individual assignment mkt101 fa23 explain how the internet has transformed the way in which we do business today

Demand: The market demand for a product or service has a significant impact onpricing.. If the demand for a product is high, a company might be able to charge higherprices.. Explain the

Individual Assignment – MKT101 - FA23

Class: FIN1803

Student name: Bach Long Hung

Student code: HE170581

Class: FIN1803

1 Explain how the Internet has transformed the way in which we

do business today.

The Internet has revolutionized the way we do business in many ways Here are some key transformations:

1 Increased Connectivity: Businesses can now operate on a global scale With the click of a mouse, companies can instantly communicate with customers and suppliers worldwide This has made it easier for small businesses to compete with larger firms

2 Online Marketing: Online marketing has created new opportunities for businesses of all sizes to reach a global audience It’s enabled companies to target their advertising more precisely than ever before Businesses can generate more leads and sales with less effort and expense

3 More Data Available: With powerful tools like big data and data analytics, businesses have gained previously unattainable insights

4 Ability to Communicate: A business’ ability to communicate with its employees, customers, vendors, and associates changed dramatically when the internet yielded new communication tools For example, an owner on a business trip can stay in real-time contact with their office through a live chat or messaging apps or a video meeting, sharing important documents with anyone from any location in the world

change in how products and services are delivered, traditional businesses must implement innovative ways of doing business One great place to start is by leveraging new methods of receiving payments, executing supply and value chain processes and utilizing advertising and communication channels

2 Marketing departments are organized in several ways Compare the most common forms of marketing organizations.

Marketing departments can be organized in several ways, each with its own advantages and considerations Here are some of the most common forms:

1 Functional Structure: In a functional structure, the marketing team is organized by their specific skills and expertise For example, a company like Microsoft might have separate teams for content marketing, SEO, social media, and public relations Each team focuses on their area of expertise to contribute to the overall marketing strategy

2 Product-based Structure: In a product-based structure, the marketing team is organized around specific products or services For example, Apple Inc has separate marketing teams for each of its main product lines: iPhone, iPad, Mac, Apple Watch, and services Each team is responsible for the end-to-end marketing of their

work on cross-functional projects For example, Philips uses a matrix structure where employees report to both a product manager and a geographic manager This fosters collaboration but can also lead to confusion due to dual reporting lines

4 Geographical Structure: In a geographical structure, the marketing team is organized by geographic regions For example, Starbucks organizes its operations into various geographic divisions such as Starbucks US, Starbucks China, Starbucks EMEA (Europe, Middle East, and Africa), etc Each division is responsible for the marketing activities in their respective region

5 Market-based Structure: In a market-based structure, the marketing team is segmented by customer segments or industries For example, a B2B software company might have separate marketing teams for each industry it serves (e.g., healthcare, finance, education) to better cater to the unique needs and characteristics

of each industry

6 Network Structure: In a network structure, the company outsources certain functions to external partners or agencies For example, H&M outsources its production and processing of goods to different countries in Asia and South East Asia This allows H&M to focus on its core competencies such as design and retail while leveraging the expertise of its network partners for production

7 Linear Structure: A linear structure follows a clear hierarchy with each marketer having a defined role and responsibility For example, in a small marketing agency, you might have an organizational chart that starts with the CEO at the top, followed

by the CMO, followed by department heads (e.g., Head of SEO, Head of Content),

3 Briefly compare the three different types of research approaches for gathering primary data.

The three main types of research approaches for gathering primary data are:

1 Observations: This approach involves systematically recording the behavior or activities of individuals or groups in a natural or controlled setting This type of data collection is often used in fields such as anthropology, sociology, and psychology For example, a researcher studying the impact of a new public policy might observe how people behave before and after the policy is implemented

2 Surveys: Surveys involve asking a set of standardized questions to a sample of individuals or organizations, usually through a questionnaire or an online form They are one of the most common types of primary data collection methods For instance, a company might conduct a customer satisfaction survey to understand how their customers perceive their products or services

3 Experiments: Experiments involve manipulating one or more variables and observing the effects on an outcome of interest1 They are commonly used in scientific research

to establish cause-and-effect relationships For example, a pharmaceutical company

4 Identify the product characteristics that influence the rate

of adoption Explain how each characteristic affects the rate

of adoption.

The rate of adoption of a product or service is influenced by certain product and service characteristics Here are the five factors that can impact the diffusion process and the rate of adoption:

1 Relative Advantage: This refers to the degree to which an innovation appears superior to existing products The greater the perceived relative advantage, the sooner the product will be adopted For example, HDTV offers substantially improved picture quality, which speeded up its rate of adoption

2 Compatibility: Compatibility refers to a product’s ability to fit into a consumer’s values, needs, and experiences Consumers will only slowly start adopting a product if it is not compatible with their mindset For instance, in the early years, HDTV was not yet compatible with programming and broadcasting systems, which slowed adoption

3 Complexity: Consumers are less likely to adopt your product if they find it difficult to use or understand The degree to which an innovation is difficult to understand or to use is also one of the product characteristics that influence the adoption rate HDTVs are not very complex Therefore, as more programming has become available and prices have fallen, the rate of HDTV adoption is increasing

which an innovation may be tried on a limited basis Early HDTVs and HD cable and satellite systems were very expensive, which slowed the rate of adoption As prices fall, adoption rates increase

5 Observability: Consumers are more likely to adopt a product if they can see others using it Even if all other product characteristics that influence the adoption rate are favorable, communicability can still slow down adoption significantly

Other factors that influence the rate of adoption include the initial and ongoing costs, risk and uncertainty, and social approval

5 When setting prices, the company must consider its external environment Describe four parts of the external environment and how they affect businesses.

