Revision3 T1 Grade 10

Lulu wants to sell a sparkling cola drink. She checked the prices of Pepsi and Coca-Cola. She decides to make her prices lower than theirs.

 

What type of pricing strategy is Lulu using?

 

• Cost-plus pricing

• Competitive pricing

• Premium pricing

What type pricing strategy involves a business setting a lower price for a short period of time? E.g. buy one, get one free

 

• Premium pricing

  Promotional pricing

  Cost-plus pricing

• Promotional pricing

• Cost-plus pricing

In 2016, the UAE government made price-fixing illegal.

 

 

 

What type of factor influencing price is this an example of?

• Cost of the product

• Laws

• Price of similar products

Sultan wants to sell electronics on the Internet. He needs help with distribution, storage and advertising.

 

Recommend an appropriate type of distribution.

 

• Supermarket

• Online marketplace

• eCommerce website

Aisha’s business sells jewellery in the UAE, Kuwait, Saudi Arabia and Oman. She needs to decide on the best way to distribute her products internationally.

 

What type of factor that affects place decisions is this an example of?

• Perishable products

• Location of customers

• Technical products

What are consumer goods?

 

• Goods that are sold to individuals to satisfy their needs and wants.

• Goods that are transported fast to avoid expiry.

Distribution channels are how a business gets a product from where it is being produced to the consumer. Producers are part of the distribution channel.

 

What is a producer?

• The business making the product.

• A business that sells large quantities of products to other businesses.

Identify a type of advertising.

• Newspapers

• Competitions

• Free gifts

The AIDA model ensures that an advertisement is effective.

 

What does the “I” in AIDA mean?

• Desire

• Interest

• Action

Norah’s Ketchup is established in the market. Many customers have been buying her product for years. Norah wants to have a promotion to get more customers to continue buying her product for years.

 

What is the aim of promotion for Norah?

• Highlight new features

• Challenge the competition

• Increase brand loyalty