Diva Recently Graduated with a Degree in Design and Is

question 21

Essay

Diva recently graduated with a degree in design and is eager to start up a business that creates and sells high-quality widgets.She has big dreams, but she also realizes that it will take a few years to establish her reputation and locate buyers.In the meantime, she is anxious to set up her business in a way that minimizes costs and maximizes profits.In that regard, she wants your advice about business models and taxes.More specifically, she wants you to explain how her business will be taxed if she carries on by herself (as a sole proprietor) or if she incorporates a company for that purpose.

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Definitions:

Promotional Mix

The combination of advertising, personal selling, sales promotion, public relations, and direct marketing methods used to reach target customers and achieve marketing goals.

Pull Strategy

A marketing strategy designed to create demand for products directly from consumers, leading retailers to stock the product due to increased consumer demand.

Retailers

Businesses that sell goods or services directly to consumers, often in small quantities.

Push Strategy

A marketing strategy focused on pushing products through the distribution channels to the end consumers by promoting goods to wholesalers, retailers, or directly to consumers.