Blog Post for Dec 11
Sadly, Friday was our last marketing class. Overall, I really enjoyed the class. I LOVED the use of the Shark Tank videos (I know I talk about it in every blog post, but they really helped me grasp the concepts. I liked being able to go back and watch a video, and think "Oh that's right, this video is connected with this concept because..."). I also LOVED the simulation; it was fun, interesting, interactive and different from lectures.
This class actually got me very interested in marketing; even though I'm not going to get the best grade in the class :( =, I'm thinking about taking another marketing class in the future because it really fascinates me.
I also liked presenting our simulations to the class, I was also able to learn a lot through what other groups did, and I liked showing off our $30.89 :)!
Sunday, December 13, 2015
Blog Post for Dec 10
Blog Post for Dec 10
Thursday was easily one of the best classes in the entire marketing semester (three week semester, that is). Thursday was a class full of anxiety, stress, depression and unbelievable happiness. Thursday is the day that Jonny, Ryan and I got a stock price of $30.89!! I was actually so excited that we got such a high stock price, that I called my mom and told her. So exciting! On Thursday, we did 3 more periods, spending probably twice the amount of time on each period than every other group did. As overwhelming as it was, we were actually having a fun time doing it. Over the periods, we found out that we need to even out the amount of people we have in our sales force, maximize shelf space, spend less money on promoting and advertising Allround, and spend more on advertising and promoting Allright (with Prof. Spotts' help, of course), keep the MSRP the same, and so much more. We learned that the price quality pricing strategy worked the best, as long as we prove that the high cost is a fair cost for the benefits.
I also really liked the idea of splitting us up using the whiteboards because the whiteboards were crucial, at least for our group, especially during the last few periods. We used up all three of the whiteboards, writing down our ideas, what we think would work, what we think wouldn't work, everything, and I think it overall helped us because we were able to look back and see what we wrote down and work off of it.
I still find it hilarious how we screamed when our stock price increased by $10 for the last period (our bad!); but it was awesome. We really got into the simulation, and I think that is what helped us grasp the concepts a little better.
Overall, I really enjoyed the simulation; I was able to learn so much through it, and it was extremely enjoyable.
I also really liked the idea of splitting us up using the whiteboards because the whiteboards were crucial, at least for our group, especially during the last few periods. We used up all three of the whiteboards, writing down our ideas, what we think would work, what we think wouldn't work, everything, and I think it overall helped us because we were able to look back and see what we wrote down and work off of it.
I still find it hilarious how we screamed when our stock price increased by $10 for the last period (our bad!); but it was awesome. We really got into the simulation, and I think that is what helped us grasp the concepts a little better.
Overall, I really enjoyed the simulation; I was able to learn so much through it, and it was extremely enjoyable.
Blog Post for Dec 9
Blog Post for Dec 9
During Wednesday's class, we started to work on the Market Share simulation. I was grouped with Jonny and Ryan, and in the end, I don't think I could've been put in a better group. The first day using the simulation, we spent most of the time trying to figure out how to work the site, and trying to create a n underlying plan to increase our stock price. On Wednesday, we worked on our periods, having mini heart attacks and celebratory yells every time we advanced to the next period. We put so much time and effort into the simulation, listing specific details for each aspect of the simulation, advertising, sales force, promotion, and the special portion.
From the start, the simulation was amazingly helpful in connecting the concepts to real life situations; it's amazing the difference in the knowledge you get from sitting through a lecture to the knowledge you get after applying it to real life situations. Being able to own our own company, and make every single little decision having to do with the company was so overwhelming, but also so fun and so interesting. I highly recommend using the simulations for all marketing classes, because it really helps us connect the concepts and learn to apply them.
For future SBC marketing classes, we suggested using the simulation throughout the three week semester, because it was so helpful and enjoyable.
