1.3.1-1.3.4 Marketing Mix

Question 1

What is the marketing mix?

Answer 1

Elements of a firms marketing strategy that are used to make products attractive.

Question 2

What are the 4 p’s associated with the marketing mix?

Answer 2

P-Product
P-Promotion
P-Price
P-Place

Question 3

What is a product?

Answer 3

A good or service a business provides

Question 4

What is the Design Mix?

Answer 4

Refers to a products design including
FUNCTION, AESTHETIC AND COST.

Question 5

What is direct distribution?

Answer 5

Manufacturer»Consumer

Question 6

What is Modern distribution channel?

Answer 6

Manufacturer»Retailer» Consumer

Question 7

What is Traditional Distribution?

Answer 7

Manufacturer»wholesaler»retailer»Consumer

Question 8

Name two advantages of direct distribution.

Answer 8

1)Less costs»decrease in prices
2)enables small businesses to reach wide markets» sell online

Question 9

Name two disadvantages of direct distribution.

Answer 9

1)Websites can be expensive to run
2)Small business not online» not established

Question 10

Name two advantages of modern distribution channel.

Answer 10

1)Retailer responsible for holding goods
2)Retailers can add extra value by offering extra services eg repair

Question 11

Name two disadvantages of modern distribution channel.

Answer 11

1)High competition» other business use same retailer
2)Reputation of retailer» decrease sales of product

Question 12

Name two advantages of Traditional distribution.

Answer 12

1)Wholesalers can offer trade credit
2)Break bulk and sell in desired quantities

Question 13

Name two disadvantages of Traditional distribution.

Answer 13

1)More intermediaries»each one takes % of profit
2)More trust and reliance needed

Question 14

What are the 7 factors affecting method of distribution.

Answer 14

1.Type of product
2.Market
3.Quantity and frequency
4.Geographical location
5.Cost
6.Degree of control
7. Speed

Question 15

What is Price?

Answer 15

The amount of money a consumer has to pay to receive the good/service

Question 16

What are the 6 pricing strategies?

Answer 16

1.Cost plus
2.Price skimming
3.Penetration pricing
4.Predatory pricing
5.Competitive pricing
6.Psychological pricing

Question 17

What is cost plus?

Answer 17

A percentage mark up added to the cost of producing a hood to calculate selling price.

Question 18

What is price skimming?

Answer 18

High price at first to regain costs then slowly lower the price over time

Question 19

What is penetration pricing?

Answer 19

Setting a low initial price for a new product to gain a foothold and gain market share

Question 20

What is predatory pricing?

Answer 20

When prices are set low for a certain amount of time to push competitors out of the market.

Question 21

What is competitive pricing?

Answer 21

Prices based on other competitors. Often the same or lower.
Try to compete on other factors of marketing mix

Question 22

What is psychological pricing?

Answer 22

When a firm sets a price for a product enticing the consumer to buy thinking it’s cheaper than it actually is.
£9.99 instead of £10

Question 23

What are 6 factors affecting choice of pricing strategy?

Answer 23

1.PED
2.Number of USP
3.Level of competition
4.Strength of brand
5.Stage in product life cycle
6.Costs and need to make profit