Unit- BUSN 612 Managing Market Environments
Unit- BUSN 612 Managing Market Environments
Student ID- S00335449
Student Name- Shreyansh Pandey
Assignment type Online Discussion Forum Report
WEEK1
CASE1
Demographic Segmentation: Income and age will be looked at. The high-income individuals in the first segment, "Young Professionals," are in the 2535 age range. The second group, "Fitness-Seeking Retirees," consists of those who are 50 to 65 years old and may have more resources and time to dedicate to their fitness.
Geographic Segmentation: Based on lifestyle and location, we will target those who are seeking for a workout choice in quieter regions and desire convenience: "Suburban Health Buffs" and "Urban Fitness Enthusiasts" in the city.
Psychographic segmentation pertains to values and interests. "Fitness Fanatics" have an intense love for working out, whereas "Wellness-Oriented" people place a high value on their general well-being.
Behaviour is the focus of behavioural segmentation. "Regular Gym-Goers" attend to the gym on a regular basis, whereas "Novice Fitness Seekers" are inexperienced with fitness.
Target Segments: "Young Professionals" who value convenience and have the means to pay for upscale services should be our main target. And there's always the "Fitness Fanatics" market, which is comprised of people who love working out. These markets coincide with Alyssa's concept for an upscale fitness facility and provide opportunities for expansion and customer loyalty.
CASE2
By utilising the 7Ps, we can create a suitable marketing mix approach for Alyssa's fitness centre that targets working-class people between the ages of 20 and 50.
1. Product: To set yourself apart from the competition, provide top notch exercise equipments, individualised training plans, group sessions, and cutting-edge fitness technology.
2.Price: Charge a premium to represent exclusivity and quality, but offer a variety of membership tiers to suit different budgets.
3. Place: Pick a wise spot in the suburb, ideally in a famous and an easily accessed neighbourhood with plenty of parking and easy access.
4. Promotion: To advertise the fitness centre, use a combination of offline and internet media This might be social media advertising, collaborations with surrounding businesses, and targeted email marketing campaigns.
5. People: Employ qualified, experienced fitness instructors who can give each member individualised attention, knowledge, and inspiration.
6. Procedure: Provide members with a smooth and pleasurable experience by streamlining the membership enrolment process and providing flexible scheduling alternatives.
7. Physical evidence: Use contemporary furnishings, cutting-edge equipment, and spotless facilities to create a warm and sophisticated atmosphere in the fitness centre.
WEEK 2
I would suggest to my friend:
Examine the Warranty: Refer to the television's manufacturer's warranty. Products that are faulty are frequently covered, and the maker may provide a repair or replacement.
Seek Legal Advice: To learn about his rights and alternatives, speak with a consumer rights organisation or a legal professional. The ACCC, the site you gave, could have important information on the rights and obligations of consumers.
Request Resolution: Re-approach the seller politely and explain the situation, making sure to emphasise that the problem is a manufacturing flaw rather than a change of heart. Talk about the consumer's rights and the warranty.
For the Seller, I would suggest:
Respect Consumer Law: Stress the significance of abiding by laws that protect consumers. When purchasing defective items, buyers have legal rights under consumer law that may include replacements or reimbursements.
Customer relations: It's critical to establish trust with customers. Rejecting valid allegations might damage your reputation and have legal repercussions. It is preferable to settle the dispute amicably.
Refund policies should be reviewed and maybe updated to make sure they respect consumer rights, particularly with regard to defective goods.
WEEK 3
JBC Corporation, the top provider of product X, is facing increasing rivalry in the present market environment due to the entry of SMEs. From a legal standpoint, the CEO's plan to undercut the production cost in order to keep market share needs to be carefully considered.
In this regard, a crucial legal foundation is provided by Section 45 of the Competition and Consumer Act of 2010. This section discusses agreements or arrangements that significantly reduce market competition as well as anti-competitive behaviour. The CEO may have broken this rule if his tactic of lowering prices is seen as a component of an agreement meant to drastically lessen competition.
But the legality of this pricing plan is complicated and depends on a number of variables, such as the company's market dominance, the precise purpose of the price strategy, and the real effect on competition. It is important to consult with legal professionals who specialise in competition law to properly comprehend the legal ramifications. These professionals can evaluate the strategy's intricacies and potential hazards.
Essentially, even if the CEO's suggestion could be a reaction to market forces, caution should be used in order to guarantee that it complies with the Competition and Consumer Act of 2010. It seems sense to consult legal professionals in order to fully assess the circumstances, including things like purpose, market dynamics, and any legal repercussions under Section 45 of the Act. http://www.legislation.gov.au/
WEEK 4
Calculation of Total Expenditure for All Years (including the base year, 2010):
To calculate the total expenditure for each year, we will multiply the quantity (Qty) by the price for each commodity:
2010 Total Expenditure = (100 Ltr * $1.15/Ltr) + (50 Pcs * $8/Pcs) + (35 Pcs * $3/Pcs) = $115 + $400 + $105 = $620
Now, let's calculate the Consumer Price Index (CPI) for each year, considering 2010 as the base year.
