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...corporation's revenues come from the rent, royalties and fees paid by the franchisees, as well as sales in company-operated restaurants. McDonald's revenues grew 27 percent over the three years ending in 2007 to $22.8 billion, and 9 percent growth in operating income to $3.9 billion. McDonald's primarily sells hamburgers, cheeseburgers, chicken, French fries, breakfast items, soft drinks, milkshakes, and desserts. In response to changing consumer tastes, the company has expanded its menu to include salads, fish, wraps, smoothies, and fruit. Mission Statement “McDonald’s vision is to be the world’s best quick service restaurant experience. Being the best means providing outstanding quality, services, cleanliness, and value, so that we make every customer in every restaurant smile.” Vision Statement “We will be the most efficient provider so that we can be the best value to the most people”. * Competition bases:...
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...MK3UWA: New Product or Service Marketing Plan Introduction Red Bull Gives You Wings Being a market leader in the market of energy drinks and being in the mature stage of the their product life cycle, RedBull constantly comes up with new ideas and strategies to stay at the top of the consumer business among its competitors. By having a variety of types of drinks to cater to different segments of the market, RedBull has introduced various editions of the internationally-renowned energy drink to cater to different segments of the market, such as Red Bull Cola for teenagers, Red Bull Zero Calorie & SugarFree for the health conscious, and flavored Red Bull Cranberry, Lime and Blueberry to meet the wants of the consumers who seek variety. With the introduction of a new addition to the existing product line around the 2014 FIFA World Cup, a major sporting event and a worldwide phenomenon that is watched by millions around the globe at the stadium or at their local pubs or even on the television in their homes. Red Bull aims to increase brand awareness by associating the brand name to the event and increase market share by developing a unique selling point/product differentiation in order to obtain some of the competitors’ regular consumers. The introduction of this new product will not cannibalize the other products in the line as it caters to a completely different market with different lifestyles, thus another purpose of this marketing plan is to expand the number of...
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...to the various outlets worldwide, where the industry standard is about six-month. Being in the fashion industry, Zara not only aims to offer good quality merchandise, it also tries to provide good customer service by understanding what its customers want. Zara has developed a supply chain that enables the brand to provide fashionable clothing at affordable prices. A supply chain includes all activities and information flow within an organization, transformation of goods and services from the raw material stage to selling the finished products to the end user. One of Zara’s key advantage lies in its process that allows Zara to operate efficiently. Zara employs subcontractors for all sewing operations, which allow the company to stay focus on its core competencies - designing, distribution and retailing of its products. Zara also exploits advance technology and knowledge, by developing customized system to operate its distribution center and creating a hand-held device to manage its ordering system scheduling and inventory management from the different outlets. These strategies have allowed Zara to operate at minimal cost as staying focus, enable Zara to continuously improve on its system to operate even more efficiently. Moreover, technology used in the organization, a huge investment, has minimize the need for paper work and reduce the unnecessary interactions between parties along the supply chain. Being in the fashion industry, Zara also understand the efficiently in...
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...(Nestlé, 2006). In the late 1960’s and 1970’s, Nestlé found itself in the centre of a scandal (Krasny, 2012). It was accused of encouraging mothers in Asia, Africa, and Latin America to use baby formula instead of breast milk, a healthier and less expensive alternative (Krasny, 2012). The allegations of non-ethical marketing practices led to boycotts of Nestlé products, beginning in 1977, in the United States and Europe: some boycotts continue to this day (Facebook, 2012). The criticisms, public outcry, and attention from social activists resulted in Senate Hearings in the United States and meetings by the World Health Organization (WHO, 1981). The result was a new set of marketing rules, introduced in 1981,that restricted the promotion of baby formula (WHO, 1981). These restrictions are outlined in the International Code of Marketing of Breast-Milk Substitutes (WHO, 1981). The aim of the code is to “ensure the proper use of breast milk substitutes, when these are necessary, on the basis of adequate information and through appropriate marketing and distribution” (International Lactation Consultant Association, 2001). When you consider the corporate marketing practices uncovered in the Nestlé scandal, one can see that a corporation’s vision must go beyond profits, and consider business ethics, motivation, perception, and conformity, and business ethics as key success factors in a world that has embraced corporate social responsibility. Business Ethics - Nestlé Business...
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...------------------------------------------------- The Sports guy Key Events / Case Synopsis The Sports Guy is an independent sporting goods store operating outside the GTA owned by Bob “Rocky” Rhodes who is a considerably high profile personality in the local sports community. He has been a star player on local teams his whole life and has always made it a priority to show support for all things related to his sports community. Most of The Sports Guy’s sales consist of equipment and uniforms to local teams. Around 70% of their sales are made up by purchases from hockey, baseball, football, soccer teams with the remaining 30% made up from walk-in retail trade. Rocky has problems with inventory management, low ratio of sales by walk in customers and his major source of sales for teams declining due to lack of registration in local teams. Despite being located in a prosperous neighborhood with little competition except a small, older Canadian tire that offers low prices but lacks in quality and customer service, The Sports Guy is having financial troubles. Problem Statement and Objectives The Sports Guy’s profitability has not been growing sufficiently enough to provide Rocky with the means to grow his company as the town develops. A lack of inventory system which affects his most profitable sales group: walk-ins has also increased his short term debt and interest expenses which all eat away at the already tight profit margins. Decline of popularity for kids’ leagues...
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