1.3- Marketing Mix And Strategy

Question 1

What is distribution?

Answer 1

The process of getting the right product or service to the consumer in the right place.

Question 2

What are the ‘4 stages’ of distribution?

Answer 2

1. Manufacturer
2. Wholesaler
3. Retailer
4. Consumer

Question 3

What are the ‘3 stages’ of distribution?

Answer 3

1. Manufacturer
2. Retailer
3. Consumer

Question 4

What are the ‘2 stages’ of distribution?

Answer 4

1. Manufacturer
2. Consumer

Question 5

What are 3 advantages of online distribution?

Answer 5

• Main benefit is so niche products can reach a wider audience.
• Easy for people.
• Allows for international customers.

Question 6

What is the idea of changing from product to service?

Answer 6

The concept that you do not have to own something to be able to use it (e.g music).

Question 7

What are the 4 factors that affect the methods used to get products to customers?

Answer 7

• Nature of products (e.g medicines sold in pharmacy).
• The market.
• Nature of the business.
• Size of the business.

Question 8

What is marketing?

Answer 8

The management process of identifying, anticipating and satisfying customer demands for profit.

Question 9

What is marketing strategy?

Answer 9

The methods used by a business to achieve their marketing objectives.

Question 10

What are the 5 stages of the product life cycle?

Answer 10

1. Development
2. Introduction
3. Growth
4. Maturity
5. Decline

Question 11

What happens during the introduction stage of a product?

Answer 11

• Involves high costs in research and development.
• Sales will be low.
• Trying to advertise the product will be priority.

Question 12

What happens during the growth phase of a product?

Answer 12

• Enjoying rapid growth in sales and profits.
• Demand is high.

Question 13

What happens during the maturity phase of a product?

Answer 13

• Facing intense competition.
• Everyone has already brought it.
• Sales are high but profits are in decline.
• Prices may lower.

Question 14

What happens during the decline phase of a product?

Answer 14

• Limited in production.
• Product may be withdrawn from sales.
• May heavily discount to get any last sales.
• There is a trend towards more disposable items rather than fixable ones.

Question 15

What are 2 extension strategies used on products?

Answer 15

• Change the product (e.g Coca Cola Zero).
• Change the promotion (rebranding)

Question 16

What is a product portfolio?

Answer 16

The collection of all the products and services offered by a company.

Question 17

What is the Boston Matrix?

Answer 17

It is a marketing planning tool hitch helps managers to plan for a balanced product portfolio.

Question 18

What are the 4 parts of the Boston Matrix?

Answer 18

• Star Products.
• Question Mark.
• Cash Cow.
• Dog.

Question 19

What are the features of Star Products?

Answer 19

• High market share.
• In a high growth share.
• If managed correctly, stars should become cash cows.

Question 20

What are the features of question mark products?

Answer 20

• Low market share.
• In high growth market.
• Potential to become stars if managed correctly.
• Need lot’s of investments in marketing and promotion.

Question 21

What are the features of Cash Cow products?

Answer 21

• High market share.
• In low growth share.
• Good sellers and need little to no investments.
• “Milked for cash”.
• Need monitoring in case they become dogs.

Question 22

What are the features of a dog product?

Answer 22

• Low market share.
• In low growth market.
• Require no investment as they are in the decline stage.
• May have become obsolete or replaced.
• May consider discontinuing the product.

Question 23

What are the uses of the Boston Matrix?

Answer 23

• Good starting point when reviewing an existing product line to decide future strategy’s.
• Question marks reveal themselves as either dogs or stars and Cash Cows become so drained of finance that they turn into dogs.

Question 24

What are the Limitations of the Boston Matrix?

Answer 24

• Products may not be low or high market share they could be medium.
• Many people argue this Matrix is too simple.