Business

What was the Robinson Patman act?

You can’t charge different prices to different customers if that hurts the consumer

What are some variables in violating the Robertson Patman act?

how airplanes can raise the price of their tickets as they run low on seating, or how movie tickets can vary in prices depending on age

What are some examples of a fixed cost?

Things we pay for regardless how much we sell: Insurance, fixed salary, utilities (internet)

What are some examples of a variable cost?

Things that depend on how many units we sell: commissions, electricity, packaging, inventory, gas

on a graph, price goes on the __ and quantity goes on the __

left; bottom

on a graph, fixed cost is usually __ while variable cost is usually __; fixed cost plus variable cost makes what?

a straight line; exponential in growth; total cost (exponential growth)

On a graph, total revenue…

When total revenue exceeds total cost on a graph and they overlap, this is called the break even point- which is good! It means you’re making money. As it exceeds the total cost, you begin making profit.

What is the law of demand?

As demand goes up, so does prince. As prices rise, demand goes down, and as price drop, demand goes up. As prices go up suppliers want to produce more.

What is inelastic demand? I

You can raise the price, and the quantity-demand will stay the same- like concert tickets, insulin, or airplane tickets. If there’s a big change in demand this happens

What is elastic demand?

A small change in price will change the demand, like gas being different per area

What is cost plus?

Your basic markup of an item

cost equals..

selling price x markup percent

selling price=

cost divided by 1- markup percent

What is ‘just in time inventory?’

It improves a business's efficiency by receiving goods only as they are needed in the production process, cutting inventory costs.

Example of global marketing would be..

USMCA, RCEP, and CPTPP

What is USMCA?

a free trade agreement between the United States, Mexico, and Canada that strengthens labor and environmental standards, and support North American economic growth.

What is RCEP?

the world’s largest free trade agreement, linking 15 Asia-Pacific countries

social media marketing offers

qr codes, careers, advertising, and public relations

What are some examples of consumer behaviors?

wants, needs, influences, family/friends

What are Maslow’s hierarchy of needs?

(bottom) physiological → safety → belongingness →esteem → self-actualization

What is a perception map? Be able to draw it out.

shows how consumers perceive different brands, products, or services relative to each other, helping businesses understand their market positioning

What is involved with production?

advertising, selling, and public relations

What are the three main things promotion is supposed to do? What are their ‘stages?’

inform (high in intro stage, lowers to a decline), persuade (steady), and remind (low in intro stage, higher in decline)

What is AIDA?

attention, interest, desire, action

What are some advertising strategies?

comparative (big mac vs whopper), celebrity (endorse), co-op (franchise/chain)

What are some advertising mediums?

TV, radio, internet, newspaper, magazines

What is the rule of 7?

Takes 7 exposures for a consumer to attach to a product

What are some pricing strategies?

standard, skimming, market penetration, competition, discounts

*watch the movie

Decoy pricing is…

Using popcorn as an example, when you have “good” (4$) “better” (7$) “best” (8$) you’d put a decoy price so that “oh, for an extra dollar I’ll buy the best popcorn deal” you use it to drive people to buy a more expensive product

What does PTD stand for?

primary target demographic

What are the disadvantages of social media marketing?

Privacy concerns, hard to control media, negative feedback spreads quickly

**Be able to link the right social media with the primary target demographic

Cognitive dissonance affects marketing through…

regret after purchase

Qualitative vs Quantitative data

How does the film show the power of advertising?

Advertising is everywhere

What were the legal strategies of the movie?

He wanted control fo teh films narrative without the sponosors dictation over product placement