Theme 1 - 1.3

• Competitive pricing is when prices are similar to competitors.👍
• Product design considers three things: function, aesthetic, and cost.👍
• Companies change products according to the design mix to keep up with social trends.👍
• BeSpoke design personalised products like wedding cakes.👍
• Standard design are products that have a fixed design like bread.👍
• Promotion: Personal selling is a one-to-one selling to the customer, which is an effective way.👍
• Promotion: Direct marketing is highly focused, targeted mail based on previous purchases.👍
• Digital communication: Viral strategies encourage consumers to spread the word about the business, are cost-effective, but it can take a while for the business to get 'viral'.👍
• Digital communication: Consumer-generated content, which includes reviews and content about business, can be read beforehand and positive reviews can be effective, but have bad reviews which could damage a business's reputation.👍
• Digital communication: Mobile communications, including text messages and in-app advertising, can be used for research but there are risks of scams and security risks for customers.👍
• Digital communication: Social media is a low-cost, effective way for businesses to stay informed and can be used to build a brand, but it might not be suitable for older customers.👍
• Digital communication: Online adverts, such as banners and pop-ups. Advantage: powerful tools to deliver information and reach a wide base of customers. Disadvantage: they are not effective as most people don't look at them and the advert may target the wrong customers.👍
• Digital communication: Advergaming, which are games that contain adverts. advantage: accepted by many customers. Disadvantage: they focus on the game and not the advert.👍
• Promotion: Above the line advertisement targets at general population. advantages: reaches everyone, and builds good awareness. disadvantage : not as effective ,expensive on Tv👍
• Promotion: Below the line advertisement reaches a smaller market. advantag: easy to measure, inexpensive. disadvantag: need market research and can be difficult to target diverse cultures.👍
• promotion: Public relations - aims to build relations between business and consumer. Advantage- unpaid communication. disadvantage- long-term if the relation has to last between consumer and business.👍
• Promotion- Sponsorship - is a positive association with the product by celebrity or a sport.👍
• Sales Promotion include Buy one get one free (BOGOF), price discounts, money off coupons, samples/giveaways, special events, and point of sale.👍
• Sales promotion: Price discounts- reducing recommend price Disadvantage: customers may view business as cheap ,causes too many customers get concerned there is something wrong with products. advantage: good alternatives in cost of living crisis
• Money off coupons are an incentive to get new customers and can be obtained through loyalty cards, making them easy to obtain.However it could reduce profit and increase costs if sales aren’t met.👍
• Sales promotion: Special event- organising an event to promote the brand. Disadvantage: expensive to put together. Advantage: creates buzz around the brand and gets people talking about it.👍
• Sales promotion: Samples/ giveaways- giving away small items that are related to the product. Disadvantage: expensive to produce. Advantage: attracts new customers and increases sales.👍
• Own brand products compete with manufacturers brands.👍
• Own brand products can be made by multiple manufacturers so quality may vary.👍
• Rebranding is when the name, symbol, image, slogan, or design is changed to satisfy customers or used in a product decline stage.👍
• Function: the purpose of the product, how useful it is, and if it is fit for its intended purpose
• Aesthetic: how the product looks, such as vintage, retro, or modern
• Cost: the minimum cost at which the product can be manufactured and how cheap it is to produce compared to competitors👍
• product design: Updating technology to increase efficiencies👍
• product desing: waste minimisation - Cutting out waste and making changes in the product to reduce waste👍
• product design: Reuse - products designed to be reused👍
• product design: Recycling👍
• product design: Ethical sourcing - obtaining resources from natural and ethical sources👍
• Pricing:process of pricing is the choice of pricing strategy that a business makes when setting price for product/service��
• types of pricing strategy:

  • cost plus pricing-cost to make product but add on a %
• types of pricing strategy:

  • Skimming pricing-used best in high tech market, cover cost on product, then reduce over time
• types of pricing strategies: competitive pricing-prices similar to competitors👍
• types of pricing strategies: penetration pricing-set prices low for introduction and increase when consumers like product

  +works best with new products

  -consumers may have brought the product regardless of low price
• types of pricing strategies:

  • predatory pricing-cutting prices drastically to drive competitors out of the market +intention to drive competitors out of market -depends on price elasticity of product��
• types of pricing strategies:

  • psychological pricing-prices ending on 99p instead of a pound +ideal for products that want to project high value -high risk, if products have lower prices��