1.3

Question 1

Design mix

Answer 1

shows the essential elements required for successful production of product

Question 2

Aesthetics

Answer 2

aesthetics is what the product looks like. business ca add value to a prod thats aesthtically pelasing, so customers liekly to be mroe attracted to the apperance, increasing sales, revnue, differentiating from rivals
able to charge higher prices
improved market position

Question 3

Function

Answer 3

longer product life cycles, build rep for quality and reliability

Question 4

Cost

Answer 4

Question 5

Designing products to meet social trends

Answer 5

ethically sourcing, customers incrasingly intersting in bying from ethical businesses, how products amde key issue, damage to reputation if issue discovered in supply chain.

waste minimisation: well-designed product manufactured with minimal wastage. process starts with computer-aided design (CAD) software, enables the designer to work out the wastage implications of the production process. keeps production costs down and helps reduce the environmental footprint of the business. This, in turn, might be used as a marketing message to convey to customers: ‘We are serious about every aspect of the environment.’

sustainability: making a product without affecting long term suppliers of the inputs into the product. As resources deplete, their price will rise. This will be the signal for designers to try to find alternative solutions based on different materials.

Question 6

Promotion

Answer 6

Question 7

Above and below the line promotion

Answer 7

Question 8

Influences on promotion

Answer 8

Question 9

Branding

Answer 9

Question 10

Ways to build a brand

Answer 10

Question 11

Importance of branding

Answer 11

adds value to product- charge higher.
*  It enables the business to reduce the amount spent on promotion.

*  Customers are more likely to purchase the product again (repeat purchase). loyalty.

*  It is easier to persuade retailers to put the products in their stores.

*  Other products can be promoted using the same brand name.
reduce PED: strong branding can be placed somewhere on the spectrum from brand loyalty to brand obsession, producer to push prices up with little damage to sales volume.

Question 12

Ways to build a brand

Answer 12

USP, creating a feature within a brand that makes it stand out like a logo, different ingredient, feature
advertising, creating brand awareness communicating clear brand message
sponsorship, associating brand name wit an event to raise its profile to public, business pays to sponsor event in return for visual coverage.
social media,vitual comm to comm with potent customers. targeted newsfeed, based on searched on other webpages cookies.
social trends: viral marketing, use of SM to encourage spread of promo activities and increase brand awareness, blog and forums.
emotional branding, tap into customer feelings, personal pysch needs and aspirations, sells a status or life style choice

Question 13

Influences on price

Answer 13

Question 14

Pricing strategies

Answer 14

Question 15

Types of pricing strategies

Answer 15

Question 16

Adv and dis of price skimming and penetration

Answer 16

Question 17

Price skimming

Answer 17

Question 18

Price penetration

Answer 18

Question 19

Factors affecting choice of price strategy

Answer 19

Question 20

Distribution

Answer 20

concering getting products t the right place for customers and at the right time

Question 21

Distribution network

Answer 21

Question 22

What influences distribution

Answer 22

Question 23

Online distrubition

Answer 23

Question 24

Benefits of online distribution for business and customers

Answer 24

Question 25

Product life cycle

Answer 25

Question 26

Value of PPA

Answer 26

Question 27

PPA

Answer 27

Question 28

Boston matrix

Answer 28

Question 29

Marketing strategies

Answer 29

Question 30

Adapting marketing mix for mass and niche

Answer 30

Question 31

Outbound and inbound marketing

Answer 31

Question 32

Customer loyalty

Answer 32

Question 33

promotion

Answer 33

to inform and persuade, ensuring cutomers are aware of existence of products. promo mix: descries promo methods that a buss uses to pursue marketing obj. adverstiing, sales promotion, personal selling, public relations, direct marketing

Question 34

advertising

Answer 34

paid for communication, wide coverage, control of message, repetition means that the message can be communicated effectively. effective for bulding barnd awareness. expensive, impersonal methods, one way communication, lacks flexibility

Question 35

personal selling

Answer 35

promotion on a person to person basis. high customer attention, message customised, interactive, develop relationship, two way communication high cost, labour intensive, reach limited num

Question 36

sales promotion

Answer 36

tactical point of sale material or otehr incentives designed to simulate purcahses, free samples, coupons. effcive at achieving quick boost of sales encourages to trial may only be short term, may naticpate further promotion

Question 37

PR

Answer 37

activities are those that create goodwill toward an individual, build image and reputation of business, commuincate effectively.

Question 38

cost plus existing product

Answer 38

basing price on costs. calculating the production costs per car, then adding a percentage mark-up that reflects the profit level the company wants from the product. total costs/number of units + mark up easy to calcaualte, price increases can be justified when costs rise, managers can eb conf that each product sold at a profit ignores PED, may not take into account comp, profit lost if set too low

Question 39

comp pricing

Answer 39

when the price is set at the market level or at a discount to the market, simialr to price set by rivals. price leader dominate who set price and others follow, price takers

Question 40

pred

Answer 40

means pricing low enough to drive a rival or rivals out of business.  the predator is strong financially, perhaps because the product or service involved in the price war is not an important part of the overall business, the other company or companies are weak financially;

Answer 41

The more differentiated a product the greater the ability to charge higher prices as customers will pay more for the unique features of the product Price elasticity of demand If customers are sensitive to changes in price i.e. the product is price elastic then a business might keep prices similar to competitors Level of competition in the business environment If the market is dominated by a few large firms, businesses will follow a strategy of competitive pricing Businesses may choose a strategy of predatory pricing in order to reduce the level of competition in the market A strong brand adds value allowing a firm to charge a premium price How established the product is When launched onto the market a firm may choose skimming or penetration depending upon the nature of the product and the marketing objective A technologically advanced product, for example, may use price skimming Costs and need to make a profit A business will need to set a price that covers costs in order to make a profit and may therefore use cost plus pricing The % mark up added will be determined by their profit objective