Marketing /

Question 1

Price

Answer 1

Amount charged for the cost of a product

Question 2

Factors influencing price

Answer 2

• Cost of product to make
• Competition
• State of economy
• Quality
• Brand

Question 3

Price skimming

Answer 3

Initially setting a high price to cover R&D costs and lowering it after a period of time, when rivals enter the market

Question 4

Price penetration

Answer 4

Initially setting a low price, usually to try to get customers to try the product

Question 5

Competitive pricing

Answer 5

Setting a price similar to competitors

Question 6

Loss leader

Answer 6

Charging cost or below cost price

Question 7

Cost-plus

Answer 7

Setting a price by adding a mark-up percentage to the cost of manufacturing

Question 8

Place

Answer 8

• Location, where the business is situated

* Distribution channel

Question 9

Distribution channels

Answer 9

How product gets from producer to consumer

Question 10

Direct distribution channel

Answer 10

Producer ——> consumer

• E-commerce

Question 11

Modern distribution channel

Answer 11

Producer —> retailer —> consumer

Question 12

Traditional distribution channel

Answer 12

Producer —> wholesaler —> retailer —> consumer

• small corner shops

Question 13

Promotion

Answer 13

Communicating with potential or existing customers

Question 14

Above the line

Promotion

Answer 14

Promotion using media

• Advertising

Question 15

Below the line

Promotion

Answer 15

Promotion not using media

• Sales promotion

Question 16

Through the line

Promotion

Answer 16

Social media

Question 17

Benefits of using social media

Through the line

Answer 17

• Lots of users
• Easier message spread - direct marketing
• Free
• Quick
• Existing information