Lesson 2 Flashcards
1
Q
Marketing Mix (4 elements)
A
Product, Price, Promotion and Distribution.
2
Q
Different market respond to different marketing groups in different ways. Justify for or against.
A
True. income, Education, habits and preferences.
3
Q
Marketing is a ___ concept.
A
Dynamic.
4
Q
Marketing mix meets the _____ and ______ goals of the identified market.
A
Present and Future.
5
Q
Basic purpose of marketing ->
A
Needs and Wants of Customers in a most effective manner.
6
Q
Marketing mix represents an ____ approach to marketing.
A
Integrated.
7
Q
Marketing mix helps in pursuing ____ -oriented marketing.
A
Customer.
8
Q
Why is it called a mix?
A
There are various sub-factors.
9
Q
Product related activities are directed towards ->
A
Target Market.
10
Q
A product is considered by the consumers as a
A
Bundle of Satisfaction.
11
Q
Transferring ownership and Physical possessions
A
Place Mix
12
Q
Advertising provides
A
Product Information’s
13
Q
Personal Selling provides
A
Face-to-Face communication
14
Q
Short term promotional activities ->
A
Sales Promotion
15
Q
Mention of a company in a favorable media
A
Publicity.
16
Q
Controllable factors of Marketing Mix (3)
A
- Nature and Size of the firm
- Its objective
- Policy of its management.
17
Q
External Factors:
A
- Customers
- Competitors
- Dealers
- Governments
18
Q
The processes of developing marketing mix ->
A
- Identification -> Target market
- Analysis -> Needs and desires of the customers.
- Design
- Testing
- Adoption
19
Q
_________ is used in both identifying and analyzing the target market.
A
Research.
20
Q
What are analyzed in analysis?
A
- Number, Location and buying motives of the customers.
2. External Factors.
21
Q
Marketing mix is created in _____ stage.
A
Design
22
Q
The marketing mix is used in a small group of customers in ______ stage/
A
Testing
23
Q
Marketing mix is put into use in ______ stage.
A
Adoption.
24
Q
_______ refers to all the features of the product or service to be offered for sale.
A
Product Mix.
25
Number of product line is
Width
26
Number of products in a product line is
Depth
27
The main factors which influence the product mix
1. Identification -> Needs, Preferences, Income Level, Professions
2. Analysis -> Policies and actions of competitors, Financial Resources of the firm.
3. Design -> Marketing policies and programmes of the firm.
4. Adoption -> Technological Development
28
Packaging is not only a ______ devide but also serves as a ___ tool.
Protective, Selling
29
Good features of a package:
0. Safe and should be able to protect the product.
1. Convenient to handle
2. Repack or Resale value
3. Establishment of Identity.
4. True Story
5. Aesthetic satisfaction
30
Packaging simulates ______ buying.
Impulsive.
31
Good label must contain
1. Name and Address of the Product/Dealer
2. Weight and Measurement
3. Direction for proper use.
4. Date of packing
5. MRP (Inclusive of local tax)
32
Types of labels ->
1. Brand Label
2. Descriptive Label
3. Grade label
33
PLC is not a ______ but a _________ against which the life of a product may be predicted.
Universal Law
| Ideal Type
34
How many stages are there in PLC?
5 Stages.
35
Identify the stage:
| A product is born
Introduction Stage
36
Competition is virtually absent and market is limited
Introduction stage
37
Little known about product innovation
Introduction stage.
38
Growth is sales volume us very low due to _____- in ______stage.
Lack of knowledge and Limited distribution in introduction stage.
39
___ costs, ___ sales volume, _____
| Prices and _____ Distribution in introduction stage.
High; Low; High; Limited;
40
High % of new products fail during this period
Introduction stage.
41
Products with ______- demand maturity stage is long period.
long-run
42
In which stage marginal producers are forced to go out of the market.
Maturity Stage.
43
A tool for business forecasting?
PLC.
44
PLC is used to have an effective ______ plan.
Product.
45
Pricing means only fixing the base price of a product.
False. Terms and Conditions of sale is also to be formulated in pricing.
46
Price determines the ______ and _____.
Sales volumes and profit margins.
47
In what type of economy, price determines the volume of economic activity.
Free enterprise economy.
48
Internal factors of Prices are: (5)
Cost, Quality and Service. Promotion and Distribution strategy.
49
External Factors of price are: (5)
Demand, Competition, Motives, Government Controls and Risks
50
Selling below market price may lead to ____
Price wars.
51
Seasonal goods and fashional articles are sold at a price _________.
Out of line with the costs (higher).
52
Liberal terms of credit ->
High priced in case of bad debts and risk.
53
Investment made is quickly realized in _______ strategy.
Skimming the Cream
54
Motto "sell to classes"
Skimming the Cream
55
Skimming the cream pricing is used for
Highly distinctive product which are new.
56
Motto "sell to masses" and "low-mark up and higher volume"
Penetrating pricing
57
to Maximize market share and make the brand quickly popular, which strategy is used?
Penetrating pricing
58
FMCG products uses ______ pricing strategy.
Penetrating
59
Pricing strategy when high income market is inadequate and daily life?
Penetrating
60
When potential competition is strong, which strategy is used?
Penetrating
61
Premature death ->
Penetrating
62
The choice between the two contrasting pricing policy depends upon the ____ of and ____ with which competitors and can bring out ____ products.
Ease; Speed; Substitute;
63
Actual costs are
Historical and Current Costs.
