World Studies Midterm Revision

E-Commerce

buying/selling of goods and services b/w ppl or buisnesses online

Goods

something that can be used/consumed

Services

an action someone does to help others

The 4 Ps of Marketing

Product (goods/services), Price, Place(where its sold), Promotion(advertising)

They are used to gain the interest of potential customers.

Pricing strategy: Psychological Pricing

Customer thinks price is lower than it really is

Pricing Strategy: Cost plus pricing

Buisnesses makes a profit by marking up product. takes cost of production plus a percentage for the profit

Pricing Strategy: Penetration Pricing

Price intially low then raised over time

Pricingn strategy: Promotional Pricing

prices reduced for short period of time (discounts, special offers, vouchers)

Demand orientated pricing

Price will vary- low if demand is low, high if demand is high

Destroyer pricing

Prices kept low to eliminate competition

Market skimming pricing

Price initially high than gradually lowered

extension strategy: Change product

release new version with new improved features

extension strategy: Change price

lower price to attract new customers

extension strategy: Change place

sell in new countries, regions, or groups to boost sales

extension strategy: change promotion

create new ads/promotion to regenerate interest

extension strategy: change packaging

update packaging to make product look new/improved

extension strategy: change usage

encourage customers to use product in more/new ways

extension strategy: change name

rename the product entirely to make it sound catchier or to get over bad publicity

direct channel

product moves straight from producer to final customer

indirect channel

product passes thru 1 or more intermediaries before reaching final consumer

Dual (hybrid) channel

producer uses both indirect/direct to get goods and services to customers

wholesaler

buys large quantities from producers and sells in smaller quauntities to retailers

retailer

shops (supermarkets, large chains, corner stores)

Agent

acts as a middlemans who connects buyers and sellers but does not own the goods (property agent, art dealer)

retailer role

convenient for customers( producer-wholesaler-retailer-consumer)

wholesalers role

widermarket coverage, cheaper bc they handle storage, delivery, sale, trasnport (produce -wholesaler - retailer-consumer)

producer role

creates the goods, responsible to make the product available to intermediaries/consumer

Advantages of e-commerce for customers

convenient (easy to compare prices and to buy them) , wide variety of goods/services, 24/7 access, give feedback/communication, worldwide availability, quick delivery of products

How do buisnesses set prices (competition, costs, brand image, target market, demand)

• cost of making the product

• quality of the product

• brand image (higher brand image justifies a higher price, Apple, Gucci)

• demand/supply of the product (high demand increases prices)

• affordability to customers

• competition: same price, lower price, higher price = superioir quality (eg Apple)

The Berlin Conference (1884-85)

a meeting of european powers, organized by germany’s otto von bismarck, to regulate european colonization and trade in agrica

• set rules to claim territory

• divide the continent without any african input

• 40 colonies divided b/w 7 european powers

• britain france and germany ended up withtt eh most colonies

• 2 independent states left (Liberia and ehtiopia)

How European powers created borders

• created colonies from many micronations

• called them tribes -negative denoatation (uncivilised, in need of help )

• linguisic, relgiious, political, and cultural difference

• split apart friends and families

• cant fight against colonizers because of their inability to communicate/trust each other

• civil conflicts, social disruptions, econmic dependency/political instability, loss of resources, loss of identity, unequal access to eeducation, healthcare, public goods

B2B (Buisness to Buisness)

buisness trades w/ antoerh buisness. Goods and srvices bought/sold b/w organizations (usually large transactions)

B2C (Buisness to Consumer)

between buisness and consumer - transactions public

C2C

transactions from one consumer to another