Please enable JavaScript.

Coggle requires JavaScript to display documents.

(Price (Value based (Setting a price based on feedback (Advantage:…

- - - - Advantage: Consumers agree with the price and are therefore likely to buy your product
      - Disadvantage: Consumers may not value your product highly
  - - - Advantage: You are not getting undercut by competitors
      - Disadvantage: Operating revenue is close to break even
  - - - Advantage: business has freedom to set the price it wants
      - Disadvantage: consumers may think it is too expensive
  - - - Advantage: Makes people more likely to try the product
      - Disadvantage: The level of revenue may not be much higher than break even to start off with
  - - - Advantage: Hopefully convinces customers who wouldn't have bought the product at all to buy the product
      - Disadvantage: Customers may put off buying the product until it gets cheaper
- - - - The business can claim that they are getting their raw materials ethically. For example... fair trade farmers.
    - - The business can claim they are doing minimal damage to the environment and if done correctly, it can lead to tax breaks and government substitutes.
    - - The business can claim they are doing minimal damage to the environment and if done correctly, it can lead to tax breaks and government substitutes.
        
        If the business is seen as ethical and has a good social and corporate image consumers are more likely to buy from the company.
  - - - A business would chose to make a product with a high cost of manufacture if their target audience is wealthy and they were making a premium product
  - - - There needs to be a balance to how aesthetically/ function based the product is depending on how the product will be used
- - - - Freebies
      - Coupons
      - Premiums
      - Sales staff
  - - - Emails
      - Postcards
      - Database marketing
      - Websites
      - Catalog distribution
- - - - Short channles
        
        Geographically concentrated
        
        Larger orders.
        
        Extensive technical knowledge and understanding by business
      - Long channels
        
        Consumers
        
        Geographically dispersed
        
        Small orders
    - - Short channels
        
        Perishable good
        
        Expenisve good
        
        Complex good
      - Long channels
        
        Durable
        
        Standerdised
        
        Inexpensive
  - - - Producer
        
        Whole saler
        
        Retailer
        
        Consumer
      - Producer
        
        Retailer
        
        Consumer
      - Producer
        
        :
        
        Consumer