Entrepreneurship, Marketing and Customer Service
This domain tests business ideation, market research, marketing mix, pricing and customer service.
Business basics
A business plan covers product, customer, market, operations, cost, pricing and risk. Segmentation targets a defined customer. The 4Ps are product, price, place and promotion. Break-even quantity = fixed cost divided by contribution per unit; contribution = selling price minus variable cost.
Customer service
Customer service includes enquiry handling, order accuracy, delivery, returns and complaint resolution. CRM records interactions. Service quality is measured by response time, first-contact resolution and repeat orders.
Worked example
Fixed cost is Rs 1,20,000; selling price is Rs 500; variable cost is Rs 300. Contribution = 500 minus 300 = Rs 200. Break-even = 1,20,000 divided by 200 = 600 units. At 800 units, profit = (800 minus 600) x 200 = Rs 40,000. Reasoning: each unit contributes Rs 200 toward fixed cost; after 600 units, contribution becomes profit.
Traps
Do not call markup the same as margin. Do not ignore variable cost in pricing. Do not treat revenue as profit. Do not promise delivery dates without a capacity check. Do not argue with a complaint; log it and resolve it.