Business 2.2 Flashcards
Aesthetic
how things appeal to the senses;
do they look great, smell good, feel nice, sound
solid
Economic manufacture
making the product
cheaply enough to make it profitable.
Extension strategy
an attempt to prolong
sales of a product for the medium to long term,
to prevent it from entering its decline stage.
Function
how well the product or service
works for the customer; for example, are
the beds comfortable at a hotel; does the
smartphone take sharp photos?
Product differentiation
the extent to which
consumers see your product as being distinct
from its rivals.
Product life cycle
the theory that every
product goes through the same four stages of
introduction, growth, maturity and decline.
Profit margins
profit as a percentage of the
selling price (one unit) or as a percentage of
total sales revenue (for the business as a whole).
Branding
giving your product or service a
name that helps recall and recognition, and
gives a sense of personality.
E-newsletters
regular updates on the
activities of a business sent electronically to
actual or potential customers.
Promotional Strategy
a medium- to long-term
plan for communicating with your target
customers.
Sponsorship
when companies pay to have a
brand associated with an iconic individual or
event (usually connected with sports or the arts).
Viral advertising
when people start to spread
your message for you through social means, be
it word of mouth or via social media.
Distribution
how ownership changes as a
product goes from producer to consumer.
E-tailor
an electronic retailer; in other
words purchasing electronically, either by
e-commerce or, more likely these days, mobile
commerce (m-commerce).
Retailer
a shop or chain of shops, usually
selling from a building in a high street or
shopping centre.
