3 Flashcards
What i Sponsorship?
Sponsorship is any commercial agreement whereby the sponsor provides financial or other support in return for the right to associate its brand or products with the sponsored event.
What are Public Relations?
The practice of managing how information about an individual or company is shared with the public and media. It aims to create a positive image for the company.
What is sales promotion
A short-term encouragement to customers: to buy , to build customer loyalty or to introduce new products onto the market.
Give some examples of sales promotion
Price reductions, Competitions, Loyalty Cards, Free Samples
What is advertising
Advertising refers to the process of drawing attention to a product, brand or company
What are the 2 types of advertising?
Informative and Persuasive
What are the objectives of promotion?
- Retain customers
- Obtain New Customers
- Increase customer awareness
- Make Sales
What is an agent?
Agents are used in export markets where they have detailed knowledge of local markets, major customers and trading conditions
Give an advantage / disadvantage of using agents
Adv - An agent can cover a new geographical area without requiring the business to set up an office.
Dis - An Agent handling several products may not give sufficient attention to your product
Advantages of using wholesalers
- Bulk Purchasing
- Breaking Bulk
- Provide Storage Facilities
Disadvantage of using wholesalers
They require a profit margin, therefore adding to the total price
What do retailers provide?
- Variety + Convenience
- Promotion
- Product Info + Advice
- After-Sales Service
Name the different types of distribution chains
Manufacturer > Customer
Manufacturer > Retailer > Customer
Manufacturer > Wholesaler > Retailer > Customer (Traditional Method)
What is cost- plus pricing?
This involves setting a price by calculating the average cost of producing a good and adding a markup for profit
What is skimming/creaming pricing?
It involves charging a high price for a new improved product for a limited period (with the aim of gaining as much profit as possible) before it is sold to a wider market at a lower price
What is phsychological pricing?
When businesses set slightly lower prices in order to influence the customers decision, making the product seem like its good value for money
What is destroyer/predator pricing?
It involves cutting prices to a very low level, for a period of time, long enough for rivals to go out of business. (its aim is to eliminate existing competition or prevent new firms from entering the market)(illegal)
What is penetration pricing?
This is when a new product is being introduced to an already competitive market. Prices are set at a low level initially and then raised as consumer loyalty is built up
What is competitive pricing?
When a firm sets its price at a level which is at, or just below, the price charged by its main competitors
What are some approaches to product development?
Ideas from: Customers, Competitors, R&D, Staff
What influences the products a firm chooses to produce?
- Approach of the business
- Technology
- Competitors Behavior
- Financial Viability
Goods (Tangible Items)
Physical objects that can be seen and touched
Consumer Goods
Goods sold to the general public
Capital Goods
Goods sold to other businesses to be used in the production of their goods an services