During Wednesday's class, we started to work on the Market Share simulation. I was grouped with Jonny and Ryan, and in the end, I don't think I could've been put in a better group. The first day using the simulation, we spent most of the time trying to figure out how to work the site, and trying to create a n underlying plan to increase our stock price. On Wednesday, we worked on our periods, having mini heart attacks and celebratory yells every time we advanced to the next period. We put so much time and effort into the simulation, listing specific details for each aspect of the simulation, advertising, sales force, promotion, and the special portion.
From the start, the simulation was amazingly helpful in connecting the concepts to real life situations; it's amazing the difference in the knowledge you get from sitting through a lecture to the knowledge you get after applying it to real life situations. Being able to own our own company, and make every single little decision having to do with the company was so overwhelming, but also so fun and so interesting. I highly recommend using the simulations for all marketing classes, because it really helps us connect the concepts and learn to apply them.
For future SBC marketing classes, we suggested using the simulation throughout the three week semester, because it was so helpful and enjoyable.
Tuesday, December 8, 2015
Blog Post for Dec 8
Blog Post for Dec. 8
Today in class we went over the Market Share simulation. We went over how to maneuver through it, looking at all of the different aspects of it. We also went over how to change different aspects of it and advance to the next period, and how to look at the information and see what changed and see what information stayed the same. I actually really like the idea of the simulation; I like how the user can change different pieces of data, such as the pricing, advertising, promotion, point of purchase, etc., over different periods, and then be able to look at the changes. We can look at whether or not their unit sales, net income, market share, consumer satisfaction and so much more, increased or decreased.
Along with learning about the simulation, we also went over the different analysis and calculations. For example, we went over how to break even in costs (SP per unit - VC per unit), marketing budget breakeven (total fixed costs +total marketing expenses / SP per unit - VC per unit), and break even in sales (break even unit sales x selling price per unit).
We also went over margin calculations - how to get the MSRP (manufacturers suggested retail price), the price to channel, the $ margin and % margin.
The worksheet was actually extremely helpful in doing the calculations because it was a step by step process that they walked you through, explaining every step and every calculation.
Overall, this was a very interesting and fun class. I liked being able to play around with the numbers and see how one little difference could change all of the data. It was also helpful to go over the breakeven calculations and margin calculations.
Today in class we went over the Market Share simulation. We went over how to maneuver through it, looking at all of the different aspects of it. We also went over how to change different aspects of it and advance to the next period, and how to look at the information and see what changed and see what information stayed the same. I actually really like the idea of the simulation; I like how the user can change different pieces of data, such as the pricing, advertising, promotion, point of purchase, etc., over different periods, and then be able to look at the changes. We can look at whether or not their unit sales, net income, market share, consumer satisfaction and so much more, increased or decreased.
Along with learning about the simulation, we also went over the different analysis and calculations. For example, we went over how to break even in costs (SP per unit - VC per unit), marketing budget breakeven (total fixed costs +total marketing expenses / SP per unit - VC per unit), and break even in sales (break even unit sales x selling price per unit).
We also went over margin calculations - how to get the MSRP (manufacturers suggested retail price), the price to channel, the $ margin and % margin.
The worksheet was actually extremely helpful in doing the calculations because it was a step by step process that they walked you through, explaining every step and every calculation.
Overall, this was a very interesting and fun class. I liked being able to play around with the numbers and see how one little difference could change all of the data. It was also helpful to go over the breakeven calculations and margin calculations.
Monday, December 7, 2015
Blog Post for Dec. 3
Blog Post for Dec. 3
Thursdays class was a little different than the past classes because we went over questions that would be on the exam, which was super helpful. I like the fact that we received example exam questions because they really helped me make my study guide, and it was very useful that we not only learned the concepts, but were able to connect them to real life examples.
In class we talked about the emotional benefits ladder, positioning statements, and fad v. fashion v. styles graphs.
One of the most interesting points that we talked about in class on Thursday was the emotional benefits ladder. We learned that the emotional benefits ladder goes as follows - emotional benefits, rational benefits, brand features and target and insights. Even though I wasn't able to write down all of the notes from the prezi, I was able to find the picture you used in the prezi to help me better understand and grasp the concept. The bottom rung is target and insights, where companies define their target markets and figure out their enemies and insights. The second rung is brand features, or product features. This is where companies look at their product strengths unique offerings and differences from other products. The next rung is rational benefits which is where companies find out what consumers get. The fourth rung is the emotional benefits rung, which is where companies ask how it makes them (the consumers) feel.
