Commerce Exam Term 2 Flashcards
What is product differentiation?
Product Differentiation is making yourself different from your competitors
How do companies differentiate their products?
By highlighting the differences between one product and another (makes it more desirable)
Factors that differentiate a product
Hint : 4 pts
Customer Service, Convenience, Value for Money, Social, Ethical and Environmental
How is customer service used to differentiate a product?
The atmosphere, presentation, range
How is convenience used to differentiate a product?
“Quick and Easy” for busy or lazy consumers
How is value for money used to differentiate a product?
A range of different products at different prices
How is Social, Ethical and Environmental used to differentiate a product?
Benefiting and pleasing the community
Why and how do business promote?
To increase revenue by changing a customers behaviour through information or persuasion
Different promotion strategies
Hint 5 pts
Advertising : Paid non personal message sent through a mass medium
Personal Selling : Where a specific person (sales representative) is allocated to inform and influence you on a product
Relationship Marketing : Where the company builds a long-term relationship
Opinion Leader : A person whose opinion is respected and is an influence. Such as musicians and athletes
Publicity : Any free news story about a business
Eg of mass medium
tv, magazines, billboards, etc
Whats market segmentation
When the markets split into groups of common characterisits
Eg of market segmentation characteristics
-Age
-Gender
-Lifestyle
-Location
-Income
-Family
Whats a target market?
The group of people a business is targeting
Why do business have a secondary target market?
It’s a backup in case the primary one starts losing customers
How does a business target young people?
Hint : 5 pts
-Building Brand Loyalty
-Internet and Social Media
-Pester Power
-Psychology and Research
-Buzz Marketing
Legal Rights would include…
Hint : 4 pts
-Full Price Disclosure
-Accurate Information
-Safe
-Guarantees and Warranty is honored
Whats superannuation?
Usually 10% of your income put aside by your employer for when you retire.
How to work out super?
Income x % x 100
Factors Influencing Consumer Decisions
Hint : 9 pts
Price, Convenience, Service, Age, Marketing, Finance, Gender, Environment, Social Media
Different Payment Options
Hint : 7 pts
Credit Card : Money given to you now you have to pay back later
Debit Card : Your money
Direct Debit : Scheduled Bill Payments
Cash : Legal Tender
Paypal : You pay from your chosen source but off paypal site
Layby : Item is put aside and you make scheduled payments until its paid off
Afterpay : Get now pay later
Cheque : Written communication for your financial institution granting a certain person a specific amount of money
