Bikes Simulation Flashcards
Customer needs/customer value hierarchy
List of Customer’s wants from most -> least wanted; use to create best catering product
Prioritize benefits over features in brand design
Identify desired benefits and link to features in Market Opportunity Analysis
Research real-world usefulness and match features with sought-after benefits
Consider customer preferences and market prices for a logical brand design.
Feature
an essential function or component of a good or service.
Benefit
how a product’s features could make a consumer’s life easier or more enjoyable.
Target market
The primary market is the target market selected as the main focus of marketing activities and most of the firm’s resources are allocated to the primary target.
The secondary target market is likely to be a segment that is not as large as the primary market, but may have growth potential.
Helps efficiently allocate resources, exploring expansion opportunities, and mitigating risk
Demand curves
Relationship between the price of a good and the quantity demanded
Demand forecasting
Using predictive analysis of historical data to estimate and predict customers’ future demand for a product or service
To determine your daily operating capacity, take the forecasted total demand for all brands from Sales and then divide it by n days
Pricing
If your firm’s average price is below the competition, the price differential should help in generating more demand and taking business away from your competition.
Price elasticity
How sensitive customers are to changes in price -> knowing it helps you understand how much you can cut/raise prices
Price rebates
Short-term stimulant to market demand; create excitement
Don’t work with inelastic segments (gives off negative image)
Could be bad b/c removes income from future sales
Fixed Capacity
Determines the maximum number of units your production facility can produce each day.
Operating capacity must be less than Fixed capacity
Operating Capacity
Determines the number of workers to employ, and thus, the number of units that are produced each day.
Operating capacity must be less than Fixed capacity
Overtime
An option to expand the operating capacity when too little capacity was scheduled into production
Use when demand > OC to meet excess
Use when demand > FC as well
Have less OC and use more Overtime when actual demand < forecasted demand
Lean manufacturing/just-in-time
To produce only the quantity of goods that is demanded by customers
Stock outs
When there is insufficient inventory to meet customer demand, leading to potential sales loss and customer dissatisfaction
Excess inventory
Surplus of inventory beyond current demand; causes financial costs and risks
Costs of Production
Total cost a business incurs to either produce a product or offer its services
Economies of Scale
A proportionate saving in costs gained by an increased level of production
Balancing the accounting equation
Assets = Liabilities + Owner’s Equity
Proforma Accounting
The proforma accounting incorporates hypothetical numbers of estimates. They are built into the data to give a picture of a company’s profits if certain nonrecurring items are excluded
Balanced scorecard
It provides a single number that can be compared between companies
It is used as a main indicator for evaluating your performance in the market
Total performance = Financial performance * market performance * marketing effectiveness * investment in future * wealth * human resource management * asset management * manufacturing productivity * financial risk
Profitability analysis
Process that helps one determine whether their business or element of the business is profitable
Used to allocate money more efficiently to increase the bottom line
When costs can be tied to an element of a business, it is called a cost object
- Region, product, department, etc.
The revenue linked to the cost object - cost = profit
Depreciation
Accounting practice used to spread the cost of a tangible or physical asset over its useful life
How much of the asset’s value has been used up in any given time period
Allows businesses to spread the cost of physical assets (such as a piece of machinery or a fleet of cars) over a period of years for accounting and tax purposes.
