...likely future effect 1. The system's name: Social Media, i.e., Facebook, Twitter, etc. The area of business it affects: From banking to advertising, it affects all areas of business What changes the system brought to the business world: Helping them reach larger audiences; giving more choices to consumers, and made business more competitive overall. What business processes changed because of the system: Marketing, business conduct, security, etc. The system's likely future effect: More use of social media in every aspect of life. 2. The system's name: Cloud Computing The area of business it affects: From banking to advertising, it affects all areas of business What changes the system brought to the business world: Helping them reach larger audiences; giving more choices to consumers, and made business more competitive overall. What business processes changed because of the system: The way business's store and process data. The system's likely future effect: Continues use of "server" farms to store and process data. 3. The system's name: Mobile Systems The area of business it affects: From banking to advertising, it affects all areas of business What changes the system brought to the business world: Helping them reach larger audiences; giving more choices to consumers, and made business more competitive overall. What business processes changed because of the system: Banking, entertainment, etc. The system's likely future effect: More...
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...ECONOMICS PROJECT ON Selling Cost Or Advertising Expenditure Made by Roll no Names 18 Srishty Jain Abstract Selling (Advertising) Cost: Selling Cost (SC) is another outstanding feature of a monopolistic competitive market. This is in the form of advertisement expenditure. Selling Cost and Product Differentiation together enable the producer to maintain some control over market conditions and influence the shape of the demand curve. Both features are interdependent. Whenever a product is differentiated it is necessary to inform buyers; and advertisement is the only medium through which buyers can be told about superiority of that product. Selling Cost by itself is apparent product differentiation. When a product does not contain any genuine qualitative difference, buyers can be made to treat a product differently through advertisements. So whenever products are differentiated and advertised, the market becomes a monopolistic competition. These are the hallmarks of this form of market. The presence of selling cost increases the firm’s cost of production. In order to recover it, firms have to charge a higher price. The net effect of a monopolistic competitive market is pricing goods at a higher rate. Consumers have to bear this extra expenditure. For manufacturing companies, product costs are only costs that are necessary to produce a finished product. As discussed earlier in the tutorial, product...
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...Summer 2011-Practice for Final Exam 1. A monopoly firm is different from a competitive firm in that: A. there are many substitutes for a monopolist's product while there are no substitutes for a competitive firm's product. B. a monopolist's demand curve is perfectly inelastic while a competitive firm's demand curve is perfectly elastic. C. a monopolist can influence market price while a competitive firm cannot. D. a competitive firm has a U-shaped average cost curve while a monopolist does not. 2. If a monopolist increases output from 14 to 15 by lowering its price from $32 to $31, marginal revenue is: A. $ 1. B. $ 17. C. $448. D. $465. [pic] 3. Refer to the graph above. The maximum possible total profit this monopolist who charges only one price can earn is: A. $ 0. B. $ 60. C. $120. D. $240. [pic] 4. Refer to the graph above. The profit-maximizing monopolist would sell its output at price: A. P1. B. P2. C. P3. D. P4. 5. The DeBeers Company is a profit-maximizing monopolist that exercises monopoly power in the distribution of diamonds. If the company earns positive economic profits this year, then the price of diamonds will: A. be equal to the marginal cost of diamonds. B. be equal to the average total cost of diamonds. C. exceed the marginal cost of diamonds but be equal to the average total cost of diamonds. D. exceed both the marginal cost and the average total cost of diamonds. [pic] 6. Refer to the graph...
