Product price place promotion

Question 1

What is the introduction stage of the product life cycle?

Answer 1

When products are first launched on the market

Question 2

What is the growth stage of the product life cycle?

Answer 2

When the sales of products rise rapidly

Question 3

What is the maturity stage of the product life cycle?

Answer 3

When the sales of products is peak

Question 4

What is the decline stage of the product life cycle?

Answer 4

When the sales of
products fall.

Question 5

What are the disadvantages to branding?

Answer 5

Fakes are often made, creating a brand is expensive and time consuming,

Question 6

What are the advantages to branding?

Answer 6

High prices can be charged, associated with high quality, customer loyalty to brand, easily identified by customers and products stand out from competitors

Question 7

What are the advantages to packaging?

Answer 7

protect product during transportation/delivery, make product attractive and encourage customers to buy, inform customers how to successfully install/use product

Question 8

What are the disadvantages of packaging?

Answer 8

Packaging can be copied by own brands, pressure to use environmentally friendly packaging may lead to high costs, if packaging is littered it may lead to a bad reputation

Question 9

Price considerations?

Answer 9

cost of producing a product, what competitors are charging, how much profit you want to make, demand of product, who the target market is,

Question 10

What is psychological pricing?

Answer 10

price of product ends in 99p, gives the impression that the product is less expensive,

Question 11

What is promotional pricing?

Answer 11

when businesses reducte its price for short period of time, to reduce stock levels before the change of a season

Question 12

What is competitive pricing?

Answer 12

when you price match or make your products lower in price than competitors, to steal your competitors customers

Question 13

What is destroyer pricing?

Answer 13

When a large business reduces its price to eliminate competition, can charge higher price when there is less competition

Question 14

What is premium pricing?

Answer 14

When a high price is charged, gives impression that product is high quality

Question 15

Name place considerations

Answer 15

Away from competition, close to customers, parking facilities, availability of employees, availability of suitable infrastructure

Question 16

What are the advantages of road distribution?

Answer 16

Less expensive than air, direct delivery to customers door, 24 hour delivery

Question 17

What are the disadvantages of road distribution?

Answer 17

Not suitable for very large products, roadworks and traffic congestion can cause delays, Not environmentally friendly

Question 18

What are the advantages of sea distribution?

Answer 18

Can transport across the world, can transport bulky items

Question 19

What are the disadvantages of sea distribution?

Answer 19

Length of delivery times, Not ideal for perishable items, no door to door delivery, requires additional methods of transport

Question 20

What are the advantages of air distribution?

Answer 20

Used for quick delivery of perishable goods across the world, large amounts of small products can be transported

Question 21

What are the disadvantages of air distribution?

Answer 21

Requires other methods of transport, more expensive than road, not suitable for large products, not environmentally friendly

Question 22

What are the advantages of rail distribution?

Answer 22

Suitable for very large products, can transport large amounts of products at once, environmentally friendly

Question 23

What are the disadvantages of rail distribution?

Answer 23

Cannot deliver straight to customers door, involves more than one method of distribution, not available in every location

Question 24

What are the advantages of E-Commerce?

Answer 24

Online discounts, order from own home, worldwide sales, 24/7 purchasing, check availability, no retail outlet required

Question 25

What are the disadvantages of E-Commerce?

Answer 25

Cannot see or touch product before you buy, difficult to return goods, delivery charge, No personal contact

Question 26

What are examples of sales promotion?

Answer 26

Special offers, celebrity endorsement, free samples, loyalty cards

Question 27

What do special offers aim to do?

Answer 27

to encourage first time customers, encourage customers to return, reduce stock levels,

Question 28

Why is celebrity endorsement used?

Answer 28

People who like the celeb will purchase the product, associate product with high quality, people will think that if the product is good enough for them it must be good

Question 29

Why is free samples used?

Answer 29

To give customers a chance to try the product so they purchase, increase sales, switch brand loyalty

Question 30

Why are competitions used?

Answer 30

Give customers a chance to win holiday/free gift- increase sales encourage people to buy, gives impression customers are receiving something for nothing

Question 31

What is a product?

Answer 31

The good or service which is sold to customers

Question 32

What is price?

Answer 32

The amount charged to customers for a product

Question 33

What is place?

Answer 33

Where the product is being sold to customers

Question 34

What is promotion?

Answer 34

How customers are made aware of a product

Question 35

Describe own brands?

Answer 35

Own brands are often cheaper than branded products, own brands are often seen as lower quality, own brands appeal to the sector of the market where price is important

Question 36

What are loyalty cards?

Answer 36

A customer receives points/ credit for making continued purchases