Term
| What is innformative advertising? |
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Definition
| Where the emphasis of advertising or sales promotion is to give full information about the product. |
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Term
| What is persuasive advertising? |
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Definition
| Advertising or promotion which is trying to persuade the consumer that they really need the product and should buy it. |
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Term
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Definition
| People who are potential buyers of a product or service. |
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Term
| List 3 advantages of promotion. |
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Definition
| It encourages consumers to try a new product. It encourages new customers to try an existing product. It encourages customers to buy your product instead of a competing brand. |
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Term
| Name 8 different types of advertising media. |
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Definition
| Television, Radio, Newspapers, Magazines, Poster/Billboards, Cinemas, Leaflet, Internet |
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Term
| When should a business use personal selling to promote its products? |
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Definition
| When customers need advice on how their requirements may be met. |
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Term
| What is a channnel of distribution? |
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Definition
| How a product is passed from the place of production to the customers or retailer. |
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Term
| State 6 ways products can be delivered to customers or other businesses. |
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Definition
1.Road haulage
2.Railways
3. Canal and River
4. Sea freight
5. Air freight
6. Pipelines |
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Term
| Using an example, explain why a business might use more than one method of transportation to deliver its products to the customers. |
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Definition
| Not all products should be transported through one method. It depends if it's perishable and what type it is. Sea can be used to deliver to another country and then road once the goods have arrived to that country. |
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Term
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Definition
| The cost of producing or buying in manufacturing the product plus a product mark-up. |
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Term
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Definition
| A pricing strategy where price is set Lower than the competitors' prices in order to be able to enter a new market. |
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Term
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Definition
| Where a high price is set for a new product on the market |
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Term
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Definition
| Where the product is priced in line with, or just below, competitors' prices to try to capture more of the market. |
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Term
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Definition
| where particular attention is paid to the effect that the price will have upon perceptions. |
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Term
| How might pricing strategies change at different times of the year? |
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Definition
| When there are holidays, prices will be lower due to demand, resulting in more sales. |
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Term
| How might pricing strategies change at different stages of the product life cycle? |
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Definition
| If a product is new to the market, the prices should be lower than the competitors' price. During the maturity stage, price should be competitive, and when the sales of product is declining, there should be promotions or discounts. |
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Term
| WHat is meant by a 'loss leader'? Include example of where the term is used. |
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Definition
| First product is sold at a loss and the second complementary product is sold at a high profit margin. |
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Term
| Why do some businesses use loss leaders? |
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Definition
| To make sure cutomers buy the product offered at loss. |
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