Narketing

Question 1

What are the 7ps

Answer 1

Product
Physical
Process
People
Place
Promotion
Price

Question 2

Product

Answer 2

Good or services the customers buys
Eg proposition at hotel : “good nights sleep guaranteed”

Question 3

Price

Answer 3

How much the customer pays
Eg dynamic pricing

Question 4

Place

Answer 4

How the product is distributed to the customer
Eg predominantly sold direct

Question 5

Promotion

Answer 5

How the customer is found and persuaded to buy
Eg tv advertising

Question 6

Process

Answer 6

Systems and processes that deliver a product to a sustomer
Eg online booking

Question 7

Physical

Answer 7

Elements of the physical environment the customer experience
Eg facilities

Question 8

What is an effective marketing mix

Answer 8

Achieves marketing objectives
Meets customer needs
Is balanced and consistent
Creates a competitive advantage

Question 9

Influences on marketing mix

Answer 9

The market
Consumer markets where businesses are selling to the public B2C

Question 10

Internal influences on marketing mix

Answer 10

Promotion
Price
Credit
Building relationships
Time
Delivery conditions

Question 11

External influences on marketing mix

Answer 11

Political factors
Economic
Social
Technology
Legal
Environmental
Competition

Question 12

Types of consumer goods

Answer 12

Convenience products
Shopping products
Specialty products

Question 13

Convenience products

Answer 13

Brought frequently and little planning or shopping efforts
Tended to be low price and widespread distribution such as crisps

Question 14

Shopping products

Answer 14

Bought less frequently
Tends to be higher price with selective distribution usually promoted through adverting and resellers
Eg clothing or furniture

Question 15

Speciality products

Answer 15

Unique characteristics
High price and exclusive distribution, limited outlets and the promotion is more carefully targeted
Eg cars

Question 16

Core benefit

Answer 16

The prime function of a product

Question 17

Tangible product

Answer 17

Features and additional functions of the product

Question 18

Augmented product

Answer 18

Additional non tangible benefits

Question 19

What are the 6 stages of product life cycle

Answer 19

Development, introduction, growth, maturity, saturation, decline

Question 20

Advantages of product life cycle

Answer 20

Tracks sales
Helps managers plan their marketing activities
Suggest adaption

Question 21

Negative of product life cycle

Answer 21

Not always clear where the product is
Does not explain chamge in sales
Can be difficult to read

Question 22

Axes and positions of Boston matrix

Answer 22

X is market share
Y is Marley growth
Top left is questions marks
Top right is stars
Bottom left is dogs
Bottom right is for cash cows

Question 23

Question mark products

Answer 23

Low share and cash flow is negative
Have potential buy future is uncertain
Could become a star or a dog

They should invest to imcrease market share
Build selectively
Invest in promotion as they need market research to appeal to more customers

Question 24

Star products

Answer 24

High share of a growing market
Require high marketing spending
Net cash inflow is neutral

They should build sales
Spend to keep competitors at bay
Repel challenges from competitors

Question 25

Cash cow products

Answer 25

High share of a slowly growing market Mature stage in cycle Little potential for growth Defend market share Aim for short term profits Reduce investment in order to maximise short term cash flow and profits

Question 26

Dog products

Answer 26

Either products that have failed or are in the decline phase of their life cycle Low share of a slow growth market Not going anywhere with no real potential Phase out or sell off Not worth investment in Any profit made has to be re invested just to maintain market share

Question 27

Price skimming

Answer 27

Set a high price to maximise profit when launched Product is sold to different market segments at different times Objective is to maximise profit per unit to achieve quick recovery of development costs

Question 28

Penetration pricing

Answer 28

Offer a product at a low start price (opp to skimming ) Aim is to gain market share quickly and build customer loyalty Price can be increased once target market share is reached Eg razor handles

Question 29

Dynamic pricing

Answer 29

Business set flexible prices for products or services based on current market demands

Question 30

Promotional methods

Answer 30

Sales promotion Advertising Direct selling Personal selling Sponsorships Public relations Merchandising

Question 31

Advertising

Answer 31

A paid form of non personal communication - wide coverage Usually very expensive

Question 32

Sales promotion

Answer 32

Short term tactic to increase sales Eg special offers Help reach sales target Increase market share

Question 33

Direct selling

Answer 33

Directed by email, text, social ,edit etc Focused on target market Can be personalised Usually cheap However can be perceived as intrusive and junk mail

Question 34

Personal selling

Answer 34

Involves a meeting between the business rep and customer Enables negotiations

Question 35

What influences choice of promotional methods

Answer 35

Stage in life cycle Competition Marketing budget Technology Target market