AOS2 product and price

Question 1

product

Answer 1

• a good, service, experience, idea or information that can be offered in exchange for the purpose of satisfying a need or want

tangible v. intangible

Question 2

product positioning

Answer 2

• the development of a product image compared with the image of competing products

Question 3

product branding

Answer 3

• a brand is a name, term, symbol, design or any combination of these that identifies a product.

Question 4

brand packaging

Answer 4

• the development of a container and the graphic design for a product

the packaging helps preserve, inform, protect and promote the product

Question 5

what can influence price?

Answer 5

1. quality and the price of the materials
2. demand for the product
3. perceived quality/ value

Question 6

pricing stategies

Answer 6

percentage mark up - increase to the cost by a fixed percentage i.e 60%

price leadership - following prices set by another business

recommended retail price - price recomended by the wholesaler or manufacture

quotes - often used by trades people. estimates based on cost of labour and materials

price skimming - placing a high price on new products, price is lowered over time. often used to sell new technology

penetration pricing - offering a low price when introducing a new product

premium pricing - setting a high price to increase the perceived value/ quality of a product

Question 7

place

Answer 7

• making the product available to the customer whenever the customer chooses to purchase it

intensive distribution: business saturates the market with its product. customers can shop at local outlets to purchase the product.

selective distribution: only moderate proportion of all possible outlets. the customer is prepared to travel and seek out a specific retail outlet.

exclusive distribution: is is the use of only reatil outlet for a product in a large geographic area. used for exclusive, expensive products.

Question 8

promotion

Answer 8

• the methods used by a business to inform, persuade and remind a target market about its products.

Question 9

the purpose of promotion

Answer 9

promotion attempts to:
- attract new customers
- increase brand loyalty
- encourage new and existing customers
- provide information

Question 10

promotion mix

Answer 10

• the promotion methods a business’ uses in its promotion campaign.

these methods include:
1. personal selling
2. opinion leaders
3. publicity and public relations
4. advertising

Question 11

personal selling

Answer 11

• the activities of a sales representative directed to a customer in an attempt to make a sale

advantage
- message can be modified to suit the individual customers’ needs

Question 12

opinion leaders

Answer 12

• person who influences others
  e.g actors, athletes

advantages - large social media following, well known

disadvantages - businesses imge aligned to their abassador

Question 13

publicity

Answer 13

• any free news story about a business’ products

Question 14

advertising

Answer 14

• a paid, non-personal message communicated through a mass medium.

Question 15

people

Answer 15

• everyone who is involved in the product of a business, whether they are in direct contact with customers or have an indirect connection.

the importance- influence the perception of the business and the G & S they offer

e.g customers,reviews …

Question 16

physical evidence

Answer 16

• everything that customer sees when interacting with a business.

e.g.
1. staff services (information etc)
2. feedback from customers
3. physical state of the premises
4. online website (usability of the website)

Question 17

process

Answer 17

• the flow of activities or mechanisms that take place when there is any interaction between the customer and a business.

process features
- customer wait time to be served
- long ques at checkouts
- are online ordered goods going to arrive on time?
- type of payment
- responding to emails, calls