Business - Theme 1 (MM #2)
- Created by: molly_.h
- Created on: 13-07-22 15:14
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- Price/Income Elasticity Of Demand
- Price
- Measures the responsiveness of quantity demanded to a change in price
- % change in quantity demanded DIVIDED BY % change in price
- Above 1 is price elastic
- Below 1 is price inelastic
- Price elastic means change in price causes a change in demand
- Price inelastic means demand isn't affected by a change in price
- Income
- Measures the responsiveness of demand to a change in income
- % change in quantity demanded DIVIDED BY % change in income
- Above 1 is elastic
- Below 1 is inelastic
- Income elastic means that demand will change as income does
- Income inelsatic means that demand will remain the same as income changes
- Theme 1
- Product & Service Design
- The Design Mix
- Judges a product on its aesthetics, function and costs
- Aesthetic is about making the product desirable
- Improving the functionality of a product could increase the cost etc.
- Judges a product on its aesthetics, function and costs
- The Design Mix
- Branding & Promotion
- Promotion
- A way for businesses to communicate with customers and potential customers
- There are two types
- ABOVE THE LINE = advertising through media, e.g. tv radio, cinema, internet
- BELOW THE LINE = forms of promotion that doesn't include advertising, e.g. sales, coupons, loyalty cards
- Influences on promotion
- Target audience
- Technology
- Promotion budget
- The message
- Branding
- The brand represents characteristics and personality of the business
- Ways to build a brand
- Exploit USP
- Advertising
- Sponsorship
- The importance of branding
- Build trust
- Makes porduct recognisable
- Adds value
- Allows premium prices to be charged
- Promotion
- Product & Service Design
- Price
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