Effective Marketing makes customers pay the price for a product that exceeds the cost of raw materials. This is called adding value through Marketing.
Posts published in “BUSINESS MANAGEMENT”
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Marketing exists in order to add value to satisfy customers’ changing needs and wants. Satisfying needs and wants should be done profitably.
There are so many brands that suck! This article is meant to be a very short guide to perfection - perfecting your brand to help it unsuck.
Marketing finds out what customers need and want through Market Research and gets people to buy the products using the Marketing Mix.
Discounted Payback Period shows the time needed to earn enough profits to repay the original cost of the investment considering discounting.
Net Present Value (NPV) shows the numerical cash value return from the investment project with taking discounting into consideration.
Discounting is the process of bringing to the present value the future Net Cash flows that will occur during the lifetime of the project.
Compounding is the process of accumulating interest in an investment over time to earn more interest. Interest remains in the bank.
Average Rate of Return (ARR) gives the annual Net Cash Flows (or net profits) from a project as a percentage of the initial cost of the investment.
Payback Period (PBP) gives the length of time required for Net Cash Flows (or net profits) to pay back the initial capital cost of the investment.
Appraising investments is a part of the Capital Budgeting Cycle. Investment Appraisal helps to determine the best investment for a business.
No professional business manager can afford to ignore other qualitative factors of Investment Appraisal in addition to quantitative factors.
Investment Appraisal assesses attractiveness of different capital projects. Projects usually involve a high expenditure and cannot be reversed.
Internal Rate of Return (IRR) of An Investment
BUSINESS MANAGEMENT, FINANCE and INVESTMENT APPRAISAL
Internal Rate of Return (IRR) shows the actual percentage rate of return from the investment considering discounting.