Target Markets


What are target markets? How would you determine the target markets for your new product or service? What are the advantages of developing specific market targets for a small business?

What are target markets? Target markets are specific populations that organizations seek to attract to their product. A specific type of market that they assume will purchase their product. In order to do this the business must first evaluate the market segments based on how these things substantial, accessible, actionable, differentiable, and measurable the markets are within the area. If I were selling a product I would have to determine whether or not it was too large or too small to effectively gain the traction needed within that market. As the owner of this product I would have to have access to the market and physically be able to sell the product within that market. We would have to think about the cost of the product and how much it would cost to market in that area. Some areas of the market are costly. Some of the advantages of developing specific market targets for a small business would include a strong reputation that serves their customer’s . You also have to find that niche within the market that attracts the customer’s to your doorstep and then you have to keep them interested in the product and show them how it will benefit your customer.

Success in the world


3) What factors might allow a brand a potentially long life? What roles might product functionality and product design have on brand success? What advantages might a small business have in developing a branding strategy over a large business? What disadvantages?

The factor is which might allow a brand a potentially longer life within the market would be quality, customer satisfaction, and the cost of the product. If the product that the company is marketing is functional and is top notch with no mistakes the success of this product would be beneficial to the company. One of the things that the business has to look for is whether or not a competitor is selling the product for a cheaper price. Although spending less does not guarantee that the product will work. The hope is to make sure that the consumer will purchase this product again from your establishment. In any business the success of a product depends on consumer satisfaction.

Something else that the business or company needs to look at during the marketing process is the brand of product must be taken into account and that there will be different outcomes to the end result of the product. Small business may have an advantage with developing strategies over the larger businesses because they have more room to experiment with the product. When a business starts out on a clean slate they are able to see what they can perfect about the product to entice customer’s to purchase their products over and over.

How do you apply the time value of money concept to make decisions in your personal life?


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You know that within the field that I am in right now I use time value of money everyday. When I go to work I make a goal for me to reach each shift on how much tips I want to make that day. It all depends on the type of service that I give to my customer’s. If I do not treat my customer’s like they are number one on my checklist, and make sure that they have everything that they possibly need for their meal I will not make any money. If I do not walk around with a smile on my face this is going to hurt my pocket as well. People do not want to come in and see their server in a bad mood or not smiling. Many people want to see an outgoing person with a great personality, and they want to make sure that their food comes out the way that the customer wants it. If I do not make the goal that I have set out then I have not provided the right service to these customer’s. The weekends are totally different because the goals are set a little higher in order for me to make the budget that I have set out. The way that I use time value of money within this daily agenda through the week my goal is to make $40.00 per shift. On the weekends I set a goal of $60.00 per shift and normally you will go over the goal. We use time value of money in everything that we do in our daily lives to set goals for our children’s education, or buying a new car, buying a house, and anything else that we do. There are many ways to use the time value of money in quantitative reasoning in business by weighing the pros and cons of everything that you do now and in the future. Even when I have my own business I will set much higher goals on the amount of money that I want to earn within that day.

Refining Broad Markets


How might you refine broad market segments into focused target markets? Discuss at least three ways that you might segment markets when developing your target markets

By refining broad market segments we would break them down into different categories. Which is refined into a more focused market that would possibly look like a family tree. I have done this with my family tree. By breaking it down in sections allows us to see the broader part of the market that we are trying to sell our product too. Which will allow the owner to see what type of customer you are. Who made the product like the manufacturer which if they were interested in your product for promotional purposes. If car owner was interested in your product for recreational use of the product. The retailer would like to use your product to make a profit within their establishment. By dividing the product even further in the broader markets we are able to see the difference in monetary departments. Many business like these want to know how big the product is and what type of incentive it has to entice customer’s to purchase the product within these broader markets.

Product Development


What is the most important thing to consider in new product development for a small business? Explain why. Is it necessary to evaluate the new product idea at each stage of the development process? Explain why or why not.

You know many of the products that I have bought over the years do not keep up with the standards of products that have been around for years. In a small business you have to make sure that the product is safe for the consumer. If the product does not meet the customer’s standards they will not endorse the product to anyone else but more than likely will give you a bad review on the product. Larger companies do not really worry about whether or not a product will pass or fail. When a company is considering developing a new product it must be sure that the product is “highly desirable, feasible, and cost-effective” (Kotler and Keller 2009). The product must catch the eye of the consumer in order for them to purchase the item. Many of the products that small businesses are coming out with now are feasible and consumer’s will purchase them. Look at the different types of cell phones and how many people purchase this product. It is feasible to the consumer and they are willing to take the risk on purchasing the product. The products must be cost effective in order for the business to make any money off of it. If customer’s are interested and it is marketed right the consumer’s will fly into the store to get that product.

Marketing


Within any business there are five stages in which a new product is adopted awareness of the product the consumer must be aware of the product that the business is marketing. Interest in the product the consumer must have an interest in the product for them to buy it. Evaluation some businesses will use this to let the consumer evaluate the product to see if it meets their approval. Trial is when the product will reach the shelves of the small business to see how well the product will sell. The last stage is the adoption of the new product onto the small business shelves. Consumer’s will not purchase products that do not meet their needs of that product. I know from experience that many of the products that I have used have not met the standards that they should because of the rush to get them on the store shelves. In my opinion the consumer will adopt and use the product or service from the time that they buy the product. Some consumer’s will wait for the product to get out all of the kinks so that the product produces more than the first batch of the product.

