Marketing and Finance Concepts for Business Success

Classified in Economy

Written at January 14, 2024 on English with a size of 4.57 KB.

Marketing Orientation - An outward looking approach basing product decisions on consumer demands as established by market research. The business attempts to produce what consumers want, this requires market research and market analysis to indicate consumers demand.

Benefits - Newly developed products failing are reduced. Consumers' needs are being met with appropriate products.Product Orientation - An inward looking approach that focuses on making products that can be made or have been made for a long time and trying to sell it. Invent products with the belief that they will find consumers to purchase them.Commercial Marketing - Satisfying consumers' needs for profit.

Market Size - Total levels of sales of all the producers within a market.[Volume of sales helps to calculate their market share][Value of goods growth or decline can be identified]

Market Growth - Percentage change in the total of a market over a period of time. Depends on economic growth, consumers' income, and technological change. Homogeneous Products - They look the same different for differentiates. Segmentation - Refers to dividing of prospective consumers into groups who share common tastes and requirements. Target Marketing - Focus market activity on particular segments of a market. Mass Marketing - Sells to the whole market using a standardized product. Market Share - Proportion of total market revenue one business sales revenue accounts.Sales

Market Share = ------------------------ x 100

Total Market Sales Market Leadership - When the business achieves the high market share benefits: higher profits promote best-selling brands. Marketing Objectives - Profit, increase total sales, increase new customers, higher market share, customer loyalty, non-profit, raise funds, promote the work. Unethical Consideration - *Using brand names similar to a well-known trademark *Travel fraud.

Niche Market - The subset of the market on which a specific product is focused.

Unique Selling Point -Is a factor that differentiates a product from its competitors, such as the lowest cost, the highest quality, or the first-ever product of its kind.

Market Segmentation - The process of dividing the market into distinct groups of consumers.Mass Market - A large market that ignores specific market segments.Targeting - Process of marketing to a specific market.Finance

Capital Expenditure - Is the money an organization or corporate entity spends to buy, maintain, or improve its fixed assets.

Collateral - Financial security pledged for repayment.Revenue Expenditure - Money spent day to day. Rent, raw materials should provide immediate benefits.Sources of Finance*InternalPersonal Funds - Comes from personal savings.Retained Profit - Profit that remains after the business has paid taxes and dividends to shareholders.Sales of Assets - When a business sells off its unwanted or unused assets to raise funds.
Break Even Analysis Formulas

Profit = Total Revenue - Total Cost

Total Cost = Fixed Cost + Variable Cost

Revenue = Quantity Sold x Price Per Unit

Total Contribution = Total Revenue - Total Variable Cost

1 (Price x Unit) (Cost x Unit)

(Selling Price Per Unit - Variable Cost Per Unit)

Margin of Safety = Level of Demand - Break Even Output

Break Even Quantity = Fixed Cost

Contribution Per Unit

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