ls 2 Flashcards
(135 cards)
1
Q
What is marketing mix
A
combination of 4 P’s which constitute the core of a company’s marketing system
2
Q
4 P’s of marketing
A
Product, Price, Place, Promotion
3
Q
what is the basic purpose of marketing mix
A
to satisfy needs of customers in the most effective manner
4
Q
marketing mix is a _____ concept.
A
dynamic
5
Q
marketing mix represents an _______ approach to marketing
A
integrated
6
Q
marketing mix helps in pursuing ____ oriented marketing
A
customer
7
Q
why is each P called a mix
A
it consists of several sub-factors
8
Q
combination of various features of a product/service to be offered for sale
A
product mix
9
Q
consumers consider a product as
A
a bundle of satisfaction
10
Q
product related activities are directed at
A
target market
11
Q
decisions regarding basic price, discount, terms of payment
A
price mix
12
Q
transferring ownership and physical possession of the product to consumers
A
place mix
13
Q
purpose of place mix
A
make the product available to customers at the right time and place
14
Q
distribution mix consists of
A
channel of distribution
physical distribution
15
Q
physical distribution
A
activities involved in moving product from producer to consumer .
transportation, storage
16
Q
channel of distribution
A
route via which products move from producer to consumer
17
Q
what is the aim of promotion mix
A
persuade customers to buy the product
18
Q
elements of promotion mix
A
advertising sales promotion personal selling publicity public relations
19
Q
external factors affecting marketing mix
A
- customer
- competitor
- dealers
- government
20
Q
internal factors affecting marketing mix
A
nature and size of the firm
objectives of the firm
policy of its management
21
Q
steps in determining marketing mix
A
- identification - target market
- analysis - needs of target market
- design
- testing
- adoption
22
Q
what is analysed in analysis stage
A
number , location, buying powers and motives of customers
nature of comp, dealers behaviour and government regulations
23
Q
at what stage is marketing mix made?
A
design
24
Q
at what stage is marketing mix put into use ?
A
Adoption
25
test run of marketing mix designed in a small group of customers
testing
26
main components of product mix
1. range of products to be offered for sale
2. Brand name of the product
3. Package of the product
4. Label
27
no. of product lines to be offered for sale
width of a firm
28
no. of products in each product line
depth of a firm
29
what is packaging
wrapping, crating, filling or compressing of goods to protect them from spoilage, pilferage, breakage, leakage, etc
30
packaging is not only a protective tool .. it is also a _____ tool
selling
31
____ acts a silent but forceful salesman at the point of purchase and stimulates impulsive buying
Packaging
32
what is labelling
putting identification marks called labels on the package
33
features of good packaging
1. convenient to handle and use
2. should attract immediate attention
3. safe of protecting product
4. should tell true story
5. should be unique
6. should have repack or resale value
34
product life cycle is not a _______ but an ______ type against which the life of a product may be predicted
universal law, ideal type
35
very risky stage of PLC with reason
Introduction stage - high % of new products fail in this stage
36
product is born in this stage
Introduction stage
37
growth in sales volume is at _____ rate during introduction stage due to ______ and ______
1. low
2. lack of knowledge on the part of customers
3. limited distribution
38
Competition is _______ at introduction stage
absent
39
prices are ____ in introduction stage because of ____ and ____
high
small scale of production
heavy promotional expenditure
40
Proper advertisement and publicity of the product
introduction stage
41
selective distribution and attractive discounts to dealers
introduction stage
42
removing technical and other deficiencies in the product
introduction stage
43
attractive gifts to customers as an 'Introductory offer'
introduction stage
44
Skimming the cream pricing policy
introduction stage
45
demand and sales _________ , distribution is ____________, competition _______ and prices _______ during the growth stage
1. grow rapidly
2. widened
3. increases
4. prices fall
46
aim of introduction stage
product awareness
47
aim of growth stage
maximise market share
48
promotional focus shifts from _____ to _____ in growth stage
buy my product to buy my brand
49
profits are ______ in growth stage
rising
50
profits are _____ in introduction stage
negative
51
Heavy advertising to create brand image and simulate sales
growth stage
52
Expanding distribution channel to make the product available wherever demanded
growth stage
53
introducing new versions of the product to cater to different needs
growth stage
54
keeping price at competitive level
growth stage
55
greater emphasis on customer service
growth stage
56
during this stage, sales continue to grow but at decreasing rate
Maturity stage
57
competition _____ further and market gets ______ in maturity stage
increases, stabilised
58
aim of maturity stage
retain market share
59
prices _____, promotional expenditure is _____ so profits ____ during maturity stage
1. reduced
2. high
3. decline
60
supply exceeds demand for the first time in ____ stage
Maturity stage
61
characteristics of maturity stage
product differentiation
product improvement
identifying new market segments ( low income market)
62
differentiating product from competitive products
Maturity stage
63
focussing on brand image
maturity stage
64
extending warranty
maturity stage
65
introducing reusable packaging
Maturity stage
66
developing new markets
Maturity stage
67
finding new uses of products
Maturity stage
68
aim of decline stage
minimise costs
69
profits and sales are the highest in _____ stage
maturity stage
70
new features may be added to the product
decline stage
71
new packaging
decline stage
72
selective promotion to reduce distribution costs
decline stage
73
In maturity stage what kind of advertising is used?
