What is Benchmarking?

Correct Answer: Competition occurs when two or more organisations act independently to supply their products to the same group of consumers There are mainly two cases when firms can compete One is price where firms are selling identical or very similar products, they must compete on price with each firm trying to undercut the others The other is differentiation A non-price competition depends on making a product different from those of competitors and by giving it distinctive qualities that are valued by the target market This might include branding, styling, special features or higher levels of customer service Good competition provides more options to customers and also brings with it improved customer services

Correct Answer: It refers to a forecast regarding the future trend of a particular company, economic segment, Commodity or stock market exchange Market outlooks are based upon past performance, prevailing economic factors, consumer demand and opinionIt is also called market forecast

Correct Answer: It refers to the possibility for an investor to experience losses due to factors that affect the overall performance of the financial markets Market risk cannot be eliminated through diversification, though it can be hedged against The sources of market risk include natural disasters, recessions, political turmoil, changes in interest rates and terrorist attacks

Correct Answer: It is an investment strategy that involves the buying of money market instruments or currencies in anticipation of a price rise or a future increase in demand Buying forward allows an investor to take advantage of future and potential profits by buying now at alower price, and selling when prices rise

Correct Answer: An up - selling is getting the customer to spend more money, buy a more expensive model of the same type of product, or add features or warranties that relate to the product viewed or purchased A cross - sell is to get the customer to spend more money by adding more products from other categories than the product being viewed or purchased

Correct Answer: Marketspace refers to an information and communication based electronic exchange environment It is a relatively new concept in marketing Since physical boundaries no longer interfere with buy/sell decisions, the world has grown into several industry specific marketspaces which are integration of marketplaces through sophisticated computer and telecommunication technologies

Correct Answer: It is a marketing strategy in which the sales force is compensated not only for sales they personally generate, but also for the sales of the other salespeople that they recruit This recruited sales force is reffered to as the participant's 'downline' , and can provide multiple levels of compensation Other terms used for MLM include pyramid selling, network marketing and refferal marketing Most commonly, the salespeople are expected to sell products directly to consumers by means of relationship referrals and word-of-mouth marketing

Correct Answer: Inbound Marketing : Inbound marketing refers to marketing activities that bring visitors in, rather than marketers having to go out to get prospect's attention 1 Communication is interactive and two-way 2 Customers come to you via search engines, refferals and social media 3 Marketers provide value 4 Marketers seek to entertain and/or educate 5 It is a cheaper way of marketing 6 It is the new trend in marketing 7 People are more in control of what information they receive and how Outbound Marketing In Outbound marketing the company contacts the customer through a message It uses offline methods such as trade shows, mails to customers and calling customers 1 Communication is one-way 2 Customers are sought out via print, TV, radio, banner advertising and cold calls 3 Marketers Provide little to no added value 4 Marketers rarely seek to entertain or educate 5 It is expensive compared to inbound marketing 6 It is one of the traditional methods of marketing 7 In outbound marketing company is in control

Correct Answer: Prices do not reflect the full social cost of production

Explanation:

Prices do not reflect the full social cost of production is an example of Market failure.

 

A market failure occurs when the supply of a good or service is insufficient to meet demand. This results in an inefficient distribution of resources among market participants.

It also occurs if externalities are not accounted for.

If a firm fails to maximize its profits this is not a general market failure.

Correct Answer: Market Research