3.3 - marketing mix

Question 1

marketing mix

Answer 1

a combination of factors that can be controlled by a business
to influence consumers to buy it’s products

Question 2

4 main elements in marketing mix

Answer 2

product
price
place
promotion

Question 3

benefits of developing new products

Answer 3

• business is able to enter new markets enabling it to enjoy economies of scale
• selling more to existing customers = increase in revenue
• winning business from competitors = increase in market share
• redesign of existing products can decrease costs = increasing profit margins
• respond to market changes, e,g customer preferences or new legislation = increase customer loyalty
• increased recognition of the business making it more competitive
• deliver more innovative products to customers, better meeting their needs

Question 4

cost of developing new products

Answer 4

• conducting market research for new product can be expensive
• competitors may copy invention leasing to failure to make adequate profit
• consumers may not like the product or it may not be popular = low sales

Question 5

brand image

Answer 5

IDENTITY GIVEN TO A PRODUCT THAT DIFFERENTIATES IT FROM COMPETITORS’ PRODUCTS

Question 6

brand image importance

Answer 6

• enables brand LOYALTY - tendency of customers to keep buying same brand continuously
  instead of switching over to competitor’s products
• helps differentiate the company’s product from another = consumers recognise the firm’s product
  more easily when looking at similar products
• their product can be charged higher than less well known brands - as customers will buy it nonetheless
• easier to launch new products into the market if brand image already established
  e.g launching new apple product