APPRAISAL OF ASSET VALUATION AS A TOOL FOR MARKETING BUSINESS
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APPRAISAL OF ASSET VALUATION AS A TOOL FOR MARKETING BUSINESS
Chapter one
1.0 Introduction
Marketing is one of the most dynamic, complicated, and challenging aspects of business. Especially given the specialised nature of financial asset (security) marketing.
Indeed, more and more astute financial institutions recognise that a detailed and objective appraisal of assets (securities) is a critical predictor of investor/investment success in the marketing of financial products and services.
The marketing role is critical to any business’s success or failure. It also serves as a critical contact between the organisation and the environment. Service should flow through an organisation like blood does through the body.
Service marketing is the purposeful and methodical planning and implementation of a series of rational activities aimed at satisfying end users of intangible things. Service marketing is focused with the happiness, fulfilment, and joy provided by an organization’s representative to the purchaser of intangible goods.
1.1 Define Customer Value and Satisfaction.
According to Peter Drucker, a company’s first responsibility is “to create customer.” Customers nowadays, however, have a wide range of product and brand options, pricing, and suppliers to choose from. Then comes the matter of how customers make their decisions.
The customer’s estimation determines which offers will provide the most value. Customers maximise their value within the constraints of search costs, knowledge, mobility, and income.
They establish expectations of worth and act on them. Then consumers learn whether the deal met their value expectations, which influences their pleasure and likelihood of repurchasing.
Total customer value can thus be defined as a set of benefits that customers expect from a specific product or service. As a result, the difference between total customer value and total customer cost represents the customer’s delivered value.
1.2 Valuation Models
Defining value is one of the most important challenges for entrepreneurs. This is crucial not only for the individual ready to buy a company, but also for the entrepreneur who is establishing a business and seeking to predict the future value of the organisation.
Finally, identifying value is a critical stage for the entrepreneur going to harvest a venture, whether through sale or taking the business public.
Financial theorists have created numerous approaches that can be used to evaluate a going concern for a large public firm, such as taking the market value of the shares.
Earnings and cash-flow predictions are attainable based on a long history of audited financials. However, valuing a tiny privately held corporation is challenging and unclear at best.
If the obstacles may be overcome in one way or another, we must still deal with the characteristic nature of all investments, which is that they all look the same in the sense that every investment includes the expenditure of resources in the hope of future advantages.
Similarly, every investment has a “opportunity cost” because it requires the owner to pass up another chance. Despite their similarities, investments differ significantly.
They differ on core matters such as the nature of the economic activity engaged, the volume of the outlay, and on such superficial issues as the geographical location of the operation or the identity of the proprietors. Such discrepancies result in distinct investment classes.
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