Marketing Mix

Question 1

What is a marketing mix

T m m i a c o f e t c h a b m i p o s t i t m

Answer 1

The Marketing Mix is a combination of four elements that can help a business market it’s products or services to its target market.

Question 2

What the 4 elements of the Marketing Mix (4 P’s)

Answer 2

1. Product
2. Price
3. Place
4. Promotion

Question 3

What is a product

A p i t a i p t m c n

Answer 3

A product is the actual item provided to meet customers’ needs.

This includes
1. Design
2. Product Life Cycle
3. Branding
4. Unique Selling Point (USP)

Question 4

What is production lifecycle

T p l i t d s t a p g t f t t i i l u i s t o t m

Answer 4

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.

Question 5

The five stages of the product lifecycle are

I: t n p i l. S w b s u c b f w i

G: s i r a m c L a t p

M: s g i a a s p a m s t L o, o d t c e t m

S: s r t p b t a m c a m c i t t m h t p a

D: s f d t c I t/ f o t i o a n i p

Answer 5

1. Introduction - the new product is launched. Sales will be slow until consumers become familiar with it.
2. Growth - sales increase rapidly as more consumers learn about the product.
3. Maturity - sales growth increases at a slower pace and may start to level off, often due to competitors entering the market.
4. Saturation - sales reach their peak because there are many competitors and most consumers in the target market have the product already.
5. Decline - sales fall due to changes in taste / fashion or the introduction of a new and improved product.

Question 6

What is unique selling point

T usp i w m t p d f t c a i h t e p t b t p

Answer 6

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

Question 7

What is price

T p r t t a o m a s c a c f a p o s

Answer 7

The price refers to the amount of money a seller charges a customer for a product or service.

Question 8

What does the price charge depend on
1. C o m t p

2. A o p t b w t m
3. S o p l c
4. C p
5. T m

Answer 8

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 9

What is cost plus pricing

T t c t m t p a a a p o p o t g t f c o t i f c

Answer 9

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

Question 10

What is loss leaders

S a p b t c i t t m i i o t a c

Answer 10

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

Question 11

What is premier pricing

C a p h p t g t i o L

Answer 11

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

Question 12

What is penetartion pricing

C a l p w a p i f i t e s b i t p o s h r a c l

Answer 12

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 13

What is place

P r t w c w b t p a t c o d u t g t p t i l

Answer 13

Place refers to where customers will buy the product and the channel of distribution used to get the product to its location.

Question 14

Place - Channels of Distribution

M w r c

M r c

M w c

M c

Answer 14

Manufacturer-Wholesaler-Retailer-Consumer

Manufacturer- retailer-consumer

Manufacturer- wholesaler- consumer

Manufacturer- consumer

Question 15

What is a department store

T t o r s a w r o p i d d u t o r

Answer 15

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

Question 16

What is a chain store

T t o r u s i a t o p a h m d b t t c

Answer 16

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

Question 17

What supermarkets

A s s a w r o p s a f, d a t

Answer 17

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

Question 18

What are discount retailers

A d r s p a a r p

Answer 18

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

Question 19

What is a franchise

A b t u a w k b n i e f g a f e m t t p w o c u w i f t b

Answer 19

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 20

What is a n independent retailer

T a s b t a u o b a s

Answer 20

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

Question 21

What are online retailers

T a s t s o t i. S o r s o a i p s

Answer 21

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

Question 22

What is promotion

P m m c a o t p o b i o t i s a c b L

Answer 22

Promotion means making customers aware of the product or brand in order to increase sales and create brand loyalty.

Question 23

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

Inc w t p t l t k a a p a g t I i b i

Answer 23

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 24

What is sales promotion

T a i o t c t a t t b a p

Answer 24

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

Question 25

What is social media M b u s m t p t p t p c

Answer 25

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

Question 26

What is celebrity endorsement B p c t p t p b w t o a i a a f t p

Answer 26

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