UNIT 3 MRS C

Question 1

What are the different elements of the extended marketing mix?

Answer 1

Product
Price
Place
Promotion
Physical environment
Process
People

Question 2

5 stages of product life cycle

Answer 2

development
introduction
growth
maturity
decline

Question 3

What are the 3 levels to any product?

Answer 3

Core benefits
Actual product
Augmented product

Question 4

What is the augmented product?

Answer 4

Everything the business build around the product eg.services and aftercare

Question 5

What is the core product?

Answer 5

What the product does and how well it does it

Question 6

What is the actual product?

Answer 6

All of the products features, details and benefits that add value. Features that improve

Question 7

4 ways to add an extension to product life cycle

Answer 7

Reduce price
New promotion
New uses for product
Targeting a different market segment

Question 8

Boston matrix definition

Answer 8

A tool that categorizes products by market share and market growth to guide business strategy

Question 9

4 categories on Boston matrix?

Answer 9

Stars
Cash cows
Question marks
Dogs

Question 10

What is on the Y axis Boston Matrix?

Answer 10

Market growth rate

Question 11

What is on the X axis Boston Matrix?

Answer 11

Relative market share

Question 12

What are stars on the Boston Matrix?

Answer 12

• High-growth products with a strong market position
• Require heavy investment to maintain growth - will eventually become Cash Cows once growth slows

Question 13

What are Cash cows on the Boston Matrix?

Answer 13

• Low-growth, high-market-share products
• Require little investment and generate steady cash flow to fund Stars

Question 14

What are Question marks on the Boston Matrix?

Answer 14

• Low-market-share products in high-growth markets
• Have potential but need significant investment to grow
• Management must decide whether to invest or let them fail

Question 15

What are Dogs on the Boston Matrix?

Answer 15

• Low-market-share products in low-growth markets
• They break even but aren’t worth investing in and are often sold or closed

Question 16

5 factors influencing price?

Answer 16

Quality
How much consumers want product
Consumer income
Level of competition
Availability of product

Question 17

Cost-based pricing definition?

Answer 17

Price is determined by adding a profit element on top of the cost of making the product

Question 18

Cost-plus pricing definition?

Answer 18

When you set a product’s price by adding a fixed percentage or amount on top of what it costs you to make it

Question 19

Customer-Based Pricing definition?

Answer 19

Where prices are determined by what a firm believes customers will be prepared to pay

Question 20

Penetration pricing definition?

Answer 20

When a company sets a very low price at first to attract customers quickly and gain market share, then may raise the price later

Question 21

Price Skimming definition?

Answer 21

When a company starts with a high price for a new product, then lowers it over time as competition increases

Question 22

What are Loss Leaders?

Answer 22

Products sold at a really low price (even at a loss) to attract customers, hoping they’ll buy other, more profitable items too

Question 23

Who sells many Loss Leader products?

Answer 23

Supermarkets

Question 24

What is predatory pricing?

Answer 24

When a company sets prices extremely low on purpose to drive competitors out of business — then later raises prices once they have less competition

Question 25

Is predatory pricing legal?

Answer 25

No, it is illegal

Question 26

Psychological pricing definition?

Answer 26

when prices are set to make customers feel like they’re getting a better deal — like pricing something at £9.99 instead of £10

Question 27

What is competitor pricing?

Answer 27

when a company sets its prices based on what competitors are charging for similar products

Question 28

Example of large company that uses price skimming?

Answer 28

Apple charge very high price initially for iphones

Question 29

Price skimming advantages?

Answer 29

Establishes product as must have Higher prices cover innovation costs Early people will want the product (early adopters)

Question 30

Price skimming disadvantages?

Answer 30

Some customers may be totally put off by rip off price Brand image may suffer during price cut Buyers who bought first may become annoyed

Question 31

What sort of companies tend to use penetration pricing and an example?

Answer 31

Subscription /new start-ups / tech companies eg. Amazon and Netflix

Question 32

Penetration pricing advantages?

Answer 32

Attract high volume of sales High sales cut production costs - producer can buy in bulk Achieving high sales ensures shops will have good in store displays and have high distribution levels

Question 33

Penetration pricing disadvantages?

Answer 33

Pricing low may affect brand image - making product appear cheap Hard to gain distribution in up market retailers Pricing on the value for money can cause consumers (and competitors) to become very price sensitive

Question 34

Dynamic pricing def?

Answer 34

When a business changes prices based on demand, competition, or other market conditions.

Question 35

Example of dynamic pricing?

Answer 35

Aeroplane tickets - change based on market conditions

Question 36

Why may dynamic pricing not go down well with customers?

Answer 36

People can become very resistant

Question 37

What is price leadership?

Answer 37

A strategy in which a large company sets a market price that smaller firms tend to follow

Question 38

What is market mapping used for and what is on the x and y axis?

Answer 38

Identify gaps in market Quality and price

Question 38

What does ped measure?

Answer 38

Responsiveness of demand to changes in price

Question 39

What does a low ped mean?

Answer 39

demand is relatively unresponsive to changes in price

Question 40

PED formula?

Answer 40

% quantity demanded / % price

Question 41

What are the channels of distribution?

Answer 41

The path a product takes

Question 42

What is the longest channel of distribution?

Answer 42

Producer Wholesaler Retailer Consumer

Question 43

Example of multi channel of distribution?

Answer 43

E-commerce In person shop Catalogue

Question 44

What are the six promotional methods?

Answer 44

Sales promotion Social media Advertisement Public relations Sponsorship direct marketing

Question 45

Examples of sales promotion?

Answer 45

Discounts Coupons Free samples

Question 46

Very short def of public relations?

Answer 46

about shaping how people view a company

Question 47

Cons of Public Relations?

Answer 47

Lack of control Time consuming Dependence on media

Question 48

Pros of Public Relations?

Answer 48

Cost effective Builds relationships Brand awareness

Question 49

Sampling definition?

Answer 49

act of picking a smaller group from a larger population to earn about the whole group

Question 50

3 types of sampling?

Answer 50

Quota Random Stratified

Question 51

What is Quota Sampling in market research?

Answer 51

A non-random sampling method where the researcher selects a specific number of people (quota) from different segments of the population to reflect certain characteristics (e.g., age, gender).

Question 52

What is Stratified Sampling in market research?

Answer 52

A sampling method where the population is divided into sub-groups (strata) based on a particular characteristic, and participants are randomly selected from each stratum.

Question 53

What is Random Sampling in market research?

Answer 53

A sampling method where every individual in the population has an equal chance of being selected.

Question 54

6 ways marketing uses technology?

Answer 54

analytics dynamic pricing audience reach CRM - customer relationship management campaign testing competitor analysis

Question 55

What is STP in marketing?

Answer 55

Segmentation: Split the market into groups (e.g., age, income). Targeting: Choose which group(s) to focus on Positioning: Decide how to make your product stand out to that group