2.4 The marketing mix

Question 1

What is the difference between invention and innovation?

Answer 1

Innovation- redesigning products that already exist
Invention- making a new product

Question 2

What are the 4 stages of the product lifecycle?

Answer 2

introduction
growth
maturity
decline

Question 3

name all the pricing methods

Answer 3

penetration, skimming, cost plus, competitor and promotional

Question 4

What is skimming?

Answer 4

starting the price high and gradually going lower

Question 5

what is penetration pricing?

Answer 5

starting the price low to get into the market and compete with other brands and getting higher gradually

Question 6

what is promotional pricing?

Answer 6

sales and deals (like 50 percent off)

Question 7

what is cost plus pricing?

Answer 7

pricing based off the costs the business has and the profit they want.

Question 8

what is competitor pricing?

Answer 8

pricing based off their competitors

Question 9

name a few ways of advertising?

Answer 9

social media
websites
television
newspapers
magazines
radio

Question 10

what are the 4 Ps of marketing

Answer 10

product
place
price
promotion

Question 11

what are the influences on price?

Answer 11

demand of product
cost of making the product
quality of product
brand image of product

Question 12

Name all the point sale of promotions

Answer 12

Price reductions (sales)
Competitions
Loss Leaders
Free samples

Question 13

What is a point sale of promotion?

Answer 13

Benefit a customer will receive when they buy a product

Question 14

What are loss leaders?

Answer 14

Goods are sold at a loss (business makes no profit and even lose money from them) so customers will come into a store to buy the cheap product and buy other things also. It is mostly main products that everyone buys like bread or milk.

Question 15

Name a disadvantage and advantage of social media advertising

Answer 15

• cheap and can target certain customers
• not everyone uses social media

Question 16

Name a disadvantage and advantage of website advertising

Answer 16

• lots of information can be provided for potential customers including written information, diagrams and videos (content type depends on how much business can afford)
• costs money to keep it up to date

Question 17

Name one disadvantage and advantage of tv advertising

Answer 17

• reaches a wide audience and advertisers will know what channels and programmes potential customers watch so they can target them
• can be expensive

Question 18

Name one disadvantage and advantage of print media advertising (newspapers, magazines and leaflets ect)

Answer 18

• target their market easily
• lots of people do not reach newspapers and leaflets are often ignored

Question 19

Name one disadvantage and advantage of radio advertising

Answer 19

• cheaper than tv and usually suitable for local advertising
• products cannot be seen

Question 20

What is the promotion of a product based on?

Answer 20

• what the business can afford
• target audience
• aim of promotion (like selling off old stock ect)

Question 21

What is a wholesaler?

Answer 21

person or company that typically sells goods in large quantities at low prices

Question 22

What is a retailer?

Answer 22

person or company which sells goods to the public

Question 23

What is physical distribution?

Answer 23

the movement of goods from producer to consumer using a physical presence such as a shop or office.

Question 24

List all the physical distribution channels

Answer 24

• producer to consumer
• producer to retailer to consumer
  -producer to wholesaler to retailer to consumer

Question 25

What is an advantage of the distribution method of producer to consumer?

Answer 25

producer does not have to share profit with retailer and wholesaler

Question 26

What is an advantage of the distribution method of producer to retailer to consumer?

Answer 26

The producer can make more profit without the wholesaler and can be confident the retailer will be able to market its goods to consumers

Question 27

What is an advantage of the distribution method of producer to wholesaler to retailer to producer?

Answer 27

wholesaler can break up stock and give goods to retailers at prices they can afford to they are more willing to sell the goods

Question 28

What is digital distribution?

Answer 28

distribution of goods and services digitally by downloading it

Question 29

Name some advantages of digital distribution

Answer 29

- consumers can buy products 24/7 - no costs of physicals shops or transport

Question 30

Name some disadvantages of digital distribution

Answer 30

- physical goods cannot be distributed - very competitive market and consumers can compare prices online - if you do not own a computer you are unable to buy online - some customers do not like sharing bank or credit card details online