4.5 Marketing mix

Question 1

Product Life cycle

Answer 1

shows different stages a product is likely to go through
i) Research and Development - market research
ii) Launch - product is launched, promotion needed
iii) Growth - sales growth and brand recognition, focus on making market share
iv) Maturity - rate fo growth slows down
v)decline

Question 2

Product Portfolio

Answer 2

-Dogs (low market share and low market growth)
-Question marks ( high market growth sector, have low market share)
-stars (high market growth and high market share
-Cows (low market growth, high market share)

Question 3

Extension strategies

Answer 3

for products that reach saturation in their life cycle, before their decline, various extension strategies can be implemented to prolong the sale revenue. prolonging products life and delaying a decline
examples include
- price reductions
- advertising
- redesigning
- repackaging
- new markets
-brand extension
- product differentiation
- change brand name
- reposition the product

Question 4

brand awareness

Answer 4

extent to which people recognise a brand

Question 5

Cost plus (Mark up) pricing

Answer 5

adding a percentage or predetermined amount of contribution to the cost per unit of output to determine the selling price.
pro
-simple

con
-relies on intuitive decision making as opposed to market research.

Question 6

penetration pricing

Answer 6

involved setting a low price in order to enter an industry. Allows the business to compete against existing firm s and gain market sharesuitable for mass market products

Question 7

loss leader pricing

Answer 7

selling below the cost value. thus convincing customers to buy them in addition to other prodcuts

Question 8

predatory pricing

Answer 8

temporarily reducing price in an attempt to force competitors out of the industry

Question 9

premium pricing

Answer 9

price is set significantly higher than similar competing products

Question 10

Promotion

Answer 10

Inform
Persuade
Remind
Develop
Attract

Question 11

Above the Line Promotion

Answer 11

promotion through independent mass media sources.
-Television advertising
-radio advertising
-cinema
-newspaper advertising
-magazines
-outdoor advertising

Question 12

ATLP Television advertising

Answer 12

pros
-sound, moving images
-reach a large group of people

cons
-huge costs of producing and broadcasting television commercials. television companies sell advertising slots to companies based on how much they pay

Question 13

radio advertising

Answer 13

pros
- can reach a large audience
- cheaper than television

cons
-competitive for slots
-no visual impact

Question 14

Below the line promotion

Answer 14

refers to the use of non-mass media promotional activities
-direct marketing, personal selling, sales promotion, point of sales promotion, publicity and public relations, trade shows, sponserships, word of mouth, guerilla and packaging

Question 15

direct marketing

Answer 15

selling product directly to customer
-telephone calls, emails

Question 16

personal selling

Answer 16

sales representatives directly help and persuade customers to buy. sales presentations, face to face meetings.

Question 17

sales promotion

Answer 17

temporary methods to boost sales and attract new buyers. Short term incentives designed to stimulate interest in a product. sales promotion can help businesses gaina short term competitive edge, to get rid of excess or old stock and to build brand awareness.
-buy one get one free
-competitions
-free gifts
-free installations
-free samples

Question 18

point of sales promotion

Answer 18

promotion at location where a customer buys the products

Question 19

publicity and public relations

Answer 19

-celebrities wearing products
-protecting image of business

Question 20

Through the line promotion

Answer 20

refers to promotional strategies that involve both above and below the line methods.
This can be 360-degree marketng where not only does one use national TV but also flyers and newspaper ads. Use of digital marketing.
having events

meeting both advantages of BTL and ATL

Question 21

example of movie marketing (TTL)

Answer 21

• movie is advertised on social media; youtube, instagram. (ATL)
• it is then further advertised by viewers talking about it via Word of Mouth (BTL)

Question 22

Place

Answer 22

refers to the distribution of products from producer to customer.

Question 23

channel of distribution

Answer 23

means by which a product gets to a customer
long channels of distribution tend to be more expensive since the intermediaries will add a profit margin to their price

Question 24

intermediation

Answer 24

process to facilitate channel of distribution

Question 25

intermediaries

Answer 25

are agents or businesses that act as a middle person in the channel of distribution

Question 26

zero-level distribution

Answer 26

Producer --> Consumers - mail order, e-commerce, and telesales

Question 27

one level distribution channel

Answer 27

producer--->(retailers/distributer/agents)-->Consumer has one intermediary

Question 28

two level distribution channel

Answer 28

Uses two intermediaries; Producer -> Wholesalers -> Retailers -> Consumers

Question 29

Wholesalers

Answer 29

businesses that purchase large quantities of products from a manufacturer and then separate or break the bulk-purchases into smaller units for resale, mainly to retailers. pros -wholesalers bear the costs of storage, thereby freeing up space for retailers, intermediaries and manufacturers -by breaking bulk, wholesalers sell smaller batches of products to retailers and intermediaries. this helps to eliminate their need to purchase large quantities directly from a manufacturer. -frees up time for manufacturers to focus on production, wholesalers deal with distribution.

Question 30

distributers

Answer 30

distributers are independent and specialist businesses that trade in the products of only a few manufacturers. -Book sellers sell limited amount of books, -car distributers sell one car.

Question 31

agents

Answer 31

representatives of negotiators who act on behalf of the buyers and vendors of a product. they are experts in their particular market and charge commision for their services. tend to rely on personal selling techniques -door-todoor sales, telesales, trade fair,exhibitions.

Question 32

retailers

Answer 32

are the sellers of products to the final consumer. They are often referred to as 'shops' in everyday language. -Independent retailers -convenience stores (sell fast moving consumer goods) -multiple retailers - (retailers with numerous outlets, such as H&M, starbucks, and sunglass hut. benefit from brand recognition and loyalty) -supermarkets - sell mainly food stuffs and groceries. Examples include Tesco, Lidl, Aldi, Target, and Walmart -department stores -hypermarkets

Question 33

specialty channels of distribution

Answer 33

-indirect way to distribute products that does not involve retailers. pros -business does not have to share profits -businesses have direct control over their distribution -can reach customers who do not have access to retail outlets. examples -E-commerce -vending machines -mail order

Question 34

e-commerce

Answer 34

pros- -suitable distribution channel for businesses and marketing. -can offer product information and payment options to entice customers -reduces costs and risks of international marketing cons -not all products are suitable ---> cars, glasses

Question 35

People

Answer 35

are employees who interact with customers, thereby delivery service. reputation of a business largely depends on the training, motivation and communication skills of employees

Question 36

reputation by People

Answer 36

- Appearance and body language; uniform, friendliness -aptitudes and attitudes; managers will be interested in measuring the capabilities and conduct of their employees -feedback (employee of the month) -efficiency (not keeping customers waiting. cultural variations have a difference on how people