Marketing Specialists at Napanee Beer Co

question 30

Essay

Marketing specialists at Napanee Beer Co.developed a new advertising campaign for summer sales.The ads were particularly aimed at sports events where Napanee Beer sold kegs of beer on tap.The marketing group worked for months with a top advertising firm on the campaign.Their effort was successful in terms of significantly higher demand for Napanee Beer's keg beer at sports stadiums.However,the production department had not been notified of the marketing campaign and was not prepared for the increased demand.The company was forced to buy empty kegs at a premium price.It also had to brew some of the lower-priced keg beer in vats that would have been used for higher-priced specialty beer.The result was that Napanee Beer sold more of the lower-priced keg beer and less of the higher-priced products that summer.Moreover,the company could not initially fill consumer demand for the keg beer,resulting in customer dissatisfaction.Use system theory to explain what has occurred at Napanee Beer Co.

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Definitions:

Unlimited Wants

The economic concept that humans have an endless number of desires for goods and services, even if resources for fulfilling those desires are limited.

Entrepreneurship

The act of starting and managing a business venture, along with any of its risks, in order to make a profit and innovate in the market.

Financial Capital

The money, credit, and other forms of funding that businesses use to invest in resources for future growth.

Opportunity Cost

Waiving prospective gains from various alternatives by settling on one option.