Question 21 of 25

Assess each of the "Post Marketing Concept Approaches" from the eText with regard to their suitability to individual competitive

irina [24]

Answer:

The marketing concept that is most suitable to Cost Leadership Strategy is the Production Concept.

The production concept of marketing places a strong emphasis on operations and how it can be constantly fine-tuned to deliver the required products as and when required at the quantity required and at the lowest cost possible. Minimal costs is crucial here because the market being played by the entrepreneur or the business is a growing one, most concerned about product availability and low prices than on quality.

So in order to come out on top as the leader with the lowest production cost, the business must invest in processes that help them do just that.

In this market, the quality is approximately standard across board. This means people worry less about quality and are focused on getting the same quality at the lowest price possible. In a perfect market, people who do large purchases will gravitate to the business with the lowest price even if the difference in the price of that of other producers are only a small margin.

Explanation:

The product concept marketing approach focuses on delivering the most exquisite product in the market. This an example of a company/companies in the mobile telecommunications market that do this are: Apple and Samsung.

In business, the trade-offs are usually between quality, cost and time.

It speaks to the fact that the higher the quality, the higher the cost. This Product concept as a marketing strategy rests on the premise that there are enough potential customer for the product and that existing ones are too loyal to shift their focus because of the added cost required for their products;

The selling concept: the premise for this concept derives from the assumption that the degree to which people purchase a product is directly proportional to the intensity of selling efforts. A company that adopts this concept will most likely have a very huge advertising budget and a large sales team/outlets.

The Marketing Concept: This concept takes root in the notion that for a business to succeed, it must outdo its rivals with regard to value delivery. Companies that adopt this approach seem to combine all the other concepts into one holistic marketing strategy because the focus is on gaining the most competitive advantage.

The Societal Marketing Concept:

As consumers grew more aware of the impacts of business activities on the environment and society, buying decisions started to be influenced by whether or not the company was being ethical. Ethical issues under consideration were:

a) does the production process of the company impact the environment negatively?

b) is the company involved in any social development project?

c) are there any illegal and or unethical issues on their supply chain? such as child labor, illegal acquisition of raw material, human trafficking etc.

Several global brands in the clothing business for instance, have recently been put in the spotlight for tolerating child slavery in one of the countries of origin for their raw material. This modern-day concept has become very important for most if not all multinational companies.

Cheers

5 0

3 years ago

Global Motors is a U.S. corporation that purchases automobiles from European manufacturers for distribution in the United States

Alina [70]

Answer:

Global

a) General Journal

1. Purchase of automobiles

Date Description Debit Credit

Nov. 12 Automobiles $2,572,000

Accounts Payable (Stockholm Motors) $2,572,000

To record the purchase of automobiles at $0.1286 per krona, terms n/60.

Date Description Debit Credit

Dec. 31: Foreign Exchange Loss/Gain $4,000

Accounts Payable (Stockholm Motors) $4,000

To recognize the current exchange rate at $0.1288 per krona.

Date Description Debit Credit

Jan. 11: Accounts Payable (Stockholm Motors) $2,566,800

Foreign Exchange Gain $9,200

Cash Account $2,557,600

To record full settlement of account.

b) Computation of the exchange rate of the krona in U.S. dollars on January 11:

Exchange rate = $2,566,800/ Sk20,000,000 = $0.12834

c) A hedging technique that Global might have used to protect itself from the possibility of losses resulting from a significant increase in the exchange rate for the krona is to buy an options or forwards contract in an underlying asset in Sweden equivalent to Sk20,000,000.

Explanation:

According to investopedia.com, "Hedging is a risk management strategy employed to offset losses in investments by taking an opposite position in a related asset." A hedged asset can also reduce potential profits. If Global had hedged the liability to Stockholm Motors, it would not have profited from the resulting gain it obtained at the end of the transaction.

7 0

4 years ago

The Burdell Wheel and Tire Company assembles tires to wheel rims for use on cars during manufacture of vehicles by the automotiv

alexgriva [62]

Answer:

LEXINGTON TIRE provides a higher unit cost but, a lower inventory cost overall considering the ordering, holding cost, and administrative cost generated.

The company should pick LEXINGTON TIRE

Explanation:

LEXINGTON TIRE

SHIPPING QUANTITY PER SHIPMENT 2,000

SHIPPING COSTS 18,000

PRICE per TIRE 30

INVENTORY HOLD COSTS (H) 6.00

LEAD TIME (DAYS) 6

ADMIN. COSTS 15,000

Total cost: 25,000 / 2,000 = 12.5 per year

shipment cost: $18,000 per shipment x 12.5 per year = 225,000

Materials cost:

25,000 tires x $30 per tire = 750,000

Holding cost:

lead time + average inventory

6 days x 100 tires + 2,000 tires / 2 = 1,600 tires on average

times $6 holding cost = 9,600

Total cost: Inventory 225,000 + 750,000 materials + 9,600 holding + 15,000 admin

total 999,600

IRMO AUTO

SHIPPING QUANTITY PER SHIPMENT 1,000

SHIPPING COSTS 25,000

PRICE per TIRE 29(p)

INVENTORY HOLD COSTS (H) 5.80

LEAD TIME (DAYS) 4

ADMIN. COSTS 18,000

Shipping per year: 25,000 / 1,000 = 25

Ordering cost: 25 shipment x 25,000 = 625,000

Materials:

25,000 x 29 = 725,000

Holding:

lead time + average inventory

4 days x 100 + 1000/2 = 900 units on inventory throughout the year

Holding cost: 900 x $5.80 = 5,220

Total Inventory cost:

Ordering 625,000 + materials 725,000 + 5,220 holding + 18,000 admin

total = 1,355,220

7 0

3 years ago

The two stickers that must be affixed to your windshield are the __________.

aliya0001 [1]

The two stickers that must be affixed to your windshield are the Moroney sticker and a supplemental dealer sticker. The moroney sticker carries information about the car's price and its features.

5 0

4 years ago

A company with technical support staff in another country mostly benefits from changes to:_______.

ANEK [815]

Answer:

a. regulations.

Explanation:

A company with technical support staff in another country mostly benefits from changes to regulations because regulation and compliance requirements affects businesses particularly during the phase of startup. For example developed economies have very stringent data protection laws which could be expensive to implement but you can choose a developing country with lax data protection laws to avoid certain expenses.

4 0

4 years ago

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