BTEC Business Unit 3 Question and Answers Explained

BTEC BUSINESS UNIT 3 QUESTION AND ANSWERS EXPLAINED The message in advertising Ans - what the communication needs to say The medium in advertising Ans - get the message across to potential or current customers (target market) penetration pricing Ans - setting a low initial price on a new product to appeal immediately to the mass market Skimming pricing Ans - setting the highest initial price that customers really desiring the product are willing to pay Cost plus pricing Ans - adding a standard markup to the cost of the product Competitive pricing Ans - occurs when producers sell products at lower prices to lure customers away from rival producers, while still making a profit Premium pricing Ans - Pricing the highest-quality or most versatile products higher than other models in the product line Moving image pro and con Ans - Can be seen by a wide audience can be very costly not really suitable for small businesses Print pro and con Ans - can be used as a referral for customers