We also talked about positioning statements. A positioning statement is a statement explaining why a product is better than other products and its competitors. A positioning statement is a cookie cutter statement set up like : "[This product] is the best among all [market] for [target market] because [why it is the bet product]." A positioning statement that my group and I put together was "Airpod is the best among all urban cars for urban dwellers because it has the lowest environmental impact for the lowest price."
We also talked about the fad v. styles v. fashion graphs. I found this to be very interesting because I had never really thought about fashions, fads and styles in regards to graphs and how they affect their channels. A fad is when a product is popular for a short amount of time, so the desire increases sharply when it first comes out, then sharply goes down and stays down. An example of a fad is Beats headphones. Those were much desired by a lot of kids, teenagers and even adults, but are now collecting dust on the shelves. A fashion is a product that gets popular slowly, and stays popular for a longer time than a fad, then decreases slowly. An example of fashionable product is something that is shown on a show like "Keeping Up With the Kardashians". Once one of the Kardashians or Jenners wears a pair of clothing/jewelry/shoes, that product sells a lot more for a small while, then eventually the desire for it goes down as another fashionable product comes out. Lastly, a style is a product where the desire for it increases slowly, like the fashion product, then decreases a little, then increases and so on. An example of a style is winter coats and bathing suits, because they are popular during their designated seasons, but hte desire goes down when they're out of season.
Thursdays class was a little different than the past classes because we went over questions that would be on the exam, which was super helpful. I like the fact that we received example exam questions because they really helped me make my study guide, and it was very useful that we not only learned the concepts, but were able to connect them to real life examples.
In class we talked about the emotional benefits ladder, positioning statements, and fad v. fashion v. styles graphs.
One of the most interesting points that we talked about in class on Thursday was the emotional benefits ladder. We learned that the emotional benefits ladder goes as follows - emotional benefits, rational benefits, brand features and target and insights. Even though I wasn't able to write down all of the notes from the prezi, I was able to find the picture you used in the prezi to help me better understand and grasp the concept. The bottom rung is target and insights, where companies define their target markets and figure out their enemies and insights. The second rung is brand features, or product features. This is where companies look at their product strengths unique offerings and differences from other products. The next rung is rational benefits which is where companies find out what consumers get. The fourth rung is the emotional benefits rung, which is where companies ask how it makes them (the consumers) feel.
We also talked about positioning statements. A positioning statement is a statement explaining why a product is better than other products and its competitors. A positioning statement is a cookie cutter statement set up like : "[This product] is the best among all [market] for [target market] because [why it is the bet product]." A positioning statement that my group and I put together was "Airpod is the best among all urban cars for urban dwellers because it has the lowest environmental impact for the lowest price."
We also talked about the fad v. styles v. fashion graphs. I found this to be very interesting because I had never really thought about fashions, fads and styles in regards to graphs and how they affect their channels. A fad is when a product is popular for a short amount of time, so the desire increases sharply when it first comes out, then sharply goes down and stays down. An example of a fad is Beats headphones. Those were much desired by a lot of kids, teenagers and even adults, but are now collecting dust on the shelves. A fashion is a product that gets popular slowly, and stays popular for a longer time than a fad, then decreases slowly. An example of fashionable product is something that is shown on a show like "Keeping Up With the Kardashians". Once one of the Kardashians or Jenners wears a pair of clothing/jewelry/shoes, that product sells a lot more for a small while, then eventually the desire for it goes down as another fashionable product comes out. Lastly, a style is a product where the desire for it increases slowly, like the fashion product, then decreases a little, then increases and so on. An example of a style is winter coats and bathing suits, because they are popular during their designated seasons, but hte desire goes down when they're out of season.
