T Level management and administration

Question 1

How is pricing strategies beneficial to a training company?

Answer 1

• Impacts target audience.
• Impacts audience size.
• Significantly impacts profits.
• Impacts amount of potential returning customers.

Question 2

What are the pricing strategies ?

Extension - define each pricing strategy

Answer 2

1. Penetration pricing - Set low price when enters the market.
2. Cost-based pricing - Marked up percentage based on cost of product/ service.
3. Psychological pricing - £3.99 better than £4.00.
4. Competitor based pricing - Same rate as competitors/ going rate.
5. Price skimming pricing - Set price high before new competitors enter market.

Question 3

Why is a pricing strategy important?

Answer 3

• Allows company maximise profits.
• Remain competitive.
• Enhance customer perception + encourage loyalty.

Question 4

What impact does pricing strategy have on a business?

Answer 4

• Affects how customers perceive products.
• Considers competitors analyses.
• Aids in maximising sales + profitability.

Question 5

Name 3 Economic trends

Answer 5

• Unemployment.
• Interest rate changes.
• Taxes.
• Rate of inflation.
• Changes in exchange rates.
• Technology development.

Question 6

Name 3 Market trends

Answer 6

• Age, Gender, Culture.
• Changes in fashion.
• Product life cycle.

Question 7

Name 3 Social trends

Answer 7

• Public opinion.
• Technology.
• Social media.
• Changes in lifecycle

Question 8

Name the 3 main trends

Answer 8

1. Economic
2. Market
3. Social

Question 9

Define market map

Answer 9

Tool used to identify potential gaps in market with references to price + quality.

Question 10

Describe what a market map looks like

Answer 10

Horizontal cross with high price at the top, low price at the bottom, low quality to the left and high quality to the right.

Question 11

Why is a market map important?

Answer 11

Valuable tool for business looking gain insight into competitive landscape, identify market trends, develop strategic plans.

Question 12

Why is market mapping useful?

Answer 12

• Allow complex information to be conveyed in simple + understandable way.
• Displayed as graph, makes easy to see where gaps in market exist.
• Helps communicate ideas + data to others more effectively.

Question 13

Describe marketing plan

Question 14

Name the 4p’s

Answer 14

• Price.
• Promotion.
• Place.
• Product.

Question 15

What is being looked at in a competitor analysis?

Answer 15

• Pricing being offered.
• location.
• Website and social media.
• Comparison tools will help this.
• Sales + offers.

Question 16

What is a market plan?

Answer 16

• Set of actions which help show how business will market the product and/ or service.