1.3

Question 1

what is the design mix

Answer 1

function, cost and aesthetics are mixed together to appeal to different targets
.

Question 2

what is promotion

Answer 2

use of a positive image to display and communicate with media to display in newspaper, television and radio.

Question 3

what is product branding (pumpco)

Answer 3

products are given new brand names to create separate identify that’s unique

Question 4

what is multiple branding (pumpco)

Answer 4

marketing of two or more similar and competing products by the same firm under different brand names

Question 5

what is umbrella branding (pumpco)

Answer 5

same brand name is used for related products i.e. virgin media, virgin mobile

Question 6

what are the benefits of branding

Answer 6

added value, consumers pay for brand name, premium prices, substitutes seem less acceptable, usp

Question 7

what are different methods of branding

Answer 7

viral marketing- encourage people to pass on brand name
social media- post online posts, creates community, can provide special offers
emotional branding- connects to customers emotionally rather than logically e.g. john lewis

Question 8

what are the reasons to build a brand

Answer 8

provides usp/differentiation, to keep current consumers and make new ones, distinguishes from competitors

Question 9

own label branding (pumpco)

Answer 9

common in supermarkets e.g. Tesco’s finest

Question 10

personal branding (pumpco)

Answer 10

individual becomes a brand e.g. calvin klein, david beckham

Question 11

what are the risks of branding

Answer 11

can be expensive and does not guarantee success

Question 12

what is cost plus pricing

Answer 12

a percentage mark up added to the cost of producing to calculate a products sell price.

Question 13

what is competitive pricing

Answer 13

prices are based on competitors to try and compete on other aspects such as quality.

Question 14

what is psychological pricing

Answer 14

prices are set to make customers feel as if they get a deal e.g. £1.99

Question 15

what is predatory pricing

Answer 15

when prices are set low for a short period of time to force competitors out of the market (illegal)
used by big business to squeeze small businesses out of the market.

Question 16

what is penetration pricing

Answer 16

setting a low initial price for a new product to get a foothold in the market and gain market share

Question 17

what is skimming pricing

Answer 17

initially setting a higher price for a new product to recoup costs, targets ‘early adopters’ e.g. new PlayStation

Question 18

what is premium pricing

Answer 18

if a product is a luxury or has many usp’s or seen as a desirable good a firm may naturally set a high price to reflect high quality.

Question 19

what is sale promotion

Answer 19

short term offers used to increase sales

Question 20

what are the benefits of sales promotion

Answer 20

+
-creates repeat purchases from previous reluctant customers

Question 21

what are then drawbacks of sales promotion

Answer 21

-
-expensive if it doesn’t work and will cause the company a loss

Question 22

what is digital communications

Answer 22

when a business reaches customers online, through online advertising product focused apps, mobile adverts and social media sponsorships

Question 23

what are the benefits of digital communication

Answer 23

can be targeted to a specific segment of the market and can be much cheaper than other promotion methods

Question 24

what are the drawbacks of digital communication

Answer 24

online ad clutter which people may ignore

Question 25

what is personal selling

Answer 25

a business sends a representative to meet with customers in person

Question 26

what are the benefits of personal selling

Answer 26

good way to build strong personal relationships with customers

Question 27

what are the drawbacks of personal selling

Answer 27

is expensive to train and is hard to monitor the success

Question 28

what is direct marketing

Answer 28

communication with a selective audience to create relations with the customer

Question 29

what are the benefits of direct marketing

Answer 29

tracks success and uses a test for larger campaigns

Question 30

what are the drawbacks of direct marketing

Answer 30

lots of customers don’t like being directly contacted (spam)

Question 31

what is sponsorship

Answer 31

providing support or giving money to another business or individual for exposure

Question 32

what are the benefits of sponsorship

Answer 32

can create a positive image for business and looks more credible.

Question 33

what are the drawbacks of sponsorship

Answer 33

can be advertising clutter and limited brand exposure while being expensive at mainstream events.