Calculate CPI for 2014, 2015, 2019, and 2020:
CPI formula: CPI =Total Expenditure in Current YearTotal Expenditure in Base Year100CPI=Total Expenditure in Base Year Total Expenditure in Current Year100
CPI for 2014 = ($120+$425+$122.5)$620100$620($120+$425+$122.5)100= 141.13
CPI for 2015 = ($125+$425+$131.25)$620100$620($125+$425+$131.25)100=144.44
CPI for 2019 = ($175+$550+$175)$620100$620($175+$550+$175)100= 177.42
CPI for 2020 = ($155+$525+$210)$620100$620($155+$525+$210)100= 172.74
Calculating the Inflation Rate for 2014-2015 using 2014 and 2015 CPI:
Inflation Rate formula: INFLATION RATE= CPIYear 2CPIYear 1 /CPIYear 1100Inflation Rate=CPIYear 1CPIYear 2CPIYear 1100
Inflation Rate for 2014-2015 = 144.44141.13141.13100141.13144.44141.13100= 2.35%
Similarly, Calculate Inflation Rate for 2019-2020:
Inflation Rate for 2019-2020 = 172.74177.42177.42100177.42172.74177.42100= -2.63% (Note: This is negative, indicating deflation)
Inflation Rates: The 2014-2015 inflation rate was roughly 2.35%, showing a moderate amount of inflation throughout this period.
The 2019-2020 inflation rate was roughly -2.63%, signifying deflation (a fall in the general price level).
In comparison, the period 20192020 witnessed deflation, which indicates that prices fell on average throughout this time. This may be more beneficial to consumers in the short run as their purchasing power grows.
Inflation was mild in 2014-2015, which is generally regarded as healthy for an economy because it shows consistent economic growth and consumer demand. As a result, the 2014-2015 era may be regarded as more favourable in terms of economic stability.
WEEK 5
Step 1: Calculate Elasticity Coefficient
Elasticity of Demand (Ed) = (% Change in Quantity Demanded) / (% Change in Price)
For Model A:
Ed = [(11,350 - 12,750) / 12,750] / [(1,900 - 1,500) / 1,500] -0.0882 / 0.2667 -0.33
For Model B:
Ed = [(6,800 - 9,000) / 9,000] / [(2,500 - 2,100) / 2,100] -0.2444 / 0.1905 -1.28
Therefore, Model A & Model B both are inelastic.
Step 2: Calculate Total Revenue
Total Revenue (TR) = Price (P) x Quantity (Q)
For Model A:
Old TR = $1,500 x 12,750 = $19,125,000
New TR = $1,900 x 11,350 = $21,565,000
For Model B:
Old TR = $2,100 x 9,000 = $18,900,000
New TR = $2,500 x 6,800 = $17,000,000
Step 3: Analysing Price Elasticity and Total Revenue
Due to the inelastic demand, Model A's price rise resulted in a larger overall income, suggesting that the price increase is wise.
Despite the inelastic demand, it is not recommended to raise the price for Model B, as the price increase also decreased overall income.
In summary:
It is advised to raise the price of the Model A from $1,500 to $1,900 in order to increase overall income. It is not a good idea to raise the price of Model B from $2,100 to $2,500, though, as this would result in less income overall.
WEEK 6 & 7
A technique for comprehending how individuals or entities make strategic decisions when those decisions have an effect on one another is game theory.
Consider the introduction of new goods by two IT businesses, for instance. Every business must choose between setting a high and cheap pricing. They will both earn handsomely if they set a high price. They will have to accept a smaller profit margin if they both aim for a cheap price, but they will still have a portion of the market.
This is when things start to get interesting. The low-price firm wins a larger market share and the high-price company loses out when one selects a high price and the other a low one.
These companies evaluate these circumstances, forecast each other's moves, and choose the best pricing strategy by applying game theory. It is more crucial to make thoughtful judgements while considering other people's reactions than it is to just make decisions. A very useful tool that makes it easier for us to grasp complicated interactions is game theory. It is useful for predicting results in a variety of domains, such as business, biology, and politics.
WEEK 8
comprehensive examination of the marketer's role at each stage of the customer decision-making process:
Problem Recognition:
Marketers use psychological triggers such as appealing advertising to create a perceived demand for their products or services. Unfulfilled aspirations or cognitive dissonance often set off this awareness.
Information Search:
Marketers use omnichannel strategies and data analytics to deliver full information across many touchpoints while personalising content to customer interests and behaviours. AI-powered personalisation is crucial in this case.
Alternatives Evaluation:
Marketers use product differentiation tactics to emphasise the unique selling propositions (USPs) of their offers, leveraging competition intelligence and market research. Cognitive biases such as anchoring and confirmation bias are used to impact decision-making.
Purchase Option:
Pricing plans are astutely developed, taking into account aspects such as perceived value, price anchoring, and dynamic pricing algorithms. Scarcity and social evidence are two nudges that might persuade a consumer.
Post-Purchase Analysis:
Post Purchase Evaluation:
Marketers usually focus on their client pleasures and client retention after sales. They also use AI chatbots, automated feedback mechanisms and other CRM platforms to asses varied consumer behaviour and responses to their product. This helps them to analyse and prepare for any future shortcomings.
To optimise their plans, marketers use advanced psychological, technical, and data-driven approaches to traverse each stage of the customer decision-making process, with a thorough awareness of cognitive biases and consumer behaviour.