Persuasive
74
in introductory stage what kind of advertising is used?
informative
75
_____ is a tool for business forecasting
PLC
76
economy models of packs
decline stage
77
without ______, there can be no marketing
pricing
78
good label must provide info such as:
1. name and address of producer/dealer
2. weight and measurement of the product
3. directions for proper use of the product
4. date of packing
5. mrp
79
three types of labels
brand label
descriptive label
grade label
80
sellers are interested in ___ label
descriptive label
81
consumers favour ____ label
grade label
82
pricing involves determining base price only . true/false justify
false
| also terms and conditions of sale
83
________- pricing decisions require up to date knowledge of trends in sales and demand
Pragmatic
84
price determines _____ and ___
sales volume and profit margins
85
price determines volume of economic activity in what economy
free enterprise economy
86
internal factors affecting price determination
cost of product
quality and service
promotional and distribution strategy
87
external factors affecting price determination
```
demand
competition
buying motives
risks
government control
```
88
4 types of pricing strategy
1. skimming pricing
2. penetrating pricing
3. cost-plus pricing
4. parity pricing
89
what is skimming pricing?
1. setting initial high price to skim the cream of demand and to realise the investments made quickly
later on price is reduced to tap other segments
90
aim of skimming pricing is to
sell to classes
91
what pricing strategy is suitable for a highly distinctive product
skimming pricing
92
what pricing strategy can be used to feel out the market
skimming pricing
93
what pricing strategy can be used to restrict demand
skimming pricing
94
what is penetrating pricing?
* low price in initial stage to make brand popular and maximise market share
* afterwards.. price can be raised
95
aim of penetrating pricing
sell to masses
96
aggressive pricing strategy used to restrict entry of new firms
penetrating pricing
97
when product sold is highly sensitive to price.. what pricing strategy is to be used?
penetrating pricing
98
when there is a strong potential competition what pricing strategy to use?
penetrating pricing
99
what is parity pricing otherwise called?
competition-based pricing/ going -rate pricing
100
what is parity pricing?
charging according to what competitors are charging
101
in oligopolistic market, what pricing strategy is suitable
parity pricing
102
easy method of pricing
parity pricing
103
cost -plus pricing is also known as ________
mark-up pricing
104
basic idea of cost plus pricing
S.P must cover its full cost and yield a margin of profit called mark-up
105
most widely used technique of pricing
cost plus pricing
106
which method of pricing discourages cut throat comp in the market
cost plus pricing
107
three types of flows represented by channels of distribution
product flow downwards
cash flow upwards
information flow both sides
108
shortest and simplest channel
Manufacturer-consumer
109
perishable commodities are sold via what channel?
manufacturer - consumer
110
products of heavy nature are sold via what channel?
Manufacturer-Consumer
111
a fast and economical channel
Manufacturer-Consumer
112
In recent years, direct selling has become popular due to?
1. increasing comp
2. desire to eliminate middlemen
3. wide product lines
4. need for distribution control
5. technical nature of products
6. availability of public warehouses
113
V.P.P
Value Payable Post
114
example of company selling door to door
Eureka Forbes
115
example of company using retail outlets
Bata, Raymonds, Peter England, Max, etc etc etc
116
example of catalogue selling
Avon
117
another name for catalogue selling
direct mail selling
118
example of telemarketing
Asian Sky shop
119
what channel is popular when retailers are big and buy in large quantities ?
Manufacturer-Retailer-consumer
120
this channel relieves manufacturer from burden of selling but still provides him control over distribution
Manufacturer-retailer-consumer
121
traditional channel of distribution
Manufacturer-wholesaler - retailer -Consumer
122
when producer has limited finance and narrow product line but wholesaler is specialised .. what channel must be used?
Manufacturer-wholesaler - retailer-Consumer
123
when retailers are either few or geographically concentrated.. what channel may be more economical
Manufacturer-agent - retailer -Consumer
124
textiles and agricultural products, machinery are sold through which channel
Manufacturer-agent-retailer-Consumer
125
longest channel of distribution
Manufacturer-wholesaler- agent-retailer-Consumer
126
when manufacturer wants to be fully relieved of distribution what channel must be used ?
Manufacturer-wholesaler- agent-retailer-Consumer
127
the longest channel is widely used in ____
cloth
128
bulk and weight -->
distributed directly
129
non standardised products
short channel
130
more technical products requiring demonstrations and after sale service
middlemen needed
131
to ultimate consumers-->
middlemen needed
132
large and wide market
use of middlemen is necessary
133
infrequent large orders
direct selling is preferred
134
products of low unit value
via middlemen
135
pricing strategy appropriate for late entrants to the market
penetration pricing
