1. Are you going to buy an existing business/start a new business/open a franchise? 2. Is the industry growing or declining? How will this affect your business? 3. What you need to start your business? eg premises/vehicles Why? 4. How do you propose to finance your business? 5. Key about your dealership: eg name/location Why? 6. What is your unique selling point? eg product features/after-sales Why? 7. What type of vehicle/s are you going to sell? Why? 8. What method of advertising/sales promotion will you use? Why? 9. Will you create a website? Why/Why not? 10. What are the advantages of the dealership’s location? 11. What are the disadvantages of the dealership’s location? 12. Focus on: proximity to the target market and a skilled workforce, price of land, ease of access and space to park. HANDOUT 027: More on the Marketing Mix Task 2 Terms and Explanations Term Supply The total amount of a specific good or service that is available to consumers. Demand A customer’s willingness to go out and buy a certain product. VAT (Value Added A consumption tax applied at each stage of production - based on the value added to the product at Tax) that stage. Duty A payment applied to the import, export, manufacture, or sale of goods. Geo-demographic This determines the type of product that will sell in an area and the price it can be sold at. information (GDI) Business strategies used to set prices: Cost-plus pricing Setting a price by adding a fixed amount or percentage to the cost of making the product. Penetration pricing Setting a very low price to gain as many sales as possible. skimming Setting a high price before other competitors come into the market. Predatory pricing Setting a very low price to knock out the competition.
1. Are you going to buy an existing business/start a new business/open a franchise? 2. Is the industry growing or declining? How will this affect your business? 3. What you need to start your business? eg premises/vehicles Why? 4. How do you propose to finance your business? 5. Key about your dealership: eg name/location Why? 6. What is your unique selling point? eg product features/after-sales Why? 7. What type of vehicle/s are you going to sell? Why? 8. What method of advertising/sales promotion will you use? Why? 9. Will you create a website? Why/Why not? 10. What are the advantages of the dealership’s location? 11. What are the disadvantages of the dealership’s location? 12. Focus on: proximity to the target market and a skilled workforce, price of land, ease of access and space to park. HANDOUT 027: More on the Marketing Mix Task 2 Terms and Explanations Term Supply The total amount of a specific good or service that is available to consumers. Demand A customer’s willingness to go out and buy a certain product. VAT (Value Added Tax) A consumption tax applied at each stage of production - based on the value added to the product at that stage. Duty A payment applied to the import, export, manufacture, or sale of goods. Geo-demographic information (GDI) This determines the type of product that will sell in an area and the price it can be sold at. Business strategies used to set prices: Cost-plus pricing Setting a price by adding a fixed amount or percentage to the cost of making the product. Penetration pricing Setting a very low price to gain as many sales as possible. skimming Setting a high price before other competitors come into the market. Predatory pricing Setting a very low price to knock out the competition.