Marketing mix

Question 1

Advantages of product let marketing

Answer 1

Can focus on quality product to sell
No market research
Focuses on developing new and innovative product
Little competition compared to market led organisations

Question 2

Advantages of market led marketing?

Answer 2

Produces product consumers want
Market research is essential
Flexible and adaptable to market changes
Aim to increase market share in a highly competitive
More market aware so easier to deal with rival companies

Question 3

What are examples of consumer behaviour ?

Answer 3

Impulse purchase
Routine purchase
Informed consumer

Question 4

What are the advantages of research and development?

Answer 4

Ensures customers have the product they want
Competitive edge
Known as an innovator and improve existing products
Sells unique products and ensure products are safe

Question 5

Describe the product life cycle

Answer 5

Development
-no sales and making a loss as product is not being sold
Introduction
-sales are slow and overall loss is made as there is high promotional costs
Growth
-sales rise as customer confidence rises and profits start rising
Maturity
-sales peak as product is at its most popular there are healthy profits but may start falling due to competition
Saturation
-sales and profits fall as consumers start going elsewhere
Decline
-sales fall rapidly and product may be withdrawn from the market as profits fall

Question 6

What are extension strategies?

Answer 6

Change product design, packaging, recipe, price
Change method of promotion or place of sale
Introduce new variations of the product

Question 7

What are the advantages of a large product portfolio?

Answer 7

Increased brand awareness
Increased profit
Easier to launch new products
Business spreads risk
New products can replace old products that are at the end of their life cycle
Easily cope with seasonal fluctuations

Question 8

What are disadvantages of product portfolio?

Answer 8

High advertising costs so customers know all products
Research and development costs are high to maintain a variety of new products
If one product has a problem it can damage the whole portfolio

Question 9

What is the Boston matrix?

Answer 9

Market share on top
Market growth at side
Star
Question mark
Cash coz dog

Question 10

Star of Boston matrix?

Answer 10

Need constant investment to keep ahead of competitors
Market leader
Stars deteriorate over time

Question 11

Cash coz of Boston matrix?

Answer 11

Little marketing due to lack of competition

Funds generated can improve stars or question marks

Question 12

Question marks of Boston matrix?

Answer 12

Invest in them due to promising market position

Strong development to turn into stars

Question 13

Dog of Boston matrix

Answer 13

Adversely affect profits
Should be divested due to lack of market share and growth
Drop the dog

Question 14

Cost plus pricing

Answer 14

Simple and quick and business covers cost and makes a profit
But..
Doesn’t consider markers needs of competitor prices

Question 15

Skimming

Answer 15

Charge a high price for a high quality product
But..
Can be discouraging due to the high price

Question 16

Penetration pricing

Answer 16

Low price attracts customers wk high sales and market share which leads to decreased production costs
But..
Might not achieve high profit
Consumers may think its low quality and its only suitable for very price sensitive goods

Question 17

Destroyer pricing

Answer 17

Dominate the market and consumers benefit from low prices
But..
It’s illegal

Question 18

Promotional pricing

Answer 18

Stock levels reduce quickly
But..
Only works on popular items

Question 19

Price discrimination

Answer 19

Benefit both consumers and producers
But..
Need to be certain about characteristics of the market

Question 20

Loss leaders

Answer 20

Encourages customers to buy more meaning more pfpit
Advertising campaigns customer loyalty and may buy in bulk
But..
Can be accused of unfair business competition

Question 21

Psychological pricing

Answer 21

Illusion leads to more sales and can be applied to many segments
But..
Inconvenient

Question 22

What does the channel of distribution depend on?

Answer 22

Product being sold
Size of the market
Finance available
Legal restrictions 
Durability of the product
Manufactures distribution capability

Question 23

What are the retailing trends?

Answer 23

Increase in customers shopping at large retail parks
Increase in supermarkets which put smaller businesses out of business
Vast use of e-commerce
Increase in discount stores
Customers needs catered for under one roof with supermarkets

Question 24

Why do manufacturers sell to retailers?

Answer 24

Often located close to customers
Retailers may offer credit facilities and after sales service
Established customer base
Retailer Indus cost of storage premises and sale staff

Question 25

Why do manufactures sell to wholesalers?

Answer 25

Saves on number of small deliveries Administration costs are reduced Less money tied up in stock or stock going obsolete Wholesalers may label the product

Question 26

Disadvantages to manufactures selling their product?

Answer 26

Loss of control of how the product is presented Less profit as wholesaler makes profit Costs involved in producing point of sale merchandising for wholesalers

Question 27

Mail order

Answer 27

``` Offers credit facilities Can be exclusive and only way to purchase product Saves on expensive high street location But.. Lack of personal service High advertising costs Bad debts can occur ```

Question 28

Internet/etailers

Answer 28

``` Consumers can order anywhere 24/7 which saves time and hassle Goods delivered direct to consumer base Saves overhead costs Can reach a wide geographical area But.. Delay between purchasing and receiving goods Concern over use of credit cards Lack of personal contact ```

Question 29

Personal selling

Answer 29

``` Direct contact to the customer Can be tailor made Demonstrations can be shown But.. Consumers not keen on being disturbs at home ```

Question 30

Direct mail

Answer 30

``` Specific market segments can be targeted Can reach wide geographical area But.. consumers w Don’t like large volumes of junk mail ```

Question 31

Socialist magazines

Answer 31

Customers who purchase are directly invested | Consumers can phone orders in or speak to specialists

Question 32

Into the pipe line promotion

Answer 32

``` Point of sales materials Sale or return Staff training Dealer loaders Extended credit Dealer competitons ```

Question 33

Out of the pipeline promotion

Answer 33

``` Free samples Loyalty schemes Vouchers and discount coupons Special offers Bonus packs Competitions ```

Question 34

Public relations

Answer 34

``` Use of press release to counteract bad publicity Give donations to charities Sponsor events locally and nationally Product endorsement Publicity literature given out ```

Question 35

People

Answer 35

Appropriately qualified, motivated, committed to training and developments and well suited staff

Question 36

Processes include?

Answer 36

Sourcing of products Transportation of products to retail outlet Storage and cooking of products Service in the restaurant

Question 37

Benefits of efficient process?

Answer 37

Avoids confusion Streamlined business practice Increases chance of satisfied customers Loyal customers and repeat custom

Question 38

Drawbacks of an inefficient process?

Answer 38

Customers go elsewhere Share negative experiences with others Negative business image

Question 39

Physical evidence

Answer 39

Location where the service is offered and whatit looks like Eg Store layout and design or website design