Business Theme 1.3 Flashcards
What are the three main factors in Product Design?
-Function
-Aesthetic
-Cost
4 Different factors of design mix and social trends.
-Design for waste minimalization
-Design for re-use
-Design for recycling
-Ethical Sourcing
What is “Below the line” promotion?
Businesses has direct control over the target or intended audience.
eg. Coupons, loyalty cards.
6 Factors that affect promotion.
-Cost
-Market Type
-Product Type
-Stage in product life cycle
-Competitors promotion
-Legal factors
Ways to build a brand?
-Exploiting a USP
-Advertising
-Sponsorship
-Using social media
Changes in branding due to social trends
-Viral Marketing (Word of mouth)
-Social Media
-Emotional Branding (The practice of using emotions of a customer to build a brand)
6 Different pricing strategies
-Cost Plus ( Add a profit margin in pounds)
-Competitive pricing
-Price skimming
-Penetration pricing (REALLY low price and then increases after ppl buy it)
-Predatory Pricing (Usually monopolies, they offer low prices to drive out the competitors out)
-Psychological pricing (pricing usually at £1.99 instead of £2)
Distribution factors
-Cost
-Convenience
-Coverage
-Control
How can businesses maximise their business coverage?
-Branding
-Sales representatives
-Profit margins
-Brand partnerships
How products get to the end consumer?
-Direct to end consume (zero level channel)
-Producer → Whole saler → Retailer → Consumer (Two level channel)
The role of agent/broker?
They link buyers and sellers.
Business to consumer (B2C)
Selling goods and services directly to consumers.
Business to Business (B2B)
Business selling to other businesses
5 Different extension strategies
-Advertising
-Price Reduction
-Adding Value
-Explore new markets
-New packaging
What is Boston Matrix?
A portfolio of products can be analysed using the Boston Group Consulting Matrix. This categorises the products into 4 different areas based on market share and growth.