Wednesday, December 2, 2015
Blog Post for Dec 2
Blog Post for Dec 2
Today's class was much like our other classes except I brought breakfast, which was an awesome idea, and I presented Beatbox Wine, which was interesting to research and learn about.
A few of the interesting things that we talked about in class were new buy v re-buy, the breakeven graph, and the ethical theories.
I'm pretty sure we talked about new buy and re-buy before in class, but as I said in yesterdays post, writing about it and recapping on it really helps me grasp and remember it. So, new buy is when a company or business is buying the product for the first time. An example of this could be a company buying any product or service that they have never bought before. There are two types of rebuy, modified rebuy and straight rebuy. Modified rebuy is when the purchaser in the situation wants some type of change in the original good or service. A example of this is if a company would like to buy a product or service a second or third time but want the price or quality etc., to change. A straight rebuy is when the purchaser reorders a product or service and doesn't look for new information or changes.
We also talked about the breakeven graph, which is shown below. This graph shows the breakeven for units (bottom axis) and breakeven for price (left axis) To get the breakeven units, you divide the fixed costs by the price-cost. To get the breakeven price, you multiply the breakeven units by price. The place where the point should be on the graph is where the sales revenue and total cost lines intersect. The fixed cost line is always a straight horizontal line, the total cost line is always diagonal but starting at the fixed cost starting point, and the sales revenue line starts at (0,0) and goes up. The region between the sales revenue and the total cost is the profit region, and the region across from that is the loss region. The region between total cost and fixed cost is the variable cost region.
A few interesting things that we didn't talk about in class are open ended questions (161), virtual shopping (a personal favorite), and the advantages of internet surveys (167).
An open ended question is a basic type of question usually located on questionnaires that encourages an answer phrased any was the interviewee wants it to be. The other types of questions usually on questionnaires are close ended questions, which is an interview question asking the respondent to choose an answer from a list of given responses, and scaled response question, which is a type of close ended question that is designed to measure the intensity of the respondents answer. I thought these were interesting concepts because we just finished learning about them in my communications class, and out assignment was to interview someone (I interviewed my roommate) asking them open questions (such as what do you want to do when you're older), closed questions (such as do you like vanilla ice cream), probing questions (such as why do you want to have that specific job when you're older), etc. However, we were not required to ask scaled response questions, so that was definitely a new one to learn about.
Virtual shopping is an extremely poplar way of shopping these days, especially on Cyber Monday. On most sites, you can add items to your cart or to your wish list, which other people can access; you can rotate the product or look at different pictures showing all angles of it; and much more. Virtual shopping has many advantages including duplicating the cluttered market of an actual market, researchers can set up and alter tests quickly, production costs are low and the simulation is very flexible. Virtual shopping is growing each year, and according to the US Department of Agriculture, 45,000 new packaged goods are introduced to supermarkets. Now, other companies are experimenting with virtual shopping, such as telecom, aviation, fast food and more.
Internet surveys are becoming more and more popular and this is the result of the many advantages that come with them. For example, one advantage is the rapid development and real time reporting. Internet surveys are able to broadcast to thousands of people at a time, allow simultaneous completions of the survey by multiple people, and the results can be tabulated and posted so clients can get their results in less time. Another advantage is dramatically reduced costs, because the internet can cut costs from 25-40% and provide results much quicker than paper surveys. Another advantage is that they can personalize questions and data, making the questions more relevant to the respondent. Another advantage is the improved respondent participation, because the surveys can be taken at the respondents convenience, are more stimulating and engaging, and take half as long to complete. Another advantage is the contact with the hard-to-reach aspect, because it makes it easier to get in contact with the most difficult, yet most surveyed, people, such as doctors.
Today's class was much like our other classes except I brought breakfast, which was an awesome idea, and I presented Beatbox Wine, which was interesting to research and learn about.
A few of the interesting things that we talked about in class were new buy v re-buy, the breakeven graph, and the ethical theories.
