i&s business test
Needs: Something a customer requires to maintain a good standard of living
Wants: Something that a customer does not require, but desires to own.
Four factors of production: land, labour, capital, entrepreneurship
Entrepreneur: A person who founds or sets up a business
Product: An item offered for sale
Fast-moving consumer goods: non-durable goods that are typically sold quickly and at a relatively low cost
Consumer perishables: products that have a specified lifetime and deteriorate in quality as time goes on
Consumer durables: products that have a long and useful life after purchase
Specialty products: products by a specific brand that have unique characteristics that make customers more likely to buy them
Price: The cost of a product or service
Cost-plus pricing: a pricing strategy that involves the selling price of a product being determined by a fixed percentage markup
Psychological pricing: slightly decreasing the price of a product to make it seem monumentally cheaper than it actually is (e.g $10.00 to $9.99)
Discrimination pricing: selling identical products to different customers at various prices
Loss leader: when a store places its goods at a price below what they cost to manufacture, to simulate the sales of other, profitable products
Promotion: The marketing and advertising of products
Place: The location where a product or service is produced or sold
Product life cycle:
R&D - pre-production of product, investigation into market trends and customer needs/wants is taking place
launch - product is released into the world
growth - product begins to gain traction and slowly increases in popularity, sales increase
maturity - product has been out for quite some time now, sales are consistent and high
decline - product begins to decrease in popularity, sales slow and less frequent