Basics
What is a market?
A market is any situation where buyers and sellers come into contact to exchange goods and services for money
What is Sales Promotion
This consists of activities and techniques designed to increase the sales of a product.
Give 1 type or form of customer service
Live chat support. Customers can use live chat support to instant message a service agent on a company's website. • Email support. • Self-service support. • Interactive voice support. • Social media support. • Web commerce support. • On-site support. • Telephone support.
a) warranty; b) after sales service; c) feedback; d) online chat; e) toll free numbers/call centres; f) suggestion box; and, g) surveys
What does Price refer to?
This refers to how much a business will charge for their goods and services.
Give one type of Intellectual Property
Patent
Trademark
Copyright
Trade Secret
What is Social Media Marketing?
This involves the use of social networks such as Facebook and Instagram to promote businesses online.
What is Brand Loyalty?
Brand loyalty is the positive association consumers attach to a particular product or brand.
A loyal customer is one who continues to buy products from a company over a period of time and believes that its products are better than its rivals’.
Give 2 examples of good customer service
Being available to customers • Personal attention to customers’ needs • Providing refunds or exchanges when the product does not work or is not what the customer wanted • Quick and polite service • Training staff to properly assist customers
Name two factors that may affect the price of a product
The Demand for the product
The supply of the materials needed to make the product
The cost of production
The economic state of the market – whether customers can afford the product
What is a Loss Leader?
These are products that are sold by a company at a loss in order to encourage buyers to either purchase other products made by the company or to make future purchases of the good when it is no longer sold at a loss.
For example, printers are often sold at a loss, so that the customer will purchase ink for the printer for several years, which will generate recurring income for the business.
What is Marketing?
Marketing involves identifying and anticipating customer requirements in order to meet these requirements and make a profit
Marketing is the process of bringing attention to a good or service with the goal of making profits
Give an example of how the Price of Substitutes can influence consumer behaviour
When the price of a substitute product is lower, then the demand for the other product often falls. When the price of the substitute is higher, then demand for the other product often rises.
For example, if the price of an Aloo Pie in one location is priced at $8 dollars, and in another location, it is priced at $5 dollars, then the demand for the $8 dollar Aloo Pie is likely to decline
What is warranty?
This is a written guarantee where the supplier sets out that it will replace or repair an item if it proves to be faulty within a given period of time. This gives more confidence to the consumer, who is more likely to make a purchase
Describe Competitive Pricing
Setting a price that enables a business to sell its products competitively (i.e lower than competitors prices)
What is Hire Purchase?
Someone who purchases a good by hire purchase is effectively hiring the good until the final payment has been made.
The individual receives the product and then pays installments until they completely pay off for the product, usually at a higher price
When marketing goods and services, a business may pay attention to the behaviour of its customers/potential customers
What is Consumer Behaviour?
Consumer behaviour concerns the factors that influence consumers to buy one product instead of another, and how this behaviour might change over time.
It answers questions such as:
• Why do consumers make a purchase
• How do consumers make a purchase
• Where do consumers make purchasing decisions and purchases?
Give 4 forms of advertising
• Television advertising • Radio advertising • Online/Website advertising • Social media advertising • Newspaper/Classifieds advertising • Bus shelter advertising • Billboard advertising • Flyers • Mail/Email
Give 2 examples of After Sales Service
• Sending customers coupons for their next purchase
• Online tutorials showing how to use the good or service
• Contacting customers on the anniversary of the purchase to find out if they are still happy with the product and if they want to update it. Providing a maintenance and/or repair service.
• Contacting customers to identify other products that complement the one already sold.
• Providing a helpline to deal with any issues.
Describe Penetration Pricing
Setting a low price in order to gain sales in a market. Typically used for new products of which customers have little awareness
What is Merchandising?
This is the activity of promoting the sale of goods, especially by their presentation in retail outlets.
Merchandising generally involves how a store is arranged in order to maximize the possibility of a sale.
What is the Marketing Mix?
The marketing mix relates to the four key decisions that must be taken in the effective marketing of a product.
These four key decisions are often called the “4 Ps”:
Product, Price , Place and Promotion
List 5 factors that influence consumer behaviour
Factors that influence consumer behaviour: (a) price; (b) price of substitutes; (c) quality; (d) taste; (e) tradition; (f) income (affordability); (g) spending patterns; and, (h) brand loyalty.
Explain the difference between a survey and a suggestion box
A customer survey is a structured list of questions delivered to a representative sample of customers, to find out their views on customer service and to identify their level of satisfaction with a company and its products.
A suggestion box is a way for customers to make suggestions to a company by setting out their ideas and putting them into a box.
What is Price Skimming?
Pricing designed to attract different groups of customers. Pricing will initially be high to capture those willing to pay higher prices, then it will be reduced to capture those who will pay less.
What is the difference between a Patent and a Trademark
A patent is used to prevent an invention from being created, sold, or used by another party without permission. Patents are the most common type of intellectual property rights that come to people’s minds when they think of intellectual property rights protection
Trademarks are another familiar type of intellectual property rights protection. A trademark is a distinctive sign which allows consumers to easily identify the particular goods or services that a company provides.
Some examples include McDonald’s golden arch, the Facebook logo, and so on. A trademark can come in the form of text, a phrase, symbol, sound, smell, and/or color scheme.