Commercial Practise Flashcards
Define Commercial Practise
How companies conduct their bussiness
What are the different sections of commerical practise?
Marketing Product development Human Resources Advertising Promotion.
Define Marketing
Finding out the needs of the consumer and trying to meet those needs through services and products
Define technology push
When demand forces new innovative designs to solve the demands.
Define Market Pull
The needs and cries of the consumer encourage designers to create products and servies to solve this problem e.g. 3D printing, electric cars, 3d TV’s
Define Inbound marketing
Information that the company recieves via the consumer.
Examples of primary inbound marketing
Focus groups
Interviews
Surveys
Observations
Advantages of primary inbound marketing
Tailored to a companies needs
Up-to-date information
Disadvantages of inbound marketing
Time consuming and expensive.
Examples of secondary inbound marketing
Reaserch conducted by outside agencies
Advantages of secondary inbound marketing
No specific company needed
Quick to collect
Cheaper than primary reaserch
Disadvantage of secondary inbound marketing
Maybe out of date.
Define outbound marketing
Companies that send information out to the public about products i.e. price
What is outbound marketing split into?
Product
Price
Promotion
Place
What entails Product in outbound marketing?
What will it look like how will it perform maintenance durability features Brand name
What entails Price in outbound marketing?
How much is the consumer willing to pay
manufacturing costs
distribution costs
promotional costs
penetrating pricing- price set low to gain market share
Price skimming- competitive products can command a high price which is reduced with increased supply e.g. electronics
Psychological pricing i.e. £1.99 instead of £2.00
Predatory pricing- undercutting competitors
What entails Promotion in outbound marketing?
Advertising
Offers (BOGOF) and competitors
Exhibitions and fair trade
Sales representatives.
What entails Places in outbound marketing?
Refers to the location where the consumer gets the product
What are the four main distribution channels
Manufacturer- Consumer e.g. mail order, farm shop
Manufacturer-retailer- consumer e.g. high street stores
Manufacturer-wholesaler-retailer-consumer e.g medium size convenience stores