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...alternative filtration products on their ability to remove contaminants from water. Brita does poorly on this comparison relative to PUR. Second, Brita learns that Procter & Gamble has just purchased a controlling share of PUR water filters, with the implication that PUR will now be marketed by a firm that is known for its marketing expertise and resources. Responding to such threats, whether they be new competitive products, suddenly viable competitive products, or repositioned competitive products, is called defensive marketing strategy. Each year, over a thousand new products are launched in the consumer sector alone, and many times that number in the M I T S L O A N C O U R S E W A R E > P. 2 industrial sector. Many of these new products are perceived to be significant threats to highly profitable businesses. For example, Johnson & Johnson’s Tylenol brand of analgesics once dominated the over-the-counter market for pain relief.1 Tylenol had gained this position through a long series of marketing actions that established it as effective with low side effects. Tylenol, based on acetaminophen, was clearly perceived as much gentler than other products such as Bayer and Anacin, which were based on aspirin (possibly with caffeine), and Excedrin, which combined aspirin, acetaminophen, and caffeine. However, in May of 1984, the ingredient ibuprofen became available to all manufacturers for over-the-counter use. Tylenol faced threats by new analgesic products such as...
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...admittedly looks complicated and requires a bunch of entries, the logic underlying the sales forecast entries is fairly straightforward: • Your entries in the four columns headed “Company __’s Marketing Effort” represent tentative values for your company’s marketing effort for the upcoming year in each of the four geographic regions. Think of the entries as “preliminary” or “trial” decisions that represent “what if we do this to try to sell branded pairs in this region.” The numbers already in these columns when you first come to the screen are the decisions your company made last year and represent the competitive marketing effort your company employed to achieve last year’s branded sales volumes and market shares in each geographic region. • Your entries in the four columns headed “Your Estimate of the Industry Average” represent your best “guestimates” of what level of competitive effort your company will be up against in the upcoming year — they are, in other words, what you think that rivals, on average, will...
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...the spreading of capitalism, consumerism has increased, because consumerism fuels the capitalism. In addition consumerism has substantially effect of business domain that direct to companies in a competitive trade. Hence, there are three causes such as advertising, marketing and purchasing power that lead to increasing consumerism First of all, advertising has striking effects of consumerism. Nowadays advertising is an effective strategy of selling new products. People often wants to purchase more clothes, cars, bigger house and shoes, because people needs these requirements. Of course when they are purchasing these requirements, advertisement has been advisor to buy them. Advertising exposes people’s desires that have interest to buy something. In addition with the technology age advertisements have been increased and with the more efficient advertisement, people encourage to consumerism. For example; some companies which are selling sport goods they start to use celebrity person in their advertisement and they are using some slogans as well Therefore advertisement has some effect on people and it leads to increasing consumerism Secondly ; marketing has several impacts on consumerism. Recently people are searching new substantial strategies which can attract people to more consuming and these case direct companies do competitive trade. Contrary to more acquire from one goods, they are reducing product price and they are selling more products. The convergence of these...
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...research paper that has been developed based on gaps in prior frameworks of standardization/adaptation. A three-factor model of standardization/adaptation of global marketing strategy was developed. The three factors include homogeneity of customer response to the marketing mix, transferability of competitive advantage, and similarities in the degree of economic freedom. Findings – The model through the use of feedback effects explains the dynamics of standardization. Research limitations/implications – Future research needs to empirically test the model. To enable empirical validation, reliable and valid measures of the three factors proposed in the model need to be developed. Additionally, the model may be used in future research to delineate the impact a variable may have on the ability of a firm to follow a standardized global marketing strategy. Practical implications – The three-factor model aids decisions relating to standardization in a global marketing context. Originality/value – The paper furthers the discussion on the issue of standardization. Through the identification of three factors that impact standardization/adaptation decisions, and the consideration of feedback effects, the paper provides a foundation for future research addressing the issue....
