Discussion question answers: First posts are due on Wednesday of each unit or 5 points will be deducted. There is a minimum word count of 100. Responses: Please respond to the question(s) AND respond to at least one other classmate’s posting. Your answer(s) should be no less than 1 paragraph per question. All responses are due on Sunday of each unit. Questions Do you believe marketing efforts should be to maintain a relationship with current customers or new customers? Why? Select two product names and then evaluate each with respect to the six rules for naming a product.

Marketing strategies

Excellent customer service should be considered part of a company’s marketing strategies. The marketing tactics of the organization are the determinants of whether they draw new customers or not. New customers increase the revenues of the company while old customers retain the revenues or the marketing budget used while obtaining or drawing them (Nas?r, 2015). Therefore, any type of customer for a business is good in terms of profitability. However, the business should be able to identify and focus on the customers who are most valuable for the business. The value of a customer is determined by the size of their purchases to the ease in account management. Hence, businesses should identify these customers, endeavor to build the relationship between them through understanding them and enhancing customer experience and use this portfolio or profile to draw new customers for the business.

Nas?r, S. (2015). Customer Relationship Management Strategies in the Digital Era. Hershey,: IGI Global.

 

Alkax Rabo  – shaving cream

Cutie shave-  shaving cream

The first rule states that the product name should be simple to read and write (Longenecker, Petty, Palich, & Hoy, 2016). Alkax Rabo is not a simple product name but cutie shave is a very simple product name. The second rule, the name should be unique in the market and the industry in order for the product to get the domain and perform well in search. Alkax Rabo is unique to the general market and industry while Cutie shave is not unique in the general market but unique in the industry. The third rule, the name should be short, memorable and punchy. Alkax Rabo is short but a very difficult name while cutie shave is short, punchy and can stick to the public’s memories.

Fourth the name should look good and sound cool. Alkax Rabo does not look good when written and does not sound cool but cutie shave sounds cool and looks good when written down.
Fifth, the name should evoke a feeling, emotion or idea. Alkax Rabo is not emotive or inspiring but cutie shave evokes emotions and inspires one to want to look cute after a shave. Sixth, the name should provide room for growth by being associated with what your objectives are. Alkax Rabo does not associate with shaving cream while cutie shave associates with the shaving cream because of the name.

Longenecker, J. G., Petty, J. W., Palich, L. E., & Hoy, F. (2016). Small Business Management: Launching & Growing Entrepreneurial Ventures. Boston: Justin G. Longenecker, J. William Petty, Leslie E. Palich, Frank Hoy.

 

Major Bond Characteristics

A bond can be described simply as a loan taken by companies from investors. the main characteristics of a bond include;

Maturity

This is the date when the bond’s principal amount will be paid to the company’s investors. Payment will end the bond obligation of the company.

Secured/Unsecured

A bond can be secured or be insecure in nature. The unsecured bonds can also be referred to as debentures whose payments of interest and the return of the principal amount is guaranteed by the issuing company’s credits. Hence, the failure of the company may mean that the investors will not get all their investments back. A secured bond is that in which in case the company is not able to pay their obligation some specified assets can be pledged to the bondholders (Gitman, Joehnk, & Billingsley, 2013).

Liquidation Preference

The liquidation preference is the priorities given by a company to their investors in cases of bankruptcy. The order of preferences in paying after selling off all assets begins with payments to the investors according to debt levels. Senior debt is paid first, then junior debt leaving the stockholders with the leftover (Gitman, Joehnk, & Billingsley, 2013).

Coupon

Coupon is the interest which is paid to the bondholders semiannually or annually.

Tax Status

Tax status of a bond is whether it is a taxable investment or they are tax-exempt. Hence, the capital or the income associated with the bond is not subjected to the federal or state taxation.

Gitman, L. J., Joehnk, M. D., & Billingsley, R. (2013). Personal Financial Planning. Boston: Cengage Learning.