D1 Unit 4
Questions: 1. Explain how Marketing affects the outcome of the financial equation: Sales-Expense=Profit. What risk the company might be facing in this equation with regards to marketing? Expound on the importance of marketing in sustaining business growth. (5 points.)
In the equation, Sales-Expense=Profit, activities done in Marketing can be said or considered as marketing expenses that includes advertising costs, promotions, PR events and Marketing Research costs (e.g. FGD, etc.). Through the income statement, we can get the Profit or Revenue and costs or expenses. These may include the costs of marketing the product or services with other costs that is deducted from the amount of sales or total sales. The idea is to increase …show more content…
This matrix is used by companies which have a growth target or a strategy of specialization. This tool, crossing products and markets of a company, facilitates decision making. The Ansoff matrix offers four strategies to achieve the objectives.
Market Penetration
Trying to make a greater share of an existing market with an existing product. This could involve product re-launch or increasing brand awareness. For example, Ipods can be used for file storage as well, this gained them market share in the storage devices market.
Product Development
Develop new products to target the company’s existing market segments. For example, Coca Cola introduced Coke Zero and Coke Cherry.
Market Development
Finding or creating new markets by targeting new parts of the market or by expansion into different markets. For example, San Miguel introduced San Mig Zero targeting the health conscious people that wanted lesser calories but still enjoy beer.
Product Diversification
Seeking to create or develop new products, lines or product ranges for new markets. For example, when Apple introduced the IPad tablet, which revolutionized how people work and manage taske with tap and swipe on the
In the equation, Sales-Expense=Profit, activities done in Marketing can be said or considered as marketing expenses that includes advertising costs, promotions, PR events and Marketing Research costs (e.g. FGD, etc.). Through the income statement, we can get the Profit or Revenue and costs or expenses. These may include the costs of marketing the product or services with other costs that is deducted from the amount of sales or total sales. The idea is to increase …show more content…
This matrix is used by companies which have a growth target or a strategy of specialization. This tool, crossing products and markets of a company, facilitates decision making. The Ansoff matrix offers four strategies to achieve the objectives.
Market Penetration
Trying to make a greater share of an existing market with an existing product. This could involve product re-launch or increasing brand awareness. For example, Ipods can be used for file storage as well, this gained them market share in the storage devices market.
Product Development
Develop new products to target the company’s existing market segments. For example, Coca Cola introduced Coke Zero and Coke Cherry.
Market Development
Finding or creating new markets by targeting new parts of the market or by expansion into different markets. For example, San Miguel introduced San Mig Zero targeting the health conscious people that wanted lesser calories but still enjoy beer.
Product Diversification
Seeking to create or develop new products, lines or product ranges for new markets. For example, when Apple introduced the IPad tablet, which revolutionized how people work and manage taske with tap and swipe on the