calculate the critical Price Elasticity of demand which is just sufficient to maintain the contribution to overheads and profits. This will be greater than that required to maintain revenue. A common issue in business and in business studies is whether a firm should change the prices at which products are offered. The calculations begin with estimates of the reaction of customers to the new prices. This reaction is represented as Price Elasticity of Demand (PED)‚ the ratio of the proportionate changes
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Chapter 7 FORECASTING QUESTIONS & ANSWERS Q7.1 Accurate company sales and profit forecasting requires careful consideration of firm-specific and broader influences. Discuss some of the microeconomic and macroeconomic factors a firm must consider in its own sales and profit forecasting. Q7.1 ANSWER The better a company can assess future demand‚ the better it can plan its resources. Every corporation is exposed to three types of factors influencing demand: company‚ competitive and
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MILK PACKAGING Milk packaging can be very varied and the types of packaging have increased over time. The aim of packaging is both practical and commercial. So there is need for packaging suppliers to include both these aspects while desiging a packing. Practical AIM: It must carry the milk and keep it fresh Commercial AIM : keeping the cost down and marketing the product. There are three main types of milk which are differentiated with their labelling and coloured caps Full cream milk –blue
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Activity 6- Pricing 1. Give an example of each major type of pricing objective: profit-oriented pricing‚ sales-oriented pricing and status quo pricing. Lamb/Hair/McDaniel (2012) mention that establishing realistic and measurable pricing objectives is a serious part of any firm’s marketing policy. Pricing objectives are usually categorized into three categories: profit oriented‚ sales oriented and status quo. In consistent with Lamb/Hair/McDaniel (2012) profit oriented pricing is based on profit
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1. Introduction to BAYONNE PACKAGING‚ Inc BAYONNE PACKAGING‚ Inc is a $43 million printer and paper converter company that produces customized paper-based packaging‚ for industrial customers‚ for promotional materials software‚ luxury beverages‚ gift good and gift candy. Presently‚ the business is leaded by Dave Rand and the board of the company is constituted by family members‚ a local banker and outside counsel. This company is implemented in the paper packaging industry that was featured
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Manufacturers are currently competing with each other to produce a form of green packaging.Packaging is an important part of marketing these days‚but much of it is a threat to the environment.There are two reasons for this.The production of such packaging uses up a great deal of energy and cartons‚wrappers‚etc are often difficult to dispose of when they become waste material. People in most countries have become aware of the damage which modern living is doing to the environment‚and many of them
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There has been a gradual change in the mode of packaging for last years.For instance‚ earlier fruits and vegetables were used to be transported in wooden boxes but today cardboard crates are used .This is mainly to reduce the cost. Obviously‚a cardboard crate would cost less than wooden crate. Moreover‚using cardboard crates is more eco friendly than cutting trees and making wooden boxes and supporting an environmental cause helps firms improve their goodwill and eventually their sales. Similarly
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1 Active & Intelligent Packaging 2013 Copyright © 2013 by Clear Seas Research/BNP Media. All rights reserved. Results of this study cannot be used in whole‚ or in part‚ for promotional literature or otherwise without the expressed written permission. ICS Carpet Cleaning Chemical Market Study Copyright © 2013 by Clear Seas Research/BNP Media. All rights reserved. Results of this study cannot be used in whole‚ or in part‚ for promotional literature or otherwise without the expressed
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Pricing Strategies in Software Platforms: Video Consoles vs. Operating Systems Operating system platforms charge high prices to the users and subsidize developers. However‚ video console firms charge low prices to users and make profits on the developers’ side. When setting prices‚ developers may be constrained by one of two margins‚ the demand margin and the competition margin. What margin is binding depends on the number of applications in the market and on the level of substitutability among
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What is sales forecasting? In general terms‚ forecasting means “A statement made about the future”. So‚ Sales forecasting is the estimation of sales made for the future. Sales forecast is an estimate of sales in rupees or in units for future period. A sales forecast is the prediction of sales volume that a company can estimate to achieve in specified period of time in future. Following are some of the definitions given by different scholars: According to American marketing Association
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