Marketing Determinants: Economic Factors and Business Size
Economic Situation and Marketing Plans
The global economic situation at national and regional levels is one of the determinants of marketing plans, with clear implications for global enterprises. A higher cost of money leads to a selectivity of investment and expenditure, fully affecting marketing. Nationwide, an inflationary situation amplifies any marketing efforts, increasing positive results, while in periods of recession, the impact is unfavorable. An alternative in the latter case is to reduce
Read MoreGlobal Marketing: Pricing, Channels, and Strategy
Global Pricing Strategies and Issues
1. Law of One Price
Ensures equitable treatment and competitive balance in markets.
2. Reasons for Price Differences Across Markets
National market prices differ due to variations in:
- Costs: Logistics, labor, taxes.
- Competition: Local competitive intensity.
- Regulation: Government rules and interventions.
3. Key Pricing Decisions
- Pricing Objectives: Such as profit maximization, market penetration, or market skimming.
- Pricing Strategy: Determining price levels, positioning,
Unmasking Global Brands: Practices, Profits, and Protests
Book’s Hypothesis: Exposing Brand Secrets
This book aims to reveal the unethical secrets of major brands to inspire widespread opposition to their practices.
1980s Management Concept: Image Over Product
In the 1980s, the focus shifted. True corporate profitability wasn’t just about producing objects, but about creating a powerful brand image associated with the product.
Brand Blindness: Price Over Logo
This term describes consumers prioritizing price over the brand logo when making purchases, often driven
Read MorePost-WWI Economic Turmoil and Policy Responses
Economic Difficulties and Precarious Monetary Stability
Production Dynamics
Production is divided into two stages:
1. Reconstruction (1921-1925)
In Europe: After World War I, Europe did not reach its 1913 GDP level until 1927. Recovery was slow due to:
- Social and political conflict: Socio-professional conflicts arose because full employment was not achieved, leading to low purchasing power. Border conflicts resulted from the redrawing of Europe’s map. Social and political instability persisted as many
Product Strategy: Differentiation, Mix, Branding, and Development
Product Attributes for Differentiation
Decisions on product attributes as a source of differentiation.
Product Differentiation Sources
- Product Versions: Variations offered.
- Features: Specific characteristics.
- Quality of Results: Performance level.
- Level of Compliance: Meeting standards.
- Reliability: Consistency of performance.
- Durability: Lifespan of the product.
- Repairability: Ease of fixing.
- Style: Aesthetic appeal.
Design Differentiation
Achieving distinctiveness through product design.
Service Differentiation
- Ease
Key Concepts in Financial Management and Business Studies
Importance of Financial Management
Q.1. Discuss the importance of financial management.
ANS. Financial management may be defined as planning, organising, directing and controlling the financial activities of an organisation. All the financial activities of a company are directly or indirectly affected by the financial management. The common activities and areas which are influenced by financial management are:
- Size and Composition of Fixed Assets of Business: Financial management decisions have a great