Notes, summaries, assignments, exams, and problems for Economy

Market Segmentation and Targeting

True/False Questions

Question 4

Dove, a division of Unilever, traditionally targeted both men and women with its Dove-branded skin care products.

Question 6

For some consumer products such as cigarettes, soft drinks, and candy that have a low per-unit cost, income is often a more valuable segmentation variable than population.

Question 12

Categories such as "successful idealists" and "affluent materialists" can be used to describe psychographic segmentation, not age segmentation.

Question 13

Sometimes it is preferable to market to a particular mind-set rather than an age group; in such an instance, psychographic studies can help marketers arrive at a deeper understanding of consumer behavior than is possible with traditional... Continue reading "Understanding Market Segmentation and Targeting" »

Basic Economic Problems

In view of the scarcity of resources at our disposal and the unlimited ends we seek to achieve, the economic problem lies in making the best possible use of our resources so as to get maximum satisfaction in the case of the consumer and maximum profit for the producer. Hence, economic problem consists in making decisions regarding the ends to be pursued and the goods to be produced and the means to be used for the achievement of certain ends.

Fundamental Problems facing an economy (Basic Economic Problems)

What to Produce?

The first major decision relates to the quantity and the range of goods to be produced. Since resources are limited, we must choose between the different alternative collection of goods and services that... Continue reading "Understanding Basic Economic Problems and Economic Systems" »

1. What is Economic Competition?

Economic competition is the process of rivalry between undertakings for consumer choice by offering the best possible goods and services.

2. Negative Effects of Lack of Competition

When markets lack effective competition, several negative consequences can arise:

• High Prices (Artificial): Without competition, businesses can artificially inflate prices beyond reasonable levels.
• Low Quality: The absence of competitive pressure can lead to a decline in product or service quality.
• Limited Options for Consumers: Consumers face fewer choices when competition is limited.
• Lack of Innovation: Without the drive to outperform competitors, innovation stagnates.

3. Economic Regulation vs. Competition Policy

While both aim to promote... Continue reading "Understanding Economic Competition and Its Effects" »

Different Marketing Orientations in International Business

Understanding the approach a company takes when entering foreign markets is crucial. These orientations dictate the level of adaptation required for the marketing mix.

1. Domestic Market Extension Orientation

This orientation is illustrated by a domestic company seeking sales extension of its existing domestic products into foreign markets. It is typified by the belief that, if a product sells successfully in the home market, it will sell anywhere else in the world.

Minimal efforts are made to adapt the marketing mix to foreign markets; the firm’s orientation is to market to foreign customers in the same manner as the company markets to domestic customers. It seeks markets where demand... Continue reading "International Marketing Strategy Models and Starbucks Business Strengths" »

More engaged employees = up to 21% productivity boost

Strategy

Creating a competitive advantage that generates superior, sustainable financial returns.

• Need to choose a position against the competition, player dynamic, and industry changes.
• Successful strategy considers: external environment, internal activities, and long-term industry/organizational changes.
• Decisions should be mutually reinforcing, leading to optimization of effort.

Aspirations

The purpose and goals of a person or corporation, essential for a strategy.

• Personal Aspirations: Intrinsically motivated, more than a goal; enduring and motivated from within, an expression of the search for fulfillment.
• Organizational Aspirations: Extrinsically motivated, encompassing mission, vision, and

Understanding the Sustainable Development Goals (SDGs)

The United Nations Sustainable Development Goals (SDGs) are a universal call to action to end poverty, protect the planet, and ensure that all people enjoy peace and prosperity. There are 17 interconnected goals:

• 1. No Poverty: End poverty in all its forms everywhere.
• 2. Zero Hunger: End hunger, achieve food security and improved nutrition, and promote sustainable agriculture.
• 3. Good Health and Well-being: Ensure healthy lives and promote well-being for all at all ages.
• 4. Quality Education: Ensure inclusive and equitable quality education and promote lifelong learning opportunities for all.
• 5. Gender Equality: Achieve gender equality and empower all women and girls.
• 6. Clean Water and Sanitation:

The Welfare State: A Social Contract

The welfare state is a system in which the government provides citizens with a minimum level of education, healthcare, and financial support, even during challenging circumstances such as illness, retirement, disability, or unemployment.

Types of Taxes

Value-Added Tax (VAT)

A tax levied on the price of goods or services paid by consumers.

Income Tax

A tax on the income earned by individuals or businesses, including salaries and profits.

Company Tax

A tax on the profits generated by companies.

Social Security Contributions

Taxes paid by both employers and employees to fund social security programs.

Measuring Social Inequality: The Gini Coefficient

The Gini coefficient is a measure of social inequality, ranging from 0... Continue reading "Understanding the Welfare State and Social Security: A Comprehensive Guide" »

SMART Objectives

SMART objectives: Specific, Measurable, Achievable, Relevant, Time-bound

Aims vs. Objectives

Difference between aims and objectives: Aims are general statements concerning the overall goals, ends, or intentions of teaching. Objectives are the individual stages that learners must achieve to reach these goals.

AIDA

AIDA: Attention, Interest, Desire, Action. The objective is close to the sale.

Marketing Mix

Marketing mix: 4 aspects to be considered in the market: product, price, distribution, and promotion.

KPIs

KPIs: Numbers related to the objectives set within our strategy or annual marketing plan.

The Boston Matrix

The Boston Matrix: Relationship with the commission and the growth of the market.

The Body Shop (Auditing)

How do the auditing

• Modes of International Business

  • Merchandise Exports & Imports

-This is the most common mode of international business.

-Merchandise exports and imports are tangible products. They can be seen leaving and entering a country.

• • Services Exports & Imports

They are international non-product sales and purchases.

• • • Tourism and Transportation:

Are important sources of revenue for airlines, shipping companies, travel agencies, and hotels.

• • • Performance of Services

This refers to company's earnings in the form of fees (payments for the performance of a service).

1. Turnkey Operation

Is a deal where a company takes all responsibility for constructing, fitting and staffing a building (such as a school, hospital or factory) so that it is completely ready for the purchaser... Continue reading "Modes of International Business and Investment" »

What is Economics?

Economics is the study of choices that people make to satisfy their needs and wants.

Factors of Production

• Land
• Labor
• Capital
• Entrepreneurship

Goal of Entrepreneurship

The goal of entrepreneurship is to be successful and maximize profit.

Why is Scarcity a Basic Problem of Economics?

Scarcity is a basic problem because wants are unlimited, even when resources are limited. Therefore, it's crucial to use resources effectively.

What Issues Must Producers Address to Distribute/Allocate Resources?

1. What to produce?
2. How to produce?
3. For whom to produce?

Why Do Producers Study Productivity?

Producers study productivity to determine if resources are being used wisely.

Why is Sacrifice an Important Element of Economic Choice?

Sacrifice forces people to... Continue reading "Understanding Economics: Principles and Applications" »