8. Marketing

Price elasticity of demand measures the percentage change in quantity demanded divided by the percentage change in price. Income and promotional elasticity use the same logic with a different driver.

Elasticity helps predict how revenue, demand or response may change, but the estimate depends on time period, segment, substitutes and data quality.

If price rises 10% and quantity demanded falls 20%, PED is −2: demand is elastic in that context, so price may reduce total revenue.

Elasticity is not constant across every price or customer group, and correlation in a dataset does not prove the driver caused the change.

Product development involves generating, testing and refining an offer before and after launch. It connects customer need, technical feasibility, cost, risk and the marketing mix.

Testing can reveal usability or demand problems before full commitment, while iterative development can improve fit but delay revenue and consume resources.

A meal-kit firm can prototype packaging, test preparation time with target users and revise the product before scaling production.

A new feature is not innovation unless it creates useful value and can be delivered reliably.

A sales forecast estimates future sales volume or revenue using historical data, market research, trends, seasonal patterns, prices and managerial assumptions.

Forecasts inform capacity, staffing, finance and inventory. Their quality depends on the data, model, time horizon and ability to update when conditions change.

A retailer may combine last year’s seasonal pattern with a planned price change and a competitor’s launch rather than extend a trend blindly.

A precise forecast is not necessarily accurate; uncertainty should be shown and alternative scenarios considered.

A marketing plan sets the target market, objectives, strategy, marketing mix, resources, timing and measures for a campaign or period.

The plan is useful when each choice follows from evidence and supports the others. Review points allow the business to learn rather than defend an outdated assumption.

A plan for a new service can connect segment evidence to a value proposition, price, distribution, promotional message, budget and indicators of trial and retention.

A plan is not a list of promotional activities; it must explain why the mix should achieve the objective.

A marketing strategy is a planned approach to reaching objectives through target choice, positioning and a coherent mix. Different approaches may emphasise production, product, selling, customer needs or societal value.

The approach should fit market conditions, resources, ethics and the organisation’s objective. A strong customer orientation still needs operational and financial feasibility.

A firm with strong engineering may start product-led, then use customer research to refine features and communication when competitors offer substitutes.

Calling a strategy “customer-focused” is not enough; identify how evidence changes the actual decision.

International marketing applies marketing decisions across countries while balancing global consistency with local needs, culture, regulation, language, income and channel conditions.

Standardisation can lower cost and protect a global brand; adaptation can improve relevance and compliance. The choice depends on similarity, risk and the firm’s capability.

A food brand may keep its core identity but change ingredients, packaging language and distribution to meet local regulation and taste.

Entering another country is not simply translating an advert; the whole mix and operating model may need adjustment.