3.3.4 Making marketing decisions: using the marketing mix

Question 1

Marketing mix

Answer 1

Those elements of a business’s approach to marketing that enable it to satisfy and delight its customers

Question 2

Elements of the marketing mix (7 Ps)

Answer 2

• Product
• Place
• Price
• Promotion
• Physical environment
• People
• Process

Question 3

Industrial (or business-to—business) marketing

Answer 3

Where a firm sells its product to another business

Question 4

Consumer marketing

Answer 4

Where a firm targets individual consumers with its product

Question 5

Consumer products

Answer 5

Products that are purchased in order to directly satisfy the needs and wants of consumers

Question 6

Convenience products

Answer 6

Products that are purchased frequently and with minimum thought and effort by consumers

Question 7

Shopping products

Answer 7

Products that consumers want to be readily accessible, but which involve thought and planning before purchase

Question 8

Speciality products

Answer 8

Products whose purchase is planned by consumers, who will seek out these products for purchase

Question 9

Boston Matrix

Answer 9

A tool of product portfolio analysis that classifies products according to the market share of the product and the rate of growth of the market in which the product is sold

Question 10

Product portfolio

Answer 10

The range of products or brands provided by a business

Question 11

Product development

Answer 11

When a firm creates a new or improved good or service, for release into an existing market

Question 12

Penetration pricing

Answer 12

A strategy in which low prices are set to break into a market or to achieve a sudden increase in market share

Question 13

Price skimming

Answer 13

A strategy in which a high price is set to yield a high profit margin

Question 14

Price war

Answer 14

• This occurs when rival companies undercut each other’s price cuts in order to increase sales volume by keeping existing customers and attracting new customers
• This strategy leads to reduced profit margins

Question 15

Advertising

Answer 15

The process of communicating with customers or potential customers through specific media (eg television and newspapers)

Question 16

Promotion

Answer 16

• The process of communicating with customers or potential customers
• Promotion can also describe communication with other interested groups, such as shareholders and suppliers

Question 17

Branding

Answer 17

The process of differentiating a product from its competitors through the name, sign, symbol, design or slogan linked to that product

Question 18

Distribution channels

Answer 18

Channels or routes through which a product passes in moving from the manufacturer (producer) to the consumer

Question 19

Multi-channel distribution

Answer 19

This exists when firms use more than one the of distribution channel

Question 20

Digital marketing

Answer 20

• The anticipating and satisfying of consumer wants through the use of different forms of technology
• Digital marketing includes social media marketing, the use of search engine marketing, digital displays and marketing through other forms of digital media

Question 21

E-commerce

Answer 21

The buying and selling of goods and services through the use of electronic media