1.3 Marketing mix and strategy

Question 1

Construct the Design mix

Answer 1

o function
o aesthetics
o cost

Question 2

CHANGES IN ELEMENT OF THE DESIGN MIX TO REFLECT SOCIALTRENDS

Answer 2

Design for waste minimisation - reducing the quantity if resources that are discarded in the production process
Desgn for recycling - businesses use of making increasing use of recycled materials in designs
Ethical sourcing - using materials, components and services from suppliers that respect the environment, treat thuey work force well and generally trade with integrit

Question 3

Above the line promotion

Answer 3

placing adverts using the media e.g. television or newspapers

Question 4

Types of promotion

Answer 4

Above the line promotion- placing adverts using the media e.g. television or newspapers
Below the line promotion - any promotion that does not involve using the media
i.e sales promotions, public relation, merchandising and packaging

Question 5

Types of branding

Answer 5

Manuafacturer brands - brands createb by the producers of goods or services
Own label brands - products that are maufactured for wholesales or retailers by businesses
Generic brands- products that only conain the names of product category rather thatn the company of product name

Question 6

Benefits of strong branding

Answer 6

Added value
ablity to charge premium prices
reduce price elasitcity

Question 7

Ways to build a brand

Answer 7

Exploiting a unique selling point
advertising
sponsorships
using social media

Question 8

Changes in branding and promotion to reflect social trends

Answer 8

Viral marketing- any strategy that encourages poeple to pass on message to others about a product or a business electronically
emotional branding- the practice of using emotions of a consumer to build a brand

Question 9

Types of pricing strategy

Answer 9

cost plus (calculating mark-up on unit cost)
o price skimming
o penetration
o predatory
o competitive
o psychological

Question 10

cost plus pricing benefits

Answer 10

set price to generate profit

Question 11

cost plus pricing disadvantage

Answer 11

Ignores market conditions - the mark up may be too high price compared to rivals

Question 12

Price skimming advantage

Answer 12

High prices - higher revenue

Question 13

price skimming disadvantage

Answer 13

Can only be used if demand is price inelastic

Question 14

Penetration pricing

Answer 14

product target low income consumers
fast growth throug sales
put pressure onto rivals to lower prices or differentiate

Question 15

Predatory Pricing disadvantage

Answer 15

An illeagal method by charging low prices

Question 16

competitve pricing advantages

Answer 16

Pricing war is avoided by charging same pice as competitors

Question 17

Factors that determine the most appropriate pricing
strategy for a particular situation:

Answer 17

o number of USPs/amount of differentiation
o price elasticity of demand
o level of competition in the business environment
o strength of brand
o stage in the product life cycle
o costs and the need to make a profit

Question 18

c) Changes in pricing to reflect social trends:

Answer 18

o online sales
o price comparison sites