business gemma Flashcards
how can a market size be measured?
- by volume
- by value
why doing a market research
- to identify customer wants and needs
- to identify consumer habits
- to find gaps in the market
- to identify the type of competition
how the inflation is measured?
by RPI - retail price index
exchange rates
if export grows
if import grows
- if export grows - currency’s value rises
- if import grows - currency’s value falls
5 pricing strategies + explaination of each
- cost + pricing - unit cost + a little on top
- penetration pricing - low price to appeal
- price skimming - high price to reduce it later
- psychological pricing - 99$ instead of 100$
- dynamic pricing - changes the prices according to demand
7Ps
- product
- place
- promotion
- price
- people
- process
- physical evidence
what makes a product price elastic
- availability of substitutes
- inflation
- interest rates
- little brand loyalty
- expensive good
if elastic PED and price rise
lower total revenue
if inelastic PED and price rise
higher total revenue
if elastic PED and price fall
- higher total revenue
if inelastic PED and price fall
lower total revenue
what happens to inferior goods when incomes rise?
demand for them falls
in what 4 ways a market can be segmented?
- income
- demographics
- behaviour
- location
what are typically 2 axes in market mapping?
- quality
- price
what are the 5 stages of a product lifecycle?
- development
- introduction
- growth
- maturity
- decline
the features of development stage
- high unit cost
- research
the features of the introduction stage
- narrow distribution
- high unit cost
- extensive promotion
- convincing customers to purchase
the features of the growth stage
- gain profitability
- maximising the length of this stage
- high costs
- limited customer takeout
the features of maturity stage
- competitors exit
- max revenue
- oversaturated market
- extension strategies
the features of the decline stage
- still a positive cashflow
- revenue is falling
- obsolete technology
high market share and high market growh product
star
low market share and low market growth product
dog
low market share and high market growth product
question mark / problem child
high market share and low market growth product
cash cow
2 types of goods
- consumer B2C
- industrial B2B
3 types of products
- speciality products - products with a strong preference to
- shopping products - bought less frequantly and require shopping around
- convenience products - everyday goods
3 types of goods
- normal goods
- luxury goods
- inferior goods
what are the 4 stages of economic cycle
- recovery
- recession
- boom
- slump
external factors affecting the business
- economic factors
- social factors
- competitive factors
- technological advancements
- environmental factors
normal, luxury and inferior goods and their YED
Normal good
YED > 0
Luxury good
YED > 1
Inferior good
YED < 0
