Besiness Law

Test 2

MARKETING

Evolution of Marketing

Production era up to 1900s

Selling era 1920s-1950s

Marketing era 1950s-1990s

Customer relationship management era 1990s +

Marketing 4 Ps

Product: goods, service, accessories, feature, branding

Price: list price, credit term, allowance, flexibility

Place: channel type, market coverage, intermediaries, transport mode

Promotion: public relation, sales discount, advertising, word of mouth, personal selling

Disney case studies

Product(service): Theme park experience(S), Resort experience(S), Meals(P), Souvenirs(P)

Pricing: List price- Name different class of resorts with different price. Discount/ Promotion - early booking and off season booking (free meals during hurricane season)

Place: chose situate resorts in an area with favorable weather year around. avoid hurricane; situated resorts amongst theme parks.

Promotion: Many channel for advertising product/service offering such as online, television; emphasis on customer relations; dependence on word of mouth.

The marketing environment

Global: trade agreement; alliance; trade restriction; competition.

Technological: bar code; telecommunication; internet changes; data interchange.

Social culture: demographic; values; attitudes; culture.

Competitive: speed; price; service; selection.

Economic: GDP; disposable income, unemployment rate, spending patterns.

Legal & regulatory: tax law, contract law, eliminate corruption.

FINANCE

How interest rate set by Central banks contribute to simulating - or slow down - a notional economy.

By decreasing interest rates, more borrowing will result and therefore the economy is stimulated.

By increasing interest rate, less borrowing will result and therefore the overheated economy is dampened.

Identify one reason why it is important for government to attempt to keep inflation at low levels.

High inflation rate will devalue the currency. As a result, people's saving will be dried up. It is bad for social peace.

What is the one (1) reason the Canadian business community might provide in opposition to governments using debt to support Keynesian (or fiscal) economic policies?

Cost of serving debt will increase the long term obligation and compete with private sector for debt cash.

Debt financing vs. Equity financing

Explain "the time value of money "or "market inefficiency" to explain why investment can make money.

Time value of money :The longer you borrow, the more of return I expect since you are using my money and I have to give up certain "enjoyment" . Higher inflation, higher return; more abundant money available, the lower in time value.

Market inefficiency : the key reason I am willing to sell and you are willing to buy is because we have unequal information.

Pricing of risk: The higher the risk my investment will decline in value, the more money I will expect to be repaid. Perceptions of and tolerance for risk are different among people.

Marketing 4P

Identify and explain 2 goals of Pricing strategy for marketing its products.

price should stay competitive to capture market share and achieve target profit level.

One of the objectives for marketing is to "persuade buyers to like" your product or service. Provide one (1) example of a promotional technique that a company could use to achieve that objective.

sales discount and give free sample

Identify, and briefly describe one (1) of the integrated