1.3 Marketing Mix and Strategy

Question 1

What is the marketing mix?

Answer 1

The main variables comprising a firm’s marketing strategy.

Question 2

What are the seven Ps of the marketing mix?

Answer 2

Product
Price
Promotion
Place
People
Packaging
Process

Question 3

What are the main benefits of maximum appeal to consumers?

Answer 3

Differentiation
Added value
Increased reputation and brand loyalty
Higher profit

Question 4

What are the three factors of the design mix?

Answer 4

Function
Aesthetic
Cost

Question 5

What social trends can lead to changes in the design mix?

Answer 5

Waste minimisation and recycling
Ethical concerns (child labour and fair trade)

Question 6

What are the main aims of promotion?

Answer 6

Attract new customers / retain existing customers.
Improve position in market.
Survival and growth.
Increase awareness of product.

Question 7

What are the main types of promotion?

Answer 7

Advertising
Public relations
Seasonal promotions
Free gifts and competitions
Offers e.g. BOGOF
Endorsement

Question 8

What are three types of branding?

Answer 8

Individual product brand
Brand family
Corporate brand

Question 9

What are the benefits of branding?

Answer 9

Added value
Reduced PED
Ability to charge premium prices

Question 10

What are four methods of building a brand?

Answer 10

Differentiation / USP
Advertising
Sponsorship
Social media

Question 11

What social trends have led to changes in branding and promotion?

Answer 11

Use of:
Viral marketing
Social media
Emotional marketing

Question 12

What are the six main pricing strategies?

Answer 12

Price skimming
Price penetration
Cost plus
Predatory
Competitive
Psychological

Question 13

What six factors can influence choice of pricing strategy?

Answer 13

PED
Level of competition
Strength of brand
Level of differentiation
Stage of product life cycle
Costs and need for profit

Question 14

What three factors influence the chosen method of distribution?

Answer 14

Location
Credit terms
Willingness to display products in prominent positions
The wider marketing mix

Question 15

What three factors influence influence a business’s choice of distribution?

Answer 15

Type of product
Nature of market
Technical complexity of product

Question 16

What is multichannel distribution?

Answer 16

Where firms use more than one type of distribution channel e.g. shops, online, click and collect.

Question 17

What are the four possible stages of distribution?

Answer 17

Manufacturer
Wholesaler
Retailer
Consumer

Question 18

What social trends influence distribution channels?

Answer 18

Online distribution
Changing from product to service

Question 19

What are the five stages of the product life cycle?

Answer 19

R&D
Introduction
Growth
Maturity
Decline

Question 20

What extension strategies can be employed to prolong a product’s decline?

Answer 20

Finding new markets for existing products
Changing the appearance or packaging

Question 21

What are the four categories that comprise the Boston Matrix?

Answer 21

Star - Problem child or Question mark
Cash cow - Dog

Question 22

What are the characteristics of a ‘star’ product?

Answer 22

Market leader
High market share, high market growth
Fast growing
Substantial profits
Requires substantial investment for growth
Could become future cash cows

Question 23

What are the characteristics of a ‘cash cow’?

Answer 23

Profitable
High market share, low market growth
Generate more cash than needed to maintain market share
Milked for profit

Question 24

What are the characteristics of a ‘problem child’ / ‘question mark’ product?

Answer 24

Rapid growth
Low market share, high market growth
Poor profit margins
Enormous demand for cash
Need to be turned into rising stars

Question 25

What are the characteristics of a ‘dog’ product?

Answer 25

Greatest number of products in this category
Low market share, low market growth
Markets are not growing - little new business
Operate at a cost disadvantage
High chance of being discontinued

Question 26

How can business’s develop customer loyalty in a B2B market?

Answer 26

Tailoring to customer
Personal service
Reliability

Question 27

How can business’s develop customer loyalty in a B2C market?

Answer 27

Establishing a strong image
Branding
Mass distribution