How to get a Band 6 in Business Studies!

[zachary99]

Price points is a pricing strategy were products are set at predetermined prices. This strategy is typically used in retail stores, an example being Target selling most of their T-shirts are for $15. Although the T-Shirts might have cost Target prices ranging from $5-9, the T-Shirts are still listed at $15 therefore different products have different profit margins. The benefits of this strategy is that it makes it easier for customers to find the product they want and according to "business studies in action", it enables the business to also encourage customers to "trade up" to more expensive models (or in Target's case, more expensive shirts).

Hope that cleared up some confusion.

adding on to this, a good example is buying coffee.
where you can buy a small $3 , medium $4 or large $5. It offers a range of similar products that still caters for different customers (those who want a little bit of coffee and those who want lots of coffee)

[Deng]

Just my two cents to the price points strategy which i have a bit of a hard time conceptualising as well, zachary's example on price points is how i think of price points as well. Adding to it using price points is an effective pricing strategy because it stimulates demand for a variety of 'target markets' which you can link back to factors affecting consumer choice - social class. Furthermore, by using price points in a competitive market gives consumers more choice in their decision making which can provide them a competitive advantage leading to increased profits ( this might be a stretch )

Just wanted to have a go explaining to try consolidate my own knowledge on it, hope i provided more information rather than repeating what Zachary and Rikahs said

[Rikahs]

Hi,

Could someone please explain to me what a "placement" is in regards to ordinary shares (finance module)?

[Deng]

Placement is essentially rather than going on the ASX and listing them publicly you offer them directly to investors (reduces their brokeages fees (?)). You basically get to choose who you want to have part ownership of the business and is usually used for expansions

[kawther]

Hey Guys,

What does "processes" mean in Marketing? like the "people, processes, physical evidence"? Does it mean the customers total experience from the simple stage of searching for the product to the final stage of experiencing its benefits OR the flow of activities a business follows in its delivery of the service? Ive read a million different versions of what "processes" is haha so I'm a little confused

Thank you!

[isaacdelatorre]

Hi,

Could someone please explain to me what a "placement" is in regards to ordinary shares (finance module)?

Hey Rikahs,
In a private sale of equity, the issuing firm sells a block of securities only to an individual or a small group of investors at a discounted price to entice certain investors or a certain group. As there is no prospectus given to investors, it poses greater risk; meaning firms are usually large and reputable businesses; or have the potential for the greatest reward. Non-participating shareholders not only suffer from ownership dilution but also lose the opportunity to enjoy the private placement discount.

[EmileeSmith]

What is even the difference between pricing methods and pricing strategies

[Deng]

What is even the difference between pricing methods and pricing strategies

Pricing methods are simply how a business would price their products depending on the circumstances e.g highly competitive means they would use competition based pricing. Now this becomes the base price for the product/ market based is used depending on supply and demand for the good and service, if there is high demand for a good it will have a higher base price/ cost up is just to generate profit
Pricing strategies are then applied to the base price to achieve the businesses marketing objectives and goals. So if it wants to gain market share, the business would apply a price penetration strategy on top of the base price

Hope i helped

[isaacdelatorre]

Hey Guys,

What does "processes" mean in Marketing? like the "people, processes, physical evidence"? Does it mean the customers total experience from the simple stage of searching for the product to the final stage of experiencing its benefits OR the flow of activities a business follows in its delivery of the service? Ive read a million different versions of what "processes" is haha so I'm a little confused

Thank you!

Hey there,
People, processes and physical evidence is an extension to the 4P's of product, place, promotion, price except that the 3 extra P's relate only to service based businesses. Therefore processes refers to the flow of activities that a business will follow in its delivery of a service - this means the all aspects of the systems/programs in place to ensure customer satisfaction. These processes need to be continually monitored and adapted to suit a variety of different customers, demographics, technology to have the greatest efficiency and customer service. So really, you can see how this does relate to the total experience for the customer as it is their entire interaction with the business through these set processes.

[melprocrastinator]

Hey Melprocrastinator,

Under common law rights of an employee if they are rostered to work specific hours or it's in their contract to work 9-5 etc; an employer cannot tell them not to work or "stand them down" if there isn't as much work to do. This can happen a lot in shift work type jobs if an employee comes to work and expects to do 8 hours, an employer might want to cut cost and tell this person not to work so they don't have to pay their wage for that shift. But under common law rights, they can't do this or they still have to pay whatever they were entitled to if they don't work.

Hope this helps

OMG thankyou so much. saving lives haha

[Rikahs]

Hi,

Could someone please explain cost centres and revenue controls (Both regarding finance)? All that seems to be under revenue controls is "marketing objectives" but how would this being a revenue controlling method? BTW if you could provide examples that would also be super helpful.

Thanks!

[Deng]

Hi,

Could someone please explain cost centres and revenue controls (Both regarding finance)? All that seems to be under revenue controls is "marketing objectives" but how would this being a revenue controlling method? BTW if you could provide examples that would also be super helpful.

Thanks!

 Are particular areas, departments or sections of business to which costs can be directly attributed to, so it makes it easier to identify the sources of costs for the business making it easier to reduce expenses . E.g Large business called Shak has multiple departments in his business, he can have a cost centre for each department so one for IT, one for HR, one for marketing etc, this way Shak can work out where the costs are coming from

Think revenue control as aim to increase revenue which inherently increases your profits i.e Revenue - COGS = Gross Profit, higher rev = higher profit

When it says marketing objectives it is essentially linking the strategic plan of marketing and finance together. For example, in marketing you would have pricing strats, changes to your price would therefore affect your revenue which affects your profit/working capital.

[EmileeSmith]

thanks man

whats the difference between mentoring and coaching in HR

[Deng]

Mentoring and coaching are both used to develop an employee's leadership. The difference between mentoring and coaching is that mentoring is more personal whilst coaching is more professional. I break it down into 5 categories ( excuse the poor formatting )
Mentoring
Focus - Individual life development
Function - provides experiences and advice on how to deal with certain scenarios
Role - its a personal relationship between mentor and mentee which is based on experience
Time - no time frame
Benefit - develops and provides growth for individual

Coaching
Focus - To train and develop the individual by improving their skills and knowledge
Function - To share skills, knowledge, methods of accomplishing tasks
Role - To coach the employee in an area
Time - Specific
Benefit - Increases teamwork, performance etc

[kevin217]

Any suggestions why the answer is A? Not sure why it can't be B or C