1.3 Marketing Mix & Strategy

Question 1

What are the 4p’s of marketing in the marketing mix?

Answer 1

Product, Price, Place, Promotion.

Question 2

What is the design mix?

Answer 2

The combination of elements that make up a products design.

Question 3

What are the 3 functions of the design mix

Answer 3

Function, Aesthetic and Cost.

Question 4

What is the definition for function?

Answer 4

A product’s intended purpose and the specific tasks it is designed to perform.

Question 5

What is the definition for aesthetic?

Answer 5

The products visual and sensory appeal, including its form, shape, colour and texture.

Question 6

What is the purpose of promotion?

Answer 6

To help build brand awareness and loyalty.

Question 7

What are the eight types of promotion?

Answer 7

1)Digital communications
2)Sponsorships
3)Public relations
4)Advertising
5)Direct marketing
6)Sales promotions
7)Personal selling
8)advergaming

Question 8

What are the 2 advantages of advertising?

Answer 8

1)It can reach large audiences and increase brand awareness.
2)Can also be used to create a specific brand image.

Question 9

What are the 3 disadvantages of advertising?

Answer 9

1)Can be expensive
2)Can be difficult to measure
3)Many customers ignore ads

Question 10

What is advertising?

Answer 10

Promotion through paid channels such as television, radio and magazines.

Question 11

What is direct marketing?

Answer 11

Communicating directly with customers through email, text message, social media or post.

Question 12

What are the 2 advantages of direct marketing?

Answer 12

1)Businesses can target specific audiences
2)direct marketing is measurable, which enables businesses to track their results and adjust their strategy accordingly.

Question 13

Are the 2 disadvantages of direct marketing?

Answer 13

1)Customers may perceive emails as spam
2)Can be costly if businesses do not have an established customer database.

Question 14

What are sales promotions?

Answer 14

Techniques that encourage the purchase of a product by offering temporary incentives or discounts such as free samples, bogof, discount codes, loyalty cards.

Question 15

What are the 4 advantages of sales promotion strategy

Answer 15

1)Can quickly boost sales
2)Can help to clear stock or promote a new product
3)Can encourage impulse purchases
4)Can be targeted to specific segments of customers.

Question 16

What are the 2 disadvantages of sales promotion strategies?

Answer 16

1)Can be expensive especially if promotion requires heavy discounts.
2)may reduce the sales of full-priced products

Question 17

What is personal selling?

Answer 17

When a sales person interacts with potential customers one on one through digital communication channels.

Question 18

What are the 2 advantages of personal selling?

Answer 18

1)allows businesses to build relationships with their customers.
2)Enables businesses to provide personalised advice and guidance to customers.

Question 19

What are the 2 disadvantages of personal selling?

Answer 19

1)can be expensive due to hiring and training sales staff
2)It is difficult to scale to large audiences.

Question 20

What is a sponsorship?

Answer 20

An agreement where a company provides financial support to an event, team or organisation in exchange for marketing exposure.

Question 21

What are 3 advantages of sponsorships?

Answer 21

1)Can help to build brand awareness.
2)can create emotional connections with target audiences
3)Can reach new customers

Question 22

What are 3 disadvantages of sponsorships?

Answer 22

1) Can be expensive, especially for high profile events or properties
2)May not directly drive sales
3)May be subject to negative publicity if sponsored entity experiences a scandal or controversy.

Question 23

What are public relations?(PR)

Answer 23

Building relations with the public and managing reputation. This can include media relations.

Question 24

What are 3 advantages of public relations?

Answer 24

1)can enhance a businesses reputation
2)This can lead to increased customer loyalty
3)can be cost effective when compared to advertising or personal selling

Question 25

What is a disadvantage of public relations?(PR)

Answer 25

Can be time consuming and is difficult to measure.

Question 26

What is digital communications?

Answer 26

Any form of marketing or communication that is delivered electronically. such as social media, search engine optimisation.

Question 27

What are 2 advantages of digital communications?

Answer 27

1)Can be highly targeted to specific customer segments 2)Can provide real time engagement and feedback from customers

Question 28

What are 3 disadvantages of digital communications?

Answer 28

1)Can be easily ignored/filtered out by customers 2)May require significant investment in technology 3)May not be effective for reaching older or less digitally savvy customer segments

Question 29

What is branding?

Answer 29

The process of creating a unique and identifiable name, design, symbol or other feature that differentiates a product or company from its competitors.

Question 30

What are the three types of advertising?

Answer 30

1)Product branding 2)manufacturer/corporate branding 3)own brand product

Question 31

What is corporate branding?

