Demographics and demographic trends
There are various demographics that affect business. These are the many traits that can dictate buying or product preferences of consumers. Businesses identify their major clients via these various traits. Afterwards they target consumers having similar characteristics in their promotions and advertisements. Targeting clients with similar demographic traits assists in maximizing a business’ sales and profits. In spite of growing overall population, the accessibility of skilled labor is indeed wearing out, not only in advanced countries, but also in developing countries (Raducha, 2010).
Policy, law, regulations
Regulations can be perceived as implementation objects of policy statements. The general regulation comprise controls on markets entries, wages, prices, pollution effects, development approvals, employment for particular people in certain industries, the military services and forces, and standard of production for specific goods (Holt, 2014). The economics of inflicting or removing regulations involving marketing is analyzed in regulatory economics. Regulations may generate costs alongside benefits and may generate unexpected reactivity effects for instance defensive practice. Effective regulations can be analyzed as those where entire benefits surpass total costs. Whether a business is big or small, the law requires it to take reasonable steps to curb discrimination and aggravation. In small businesses where the proprietor has direct link with the staff, a written policy is sometimes unnecessary and a plain statement of your anticipations of conducts at work may suffice. There is also a need to have a procedure to take care of any complaints.
Competitors, profitability and market Share
Market share is a major pointer of market competitiveness. This implies to how well a business is doing beyond its competitors. This metric, enhanced by alterations in sales revenue, enables managers to assess both selective and primary demand in their market. This means that it assists them to evaluate not only entire market growth or decrease but also trends in consumers’ selections against competitors. In general, sales growth gotten from primary demand is not as costly and more profitable compared to that attained by seizing share from competitors. On the other hand, losses from market share can indicate dire long-term problems that necessitate tactical adjustments. Businesses with market shares lower than certain heights may not be practical. Similarly, inside a business’ product line, market share inclinations for certain products are seen as early signals of prospective opportunities of problems (Brelsford, 2014).
A perfect example of a competitive market where there are several consumers and suppliers is that of online booksellers.
...efits from adopting unfair business practices and discouraging competition are much higher than the expected penalty and punishment. With changing time, there is need to make these laws more effective and relevant.
Nevertheless, it must “defend” its current market share if not increase it, by maintaining premium quality and develop innovative products. The marketing mix strategies will effectively achieve targeted revenue and profitability in the near future.
Having a large market share can be very helpful because companies earn more money to produce more. They also create brand loyalties even if they increase their prices. However, companies who have large market shares often times do not provide a lot of innovation. These companies usually feel they don’t need to get ahead because they hold such a big share in the market. This sometimes hurts their brand because when new products enter the market with cool features, consumer are likely to be engaged and
Every company and/or organization starts and operates to achieve a single major goal, which is normally included in the company’s mission statement. Setting a goal, however, does not translate into success on its own; it is only the fist step. Understanding market segmentation is the second most important aspect of doing business. “Sellers and advertisers want to be able to determine what the potential market is for their product or service, as well as the best ways to reach potential consumers” (Terrell, 2013). Once a goal is set, an organization first must decide if it wants to operate locally, regionally, nationally, and/or internationally, as the size of the geographic coverage has a large influence on demographic coverage. It is crucial for a business to understand what it is meant by demographic coverage; it is to understand people’s age, gender, culture, social norms and beliefs, and income in a given geographical size (Grewal & Levy, 2010). Let’s take a high class and luxury bar as an example to explain the importance of these key factors. If the bar is located in an area where the average age is 60, it will be safe to assume that the business will have difficulties finding many customers. Similarly, the business will not be able to survive if it is located in an area that has a lot of Mormon or Muslim residents as drinking alcoholic beverages is prohibited by these religious practices. On the other hand, if the said bar is located in an area such as San Francisco where the average age is around 38 years old, the median income is ~$70,000, and the culture is a melting pot of many races with many beliefs and behaviors, it will most likely thrive to its full potential (city-data.com, 201...
