2. Extended Marketing Mix

Question 1

what is the marketing mix?

Answer 1

the tools available to a business to gain the reaction it is seeking from its target market in relation to its marketing objectives

Question 2

what are the 7 p’s of the the marketing mix?

Answer 2

price
product
promotion
place
people
process
physical environment

Question 3

what must a product be?

Answer 3

-must meet the needs of the customers
-must provide benefit to the customer
-may be a good or service
-may vary in quality, style, price, packaging from competitors

Question 4

what are brands?

Answer 4

distinguishing name or symbol, such as a logo, that identifies the products or services offered by a seller and differentiates those products from those offered by competitors

Question 5

what is the value of brands to retailers?

Answer 5

-attract customers
-build loyalty
-higher prices leading to higher profit
-reduced promotional expenses
-facilitates entry into new markets

Question 6

what is the value of brands to customers?

Answer 6

-promises consistent quality
-simplifies the buying process
-reduces time and effort searching for information about merchandise/retailer

Question 7

what are the advantages of brand?

Answer 7

-ensures products are easily identified by consumers
-create brand loyalty and customers will repeatedly purchase the product
-purchase their product and not a rivals
-launch new products more easily
higher prices can be charged

Question 8

what are the disadvantages of brand?

Answer 8

-customers can be put off by the higher price
-competitors can mimic your product to increase their own sales
-can be costly process to create the brand/logo/slogans
-can mean very high marketing costs in the early stages of the product/brand life cycle
-high and low quality brands can be sold by an individual retailer to give customers a choice

Question 9

what are the disadvantages of brand?

Answer 9

-customers can be put off by the higher price
-competitors can mimic your product to increase their own sales
-can be costly process to create the brand/logo/slogans
-can mean very high marketing costs in the early stages of the product/brand life cycle
-high and low quality brands can be sold by an individual retailer to give customers a choice

Question 10

what are the stages of the product life cycle?

Answer 10

-development
-introduction
-growth
-maturity
-saturation
-decline

Question 11

what are some product life extension strategies?

Answer 11

-improve product
-changing the packaging
-change the channel of distribution
-change the product price
-change the promotional activities
-change the use customers have for the product
-rebrand the name
-variations on the original

Question 12

what are the advantages of a product portfolio?

Answer 12

-a wide range of products can allow the business to meet the needs of a variety of customers
-increased profits and profits levels remain steady
-makes business easier to manage
-profitable products can support the development and launch of new products
-raises the profile of the business
-can lead to the company becoming market leaders
-risk is spread amongst products

Question 13

what are the disadvantages of product portfolio?

Answer 13

-products can be spread too wide
-business can lose focus on its key objectives

Question 14

what is price dependent on?

Answer 14

-companies objectives
-competitors prices
-position in its life cycle
-cost of manufacturing
-time of year
-level of advertising /promotions
-suppliers prices

Question 15

what is penetration pricing?

Answer 15

price initially set lower to enter an existing market then raise price once popular

Question 16

what is destroyer pricing?

Answer 16

priced lowered then raised once the competition has left the market

Question 17

what is promotional pricing?

Answer 17

prices reduced for a short period of time

Question 18

what is premium pricing?

Answer 18

high price charged and maintained to create an exclusive image for the product

Question 19

what is price discrimination?

Answer 19

changing different prices for the same product at different times of day, year or amount of usage

Question 20

what does the channel of distribution depend on?

Answer 20

-the product being sold
-finance available to the organisation
-reliability of companies the chain
-desired image of the product
-government restrictions
-the products life cycle
-manufacturer’s distribution capability

Question 21

what are the types of direct selling?

Answer 21

mail order
interent
direct mail
newspapers/ magazines
personal selling (door-to-door, telesales)

Question 22

why do manufacturers sell to retailers?

Answer 22

-they are often located close to customers
-they may offer credit facilities, delivery, after-sales service and guarantees to customers
-they already have an established customer base
-they will incur the costs of storage of stock, retail premises and sales staff

Question 23

what are the different types of retailers?

Answer 23

independent store
supermarket
chain store
department store
discount store

Question 24

what are the advantages of retailers?

