1.3 Marketing Mix And Strategy

Question 1

Marketing mix

Answer 1

A plan for using the right blend of product, price, promotion, and place in order to maximise sales

Question 2

Social trends

Answer 2

Changing patterns in consumer behaviour reflected in changing demand e.g. increased use of social media/being environmentally friendly

Question 3

Aesthetics

Answer 3

Relates to the appearance of a product

Question 4

Cost (design mix)

Answer 4

When the business focuses on being economically viable, therefore they aim to minimise costs

Question 5

Design for recycling

Answer 5

Producing products using materials that have been discarded as waste and recycled

Question 6

Design for reuse

Answer 6

When materials used in the initial product are utilised again in the future beyond their initial intended use

Question 7

Design for waste minimisation

Answer 7

Reducing the quantity of resources that are discarded in the production process

Question 8

Design mix

Answer 8

The combination of factors needed in designing a product and include aesthetics, function, economic manufacture

Question 9

Ethical sourcing

Answer 9

When a business buys materials that are produced with fair working conditions / pay and minimum impact on the environment

Question 10

Function

Answer 10

Related to the quality and reliability of a product

Question 11

Re branding

Answer 11

A marketing strategy in which a new name, term, symbol, design or combination is created for an established brand with the intention of developing a new, differentiated identity in the minds of consumers, investors and / competitors

Question 12

Resource depletion

Answer 12

The using up of natural resources

Question 13

1.3.2

Advertising

Answer 13

A paid form of communication, used by a business to raise customer awareness of its products, services and brands, to persuade purchases to be made

Question 14

Customer loyalty

Answer 14

Repeat purchases with the same business / favours it over competitors in the same market

Question 15

Digital communications

Answer 15

The electronic transfer of data

Question 16

Direct marketing

Answer 16

Where a business mail out leaflets or letters to households

Question 17

Emotional branding

Answer 17

The creation of brands that perhaps appeal to customers’ emotional nature, rather than their logical side

Question 18

Manufacture / corporate branding

Answer 18

Brands created by the producers of goods and services e.g. Kellogg’s cornflakes

Question 19

Own brand

Answer 19

Products that are manufactured for wholesalers or retailers by other businesses

Question 20

Personal selling

Answer 20

Direct communication between a salesperson and the customer

Question 21

Premium price

Answer 21

Charging a higher price and competitors because of customer loyalty that has been built up over a period of time

Question 22

Product branding/generic branding

Answer 22

Products that only contain the name of the product category rather than the company or product name

Question 23

Promotion

Answer 23

The way of business creates demand/awareness for its product/service

Question 24

Public relations

Answer 24

And organisations attempt to communicate with interested parties, usually through unpaid media such as press conferences

Question 25

Sales promotions

Answer 25

Methods of promoting products in the short term to boost sales

Question 26

Social media

Answer 26

Websites and applications that enable users to participate in social networking

Question 27

Sponsorship

Answer 27

A company giving a product or money to support another business or person

Question 28

Unique selling point

Answer 28

A feature that differentiates the product from its competitors

Question 29

Viral marketing

Answer 29

Encouraging customers to share information/adverts through existing social media platforms

Question 30

1.3.3 Competitive pricing

Answer 30

When a business sets a price similar to competitors selling similar/rival products

Question 31

Cost plus pricing

Answer 31

A cost – based method for setting the prices of goods and services and is calculated by adding a markup percentage to the cost of the product

Question 32

Penetration pricing

Answer 32

Setting a low price initially and accepting limited short-term profits/losses in order to build market share before switching to a more profitable and higher price

Question 33

Predatory pricing

Answer 33

Setting a low price forcing rivals out of the market. This is illegal in the UK but difficult to prove.

Question 34

Price comparison websites

Answer 34

A website that compares the price of a particular product or service in different stores or from different businesses

Question 35

Price skimming

Answer 35

Setting a high price at the launch for product, to gain the money back from R&D and to take advantage of those wanting to be the first people to purchase

Question 36

Pricing strategy

Answer 36

A method used by business when deciding the price at which a product is sold for

Question 37

Psychological pricing

Answer 37

Tactics that designed to appeal to a customers emotional response to prices

Question 38

1.3.4 Distribution

Answer 38

Getting products to the right place for customers and at the right time

Question 39

Distribution channels

Answer 39

The method by which a product gets from the manufacturer to the consumer

Question 40

Distribution strategy

Answer 40

A plan to get a product or service to the customer

Question 41

Four stage distribution channel

Answer 41

Manufacturer/producer to wholesaler to retailer, then consumer

Question 41

Online distribution/e-commerce

Answer 41

The use of electronic systems to sell goods and services

Question 42

Place

Answer 42

Where the product can be purchased and is also the process of making product of service available to a consumer

Question 43

Product

Answer 43

A tangible item offered for sale

Question 44

Service

Answer 44

The non-physical, intangible parts of our economy, as opposed to goods, which we can touch

Question 45

Three stage distribution channel

Answer 45

Manufacturer/producer to retailer, then consumer

Question 46

Two stage distribution channel

Answer 46

Direct marketing approach with no intermediary levels, i.e. manufacturer/producer to consumer

Question 47

1.3.5 Boston matrix

Answer 47

A method used to analyse the product portfolio of a business that contains stars, cash cows,? And dogs.

Question 48

Business to business

Answer 48

When a business promotes the sale of products/services to other businesses for use in their operations

Question 49

Business to consumer

Answer 49

Where a company targets to sell its products to individual customers

Question 50

Consumer loyalty

Answer 50

A preference for a product or brand based on experience and/or an emotional attachment, which inclined buyers to repeat purchases and away from rivals

Question 51

Extension strategy

Answer 51

A plan that is aimed at preventing the decline stage of a product/services sales in the medium to long-term

Question 52

Marketing objective

Answer 52

A goal of business aims to achieve through its marketing activities

Question 53

Marketing strategy

Answer 53

The method used/plan/way chosen to achieve marketing objectives

Question 54

Portfolio analysis

Answer 54

When business considers each of its products in the context of its market position

Question 55

Product life-cycle

Answer 55

The stages that a product goes through from introduction to decline

Question 56

Product portfolio

Answer 56

The collection/range/list of items/products produced/sold/offered by a business