I'm pretty sure we talked about new buy and re-buy before in class, but as I said in yesterdays post, writing about it and recapping on it really helps me grasp and remember it. So, new buy is when a company or business is buying the product for the first time. An example of this could be a company buying any product or service that they have never bought before. There are two types of rebuy, modified rebuy and straight rebuy. Modified rebuy is when the purchaser in the situation wants some type of change in the original good or service. A example of this is if a company would like to buy a product or service a second or third time but want the price or quality etc., to change. A straight rebuy is when the purchaser reorders a product or service and doesn't look for new information or changes.
We also talked about the breakeven graph, which is shown below. This graph shows the breakeven for units (bottom axis) and breakeven for price (left axis) To get the breakeven units, you divide the fixed costs by the price-cost. To get the breakeven price, you multiply the breakeven units by price. The place where the point should be on the graph is where the sales revenue and total cost lines intersect. The fixed cost line is always a straight horizontal line, the total cost line is always diagonal but starting at the fixed cost starting point, and the sales revenue line starts at (0,0) and goes up. The region between the sales revenue and the total cost is the profit region, and the region across from that is the loss region. The region between total cost and fixed cost is the variable cost region.
We also talked about the different ethical theories and applied them to the shark tank video. There are five different ethical theories that're talked about in the book, and those include Deontology, Utilitarianism, Casuist, Moral Relativism, and Virtue Ethics. The Deontology theory states that people need to adhere to their personal duties and obligations when analyzing ethical dilemmas, because upholding one's personal duty is what is considered ethically correct. An example of a Deontologist is someone who always keeps their promises to a friend or family member. The next theory is the Utilitarianism theory, which we learned about in our business ethics class. This theory states that one can predict the consequences of an action, and the choice that has the greatest benefit on the most people is the most ethical action or choice. An example of a Utilitarian is someone who wants to do the best for the most people. The next theory is the Casuist theory, which compares current ethical dilemmas to examples of similar ethical dilemmas and looks at the outcomes, which allows a person to choose the best possible decision according to others experiences. An example of this theory was the video we watched today. The CEO if the medication wanted it to be a stimulant like adderall, and hopes for similar outcomes as adderall, without testing it first. Another ethical dilemma is the Moral Relativism, which states that the truth depends on the individuals and groups holding them. An example of a Moral Relativist is someone who steals food for his starving family. I remember learning about these in business ethics and psychology, and I find these kind of things fascinating!
A few interesting things that we didn't talk about in class are open ended questions (161), virtual shopping (a personal favorite), and the advantages of internet surveys (167).
An open ended question is a basic type of question usually located on questionnaires that encourages an answer phrased any was the interviewee wants it to be. The other types of questions usually on questionnaires are close ended questions, which is an interview question asking the respondent to choose an answer from a list of given responses, and scaled response question, which is a type of close ended question that is designed to measure the intensity of the respondents answer. I thought these were interesting concepts because we just finished learning about them in my communications class, and out assignment was to interview someone (I interviewed my roommate) asking them open questions (such as what do you want to do when you're older), closed questions (such as do you like vanilla ice cream), probing questions (such as why do you want to have that specific job when you're older), etc. However, we were not required to ask scaled response questions, so that was definitely a new one to learn about.
Virtual shopping is an extremely poplar way of shopping these days, especially on Cyber Monday. On most sites, you can add items to your cart or to your wish list, which other people can access; you can rotate the product or look at different pictures showing all angles of it; and much more. Virtual shopping has many advantages including duplicating the cluttered market of an actual market, researchers can set up and alter tests quickly, production costs are low and the simulation is very flexible. Virtual shopping is growing each year, and according to the US Department of Agriculture, 45,000 new packaged goods are introduced to supermarkets. Now, other companies are experimenting with virtual shopping, such as telecom, aviation, fast food and more.
