Channels of Distribution
This type of intermediary buys goods in bulk from producers and sells smaller quantities to retailers.
What is a wholesaler?
This strategy sets a low initial price to attract a large number of customers quickly.
What is penetration pricing?
This is the stage where a product is launched, sales are low, and the company spends heavily on advertising.
What is introduction?
This quadrant has high market growth and high market share. It needs investment to stay on top.
What is a Star?
This is the lowest amount per hour that a business is legally allowed to pay a worker.
What is minimum wage?
This is the function of dividing large quantities of goods into smaller, consumer-friendly sizes.
What is bulk breaking?
A luxury watch brand prices its new model very high because it is unique. This is called this.
What is skimming?
This stage is characterized by sales rising quickly, profits increasing, and new competitors entering.
What is growth?
This quadrant has low market growth and high market share. It generates cash to invest elsewhere.
What is a Cash Cow?
This law made it illegal to discriminate against someone in the UK because of their race or ethnicity.
What is the Race Relations Act 1976?
A business that sells products directly to the final consumer is called this.
What is a retailer?
A supermarket sells eggs at a loss to attract customers who will buy other profitable items. This is called this.
What is a loss leader?
This is the most profitable stage where sales peak and the market becomes saturated.
What is maturity?
This quadrant has high market growth but low market share. It is risky but has potential.
What is a Question Mark?
A 58-year-old worker is passed over for promotion because managers think he is "too old." This is this type of discrimination.
What is age discrimination?
This channel involves the producer selling directly to the consumer with no intermediaries.
What is direct distribution? (Producer → Consumer)
A gas station prices gasoline at ฿29.90 instead of ฿30. This is an example of this strategy.
What is psychological pricing?
A DVD player would likely be in this stage of the product life cycle today.
What is decline?
This quadrant has low market growth and low market share. It is often a candidate for being sold off.
What is a Dog?
This is the term for when a worker is fired from their job illegally or without a fair reason.
What is unfair dismissal?
A furniture maker sells 50 sofas to a department store. This is an example of which distribution channel?
What is Producer → Retailer → Consumer?
This pricing strategy is considered predatory and involves dropping prices to force a competitor out of business.
What is destroyer pricing? (or predatory pricing)
This term describes a tactic used to extend the life of a product, such as adding new features or finding new markets.
What is an extension strategy?
A product that has been sold for 30 years, is the market leader, and generates steady profits belongs in this quadrant.
What is a Cash Cow?
This official investigates complaints made by citizens against companies, banks, or the government.
What is an ombudsman?