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Essay / Identify Facts and Trends for SBE “Digi-Wave”
A company must act and react to what is happening inside and outside the company. Businesses exist in an external environment. This external environment concerns consumption and production. The economy is one of the main factors related to the costs and prices of goods. What consumers want and need: income, interest rates, exchange rates and inflation rates (Sloman and Boer, 2009). This report undertakes secondary research to identify the facts and trends of our SBE called “Digi-wave”. Why is consumption important? Demand is an unlimited desire of people. Potential consumers constitute a market, made up of people with both the desire and the ability to purchase specific products. Ultimately, all markets are people. Three factors affect demand. (Ken, 2002)* Price of goodsThe price of a good is the most influential factor considered by the consumer. If the prices of certain goods fall, it means that there is more money in the budget to spend on other goods. However, if prices of goods rise, there is less to spend on other goods. It is this reasoning that the prices of other unrelated goods will have an effect on the demand for any product.*IncomeIn general terms, when public income increases, this influences consumer demand. People on low incomes often buy products that they consider inferior to other products that they would prefer but cannot afford.*TasteTaste is the most important influence on demand of the consumer. Tastes include the value of people's ideas, product quality, fashion, morality, and direct preferences. For example, many people will not buy products made in certain countries where human rights are violated (2002, Ken...... in the middle of a newspaper...with a poster and advertisements in student accommodation.Increase awareness among potential users from both customer segments who have never heard of SBE named Digi-wave.*Location StrategyDistribute the products through Hikuwai Plaza in AUT.Wholesalers, retailers and merchants of mass must reach the purchasing departments of organizations.Reference ListSloman, J. and Boer, P. (2009), Prentice Hall New Zealand Ferguson, K. (2002). guide for business students London: PalgraveTrading Economics (2009) /www.tradingnomics.com/Economics/Unemployment-rate.aspx?Symbol=NZDTrading Economics (2009) Retrieved from http://www.tradingnomics.com/Economics/. GDP-Growth.aspx?Symbol=NZD.