Commerce Questions and Answers

Market Skimming Pricing. a pricing approach in which the producer sets a high introductory price to attract buyers with a strong desire for the product and the resources to buy it, and then gradually reduces the price to attract the next and subsequent layers of the market.

Sales promotion is the process of persuading a potential customer to buy the product. Examples include contests, coupons, freebies, gifts, loss leaders, point of purchase displays, premiums, prizes, product samples, and rebates. Sales promotions can be directed at either the customer, sales staff, or distribution channel members (such as retailers).

Utility is a term in economics that refers to the total satisfaction received from consuming a good or service. This include both psychological and physical satisfaction

The marketing concept is the belief that companies must assess the needs of their consumers first and foremost. Based on those needs, companies can make decisions in order to satisfy their consumers' needs, better than their competition.

Selling is an action which converts the product into cash, (possession of the product) but marketing is the process of meeting and satisfying the customer needs. Marketing consists of all those activities that are associated with product planning, pricing, promoting and distributing the product or service