Business - Theme 1 (MM #2)

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  • 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.
      • 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

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