(1.3) Marketing Mix & Strategy

Question 1

What are the two types of promotion with examples?

Answer 1

Above the line -  promotion that involves advertisements
Eg
-Informative advertisements
-Persuasive advertisements
-Reassuring customers

Below the line - promotion that does not involves advertisements
Eg
-Free gifts
-Coupons
-Loyalty cards
-Competitions
-BOGOF offers

Question 2

What is the design mix and the three elements?

Answer 2

Three key elements that help a business find a gap in the market.

Aesthetics, Function, Cost

Question 3

What are the 3 types of branding?

Answer 3

Manufacturer brands - Brands created by the manufacturer

Own label brands - Products that are manufactured for wholesalers for other businesses

Generic brands - products that only contain the name of the actual product, eg carrot, aluminium

Question 4

What is promotion?

Answer 4

The process of trying to encourage people to purchase a product

Question 5

What are the three benefits of strong branding?

Answer 5

• Added value
• Ability to charge premium prices
• Reduced price elasticity of demand

Question 6

What are the ways to build a brand?

Answer 6

• USP - helps be unique
• Advertising - spreads awareness
• Sponsorship
• Use social media

Question 7

What are the 6 types of pricing strategies?

Answer 7

Cost plus - Adding a mark up (percentage of) to unit cost
Price Skimming - Starting high then low
Penetration Pricing - Starting low then high
Predatory Pricing - Charging extremely low (illegal)
Competitive Pricing - Pricing similar to competitors
Psychological Pricing - Eg 0.99

Question 8

What is distribution and the aim of it?

Answer 8

Evolves where consumers are able to purchase products from.

Aim: To make the products as convenient as possible for consumers to buy

Question 9

What are distribution channels?

Answer 9

The stages the products have to go through to get from the producer to the consumers

Question 10

What are intermediary’s?

Answer 10

A link between the producer and consumer

Question 11

What are the 5 types of an intermediary?

Answer 11

• Retailers
• Wholesaling
• Agent/Brokers
• Dealers

Question 12

What is multi channel distribution?

Answer 12

When a business uses more than one distribution channel

Eg you can buy apples products many different ways(pc worlds, O2 ect)

Question 13

What is direct selling?

Answer 13

When a producer markets their products directly to consumers

Question 14

What are the 4 main factors to consider when choosing the appropriate distribution channel?

Answer 14

• The nature of the product (Some products may be inappropriate)
• Cost
• The Market (Mass markets typically use intermediaries)
• Control (don’t want to damage their image)

Question 15

What is online distribution?

Answer 15

Also known as e-commerce involves the use of electronic systems to sell goods and services

Question 16

What is the two types of online distribution?

Answer 16

Business to consumer (B2C)

Business to business (B2B)

Question 17

What benefits do consumers have because of online distribution?

Answer 17

• Cheaper
• Can shop 24/7
• Large amount of choice
• Can shop from anywhere

Question 18

What benefits do businesses have because of online distribution?

Answer 18

• Lower start up costs
• Lower processing costs
• Less paper is needed to document
• Can offer global shipping
• Business can locate anywhere

Question 19

What factors determine the most appropriate pricing strategy for a particular situation?

Answer 19

USP - Can charge higher if USP is good
PED - If the product is inelastic you could raise price
Amount of competition - Low competition can allow you to have higher prices
Strength of the brand - strong brand can charge higher
Stage in the product life cycle - early stage may charge low or high depending on product
Cost and the need to make a profit - Many charge high to pay off debt or for shareholders

Question 20

What changes in pricing that reflect social trends?

Answer 20

Subscription pricing - adobe
Auction sites - ebay
Dynamic pricing - travel industry
Comparison sites - sites that look for cheapest prices of a good

Question 21

What changes in the design mix that reflect social trends and what is ethical sourcing?

Answer 21

• Design for waste minimisation
• Design for reuse
• Design for recycling

Ethical sourcing - Only using materials, services ect from suppliers that respect the environment, treat workers well and provide a safe working environment

Question 22

What are the changes in branding and promotion to reflect social trends?

Answer 22

Viral marketing - Any strategy that encourages people to pass on messages to others through electronic messaging
Social Media -
Emotional Branding -

Question 23

What are the 4 changes in pricing to reflect social trends?

Answer 23

Online sales

• Auction sites - eg Ebay
• Personalised pricing - eg cookies
• Subscription pricing - charging a monthly fee

Price comparison sites - Allowing customers to compare prices and choose the best deal