Comprehensive Business Term 2 Exam Study Notes

Application Interface and Sidebar Navigation

  • Cosmos Category:

    • Books:

      • Don Quixote

      • Thus Spoke Zarathustra (tr Kaufmann) … PDF

    • Movies: (List exists in UI but is collapsed)

    • Music: (List exists in UI but is collapsed)

    • Shows: (List exists in UI but is expanded)

    • Video games: (List exists in UI but is collapsed)

    • Forge: (Checked)

    • AIR FRYER PIZZA: (Capitalized entry)

    • THINGS I WANT THAT COST MOENY: (Specific category for future purchases)

    • Indexes: (Checked)

    • REALM: (Checked)

    • Study: (List exists in UI but is collapsed)

    • My weekly workout: (Section link)

    • Tags: (Section link)

    • Templates: (Section link)

Document Metadata

  • Time Recorded: 9:15 PM9:15\,PM and 9:16 PM9:16\,PM

  • Date: Mon Jul 2020

  • Subject: BUSINESS EXAM TERM 22

  • Battery Level Reported: 80%80\%

Product Life Cycle (PLC)

  • Definition: PLC refers to the stages a product passes through from its introduction to the several stages of its existence in the market.

  • PLC Stages:

    1. Introduction: Represented as the point where the product has "just dropped" in markets. This stage requires extensive advertising to establish a brand image.

    2. Growth: The stage where sales begin to grow.

    3. Maturity: The peak stage of the cycle.

    4. Decline: Described as "the fall off no j cole" (referencing a lack of continued success).

Pricing Strategies

  • Market Skimming:

    • Definition: Setting a high price for a new, unique product.

    • Advantages: The profit earned is high.

    • Disadvantages: Described as "once someone steal ya flow you cooked" (meaning once competitors replicate the product/method, the high-price advantage is lost).

  • Penetration Pricing:

    • Definition: Setting a very low price to attract customers to a new product.

    • Advantages: Attracts customers quickly.

    • Disadvantages: Results in low revenue per unit.

  • Competitive Pricing:

    • Definition: Setting a price similar to the "opp's" (competitor's) product.

    • Advantages: The business can compete on other matters besides just cost.

    • Disadvantages: Requires intense focus, noted as "you gotta lock in tho."

  • Cost-plus Pricing:

    • Definition: Setting a price by adding a fixed amount (markup) to the cost of production.

    • Advantages: It is quick and easy to implement.

    • Disadvantages: The resulting price might be higher than what competitors are offering.

  • Promotional Pricing:

    • Definition: Setting prices of certain products below cost for a short period of time.

    • Advantages: This is a good way of increasing short-term sales.

    • Disadvantages: Profits may be low during the promotional period.

Distribution and Intermediaries

  • Wholesaler: A business entity that buys goods in bulk from producers.

  • Retailer: A business that sells products directly to consumers in small quantities.

  • Distribution Channel: The path or route through which a product is passed from the producer to the consumer.

  • Agent: A person or business appointed specifically to handle the sales of a product or a specific range of products.

Standard Distribution Channel Models

  1. Direct Channel: Producer to consumer.

  2. Retail Channel: Producer > retailer > consumer.

  3. Wholesale Channel: Producer > wholesaler > cnp (consumer).

  4. Agent Channel: Producer > agent > cnp (consumer).

Methods of Promotion

  1. Vouchers: These provide customers with a specific discount on a future purchase.

  2. Reward Schemes: Programs designed specifically to create and maintain brand loyalty.

  3. Competition: Used to engage the public with the brand.

  4. Special Offers: These often involve the use of promotional pricing strategies.

Methods of Advertising

  1. Social Media: Digital platforms used for reach and engagement.

  2. Targeted Emails: Direct communication sent to specific customer segments.