Spec Revision

Question 1

Factors determining most appropriate pricing strategy

Answer 1

• number of USP’s/ differentiation
• PED
• level of competition
• strength of brand
• stage in product lifecycle
• costs

Question 2

Ways to build a brand (promotion)

Answer 2

• USP/differentiation
• advertising
• sponsorship
• social media

Question 3

Factors leading to change in demand

Answer 3

• changes in price of substitutes and complementary goods
• change in consumer income
• fashion, tastes and preference
• advertising and branding
• demographics
• external shocks
• seasonality

Question 4

Factors leading to change in supply

Answer 4

• changes in cost of production
• new technology
• indirect taxes e.g. VAT
• government subsidies
• external shocks