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1. Marketing
Marketing is the process of planning, designing, pricing, promoting and distributing ideas, goods and services, in order to satisfy customer needs, so as to make a profit.
2. The Main Factors Affecting the Size of a Product's Target Market
► characteristics of the human population, such as age and income levels;
► geography. For example, the demand for spicy foods is higher in southern china than in other areas;
► economic factors, such as economic growth. During a recession, firms may promote necessities rather than specialty products;
► changes in social values, such as a decline in demand for products perceived to be unhealthy.
3. The Main Steps Involved in Creating a New Product
► develop a product idea, which may be in response to changes in consumer needs or preferences;
► assess the feasibility of the product idea, which entails comparing the expected benefits with the costs of the product;
► design the product and test it with some consumers in the target market;
► distribute the product so that it is accessible to the target market, and promote the product to ensure that consumers are aware of it;
► post-audit the product to determine whether the product needs to be revised in any way.
4. Some Common Methods Used to Differentiate a Product
► unique design, in which the product produced is safer, more reliable, easier to use, or has some other advantages;
► unique packaging, which can enhance convenience or contain advertising;
► unique branding, which may enhance consumers' perception of the product's quality.
5. The Key Factors that Influence the Pricing Decision
► cost of production, so the price charged can recover costs incurred;
► inventory supply, so the price can be lowered to remove excess inventory;
► prices of competitors, so the price may be set below those of competitors to gain an advantage (penetration pricing) or above those of competitors to create an image of high quality(prestige pricing).
6. Other Pricing Decisions
► discounting, which involves deciding whether to give discounts to specific customers;
► sales prices, which entails deciding whether to put some products on sale for all customers periodically, and what the sales price should be;
► credit terms, which involves deciding whether to provide credit to large customers that buy the product in bulk, and what the credit terms should be.
v. 估定，評定