64
Expected costs are the
forecasts or estimated costs
65
Standard costs
Normal rate of output (standard level of efficiency).
66
____ cost appears to be the most relevant as ___ and _____ are conjectures.
Actual; Standard and Expected;
67
Amount of Capital Investment is C, Standard cost of normal Output is O, Rate of return is R%. Find the Capital turnover and Mark-up standard cost.
Capital Turn-over = C/O
| Mark Up standard cost is C/O x R =CR/O
68
Most widely used technique of pricing is
Cost Plus Pricing.
69
Which method can bring the firm below optimum level?
Cost Plus Pricing.
70
_____ methods are used to determine the mark-ups
Rule of thumb.
71
In _____ capacity, cost plus pricing will not be useful.
Idle capacity.
72
Other names for Parity Pricing?
Going rate pricing or Competition based pricing.
73
When competition is very severe and products are homogenous what pricing strategy is used?
Parity Pricing.
74
Distribution involves two main functions:
1. Choice of distribution channels
| 2. Physical Distribution.
75
3 types of flows.
1. Money
2. Information
3. Product.
76
Number of Distribution Channels
5
77
Industrial and Consumer goods of Heavy Nature are sold through (electronics, household appliances).
Manufacturer to Consumer
78
Consumer products like shoe, book, hosiery goods and Cosmetics.
Manufacturer to Consumer
79
Small producers producing perishable commodities (fruits and vegetables). Perishable products are ***often*** sold through _______
Manufacturer to Consumer
| Manufacturer Retailer - Consumers
80
Which is very fast and economical form of distribution? Say 1 disadvantage.
the Shortest one (expert services of middleman not available)
81
Channel for big and well established firms
Manufacturer to Consumer aka Direct selling
82
The original and oldest form of direct marketing is
Sales Call
83
ADRMPs
Automated dialing and recorded message prayers.
84
The latest method of direct selling
On-Line or Internet marketing
85
Direct selling is popularized due to
Cut throat competition, Scattered market, Modern means of communication, Costs of distribution, Desire to control.
86
Example for This channel which is popular when retailers are big and they buy in large quantities
Departmental stores, Chain Stores and Super markets -> Man-Ret-Con
87
Durable products of high value is sold through
Man-Ret-Consumer
88
Car, Home appliances, Readymade garments ->
man.-Ret.-Consumer
89
Traditional/Normal Channel ->
Manufacturer - Wholesaler - Retailer - Consumers
90
When producer has limited finance ->
Manufacturer - Wholesaler - Retailer - Consumers
91
Narrow product line for the producer ->
Manufacturer - Wholesaler - Retailer - Consumers
92
Small producer and retailers find this channel convenient ->
Manufacturer - Wholesaler - Retailer - Consumers
93
Consumer durables which are not subject to frequent changes in fashion ->
Manufacturer - Wholesaler - Retailer - Consumers
94
Producer of industrial goods use _____ as a _____ and _________.
Industrial distributors, Wholesaler and Retailer
95
Distribution through ______ is more efficient when retailers are geographically concentrated and limited ->
Agent
96
When wholesalers are specialized and Strong promotional support ->
Traditional Channel
97
Sometimes ______ are by-passed by ______ in the 4th channel
Retailers and agent sells it to institutional buyers.
98
Relieves burden at the same time provides control ->
Manufacturer Retailer - Consumers
99
The product that has very scattered markets use ______
Manufacturer - Wholesaler - Retailer - Consumers
100
Agricultural Products, Machinery and equipment
Manufacturer - Agent - Retailer - Consumers
101
Textiles are sold through
Manufacturer - Agent - Retailer - Consumer
102
Cloth are sol through _____
| Often Sold through _______
Manufacturer - Consumer
| Manufacturer - Agent - Wholesale - Retailer - Consumer
103
For industrial products ->
Industrial distributors are employed (storage facilities)
104
Home appliances are sold through ->
Manufacturer - Retailer - Consumer
105
House-Hold appliances are sold through ->
Manufacturer - Consumer
106
Product Considerations ->
| Hint UPBSTe
Unit Value, Perishability, Bulk and Weight, Standardization, Technical nature.
107
Market Consideration ->
| Hint BSNL
Buying habits, Size and Frequency, Number of location, Consumer or Industrial market.
108
Company Considerations ->
MarFinMan
Market standing
Financial Resources
Management
ProDesSerMan
Volume of Production
Desire for Control of channel
Service Provided by manufacturers
109
Middlemen Consideration
AACCSSL ->
```
Availability
Attitude
Service
Sales Potential
Cost
Customs and Competition
Legal Constraints
```
110
Products of low unit value are sold through
Middlemen
111
Low priced - High turn over articles
Flow through longer channels
112
Expensive goods sold by
Producers directly
113
Frequent changes in fashion =>
Shorter channels.
114
Non-Fashion articles ->
Sold though agents and merchants
115
Heavy and Bulky >
Sold Directly
116
Standardized products flow through
Longer channels through middlemen
117
Well established firms will keep many middlemen.
No. They are more likely to remove them.
118
If a firm has wide range then it has to have
Retail outlets throughout the country.
119
Promotion has grown due to (4)
Increasing competition, Increasing distances, changing preferences, Widening market
120
Competition based pricing is _____ for unbranded products.
Non-Ideal.
121
Franchise is
Using the brand's names in other retail stores.
122
Middlemen must provide ___, __, ____ and _____ Services. (Each element in the product mix).
Financing, Storage, Promotion and After sale services.
