Marketing

Question 1

Explain marketing mix

Answer 1

It refers to different elements involved in the marketing of a product

Question 2

List the 4ps

Answer 2

(i)Product
(ii)Price
(iii)Promotion
(iv)Place

Question 3

Explain product

Answer 3

It is the good and service being sold and produced in the market

Question 4

List the type of product

Answer 4

(i)consumer good/service
(ii)Production good/services

Question 5

Explain does what make a product successful?

Answer 5

(i)It satisfies existing needs and wants of the customers
(ii)It is able to stimulate new wants from the consumer
(iii)It’s design-performance,reliability,quality etc

Question 6

Explain the new product development

Answer 6

(i)Generate ideas
(ii)Select the best ideas for further research
(iii)Decide if thefirm’s will be able to sell enough units for the product to a success
(iv)Develop a prototype
(v)Test lauch
(vi)Full launch of the product

Question 7

explain its advantage

Answer 7

(i)Can create unique selling point
(ii)Charger higher price for new products
(iii)Help spread risk

Question 8

Explain its disadvantages

Answer 8

(i)Market research is expensive and time consuming
(ii)Investment can be very expensive

Question 9

Explain why brand image important?

Answer 9

(i)Consumers recognise the firm’s product more easily
(ii)Can be charged higher price
(iii)Easier to lauch new product

Question 10

Explain why is packing important?

Answer 10

(i)It protect the product
(ii)It provide information about the product
(iii)To help consumers recognise the product

Question 11

Explain the extension strategies1(product life cycle)

Answer 11

(i)Finding new markets for the product
(ii)Finding new for the product
(iii)Redesigning the product or the packing to improve its appeal to consumer

Question 12

Explain price

Answer 12

It is the amount of money producers are willing to sell or consumer are willing to buy the product for

Question 13

List and Explain the different pricing method

Answer 13

1. Marketing skimming:Setting high price for a new product that is unique from other product in the market

Question 14

Explain the advantages of market skimming

Answer 14

(i)Very high profit
(ii)Help recover research and development cost

Question 15

Explain the disadvantages of marketing skimming

Answer 15

It may backfire if your competitors produce similar product at lower price

Question 16

List and Explain the different pricing method

Answer 16

2. Penetration pricing:setting very low price to attract customer to buy new product

Question 17

Explain the advantage of penetration pricing

Answer 17

(i)Attract customer more quickly
(ii)Can increase market share quickly

Question 18

Explain the disadvantage of penetration pricing

Answer 18

(i)Lower revenue
(ii)Cannot recover development cost quickly

Question 19

List and Explain the different pricing method

Answer 19

3. Competitive pricing:setting price similar to competitor’s product which is already available in the market

Question 20

Explain the advantage of competitive pricing

Answer 20

Business can compete on other matters

Question 21

Explain the disadvantage of competitive pricing

Answer 21

Still need to find ways of completing to attract sales

Question 22

List and Explain the different pricing method

Answer 22

4. Cost plus pricing:Setting price by adding fixed amount to the cost of making the product

Question 23

Explain advantage of cost plus pricing

Answer 23

(i)Quicker and easy to work out the price
(ii)Make sure that the price cover all cost

Question 24

Explain the disadvantage of cost plus pricing

Answer 24

Price might be set higher than competition

Question 25

List and Explain the different pricing method

Answer 25

5. Loss leader/promotional price:Setting price of few product at below cost to attract customer into the shop in hope they will buy other products

Question 26

Explain its advantage

Answer 26

(i)Helps to sell off unwanted stock (ii)A good way of increasing short term sales

Question 27

Explain its disadvantage

Answer 27

Revenue on each items is lower

Question 28

Explain the factors that affect what pricing method should be used?

Answer 28

(i)Is it new or existing product? (ii)Is the product unique? (iii)Is there a lot of competition in the market?

Question 29

Explain price elasticity

Answer 29

It refers to the responsiveness of the quantity demanded for it to change in its price

Question 30

Explain its formula

Answer 30

% change in quantity/% change in price

Question 31

Explain what affect place decision?

Answer 31

(i)Type of product (ii)Technicality of product (iii)How often the product is purchased

Question 32

Explain promotion

Answer 32

Marketing activities used to communicate with customers and potential customers to inform and persuade them to buy a business's products

Question 33

Explain the aims of promotion

Answer 33

(i)Inform customers about new product (ii)Persuade customer to buy product (iii)Create brand image

Question 34

List and explain types of promotion

Answer 34

(i)Advertising:Paid for communication with consumer (ii)sales promotion:it is not paid for communication but use incentives to encourage customers to buy (iii)Personal selling:sales staff communication directly with consumer to achieve sales and form long term relationships between firms and consumer (iv)Direct mail:also known as mailshots, printed material (v)Sponsorship:payment by business to have its name or product associated with a particular event

Question 35

Explain what affect promotional decisions?

Answer 35

(i)stage of product on PLC (ii)Nature of product (iii)Nature of target market