Hey there! Sign in to join this conversationNew here? Join for free
Turn on thread page Beta
    • Thread Starter
    Offline

    2
    ReputationRep:
    I need help with the following for tomorrow.. please help. These are the only questions that are giving me a headache. I would really appreciate any help given:



    1. Explan how a business can increase its sales yet see its market share fall. [2]
    2. Why is a market orientated business likely to be more successful than a product orientated one? [4]


    3. Manufacturer --> Wholesaler --> Retailer --> Consumer (Channel 1)
    Manufacturer -----------------------------> Consumer (Channel 2) [6]

    State and explain the advantages and disadvantages of using Channel 2 compared to Channel 1.

    Thank you.
    Offline

    1
    ReputationRep:
    (Original post by Fahad)
    I need help with the following for tomorrow.. please help. These are the only questions that are giving me a headache. I would really appreciate any help given:



    1. Explan how a business can increase its sales yet see its market share fall. [2]
    2. Why is a market orientated business likely to be more successful than a product orientated one? [4]


    3. Manufacturer --> Wholesaler --> Retailer --> Consumer (Channel 1)
    Manufacturer -----------------------------> Consumer (Channel 2) [6]

    State and explain the advantages and disadvantages of using Channel 2 compared to Channel 1.

    Thank you.
    1. Overseas business.
    2. Market led firms are ones such as fashion outlets whom cater and change to what the consumer ones, whereas product led firms, produce a product hoping that it will fit into consumer needs, you just have to develop these points.

    3. Channel two is obvious, reduced costs and brings the company closer to the consumer, allowing a more competitive nature as it allows the firm to reduce prices therefore increasing market share, or benefit from higher profit margins.
    Offline

    1
    ReputationRep:
    1. Explan how a business can increase its sales yet see its market share fall. [2]

    Competitors are increasing their sales by a higher margin than the aforementioned business.

    2. Why is a market orientated business likely to be more successful than a product orientated one? [4]

    A market oriented business spend more resources on finding out what the customers want and then making the product based on what the market wants - whereas a product oriented business simply make the product and hope that the market wants it.

    3. Manufacturer --> Wholesaler --> Retailer --> Consumer (Channel 1)
    Manufacturer -----------------------------> Consumer (Channel 2) [6]

    This question requires a bit of common sense... just think what cutting out two channels in the distribution does to finances, lapse times, price of product, amount of workers needed etc...
    Offline

    1
    ReputationRep:
    Beaten to it kinda, damn
    • Thread Starter
    Offline

    2
    ReputationRep:
    Thanks guys.. one more question which is directly from me this time. Charging lower prices than competitors can increase sales and profits. Is this always true?
    Offline

    1
    ReputationRep:
    (Original post by Fahad)
    Thanks guys.. one more question which is directly from me this time. Charging lower prices than competitors can increase sales and profits. Is this always true?
    FFS. Lower prices allow greater volumes to be sold, as you are undercutting competitors, this in turn produces more revenue to be generated. It doesn't however neccessaroly indicate that more profit is made as lowing prices where the cost price is static means lower profit margins, however the increased number of sales may offset this, and larger economies of scale may be occur.
    • Thread Starter
    Offline

    2
    ReputationRep:
    but if the business wants to increase sales without cutting prices, they can advertise the business.. is there anything the business should consider before deciding whether this is a good idea or not?
    Offline

    1
    ReputationRep:
    (Original post by Fahad)
    but if the business wants to increase sales without cutting prices, they can advertise the business.. is there anything the business should consider before deciding whether this is a good idea or not?
    Image.
 
 
 
Poll
“Yanny” or “Laurel”

The Student Room, Get Revising and Marked by Teachers are trading names of The Student Room Group Ltd.

Register Number: 04666380 (England and Wales), VAT No. 806 8067 22 Registered Office: International House, Queens Road, Brighton, BN1 3XE

Write a reply...
Reply
Hide
Reputation gems: You get these gems as you gain rep from other members for making good contributions and giving helpful advice.