chapter 3
Sustainable competitive advantages are methods by which a business holds on to its customers, in spite of the competition.
what is gross profit?
gross profit is the selling price - the variable cost.
what are the 4 channels of distribution?
intensive distribution
selective distribution
exclusive distribution
integrated distribution
what are the 4 Sustainable competitive advantages?
Developing a unique selling proposition
lowering production cost
servicing a niche market
creating customer loyalty
what is break even point?
the break even point is the number of units that a business must sell at a given price to cover cost.
what are the 3 major types of intermediaries?
importers
wholesalers
retailers
what is a free market?
in a free market, businesses can make profit , which means people can keep some of the money they make.
what is market skimming?
market skimming is setting an initially high price for product or service before competitors enter the market.
what are the 5 specialty channels?
vending machines
the internet
catalogs
telemarketing
television sales
what are the 6 non sustainable competitive advantages?
promotion
placement
quality
benefits of use
price
design features
why do business owners use penetration pricing?
when marketers use penetration pricing, they initially set a low price for their new product or service to attract customers.
what are the 5 main transportation?
trucks
trains
planes
ships
pipelines