1.3 Marketjng Mix And Strategy

Question 1

Design mix and examples

Answer 1

Function the good or service has to be able to fulfill the primary purpose as to why the customer purchased it.
, products that emphasise this (washing machine and battery)
Aesthetics,how much the customer is attracted to product based on how it looks and feels (handbag )
Cost- whether it’s possible to provide the good within a budget cutting costs.

Question 2

How design mix is changing due to social trends

Answer 2

1.sustainability - as pop rising people worried key resources won’t be able to keep up such as fresh water. Use other materials/ sources of products as resources deplete price increases.
2.ethical - how your products made harming anything?

Question 3

Marketing mix (7)

Answer 3

Product,place,price,promotion,
People,process,physical

Question 4

Product life cycle and what is its used for

Answer 4

-development(no sales, research)
-intro(product launched, negative cash flow)
-growth(fast growing sales , profits rise)
-maturity(sales slow, more competitors)
-Decline(falling sales)

Used for- forecasting future sales trends

Question 5

Extending the product life cycle and criticisms of product life cycle

Answer 5

Extensions strategies - lower price, change promotion,change packaging.
Criticisms- shape and duration varies, difficult to recognise where your product is in the cycle.

Question 6

Boston matrix

Answer 6

A model used to analyse the strategic position of product and brand portfolios.
High growth rate, low growth rate, high market share, low market share.

Stars-high growth, Hugh market share
Cash cows- low growth, high market share(mature successful products that need investment)
Question marks- high growth, low market share (have potential need investment)
Dogs- low growth, low market share(usually sold or closed businesses)

Question 7

Benefits of effective branding

Answer 7

-adds value, can charge higher prices
-build brand loyalty

Question 8

types of brands

Answer 8

Corporate branding
-attached a promise to the g or s associated w the brand for example customer service.
Personal branding - a person brands themselves for example a celebrity can create a product range.
Geographical branding- when a place shows off the lifestyle of that area, e.h corporate and geographical for Yorkshire tea.

Question 9

Aims of promotion and promotional mix

Answer 9

Aims- to inform and persuade about the existence of a product.

Promotional mix - advertising, personal selling, sales promotion, public relations, direct marketing.

Question 10

Advertising key pints and +-

Answer 10

Paid for communication (tv,radio,billboards)

+wide coverage,control of message
-expensive

Question 11

Personal selling points +-

Answer 11

Promoting person to person (by phone,meetings,knocking on doors)

+high customer attention
-labour intensive

Question 12

Sales promotion points and +-

Answer 12

Includes free samples, BOGOF offers

+effective in boosting sales fast
-sales may only be short term

Question 13

Financial objectives and marketing objectives

Answer 13

F- maximise profits, maximise sales revenue, improve cash flow
M- improve market share,build a brand, prevent competition

Question 14

Price skimming

Answer 14

Charging a premium price when a product is first launched in order to maximise revenue per unit.
Then lower

Question 15

Cost-plus pricing

Answer 15

Price is set by applying a percentage margin based on the unit cost if production or supply

Question 16

Penetration pricing

Answer 16

Offering a significantly low price than normal to maximise volume sold

Question 17

Predatory pricing

Answer 17

When prices set low for short term to force competitors out the market.

Question 18

Aim of effective distribution

Answer 18

To make products available in the right place at the right time in the right quantities

Question 19

Distribution channels

Answer 19

Retailer- producer,retailer,customer (customer conviencince)
Wholesaler- producer,wholesaler,retailer,customer(bulk they make money by buying in bulk)
Distributors- producer,distributor,customer(distributed sell on)
Agents-producer,agent,customer(services,travel)

Question 20

Distribution types

Answer 20

Indirect- producer to customer

Question 21

Multichannel distribution +-

Answer 21

For example apple, selling directly to customers and retailers.

+allows more target segments to be reached, higher revenue
-complex to manage

Question 22

Public relations

Answer 22

Communicating with media to make your business seen in a positive spotlight for example sending out press release highlighting something good about the business.

Question 23

Factors affecting the most appropriate price strategy

Answer 23

PED
Strength of brand
Stage in product life cycle