BU121 Lecture Notes - Lecture 9: Business Model Canvas, Cash Flow, Variable Cost
Document Summary
Combine with advertising to: generate leads, decrease cost of sales call, reach (cid:862)inaccessibles(cid:863, mai(cid:374)tai(cid:374) i(cid:373)age i(cid:374) (cid:271)uye(cid:396)(cid:859)s (cid:373)i(cid:374)d. Factors to consider in budget decision: perceived risk of sale financial, social, performance, amount of information to convey, degree of customizing necessary. Short term incentives to induce purchase: free samples, coupons, cash rebates, extra volume for same price, giveaways, premiums. Purchase is a function of desire and availability/accessibility: critical decision direct or use outside source. Use of marketing intermediaries/ channel of distribution business model canvas. Must sell to intermediary as well as consumer, and lose (cid:272)o(cid:374)t(cid:396)ol o(cid:448)e(cid:396) ho(cid:449) it(cid:859)s sold and the effort made: push vs pull promotion. Bu121: anything that reduces costs or increase volumes = more profit. Selective/ exclusive arrangements product classification: also gain control over marketing and effort. Each intermediary takes a cut and you lose control over the final price: demand-backward pricing. 2. 49 + 1 +1. 5 = 4. 99 to consumer.
