Nature and extent of demand
Demand gives a description of desire, ability as well as willingness of the customer to pay the set price for products and services in a firm. Demand reflects the quantity that customers will buy at a specific price and explains the link of quantity demanded and the price.
Best promotional tool or activity for securing customer loyalty
The implication of loyalty is repeat customers and customers who are dedicated to offer testimonials, ratings, referrals as well as reviews. Loyal customers are a great asset to the firm by spreading the good image of the firm to other people. The best promotional tool or activity that can be used by organization to secure customer loyalty involves programs that make the existing customers to be happy and thus give more business to the firm. The organization can give the highest quality of products to the clients coupled with its guarantee. Other important tools of consideration for improving customer loyalty include free offers, issuing coupons, financing customers at low rates of interest, trade-ins at high value, use of extended warranties, giving refund if customer is unsatisfied, rewards as well as incentive programs. The goal of the firm is to make the customer happy which will encourage repeated purchase and persuading other people to chose the products as well as services offered by that firm.
Heuristic for students taking this Marketing Management class
Students taking this Marketing Management class must be equipped with technical skills of management and skills in solving problems in management and marketing which form the basis for their future education. The ability and skills of applying the learnt knowledge in practical situation is equally important. The students must also have conceptual skills that are well developed to meet the needs of complex problems encountered in marketing management.
Why is an organization’s demand for products inelastic and derived?
The importance of organization’s demand for products inelastic is based on the fact that, highly profitable arrangement in the business is achieved in a perfectly inelastic demand. Even with high prices of products, the price is likely to remain inelastic.