1.3

Question 1

what is a good & service

Answer 1

a physical product/ an active job that fulfils a customers want or need

Question 2

what is the core product

Answer 2

the benefit of the product that makes it valuable to you

Question 3

what is the actual product

Answer 3

the tangible/physical product

Question 4

what is the augmented product

Answer 4

non-physical part of the products that adds value

Question 5

what are the 4 most important features when creating a product

Answer 5

reliability
quality
design
image

Question 6

what are the 3 design mix

Answer 6

aesthetics
function
cost

Question 7

+ & - of resource depletion strategies

Answer 7

+/ save money, more efficient, cut waste, reputation
-/ redesign products, change production, sourcing recycled materials

Question 8

define ethical sourcing

Answer 8

only using materials, components & services from suppliers that respect the environment, workers and trade honestly

Question 9

+ & - of ethical sourcing

Answer 9

+/ USP, build trust in brand, attract ethical investors, motivates
-/ time consuming & costly, must balance profit margins

Question 10

what is e-commerce

Answer 10

the buying and selling of goods and services online

Question 11

what is m-commerce

Answer 11

the buying and selling of goods and services online through a mobile device

Question 12

what is the impact of e-commerce

Answer 12

reduction in the sales for high street stores
access to larger markets

Question 13

what is multichannel distribution

Answer 13

the use of several methods of distribution in order to maximise sales

Question 14

what are the advantages of e-commerce

Answer 14

+/ easy to get data on consumers
access to larger target market
dynamic pricing is easy
can sell products internationally

Question 15

what factors influence pricing

Answer 15

target market
customer expectations
competition
production costs
business objectives

Question 16

what is prestige/premium pricing

Answer 16

pricing at or near high end prices which attracts status conscious customers, often in a niche market and price inelastic

Question 17

what is price discrimination

Answer 17

charging different customers different prices for the same product or service, often used for unique and differentiated products

Question 18

what is cost plus pricing

Answer 18

adding a mark up to the cost of goods and services, ignores price inelasticity

Question 19

what is penetration pricing

Answer 19

sell products at a low price initially to attract customers then slowly increase the price as customers gain loyalty

Question 20

what is price skimming

Answer 20

charge a high price initially to have a high profit margin and show high status and quality then slowly lower the price over time

Question 21

what is promotional pricing

Answer 21

businesses temporarily reduce the price of a product or service to attract prospects and customers and increase demand

Question 22

what is going rate pricing

Answer 22

setting prices that are exactly in line with competition prices

Question 23

what is psychological pricing

Answer 23

business prices products so that customers believe they are paying less than they really are

Question 24

what is distribution

Answer 24

the process of getting products and services to the consumers

Question 25

what are channels of distribution

Answer 25

the paths and businesses used to get the goods from the manufacturer to the consumer

Question 26

what are wholesalers

Answer 26

they take bulk quantities from manufacturers and distribute them to small stores in local areas

Question 27

what are the advantages and disadvantages of wholesalers

Answer 27

+/ wholesalers deal with storage
sells on to smaller companies
-/ charge higher prices
wholesaler has less contact with customers
rely on promotion by the wholesaler

Question 28

define retailers

Answer 28

business or company that sells to the consumer directly

Question 29

what are the advantages and disadvantages of retailers

Answer 29

+/ can be global
better customer care
builds relationship with customers
-/ requires a lot of organization
high costs

Question 30

what is direct distribution

Answer 30

products are sold directly from the manufacturer to the customer

Question 31

what is a product portfolio

Answer 31

the range of products made by a business

Question 32

what are the advantages and disadvantages of a wide product portfolio

Answer 32

+/ target new customers
spreads risk
increased sales
-/ increased advertising
danger of cannibalization
lack of economies of scale

Question 33

what are the stages in the product life cycle

Answer 33

introduction
growth
maturity
decline

Question 34

what is the Boston matrix

Answer 34

star
question mark
cash cow
dog

Question 35

what is a cash cow

Answer 35

low market growth, high market share
profitable products with established brand image

Question 36

what is a star

Answer 36

high market growth, high market share
lots of competition
high revenue and costs

Question 37

what is a question mark

Answer 37

high market growth, low market share
could become a start or a dog

Question 38

what is a dog

Answer 38

low market share, low market growth
not worth investing in
is possible to be profitable in some situations

Question 39

what are the characteristics of mass marketing

Answer 39

caters to almost everyone
no specific customers
lower unit costs
market everyone in the same way

Question 40

what are the characteristics of niche marketing

Answer 40

small subset of the market
products are designed for a specific purpose
inelastic demand
small turnover
less competition

Question 41

what is business to business marketing

Answer 41

trade with other businesses not directly with customers
advertising focuses on information not persuasion
focus on quality

Question 42

why are loyal customers a benefit to a business

Answer 42

recommend your business to others
easier to keep customers than acquire new ones
helps you understand the market in more depth