<span>IT ALLOWS FOR PERSONALIZATION OF THE MESSAGE. The use of mass media advertising is attempting to reach out to everybody in the hopes that some people will be interested enough to reply to the offer or pursue additional information. There may only be one person out of a thousand that actually respond or follow up for additional information. On the other hand, direct marketing uses a specific customer base to market to thus allowing for a better connection to that person and in turn, increasing the chance that the person they are attempting to reach will actually follow up for additional information or buy whatever product is being pushed. Databases of a person's interests are created and a person's interests are what drives the marketing to that population. For example, it would be more effective to send out a debt consolidation program insert to somebody that they know has a lot of debt rather than appealing to the masses with the hopes that something sticks.</span>
Answer:
The correct answer would be Differentiation Strategy.
Explanation:
There are three generic strategies of Porter. One is Cost Leadership, other is Differentiation and the last one is Focus.
Among these strategies, Differentiation is the strategy which is used by the bank in this question. Differentiation is a strategy used by the companies to make them unique in the industry through some dimensions which are highly valued by the customers or clients of that company. For Example in this question, the bank provides the facility of transferring money in an account by just snapping a shot of check and depositing it into that account. This feature make them unique in the banking sector. So this is called the differentiation strategy.
Answer:
Legal Component (Environment)
Explanation:
Business Environment
The environment of an organisation refers to several internal and external factors or components that affect the smooth running of a business. Most times a company's internal environment like its management, suppliers, employees among others can be significantly influenced by the business.
However, the external environment exert so much influence on the organisation whereas, the organisation is limited in the influence it can exert back on the external environment.
The Economic, political, social, legal and technological environments are the <u>external components that affect the business</u>.
Looking at the question, while the business had the influence on its employee by deciding to terminate 200 factory employees, the legal external component could not be influenced. The company had to pay a fine therefore for wrongful termination of those jobs.
The legal environment is made up of legislations and laws governing the way businesses carry out their transactions and where they over step the boundary of the law, they feel the effect of their wrongdoing.
Question Completion:
We assume that the variable manufacturing cost is $55 per unit.
Answer:
The change in operating income = $60,000
Explanation:
a) Data and Calculations:
Special order = 3,000 units
Price of special order = $75 per unit
Variable cost per unit (assumed) = $55
Fixed costs = unchanged
Variable marketing and administrative costs = unchanged
The change in operating income = $60,000 (($75 - $55) * 3,000)
b) Given the above scenario and the assumed variable cost per unit of $55, the change in operating income will be a total of $60,000, which adds to the normal business of the company.