1.3 marketing mix

Question 1

What is the marketing mix?

Answer 1

Product
Price
Place
Promotion

Question 2

What is the design mix?

Answer 2

Functions - purpose
Aesthetics - appeal
Costs - affects price point

Question 3

What are two current changes in the design mix to reflect social trends?

Answer 3

Changes as a concern due to resource depletion

Changes about ethical sourcing

Question 4

What is promotion?

Answer 4

This is a crucial role in generating customer awareness, interest and desire

Question 5

What are the types of promotion?

Answer 5

Digital communications
Sponsorship
Public relations
Advertising
Sales promotion

Question 6

What are the types of branding and definition ?

Answer 6

Product branding - unique name eg coca cola
Own brand product - retailers name
Manufacturer branding - compant name or logo eg nestle

Question 7

Advantages of corporate branding ?

Answer 7

Strong brand recognition
Leverage existing reputation
Economies of scale

Question 8

Disadvantages of Corporate Branding

Answer 8

• If a company’s reputation is damaged by a product it can have a negative impact on all the products offered under that brand
• If the company faces intense competition in one market 9e.g smartphones), it may affect the sales of all the products offered across other markets (e.g laptops and desktops)

Question 9

Advantages and disadvantges of product branding?

Answer 9

Distinct identity
Market different products to different segments of the market
Customer loyalty

Create a new brand for each product
Might not satisfy consumers

Question 10

The Advantages & Disadvantages of Own Brand Products ?

Answer 10

Advantages
- retailers differentiate themselves
- lower costs
- loyalty as products are exclusive

Disadvanatges
- lower perceived quality

Question 11

How do you build a brand?

Answer 11

By developing unique selling points (USPs)
Through advertising
Through sponsorship
Through the use of social media

Question 12

What are the changes in branding to reflect social trends?

Answer 12

viral marketing, the use of social media, and emotional branding

Question 13

What is cost plus pricing ?

Answer 13

The business calculates the cost of production and then adds a markup to determine the final price

Question 14

What is price skimming?

Answer 14

The business sets a high price for a new product/service when it is first introduced to the market

Question 15

What is this pricing strategy when they set a low price on introduction?

Answer 15

Penetration

Question 16

What is predatory pricing?

Answer 16

The business sets prices so low that it drives its competitors out of the market

Question 17

What is competitive pricing?

Answer 17

The business sets its prices based on its competitors’ prices

Question 18

What is psychological pricing?

Answer 18

This pricing strategy takes into account the customer’s emotions, beliefs, and attitudes towards the product/service

Question 19

What factors influence the choice of pricing ?

Answer 19

usp
ped
competition
strength of brand
stages in prodict life cycle
costs and need to make a product

Question 20

What are the changes to be made to account for social trends?

Answer 20

Online sales
Price comparison sites

Question 21

What is distribution channels?

Answer 21

various intermediaries through which goods/services move from the manufacturer to the end customer

Question 22

What is a four stage distribution and who uses it ?

Answer 22

A traditional channel consists of four stages: producer, wholesaler, retailer, and consumer

This channel is commonly used for products such as groceries, clothing, and electronics

Question 23

What is 3 stage distribution and who uses t?

Answer 23

producer, retailer, consumer

This channel is often used for products with high demand or where the cost of distribution is high

Question 24

what is 2 stage distribution and who uses it ?

Answer 24

manufacturer to consumer

This channel is commonly used for products that are sold online or through direct sales channels

Question 25

What are the changes to distribution to reflect social trends?

Answer 25

Ecommerce Shift from product based business to servece based

Question 26

What are the stages of the product life cycle and what occurs?

Answer 26

development - design introduction - launch + slow growth growth - increase in sales maturity - slowing sales as product reaches peak decline - product becomes obsolete

Question 27

What is an extension strategy and why have one ?

Answer 27

extend the life of a product beyond its natural life cycle designed to boost sales and maintain profitability for a product that has reached the decline stage of its life cycle

Question 28

What are the 2 types of extension strategy?

Answer 28

Product-related extension strategies Promotion-related extension strategies

Question 29

What is product related extenstion strategy and how is it achieved ?

Answer 29

Involves changing or modifying the product to make it more appealing to customers and extend its life cycle Improvements Line extensions eg coke zero and diet coke Repositioning

Question 30

What is promotion related strategies and how is it achieved?

Answer 30

Involves changing the marketing and promotion of the product to extend its life cycle advertising price promotions sales promotions

Question 31

What is the boston matrix?

Answer 31

tool to analyse their product portfolio and make strategic decisions about each product

Question 32

what does the boston matrix consist of ?

Answer 32

Cash cow - high m.s low growth Dog - low m.s low g.r Question mark - low m.s high g.g Star - high m.s low g.r

Question 33

What is the marketing strategy for mass markets ?

Answer 33

Advertising campaigns, tv, radio, ads

Question 34

What is B2B marketing?

Answer 34

Focuses on selling products to other businesses e.g. software companies selling to other businesses

Question 35

What is B2C ?

Answer 35

B2C marketing focuses on selling products/services directly to consumers e.g clothing retailers to build brand loyalty and creating a positive customer experience

Question 36

How can businesses develop customer loyalty?

Answer 36

Customer serive Loyalty cards Saver schemes