Question

Three examples of each of the following
a) Market Structure
b) Method of retailing

Outline two purposes of branding

Explain two ways in which businesses can use social media to promote sale

Answer 1

Part A

Three example of market structure are as following:

Monopoly: Monopoly market is one where there is only one seller and buyers do not have any choice. The entry barrier is very high and price is determined by seller as there are no alternative choice available. Monopolies arise because of government regulations or in cases where key resource are regulated by a single firm. Example of near monopolistic market is Microsoft in PC operating systems.

Oligopoly: Oligopoly market is characterized by few firms. Oligopoly market arise because of very high economy of scale and large investment requirement. Example of oligopoly market Boeing and Airbus in aviation market.

Perfect competition: As the name suggests perfect competition market is a place where a number of firms compete with each other to attract customers. Agricultural market is an example of nearly perfect competitive market where various farmers grow their produce and compete against each other to sell it in market.

Part B

Three examples of different method of retailing are as following:

Brick and mortar: In this retailing method organisations operate through their offline stores to sell products to customers. They might be inform of convenient store, warehouses, specialty Store, customer outlet and various others. Examples of firm using brick and mortar retailing method is Walmart.

Brick and click: In this retailing method organisation operate through offline as well as online channels. Example of firm using brick and Click model is Sports Direct, which is started through a single brick Store but now has significant online presence.

Pure click: Pure click retailing method focuses on only online presence, and the sellers sell their services directly to customers through online mediums like internet and mobile. Example of pure click include websites like MakeMyTrip, Trivago etc

PART C

Two main purpose of branding are as follow:

One of the main purpose of branding is to create customer loyalty. Once a brand become successful customers reach out to the brand for repeat purchase of product and services. This helps create high brand recall and increases sales in long term. Example: Harley Davidson

Another major purpose of branding is communication. A strong brand makes it easier for the organisation to launch any new product or service in market. Strong branding also generates positive buzz around product and service offering of firm, and generates strong word of mouth marketing. Example: Apple, Microsoft, Ford etc.

PART D

Two methods in which organisations can use social media to promote sales are as following:

Organisations can promote sale through social media marketing. They can market their products on social media platforms to reach out to target customers. Social media platforms like Facebook, YouTube and others make it easier to target exact customer base based on various characteristics like demography, age, sex, etc.

Social media platforms also offer a perfect place to build relationships and connect with customers. Businesses can create a strong presence on social media platform and leverage it to increase their sales. Each and every person joining a business on social media platform acts as a brand ambassador. Therefore, it provides a great opportunity to expand and promote sales.