Summarize Spoken Text
Instruction:
You will hear a short lecture. Write a summary for a fellow student who was not present at the lecture. You should write 50-70 words.
Product-focused Market
Transcript
So, in the seller's market, what marketing tends to be is what we call product-focused market. You have the product. If the customers want it, they're going to come to you. In that case, you should develop that product to the best of your ability. You should innovate in that product, you should try to reduce cost and you should really focus on the product. Your business objective in a product-focused market is to sell as much as you can, and profitability from a product-focused market is going to come from volume. Selling as much as you can. In the past when we've studied product focus market, we've shown that profitability is tied to market share. So market share becomes your business objective. And why does market share increase profitability? Because the bigger your market share, the more your revenues. And the bigger your market share, and your volume, the lower the product cost and hence profitability. Higher revenues, lower cost, more profit. That's really the goal of a product-focused market and when you're product-focused, where do you get growth? Will you develop new products based on your product experience or you go to new markets? That's product-focused market.
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Answer:
In the product-focused market, sellers should focus on innovation and quality development of products and the main objective is to increase the selling volume and market share. It has been shown that profitability is tied to market share as the larger market share results in lower cost and higher profit. Then the seller can grow their market by either develop new products or go to new market.Submit
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