And we will purchase capacities when plant utilisation above 90%. This will expand the business size and have a positive impact on economies of scale. Composed with High End and Size products transfer into Traditional and Low End, we have multiproduct in targeted segments. “Higher firm-level ability raises a firm 's productivity across all products, which induces a positive correlation to a firm’s intensive and extensive margin” (Bernard, Redding and Schott 2006). This means with an effective business strategy and management, businesses can boost sales of all products within the segment. With a larger product profile for Traditional and Low End, it works to generate larger market shares. Refer to Graph 4 and 5, Digby sold twice units of products than its core competitor-Baldwin by having Daze and Dixie in its Traditional segment, which drives its segment market share to double Baldwin’s. The boost in sales and market share prove the correct implication of the
Caroline and Jennifer said that ‘Market segmentation is a crucial marketing strategy. Its aim is to identify and delineate market segments or set of buyers which would then become targets for the company’s marketing plans.’ (Tynan and Drayton, 1987) There are many ways to segment the market, such as age, region, environment, psychology and wages (Hall, Jones and Raffo, 2010).
There are a range of segmentations that allows a company to target potential customers effectively.
The threat of new entrants is moderately strong. Incumbents do not strongly contest entry of newcomers, but existing industry members are consistently looking to expand their geographic reach and offer a broad product assortment. Brand awareness and customer loyalty are high and greatly important i this industry.
A key part of an organizational strategy is to identify market opportunities by finding a niche or a gap in the marketplace that they can pursue to take their company ahead of all their competitors. An organiz...
Once segments of customers have been defined, marketers need to select and evaluate which segments will be worth targeting. Cui and Choudhury (2003) define market targeting as marketing a product to a segment of customers due to the magnetism, for example size or growth, of the group. Marketers are able to select segments using undifferentiated, differentiated and concentrated marketing. By ignoring segment differences ...
Demographically we can segment the market into groups based on age, gender, family- size, income, family life cycle and occupation.
The article raises the issue of revenue growth stalls that affect even the most successful companies. The article focuses on four major causes of the crisis. The first cause is the premium-position captivity that is”the inability of a firm to respond effectively to new, low-cost competitive challenge or to a significant shift in customer valuation of product features” (p.54). The second reason is the innovation management breakdown that is”some chronic problem in managing the internal business process for updating existing product and services and creating new one” (p.56). Third reason is the premature core abandonment that means “the failure to fully exploit growth opportunities in the existing core business” and “acquisitions of growth initiatives in areas relatively distant from existing customers, products, and channels”(p.56). Finally, the fourth cause is the talent bench shortfall that is “a lack of leaders and staff with the skills and capabilities required for strategy execution” (p.58). Authors emphasize that these causes are mainly within management control since they result from “a choice about strategy or organizational design” (p.54).
Nevertheless, one of the most important constants among all of us, regardless of our differences, is that, above all, we are buyers. We use or consume on a regular basis food, clothing, shelter, transportation, education, equipment, vacations, necessities, luxuries, services, and even ideas. As consumers, we play an essential role in the health of the economy; local, national and international. The purchase decision we make affect the requirement for basic raw materials, for transportation, for production, for banking; they affect the employment of employees and the growth of resources, the successfulness of some industries and the failure of others. In order to be successful in any business and specifically in today’s dynamic and rapidly evolving marketplace, marketers need to know everything they can about consumers; what they are want, what they are think, how they are work, how they are spend their leisure time. They have to find out the personal and group influences that affect consumer decisions and how these decisions are made. In these days of ever-widening media choices, they need to not only identify their target audiences, but they have to know where and how to reach
William O. Douglas said, "Common sense often makes good law." Well that is what laws essentially are, rules and regulations that make sure common sense is followed. One could even say that laws are enforced ethics. Laws serve several roles and functions in business and society, and this paper will discuss those roles and functions.
In the business world every business has its own set of laws and regulations to follow and adhere too. Some have very few laws and others have so many it is mind numbing but, each law is set up to protect every worker, customer or person associated with that business’s location. However, some of these laws are outdated or just plain unnecessary in today’s 21st century business environment.