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DIFFERENTIATED: A targeting strategy in which the company develops two or more marketing mixes to satisfy the needs of multiple segments of the market. Each mix focuses on a specific segment. Sometimes this happens after a firm has used a concentrated strategy in one market and then expands into a new market.

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Lesson 13: The Firm | Unit 2: Objectives Page: 9 of 24

Topic: Real World Firms <=PAGE BACK | PAGE NEXT=>

  • Four alternative objectives:

  • Sales Maximization

  • Some firms might try to maximize their sales, either in terms of quantity or revenue, rather than to maximize profit.

  • Owner Utility

  • The owners or entrepreneurs of a firm seek to maximize profit because this generates income that can be used to acquire wants-and-needs satisfying goods and services.

  • Employee Utility

  • A firm's profit might also be sacrificed to enhance the utility of employees.

  • Social Responsibility

  • A firm might be motivated to forego profit in the pursuit of a "better" society.

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CAPITAL CONSUMPTION ADJUSTMENT

The official item in the National Income and Product Accounts maintained by the Bureau of Economics Analysis that measures the macroeconomy's capital depreciation during a given time period, usually one year. The capital consumption adjustment (CCA), which is also commonly termed the capital consumption allowance (also conveniently abbreviated CCA), is subtracted from gross domestic product (GDP) to calculate net domestic product (NDP). The CCA is also subtracted from gross private domestic investment to calculate net private domestic investment.

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Today, you are likely to spend a great deal of time browsing through a long list of dot com websites wanting to buy either a rim for your spare tire or decorative celebrity figurines. Be on the lookout for attractive cable television service repair people.
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There were no banks in colonial America before the U.S. Revolutionary War. Anyone seeking a loan did so from another individual.
"Never confuse a single defeat with a final defeat."

-- F. Scott Fitzgerald, writer

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