Question

1. T/F. RBV = Revenue Based Value
2. T/F. The more competitors there are in an industry the intense rivalry is
3. T/F. Product development starts with a goal
4. T/F. Marketing is a support to sales but never makes a sale
5. T/F. Price Points must consider sales volume and end profit goals

Answer 1

(1)False. RBV stands for Resource Based View.The resource-based view (RBV) is a managerial framework used to determine the strategic resources a firm can exploit to achieve sustainable competitive advantage.

(2)True. The rivalry between competitors will be higher if they are large in number.Clearly, a high number of competitors of equal size will lead to more intense rivalry. There will be less rivalry when a clear leader exists (at least 50 % larger than the second).This is because the strategies they follow will be varied and competition will be cut throat. Therefore, the degree of concentration in the industry must be assessed as one of the primary factors influencing intensity of competition in the industry.

(3)True.There are simply two major objectives for product development:
1.To reach new level of quality of product which effectively increase customer satisfaction.
2. Let's addict the customer to your company for that remarkable quality and also make profit and fame building.

So if a company has one of these goals they will start to develop new products based on those goals.The first step of product development is idea generation.This idea cannot be generated without a practical and feasible goal and objective.It may either be market expansion,increasing customer base,improving revenue from sales etc

(4)True.Sales is a term used to describe the activities that lead to the selling of goods or services. Salespeople are responsible for managing relationships with potential clients (prospects) and providing a solution for prospects that eventually leads to a sale. Marketing encompasses all activities that help spark interest in your business. Marketers use market research and analysis to understand the interests of potential customers. Marketing departments are responsible for running campaigns to attract people to the business' brand, product, or service.Some reasons for believing that marketing is not sales are:

1) The goal of marketing is to make the selling environment better, while the goal of selling is to make a sale from a customer.

2) Marketing is about making consumers buy because of the brand first, then the product and the person. While selling is about making consumers buy because of the person first, then the product and the brand.

3) Marketing is about planning a strategy to become the market leader of a group of consumers. Selling is about closing a customer through one-to-one interaction, one at a time.

4) The process of marketing started long before the selling takes place such as consumers segmentation, planning and creating brand strategies. While the selling process takes place only when the salesperson meets with the prospects.

(5)False.The pricing objectives set by companies are generally seeking to maximize sales revenue over costs, and achieve profit.But market situations can vary, and Philip Kotler suggests that a company can pursue the following six major pricing objectives.Some of them are:

(a)SURVIVAL

(b)MAXIMUM CURRENT PROFIT

(c)MAXIMUM CURRENT PROFIT

(d)MAXIMUM SALES GROWTH

(e)MARKET SKIMMING

(f)PRODUCT QUALITY LEADERSHIP

Thus we can see that price points depend on both sales volume and profit goals.. Too high a price and sales might be too low. Too low a price and sales might be high but without profit.Also companies with weak competition set a high price that produces the most cash flow or return on investment.Hence complete avoidance of profit goals cannot be made in pricing various products.It is also one of the major factors though not the sole one.