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Growth and Evolution (1.6)

Terms in this set (30)

1. Price; in highly competitive markets, charging products at a lower price may increase sales revenue. In less competitive markets, businesses can charge products at a higher price because there is limited substitutes for the product they offer.

2. Promotion; strategies need to effectively remind, inform, and persuade customers to buy a product.

3. Products; businesses need to constantly innovate to appeal to the market. Appropriate market research to develop new products should also be carried out since a newly launched product may not succeed in the first time.

4. Placement; the more widely available the product is, the more potential customers are in the scope of the business.

5. Credit; 'buy now pay later' method may attract customers from buying the product. However, businesses need to calculate how much credit should be offered as to not disrupt cash flow position.

6. Investment; in areas such as expansion to different locations, or investing in technologies to improve productivity. However, some investments may not pay off and therefore businesses need to carry out investment appraisals to minimize risks.

7. Training; as employees are the ones who will directly interact w/ customers, they need to have confidence, competence, and product knowledge. This can improve customer service, customer loyalty, and sales revenue.

8. Value for money; as customers look for other factors other than price, businesses need to take into account these factors such as after-sales care, social responsibilities, brand image, and quality.