prelim business marketing content

Question 1

What are the 4P’s?

Answer 1

Product, Price, Place, Promotion

Question 2

List the two main aspects of the product strategy.

Answer 2

1. Branding
2. Packaging

Question 3

What are three advantages for branding?

Answer 3

• Loyalty
• Customers try/trust new products
• Promote all products with the same campaign

Question 4

What are three advantages for packaging?

Answer 4

• Appeal to customers
• Easy to transport
• Protect the products

Question 5

What are the pricing methods?

Answer 5

1. Cost-based (costs plus a mark-up for profit)
2. Competition-based (relative to competitors’ prices)
3. Market-based (change with supply and demand)

Question 6

What are the pricing strategies?

Answer 6

1. Skimming (high price when first released)
2. Penetration (low first to gain market share)
3. Loss leader (less than cost)
4. Price points (offering products at a range of prices)

Question 7

What is place and what are the two types?

Answer 7

The place strategy (how the product is distributed) is made up of two parts:
1. Distributions Channels
- How the product gets to the customer
2. Channel Choice
- How widely available the product is

Question 8

What are the types of Distribution Channels?

Answer 8

1. Direct
2. Indirect

Question 9

Show a direct channel and its benefits.

Answer 9

Producer → Customer

Benefits;
- Gain all revenue
- Control how product is presented

Question 10

What are two indirect channels and their benefits?

Answer 10

1. Producer → Retailer → Customer
2. Producer → Wholesaler → Retailer → Customer

Benefits;
- Wider availability
- Lower distribution costs

Question 11

What are the types of Channel Choices?

Answer 11

• Intensive (e.g. Coca-Cola): available in as many places as possible
• Selective (e.g. Nike): available from particular outlets only
• Exclusive (e.g. Chanel): available from a very small number of outlets

Question 12

What are the advantages and disadvantages of intensive channel choice?

Answer 12

Advantage;
- More availability/sales

Disadvantages;
- Require image of ‘prestige’
- Requires large-scale production and distribution

Question 13

What are the 6 elements of promotion?

Answer 13

1. Advertising
2. Sales promotions
3. Personal selling
4. Relationship marketing
5. Publicity
6. Public relations

Question 14

What is advertising?

Answer 14

Paid messages to gain attention about a product

Question 15

What is sales promotion?

Answer 15

Discounts and offers to entice customers

Question 16

What is personal selling?

Answer 16

Salespeople to help and persuade customers

Question 17

What is relationship marketing?

Answer 17

Creating long-term customer connection and loyalty

Question 18

What is publicity?

Answer 18

Free media coverage of the business

Question 19

What is public relations?

Answer 19

Actions to communicate information and build reputation with the public