1.3 marketing mix and strategy Flashcards

Question

Define distribution

Answer 1

Is the process of making a product or service available for the consumer

Answer 2

The route a product takes from producer to consumer

Answer 3

Are businesses between the producer and consumer in the distribution channel

Answer 4

Has no intermediaries and involves the producer selling directly to the producer, meaning they would have to build stores or use e-commerce. Leads to high costs, less coverage and convenience as there are no retailers, however it gives the producers total control over promotion and pricing

Answer 5

Has one intermediary ,who is usually the retailer, which allows the retailer to sell the product. Less costs and higher coverage and convenience as there is a big retailer selling the product. Less control as the retailer can choose the pricing strategy and promotion , they also make their own markup.

Answer 6

Has two intermediaries, usually a wholesaler and a retailer, where the wholesaler buys the products in bulk and sells to retailers in smaller quantities. Leads to cheap costs, it maximises coverage and convenience as a number of retailers would be selling the product. There would be no control and retailers as well as wholesalers can add their own markup.

Answer 7

Cost - Costs of selling to consumers Convenience- How easy it is for customers to buy the product Coverage - where the consumer can buy the product Control - how much control they have over the product(pricing and promotion)

Answer 8

``` Nature of the product - (a big bulky product would not suit a two level channel) The market (what competitors use) The business (whats the objectives, how much control do they want) Legal issues (limitations on sale) ```

Answer 9

Describes methods used by the business to communicate information and persuade consumers to purchase a product.

Answer 10

Long term methods (boost sales in the long term) - e.g. persuasive advertising and public relations Short term methods (boost sales in the short term) - e.g. Buy one get one free and seasonal price- cutting promotion

Answer 11

Individual brand : single product brands who do not use brand extension or stretching Brand family : brand with a range of related products, encourages sales Corporate brand :where a brand has a range of diverse products

Answer 12

Advertising : reinforces the brand image USP : differentiates product from competitors Sponsorship : Brand building by association to try and shape brand image Digital media: builds relationship with customer

Answer 13

Viral marketing - online offers a faster and wider way to spread peoples thoughts on a product Social media - a place where a business can spread their promotional message Emotional branding - where the business trys to create an emotional response from consumers to the brand

Answer 14

Personal selling - direct communication to achieve sales, high costs Advertising - a way of mass communication with customers Sales promotion - aggressive methods to achieve sales. E.g. BOGOF Publicity - makes consumers aware of the product Packaging - Differentiates a product and try’s to create an image Couponing - encourages consumers to make repeat purchases

Answer 15

``` Stage in the product life cycle Nature of the product Competition Marketing budget Marketing strategy Target market ```

Answer 16

The message - the image that a business is trying to portray to the customer about the product The medium - how a business advertises its products. This could be through TV, Radio or social media

Answer 17

Is the general approach to marketing used by a business

Answer 18

Where a business decides to sell its product to most of the consumers in the market

Answer 19

``` B Higher revenue Control over advertising and promotion High distribution levels Economies of scale Brand awareness ``` D Higher fixed costs High level of competition Harder to charge higher prices

Answer 20

Where a business decides to sell its product to a segmented part of a large market

Answer 21

B Less competition Can charge higher prices Barriers of entry are less (as there are high unit costs) D Less scope for growth Lower profits Vulnerable to a fall in demand (as there are less customers)

Answer 22

Is the process of selling a product directly to consumers, who are the end users of the product The key is to keep revisiting the marketing mix and to develop customer loyalty

Answer 23

The process of involving an intermediary into the selling of a product, to try and develop customer loyalty through selling in bulk.

Answer 24

Is about ensuring the marketing mix is right to create a clear image for the product The main aim is to create an emotional attachment between consumers and the brand.