1.3 marketing mix and strategy

Question 1

In the Boston matrix what is Dog ?

Answer 1

Low market share/low growth market

Question 2

In the Boston matrix what is a question mark ?

Answer 2

Low market share/high growth market

Question 3

In the Boston matrix what is Star?

Answer 3

High market share/high growth market

Question 4

In the Boston matrix what is Cash cow?

Answer 4

High market share/low growth market

Question 5

Name the 6 main promotional methods

Answer 5

-Social media
-Product placement
-Sponsorship
-Public relations
-Sales promotion
-Advertising

Question 6

Why is choice of advertising platform important ? (2 points)

Answer 6

-To make sure adverts have the maximum impact
-To make sure the business reaches the right target market

Question 7

What are the 3 main elements of the design mix ?

Answer 7

-Function
-Aesthetic
-Cost

Question 8

What is PR ?

Answer 8

-(Public Relations) involves the managing of spreading information about a business
-e.g the use of newspaper editorials

Question 9

Give examples of sales promotions (6)

Answer 9

-Point of sales displays
-Value for money offers (Buy 1 get one free)
-Samples
-Discount coupons
-Free gifts
-Competitions

Question 10

What is the promotional mix ?

Answer 10

The promotional mix is the combination of differently promotional methods that a business uses.
-e.g a business may advertise largly through a T.V, but also do some social media advertising

Question 11

What are the 5 main factors influencing the promotional mix ?

Answer 11

-Competitor actions
-The nature of the product or service
- Target market
-Nature of the market
-Finance available

Question 12

What are the 4 key factors that influence a businesses pricing decisions ?

Answer 12

-Costs
-Product life cycle
-Nature of product
-Degree of competition

Question 13

Price skimming definition
Why is it used ?

Answer 13

-Price skimming is a method where a business sets a high initial price then gradually lowers it over time.
-It is used to try a and maximise revenue

Question 14

+ and - of Price skimming

Answer 14

+ can help recover the costs of research and development stage of the product
- Can slow down the growth of the product which can give competitors more time to launch their product/service

Question 15

Price penetration definition

Answer 15

Price penetration is where a business tries to increase market share by offering a low initial price.

Question 16

Loss leader definition

Answer 16

Loss leaders are products/services that are sold by a business at a price where the business makes a loss.

average revenue<average price

Question 17

Cost plus pricing definition

Answer 17

Where a business charges the customer service based what it costs to produce the product or service.

Question 18

Competitive pricing definition

Answer 18

when a business sets its prices for products/services based on what other businesses in the market are charging

Question 19

disadvantages of behaving ethically

Answer 19

-cost increase
-may lead to selling price increase
-reducing competitiveness

Question 20

advantages of behaving ethically

Answer 20

-increase in brand reputation
-could create USP

Question 21

what is a distribution channel ?

Answer 21

a way in which a business can distribute their product

Question 22

name 3 distribution channels

Answer 22

• manufacturer-wholesaler-retailer-costumer
  -manufacturer-retailer-costumer
  -direct-consumer

Question 23

wholesaler drawback

Answer 23

-businesses have less interaction with customers - can lead to worse customer service
-they take a cut of business profits

Question 24

what do wholesalers do ?

Answer 24

wholesalers sell products in bulk to a network and then retailers sell the products to customers

Question 25

wholesaler advantages

Answer 25

-large network of buyers
-businesses can reach a lot of customers quickly

Question 26

retailer definition

Answer 26

a shop that sells directly to the customer in small quantities

Question 27

features of direct to customer distribution channels + -

Answer 27

+technological advances have made it easier
-not as easy to reach consumers as when using a wholesaler

Question 28

what are the 6 stages of the product life cycle

Answer 28

-research and development
-introduction
-growth
-maturity
-saturation
-decline

Question 29

4 main extension strategies

Answer 29

-advertising
-changing the market
-adding more features
-update packaging or rebranding

Question 30

factors influencing decision on the marketing mix (4)

Answer 30

-business marketing objectives
-target market
-the presence and size of competitors
-the type of product

Question 31

methods that will help build customer loyalty (3)

Answer 31

-good customer service
-loyalty schemes
-a strong brand

Question 32

name the 4 p’s

Answer 32

-product
-price
-place
-promotion