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...A M o d e l fo r P r e d ic tin g A d v e rtis in g Q u a lity A s a K ey to D riv in g S a le s G ro w th How Television Advertising Quality Affected McDonald’s Sales Growth Over Six Years CHARLES YOUNG Ameritest chuck@ameritest.net The current research used McDonald’s data to explore the relationship between advertising quality and sales growth. Based on a 6.5-year dataset involving more than 180,000 consumer interviews, the researchers found that nearly half of McDonald’s sales ADAM PAGE growth could be explained by variables related to advertising quality. Specifically, the study Ameritest adam@ameritest.net found that factors such as sales momentum, the introduction of calorie content on to quick-service restaurant (QSR, i.e., fast-food) menus, and variables related to key research metrics— and, importantly, the right messaging strategy— can be effective in linking advertising to variation in sales. INTRODUCTION An ongoing challenge to advertising researchers is how to validate predictions about real-world sales performance based on pre-testing metrics. Such validations are important for three reasons: • quantifying the contribution advertising can make to return on investment (ROI), • confirming the general construct of how adver tising "quality" works can be implemented as a quality-control step in the creative process— something once lamented as a "dream that will never come to be" (Metzger, 2013), and • • providing...
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...EVALUATION OF A MARKETING STRATEGY THAT WOULD GIVE WHITE HORSE WHISKY COMPETITIVE ADVANTAGE Name Institution Instructor’s name Course Date Literature Review According to Merchlewicz different beverage businesses adopt varying marketing strategies depending on the different target results (2011). The alcoholic market experiences different patterns with every coming year, and this has a major effect on the resolutions of various marketing departments. Leading alcoholic beverage producers’ is convenience and increase in the product demand. The current market patterns push various beverage companies to invest huge finances to increase their sales opportunities (Spandern 2014). The market is particularly faced by intense competition that has seen numerous brands decline and even others facing withdrawal from the market. Generally, the strategy to increase market share gains favour from most companies. Branding efforts are crucial as they promote strategic planning of various businesses. Sankrusme also argues in support of the existing competition in the beer market and in particular discusses the Thailand market (2011). In the recent past there has been a high rate of expansion in the beer market, a situation that caused a number of entrepreneurs to venture into the business. The new businesses used different marketing strategies to gain a competitive advantage in the market. The author identifies that the Carlsberg beer used...
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...CHAPTER ONE INTRODUCTION 1.1 BACKGROUND TO THE STUDY Advertisement plays a vital role in the marketing of products as it provides a buying power for various product operations by affecting the behavior of consumers. Different media have been used for advertising products such as news papers, magazines and radio. Television however occupies an important place of products due to its extensive spread worldwide. In addition, television plays an important role on changing the consumer behavior and also provides new patterns for consumption. The present context of business organization is situated in increasingly complex, uncertain, and dynamic business environments with multiple realities based on various values, priorities, and requirements. As a result, the challenges demanded by globalization, increased competition, far-reaching socio-cultural and technological developments, and acceleration of changes are bringing about new complexities for organizations. Therefore sustenance of existing customers and attracting new ones in recent times has become a critical factor in business. In fact the seeming growth of many advertising industries is instructive of the fact that, complex and uncertain business environment has lead many organizations to device multifaceted approaches to market their products and services through various techniques of advertisements. Moreover, the essence of being in business by any business outfits...
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...This file of ECO 204 Week 3 Quiz shows the solutions to the following problems: 1. Products may be homogeneous or differentiated in the ________ market structure. perfectly competitive monopolistic monopolistically competitive oligopolistic 2. The right answer to the debate regarding the welfare effects of advertising is that advertising always leads to concentration in an industry. advertising always leads to positive economic profits in an industry. advertising always improves the functioning of the market. There is no right answer. 3. Assume that an economy producing two products, skateboards and in-line skates, is initially in equilibrium, and that skateboards and in-line skates are substitutes. If consumer preferences shift away from skateboards and toward in-line skates, which of the following will NOT occur? In the short run, firms producing skateboards will incur losses. In the short run, firms producing in-line skates will earn a profit. Additional capital will begin to flow into in-line skates production in the long run. Additional capital will begin to flow into skateboard production in the long run. 4. Monopolies, oligopolies, and monopolistic competitive industries all earn positive profits in the long run. have market power. are completely unconstrained in their pricing. raise price and quantity over what would occur in perfect competition in order to maximize their profits. ...