Answer 24

-provide a source of market research
-often locate close to the customer
-provide after sales service
-may offer credit facilities
-may have an established customer base
incurs the cost of storage, sales staff and retail premises
-bulk buying discount

Question 25

what are the disadvantages of retailers?

Answer 25

-may not have specialist product knowledge -lack of control on how the product/service is sold or displayed -product is more expensive to but for the consumer due to the 'middle man'

Question 26

what is a wholesaler?

Answer 26

a wholesaler buys goods in bulk direct from the manufacturer and then sells in smaller quantities to retailers and other businesses.

Question 27

what are the advantages of wholesalers?

Answer 27

-it provides a source of market research -it saves the manufacturer from making many small deliveries to individual retailers, therefore3 saving on transport, admin, sales rep costs -it saves the manufacturer from high stick holdings/storage costs

Question 28

what are the disadvantages to wholesalers?

Answer 28

-not all manufacturers decide to use wholesalers some decided to keep control over the way their product is presented to retailers and customers -wholesalers have limited specialist knowledge

Question 29

what factors influence the location of business premises?

Answer 29

-how far the location is from the customer -how far the location is from infrastructure -the price of land or premises in the area -whether or not there are car parking facilities for employees and customers -cost of labour in the area

Question 30

what are the two types of promotion?

Answer 30

below the line above the line

Question 31

what is below the line promotion?

Answer 31

directly controlled by the business eg internet selling, direct mail

Question 32

what is above the line promotion?

Answer 32

makes use of mass media to allow the organisation to reach a larger audience eg TV , radio

Question 33

what are the advantages of TV?

Answer 33

-adverts can be targeted to national audience reaching all market segments -product made appealing by the colour, sound and movement of the advert -product can be demonstrated -regular adverts can maintain a high profile

Question 34

what are the disadvantages of TV?

Answer 34

-expensive -product may not need to reach all market segments -message can be short-lived -many viewers channel surf during adverts

Question 35

what are the advantages of magazines?

Answer 35

-big colour adverts, more impact -can target market segments -magazines often kept for future reference

Question 36

what are the disadvantages of magazines?

Answer 36

can be expensive

Question 37

what are the advantages of independent radio?

Answer 37

-cheaper than TV -can have a captive audience as no surfing during adverts -target particular market segments

Question 38

what are the disadvantages of independent radio?

Answer 38

-listeners may not pay attention to adverts -limited to sound only -reliant on listeners imagination to be successful

Question 39

what are the advantages of internet?

Answer 39

-can be relatively cheap -adverts can target particular market segments if placed on the website -adverts can be changed easily

Question 40

what are the disadvantages of internet?

Answer 40

-web surfers may ignore adverts -software available to stop pop-ups if this style is used

Question 41

what are the disadvantages of internet?

Answer 41

-web surfers may ignore adverts -software available to stop pop-ups if this style is used

Question 42

what are the advantages of apps?

Answer 42

-can use it on the move -can often use free wifi to access the internet

Question 43

what are the disadvantages of apps?

Answer 43

-customers need to buy a smart phone or tablet computer to use which is expensive -training is needed so the app can be designed for customer easier to use -internet connection depends on the location and devise being used

Question 44

what are the advantages of celebrity endorsement?

Answer 44

-consumers buy the product in an attempt to be the same as the celebrity -photographs of the celebrities are used to create visual connections to the product -higher prices can be charged due to endorsement -brand loyalty may be created due to the endorsement -statements can be used in promotions to further enhance the the product

Question 45

what are the disadvantages of celebrity endorsements?

Answer 45

-can cost vast amounts of money to retain the celebrity -if the celebrity gains bad publicity the product is also tarnished -product endorsement does not guarantee a quality product

Question 46

what are people to an organisation?

Answer 46

people are an essential part of a business whether it be the customers or the employees

Question 46

what are people to an organisation?

Answer 46

people are an essential part of a business whether it be the customers or the employees

Question 47

what is the physical element of a business?

Answer 47

clean facilities point of sales displays logo payment systems uniform seating areas free wireless a relaxing ambiance access to an organisation website

Question 48

what is the process of a business?

Answer 48

looks at how a service is provided, from the minute an order is taken to being delivered