AS Level Business Studies

define extension strategies

• planning marketing mix decisions

• marketing plans to extend the maturity stage of the product

• giving each customer the products and services they have indicated

• build customers loyalty

measurable features of a product that can be easily compared with other products

• brand

• product

• intangible attributes of product

• tangible attributes of product

identify benefits of effective USP

• opportunities to charge higher price

• higher sales than undifferentiated products

• products considered to be important to customers

• free publicity from business media reporting on the USP

briefly explain the term market share

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define price elasticity of demand

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factors that determine product elasticity. choose 3

• whether it's a new or existing products

• how many similar competing products or brands

• how necessary the product is

• business and marketing objectives

• the level of customers loyalty

define full-cost pricing

• setting prices based on the variable costs of making a product inotder to make a contribution towards fixed costs and profit

• base its price upon the price set by its competitors

• setting a price by calculating a unit cost for the product (allocate fixed and variable cost)

• setting a price that will give a required rate of return at a certain level of output/sales

• adding a fixed mark-up for profit to the unit price of a product

define the term channel of distribution

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market size

• the percentage change in the total size of a market over a period of time

• the percentage of sales in the total market sold by one business

• the total level of sales of all producers within a market

• the market price that equates supply and demand for a product