Marketing mix

Question 1

what is the marketing mix/7Ps?

Answer 1

factors that company use to influence consumer purchasing decisions

Question 2

what are the 7Ps?

Answer 2

• product
• price
• place
• promotion
• people
• physical environment
• process

Question 3

what is a product?

Answer 3

anything that can be offered to the market to satisfy need or want

Question 4

in the design mix, what are the 3 factors considered when designing a product?

Answer 4

• form (appearance)
• function (how it works)
• cost (look expensive or affordable)

Question 5

what is the design mix?

Answer 5

the combination of 3 factors considered when designing a product

Question 6

list the 4 pricing strategies

Answer 6

• penetration
• skimming
• competitor based
• cost-plus

Question 7

what is price penetration?

Answer 7

when product launched, price set low, to generate sales, then price gradually increases

Question 8

what is price skimming?

Answer 8

when product launched, price set high

Question 9

what is competitor based?

Answer 9

setting price based of competitors price

Question 10

what is cost-plus?

Answer 10

using wholesale price, business then adds to this price

Question 11

list 2 benefits of price penetration

Answer 11

• gain strong customer base
• affordable

Question 12

list 2 benefits of price skimming

Answer 12

• high price makes seem high quality
• maximise revenue

Question 13

list 2 drawbacks of price penetration

Answer 13

• loss of revenue
• eventually becomes too expensive, may lose customers

Question 14

list 2 drawbacks of price skimming

Answer 14

• too expensive, won’t attract customers
• price goes down people think quality goes down

Question 15

list 2 benefits of cost-plus

Answer 15

• guaranteed profit every sale
• easy to calculate

Question 16

list 2 drawbacks of cost-plus

Answer 16

• inflexible
• no guarantee a net profit

Question 17

list a benefit of competitor based

Answer 17

minimises revenue loss

Question 18

list 2 drawbacks of competitor based

Answer 18

• limited price control
• too high you’ll get out competed by other companies

Question 19

what is promotion?

Answer 19

techniques used to attract attention to product and encourage purchases

Question 20

list the 2 types of promotion

Answer 20

• above the line
• below the line

Question 21

what is above the line promotion?

Answer 21

mass message aimed at many people as possible

Question 22

what is below the line promotion?

Answer 22

focused message targeted at specific group

Question 23

list 3 examples of above the line promotion

Answer 23

• Tv
• cinema
• newspapers

Question 24

list 3 examples of below the line promotion

Answer 24

• Coupons
• loyalty cards
• sponsorships

Question 25

list the 9 promotional strategies

Answer 25

- advertising - public relations - sponsorship - use of social media - guerrilla marketing - personal selling - product placement - digital marketing - corporate image

Question 26

what is public relations?

Answer 26

maintenance of positive relationships between business and the public

Question 27

what is sponsorship?

Answer 27

businesses gain publicity by financially supporting an event or person

Question 28

what is guerrilla marketing?

Answer 28

creative, low cost strategy used to attract attention and create buzz

Question 29

what is product placement?

Answer 29

where brand is featured in movie, Tv show to promote

Question 30

list 2 advantages of sponsorship

Answer 30

- seen by many - attracts customers through association

Question 31

list 2 disadvantages of sponsorship

Answer 31

- only focused audience - damage brand image

Question 32

list 2 advantages of guerrilla marketing

Answer 32

- unique - low cost

Question 34

list a disadvantage of guerrilla marketing

Answer 34

doesn’t guarantee sales

Question 35

list 2 advantages of product placement

Answer 35

- makes brand more accessible - global recognition

Question 36

list 2 disadvantages of product placement

Answer 36

- controversial movie then brand affected - brand may not be noticed

Question 37

what is personal selling?

Answer 37

salesperson interacts with potential customers to persuade to purchase product

Question 38

what is digital marketing?

Answer 38

using various online platforms to attract attention to a brand and encourage sales

Question 39

what is corporate image?

Answer 39

how a brand wants to be seen

Question 41

what is people?

Answer 41

the customer service of employees

Question 42

what is process?

Answer 42

the process of making the product, whether that’s using technology