2.2.3 Types of non-price competition Flashcards
(4 cards)
1
Q
The impact of marketing on the demand curve: (there’s 3)
A
- Product differentiation
- Advertising and other promotional methods
- Distribution methods
2
Q
What is Product differentiation
A
It involves branding, packaging, advertising and product placement. If product differentiation is successful, it could shift the demand curve to the right, due to the increase in demand from consumers.
3
Q
What is Advertising and other promotional methods
A
Advertising can result in an increase in demand and an increase in the equilibrium price and quantity of the market.
4
Q
What is Distribution methods
A
It allows firms to charge a higher price for their products, so they can maximise their revenue and profit.
