Quiz 1: Marketings Value to Consumers, Firms, and Society
a. Following values are provided in the spreadsheet: Selling price (calendar) = 5 Quantity sold (calendar) = 90 percent of 3,000 = 2,700 Total cost (calendar) = 11,500 Selling price (notebook) = 2 Quantity sold (notebook) = 6,000 Total cost (notebook) = 9,000 Calculate the revenue and profit of Person S earned from the calendars and notebook using spreadsheet as shown below: Prepare a spreadsheet using given formulas: It would give the following results: Hence, the revenue for Person S from calendars and notebooks are $13,500 and 12,000 , respectively. Profit earned from calendars and notebooks are $2,000 and 3,000 , respectively. b. Calculate the expected revenue and profit for Person S after increasing the price of calendars to $6.00, as shown below: It would give the following results: Hence, increasing the price of calendars to $6.00 would result in expected revenue of $16,200. Expected profit after increasing the price of calendars is $4,700. Now, perform the calculations manually to verify the results, as shown below: c. Prepare an excel sheet using the mentioned values and formulas, as shown below: Quantity sold = 6,000 Selling price = 1.60 - 2.40 (with a price difference of 8 cents) Total cost = 9,000 Prepare an excel sheet as shown below: It would give the following results: From the above calculations, it is clear that selling $6,000 notebooks at $2.40 would contribute $5,400 to profit. At a price of $1.68 , selling 600 notebooks would contribute to the profit of $1,080.00. Now, use "Goal Seek" analysis to obtain the required values, as shown below: Prepare an excel sheet as shown below: Access "Goal Seek" option from "What if" analysis present under data menu bar, as shown below: Now, fill the following values in the "Goal Seek" window to calculate the selling price required to earn a profit of $5,400.00: It would give the following results: Hence, selling price of $2.40 would provide an expected profit of $5,400.00 to Person S. Similarly, fill the following values in the "Goal Seek" window to calculate the selling price required to earn a profit of $5,400.00: It would give the following results: Hence, selling price of $1.68 would provide an expected profit of $1,080.00 to Person S.
In the day today life each and every individual is influenced by the marketing activities of the organizations in the world. The marketing can also influence the daily activities of the people, some of which are mentioned here. • By seeing the advertisement of the brand new cosmetic product a secondary research has been performed through internet for knowing about its review and credibility. • The advertisements through social media in between every video can be considered as an irritation or waste of time sometimes. • The digital banners in the road side are very attractive while taking the morning walk and can make the people think about the product. Thus the marketing activities or approaches of the organization can influence the population in some way or the other. The success of the marketing also depends on the perception and the circumstances of the people.
If a producer produces a new product and arranges a provision for the customers to know more about it and buy it through the website, then it can be considered as the most effective approach of business. But in such cases also additional marketing activities are very much essential. Only if the producer reach the target audience and inform them about the product, an anxiety will be generated in the audience. This awareness can only persuade them to know more about the product and buy it online. If the customer does not take any initiative to know about the product then no one will buy online. Hence the additional marketing effort to persuade the customers is considered to be important in such business cases.