13.

Differentiate between a business market and a consumer

market?
Business market:
-In business market demand is organization.
-In business market byer purachase in arge !oume.
-In business market customers are fewer.
-in business market "utation is needed.
#onsumer market:
-In consumer market demand is indi!idua.
-In consumer market buyer purchase in sma !oume.
-In consumer market consumers are many.
-In consumer market purachase take pace Directy.
1$. #oncept of a consumer and a costumer?
#ustomers:
% customer is someone who buy ser!ices or product to be use for his Business & 'hop or other.
% consumer is one who buy product or ser!ices for use.
(or ).g:
% 'howroom owner purchase car from car manufacture then showroom is #ustomer.
% *erson buy car for his persona use from showroom then he is #onsumer.
1+. *enetrating price and skimming price?
Penetration pricing :
Penetration pricing is a pricing strategy where the price of a product is initially
set at a price lower than the eventual market price, to attract new
customers. The strategy works on the expectation that customers will switch
to the new brand because of the lower price. Penetration pricing is most
commonly associated with a marketing objective of increasing market share
or sales volume, rather than to make proft in the short term. The price will
be raised later once this market share is gained.
'kimming price:
*rice skimming is a pricing strategy in which a marketer sets a reati!ey high price for a product
or ser!ice at first& then owers the price o!er time. It is a tempora !ersion of price
discrimination,yied management. It aows the firm to reco!er its sunk costs "uicky before
competition steps in and owers the market price.
13. Differentiate between a business market and a consumer
market?
Business market:
-In business market demand is organization.
-In business market byer purachase in arge !oume.
-In business market customers are fewer.
-in business market "utation is needed.
#onsumer market:
-In consumer market demand is indi!idua.
-In consumer market buyer purchase in sma !oume.
-In consumer market consumers are many.
-In consumer market purachase take pace Directy.
1$. #oncept of a consumer and a costumer?
#ustomers:
% customer is someone who buy ser!ices or product to be use for his Business & 'hop or other.
% consumer is one who buy product or ser!ices for use.
(or ).g:
% 'howroom owner purchase car from car manufacture then showroom is #ustomer.
% *erson buy car for his persona use from showroom then he is #onsumer.
1+. *enetrating price and skimming price?
Penetration pricing :
Penetration pricing is a pricing strategy where the price of a product is initially
set at a price lower than the eventual market price, to attract new
customers. The strategy works on the expectation that customers will switch
to the new brand because of the lower price. Penetration pricing is most
commonly associated with a marketing objective of increasing market share
or sales volume, rather than to make proft in the short term. The price will
be raised later once this market share is gained.
'kimming price:
*rice skimming is a pricing strategy in which a marketer sets a reati!ey high price for a product
or ser!ice at first& then owers the price o!er time. It is a tempora !ersion of price
discrimination,yied management. It aows the firm to reco!er its sunk costs "uicky before
competition steps in and owers the market price.
!. "i#erentiation and "iversifcation $
Product "i#erentiation:
Product "i#erentiation, often known as just
"i#erentiation, is the process of distinguishing a
product from others already in the market, especially
the competition. The aim is to make it more
appealing to the target market at the same time.
Product "i#erentiation is about highlighting the ways
in which a product is di#erent from another, in order
to create that sense of value. The areas of
di#erentiation include %uality, price, functions,
design, characteristics, advertising and availability.
Product "iversifcation:
Product "iversifcation is the modifcation of a product
or service to reach a more expansive target market.
&nlike Product "i#erentiation, this isn't about
highlighting anything( rather it is about fnding a
new section of the market to attract. This bid to lure
new consumers in is usually done by using pre)
existing brands, or in some cases creating a new
brand. The downside to Product "iversifcation is
that any poor reputation or failures will also
associate themselves with the original brand.