PED presentation copy
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This document discusses price elasticity of demand (PED). PED measures how responsive quantity demanded is to a change in price. It defines goods as elastic, inelastic, or perfectly elastic/inelastic. Elastic goods have a PED greater than 1, meaning quantity demanded responds more than proportionally to price changes. Inelastic goods have a PED less than 1, so quantity demanded is less responsive to price. Perfectly elastic/inelastic goods have a PED of infinity/zero, where quantity demanded is completely responsive/unresponsive to price changes. The document provides examples of demand curves for different types of goods to illustrate how their quantities respond to price.
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Place
This document discusses distribution and channels of distribution as part of the marketing mix. It identifies four main channels: 1) direct from producer to consumer, 2) from producer to retailer to consumer, 3) from producer to wholesaler to retailer to consumer, and 4) from producer to agent to seller to consumer. The document provides examples of different businesses that may utilize each channel and factors that influence a business's choice of distribution approach, such as the nature of the product, market, and company capabilities. Learners are asked to analyze distribution channels for three products and consider how well each channel fits with the rest of the marketing mix.
Recovered file 1
This document discusses branding and logos. It defines what a brand is and provides examples of well-known logos such as Lacoste, Coca-Cola, Nike, and Mercedes-Benz. The document notes that branding involves more than just the logo, including packaging, taste, advertising, and slogans. It lists some well-known slogans and discusses benefits of brand names such as brand loyalty and allowing companies to charge higher prices. The document also discusses store brands and conducts a taste test to see if people can distinguish between branded and unbranded products.
Marketing strategy lesson 1 of marketing and some TQM stuff to look into
This document discusses the principles and concepts of Total Quality Management (TQM). It explains that TQM is based on the idea that everyone in the organization must be committed to quality. It also discusses supplier/customer relationships within organizations and using quality circles, group working, and autonomous work groups to strengthen weak links in the chain of quality. The document recommends reading more about TQM and moving on from the topic.
Product life cycle
The document discusses the product life cycle and strategies for extending a product's life cycle. It begins by asking students to name products from Virgin and gives them 3 minutes to do so. It then provides information on the stages of the product life cycle: development, introduction, growth, maturity, saturation, decline, and withdrawal. The document notes that extension strategies can be used during maturity or early decline to prolong a product's life cycle, such as redesigning, adding new features, or changing packaging/advertising to appeal to new market segments. Students are assigned tasks to illustrate the product life cycle, identify example products in each stage, and determine extension strategies as a group for a selected product.
Boston matrix and product life cycle
Product portfolio analysis involves identifying the position of each product in a company's portfolio based on its market share and the market's growth. The Boston Matrix is a common method used, classifying products as stars, cash cows, question marks or dogs. Stars have high market share in growing markets while cash cows have high share in stagnant markets. Question marks have low share but are in growing markets, while dogs have low share in declining markets. Extending a product's lifecycle can involve introducing variations, exporting to new markets, minor redesigns, new advertising, or improved versions. The next class will cover the price aspect of the marketing mix.
As unit 2 marketing objectives
This document outlines the key components of developing an effective marketing strategy. It discusses that a marketing strategy should be based on a clear understanding of the market and a company's strengths and weaknesses. The strategy development process involves conducting a marketing audit and SWOT analysis to analyze the internal and external environment. Objectives are then defined to achieve the overall vision. Components of the strategy include targeting, positioning, and the marketing mix. The strategy also involves deciding on a direction of growth and generic strategy approach. Tactics are then implemented in the short-term to achieve the overall strategic plan.
Marketing strategy lesson 1 unit 2
This document provides an overview of key marketing concepts including what marketing is, the role of marketing within an organization, determining marketing objectives, forming a marketing strategy, and advantages and disadvantages of operating in a mass market or niche market. It introduces these topics and concepts across multiple sections but does not provide in-depth details or explanations for any of the marketing topics.
Tqm and quality
Quality refers to a product or service's ability to meet customer expectations. It is defined by factors like functionality, durability, reliability, image, and after-sales service. Producing quality goods has advantages like higher prices, lower costs from less waste, and fewer customer complaints.
Techniques for improving quality include quality assurance processes built into production, quality circles for problem-solving, and total quality management which focuses all employees on prevention of defects. Other techniques discussed are just-in-time production and benchmarking against industry best practices. Standards like ISO and Investors in People can also be implemented to improve quality levels.
Quality and customer_expectationsjg
This document discusses quality from the perspectives of customers and businesses. It defines quality as meeting customer needs and expectations within budget and on time. Poor quality can result in lost customers, wasted materials and costs of fixing or replacing defective products. Businesses aim to achieve quality through assurance and control methods across their production processes in order to satisfy customers and avoid complaints. This helps increase profits, reduce costs and improve customer satisfaction.
