BTEC Business Unit 3 Exam Questions And
Answers. Verified And Updated.
The message in advertising - Answer✔what the communication needs to say
The medium in advertising - Answer✔get the message across to potential or current customers
(target market)
penetration pricing - Answer✔setting a low initial price on a new product to appeal
immediately to the mass market
Skimming pricing - Answer✔setting the highest initial price that customers really desiring the
product are willing to pay
Cost plus pricing - Answer✔adding a standard markup to the cost of the product
Competitive pricing - Answer✔occurs when producers sell products at lower prices to lure
customers away from rival producers, while still making a profit
Premium pricing - Answer✔Pricing the highest-quality or most versatile products higher than
other models in the product line
Moving image pro and con - Answer✔Can be seen by a wide audience
can be very costly not really suitable for small businesses
Print pro and con - Answer✔can be used as a referral for customers
can be ignored by potential customers
Ambient (public places) pro and con - Answer✔can be seen by a wide number of people in a
chosen area
might not be seen by target market
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digital pro and con - Answer✔can be easily posted and targeted to specific people
can be expensive to be on some websites
Audio pro and con - Answer✔can be targeted at specific area depending on where you play it
cannot be referred back to as its live
factors which determine choice of advertising method - Answer✔type of product, cost and
characteristics of target market
Sales promotion - Answer✔incentives to persuade current and potential customers to buy
Purpose of sales promotion - Answer✔to attract new buyers, maintain customer loyalty, sell of
older or less fashionable products
methods of sales promotion - Answer✔coupon, free sample, competition, money off/
discounts, loyalty incentives, BOGOF
factors when deciding most suitable sales promotion method - Answer✔Size of enterprise as
big businesses can take an impact on profit to get customers
type of product as some are more suitable than others
the product life cycle as sales promotion can reduce profits so you need to decide best time to
use them
Product lifecycle - Answer✔introduction, growth, maturity, decline
what sales promotion best for introduction - Answer✔BOGOF, free samples and coupons to
create customer base
what sales promotion best for growth - Answer✔money off vouchers to increase size of market
what sales promotion best for maturity - Answer✔loyalty incentives to encourage customers to
buy product
what sales promotion best for decline - Answer✔BOGOF and discounts to get rid of surplus
items
personal selling - Answer✔enterprise contacts potential customers directly
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