business year 12

Question 1

4 ways that markets are segmented

Answer 1

demographic, geographic, psychographic, behavioural

Question 1

product positioning

Answer 1

the image you present your product with

Question 2

what is market based pricing

Answer 2

looking at supply and demand of a product to determine price

Question 3

what is cost based pricing

Answer 3

looking at costs and then establishing a percentage mark up on it

Question 4

what is competition based pricing

Answer 4

based on other businesses prices

Question 5

price skimming

Answer 5

selling at highest possible price during start of product life cycle

Question 6

other name of price points

Answer 6

price lining

Question 7

what are the different distribution channels and how do they differ, with examples

Answer 7

intensive distribution channel saturates the market e.g. groceries, selective provides to a moderate portion of possible outlets e.g. furniture, clothing, exclusive provides to a small number of outlets per geographic area due to usually high costs e.g. luxury brands