Paper 1 Divider 6

Question 1

Marketing mix

Answer 1

Elements of a firms marketing strategy that are designed to meet customer needs

Question 2

Price

Answer 2

Amount charged for a product

Question 3

Product

Answer 3

The good/service being sold to the customer

Question 4

Place

Answer 4

E.g, shops, online, vending machine

Question 5

Promotion

Answer 5

Advertisement strategies

Question 6

People

Answer 6

The staff interacting with customers

Question 7

Process

Answer 7

How easy it is to buy the product

Question 8

Physical enviroment

Answer 8

Well lit shop, features of their premises

Question 9

Influences on marketing mix, competitors

Answer 9

Price may be simula to competitors, need to spend more on promotion

Question 10

Influences on marketing mix, target market

Answer 10

High price at elated customers, promotion where lots of people will see it

Question 11

Influences on marketing mix, positioning

Answer 11

Exclusive products, high trained staff

Question 12

Influences on marketing mix, location

Answer 12

E.g, click and collect

Question 13

Influences on marketing mix, availability

Answer 13

How long its been avliable and low price on new products so customers buy it

Question 14

Influences on marketing mix, frequency on purchase

Answer 14

Impulse/emergency/regular

Question 15

Influences on marketing mix, where its sold

Answer 15

Online/vending machine/in store

Question 16

Influences on marketing mix, market research

Answer 16

How it should be changed to meet customer needs

Question 17

Effects on changes of elements

Answer 17

Marketing will need to work with operations to ensure the process and physical enviroment elements meet customer needs and expectations

Question 18

Product life cycle

Answer 18

1. development
2. introduction
3. growth
4. maturity
5. decline

• shows the sales of a product over time to ensure most effective decisions are made
• businesses develop new products to increase sales and competition and complétive advantage
• new products come about by innovation
• unique selling points measured in reliability, how comfortable the customer feels using the product

Question 19

Extension strategy

Answer 19

• product development: packaging/new features
• market development: new markets/overseas
• price: special offers and reductions
• promotion: new advertising campaign
• place: internet, through other shop chains

Question 20

Balanced portfolio

Answer 20

A business has a mix of products, in terms of dogs/cash cows etc
Needed because it reduces risk

Question 21

Portfolio analysis

Answer 21

• a business product range can be shown on the Boston matrix so a business can analyse the market position of its product portfolio in terms of market share and growth
• then they can make decisions about product strategy and how to manage the product

Question 22

Penetration pricing

Answer 22

• a business sets a low price to begin with to get customers intérêts then raised
• e.g, razors and replacement blades
• aims to get a new product established in the market

Question 23

Penetration pricing adv

Answer 23

• target lower income segments, could boost revenue

- could attract customer loyalty due to high sales volume, harder for competitors to enter the market

Question 24

Penetration pricing disad

Answer 24

• brand image could appear cheap or low quality

- customers may expect low prices so will stop buying when price increases

Question 25

Price skimming

Answer 25

- charges a high price to begin for new products entering the market - used to generate high levels of revenue before competitors enter the market

Question 26

Price skimming adv

Answer 26

- must have product creates a buzz, increasing demand | - early adopter exclusivity, want to stand out, be the first willing to pay high prices

Question 27

Price skimming disad

Answer 27

- adverse impact on brand image when prices are reduced, loss of exlusivity - early adopters will feel annoyed as price falls

Question 28

Branding

Answer 28

- the process of creating a distinctive and lasting identity in the minds of consumers - used to attract loyal customers - differentiates from competitors - can charge higher prices and get away with it, e.g, apple

Question 29

Promotion

Answer 29

- informing customers and persuading them to buy a product and increase sales - promotnal mix is combination of promotional techniques that are used to promote a product

Question 30

Multi channel distribution

Answer 30

- selling products through more than one channel of distribution, e.g, through internet, e.g, apple - used because more market coverage = more customers

Question 31

People

Answer 31

- the employees who provide goods and services to customers - friendly - helpful - knowledgeable - achieves customer loyalty and gives good reviews

Question 32

Process

Answer 32

- the customers experience of getting the goods and services - ordering clothes online process - supermarkets, self scanning - amazon prime, next day delivery

Question 33

Physical enviroment

Answer 33

- looks nice, hygienic, spacious - the surroundings of the customer when using the business - can create a good or bad business image

Question 34

Intergrated market mix

Answer 34

-where a consumer gets a single, clear idea and image of the product which can persuade them to make a purchase

Question 35

Intergrated marketing mix

Answer 35

- product life cycle: development, introduction, growth - Boston matrix: cash cow money to fund stars and question marks - type of product: convince/luxury/normal/special - target market: luxury goods/product/people/process - market positioning: ensure customer needs are met and know how the products will work

Question 36

Internal

Answer 36

- marketing objectives: to increase sales value and market share - finance: money avlaible to fund staff training - hr: more staff required to meet customer demand

Question 37

External

Answer 37

- competition: price matching and expansion | - economy: launch cheap versions of their product

Question 38

Digital marketing

Answer 38

- social media - banner advert - pop ups - emails - can be updated quickly - can be sent frequently - cheap to produce and update - tailored to customer needs