Internet surveys are becoming more and more popular and this is the result of the many advantages that come with them. For example, one advantage is the rapid development and real time reporting. Internet surveys are able to broadcast to thousands of people at a time, allow simultaneous completions of the survey by multiple people, and the results can be tabulated and posted so clients can get their results in less time. Another advantage is dramatically reduced costs, because the internet can cut costs from 25-40% and provide results much quicker than paper surveys. Another advantage is that they can personalize questions and data, making the questions more relevant to the respondent. Another advantage is the improved respondent participation, because the surveys can be taken at the respondents convenience, are more stimulating and engaging, and take half as long to complete. Another advantage is the contact with the hard-to-reach aspect, because it makes it easier to get in contact with the most difficult, yet most surveyed, people, such as doctors.
Tuesday, December 1, 2015
Blog Post for Dec 1
Blog Post for Dec 1
CH 3 & 5
Today's class was much like the other classes, expect we didn't watch as many Shark Tank videos as we usually do! :( However, we did watch Beatbox Beverages and I'm really excited to do the update on this company! We also spent a lot of time on the Beatbox beverages price and channeling analysis which I found to be difficult to follow, but I kind of understand it (I talk about it m,ore below).
A few of the interesting things that we talked about in class today were the channel conflicts (which we've talked about before, but it was helpful to get a quick review on them) and Beatbox Beverages price and channeling analysis (which I will break up into multiple concepts).
To start off, channel conflict is a clash of goals or methods of doing things between distribution channel members, and a channel captain is a member from the management team who runs the channel and makes sure things are going smoothly. The two kinds of channel conflicts are vertical conflict and horizontal conflict. Vertical conflict is a channel conflict that happens between different levels in a specific marketing channel, typically between the manufacturer and retailer. Horizontal conflict is a channel conflict between channel members on the same level, and is less serious than a vertical conflict. I can't think of a business example, but when I think of channel conflict, I think of Sophomore Council. There could be vertical conflict in sophomore council when an e-board member has a conflict with another e-board member or when an e-board member gets into a conflict with a general member. There could be horizontal conflict when a general member gets into a conflict with another general member.
We also talked about Beatbox Beverages price and channeling analysis. Personally, I found this very difficult to follow not number-wise, but equation-wise, if that makes sense. I understand that you start from the end, in that you start with the retailers selling price and move forward. Also, I understand where the margins came from and how to use the margins to find the cost - (1-margin)*selling price. also, I understand that the cost from the retailer is the distributors selling price, and the distributors cost is the product selling price, in this case BeatBox. Also, I understood how to get the federal tax and how to take it off the sales revenue. (wow, I understand a lot more than I thought I did!!) However,The confusing part for me is where the CGS - purchases, gross margin, marketing expenses, contribution after marketing and operating expenses come in. (In the bottom right corner) Do you get the net profit when you add them all up? That's really the only part I get confused with.
A few of the interesting things from the book that we didn't talk about in class include World Bank (80), global marketing standardization (72) and the pyramid of social responsibility (41).
I thought the concept of the World Bank was fascinating because as sad as it may seem, as a business major, I didn't know there was such thing as a World Bank! The World Bank is an international bank that offers low-interest loans, helpful advice and information to developing nations.The initial purpose for the World Bank was to help developing nations build infrastructure, but now the World Bank offers loans to relieve their debt burdens. However, to receive these loans, developing nations must pledge to lower their trade barriers and aid private enterprises. The World Bank also founded the International Monetary Fund, which is an international organization which acts as a last resort lender, providing loans to needy nations and promoting world trade through financial cooperation, as well as The Group of Twenty, which is the forum for international economic discussion promoting discussions on key problems related to global economic stability. Overall, the World Bank has become a major helper and contributor for developing and needy nations.
I also read about global marketing standardization, which I also found to be quite interesting. Global marketing standardization is the production of uniform products that can be sold the same way all over the world. An example of a product that is standardized globally is smartphones and tablets, except for the languages they come in (however, they make it relatively easy for the user to change the language). This kind of production allows companies and businesses to lower production and marketing costs, while increasing profits. Some other companies that produce some or all of their products this way are Coca Cola, Colgate and McDonalds.
Another interesting concept was the pyramid of corporate responsibility. This pyramid portrays economic performance as the foundation for the other three responsibilities, which are the legal responsibilities, the ethical responsibilities and the philanthropic responsibilities,
According to they theory, a business is expected to obey the law and do what is right and be a good corporate citizen wile pursuing its profits.