Dow Jones


Why is the Dow Jones Average an index? How does the Dow Jones relate to the Nikkei index? What is the relationship between an index and the inflation rate?

In reading about the Dow Jones which is an index that averages out the performance of 30 stocks within the various markets. Now each one of these 30 stocks lies in one of the country’s major industries and illustrates the changes within the stock prices and how it relates and effects the rest of the economy or stock market. Dow Jones can be used as a benchmark so that they can compare other stocks and evaluate whether or not they are doing better within the market. This also allows them to see the market trends and identify them easier. In discussing the Nikkei index which is Japan’s version of the Dow Jones Average which accounts for 225 stocks in a variety of industries unlike the 30 that the Dow Jones averages. There are indexes for just about anything in the world today and it is important to note that all indexes are not related to inflation. When we think about indexes we find that the Consumer Price index is one that identifies trends and shows if the market prices effect the dollar. Furthermore, the Fog Index which is used to make and show averages about literary works within those markets.

Advertising


Public relations within any business or ad has to appeal to the target market that the business has chosen. As a business owner you have to portray your product in such a way that will appeal to the consumer. Things that need to be taken into consideration when developing or promoting a new product is the public relations that is involved with the product and the mission of the company. I have watched a few different commercials and all of them stand behind their products or services. One of the commercials that I watched was about Gieco and insurance for your home. The man that played the part was acting like a raccoon and destroying the house to show the consumer that these things can happen without any notice and you are stuck with the bill and fixing the house. These types of commercials try to entice the consumer to purchase their insurance at a low rate. This business is showing the consumer that it is better to be covered than not covered when mahem hits. I thought that the public relations was very good and I would have to say that most of their commercials are always like this and stick in your head. Another one of the commercials that they have is a guy getting into a car accident because he was starring at the guy who was portrayed as a girl in this commercial running down the sidewalk.

Variables


What is an independent variable? What is a dependent? What is the relationship between independent and dependent variables? What is the purpose of differentiating these terms?

Independent variables are mathematical factor’s that will vary and can be manipulated by the researcher because they would want a certain outcome. A dependent variable is a mathematical factor that would change depending on the researcher’s independent variable. Throughout math we learn that x is the independent variable and y is the dependent variable. By differentiating these two terms can be used in order to find two different numbers within the equation. Throughout the workplace we use variables on a daily basis. For example the current place that I am working for just came out with some new entrée’s to offer to the customer’s. We could take one of the new entrée’s and use it as an example our Mixed Grill is delicious. This entrée would be considered the independent variable because this entrée would rely on the customer’s purchasing the entrée. The sales/revenue that is created from this entrée would be the dependent variable because it would change based on the performance and demand of the entrée. By putting two and two together I now get a better understanding on how important it is to research and gather as much information about the entrée and how it would affect the business. A manager must have a clear understanding of mathematical equations in order to make it through one day of being a manager. Just because there are programs that can do this type of math does not mean that you are always going to get the right answer without doing a little bit of research along with the numbers.

Management


In management, how important is it to learn to use mathematics to solve problems? How valuable is an MBA degree without the ability to identify and calculate the cost of a company’s capital, its return on investment, gross margin percentage, break-even point, or what percent of a population would be willing to buy its product?

Within any business the management team should be able to solve mathematical problems throughout the business. In order to determine if the business has made any type of money the management team would have to calculate the net profit of the business. It is very important to be able to solve mathematical problems and by having a MBA without the mathematics would be a waste of time. Sure many programs out their will do the math for you or the business but how accurate can that be if someone miscalculates the number’s within those programs. Mathematical equations can be used in a variety of ways within the workplace or business.

It is important to be able to solve these mathematical equations so that the business heads in the right direction. Customer’s want to be able to trust the business with their money or other valuable assets. If the customer’s do not trust the business the customer’s are certainly not going to purchase any type of products from your business. Math is used in every part of the business world especially as a manager.

I have been a manager before and some of the math problems were done on a computer but most of the work was done by the manager. By getting the weekly numbers and daily numbers depending on sales. We would have to find the payroll percent and what sales were compared to last year’s numbers.

In business you have to use equations to find the numbers for the amount of sales that you have had for the day. At my current job you have many different things that require equations to find out the percent in sales, food cost, payroll, and operating supplies. For example the food cost is determined by a 24 hour period. If you pull the food that you need for the entire day from a certain period your food cost is determined by the amount of sales that you have for the day.

Say you have for day one 29.9, Day two; 31.4, day three; 35.5, day four; 38.7, day five; 28.9, day six; 27.5, and day seven; 29.9 the food cost percent would be 31.7 for a week. By adding these numbers together and dividing by seven you get the percent of your food cost. Now, your company may be different but many of them have to be under a certain number in order to receive their bonus for that week. The company that she currently works for requires that you have a food cost below 30.0.