unit 3 - chapter 10

Question 1

Marketing mix definition

Answer 1

the combination of marketing choice that can be used by a business to influence consumers to buy products

Question 2

what are the 7 P’s of the marketing mix

Answer 2

• price
• product
• place
• promotion
• people
• physical environment
• process

Question 3

what does price mean in the marketing mix

Answer 3

price of the product,
- prices for different versions of the product
- can people pay in instalments

Question 4

what does product mean in the marketing mix

Answer 4

the product itself
- physical features and specifications of the product
- design
- how reliable
- any garuntees

Question 5

what does place mean in the marketing mix

Answer 5

distribution of the product
- how the ownership of the product moves from producer to consumer

Question 6

what does promotion mean in the marketing mix

Answer 6

way in which the business communicates
- advertising
- public relations
- sponsorships
- sales promotion
- sales team (to contact customers or distributors)

Question 7

what does people mean in the marketing mix

Answer 7

people involved in the transaction

Question 8

what does process mean in the marketing mix

Answer 8

how you buy the product
- online shopping
- ques
- parking
- time taken to checkout

Question 9

what does the physical environment mean in the marketing mix

Answer 9

the physical premises of the business
- how the business presents themselves (building design and decoration)

Question 10

what are the 4 stages of the marketing process

Answer 10

• segmentation
• targeting
• positioning
• marketing mix

Question 11

internal influences on the marketing mix

Answer 11

• changes in financial position
• changes to staff brings new marketing oppurtunities
• changes to operations
• changes to objectives

Question 12

external influences on the marketing mix (PEST-C)

Answer 12

• political and legal factors
• economic factors
• social factors
• technological factors
• competition

Question 13

what are the 2 types of products

Answer 13

-consumer
-industrial

Question 14

consumer products definition

Answer 14

goods bought for consumption by the general public

Question 15

industrial products

Answer 15

are goods bought for use in business processes

Question 16

what are 2 differences of industrial products

Answer 16

• less packaging and branding
• want to understand exactly how the product brings value and helps their business

Question 17

what are the 3 types of consumer products

Answer 17

• convenience items
• shopping goods
• specialty goods

Question 18

what are convenience products

Answer 18

widely distributed products to consumers, widely available in most stores
- if not in one store close competitors are available

e.g milk, newspaper

Question 19

what are shopping goods

Answer 19

customers compare price and features between options and take time before decisions
- bigger purchases
e.g washing machine, fridge

Question 20

what are specialty products

Answer 20

time taken to decide could be months/years, consumers willing to travel far for them and brand/physical environment is very important

rolex watch, sports car

Question 21

what are the 3 features of a product

Answer 21

• core benefits
• tangible
• augmented

Question 22

what is tangible
(3 features of a product)

Answer 22

• specifications
• reliability
• design

Question 23

what is augmented
( 3 features of a product)

Answer 23

refers to the “extras”
- brand name
- the delivery
- any guarantees
- after sales-service

Question 24

product life cycle definition

Answer 24

a model that shows the sales of a product over its life.

Question 25

what are the 4 stages of a product life cycle

Answer 25

introduction, growth, maturity and decline

Question 26

product portfolio analysis definition

Answer 26

examines the arket position of all of the products of a business e.g in terms of market share or market growth

Question 27

what are the 4 aspects of managing products

Answer 27

- product life cycle - new product development - branding - product portfolio analysis

Question 28

what is the development stage in the product life cycle

Answer 28

investment into research and development, products are tested - cashflow is negative

Question 29

what is introduction stage in the product life cycle

Answer 29

when the product is launched, sales could be low, high levels of investment for advertising

Question 30

what is the growth stage in the product life cycle

Answer 30

when sales begin to increase fast-rate, still investment - cash flow should be becoming positive

Question 31

what is the maturity stage in the product life cycle

Answer 31

the rate of growth sales begin to slow, sales could be high but not increasing rapidly

Question 32

why do products reach the maturity stage in the product life cycle

Answer 32

- due to competitors entering the market

Question 33

what is the decline stage in the product life cycle

Answer 33

sales are falling, advertisement slowed/stopped, - positive cash flow

Question 34

why might products enter the decline stage of the product life cycle

Answer 34

- new and better products - reduction in advertisment

Question 35

extension strategy definition

Answer 35

when a business tries to prevent sales of a product from falling and avoid or delay the decline stage of the cycle

Question 36

what do the 3 extension stratergy graphs look like

Answer 36

page 126

Question 37

what are 5 extension strategy's

Answer 37

- find new uses - increase usage - find new market segments - promote more effectively - modify the product

Question 38

boston matrix definition

Answer 38

analyses all of the firm's products in terms of their market share and the growth of the market

Question 39

balanced portfolio definition

Answer 39

an appropriate mix of products in terms of their market shares and market growth

Question 40

what are the 4 names of the boston matrix

Answer 40

- cash cows - dogs -stars - question marks / problem children

Question 41

what are dogs (boston matrix)

Answer 41

low share of a slow-growth market - either invest to reinvent the product - or let the product die and decline

Question 42

what are cash cows (boston matrix)

Answer 42

high market share but slow growing market - don't need heavy promotion - high sales because they are known e.g hienz beans

Question 43

what are problem children / question marks (boston matrix)

Answer 43

fast growth market, but low market - problem because they may turn well or not

Question 44

what are stars (boston matrix)

Answer 44

fast growth markets and high market share - needs investing and promoting to remain a star

Question 45

price skimming definition

Answer 45

occurs if a relatively high price is charged when a product is launched

Question 46

penetration pricing definition

Answer 46

occurs when a business charges a low price to gain market share - mainly when PED is elastic

Question 47

what are the 6 factors effecting that influences pricing

Answer 47

- stages of the products life cycle - costs - PED - positioning - other elements of the marketing mix - competitiveness of the environment

Question 48

dynamic pricing definition

Answer 48

occurs when prices are changing rapidly in response to changing in demand conditions

Question 49

viral marketing definition

Answer 49

marketing technique that uses social media and networks to raise brand awareness and boost sales

Question 50

what are the 5 influences on the promotional mix

Answer 50

- promotional budget - target market - the message (e.g redbull, high energy sporty) - positioning - competitive environment

Question 51

multichannel distribution definition

Answer 51

customers can buy the product in several ways

Question 52

5 influences on distribution decisions

Answer 52

- the degree of coverage - the cost of different distribution strategies - the nature of the product - how customers expect to access the product

Question 53

E-commerce definition

Answer 53

buying and selling of products through an electronic medium such as the internet