Assignment 3 (1)

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School

Broward College *

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Course

GEB2011

Subject

Marketing

Date

May 7, 2024

Type

docx

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Uploaded by MajorIronPuppy42 on coursehero.com

Assignment 3 Issue 1 I think that the tangible media for movies and music, like CDs and DVDs, has reached the Decline Stage of the Product Life Cycle. Factors that have caused this decline include the introduction of digital platforms, such as Netflix, HBO, and Spotify. This is because digital media is far more accessible and convenient, offering subscribers access to an extensive array of content. Also, instead of having limited ways to access music or films, consumers can access digital media on various devices, such as phones, laptops, TVs, etc. Some changes to the 4 Ps of this product, which include businesses releasing limited-edition products with unique content (product) and offering bundle discounts (cost), might help to extend the product life of DVDs and CDs. Issue 2 From all the marketing strategies mentioned, raising awareness through social media advertising works best to capture my attention and curiosity about a product. For instance, there are many times when I'll be scrolling through Instagram and see celebrities or influencers posting photos of themselves using or wearing a product. These eye-catching posts feature direct links or shopping tags that lead me to the product's website so I can buy it immediately. A tool that would rarely have a chance of reaching me would be providing informative information about a product because it doesn't grab my attention as much as interactive ads. Also, I think most companies hype the "greatness" of their item, making me not believe everything they say about their product unless there's evidence. Issue 3 Balance Sheet Assets Equipment Cash Buildings Land Accounts Receivable Inventory $200,000 $25,000 $400,000 $125,000 $100,000 $155,000

Total Assets $1,005,000 Liabilities Accounts Payable Loans Payable $50,000 $125,000 Total Liabilities Equity Retained Earnings $175,000 $83,022 Total Equity $83,022 Total Liabilities and Equity $258,022 Balance Sheet Total: $1,005,000 (Assets) = $175,000 (Liabilities) + $83,022 (Equity) Issue 4 Contribution Margin per Unit = Selling Price per Unit - Variable Costs per Unit $2,000 - ($800 + $200) = $2,000 - $1,000 Contribution Margin per Unit = $1,000 Then, Break-even Point (in units) = Total Fixed Costs / Contribution Margin per Unit Break-even Point (in units) = $5,000 / $1,000 Break-even Point (in units) = 5 units So, Betty’s monthly break-even point in units will be 5 saddles. The market demand for her product and production capacity will ultimately determine whether or not this is a suitable quantity for her to create and sell each month. However, this may not be a practical company for Betty if she cannot make or sell five saddles a month. She should also take into account variables like the competition and possible changes in the market.

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