Marketing

Question 1

What are the 4 P’s in marketing mix? In ranking order

Answer 1

Products
Price
Place
Promotion

Question 2

Why do you buy a product?

Answer 2

To obtain the benefits it would provide.

E.x. Lipstick to make you look better.

Question 3

Define Product

Answer 3

A bundle of benefits is anything that can be offered to a market to satisfy a want.

Question 4

Define Price

Answer 4

The amount charged for a good or service

Question 5

What are the factors you must consider when looking at the price?

(there are 5 of them)

Answer 5

Demand for a product, the cost involved, consumer’s ability to pay, prices charged by competitors for similar products, and government regulations.

Question 6

The second most important P in marketing mix?

Answer 6

Price

Question 7

What is place?

Answer 7

Where your goods can be bought.

Question 8

What is Promotion?

Answer 8

Informing, persuading, and influencing a consumer to buy the product.

Question 9

What are the different means of promotion?

Answer 9

Personal selling, advertising, publicity and sales promotion.

Question 10

Why do you advertise?

Answer 10

To provide consumers about the avalibility, characteristics and uses of a product.

Question 11

What are the three classifications of products?

Answer 11

Use
Durability
Tangibility

Question 12

Product and goods can be used…

Answer 12

Interchangeably

Question 13

what are the two classifications of products biased on use:

Answer 13

Consumer goods

Industrial goods

Question 14

What are consumer goods?

Answer 14

Goods meant for personal consumption by the households or ultimate consumers

Question 15

What are the three different types of consumer goods?

Answer 15

Convenience goods

Shopping goods

Speciality goods

Question 16

What are convenience Goods?

Answer 16

Goods are bought frequently without much planning or shopping effort. They are also consumed quickly.

E.x. Butter

Usually sold at convenient retail outlets.

Question 17

What are Shopping Goods?

Answer 17

Goods that consumers spend a considerable amount of time and effort to finalize their purchase decision as they lack complete information before their shopping trip.

Ex. Clothes

Question 18

What is specaltiy goods? `

Answer 18

Special characteristics of certain categories of goods people generally put special efforts to buy them. They are ready to buy these goods at the prices at which they are offered and also put in extra time to locate the seller to locate the seller to make the purchase.

Question 19

What are Industrial Goods?

Answer 19

goods meant for not-personal and commercial use and include raw materials, machinery, components, and operating supplies (lubricants and stationary).

Marketing follows different pricing, distribution, and promotional strategies for their sale.

Question 20

can goods be both conumer and industrial based on use?

Answer 20

Yes

Question 21

What are durable goods?

Answer 21

Products that can be used for long periods of time

Question 22

What are Non-Durable Goods?

Answer 22

Products that degrade overuse. They are usually used quickly and profit margins are usually low wit Heavy advertising.

Question 23

What are Tangible Goods?

Answer 23

They are most goods that have a physical form and can be touched.

Question 24

What are Intangible Goods?

Answer 24

Services are provided to individual consumers or organizational buyers. These services usually fill the want of satisfaction.

Question 25

What are the factors of price?

Answer 25

``` Cost Demand Competition Marketing Objectives Government Regulation. ```

Question 26

What are marketing objectives?

Answer 26

Different types of objectives influence the price. These can be Maximisation of profit, maximization of sales, bigger market share, and survival in the market.

Question 27

What is the importance of government regulation when pricing a product?

Answer 27

Some governments regulate the price of products and therefore your marketing objectives change accordingly.

Question 28

What are the four methods of price fixation?

Answer 28

Cost-based pricing Competition based pricing Demand-based pricing Objective-based pricing

Question 29

What is cost-based pricing?What is competition Based Pricing

Answer 29

The price of the product is fixed by adding the amount of desired profit margin to the cost of the product.

Question 30

What is competition Based Pricing?

Answer 30

Used in highly competitive markets with very little difference between the products. You relate your price and fix it close to the price of competing brands. This avoids price competition that can damage all companies involved However, now that you're selling the same product at the same price you must find different ways to attract customers.

Question 31

Demand-based pricing?

Answer 31

At times prices are determined by the demand for the product. This method does not pay attention to cost or competitor prices. E.x cinemas

Question 32

What is Objective Based Pricing?

Answer 32

This method applies to the introduction of new (innovative) products. If at the introductory stage of the products, the organization wishes to penetrate the market i.e. to capture large parts of the market and discourage the prospective competitors to enter the fray, it fixes a low price. Alternatively, the organization may decide to skim the market i.e, to earn a high profit by taking advantage of a group of customers who give more importance to their status or distinction and are willing to pay even a higher price for it.

Question 33

What is a Distribution channel?

Answer 33

The vital links connecting the manufacturers and producers and the ultimate consumer/users.

Question 34

What does a channel of distribution do?

Answer 34

Established regular contact with the customers and provides them with the necessary information relating to the goods. Provides the facility for inspection of goods by the consumers at convenient points to make their choice. Facilitates the transfer of ownership and goods. Helps financing by giving credit facility. It assists the provision of after-sales services, if necessary. It assumes all risks connected with carrying out the distribution function.

Question 35

What are the types of Distribution?

Answer 35

Zero stage channel of distribution. One stage channel of distribution Two stage channel of distribution Three stage channel of distribution

Question 36

What is Zero stage channel of distribution?

Answer 36

The direct sale of goods by the producer to the consumer E.x. door-to-door sale or personal retail outlets.

Question 37

What is one stage channel of distribution?

Answer 37

Adds a retailer to the distribution chain. They sell goods to consumers. E.x. refrigerators in Sears

Question 38

What are the types of industrial goods?

Answer 38

Raw materials, machinery, components, and operating supplies.

Question 39

what is two-stage channel of distribution?

Answer 39

This is when the wholesaler sells to the retailer. This is mostly used for consumer goods or products that are bought frequently.

Question 40

What is three-stage channel of distribution?

Answer 40

when the number of wholesalers used is large and they are scattered through the country. This adds the agents to the mix They are known as distributers and they are the middle man for wholesalers around the country.

Question 41

what are the four factors that influence the choice of distribution channel?

Answer 41

The nature of the market: is the number of buyers limited? or is the number of buyers large? The nature of the Product: Do your goods need to be stored in convenient locations? Does your product have a large value? The nature of the Company: Does your company have the resources to create a retail outlet? does it want to spend resources doing so? Middle man consideration: Is there enough middlemen with the right expertise to be worth the extra cost

Question 42

What are the three main objectives or customers?

Answer 42

arouse their interest in the product Inform them about its availability Inform them as to how it is different from others.

Question 43

What are the four elements of a promotion mix?

Answer 43

Advertising: Informing potential customers about the quality, features and availability of the product. (paid) Publicity: Generating a favourable attitude to your company through getting the media to talk about its products and policies. (not paid) Personal selling: direct door-to-door presentation of your product (very effective through industrial goods) (not paid) Sales Promotion: temporary incentives for the product