The external environment of a company consists of various factors that can influence its business operations and pricing decisions Here are four key parts of the external environment:

1 Demand: The market demand for a product or service has a significant impact on pricing If the demand for a product is high, a company might be able to charge higher prices Conversely, if the demand is low, the company might have to lower its prices to

are many competitors offering similar products or services, a company might have to price its offerings competitively to attract customers On the other hand, if the company has a unique product or service with few direct competitors, it might be able to charge higher prices

3 Suppliers: The cost and availability of raw materials and other goods from suppliers can significantly affect the price of a product If the cost of raw materials increases, a company might have to increase its prices to maintain its profit margins Similarly, if a key supplier is unable to deliver essential goods, it could disrupt production and affect pricing

4 Economic Conditions: The state of the economy can also affect pricing decisions In

a strong economy, consumers might be willing to pay higher prices for goods and services However, in a weak economy, consumers might cut back on spending, forcing companies to lower their prices

These factors are interconnected and can influence each other For example, economic conditions can affect consumer demand and competition levels, which in turn can influence suppliers’ pricing and availability

6 How have relationships between customers and suppliers changed in recent years?

significant changes Here are some key trends:

1 Increased Collaboration: Companies are increasingly working together with their suppliers to ensure the best possible product or service For instance, Unilever and Novozyme, a major supplier of enzymes, jointly developed new enzyme solutions Unilever brought the market knowledge of the stains and materials most in need of new products, and Novozyme brought the reagent expertise

2 Impact of Global Events: The COVID-19 pandemic has transformed the approach of individuals and businesses to technology, production, and community Businesses turned to curbside pickup, contactless delivery, and e-commerce to continue to serve customers They reevaluated their operations to support customers, rather than boost their bottom line

3 Changes in Supply Chains: The recent pandemic has affected every part of the value chain, from raw material sourcing to the end customer It has tested the resilience of many companies across the globe As a result, many businesses are looking to build resilience into their supply chains

4 Technological Advancements: The rapid acceleration of technology has transformed lives and businesses in a short span of time This has led to unprecedented usage of technology and capability of collaboration along global supply chains

5 Market Conditions: Rising commodity prices, tight credit, natural disasters impacting supply chains have all contributed to challenges for suppliers For example, Stellantis

contract terms and conditions.

7 Explain the concept of derived demand, giving an example

of a product that has derived demand.

Derived demand is an economic term that refers to the demand for a good or service that results from the demand for a different, or related, good or service It’s related to the demand for factors of production or intermediate goods that are needed to produce the final good or service

For example, the rise in demand for mobile phones and other mobile devices has led to a strong rise in demand for lithium Lithium is used in the batteries of these devices, so as more and more people want mobile phones, the demand for lithium increases This is because lithium is an intermediate good that’s needed to produce the final product (the mobile phone), so its demand is derived from the demand for mobile phones

here are more examples of derived demand:

1 Demand for Land: The demand for land is often derived from the demand for the goods that can be produced from the land For example, if there’s a high demand for organic produce, this could increase the demand for farmland where organic crops can be grown

goods and services that workers can produce For example, if there’s a high demand for construction, this could increase the demand for construction workers

3 Demand for Capital: The demand for capital, such as machinery and equipment, is derived from the demand for the goods that can be produced using that capital For example, if there’s a high demand for cars, this could increase the demand for the machinery used to manufacture cars

4 Demand for Raw Materials: The demand for raw materials is derived from the demand for the goods that can be produced from those materials For example, if there’s a high demand for wooden furniture, this could increase the demand for lumber

5 Demand for Processed Materials: The demand for processed materials is derived from the demand for the goods that can be produced from those materials For example, if there’s a high demand for large-screen televisions, this could increase the demand for home theater products like audio speakers, amplifiers, and installation services

6 Demand for Tires: The demand for tires is derived from the demand for cars When more people buy cars, more tires are needed

8 What do industrial supplies and consumer convenience

products have in common? How do they differ?

Industrial supplies and consumer convenience products have some similarities and differences:

Commonalities:

Both industrial supplies and consumer convenience products are purchased to fulfill specific needs

Both types of products are usually purchased with a minimum of effort or comparison

Differences:

Purpose: Industrial supplies are purchased for further use in conducting a business, while convenience products are purchased by final consumers for personal consumption

resale On the other hand, consumer goods are ready for the consumption and satisfaction of human wants, such as clothing or food

Nature of Goods: While industrial goods are made up of machinery, plants, and raw materials, consumer goods are commodities purchased by a buyer like clothing, food, and drinks

Sales Channels: Consumer goods are sold directly to consumers, while industrial goods are often sold through B2B (Business to Business) channels

Price & Lifespan: Consumer goods are generally less expensive and have a shorter lifespan than industrial goods

Deadline for submission: Oct 25, 2023

Language: English