#commerce/y9/business #todo

Product


  • This is the nature of the goods and services, and also the various product line.
  • It is more than just the product; it includes product positioning, packaging, branding and customer service (eg. warranty and feedback)
  • It is crucial to differentiate the product from the competitor’s version.

Product strategies

  • Product positioning is where your product or service fits into the market, what features make it unique, and why its better than competitors.
  • Product packaging is the development of container (or wrapping) and graphic design of the product. Attractive packaging can lead to a positive impression of the product. It is to preserve, inform, protect and promote the product.
  • Product branding is the name, logo, symbol or design of the product to differentiate from its competitors.

Price


  • Business need to charge the right price to maximise profit. (business goal)
  • If too high, it can lead to lost sales (too expensive). If too low, it might give the impression that it is a cheap product.

Pricing strategies

  • Cost + Margin is when you calculate the cost of product, then add a % of profit (ie. margin)
  • Market price is when you determine the price customers are willing to buy and suppliers willing to sell, ie. supply and demand.
  • Competitors price is when you base your price off your competitors.
  • Discount price

Promotion


  • It is the methods and strategies used to communicate, persuade and remind customers about its goods and services.
  • It aims to attract new customers, increase brand loyalty (reinforce product image) and encourage existing customers to buy more.

Types of promotion

  • Personal selling: Sales assistant will outline the product features and can tailor to meet the customers needs.
  • Sales Promotion: Activities and materials to attract customers like free samples, coupons and loyalty programs.
  • Publicity: Highlight the product features. (eg. blog) Sometimes, negative publicity might be better than no publicity.
  • Advertising: Communicate a message about the product to the public.
  • Sponsorships: Using celebrities to attract potential customers.

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