5

Question 1

importance of pricing

Answer 1

• the only element in MM that directly produces revenue
• helps with positioning your offering in a way that the consumer will find appropriate
• compare to competitors

Question 2

PED:

Answer 2

% change in quantity demanded / % change in price

Question 3

importance of distributing:

Answer 3

• represents a significant part of total costs
• involves managing complex networks of different people and networks
• shapes part of our positioning and determines how we deliver value

Question 4

+ of intermediaries

Answer 4

+ can help reach new markets. they have established networks and relationships that can open doors to new markets
+ Transactional value: can streamline the buying and selling process, making transactions run smoothly and more efficiently. They handle tasks such as order processing, and logistics, which saves time and resources.
this allows you to focus on other aspects of your business e.g. marketing and product development

Question 5

• of intermediaries

Answer 5

• reduce control over the distribution process = less control over how the product is presented, or marketed to consumers. they could do things differently.

Question 6

steps to develop channel strategies

Answer 6

1) analyze consumer needs
2) setting channel objectives
3) identifying major channel alternatives
4) evaluation