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...McGraw-Hill/Irwin © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Many Different Factors Affect Sales Test Your Knowledge Which of the following statements about communications objectives is true? A) It is easy to translate sales goals into communications objectives. B) It can be difficult to determine the relationship between communications objectives and sales performance. C) Communications objectives cannot serve as operational guidelines to the planning, execution, and evaluation of the promotional program. D) Marketing managers do not recognize the value of setting communications objectives. $ALE$ Advertising and promotion Competition Product quality Distribution Technology Price The economy © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin 1 Advertising and Movement Toward...
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...competition: Product: The stores’ products are divided into 5 categories: 1) grocery (including diary); 2) fresh meat/poultry/seafood; 3) produce; 4) seasonal and general merchandise; and 5) bakery and deli. Price: more of a high-end branding strategy. Hi-Value everyday (non-promotional) prices are 10% higher than Harrison and 7 percent higher than Grand American and Missouri Mart. Higher prices have become a competitive concern due to their declining market share in Centralia. The negative growth rate, based on 1998 to 2005 figures from Figure 2, is -0.53%. Place: Three locations (North Fairview, West Main and South Prospect) give a competitive advantage. The VP of Operations even said “we offer greater convenience of shopping with our three stores and that is worth something (implying higher prices)”. Exhibit 6 shows that Hi-Value is ranked “most convenient” by 35%, Promotion: The 2005 advertising budget was 0.89% of sales revenue, or $127,500. Competitors spent an 1% of their sales revenue. If EDLP is adopted, Hi-Value should increase the advertising budget. One of Hi-Values important goals that they wish to get, which we learned through this care is to increase market share in Centralia. They also want to do this and keep the same contribution margin while offering an expanded selection of “loss leaders” (customers think it’s a loss for the store, such a great bargain). They also want to increase quality and service, because Harrison’s is currently...
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...McDonalds do not need to waste profits on advertising as they already have a vast and loyal customer base. Student ID: 0080379103 Student Name: Jing SUN Word count: 1639 The role of advertising in the developments of brand image and brand extension in established companies. Utilizing advertising in a most effective and efficient way is always a concern in most companies, as advertising requires a costly investment in both capital and human resources, which in return is expected to create positive outcomes. With a large volume of consumers and brand loyalties created in established, some argue that advertising can be merely a waste of money. While this idea addresses two major outcomes of conducting advertisement, attracting potential consumers and building brand loyalty, it ignores other contributions, for example, brand extension and brand image building, that could be enhanced by advertising in established companies. This essay will illustrate the reason why advertising is required in established companies, focusing on how appropriate advertising may contribute to developing brand extension and enhancing brand image. First of all, the informative function and social function of advertising will be interpreted. The following sections will demonstrate why large companies should focus on building up brand image and developing brand extension and how advertising contributes to these two dimensions. Then, the negative impact of advertising that advertisement may help to increase...
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...Strategy Planning Individual Essay The role of the strategy planner is integral in the development of a successful advertising campaign. However, strategy planning has not always been utilised within advertising. It is a forever expanding and important field within the communications industry. Through the strategy planner’s research and advanced knowledge of the brand, they are able to offer invaluable insight into the brand. Sequentially giving the client a reason to retain the firm as a business partner. Effective strategy planning requires a number of exhaustive research methods. Without it, a strategy planner cannot fully understand the brand or what the target audience demands. From this research, the creative team is able to design a campaign, which communicates exactly what is required to the desired target audience. However, all fields related to the media are constantly changing. The exponential growth in technology makes strategic planning difficult and challenging, but when utilised correctly can achieve great results. Strategy planning was originally developed in the late 1970’s in the UK and was later imported to the USA in the early 1980’s (Alex Campbell, 2013). Before this the roles were split up between two different agencies; the creative agency, which came up with the communication ideas and the media agency, which planned and purchased the appropriate media (Roles of Account Management and Strategic Planning. 2013). The split eventually made it apparent...
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