2: Marketing

Question 1

Benefits of selling a large range of product

Answer 1

Customers spend more, different target markets, diversify if products are failings

Question 2

Drawbacks of selling a large range of products

Answer 2

Many managers have to be employed, publicity could be harmed by another product , development costs are high

Question 3

Competitive pricing

Answer 3

Setting a price for a product based on prices

Question 4

Price skimming

Answer 4

Setting a high price at a high level

Question 5

Price penetration

Answer 5

Setting a low price at a low level

Question 6

Cost plus pricing

Answer 6

Setting a price by adding a profit mark up to the cost of production

Question 7

Loss leader pricing

Answer 7

Setting a price below cost hoping to gain sales

Question 8

Aims of promotion

Answer 8

Inform customer, create brand image, support price reduction, help sales growth

Question 9

Direct advertisement

Answer 9

Email, telemarketing, direct email

Question 10

Sponsorship

Answer 10

To raise profile of when business when sponsoring an event