Answer 31

The use of a company name or logo to promote all the products or services offered by the company.

Question 32

What are the 3 advantages of corporate branding?

Answer 32

1)Creates strong brand recognition and reputation 2)allows the company to leverage its existing reputation and customer base to introduce new products more easily. 3)economies of scale by promoting multiple products

Question 33

What are the 2 disadvantages of corporate branding?

Answer 33

1)If a company’s reputation is damaged by a product, it can have a negative impact on all the products 2)if the company faces intense competition in one market it may affect the sales of all the products

Question 34

What is product branding?

Answer 34

The use of a unique name, design, or symbol to promote a specific product.

Question 35

What are 3 advantages of product branding?

Answer 35

1)helps to differentiate products from competitors 2)allows the company to market different products to different segments of the market 3)help build customer loyalty and trust by associating the product with a specific quality.

Question 36

What are three disadvantages of product branding?

Answer 36

1)The cost of promoting a new brand for each product can be expensive 2)building new brands for each product from scratch is very difficult 3)different products within the brand may have different levels of quality, which can affect customer satisfaction

Question 37

What is own brand or private label branding?

Answer 37

The use of a retailers name to promote a specific product or service.

Question 38

What are the 3 advantages of private label branding?

Answer 38

1)Help retailers differentiate themselves from competitions by offering unique products 2)allows retailers to offer products at a lower cost than branded products 3)help to build customer loyalty by offering exclusive products

Question 39

What is a disadvantage of private label branding?

Answer 39

1)own brand products may have a lower perceived quality than branded products which can affect customer loyalty and trust.

Question 40

What are the 3 benefits of branding

Answer 40

1)Added value 2)Ability to charge premium prices 3)Reduced price elasticity of demand

Question 41

How can strong branding reduce price elasticity of demand?

Answer 41

As customers who are loyal to a brand are more likely to continue purchasing the products even if the price increases.

Question 42

How do USP’s help to build a strong brand recognition?

Answer 42

Make a product/service stand out from its competitors and build reputation by emphasising these unique qualities.

Question 43

How does advertising help to create strong brand recognition?

Answer 43

Create compelling ads that resonate with their target audience, raise brand awareness and communicate their value proposition with the right advertising strategy.

Question 44

How do sponsorships help gain strong brand recognition?

Answer 44

Helps to gain exposure and build their reputation.

Question 45

How does social media help gain strong brand recognition?

Answer 45

Brands can build a loyal following and create a community around their brand.

Question 46

What are the 6 types of pricing strategy?

Answer 46

1)Cost plus 2)Price skimming 3)Psychological 4)Predatory 5)Competitive 6)Penetration

Question 47

What is cost plus pricing?

Answer 47

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

Question 48

What is price skimming?

Answer 48

The business sets a high price for a new product/service when it is first introduced to the market in which the price gradually decreases to ensure sales continue.

Question 49

What is penetration pricing?

Answer 49

The business sets a low price for a new product/service when it is first introduced, once they attract enough customers the business will gradually raise the price.

Question 50

What is predatory pricing?

Answer 50

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

Question 51

What is competitive pricing?

Answer 51

The business sets its prices based on its competitors prices.

Question 52

What is psychological pricing?

Answer 52

This pricing strategy takes into account the customers emotions, beliefs, and attitudes towards a product/service by setting its prices at £9.99 instead of £10 as customers perceive this as better value.

Question 53

What are the 6 factors influencing the choice of pricing strategy.

Answer 53

1)number of USP’s/amount of differentiation 2)price elasticity of demand 3)level of competition in the business enviroment 4)Strength of brand 5)stage in the product life cycle

Question 54

What pricing strategy would you use if demand is elastic?

Answer 54

Penetration pricing.

Question 55

What pricing strategy would you use if demand is inelastic?

Answer 55

Price skimming.

Question 56

What pricing strategies would you use if the level of competition is high?

Answer 56

Psychological, Competitive and predatory.

Question 57

What pricing strategy would you use if you have a strong brand?

Answer 57

Psychological, cost plus or skimming.

Question 58

What pricing strategy would you use if you have a weak brand?

Answer 58

Penetration and competitive pricing.

Question 59

What pricing strategies would businesses use in the introduction stage of the product life cycle?

Answer 59

Skimming pricing

Question 60

What pricing strategies would businesses use in the growth or maturity stage of the product life cycle.

Answer 60

Competitive pricing and seeing the decline in price overtime from skimming pricing in the introduction stage.

Question 61

What pricing strategy would a business use if they need to cover costs and make a profit?

Answer 61

Skimming and cost plus.