1.3

Question 1

design mix is

Answer 1

the factors needed in designing a product

Question 2

design mix involves

Answer 2

function
aesthetics
cost

Question 3

changes in the design mix to reflect social trends

Answer 3

current trend towards resource depletion- where products are being designed for waste minimisation
- deciding what materials to use , this influences aesthetics and cost

Question 4

re use and recycling and the design mix

Answer 4

• products made to be reused , good value for money
• made using recycled materials , good for the environment

Question 5

ethical sourcing and the design mix

Answer 5

products made in safe facilities by workers who are treated well , supplier is protecting the environment

Question 6

promotion definition

Answer 6

the use of marketing tools to bring a product/service to the attention of potential buyers

Question 7

types of promotion (5)

Answer 7

• sponsorship
• direct marketing
• above line marketing
• below line marketing
• public relations

Question 8

what is direct marketing

Answer 8

highly focused targeted mail by email or by post

Question 9

what is above and below the line marketing

Answer 9

Above the line marketing- mass media targeting larger and more general customers

Below line marketing- targeted marketing

Question 10

what is public relations

Answer 10

building a relationship between the business and the public to create a favourable corporate image

Question 11

disadvantage of sponsorship

Answer 11

if person being sponsored reputation changes could destroy the brand

Question 12

types of sales promotion (4)

Answer 12

• BOGOFF
• point of sale (items displayed at till0
• price discounts
• special events

Question 13

digital communications (3)

Answer 13

• online advertising
• viral strategies
• social media

Question 14

Ways to build a brand

Answer 14

-exploiting a USP
- advertising especially sponsorship
- social media

Question 15

benefits of a strong brand

Answer 15

• builds trust
• allows for premium price
  -loyalty
• recognisable
• remain competitive
• market share

Question 16

types of brand

Answer 16

manufacturers brand - e.g. kellogs cornflakes
own label brands
generic brands - e.g. carrots

Question 17

changes in branding and promotion to reflect social trends

Answer 17

social media
viral marketing
emotional branding

Question 18

factors influencing pricing strategies

Answer 18

• number of USPs
• price elasticity of demand
• strength of brand
• stage in product life cycle
• competitors
• aims and objectives of the business

Question 19

pricing strategies

Answer 19

• price skimming
• cost plus pricing
• competitive pricing
• predatory pricing
• psychological pricing

Question 20

what is predatory pricing

Answer 20

businesses sets a low price to price competitors out of the market

Question 21

competitive pricing

Answer 21

where a business sets prices similar to competitors (helps avoid price wars)

Question 22

price skimming

Answer 22

sets an initial high price for new product when it has high demand

Question 23

cost - plus pricing

Answer 23

business bases a price on the unit cost and then adds a percentage as a mark up

Question 24

changes in pricing to reflect social trends

Answer 24

online sales - websites can offer lower prices than shops, no rent
- price comparison sites, businesses have to price competitively

Question 25

distribution definition

Answer 25

the process of getting the right product / service to the consumer

Question 26

4 stage distribution

Answer 26

1. manufacturer
   2.wholesaler
2. retailer
3. consumer
   applies to smaller independent shops

Question 27

3 stage distribution

Answer 27

1. manufacturer
2. retailer
   3.consumer
   applies to mass market products

Question 28

2 stage distribution

Answer 28

1.manufacturer
2. consumer
where the service is straight to consumer g. dentist

Question 29

changes in distribution to reflect social trends

Answer 29

online (manufacturers straight to customers)
changing from product to service e.g. cds to streaming services

Question 30

product life cycle involves

Answer 30

development
launch
growth
maturity
decline

Question 31

Extension strategies - update..

Answer 31

1. updating packaging
   2.price reduction
   3.,changing target market
2. advertising

Question 32

boston matrix layout

Answer 32

market share along the top
market growth along the side

top row: star and question mark
bottom row: cash cow and dog

Question 33

star product within the Boston matrix

Answer 33

~ high market share
~ high growth
should become cash cows in time if marketing is managed correctly

Question 34

question mark boston matrix

Answer 34

~low market share
~high growth
potential to become stars if marketing managed correctly
- lots of investment in marketing to succeed

Question 35

cash cow boston matrix

Answer 35

~low growth
~ high market share
need little or no new investment

Question 36

dog boston matrix

Answer 36

~ low market share
~ low growth
in decline phase of life cycle
may withdraw / discontinue product

Question 37

uses and limitations of boston matrix

Answer 37

+ good when reviewing products to decide future strategy
- products may be medium market share
high market share does not always lead to high profits

Question 38

product portfolio definition

Answer 38

collection of all products or services offered by a company

Question 39

mass market strategies

Answer 39

marketed all over the world in the same way
large quantities produced, eos

Question 40

niche market strategies

Answer 40

targeted strategies

Question 41

B2B or B2C

Answer 41

business to business
business to consumer