Business Flashcards
What is an umbrella brand?
It means that one company own lots of different brands
Name three umbrella brands
Mars, Facebook, Apple, Adidas
What is a product?
A product is a good sold that is tangible (can be physically touched)
What is a service?
A service is a good sold the is intangible
What is product portfolio?
The collection of product and brands owned and operated by a business
Why is price important?
Price is important because it affects the amount of products sold
What is distribution?
Distribution is concerned with getting the products to the right place for consumers and at the right time
What is a distribution channel?
A distribution channel is the route taken by the product as it moves from the producer to the customer
There are 3 ways of distribution. How does the traditional method work?
Producer ——> Wholesaler ——> Retailer ——> Consumer
There are 3 ways of distribution. How does the modern method work?
Producer ——> Retailer ——> Consumer
There are 3 ways of distribution. How does the direct method work?
Producer ——> Consumer
What does FMCG stand for?
Fast Moving Costumer Goods
What are FMCG products?
These are products that got sold in high quantities, generally for a lower price in supermarkets
Give me 3 benefits of new product development
New products invented and other improved
Increase in sales / attract new customers
Competitive advantage
Increase market share
Increase profit
Give me 3 risks of new product development
Expensive and may take time
May affect length of time existing products are popular for
Competitions may react sooner, sales affected
Unsuccessful product may alter/damage brand image
