Core Marketing Concepts and Strategic Analysis
What Is Marketing?
Marketing is a social and managerial process through which individuals and organizations obtain what they need and want by creating and exchanging products and value with others. It focuses on identifying and satisfying customer needs.
The History of Marketing
The Production Era
Demand exceeded supply, leading to minimal competition and monopolies.
The Sales Era
Supply exceeded demand, which gave rise to competition.
The Marketing Era
Supply greatly exceeded demand, making customer-focused
Read MoreMacroeconomic Fundamentals: Objectives, Circular Flow, and Business Cycles
Microeconomics and Macroeconomics: Defining the Scope
Microeconomics focuses its study on individual units of consumption and production, the functioning of specific markets, and the formation of prices.
Macroeconomics offers a simplified view of the functioning of the entire economy through aggregate variables, often called macro variables. These include the National Product (PN), National Consumption, and Public Expenditure (GP).
Key Macroeconomic Objectives of Government Policy
The government typically
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Foundations of Business Economics
Business Economics: Definition, Nature, and Scope
Business Economics is the application of economic theory and methodology to business decision-making. Its nature is prescriptive, aiming to provide tools for optimal resource allocation and decision-making within a firm.
Its scope covers critical areas, including:
- Demand analysis and forecasting
- Production and cost analysis
- Pricing policies and strategies
- Capital budgeting
- Profit management
The Crucial Role of a Business
Read MoreEssential Business Formulas and Management Processes
Core Financial Formulas
Revenue, Profit, and Tax Calculations
Revenue (R(x)): R(x) = FC + VC(x) + PBT
Profit After Tax (PAT): PAT = PBT – CT
Corporate Tax (CT): CT = PBT × CTR / 100
Profit Before Tax (PBT): PBT = PAT / (1 – CTR)
The Purchasing Cycle
- Requisition: Defining the type and number of items needed.
- Value Analysis: Determining the lowest cost way to satisfy the request.
- Supplier Selection: Evaluating prices, delivery times, quality, and other factors.
- Order Placement: Issuing a formal purchase order.
Market Structure, Firm Dynamics, and Industrial Policy in India
Market Structure and Firm Behavior
Understanding Market Structure
Market structure refers to the characteristics of a market that affect the behavior and performance of firms within it. The main types of market structures are:
- Perfect Competition: A market with many firms, free entry and exit, and homogeneous products.
- Monopoly: A market with a single firm, barriers to entry, and a unique product.
- Monopolistic Competition: A market with many firms, free entry and exit, and differentiated products.
- Oligopoly:
Key Financial Metrics and Cost Accounting Methods for Business
Payback Period (PP)
The time it takes for an initial investment to be repaid from the net cash inflows of a project.
Characteristics
- Does not consider the time value of money.
- Ignores cash flows that occur after the investment has been repaid.
Formula: Year Before Full Repayment + (Unpaid Amount / Net Cash Flow in Repayment Year)
Interpretation: “I will have to wait X years to recuperate the initial investment.”
Accounting Rate of Return (ARR)
Expresses the average accounting operating profit an investment
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