Business term 4

Skimming

Setting a high price for a new product that is unique or very different from any other product on the market

Penetration pricing

Setting a low price for a new product to attract customers to buy the product

Competitive pricing

Setting a price similar to that of competitors products in the market

Dynamic pricing

Where different prices are paid for the same product at different times

Cost plus pricing

Setting the price by adding a fixed percentage mark up to the cost of making or buying the product in order to make a profit

Wholesaler

A business that buys in bulk from producers and then sells them in smaller amounts

Retailer

A business that sells goods and services to the final consumer

Direct to consumer

Where the product is sold by the producer directly to the final consumer without the need for intermediaries

Promotion

A range of methods designed to encourage interest or raise awareness of products that a business is trying to sell

Sales promotion

Incentives used to encourage short term increases in sales or repeat purchases

Advertising

The methods used by a business to inform customers about its products or persuade customers to buy its products

E-commerce

The marketing, buying and selling of goods over the internet

Marketing strategy

A plan to achieve the marketing objectives of a business using a given level of resources

Product

The process of combining inputs together to turn them into product outputs

Labour productivity

The number of units output produced for every unit of labour input in a given time period

Inventory

The stock of raw materials, work in progress and finished goods held by a business

chanels of distribution

the ways used to get a product from the producer to the final consumer