LO4 Flashcards
What factors should you consider when pricing a product?
- Cost of production.
- Income level of target customers
- Price of competitors products
What is competitive pricing?
Setting a price similar to competitors.
What is Price skimming?
Introduce product at high level and then lower it.
What is price penetration?
Introduce product at low level and then lower it.
What is Psychological pricing?
E.g. 0.99, 1.99,2.99.
What are 3 benefits of leaflets?
- Quiet cheap to create.
- Can be targeted to customers in local area.
- Easy to read.
What are 3 disadvantages of leaflets?
- Often thrown away.
- Seen as junk mail.
- Not have a long term effect.
Is social media cheap or expensive to advertise with?
Reality cheap.
Name 2 benefits of advertising using social media:
- Social media can be used to updates customers.
- Allow to reach international market.
- Enable customers to provide feedback:
Name 2 disadvantages of using social media:
- Increase the risk of negative reviews, people can leave fake reviews.
- Social media isn’t successful when targeting an older generation.
- Needs daily monitoring.
Name 2 benefits of websites:
- Reality cheap
- Update customers on new offers.
- Have been proven to increase profits.
- Allow access to International markets.
Name 2 disadvantages of websites:
- Increase the risk of negative reviews, people can leave fake reviews.
- Social media isn’t successful when targeting an older generation.
Name 2 benefits of newspapers:
- Relative cheap to market to local market.
- Easy to market local.
- National newspaper has broader reach.
- Effective for targeting older people.
Name 2 disadvantages of newspapers:
- Advertising in the national newspaper is expensive.
- Not effective for targeting younger generation.
- Most newspaper ads are not targeted.
What is BOGOFF?
Buy one get one for free, a sales promotion technique.
Why is BOGOFF good?
- Encourages sales
- Good way for the consumer to notice the product/service
- Applying to the consumer.
Name 2 benefits of advertising in the newspaper?
- Targeted at a particular audience.
- People tend to keep magazines.
- People often pass on magazines.
Name 2 disadvantages:
- Costs can be very expensive.
- Vast number of adverts in magazines.
- Deadlines for adverts may be months in advance, good business planning is required to ensure adverts are placed in time.
What is point of sale advertising?
-Promotional product used where the product is sold.
How can you retain and attract customers?
- Customer engagement
- Product knowledge
- After sales service.
