Schedule 5

Question 1

Benefits of sales promotion

Answer 1

Effective at boosting sales
Encourages customers to trial/ switch

Question 2

Limits of sales promotion

Answer 2

Usually short term effect only
Could damage the brand image
Customers may expect further promotions

Question 3

What are public relations?

Answer 3

Activities to create a relationship with customers

Question 4

Benefits of direct marketing

Answer 4

Personalised messages
Cost - effective
Easy to differentiate messages

Question 5

Limitations of direct marketing

Answer 5

Negative image of junk mail
Expensice to maintain + keep accurate

Question 6

What is cost plus?

Answer 6

Add % on cost of production
Yay - ensures profit
Nay - ignores customer’s preference

Question 7

Price skimming

Answer 7

Initial high price then lowering
Yay - maximises revenue + profits
Nay - may begin too expensive, bad image for reducing

Question 8

Price penetration

Answer 8

Initial low price + increasing
Yay - maximises amount of sales
Nay - decreased sales revenue

Question 9

Predatory pricing

Answer 9

Set low to force competitors out of the market
Yay - reduces competition
Nay - loss of revenue

Question 10

Boston Matrix set out

Answer 10

? , *
Dog, CC
- ms

Question 11

Dog

Answer 11

Low market share, low market growth

Question 12

Cash cow

Answer 12

High market share, low market growth

Question 13

*

Answer 13

High market share, high market growth

Question 14

?

Answer 14

Low market share, high market growth