1.3 Marketing Mix

Question 1

What is the marketing mix? (4 P’s)

Answer 1

-Price
-Product
-Place
-Promotion

Question 2

What is a product?

Answer 2

Is the good or service that a business produces to meet the needs of its customers.

Question 3

What is the core product?

Answer 3

This is the benefit of the product that makes it valuable to you.

Question 4

What is the actual product?

Answer 4

This is the tangible, physical product.

Question 5

What is the augmented product?

Answer 5

This is the non-physical part of the product. Usually consisting of lots of added value from service, guarantees and branding.

Question 6

What 4 features will the business focus on when creating the actual or augmented product?

Answer 6

-Reliability
-Quality
-Design
-Image

Question 7

What does the design mix consist of?

Answer 7

-Function
-Economic manufacturing (cost)
-Aesthetics

Question 8

What have firms introduced to reduce the amount of resources used?

Answer 8

• Waste management
  -Design for re-use
  -Design for recycling

Question 9

What are the pros of the resource depletion strategy?

Answer 9

-You can save money
-Allows you to cut waste disposable costs
-Being compliant with environmental legislation makes it more straightforward and cheaper

Question 10

What are the cons of the resource depletion strategy?

Answer 10

-Businesses may need to redesign products or production methods
-Sourcing recycled materials can be difficult

Question 11

What are the types of branding?

Answer 11

-Manufacturing brands
-Own-label brands

Question 12

What are the benefits of string branding?

Answer 12

-Added value
-Ability to charge premium prices
-Inelastic price elasticity of demand

Question 13

What are the 4 ways a business can build a brand?

Answer 13

-A unique selling point
-Advertising
-Sponsorship
-The use of social media

Question 14

What is promotion?

Answer 14

This is the attempt, through various forms of media, to draw attention to a product and thereby gain and retain customers.

Question 15

What are the types of promotion?

Answer 15

-Above-the-line promotion
-Below-the-below promotion

Question 16

What is above-the-line promotion?

Answer 16

This is what is generally called advertising. It is used to reach mass audiences.

Question 17

What is below-the-line promotion?

Answer 17

This targets consumers directly.

Question 18

What is emotional marketing?

Answer 18

This seeks to create a bond between the consumer and the product.

Question 19

Factors that influence price?

Answer 19

-Target price
-Production costs
-Customer expectation
-Competition
-Business objectives

Question 20

Factors that determine the most appropriate pricing strategy?

Answer 20

-Number of unique selling points
-Price elasticity of demand
-Level of competition
-Strength of brand
-Costs and the need to make a profit

Question 21

What is premium prestige pricing?

Answer 21

Setting prices at the high end of the possible price range to help attract status conscious customers.

Question 22

What is price discrimination?

Answer 22

Charging different customers different prices for the same product or service.

Question 23

What is cost-plus pricing?

Answer 23

This involves adding a mark-up to the costs of goods and services to arrive at a selling price.

Question 24

What is penetration pricing?

Answer 24

Selling products at a low price initially to encourage customers to try the product.

Question 25

What is price-skimming?

Answer 25

Charges the highest initial price that customers are willing to pay and then lower the price to encourage more customers.

Question 26

What is promotional pricing?

Answer 26

Reducing the price of a product or service for a short period of time to attract customers?

Question 27

What is psychological pricing?

Answer 27

Setting the price