marketing mix

Question 1

product

Answer 1

item being sold and anything related to how it is made, packaged or named
what the consumer buys to satisfy needs/wants
bundle of benefits

Question 2

features of product

Answer 2

product design/features
packaging
brand
product life cycle

Question 3

stages of product life cycle

Answer 3

intro
growth
maturity
saturation
decline

Question 4

intro

Answer 4

slow sales and no profit as launched
little competition
high prices
aim- product awareness

Question 5

growth

Answer 5

demand grows as awareness grows
may need to invest in production capacity
aim-increase market share
cash flow improves

Question 6

maturity

Answer 6

sales and profit peak - begin to level off
price may be further reduced to defend market share
reminder advertising

Question 7

saturation

Answer 7

sales slow and level off
intense ad needed
market is fully exploited
aim- brand loyalty
planning to prevent decline

Question 8

decline

Answer 8

sales/profit drop near BEP
decline in sales, may make a loss
consumer tastes move away

Question 9

how to extend product life cycle

Answer 9

product
-improve, line extension
price
-increase/reduce, different strategy
place
-change channel of distribution
promotion
-new sales promotion technique, social media

Question 10

premium pricing

Answer 10

high price for high quality

superior product

Question 11

penetration pricing

Answer 11

charging a lower price at beginning so cheaper than competitors
gain market share

Question 12

loss leader

Answer 12

selling a product below cost price to attract customers into business
in hope they will buy other products

Question 13

price skimming

Answer 13

charging a high price when product first comes out

Question 14

price discrimination

Answer 14

charging different prices for different customers

eg student discount

Question 15

pricing strategies

Answer 15

price discrimination
price skimming
loss leader
penetration pricing
premium pricing

Question 16

break even chart

Answer 16

point at which total fixed and variable costs of a business becomes equal to its revenue

Question 17

break even point

Answer 17

total sales revenue = total costs

Question 18

margin of safety

Answer 18

difference between a business’ forecast sales and its BEP

shows how much sales can fall before the business starts making a loss

Question 19

place

Answer 19

distributing the right product/service to the consumer at the right place at the right time
correct channel of distribution must be used

Question 20

channel of distribution

Answer 20

refers to the movement of goods from one party to another

Question 21

what to consider when choosing channel of distribution

Answer 21

cost
type of good
market size
technological developments
e-commerce

Question 22

advertising

Answer 22

paid communication of information about a product/service through various media
informs the market that the business has something for sale and convince someone to actually buy it

Question 23

sales promotion

Answer 23

measures to increase the sales of a product
usually short term
gimmicks to attract customers
eg special offers, coupons

Question 24

merchandising

Answer 24

special point of sale displays designed to attract attention to the product and boost sales
encourage impulse buying

Question 25

public relations

Answer 25

all the efforts to create and maintain a good image of a firm and its products in the minds of the general public done by public relations officer

Question 26

personal selling

Answer 26

a firm contacts a customer directly by mail, email, phone to sell a product/service tries to verbally persuade the consumer to buy

Question 27

brand

Answer 27

``` a letter, symbol or words given to distinguish one company's goods from another should be: easily recognisable tell you something about product understood + easily pronounced ```

Question 28

benefits of branding

Answer 28

- helps distinguish from competitors - increase sales - develop brand loyalty/repeat purchases - impression of superiority for higher price - new products easier to introduce under established brand name

Question 29

factors that determine price

Answer 29

production costs competitors price consumer perceptions stage of product life cycle

Question 30

traditional chain of distribution

Answer 30

manufacturer-wholesaler-retailer-consumer the wholesaler is used to break bulk into smaller quantities used by retailers who cannot buy in large bulk eg small shop used for non perishable goods

Question 31

alternative chain of distribution

Answer 31

``` manufacturer-retailer-consumer large retailers buy in bulk directly from manufacturer savings as cut out wholesalers profit only works for big retailers perishable goods ```

Question 32

direct chain of distribution

Answer 32

manufacturer - consumer no intermediates are used uses internet/catalogues eg Dell sells computers online

Question 33

types of advertising

Answer 33

``` reminder informative persuasive competitive generic ```

Question 34

ASAI

Answer 34

advertising standards authority for Ireland | regulate ads eg misleading/offensive