Economic conditions & markets 3.10
This document provides an overview of factors to consider when analyzing a business's economic and market environment. It outlines three main areas of analysis: 1) economic indicators like inflation, unemployment, exchange and interest rates, and economic growth, 2) changes in market competitive structures such as monopoly, duopoly, and oligopoly, and 3) unpredictable external influences. For each area, it defines key terms, discusses how the factors influence businesses, and provides examples. The document aims to help readers understand how to identify economic impacts on a business and how changes in markets and external events can affect an organization.
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- 1. So what is today about then?
- 3. Title: Price Elasticity of Demand aka PED
- 4. Elasticity “Elasticity is a measure of the extent to which a quantity responds to a change in a variable.”
- 5. Price Elasticity of Demand Elastic Inelastic Percentage change in Demand will be Greater than change in price. Percentage change in price will be Greater than change in demand. “The responsiveness of Demand to a change in price.”
- 6. Price Elastic Goods • Very responsive to Price changes • Many Substitutes (undifferentiated) • Products widely available
- 7. Price Inelastic Goods • Less responsive to Price changes • *** Inelastic goods are still affected by price rises! *** • Inelastic goods tend to be… – Highly branded (highly fashionable) – Innovative – In short supply – Few Substitutes – Habit Forming
- 8. Calculating P.E.D. P.E.D. = Percentage change in Demand Percentage change in Price % Change = Difference x 100 = _____ % Original
- 9. Calculating P.E.D. Value Description Explanation • 0 Perfectly Inelastic Price has no effect on demand at all • 0<1 Inelastic Price has a small effect on demand • 1 Unitary Changes are the same • 1<Infinity Elastic Demand is very sensitive to price • Infinity Perfectly Any Increase in price, kill Elastic demand
- 10. A Demand Curve of an Elastic Good Price Quantity Demanded 0 D 250 200 150 100 50 500400300200100 600
- 11. Total Revenue at £150 Price Quantity Demanded 0 D 250 200 150 100 50 500400300200100 600 600 x 150
- 12. Total Revenue at £200 Price Quantity Demanded 0 D 250 200 150 100 50 500400300200100 600 200 x 100
- 13. A Demand Curve of an Elastic Good Price Quantity Demanded 0 D 250 200 150 100 50 500400300200100 600 Revenue Lost Due To Price Increase Revenue Gained Due To Price Increase
- 14. A Demand Curve of an Inelastic Good Price Quantity Demanded 0 D 250 200 150 100 50 10080604020 120
- 15. A Demand Curve of an Inelastic Good Price Quantity Demanded 0 D 250 200 150 100 50 10080604020 120 50 x 60
- 16. A Demand Curve of an Inelastic Good Price Quantity Demanded 0 D 250 200 150 100 50 10080604020 120 250 x 40
- 17. A Demand Curve of an Inelastic Good Price Quantity Demanded 0 D 250 200 150 100 50 10080604020 120 Revenue Gained Due To Price Increase Revenue Lost Due To Price Increase
- 18. A Demand Curve of an Perfectly Inelastic GoodPrice Quantity Demanded 0 D 50 40 30 20 10 108642
- 19. A Demand Curve of an Perfectly Inelastic GoodPrice Quantity Demanded 0 D 50 40 30 20 10 108642
- 20. A Demand Curve of an Perfectly Inelastic GoodPrice Quantity Demanded 0 D 50 40 30 20 10 108642
- 21. A Demand Curve of an Perfectly Inelastic GoodPrice Quantity Demanded 0 D 50 40 30 20 10 108642 Revenue Gained Due To Price Increase
- 22. A Demand Curve of an Perfectly Elastic GoodPrice Quantity Demanded 0 D 1000 800 600 400 200 25020015010050
- 23. A Demand Curve of an Perfectly Elastic GoodPrice Quantity Demanded 0 D 1000 800 600 400 200 25020015010050 400 x 250
- 24. A Demand Curve of an Perfectly Elastic GoodPrice Quantity Demanded 0 D 1000 800 600 400 200 25020015010050 Revenue Lost Due To Price Increase
- 25. A Demand Curve for a Good with Unitary Price ElasticityPrice Quantity Demanded 0 D y x z w
- 26. A Demand Curve for a Good with Unitary Price ElasticityPrice Quantity Demanded 0 D y x z w Revenue Lost Due To Price Increase Revenue Gained Due To Price Increase
- 27. Summing Up Elastic Goods • Percentage change in Demand is greater than percentage change in price. • Highly responsive to price change • Increases in price will lead to fall in total revenue. Inelastic Goods • Percentage change in Demand is Less than percentage change in price. • Slightly responsive to price change (BUT STILL RESPONSIVE!) • Increases in price will lead to a raise in total revenue.