Managerial Economics

A brand is utilized by a company to differentiate its products from others in the market. Some techniques for accomplishing this are through the use of distinguishing

1a. Elasticity in the economics can demonstrate the consumer’s response to the change in a commodity’s price or other conditions.

It has been held in the United Brands case that product differentiation acts as a barrier to entry. Product differentiation is the development or incorporation of properties such as pricing, style etc. that the intended buyers of a product perceive to be different from others and therefore desirable. In the instant case the product differentiation has been made by different annual fee for licence of patented product.

Brand competitors and the diversity of choice that is available to consumers, puts brands under pressure to offer high quality products and service, excellent value and a wide availability (Clifton et al., 2009). Brands must differentiate themselves from the competition and create an unforgettable impression.

1. how do your financial choices impact the economy? trace the impact of your financial decisions.

As a matter of fact, differentiation adds the variety that enhances the lives of the buyers. Product differentiation is achieved in three ways: physical differences, perceived differences, and support services. Physical differences exist when the product of one company is physically different from the product of other firms.

|5000 employees at the beginning of the 1990s, it has grown to exports of $70 billion and 2.8 million employees today, and a globally dominating |

Since an increasing number of people focus on brand names instead of product, brands become important elements for customers to choose products (Carroll, 2008). When customers trust the brand, the benefits for the manufactures are generated. In the first place, brands can be used by products as the tool to identify and differentiate themselves from various products. Secondly, brands are helpful for companies to build a competitive advantage (Bick, 2009). Therefore, organisations take more attention to branding.

Jackson Corporation’s bonds have N=12 years remaining to maturity. Interest is paid annually, the bonds have a FV=$1,000 par value, and the coupon interest rate is PMT=8%. The bonds have a yield to maturity of I=9%. What is the current market price of these bonds? $928.39

16. Three pillars that point to the brand’s future value, rather than just reflecting its past, are differentiation, energy, and relevance. Differentiation, energy, and relevance combine to determine what is called brand ________.

A differentiation strategy seeks to provide products or services that offer benefit that are different from those of competitors and that are widely valued by buyers. (Johnson, Scholes&Whittington, 2008). The aim of using differentiation strategy is to achieve competitive advantage. This could be achieved for example like the clothing brand ZARA, by offering better products at the same price. A differentiation strategy must be based on two key factors: the strategic customers, the company has to identify their needs and values, company also must identify who are its main competitors.

the relationship between a brand’s differentiation and relevance factors is the yardstick for a brand’s growth potential: the Brand Strength. A “relevant differentiation” is the vital prerequisite for dynamic and successful brand building.

The economists says Economics is a study of production ,distribution and consumption of wealth in society, Its basic function is to study how human activity at individuals, households, firms and national level to maximize their gains from their limited resources and opportunities. People have limited number of needs and wants which must be satisfied such as food, clothing, shelter and other stated needs. Some of them are material needs, psychological needs, and emotional needs. However, no one would choose to live at the level of basic human needs if they want to enjoy a better standard of living. This is because human wants (desire for the consumption of goods and services) are unlimited. Every individual has their own tastes and preferences,

Perceived differentiation is crucial for branding of a company’s product, especially against the many rival companies, which have very similar products to offer to the same audience (market) with the potential ability to make or break the company’s future prosperity.

Yes. Firms represent a combination of people, physical assets, and information (financial, technical, marketing, and so on). People directly involved include stockholders, managers, workers, suppliers, and customers. Businesses use scarce resources that would otherwise be available for other purposes, pay income and other taxes, provide employment opportunities, and are responsible for much of the material well-being of our society. Thus, all of society is indirectly involved in the firm’s operation. Firms exist because they are useful in the process of allocating resources --producing and distributing goods and services. As such, they are basically economic entities