Before explaining the important decisions of single product or a new product manufacturing process, let’s take a look at some of basic concepts.
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There are few basic concepts that should be discussed before going into detail about the business buying process.
Marketing Research process way through which marketer evaluate the market, analyze the opportunities and threats, and try to show a best possible solution for addressing this situation. Actually, marketing research is conducted in order to get information about certain factors like customers, competitors or any other factor related to the external environment. All of such information collected is then utilized in the decision making process in the organization. Marketing research can be utilized to achieve the following outcomes.
Before going towards the detail of consumer behavior, let’s discuss some basic concepts consumer behavior.
The marketing process is a process of analyzing the opportunities in the market, selection of the target markets, and development of the Marketing Mix and management of the marketing efforts. Below are the 4 marketing process steps that involved in targeting the right audience in the market.
Capital Asset Pricing Model:- Before going into detail of capital asset pricing model (CAPM), let’s discuss some of the basic concepts of Risk and Return theory that are helpful in understanding CAPM.
Security Market Line Formula and Graph:- In capital asset pricing model, the security market line (SML) is related to the required return and the beta risk. The 2-stock portfolio having ρ>0 is similar to security market line in which there is a direct relationship between beta and required return. For every extra relative risk of stock with the market, the investor demands some extra return against it.
Theory of Interest:- The point at which the supply and demand of capital (funds) matches is regarded as an interest rate and theory through we described the interest rate is known as theory of interest. It is actually an equilibrium price in the Capital Market at which the lenders and borrowers are ready to make deals with each others. The interest rate is different for each market depending on the demand and supply of capital in the market. This means that the interest rate that prevailing in the sugar market is different from the interest rate in the cotton market. But all the different interest rates are inter-related to each other within the markets of a country.
Lease financing is a modern terminology in the field of financing that is being applied by businesses throughout the world. Basically, there are two parties involved in lease financing
Weighted Average Cost of Capital:- Before going towards the detail of weighted average cost of capital, some of basic concepts in the capital structure theory should b cleared.