Theme 2 - Types of non-price competition - Flashcards in A Level and IB Economics

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Created by: becky.65
Created on: 20-05-17 13:43

What are the two main functions that marketing has in relation to the demand curve?

To shift it to the right so that each and every price in more demanded than before and to reduce PED

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What is non-price competition?

Any way of attracting customer interest other than price

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How can product differentiation make a product more competitive?

Goods and services will be as different as possible from the competition which will make them more price inelastic so price can be increase without harming sales too much

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How can product innovation make a product more competitive?

Technological change can increase profits through R&D as products may be completely new or redesigned to function more effectively

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What are sales promotions?

Short term inducements to buy a product e.g. free offers and samples

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How can advertising and sales promotion make a product more competitive?

They can be used to convince the consumer that specific products are more attractive and acceptable than substitutes. Advertising can be adapted to suit the nature of the product and market to attract the right people

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How can distribution methods make a product more competitive?

They can attract certain market segments e.g. busy people with long working hours will want to buy online

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How can devising appropriate marketing make a product more competitive?

Marketing specialists fit the package to the nature of the product and target market

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Other cards in this set

Card 2

Front

What is non-price competition?

Back

Any way of attracting customer interest other than price

Card 3

Front

How can product differentiation make a product more competitive?

Back

Card 4

Front

How can product innovation make a product more competitive?

Back

Card 5

Front

What are sales promotions?

Back

View more cards

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Theme 2 - Types of non-price competition