Marketing Mix

Question 1

The marketing mix (4 P’s)

Answer 1

● The 4 elements of the Marketing Mix (4 P’s) are:
1. Product
2. Price
3. Place
4. Promotion

Question 2

Product

Answer 2

A product is the actual item (either a physical good or a service) provided
to meet customers’ needs.
● This includes:
1. Design
2. Product Life Cycle
3. Branding
4. Unique Selling Point (USP

Question 3

Product life cycle

Answer 3

The product lifecycle is the different stages that a product goes through
from the time it is launched until it is taken off the market.
● It is usually illustrated on a five-stage diagram that shows the changes in
product sales over time

Question 4

Introduction

Answer 4

the new product is launched. Sales will be slow until consumers become familiar
with it.

Question 5

Growth

Answer 5

sales increase rapidly as more consumers learn about the product

Question 6

Maturity

Answer 6

sales growth increases at a slower pace and may start to level off, often due to
competitors entering the market

Question 7

Saturation

Answer 7

sales reach their peak because there are many competitors and most consumers in
the target market have the product already

Question 8

Decline

Answer 8

sales fall due to changes in taste / fashion or the introduction of a new and improved
product

Question 9

Unique selling point (USP)

Answer 9

The USP is what makes the product different from the competition
and is highlighted to encourage people to buy the product.

Question 10

Applying the 4 P’s

Answer 10

Unique operating system (iOS)
2. Apps that can only be bought in the Apple App Store
3. Good quality camera
4. Design - face ID, colours etc
5. Link with other Apple products e.g Apple Watch, iPad
6. Battery life
7. Apple pay
8. Apple Brand Name – a brand name is a symbol, design or other feature that makes
a product easy to recognise and distinguishes it from competing products.

Question 11

Price

Answer 11

The price refers to the amount of money a seller charges a customer for a
product or service.
● The price charged depends on:
1. Cost of making the product
2. Amount of profit the business wants to make
3. Stage of product life cycle
4. Competitor’s prices
5. Target market

Question 12

Cost-plus pricing

Answer 12

takes the cost to make the product and adds a
percentage of profit on to get the final cost of the item for custom

Question 13

Loss leaders

Answer 13

selling a product below the cost it takes to make it in order
to attract customers

Question 14

Premium pricing

Answer 14

charging a permanently high price to give the
impression of luxury.

Question 15

Penetration pricing

Answer 15

charging a low price when a product is first
introduced to encourage sales but increasing the price once sales have
reached a certain level.

Question 16

Place

Answer 16

Place refers to where customers will buy the product and the channel of
distribution used to get the product to its location.
● Channels of Distribution: refers to the way in which the product gets to
from the manufacturer to the consume

Question 17

Department stores

Answer 17

This type of retailer sells a wide range of products in different departments
under the one roof e.g Brown Thom

Question 18

Chain store

Answer 18

This type of retailer usually specialises in a type of product and have many
different branches throughout the country e.g Easons

Question 19

Supermarkets

Answer 19

supermarket sells a wide range of products such as food, drink and
toiletries e.g SuperValu

Question 20

Discount retailers

Answer 20

A discount retailer sells products at a reduced price e.g Dealz

Question 21

Franchise

Answer 21

A business that uses a well know brand name e.g Subway in exchange for
giving a fee each month to the person who originally came up with the idea
for that brand.

Question 22

Independent retailers

Answer 22

These are small businesses that are usually owned by a sole trader (one
person) e.g Triangle Coffee in Donabate

Question 23

Online retailers

Answer 23

These are shops that sell on the internet. Some online retailers sell online
and in physical shops e.g River Island, whereas some sell exclusively on
the internet e.g boohoo.com

Question 24

Promotion

Answer 24

Promotion means making customers aware of the product or brand in
order to increase sales and create brand loyalty. Brand loyalty is when a customer will buy your brand over another similar product e.g a customer buying an Apple iPhone instead of a Samsung
Galaxy

Question 25

Advertising (informative,
persuasive, competitive,
reminder, generic)

Answer 25

Involves communicating with the public to let them know about a product and get them
interested in buying it e.g television, radio, newspaper, billboards

Question 26

Sales promotion

Answer 26

These are incentives offered to customers to attract them to buy a product e.g free samples

Question 27

Social media

Answer 27

Many businesses use social media to promote their product to potential customers e.g
Facebook

Question 28

Celebrity endorsement

Answer 28

Businesses pay celebrities to promote their products by wearing them or appearing in an
advert for the product e.g David Beckham and H&M

Question 29

Advertising

Answer 29

television, online adverts, magazines, billboards

Question 30

Personal selling

Answer 30

sales people in their stores help customers to pick the
product suitable for them. Apple are also known for their after-sales
support services i.e Genius Bar

Question 31

Social media

Answer 31

Apple have social media accounts on TikTok and
Instagram

Question 32

The 4 P’s

Answer 32

The 4 elements of marketing mix are:
1. Product
2. Place
3. Price
4. Promotion

Question 33

Product