P.S. I posted an updated blog for Nov 30 because I did the wrong chapters last night, so I redid it and wrote about the correct chapters.
CH 3 & 5
Today's class was much like the other classes, expect we didn't watch as many Shark Tank videos as we usually do! :( However, we did watch Beatbox Beverages and I'm really excited to do the update on this company! We also spent a lot of time on the Beatbox beverages price and channeling analysis which I found to be difficult to follow, but I kind of understand it (I talk about it m,ore below).
A few of the interesting things that we talked about in class today were the channel conflicts (which we've talked about before, but it was helpful to get a quick review on them) and Beatbox Beverages price and channeling analysis (which I will break up into multiple concepts).
To start off, channel conflict is a clash of goals or methods of doing things between distribution channel members, and a channel captain is a member from the management team who runs the channel and makes sure things are going smoothly. The two kinds of channel conflicts are vertical conflict and horizontal conflict. Vertical conflict is a channel conflict that happens between different levels in a specific marketing channel, typically between the manufacturer and retailer. Horizontal conflict is a channel conflict between channel members on the same level, and is less serious than a vertical conflict. I can't think of a business example, but when I think of channel conflict, I think of Sophomore Council. There could be vertical conflict in sophomore council when an e-board member has a conflict with another e-board member or when an e-board member gets into a conflict with a general member. There could be horizontal conflict when a general member gets into a conflict with another general member.
We also talked about Beatbox Beverages price and channeling analysis. Personally, I found this very difficult to follow not number-wise, but equation-wise, if that makes sense. I understand that you start from the end, in that you start with the retailers selling price and move forward. Also, I understand where the margins came from and how to use the margins to find the cost - (1-margin)*selling price. also, I understand that the cost from the retailer is the distributors selling price, and the distributors cost is the product selling price, in this case BeatBox. Also, I understood how to get the federal tax and how to take it off the sales revenue. (wow, I understand a lot more than I thought I did!!) However,The confusing part for me is where the CGS - purchases, gross margin, marketing expenses, contribution after marketing and operating expenses come in. (In the bottom right corner) Do you get the net profit when you add them all up? That's really the only part I get confused with.
A few of the interesting things from the book that we didn't talk about in class include World Bank (80), global marketing standardization (72) and the pyramid of social responsibility (41).
I thought the concept of the World Bank was fascinating because as sad as it may seem, as a business major, I didn't know there was such thing as a World Bank! The World Bank is an international bank that offers low-interest loans, helpful advice and information to developing nations.The initial purpose for the World Bank was to help developing nations build infrastructure, but now the World Bank offers loans to relieve their debt burdens. However, to receive these loans, developing nations must pledge to lower their trade barriers and aid private enterprises. The World Bank also founded the International Monetary Fund, which is an international organization which acts as a last resort lender, providing loans to needy nations and promoting world trade through financial cooperation, as well as The Group of Twenty, which is the forum for international economic discussion promoting discussions on key problems related to global economic stability. Overall, the World Bank has become a major helper and contributor for developing and needy nations.
I also read about global marketing standardization, which I also found to be quite interesting. Global marketing standardization is the production of uniform products that can be sold the same way all over the world. An example of a product that is standardized globally is smartphones and tablets, except for the languages they come in (however, they make it relatively easy for the user to change the language). This kind of production allows companies and businesses to lower production and marketing costs, while increasing profits. Some other companies that produce some or all of their products this way are Coca Cola, Colgate and McDonalds.
Another interesting concept was the pyramid of corporate responsibility. This pyramid portrays economic performance as the foundation for the other three responsibilities, which are the legal responsibilities, the ethical responsibilities and the philanthropic responsibilities,
According to they theory, a business is expected to obey the law and do what is right and be a good corporate citizen wile pursuing its profits.
P.S. I posted an updated blog for Nov 30 because I did the wrong chapters last night, so I redid it and wrote about the correct chapters.
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